Top 10 Issues That Delay Closing

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Closing of escrow takes the cooperation of many parties, including the homebuyer, seller, lender, escrow officer and title company. Here are the top 10 issues that can hold up a closing and tips on what you can do to keep it on track.

  1. Statement of Information:A Statement of Information should be filled out and given to the title company as early in the process as possible. This document provides the necessary facts to properly diferentiate between parties when searching recorded documents, such as liens, court decrees or bankruptcies.
  2. Changes to the Purchase Contract:Be sure to submit all contract changes, omissions and modifications to the lender and escrow officer as soon as possible. If the instructions are not complete, explicit and lender-approved, the closing could be delayed.
  3. Proof of Homeowner’s Insurance:Proof that you have purchased homeowner’s insurance is needed to close your transaction. Be sure to follow up with escrow after contacting your insurance company to ensure the proper documents were received.
  4. Termite Clearance (If Required):Most lenders do not require termite certification unless it is specified in the purchase contract. If it is, evidence of the inspection will be required prior to funding.
  5. Homeowner’s Association Certification:A condominium certificate is required by the homebuyer’s lender to indicate the financial health and status of the HOA and to assess the risk of lending on a condominium. Obtaining the certification from the HOA may take several weeks.
  6. Vesting Instructions:How you take ownership of your property – the vesting of title – will determine who may sign documents involving the property and future rights of the people in the transaction. A real estate attorney can advise you on the diferent vesting options. This information must be provided to the lender and to your escrow officer to finalize the translation.
  7. Acquiring New Credit or Debt: Try not to acquire any new debt or credit in the weeks preceding your transaction. Lenders often re-run your credit report to check for any changes or updates. Acquiring new debt could substantially change your FICO scores an debt-to-income ratio, affecting your ability to obtain a loan.
  8. Employment Verification: Make sure your loan officer has the correct name and phone number of your company’s human resources representative to verify your employment. Often, lenders will verify employment just prior to funding.
  9. Reviewing the Closing Disclosure:Make sure to review the closing disclosure immediately upon receipt and compare the loan terms and various fees with your original loan estimate. If there are any questions, you should contact your lender for clarification. If changes must be made, it is imperative to take care of them as soon as possible. Changes to the closing disclosure, in some cases, could force another three-day waiting period.
  10. Buyer’s Certified Funds:The closing disclosure will indicate the exact amount of funds you need to bring to the closing. If you are cashing in a mutual fund of liquidating a stock brokerage account to finance your purchase, start this process early so funds will be available to close. Only certified checks or wire transfers can be accepted (no personal checks).

  11. Contact the author...

    Ryan Lipsey - Title Representative

    phone-icon619-564-5663

    mail_mail_icon_mail_png_flat_icon_web_icon_png_circle_iconRyan.lipsey@title365.com

    1439263532_mouseRyanLipsey.com 

    Eric Ching on LinkedIn

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  2 comments for “Top 10 Issues That Delay Closing

  1. September 14, 2016 at 12:11 pm

    Great information. Lucky me I reach on your website by accident,
    I bookmarked it.

  2. September 14, 2016 at 6:27 pm

    This is a matter close to my heart cheers.

    Thanks

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