01
Mar

Common Delays when Closing on a Real Estate Purchase

If you are considering purchasing or selling real estate, there are a number of things that you should keep in mind about the closing period. According to a survey conducted by the National Association of Realtors, one-third of deals face closing delays and are commonly caused by three problems:
1. Buyer has financing setbacks
2. There are home inspection issues
3. The Appraisals are different from the agreed-upon sale price

Of the realtors who said they faced delays, 46 percent say it was caused by financial issues, 21 percent said it was because of appraisal problems, and 14 percent said it was because home inspection issues. In 6 percent of the deals, the buyer and seller never even made it to closing.

One of the biggest reason for the buyer’s financing falling apart at the last minute is that the buyer’s credit score changed between loan approval and the closing. To prevent a change in the credit score, it is imperative that the buyer refrains from taking on any additional credit while waiting for the closing. Surely that means refraining from purchasing a new vehicle or new furniture on credit, but it also means avoiding someone running a credit check on you.

Another big reason buyers commonly experience delays at closing is that the buyer did not accurately disclose his finances at the loan approval period of the purchase. In order to prevent a delay at closing, it is important that all of the buyer’s financial information is accurately disclosed.
If you have any questions regarding a real estate transaction, contact my office.