Buying a home is no easy task, so with the closing date usually comes a feeling of relief. You can finally call your new place home. If you sold the previous house you lived in, it also involved a closing date. This final part of the process affects you no matter if you are a buyer or a seller.
Before this moment draws nearer for you, it is wise to be aware of potential obstacles so you can take action in avoiding them. The following are just some of the common challenges people face when closing on a house.
Errors in paperwork
Perhaps the easiest to prevent is mistakes in the documents. Even the slightest typo can completely alter the terms of an agreement or the price of a sale. It is vital to review every detail in the paperwork to ensure it is correct before the final meeting.
The worst hurdle may be a delay in the closing date. This can happen for numerous reasons:
- The seller pushes back the date to correlate with a change in his or her own moving schedule.
- You discover a new problem with the house upon the final walk through.
- Your lender requires last-minute documents or rescinds approval for a loan. You can experience similar issues with insurers, too.
- The title is not clear, such as having a lien.
- Costs change or additional fees apply.
Continual communication is the best weapon against delays.
Sometimes the sale falls through at the last moment. The seller may change his or her mind on various grounds. Maybe a better offer came or the reason for the seller’s move fell through, too. Less common, the person has no right to sell the home in the first place, maybe due to an inheritance mix-up or outright fraud. You may be able to seek damages in these cases, and it can be helpful to have backup house choices you can pursue immediately.