You have found your dream home and written your purchase agreement…you are all set and ready to go, right? What can happen? Is there any reason you won’t close on time? There can be delays that may affect your closing date. Here are some of the top things that can delay a closing:
-Most lenders won’t order appraisals until we know your inspection is done. If your inspection takes too long, it can affect your closing. Sometimes the inspection is done quickly, but there is negotiating going on and that can delay things. Try to get the inspection done quickly and hopefully any negotiating will also be fast.
-Make sure you sign your lender’s forms and get them everything they need as soon as possible. One of the biggest delays I see is waiting for borrower’s to turn in tax forms, updated bank statements and other documents needed to process your loan. We need your disclosures signed so we can order tax transcripts and employment verification’s.
-Appraisals can delay the process. Usually we see appraisals come back within a week, but sometimes there are delays on the seller side or maybe due to a lengthy inspection period. Sometimes there are work orders that need to be completed before we can close. In that case, we also need a final inspection and that frequently isn’t done until just before closing.
-Make sure your lender has underwriting and closing in house – meaning they underwrite the file and do not have to send it to another lender. Sometimes that can be quick, other times it can delay closings. If you aren’t sure, ask your loan officer.
-Do not buy anything using credit – meaning do not go buy a new car or furniture. Do not run up the balances on your credit cards. Most lenders will pull an updated credit report (soft pull that doesn’t affect your credit score) to make sure there aren’t new inquiries or new debt. If there is, it may mean you no longer qualify for your home. Talk to your loan officer before making any major purchases.
-Large deposits into your bank account – especially if they are cash deposits – they need to be verified and could delay your closing.
-You need a valid ID -either a driver’s license or passport – for closing. Make sure they aren’t expired!!
With all the paperwork required for a home purchase, it is not surprising that there can be delays. Sometimes it’s not your fault, sometimes it is – even if you try to do everything quickly! Stay in touch with your loan officer and realtor, ask questions and follow up. The sooner you can get everything needed to your loan officer, the easier the process will be! No one wants delays – we try to get everything done as quickly as we can!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
