You’ve found a place you love and is within your price range. All that’s left to do is to sign the closing paperwork and you’re good to go. However, several things can derail a closing at the last minute. Here are some common things that can go wrong during the closing process and the steps you can take to help avoid these issues.
1. Errors within the closing documents
If you’ve purchased a home before, you’re aware of the deluge of paperwork that must be signed during the closing process. If this is your first time buying a home, build up that writing hand stamina.
The problem when you’re inundated with so many documents is that it can be easy to overlook errors. A transposed address or a name misspelling is easy to correct. Missing pages or incorrect financial numbers could spell disaster.
You should ask to look over your closing documents before your closing date. If you spot an error, take immediate steps to correct the issue. Document review can be time-consuming, but it will take you much longer to try and correct mistakes after everything has been signed and filed away.
2. The title isn’t clear
Title issues have delayed if not outright derailed many closing transactions. You’ll want to ensure that there are no liens against the property or questions of ownership. Both you and your lender should insist on a clear title.
Ask for a copy of the preliminary title report. Review the report to see if you spot any issues. You will probably want to consider buying title insurance. However, an insurance policy will likely only be effective after you’ve closed. This means you will still have hoops to jump through should a problem arise down the line.
3. Issues arise during your final walkthrough
When you’re taking your final walkthrough of a property, you discover a hole in the wall that wasn’t there previously. Perhaps the seller removed fixtures that were supposed to come with the house.
If you find any unpleasant surprises, your agent should work with the seller’s agent to resolve any issues. You should ensure a fix is in place before closing day.
Preparation is key
A home is a significant purchase. You probably don’t want to throw caution to the wind when making such a large investment. If you prepare and catch problems early on, you can save yourself a lot of stress in the future. You should consider working with a skilled real estate law professional if you’re thinking about buying a home.