3 Problems That Often Happen When Closing On A House
ShareWhen you buy a house, the most exciting day during the process is the closing day. This is the day you sign all the papers and receive ownership rights to the house. Unfortunately, things can go wrong just before the closing date that can prevent the closing from taking place. Here are three common things that can happen that would stop you from being able to close on the house:
Title work issues
Every time a house sells, a title company completes title work. The goal of title work is to make sure the seller actually owns the house so that the buyer doesn't end up getting scammed. The other goal is to locate liens on the house. If the title company discovers any problems during the title search, you could experience problems at closing.
An example of this would be if the title company found a lien on the house for $5,000 that the seller didn't know about or agree with. The seller would have to pay this lien off at closing if he or she wanted to go through with the closing; however, the seller might decide to postpone closing to have more time to correct the lien.
Loan problems due to credit changes
A second thing that can go wrong when buying a house is problems getting a loan. Even if you are preapproved for a loan, the lender could always change their mind about giving you the loan. Lenders are only likely to do this if the borrower has significant changes in credit, income, or employment. You can prevent a problem like this by keeping your credit in good standing while you are in the process of buying a house. You should also avoid switching jobs during this time.
House repairs not completed
One other thing you should know about is the problems you could have if the seller fails to make repairs that were agreed upon in the purchase agreement. You can and should walk through the home just before closing to make sure the seller has completed all the things he or she agreed upon. If the things are not done, you could postpone closing until they are finished.
Some of these things are out of your hands, but others are within your control. If you want to make sure your closing goes through smoothly and quickly, you may want to talk to your real estate agent to find out what you should do and what you should avoid doing.