What are some of the more common reasons for delayed closings?

On Behalf of | Jan 10, 2020 | Residential Real Estate Closings

It’s quite common for you to have to select an attorney and for them to set a closing date soon after you enter into an agreement to either purchase or sell your home. What you may not realize is that the date often changes between the time when it’s originally set and it takes place. There are many reasons why a real estate closing may get delayed.

One of the more common reasons why a closing may be delayed is because lenders need additional documentation to extend a loan to you. While most realtors will require for you to have a prequalification letter in place, that document generally outlines how an extension of a loan to you is contingent upon a re-verification of your financial statements. Your lender may ask you for updated pay stubs, tax forms and other documents before moving forward in underwriting your home loan.

Another common reason that real estate closings may get pushed back is that there may be problems with the appraisal or the title. If your lender finds that there is some type of lien or other encumbrance on the property, then they may require that to be addressed before extending any loan on your future home. In some instances, a desktop appraisal may not be good enough and an in-person one may have to be scheduled and performed.

Real estate closings are often delayed or called off because an inspector discovers structural or major systems flaws with your home that must be repaired before they extend you a loan. If the renovations take longer than expected, then closing may not happen until they’re finished.

It’s not unheard of for Georgia buyers and sellers to become involved in disputes about who’s going to pay for repairs or any other costs that may arise in the days and weeks leading up to closing. It’s also quite common for buyers and sellers to find errors in closing statements. One of the great benefits of having an attorney representing you is that they can be on the lookout for what’s in your best interest as they guide you through the home purchase or sales process here in Augusta.