Top Reasons for Closing Delays
The closing process can be a stressful period of time, even if the everything occurs without a hitch. If you encounter a problem that causes your closing to be delayed, the process can be especially aggravating—you could be left without a place to live for days on end, and could even subject yourself to legal action by the sellers of the property.
Most closing delays can be attributed to a few key problems, so be on the lookout for the following issues in your closing.
Common Problems that Can Delay Your Closing
A title search is a critical portion of your closing process which can make or break a home purchase. This search ensures that there are no issues with the title to the property, and that the seller of the property is the true owner and is able to sell. If the title search uncovers a lien, judgment, or issue with the chain of title, your closing process could be substantially delayed.
A thorough home inspection can uncover substantial issues in what appears to be a flawless house. Many of the most serious problems with homes, such as a termite infestation and foundational cracks, are not initially visible when you tour the home. Even if the seller agrees to have these issues repaired, substantial damage can take weeks or even months to resolve.
If you are taking out a mortgage to purchase a home, your lender is going to require an appraisal of the home to ensure that the loan is worth their investment. If the appraisal comes back lower than the loan you are trying to take out, either the seller will have to lower the purchase price or you are going to have to come up with the difference in funds in order to move forward with the purchase. You may love a home enough to pay more than it appraises for, but your lender’s pockets only go as deep as the property’s appraised value.
Until you sign the closing documents and have the keys in your hand, your home purchase isn’t final. This is especially true if you are financing your purchase with a home loan; even if you are pre-approved for a mortgage, your lender can back out if you incur any substantial debt, lose your job, or suffer a severe drop in your credit score.
If you opt to get a survey—essentially a map of the property you are purchasing—you may discover significant problems with the property. Most commonly, survey issues will come in the form of an encroachment wherein your home is partly on a neighbor’s lot, a neighbor’s fence is intruding onto your property, or a similar situation.
Right before you close on your home, you will take a final walk-through of the home to ensure that you are getting what you bargained for. If you discover problems during the walk-through that were supposed to be repaired by the seller, or if the repairs aren’t up to your standards, your closing could suffer a delay.
Ready to Close? We’re Here to Help
If you have contracted for the purchase of a home in Columbia, South Carolina—or anywhere else in the state—you will be required to have an attorney close your loan, thanks to South Carolina law. The Boger Law Firm is dedicated to providing quality representation from contract to closing. For questions about the closing process, or to schedule your closing, fill out an online contact form or call (803) 252-2880 today.