A “closing date” in real estate transactions is established by the lender. But as many well know, that magical date is subject to change dependent on a range of issues. Closing dates are scheduled for around 45 days following loan approval (on average) and most do, in fact, close on such anticipated day and time. However, often there are barriers along the way that cause delays in the scheduled time to close. Here are a few of those most common:

• Title Defects: Title problems can impede the proper transfer of property ownership from the seller to the buyer, and must be resolved prior to closing. While some title defects involve simple refiling of corrected or accurate documents, others require more time (sometimes even time in court) to sort out discrepancies in the chain of title.

• Home Appraisal Issues: When a home appraisal comes in lower than expected, the loan typically will not fund for the contract price. Underappraisals certainly can delay the closing date, and may even lead to cancellation of the contract.

• Home Repairs: Repairs identified during the home inspection must be resolved prior to closing, unless the buyer and seller come to some other arrangement. The type of repair, agreement and willingness of the homeowner to expedite this activity all impact the rate at which home repair issues stall the closing process.

• Lender Delays: Lenders may ask for additional income-, asset- or debt-related documents to ensure the buyer is financially able to pay the mortgage on the home. Timely submission of any requested information can help minimize delays of this type.

• Incongruities on CD Form: The Closing Disclosure (CD) Form is the document outlaying details of the loan, closing fees, payoff amounts, and other financial information relevant to the buyer and seller sides of the transaction. The lender must submit this document to both parties at least three business days prior to closing. Any discrepancies in the figures contained in this form must be resolved before going to closing, and will defer the closing date until this occurs.

Learn more about barriers to closing from our knowledgeable team! Contact Linear Title & Escrow today.