The closing is the finish line for a real estate transaction that both buyers and sellers strive to cross at the earliest point they can. It’s when the dotted lines get signed, the money and ownership change, and both parties get what they want. The primary difficulty with this is that there can be many challenges and obstacles along the way that an delay the closing. Never count your chickens until they have hatched! But what are some of the biggest and most common hurdles to overcome? To answer this question, here are five things that will delay the closing when you’re buying or selling real estate in Greenville.
1. Financing Problems
Most people have to take out a mortgage to purchase real estate since very few people have enough money to make a cash purchase. Understandably then, financing problems are often high on the list of things that will delay terminating in buying / selling real estate on Greenville.
Often, buyers think their financing is closed after talking to the Lender, but things go south after a lender closely examines their financial position. Here are some common financing problems delaying closing:
- Not obtaining prior approval or not being able to get it
- Failure to provide 100% accurate information to the Lender
- Job loss or job change
- Debt-to-Income Ratio Inflated
- A drop in credit score
- Opening new lines of credit
- Make big purchases
2. Title Issues
Property issues are also competing for first place on the list of
. Remember, lenders will require a property search before lending money to ensure that other parties do not have some claims on the property. The purpose of the property right research is to protect the Lender, and the buyer from situations in which there are debts or liens associated with the property and entities other than the seller can claim legal ownership.
Here’s what business professionals have to say about title issues: “Title report issues are the most common reason for closing delays. Some sellers do not fully aware of past liens on their property, and buyers are frustrated with waiting for these complex decisions at times. Tracking title issuance and remedial property services are the most effective methods to protect against these costly delays. “
To find out more about this why buyers and sellers delay the closing – and what to do about it – contact the Greenville agent at (252) 227-0274.
3. Low Appraisal Value
Lenders will require an appraisal to ensure the property is at least appreciative of what they intend to lend. If the assessment is performed late in the game or another firm gives the property a lower value after receiving your initial number, this may also delay the closing.
“In theory, you will know if there are problems with valuing the home before the closing date quickly approaches. However, the theory differs from real life when it comes to buying and selling homes. Appraisal problems can arise when the home is not valued at the sale price or “The requirements are not communicated to the parties. Either the bank requires repairs before closing, or another evaluation is required, which leads to delays in procedures.”
4. Instrument Survey Problems
The often-overlooked thing that delays the close of real estate buy/sell on Greenville is an issue wiping instruments. Even homes bought and sold multiple times before without a hitch could be subject to tool wiping problems in further investigation. This has the tendency to delay the closing for days to weeks.
Experts say that a “home of any age” can face disputes about trespassing on the boundary line for the land on which the house is located. Property lines, resistance, or a fence could become an issue and the closing could be delayed until all parties settle. “
5. Inspection Issues
Most buyers will want an examination or contingency clause in the purchase contract. They will want to go through a professional check to ensure the property has no costly problems or needs significant repairs. They want to walk away from the deal if an inspection leads to issues like this. And if serious problems are detected, the shutdown can, of course, be delayed.
That’s why inspections are done early in the process. If the review finds that repairs are needed, the buyer and seller can come up with solutions well before closing. But it doesn’t always work that way.
“Due to miscommunication, delay, or simply negligence, some of these reforms may not be implemented, and this will often appear during the final examination. Mortgage lenders will not stand for it because they are not receiving what is included in the contract, so expect them to delay the closing temporarily until they have everything they need. Also, last checks can reveal unexpected issues like malfunctioning appliances or plumbing fixtures. These types of problems will also lead to shutdown delays. “
Using a Greenville Agent to Avoid Closing Delays
Then, you can see that a lot of the pieces have to be put in place for the shutdown to take place on time and without delay. Your best bet to avoiding third parties or professionals who delay the closing is to have an expert Greenville agent at your corner to guide you through the process and help ensure all pieces are actually in place when needed. So if you want to avoid these things that will delay closing when buying or selling real estate in Greenville, then contact us today on (252) 227-0274.