If you are about to purchase your dream home, keep in mind that both buyer and seller have extensive to-do lists to manage during the transaction.
Here are four issues that could delay your closing including disasters that might occur at the 11th hour.
1. Cloud on the title
Title problems occur in real estate transactions. In fact, they are responsible for 11% of all closing delays. Once the seller has accepted your offer, the title company will research any potential issues with the title to the property. Examples include contractor liens, a divorce decree, outstanding property taxes or past bankruptcies.
2. Closing disclosure time problem
A closing disclosure, or CD, refers to the paperwork involved with the sale of a home. The lender or the title company must send you, as the buyer, documents to review at least three days before the closing, or rescheduling may have to occur.
3. Wrong information
Review paperwork carefully. Make sure names and addresses are correct. Any errors must be fixed before the closing.
4. Final walkthrough issues
Your final walkthrough will occur shortly before closing, sometimes on the same day. Have your checklist ready. Are all the scheduled repairs to the home completed? Are all the appliances in good working order? How about the HVAC system? If there are no unwelcome surprises, your closing should go forward without delay.
Importance of communication
Everything that happens after the seller accepts your offer has the potential for problems to arise. Ongoing communication is essential between you, your real estate agent, your attorney, the title company, the lender and anyone else who has a part to play in the purchase of your dream home. Be diligent, stay in touch and prepare to attend a closing that proceeds on time with no delays.