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Possible Issues That May Delay Your Closing

Possible Issues That May Delay Your Closing


Possible Issues That May Delay Your Closing

You’ve found and negotiated your new home, have everything packed up, and are eagerly counting down the days until you get to move in. Then you get the bad news. Your closing is delayed. Why can this happen, and what can be done to avoid it? Grab a cup of chamomile tea, light a lavender candle and read on.

6 Signs It's Time to Sell Your Home

Appraisal Issues

A home appraisal needs to come in at a certain amount, typically at or above the selling price, for the lender to agree to fund the mortgage. If it comes in too low, this can cause your closing to be delayed.

What to do? If you can’t afford to pay in cash to avoid the mortgage lender’s appraisal criteria, other options include ordering a second appraisal, offering a larger down payment or renegotiating price.

Title Obstacles

Property can’t be sold if there are liens against it. If a title search uncovers that the property doesn’t have a “clear title,” it can take several days to straighten this out, which pushes your closing back.

What to do? Sellers should pay off any debts associated with the house prior to putting it on the market. And buyers should consider title insurance to protect them against any property claims that might have been missed in the title search.

Credit Score Change

Lenders pull your credit to initially approve your loan, but they also pull it again a few days before closing to see if anything has changed. If the score doesn’t meet the requirements of the loan program, the closing may be delayed or even canceled until the lender can re-evaluate if the buyer can make the principal, interest, taxes, and insurance payment, or PITI payment.

What to do? Buyers should avoid incurring new debt or paying bills late, both of which can decrease credit scores.

Unexplained Money

Lenders don’t like surprises, even if it seems like a significant amount of money showing up would please them.

What to do? If the buyer received an unexpected bonus or a gift from their parents, be prepared to provide the mortgage company a letter of explanation.

Save Money with Simple Home Repairs and Maintenance

Agreed Upon Repairs Aren’t Completed

During the negotiations, the sellers may have agreed to replace the roof, fix the broken window, or a myriad of other requests.

What to do? If these concessions aren’t met, buyers can ask for a reduction in the home’s sale price to cover the cost of repairs or to receive protection from a home warranty.

Walk Through Snafus

The final walk through may uncover issues with the home or, as mentioned above, may bring to light the fact the sellers failed to make the agreed-upon repairs.

What to do? Sellers should make sure all contract terms are met prior to walk-through. If this does not happen, buyers should contact their real estate agent for immediate assistance.

It’s never fun for closing to be delayed, but it’s smart to be prepared for it, just in case. Do everything your mortgage originator and real estate agent ask of you beforehand, so you won’t be the one causing any delays on closing day.

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020