What Can Delay a Closing?

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It’s unfortunately all too common for home settlements to be delayed unexpectedly. Real estate transactions are complex, which means that many factors pose the risk of delay or, even worse, cancellation. 

Before you approach your own settlement date, make sure you understand the most common reasons why a real estate closing may be delayed and avoid those pitfalls. 

Title Report Red Flags

In order to buy or sell a home, you must possess a free and clear title. This document proves legal ownership of a real asset — like a home — and must be clear of debts, liens, and credit claims in order to be transferred in a real estate transaction. 

Title insurance is designed to protect home buyers from any hidden or unknown title defects, but unknown title issues can still cause settlement delays. There are many potential issues that title insurance uncovers, including:

  • Ownership or disputed ownership of property by another person
  • Judgements against the properly
  • Forgery and fraud
  • Back taxes
  • Unresolved building code violations

Mortgage Issues

Unless you plan to purchase your home in cash, you’ll need financing using a mortgage. A simple pre-approval doesn’t guarantee a mortgage, and there are many steps along the way where buyers face financing uncertainty. 

Make sure you work closely with your real estate attorney and mortgage lender to submit the required documents and receive lender approval for your mortgage. Nobody wants unpleasant surprises as they sit down at the closing table. 

Failure To Bring the Right Documents

Closing day is a big day for everybody involved. It’s not merely a gathering to exchange keys and celebrate; it’s a transaction that requires specific documents. Make sure you bring everything you need and arrive early to the settlement. Multiple forms of ID, information for your wire transfer, and all loan documents are a few of the most important items to bring along. 

To avoid closing delays, partner with a reliable and experienced title service to meet all of your home buying needs. Benefit Title Services, LLC, located in Tampa, Florida, will guide you through every step of the closing process and ensure that any potential title problems are resolved far ahead of time. Call Benefit Title today at (855) 464-3227 to enjoy a smooth and stress-free home buying experience.