Four Things That Could Delay Closing On Your House
Having found a home that suits you and your family’s need, the process of negotiating your purchase begins. For many people, the most nerve wracking part of buying a home is going through the closing process. While personal and financial interests often drive buyers to want to take ownership as soon as possible, there are several important factors which could end up causing delays.
Common Reasons For Closing Delays
A termite inspection is part of your closing costs, and detecting the presence of these pests before buying a home can save you huge amounts of time, money, and inconvenience. A termite infestation can chew through and destroy wood throughout your home and in surrounding structures, such as fencing and sheds, causing damage that makes your home structurally unsound and unsafe to live in. Without an inspection, you are unlikely to notice these pests, though the Integrated Pest Management Program at Cornell University advises that swarms of termites are most likely to be visible during the spring and early summer mating season. While sellers are generally obligated to fix any damage, this could result in potentially lengthy delays.
- Financing Problems
According to HGTV, having a home loan fall through at the last minute is a common problem for many buyers. The reasons for not getting final approval can vary, and may be related to a sudden drop in your credit score due to a late payment or having a debt to income ratio that is too high. The problem could also stem from a home appraisal that is less than the amount you are borrowing, or changed in lending guidelines that require a larger down payment. While these issues do not need to prevent you from purchasing your home, they could result in closing delays.
- Issues With The Title
A title search will be conducted prior to closing to ensure the property you are buying is free and clear of any liens and restrictions that could complicate matters further down the line. While title insurance covers any losses or fees that result from undiscovered defects, any problems discovered during the title search will need to be rectified before your purchase is completed.
- Reluctant Sellers
One of the most frustrating things that can happen when buying a home is to encounter a balky seller. It is important when negotiating your buying agreement to have stipulations in place to protect yourself and the time and money you have invested in the event a seller decides not to go through with the sale.
Reach Out to Us for Help
When purchasing a home, you need someone on your side, looking out for your best interests throughout the closing process. At Cavallo & Cavallo, our experienced New York real estate attorneys can help to ensure your sale goes as smoothly as possible, while protecting you against any unpleasant surprises and delays.