Some surprises, such as an unexpected pay raise or hotel upgrade, are quite welcome. When it’s time to close on a home, though, surprises are rarely a good thing. The tedium of paperwork can quickly turn into terror if there’s a title mistake or a financing delay. However, buyers can minimize or prevent problems by understanding potential mistakes and avoiding them ahead of the closing date. Here are some of the most common closing issues and how to avert them.
Errors in documents are some of the most common mistakes made in real estate closings. These can be as simple as a typo in a name or an address, or as significant as missing pages or an inaccurate loan amount. Either way, these errors can delay a closing by hours, days, or weeks.
To minimize the risk of clerical errors, ask to see the closing documents in advance and review them carefully. The sooner problems are spotted, the easier it is to fix them and keep the closing on schedule. Visit https://landmark24.com/mylandmark24/customer-care/ to learn how we can help.
Last-Minute Requests and Mortgage Delays
When buyers set closing dates and notify their lenders, it’s assumed that the lender will let them know if the deadline may not be met. However, that’s not a safe assumption to make. In today’s competitive market, lenders are busy, and it’s easy for files to fall between the cracks. It is very common for letters to ask for additional information late in the process, leaving buyers scrambling to find it.
Early in the closing process, ask the lender which documents they need to build your file and write a loan. Once you’ve found out, provide these documents to them as soon as possible. It is important that you keep in constant communication with your lender. You should email or call them once a week to ensure that your file is completed in time. If there’s something they may need, but they haven’t yet asked for it, bring it to the final meeting.
Cash Flow Issues
When buyers visit their banks to arrange the transfer of the down payment to the closing agent, they usually think they’re good to go. Unless the funds transfer falls through or is incomplete, that’s typically the case.
Sidestep cash flow issues by bringing the down payment (in cashier’s or certified check form) or transferring the funds early. If you’re not sure how much you’ll need at closing, transfer a little extra and wait for a refund.
Not all titles are clear. Sometimes, title companies discover that a home seller never paid their property taxes, or a contractor has placed a lien on the property. As murky as these issues are, one thing is clear: they create big problems for home buyers.
Prevent these problems by reading the title report carefully. This information is typically passed directly to the lender, but it’s easy for buyers to get a copy. At closing, title insurance will protect you if the title company made any mistakes in its search.
Problems at Walkthrough
It’s a few days before closing and you’re walking through your soon-to-be home. It can be quite disappointing to find damage that wasn’t there before, but it’s easy to prevent these issues.
Your real estate agent and the seller’s agent will work together to solve the problem. First, they will collaborate to negotiate an agreement between the seller and buyer to decide what’s acceptable, how much the repairs will cost, and whether to hold funds in escrow until the job is done. By resolving these issues ahead of time, you can ensure a timely closing.
Closing on a new home is an exciting process that can quickly become overwhelming if it’s not handled correctly. By looking for the most common mistakes and making an effort to avoid them, you can close on time, every time.
From its humble origins in the Savannah area, Landmark 24 Homes has become one of Georgia’s premier residential new home builders. Request more information via our online form at https://landmark24.com/contactus or call today to schedule a consultation.
Company Name: Landmark 24 Realty, Inc.
Contact Person: Media Relations
Email: Send Email
Phone: (912) 353-1275
Address:6605 Abercorn St #100
Country: United States