The moment you’ve waited so long for is finally here, closing day. The day that you sign all the papers and the keys to your new home is turned over to you is no longer a distant dream. This moment can be extremely exciting and we’d all love for the process to go effortlessly smooth, what can go wrong at the closing?
Well, the reality is that there are several common problems at closing time on a home. But with the proper planning and the right real estate agent to guide you through the process, closing on your new home should be a day of excitement rather than worry.
Here are some of the most common problems that new homeowners face when trying to close on their home:
This is perhaps the most common problem that arises when homeowners are trying to close on their new home. Whether it is something as simple as a misspelled last name or wrong address or something as major as the wrong loan amount or missing pages, an error can delay the closing process.
Whatever the error may be, doublecheck all the required information and perhaps go through everything with your real estate agent to ensure that all the proper pieces are in order.
By law, you will get your Loan Estimate and Closing Disclosure forms three days before your scheduled closing date, so time really isn’t too much of a luxury. Attention to detail can be your best bet at preventing or catching mistakes and keeping your closing on schedule.
Mortgage Delays or Last Minute Requests
When you finally decide on a closing date, it is important that you communicate with your lender to be sure that there will be plenty of time for them to meet the deadline with the financing. We’d all love to think that we are the only ones on the mind of our lender but it’s more likely that we are just a part of a large stack of requests.
Keeping the lender updated and making sure that all documents are present for the financing to occur is a must because lenders like to request additional information at the last minute and that can cause a bit of panic, especially in the final closing days.
Sometimes not having enough money to cover the down payment and closing costs can be a major issue. There are a few ways to prevent this problem from happening to you. Check with your lender the day before the closing and have your down payment transferred directly to the closing agent.
Another way to eliminate any chance of technological failure is to bring a cashier’s check to the closing. If you plan on transferring funds or preparing before you know the final cost, have more than enough to cover because you will get a refund later after the closing.
There are several reasons why a title may have issues with it and sometimes they aren’t caught until the very end of the process. Read the title report carefully that is sent to your lender after escrow is opened.
Any unresolved issues causing a clouded title will cause delays or become your problem if not caught beforehand. While the title company should catch any issues, take matters into your own hands and double check it yourself.
Appraisals are done in order to protect the lender from loaning more than what the home is worth in the event of foreclosure. If the appraisal comes in lower than expected, the lender will only agree to provide a mortgage for the amount that the home is appraised for.
This leaves the buyer in a difficult situation and on the hook to make up the difference between the mortgage amount and the asking price of the home. If done early enough, you can seek a second home appraisal in hope to receive a more favorable outcome for your lender to offer a higher amount.
These are just a few of the most common problems that homeowners, new and experienced, face when trying to close on their dream home. The best way to help prevent these problems is by working with an experienced real estate agent.
I have been serving the Valley for nearly 20 years now and pride myself on providing my clients with exceptional service and striving for complete satisfaction through the entire homebuyer process. To start your dream home search today, visit https://homesellerarizona.com/area/phoenix-real-estate-agent/.