The process of buying a new home can be both exciting and daunting for most people who are inexperienced in real estate investing. Having your closing day delayed because of last-minute problems is the last thing you want to encounter on your home buying journey.
Here are four common problems homebuyers face at closing and how you can avoid them:
Whether it’s a misspelled name or a transposition of numbers in an address, there are a myriad of errors in closing documents that can bring everything to a halt. You can avoid this by reviewing every document as far in advance as possible. Pay close attention to loan documents and question anything you don’t understand.
Some homebuyers arrive at the closing only to find that the funds for the purchase have not been transferred from their bank to the closing agent. You can avoid this problem by bringing a certified check or cashier’s check yourself or having the bank transfer the funds to the closing agent a few days early. If you do not know the exact amount needed, send a surplus and you’ll get a refund.
Your lender will send the final loan documents to the closing agent, but sometimes they don’t arrive on time. To avoid this, speak with your agent well in advance of your closing date and ask if everyone involved has everything they need. Contact your lender a day or two before your closing to verify that the transaction has been completed.
#4: Clear Title
If the title company discovers there is a lien on the property, this will delay closing. Be sure you request a copy of the preliminary title report and review it for potential problems. Remember, you are not covered by title insurance until the day of closing forward.
Our real estate attorneys represent parties on either side of real estate and financing transactions, including buyers, sellers, landlords, tenants, lenders, borrowers, trustees, guarantors, shareholders, partners, and others. We advise, structure, negotiate, and document a variety of real estate and financing transactions, including leases, purchase and sale agreements, financing agreements, and development agreements for a variety of commercial and residential projects. Contact us today and learn how we can help.