Closings get delayed more frequently than many people realize. One small slip-up or missed detail can cause closing to be delayed for a matter of days or even weeks.
The good news, though, is that these mistakes are completely avoidable. In this post, we’ll show you how to avoid common mistakes that can delay closing.
Failing To Get Paperwork To Your Lender
Missing paperwork is often a common mistake that can delay closing. During the loan application process, buyers sometimes fail to provide their lender with the proper documentation. Without that documentation, a lender isn’t able to issue final loan approval.
When you’re buying a home, it’s important that you get your lender everything they need as soon as possible. This will ensure that they have proper time to review the documentation prior to closing. And, if there is any additional documents they need, you’ll have sufficient time to provide that documentation as well.
While it can get exhausting to constantly provide updated paperwork, it’s part of the loan approval process. The quicker you get your lender everything, the sooner it will be over.
Assuming Loan Approval Is A Sure Thing
Another common mistakes that can delay closing is assuming that loan approval is a sure thing. A pre-approval doesn’t ensure that your loan will be approved. If something changes during the loan approval process, it can delay closing or cause a loan to be denied altogether.
Here are a few common things that can hurt loan approval:
- Changes to credit (i.e. applying for a new credit card)
- Quitting or changing jobs
- Changes income (i.e. accepting a job where the income is based on commmission)
- Changes in debt (i.e. buying a new car)
This is one of the most common ways that closings can be delayed. Oftentimes, buyers don’t realize that buying a car or changing jobs can hurt loan approval. Changes to income, credit, or debt are all things that can delay loan approval. Before making changes to any of these items, be sure to talk with your loan officer.
Miscommunications Between Lender And Realtors
Communication between the lender, realtors, and the Knoxville title company is another common mistake that can delay closing. When the sales prices changes, the appraisal is delayed, or there are repairs being done, it’s important that all parties are aware.
When these three parties aren’t on the same page, it can cause critical miscommunications. It’s important that vital information, like changes in the sales price, are communicated between all parties.
This is particularly true now under the TILA-RESPA integrated disclosure rules, where the closing disclosure must go out 3 business days prior to closing. Last minute changes to the CD can delay closing, which is why communication is so important.
Repairs Aren’t Completed
Another common mistake that can delay closing is when repairs aren’t completed in time. Repairs must be completed prior to closing and must be found satisfactory by the buyer. If this doesn’t happen, this can delay closing
Sometimes repairs can take longer than expected. Or, a seller can neglect to make repairs. Whenever this does happen, closing will be delayed until the repairs are completed.
In order to avoid this closing delay, it’s important that a seller completes repairs in a timely manners. It’s also important that both realtors check in on the repairs to ensure that they’re moving along.
Issues With The Final Walk-Through
Finally, a common mistake that can delay closing is issues with the final walk-through. It’s important that everything in a home is left in working order, things are left clean, and that all agreed upon items are left in the home.
When things are not left as expected for the final walk-through, there can cause delays in closing. If things are not satisfactory for the buyer, then buyer and seller must come to an agreement about how to resolve the issue. Oftentimes, if a final walk-through goes awry, closing will be delayed, unless buyer and seller can come to a quick agreement.
Are you in the process of buying or selling a home in the Knoxville area? Title Group would love to assist you in any way possible. You can reach us at 865-392-5801 or via email at orders@titlegroupoftn.com.
Title Group of Tennessee is a full service Knoxville title company. We specialize in Knox, Sevier, Loudon, Blount, Jefferson, and surrounding counties. Title Group of Tennessee is ALTA Best Practices Certified since September 30, 2015.