If you are buying a house and have a deal worked out with a seller, you should figure on spending at least a month waiting to close on the house. It takes a good month for the lender to complete all the necessary steps of the process, but it can take longer if there are delays. While there may be certain things you can do or fail to do that will create delays, but delays can also occur from things that are out of your hands. Here are some of the common causes for delays in home closings.
Failure to complete inspections
If you are responsible for anything in the closing process, it might be to choose what types of inspections you would like and to make sure they get completed. If you fail to do this on time, it could delay your closings, and that is why you should get on this right away if it is your responsibility.
The appraisal was too low
A second thing that can delay your closing involves problems with the appraisal of the house. If the appraisal amount is not high enough, it can create problems getting the loan. You might have to renegotiate the terms with the seller, or you might end up having to put a larger down payment on the house. In either case, a low appraisal is never a good thing in a real estate deal.
There are problems with the title of the home
During the closing process, a title company will research the title to the property you are buying. If the title is clear, there should be no problems closing on the house in a timely manner, but you should expect a delay in the closing if the title search results in finding problems with the home's title.
The lender experiences problems during the underwriting process
The other common thing that can happen during this time is the underwriters find problems with the borrower. Underwriting is a department that checks and verifies a borrower's job, income, credit, and finances. This department digs into a person's past and often finds things that could potentially cause the lender to back out of the loan. If this happens, it will cause a delay in the process.
These are four of the most common causes for delays in home closings. If you want to make sure your home closing happens quickly, you should do everything your lender tells you to do in a timely manner. Contact your real estate agent to find out more about the closing process.