Here are five common problems that can easily derail your home’s closing:
Falling Credit Score. Yes, the lender looked at your credit score before approving you for your loan. However, it’s not uncommon for a lender to pull your credit again–just ahead of the final document signing. If your credit score has dropped dramatically since your loan approval, the lender might call the whole thing of.
In preparation for your closing, make sure to avoid ANY activities that could lead to a change in your credit status. In short: hold off on applying for new loans or credit cards and don’t make a lot of purchases on your credit cards either. A very small shift in your credit score is normal, but a big change is a red flag that could derail your closing.
Paperwork Errors. You are likely to continue to need to provide documentation ahead of your closing. Maybe you need to finish an income audit or fill out another form. If you make mistakes, it can delay your closing while the problem is fixed.
On top of that, there might be errors in the final closing documents. Make sure you know the terms of the deal, and that you are clear on what should be in the documents. You could end up derailing your closing if the errors are discovered without time to fix them.
Title Hasn’t Been Cleared. Sometimes, as underwriters and others are doing their due diligence on your home purchase, something comes up. Perhaps it’s information about the title. Depending on what happened with the house in the past regarding ownership, the title might not be clear. If a title isn’t clear it will derail your closing until the matter can be resolved.
Contingency Problems. Is your new home purchase contingent on selling your existing home? If something happened and your old home hasn’t sold, and you were depending on those funds for your new home, you will have a problem. Smart buyers have a backup plan to handle potential problems, and this is an area where a real estate professional is of tremendous assistance.
Cash Flow Issues. When you come to the closing, you need to have money in hand. If you don’t have the down payment or you aren’t prepared to cover other costs, you could derail your closing. You should also have the information you need for a wire transfer. Wire transfers initiated after a certain time of day won’t go through until the next day, so talk to your financial institution to understand how much time you’ll need when it comes to transferring funds.
Been There. Done That. Real estate professionals have seen just about every problem out there, and our experience and expertise has taught us how to deal with problems. So if you’re thinking of jumping into the market, let’s talk about what you can expect, and how we can work together to make it happen as smoothly and trouble-free as possible.
Jo Pellegrino
Keeping the sale on track for a smooth closing-Shared by Jo Pellegrino
You’ve found your dream home and have been approved for your loan. You even have a date for the closing. Now all you have to do is wait, right?
Unfortunately, the home buying process isn’t truly complete until the closing is finished and the ink is dry on the documents. Because closing dates can be anywhere from four to six weeks or longer, there’s still time for something to go wrong. (If no loan is involved, the closing period is shorter.)
During the time between when you’ve secured your loan, and the time you close on the house, it’s possible for the whole thing to be derailed.
Here are five common problems that can easily derail your home’s closing:
Falling Credit Score. Yes, the lender looked at your credit score before approving you for your loan. However, it’s not uncommon for a lender to pull your credit again–just ahead of the final document signing. If your credit score has dropped dramatically since your loan approval, the lender might call the whole thing of.
In preparation for your closing, make sure to avoid ANY activities that could lead to a change in your credit status. In short: hold off on applying for new loans or credit cards and don’t make a lot of purchases on your credit cards either. A very small shift in your credit score is normal, but a big change is a red flag that could derail your closing.
Paperwork Errors. You are likely to continue to need to provide documentation ahead of your closing. Maybe you need to finish an income audit or fill out another form. If you make mistakes, it can delay your closing while the problem is fixed.
On top of that, there might be errors in the final closing documents. Make sure you know the terms of the deal, and that you are clear on what should be in the documents. You could end up derailing your closing if the errors are discovered without time to fix them.
Title Hasn’t Been Cleared. Sometimes, as underwriters and others are doing their due diligence on your home purchase, something comes up. Perhaps it’s information about the title. Depending on what happened with the house in the past regarding ownership, the title might not be clear. If a title isn’t clear it will derail your closing until the matter can be resolved.
Contingency Problems. Is your new home purchase contingent on selling your existing home? If something happened and your old home hasn’t sold, and you were depending on those funds for your new home, you will have a problem. Smart buyers have a backup plan to handle potential problems, and this is an area where a real estate professional is of tremendous assistance.
Cash Flow Issues. When you come to the closing, you need to have money in hand. If you don’t have the down payment or you aren’t prepared to cover other costs, you could derail your closing. You should also have the information you need for a wire transfer. Wire transfers initiated after a certain time of day won’t go through until the next day, so talk to your financial institution to understand how much time you’ll need when it comes to transferring funds.
Been There. Done That. Real estate professionals have seen just about every problem out there, and our experience and expertise has taught us how to deal with problems. So if you’re thinking of jumping into the market, let’s talk about what you can expect, and how we can work together to make it happen as smoothly and trouble-free as possible.
Jo Pellegrino
Here are five common problems that can easily derail your home’s closing:
Falling Credit Score. Yes, the lender looked at your credit score before approving you for your loan. However, it’s not uncommon for a lender to pull your credit again–just ahead of the final document signing. If your credit score has dropped dramatically since your loan approval, the lender might call the whole thing of.
In preparation for your closing, make sure to avoid ANY activities that could lead to a change in your credit status. In short: hold off on applying for new loans or credit cards and don’t make a lot of purchases on your credit cards either. A very small shift in your credit score is normal, but a big change is a red flag that could derail your closing.
Paperwork Errors. You are likely to continue to need to provide documentation ahead of your closing. Maybe you need to finish an income audit or fill out another form. If you make mistakes, it can delay your closing while the problem is fixed.
On top of that, there might be errors in the final closing documents. Make sure you know the terms of the deal, and that you are clear on what should be in the documents. You could end up derailing your closing if the errors are discovered without time to fix them.
Title Hasn’t Been Cleared. Sometimes, as underwriters and others are doing their due diligence on your home purchase, something comes up. Perhaps it’s information about the title. Depending on what happened with the house in the past regarding ownership, the title might not be clear. If a title isn’t clear it will derail your closing until the matter can be resolved.
Contingency Problems. Is your new home purchase contingent on selling your existing home? If something happened and your old home hasn’t sold, and you were depending on those funds for your new home, you will have a problem. Smart buyers have a backup plan to handle potential problems, and this is an area where a real estate professional is of tremendous assistance.
Cash Flow Issues. When you come to the closing, you need to have money in hand. If you don’t have the down payment or you aren’t prepared to cover other costs, you could derail your closing. You should also have the information you need for a wire transfer. Wire transfers initiated after a certain time of day won’t go through until the next day, so talk to your financial institution to understand how much time you’ll need when it comes to transferring funds.
Been There. Done That. Real estate professionals have seen just about every problem out there, and our experience and expertise has taught us how to deal with problems. So if you’re thinking of jumping into the market, let’s talk about what you can expect, and how we can work together to make it happen as smoothly and trouble-free as possible.
Jo Pellegrino