When you’re ready to close your home’s purchase, one of the things you have to be aware of is that there are issues that could prevent the closing from moving forward. Prior to closing, your buyer may want to have inspections performed, for example. If anything goes wrong, then your closing could end up being delayed.
The following are five common issues that lead to delayed closings and what you can do to mitigate the issues.
- Termite inspections
If the buyer has a termite inspection done on your home and discovers termites, this could put an end to the purchase then and there. You can help move along the purchase and keep them interested by discussing ways to handle pest damage and to take care of them for good. If you can remedy the issue quickly, then you’ll be in a better position to get escrow to close.
- Clouds on the title
Clouds on your home’s title will slow down the closing process. You need to make sure that a title search is performed and that the property has no titles. If it does, you may need to resolve the issues before selling. For instance, if you have a lien on the property, handling the debt leading to the lien could have it removed.
- Failed financing
If the financing for the buyer’s mortgage doesn’t go through, then your home won’t go through closing. It’s smart to ask buyers for preapproval letters before accepting any offers.
- The home can’t be insured
Another issue could be if your home can’t be insured. For example, if it’s a fixer-upper, not all mortgage lenders will want to give buyers the money to invest.
- General errors
Finally, there is the risk of general errors. Any errors on paperwork or forms may end up delaying closing. Depending on who is at fault, penalties could be involved.
These are five issues that may prevent a closing on your property. If you run into trouble, remember that there are methods of resolving disputes and problems, so you can move forward with the sale.
