5 things that will derail your home’s closing
You have just signed the real estate contract for the sale of your Spring Texas home. Now all there is left to do is go to closing and move. Sounds simple enough. Because after all what could possibly go wrong?
Oh, it is was only that easy. The time frame between contract signing and the home’s closing is where the good real estate agents (buyers agent and sellers agent) shine. The good real estate agents know how to avoid potential derailments, keep things on track, and bring the transaction to the closing table.
5 things that will either delay or derail your Spring Texas home’s closing:
1. Buyer and seller are unable to reach an agreement on repairs. There is nothing that can derail a home’s closing faster than an inspection report identifying material defects or damages. Calm tempers and logical heads are the best approach to working through a lengthy list of requested repairs. Because if both buyers and sellers want the home to close, there are numerous ways to structure an agreement to address the repairs.
2. Home does not appraise for the agreed upon sales price. If the real estate contract has an appraisal contingency, the buyer can terminate the contract and have his earnest money returned if the home does not meet value. Or the seller and buyer may agree to reduce the sales price to the appraised value and the home will still close. But don’t count on the seller being excited or overly willing to reduce the sales price. Instead the seller may suggest having an another appraisal performed before he agrees to reduce the sales price. Either way if the home does not appraise for the sales price, it will mean a delay or derailment of the closing.
3. Buyer unable to satisfy lender’s final loan conditions. Although the buyer received a loan preapproval letter, preapproval does NOT guarantee the buyer a loan. When the loan comes out of the lender’s underwriting department, the loan usually has final conditions that must be met. These conditions may be as simple as the buyer providing his last bank statement or paycheck to the lender. But the loan condition could be for the buyer to explain / document the source of a recent large deposit in the buyer’s bank account. If the buyer can not satisfy the lender’s final loan conditions, the buyer will not be given a loan and will not be able to close on the home.
4. Cloud on Title. During the title company’s title search, a cloud on title caused by a mechanic’s lien or a tax lien was discovered. The lien has to be removed either through payment or release before the home can transfer hands. The time needed to resolve the cloud on title can easily delay the closing. And it may derail the closing if the seller and the party who placed the lien on the party are unable to reach an agreement on the release of the lien.
5. Seller does not have the funds to close. If the seller’s closing cost on the estimated net sheet was not calculated correctly or the balance of the seller’s mortgage is more than he thought, the seller may have to bring money to the closing table. And if the seller does not have the funds needed, there will be no closing.
There are lots of opportunities for a Spring Texas home’s closing to derail. But with enough cool headed negotating, attention to detail, and managing of the process the real estate transaction will stay on track and close. If you are looking for a Spring Texas Realtor who knows how to get your home from contract to closed and funded, call Jill Wente at 281.804.8626.