Common Closing Delays and How to Avoid Them

Once the real estate contract is signed, the closing process typically takes 30-60 days. However, various hurdles can cause delays. Here are some common challenges and tips to mitigate them:

1. Lender Underwriting Delays

• Common Issues: High-dollar credit card purchases, insufficient down payment, employment concerns, and changes in employment during escrow.
• Prevention: Verify credit, ensure sufficient funds, understand mortgage requirements, and communicate with your loan officer.

2. Appraisal Issues

• Potential Delays: Disparities between appraised value and sales price may require additional financing.
• Mitigation: Work closely with your lender and be prepared for potential adjustments.

3. Home Inspection Concerns

• Potential Issues: Damaged features, safety hazards, and negotiation of repairs.
• Mitigation: Address issues promptly and negotiate as needed.

4. Loan Document Errors:

• Potential Delays: Mistakes in loan documents can cause delays and additional costs.
• Prevention: Review documents carefully and report errors immediately.

5. Title Defects:

• Potential Issues: Hidden title defects can arise even after a thorough search.
• Protection: Title insurance provides coverage against such defects.

6. Walkthrough Surprises:

• Potential Issues: Unexpected issues discovered during the final walkthrough.
• Mitigation: Address any new issues or repairs promptly.

7. Scheduling Conflicts:

• Potential Delays: Conflicts in scheduling among the buyer, seller, and notary.
• Prevention: Communicate travel plans and coordinate schedules effectively.

By understanding these common hurdles and taking proactive steps, you can help ensure a smoother closing process.

Preferred Settlement Services is a full-service title and closing company. With decades of combined experience, our team ensures a smooth closing process, no matter the challenges. Contact us at 941-376-9551 for more information or to schedule a closing.