December 13, 2018
What Are Some Potential Delays to the Mortgage Closing Process?
While it does take some time to close on a home under even standard circumstance.s—a scenario that we described in a previous post—there are a number of occurrences that can serve to delay the closing date even further.
First of all, as also mentioned in that previous post, there’s failure to be expeditious with having the property inspected, which can result in delay due to lack of time for a seller to remediate discovered issues.
Another, which falls completely out of the control of either buyer or seller, is the complexity of underwriting a loan. The loan officer submits the loan to an underwriter, who examines it closely. If they determine anything is missing, they can send it back to the loan officer, who then needs to gather the absent information. This is naturally more likely to occur if the loan officer is inexperienced.
There are other problems that prove common in the securing of the mortgage in time for closing:
- Difficulty in tracing the funds for down payment.
- Issues with the borrower’s credit report—such as late payments or collections accounts.
- Necessity for further updated bank statements.
- Any debts that need to be paid before closing can occur.
- If a home is appraised well below the amount agreed on by the two parties, a lender will probably be unwilling to loan the full amount, which can result in a cancellation or delay of closing as further options are sought.
If the loan will not be ready by closing date, the buyer must request a later date from the seller.
Moreover, if issues are found as part of the title search, there may be curative hurdles to contend with. This can sometimes take time, though here at Topouzis & Associates, P.C., our experience and expertise allow us to solve problems as quickly as possible.
Should these issues be avoided or resolved, and the transaction proceed to its conclusion, we here at Topouzis & Associates, P.C., stand ready to aid at closing. Not only do we act as a bulwark against problems of the past, performing title searches and ensuring clear title to property—we also back our services with offerings of title insurance (click here).