This week, we invited our trusted title closer Maureen Fitzpatrick to explain why some real estate closings are delayed due to issues from the buyer’s end.
Working as a notary for over 20 years, she loves to see her clients’ smiles after a successful closing. However, things don’t always go as planned. Maureen often sees both the seller and buyer stressed out when closing is postponed, and sometimes delays are actually avoidable if both ends make more informed decisions. According to our expert Maureen, here are some reasons for a delayed closing caused by the buyer.
Even when a mortgage is pre-approved, it’s not guaranteed to come through when the buyer is ready to sign. Any changes to a buyer’s employment status, credit score, or accumulated additional debt could alter a bank’s decision. So, avoid having any shopping sprees before closing because that could affect your debt-to-income ratio.
Appraisal is an analysis of the property value and quality. If an appraisal indicates that the real estate value is not equal to the loan amount, it could also be detrimental and delay the closing.
When a buyer doesn’t submit all paperwork promptly, it’ll predict delays when it comes to closing. The underwriting process cannot move on smoothly if paperwork is missing.
Here’s a checklist of documents for closing on your dream home.
Unsurprisingly, a property could have damages that are not observed until the final walk-through. This is not the buyers’ fault, but the speed of their responses determines how quickly this problem can be resolved before closing.
Last but not least, don’t forget to reach out to Federal Standard Abstract for homeowner insurance. Getting your homeowner insurance in a timely manner before closing is crucial. Most lenders will require buyers to submit proof of insurance before the closing of the house, especially when you have a mortgage.
According to Maureen, the above are the reasons a real estate closing is delayed. As always, ring us up if you have any questions regarding real estate law and want a smooth closing on your dream property.