How to Keep Your Closing Process on Track
April 19th, 2016
April 19th, 2016
When you purchase a home, both you and the home seller will negotiate a closing date – the date ownership of the property will transfer from the seller to the buyer. Both the buyer and the seller agree to meet this date in good faith. If delays occur in meeting the closing date, you may or may not face consequences, such as a monetary penalty. Additionally, you and the seller will need to renegotiate a new date.
You need to realize that delays in meeting the closing date can affect other closing dates. For example, the seller may be trying to buy a home. Their purchase closing can’t happen until they sell their home to you. Additionally, the seller of the home your seller is trying to buy needs to close before they can purchase their new home. It becomes a domino effect when closing dates aren’t met. Therefore, you should never commit to a date if you have any doubt that you may not be able to meet that deadline.
In order to steer clear of any closing delays, here are four ways to keep the closing process moving forward.
1. Rely on your real estate agent to catch problems
Once the property is under contract, your real estate agent should touch base with all parties at least twice a week, if not more. An experienced real agent knows to watch for any surprises or changes during the transaction process. If the buyer’s or the seller’s agents identify any potential problems, a plan should be put in place to resolve the issues in a timely manner.
2. Buyers should talk to their mortgage broker or lender regularly.
Home loans require lots of paperwork. Don’t delay in getting this paperwork to your mortgage broker or lender. A missing document or a forgotten signature can hold up the closing.
Also, remember, your mortgage rate is tied to your closing. If a delay occurs, you could lose your rate and be forced to accept a higher rate. Or, worse yet, you could have to go through the whole process again, because the new rate changes your preliminary numbers.
3. Be aware that last-minute surprises from the seller can crop up.
Sometimes, closing delays can occur when the seller isn’t able to move out of the house in time, or they fail to get the negotiated repairs done. It’s a good idea to negotiate a deadline IN WRITING that’s at least a week before closing. This way if the time comes, and the seller hasn’t made repairs to your satisfaction, you have some wiggle room left to ensure things are done.
4. Keep your finances stable.
Don’t go out and make any major changes to your finances before closing. This includes: purchasing a car, boat, new appliances, or new furniture; applying for new credit; and/or changing your job. Any changes may mean you could lose the loan or delay your purchase.
Unfortunately, sometimes, financial emergencies do occur. If something happens that could not have been prevented, notify your mortgage broker or lender as soon as possible to see if a solution can be found for the problem.
Buying a home and navigating the loan process can be stressful. That’s why it’s important to have an experienced professional, like the mortgage experts at Grandview Lending by your side. They can help you successfully meet your closing requirements and deadlines. Contact them today for more information.
Photo credits: 123RF / Gino Santa Maria / Andrei Sevostiano / modified
We provide our clients with exceptional service and integrity which has become our hallmark.