Here are the top 10 issues that can Delay your Closing
Closing an escrow, takes the cooperation of many parties. Buyer, seller, lender, escrow and title company–just to name a few! There are many things your Real Estate Agent will be working on for you behind the scenes, here are some ways you can ensure a smooth ride to the end.
This is one of the primary items that can hold up a closing. You will need to provide proof of insurance that meets lender requirements. Many companies are now under-insuring, requiring policies be re-written at the last minute.
Most lenders do not require termite certifications unless it is specified in the purchase contract. If it is, evidence of completion will be required prior to funding.
Homeowners Association (HOA) Certification
This is required for all condos. Get started on this early, it can be a two week process! You will need to request this from the Home Owners Association Board, and some require a fee to process it.
How are you taking title? Loan documents can not be drawn up without this important piece of information. Make sure to let escrow know as soon as possible.
Acquiring New Credit/Debt
Do not acquire any new debt or credit during the escrow process! I know you will be tempted to start looking at new furniture and fun stuff for the house…but hold off, or pay cash. Lenders will often re-run credit to check for any updates or changes. Acquiring new debt could substantially change your FICO scores and/or debt to income ratio, affecting your ability to obtain a loan.
The majority of lenders DO verify employment, often just prior to funding. In order to avoid delays, make sure the loan officer or lender has the correct contact information for the representative in Human Resources who can verify your employment.
Buyer Goes in to Escrow to Sign
The main thing here is that the buyer knows the exact amount to bring with them to the signing. If the lender has had the standard 5 days to review and file, this will be no problem. IF there has been a delay in getting the documents to the lender, in the rush to get down to sign there can be chaos trying to get everyone back on the same page! Hopefully it goes as smoothly as expected.
Buyer’s Certified Funds
If you are cashing out a mutual fund or liquidating a stock account, it can take up to a week or more to get the funds. Start this process early so funds will be available to close. Also, make sure you understand how to get your funds to escrow. Only certified checks or a wire transfer can be accepted. Also make sure a cashiers check is from a local bank. If not, it can take longer to fund.
Statement of Information from Seller/Borrower
Title requires this in order to check for any undisclosed liens or other information. Be sure to complete and return this to escrow as soon as possible.
Purchase Contract Changes
Be sure to submit any and all contract changes to the loan officer and escrow officer as soon as possible. If the instructions are not complete, explicit, and lender-approved, closing may be delayed.
Lori Mode and Bruce Durham have been in the Real Estate Market in Elk Grove for 25 years. During this time we have built strong and trusted relationships with lenders and escrow officers. We can help you in the whole process of selling or buying, call us today!
Visit our Website to begin your search for your new home, or see the page on Selling and request a FREE Market Analysis of your home.