There’s nothing to be afraid of, but there are several issues that can delay a house closing. Knowing the pitfalls beforehand will keep your deal going smoothly. We’re going to treat you to the secrets that will ensure a smooth transaction from beginning to end.
- It’s all about the money. Financing delays are the number one reason for delays. Making sure you give your lender all the paperwork they ask for as quickly as possible is crucial. Don’t forget to submit pay stubs, tax returns and up to date bank statements. Anything to avoid mistakes showing up on your credit report. Also, this is not the time to switch jobs, apply for new credit cards, buy a car on a loan or runup credit cards beyond normal use. Any of these red flags could push the 47-day average time to process a mortgage much further out.
- Low appraisals. When home prices are moving fast, it can be difficult for appraisers to keep up. Unfortunately, a low appraisal can put the brakes on a home purchase. That’s because lenders stick to specific loan-to-value ratios. But though this can be a bit tricky you could ask to renegotiate the purchase price. Don’t forget that appraisals are merely opinionsof value. A low appraisal doesn’t always reflect the true value of a home. If the seller won’t budge, ask yourself if you could or would be willing to increase your down payment. Also, if homes continue to appreciate at say 5 percent per year, and this is meant to be your “forever home”, in the big scheme of things, putting down a little extra money may not be SO bad, and you will have treated yourself to the place where you want to create memories.
- Defects found during the home inspection. It’s unrealistic to expect any house to be a perfect ten but an overly zealous home inspector can certainly put a wrench in any deal and create anxiety for both sides. Inspectors walk a fine line knowing that sellers are afraid they will uncover some hidden problem that could derail the sale and buyers want to get every detail they can. It’ s obviously in everyone’s best interest that the inspector focuses on the big picture, i.e., potential fire hazards … ensuring that smoke detectors are in working order, etc. Pest damage especially can be a little spooky but in reality this needn’t be a deal breaker. Termite damage can be reversed through professional repair and with the right bargaining skills, in the end you may well be able to save some money. Wouldn’t that be a treat!
- Title issues. That’s where Liberty Title comes in. Perhaps there’s been a change in your marital status or there’s a possibility that new liens or judgments may have been filed against either the buyer or the seller. A title search ensures that the property’s chain of title will be thoroughly scrutinized to ensure that the seller has the legal right to sell the home. Additionally, it will reveal any clouds on the title to make sure that before closing the buyer will be able to take possession of the home without encumbrances that could jeopardize ownership or cost a lot of money to remedy. Nothing that we can’t handle.
One of the tricks to closing your transaction on time and without any last-minute issues is choosing the right title company. The Team at Liberty Title are here to help you do just that.