Smooth Sailing to Closing Day: How to Prevent Common Delays

Closing on a home is an exciting milestone, but unexpected delays can be frustrating. From financing issues to appraisal discrepancies, several factors can slow down the process. The good news? Many of these setbacks can be prevented with the right preparation.

In this blog post, we’ll explore four common home closing delays and share tips to help you keep your transaction on track.

1. Financing Falls Through

One of the leading causes of closing delays is financing trouble. If you lose your job, take on new debt, or make a major purchase (like a car) after mortgage preapproval, your loan could be denied at the last minute.

How to Avoid It:

- Get your financing secured as early as possible.

- Avoid applying for new credit, accruing additional debt, or making large purchases before closing.

- Pay bills on time and monitor your credit report for any errors.

2. Low Appraisal

If a home appraises for less than the agreed-upon purchase price, lenders will only finance up to the appraised value. This can create a gap between the loan amount and the sale price.

How to Avoid It:

- Include an appraisal contingency in your contract to protect yourself.

- Be prepared to negotiate with the seller if the appraisal comes in low.

- Consider challenging the appraisal if you believe it was inaccurate.

3. Inspection and Repair Issues

A home inspection may uncover significant problems, leading to extended negotiations or repair delays.

How to Avoid It:

- Schedule a home inspection as soon as you go under contract.

- Focus on major repairs rather than minor cosmetic issues to keep negotiations moving.

- If major problems arise, work with your agent to negotiate repairs or a price reduction.

4. HOA Document Delays

If you’re buying a property in a homeowners association (HOA), you must review important HOA documents before closing. If these documents are delayed, so is your closing.

How to Avoid It:

- Request the HOA resale package as early as possible.

- Review the documents carefully to understand potential fee increases or special assessments.

- Work with your agent to ensure all required paperwork is received on time.

What to Do If Your Closing Is Delayed

If your closing hits a roadblock, don’t panic. Work closely with your lender, real estate agent, and title company to address the issue promptly. Staying proactive and informed will help minimize setbacks and keep your home purchase on track.

By understanding these common pitfalls and taking steps to avoid them, you’ll be well-prepared for a smoother, stress-free closing experience! If you have any questions about the home buying process please feel free to give our team a call. We would love to help educate you so that when you are ready to buy you feel fully ready and informed. 

To learn more about issues that could lead to a closing delay take a look at this article from Homes.com.