When you find the home of your dreams, you hope to move in as quickly as possible. However, you don't want to get ahead of yourself, as doing so could result in your overlooking an important detail.
There are many potential issues that can delay the closing on your home, with these five among the most common:
- A problem with the title. In the days prior to closing, a title search is completed on the property you're buying. If it's clear, you don't have to concern yourself with anything on this front. But if something comes up, such as a lien on the property, it can delay the closing.
- Big issues on the inspection report. It's never a good idea to buy a home without having an inspection done, as it gives you the opportunity to learn more about the condition of the property. While small issues are likely to come to light, anything that's major can slow down the process. For example, if the home has a cracked foundation, you may want to have an experienced professional examine it and provide feedback.
- The appraisal is lower than was expected. Prior to your purchasing a home, your lender must confirm whether it's worth its estimated value. If for any reason the appraisal comes back too low, you'll need to negotiate a lower price and/or find someone to conduct a second appraisal. Either way, a closing delay is likely.
- The seller backs out. This could happen for many reasons, e.g., if the person gets cold feet or needs to delay their move to another home.
- Last minute financing problems. You can do your best to avoid this by staying in touch with your lender, but something could pop up at the last minute that results in your financing falling through. For instance, your lender may find that your income isn't as high as stated, which alters how much of a loan that you qualify for.
All of these things, among others, can delay closing on your home. By protecting against these issues early on, you improve the likelihood of a smooth and timely closing process.
Depending on the circumstances, you may need to learn more about your legal rights before or after your closing. For example, if the seller failed to disclose a serious issue, you may want to take legal action to protect yourself and receive the appropriate compensation.