You are probably eager to complete your real estate closing so that you can start living in your new house. You may even have a date set for your purchase to be over with. However, delays can pop up that slow down your closing, perhaps causing a substantial delay.
It is not unusual for a real estate closing to take longer than you expect. The Day describes different situations that can slightly or substantially delay the completion of your home purchase.
If your financial situation remains stable, you stand a better chance of staying on schedule. However, certain events may change your finances. These can include any of the following:
- Acquiring new debt
- Incurring a court judgment or a lien
- Losing a job
- Beginning a divorce
- Encountering credit report problems
Some situations are under your control. You could put off making new purchases until after your home purchase is complete. However, you might not see events like a divorce or job loss coming. You could also encounter difficulties qualifying for a loan if interest rates increase.
Be aware that appraising your property might also cause delays. You might accept a seller’s price only to find that the appraised value of the property is lower than what the seller had offered. You and the seller might seek a second appraisal if you think the first was incorrect, but if that option does not pan out, you might have to pay the difference or the seller must lower the price.
Failing to sell off an old home
You probably plan to sell your old home to help fund the purchase of your new residence. However, your old house might be slow to sell off, which may cause you to delay buying a new home. In addition, your seller might be in the process of buying a new home and may not want to complete the closing until after he or she has bought a new place to live.
There are other problems that could slow down your home purchase. An inspection report might uncover defects with the property that require repair. Insurers may not want to cover your property if they deem it to be at high risk. A title search could discover problems with the property title. All of these possibilities are important to keep in mind as you seek to keep your closing on schedule.