When buying a home, making it to closing day can feel like a real triumph. However, issues often arise during the real estate closing, and depending on their severity the results may be disastrous. Here are a few common issues to be aware of, as well as some steps you can take to avoid them.
Issues with your credit
Getting approved for a mortgage is a major hurdle to overcome, but the process does not end there. It is possible that a lender may withdraw funding, which can be a disaster should it occur on closing day. This can happen for all sorts of reasons; perhaps you have recently changed jobs or opened a new line of credit. Maybe you have had difficulty paying bills over the last months and it is now just showing up on your credit report. In any case, it is best to be proactive. Contact your lender the day before the closing is set to take place to ensure everything is in order. You should also regulate financial behaviors leading up to the closing to prevent any issues.
Problems with the title search
Title searches ensure that there are no underlying issues with the property you are about to buy. It may be possible that there is a problem with the title, such as unpaid taxes, which can complicate the sale of the home. Remember, problems with your home’s title will be passed on to you once you assume ownership, so they must be remedied before the deal is closed. If the problem is significant, you can request that the closing is delayed until the matter can be worked out.
Discoveries during the final walk-through
Most real estate transactions involve several inspections/walkthroughs, with one occurring the day before or even the day of the closing. If new damage is evident during this walkthrough, such as water damage caused by recent flooding, it can be a major setback for the process. In this case, you may ask the seller to cover repairs, and many sellers oblige these requests to ensure the sale goes through. You can also schedule a tour before the final walkthrough so you can deal with any issues that have recently happened.