While fulfilling, purchasing real estate is also complex. This is especially true when it comes to the closing, which is when the property officially changes hands. Understanding common closing issues and how to navigate around them can prevent a lot of headaches on your big day.
Problems with your financing
Just because you are approved for financing does not mean you are out of the woods. Changes to your financial outlook between the time you are approved and the closing can have an impact on the lending institution’s decision. In fact, if the change to your credit score was substantial enough, your financing offer may even be revoked. Be careful about the purchases you make leading up to the closing so you do not inadvertently decrease your credit score. You can also check in with the lender about a week before to make certain everything is on track.
Issues during the final inspection
A lot can change between the date of the initial home inspection and the final walkthrough during the closing. If problems have presented, such as plumbing leaks or roof damage, you can request the seller to cover the repairs so the transaction can proceed according to plan. If you are unable to come to an agreement, you are free to walk away from the transaction. You can also prevent last-minute surprises by performing a walkthrough a few weeks before closing. Doing so relieves some of the stress of trying to hash out an agreement on the day of the closing, which is stressful enough.
Concerns about the title
Some property titles may have liens attached, which could be for things like unpaid taxes or contractor repairs. There could also be questions about ownership; a title search might show that a person who is selling the home does not actually have ownership rights. New owners must know about these issues beforehand or they will assume responsibility for them, if the transaction can proceed at all. Have a title inspection performed before the day of the closing so you have more time to deal with these issues.