Buying or selling a home is an exciting time, but it is important to maintain a level of flexibility with your timing. Namely, the closing date in your contract is an estimate and is not set in stone. If your closing gets postponed, avoid getting anxious or frustrated immediately: this is not uncommon! Here are the top 5 reasons your real estate closing can be delayed.
Additional Lender Requirements
Completing your loan application and submitting all of the documentation your lender requires is a very time-consuming process. Even when you believe you have submitted everything, it is not uncommon for your lender to review your documents and require additional items. For instance, if a lender sees large deposits without knowing the source, they may require documentation showing where those deposits came from. This can take time and may delay the closing.
Incorrect or Unrealistic Closing Dates
When the contract is completed, it is important to pick a closing date that is both reasonable and correct. Sometimes, a contract may have a closing date on the weekend or a holiday. Or, if the buyer is getting a loan, the closing date may be listed too soon after the signing without allowing time for the lender to process the loan and submit final loan approval. Even when the buyer is paying cash, time is needed to obtain the title commitment, a survey, and possibly complete city or village requirements.
In many real estate transactions, an inspection is performed and the buyer requests that certain repairs are made. If the seller does not complete those repairs in a timely manner, the closing can be delayed until a time when those repairs are completed.
Sellers typically need to have a survey of the property done and give the survey to the buyer and title company. The survey will disclose any easements, violations, or encroachments on the property. Depending on the location of the property and the surveyor used, sometimes a survey cannot be completed in time for closing. In those cases, the closing may need to be delayed to allow for the survey to be completed.
Issues With The Final Walk Through
A buyer has a right to do a final walk through of the property to inspect that everything works properly, any agreed upon repairs were completed, and the condition of the property is as expected. The final walk through typically takes place the day before or the day of closing. If the property is not as it should be, the closing may be delayed.
If any of these circumstances arise, or if you have additional questions about your real estate transaction or closing date, contact our offices for a free consultation!