Closing is the real estate transaction is something that both buyers and sellers strive to do as soon as possible. It is when dotted lines are signed, money and ownership change hands, and both parties get what they want. The difficulty, though, lies in the fact that there can be many obstacles along the way. You just can’t count your closing chickens till they actually hatch. But what are some of the biggest and most common issues that arise prior to closing? To answer that question, here are 5 things that will delay the closing when buying or selling real estate in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas.
1. Financing Problems
Most people have to get a mortgage loan in order to buy real estate – very few of us have enough money on hand to make a cash purchase. Understandably, then, financing problems are often at the top of the list of things that will delay the closing in buying/selling real estate in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas.
Buyers think they have their financing locked in after talking to a lender. When the application is complete these are some of the common financing problems that delay the closing:
- Job loss or job change
- Inflation of debt-to-income ratio
- A drop in credit score
- Opening new lines of credit
- Making major purchases
2. Title Issues
Title issues are a routine item that will delay the closing when buying or selling real estate in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas. Lenders require that a title search be performed before lending money in order to ensure that there are no other parties who have some claim on the property. The purpose of the title search is to protect the lender and buyer against cases in which there are debts or liens attached to the property and/or entities other than the seller can claim legal ownership.
Title report issues are the most common reason for closing delays. Some sellers are completely unaware that there were previous liens on their property and buyers face the frustration of waiting out these sometimes complicated resolutions. Title release tracking and title curative services are the most effective ways to safeguard against these costly delays.
To find out more about this common closing delay – and what to do about it – contact a Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas agent at 917-608-7277.
3. Low Appraisal Value
Lenders will require an appraisal to ensure the real estate is at least valued at what they intend to lend. Issues with appraisals can arise when a home doesn’t appraise at or above the sale price. When a home doesn’t appraise a buyer is faced with a dilemma They can try and renegotiate the price with the seller or work with their lender to modify the mortgage to reflect the appraised value
4. Instrument Survey Problems
An often overlooked thing that will delay the closing in buying/selling real estate in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas is a problem with the instrument survey. A new survey of a home that has been bought and sold several times before without any issues can find issues that require further investigation.
“A home of any age,” experts say, “can run into boundary line encroachment disputes with regards to the land the home is situated on. Property lines, walls or fencing may become an issue, and closing can be delayed until all parties can settle discrepancies through signed affidavits.”
5. Inspection Issues
Most buyers will want an inspection clause or contingency in the purchase contract. Every buyer should have a professional inspection done to make sure the property doesn’t have costly problems or need major repairs. They want to be able to walk away from the deal if the inspection does turn up such problems. And if serious problems are revealed, it can, of course, delay the closing.
Inspections are typically done early in the process. If the inspection finds that repairs are needed, the buyer and seller can come to an agreement on what should be addressed well before closing. But it doesn’t always work that way.
Miscommunications or delays may lead to some of these repairs not getting done. This will often come up during the final walk-through. If the issues are serious and the lender or insurer requires it to be fixed closing can actually be delayed.
Using a Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas Agent to Avoid Closing Delays
You can see there are alot of steps to ensure a prompt closing. We can help you avoid closing delays. We are experienced Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas agents in your corner to guide you through the process and to help ensure that all the pieces are in fact in place when needed. So if you truly want to avoid these things that will delay the closing when buying or selling real estate in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas, contact us today at 917-608-7277.