Okay, so you’ve gotten pre-approved for a mortgage, found the house, your offer has been accepted and a closing date set. Congratulations, you are on your way to closing on a new home! It’s not quite time to break out the bubbly though as you still have some steps ahead. Unfortunately, sometimes there are hiccups along the way at this point that cause a closing to be pushed back. It’s not unusual for both buyers and sellers to feel extra stressed when this happens. In fact, closing dates are often just a best guess initially and delays are possible, especially with so many moving pieces and parties involved in the process. Thus, it’s important to know the the top reasons for closing delays:
- Unrealistic timelines – Generally, it will take 4-6 weeks to close on a home if there is a mortgage. This will vary according to the type of mortgage, but is a good guideline to keep in mind. A good REALTOR will know what is realistic and what is wishful thinking.
- Appraisal issues – A very common reason for closing delays is if the home appraises lower than expected. If this happens, the bank will often require certain repairs are made prior to selling the house in order to continue with the process. Obviously, the seller has to agree to the terms also and set about doing the repairs.
- Title issues – Sadly, sometimes sellers are unaware that there are liens on the property until they go to sell the house. A title inspection report will reveal these and the seller may be stuck dealing with title related problems that are fixable but time consuming.
- Inspection issues – Of course, there are some deal breakers that could kill the closing altogether. More likely are inspection issues that the buyer and seller negotiate on to keep the closing in place but perhaps move the date back.
- Final walk- through – If agreed upon repairs aren’t completed or aren’t completed well it will be discovered during the final walk-through. This is also a buyer’s last opportunity to check appliances, heat/air, plumbing, etc. If something broke between the inspection and final inspection the buyer will have to determine if they still want to buy the home.
An experienced real estate agent will know how to help guide buyers or sellers on the entire timeline for a home closing. He/she will also understand which closing delays are normal and which ones create a red flag. In short, their job is to help ease the guesswork of buying and/or selling a home.
If you’d like to work with an experienced agent to keep you real estate transaction on track, call DeSelms Real Estate today at 615.550.5565!