Perhaps you have found the home of your dreams. You and the seller have signed a real estate purchase contract, and you are anxiously awaiting the closing.
Will the closing date as specified in the contract actually occur? Here are six situations that could cause a delay.
1. Bank appraisal issues
To close on your new home, you will need a bank appraisal. One issue could be repairs the appraiser recommends that various contractors must make before closing.
2. Problems with the title
An attorney should perform a title search once you have provided your purchase offer. There should be no liens; the home should have a clean title.
3. Instrument survey discrepancy
Another task for an attorney is to perform an instrument survey review. This involves looking over a drawing of the land on which the house is situated. A discrepancy, such as a boundary line encroachment involving a neighboring property, could delay the closing.
4. Additional documents needed
Your lender may call for additional documents after reviewing your bank and credit card statements. Sometimes, this happens right before the scheduled closing, which can cause a frustrating delay. However, your attorney can work with the lender to circumvent a possible closing delay.
5. Final walk-through frustration
Another last-minute frustration is when an issue turns up during the final walk-through. This could be something as simple as an appliance that does not work or something more major such as an HVAC system not functioning at all.
6. Unrealistic contract dates
Finally, the type of financing used to purchase your new home will be an important factor in the length of time to closing. There will also be contingencies and other variables in the agreement. Once the seller accepts your purchase offer, it will normally take 45 to 60 days for closing to happen. In the meantime, you, your real estate agent and your attorney can make sure everything is done properly so when the big day comes, your closing goes smoothly.