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5 Things That Could Delay Closing on a House
Buying a new home is one of life's most exciting moments, but weeks leading-up to the closing can be stressful at times. On occasion, problems can pop-up at the last minute, so it's often recommended that buyers temper their expectations until the seller hands over the keys. Unfortunately, this can be a lengthy process as average home closings can last anywhere from 4 to 6 weeks.
When it comes to closings, our real estate agents have seen it all. If you're considering one of these Atlanta homes for sale, below are some common problems that can delay closing on a property.
- The Home Inspection
The home inspection report is one of the most common causes of a delayed closing. Often, a home inspector will uncover an issue or defect that the seller either was not aware of or did not disclose. Upon receiving a home inspection report, you may want to negotiate further with the seller around potential repairs. Luckily, by adding a home inspection contingency to your offer, you'll have the right to back out without penalty if you discover something in the home inspection report that is a major cause for concern. - Financing Issues
First-time homebuyers might be surprised to find there are several things you can do during the closing process that can jeopardize your financing. Remember, your lender decided to preapprove you based on your financial situation and credit history. Any changes, such as large purchases, a drop in credit score, a change of banks, or a change in marital status, may ultimately result in your lender withdrawing their offer to lend to you. - Unexpected Liens or Claims
You cannot legally purchase a property that has a lien on it. If you're attempting to buy a property and the seller did not disclose a lien or claim, you cannot proceed with the closing until the lien is cleared. This is why it's usually a good idea to hire a title company to research the status of the deed prior to the closing. You want to be 100% sure there are no clouds on the title. It's also recommended that you purchase title insurance in case a lien or claim comes up in the future. - The Appraisal is Too Low
Overpaying for your home can ultimately introduce more risk to your lender, so if they feel your appraisal is too low, they might ask you for a second one or ask for repairs to be made before issuing your mortgage. Otherwise, you'll need to ask the seller to lower the asking price. - A Party Gets Cold Feet
As we mentioned, buying a home is one of life's biggest moments, which means both buyers and sellers do get cold feet from time to time. As a buyer, if you decide to back-out, you risk losing any earnest money you made as a deposit with your offer. If the seller backs-out at the last minute, you don't have earnest money to fall back on; however, you may be entitled to sue for damages. We'd recommend speaking with both your real estate agent and attorney to determine the best course of action.
Closings can be stressful, but working with a knowledgeable real estate agent can go a long way towards helping you avoid delays and mitigate risk. For more tips on how to handle real estate transactions, contact us today!