Closing on a home can be thrilling. You are so close to owning a new place and being able to make it your own. However, the closing process can be more complicated than you may anticipate. While it seems like it’s a simple process, the last step before owning your house, there are a variety of issues that can come up during closing that can halt the process altogether.
Potential Closing Issues
What happens at closing is the culmination of the entire process of documenting and buying your house. It is an involved process and, like with anything, mistakes can happen. Here are a few of the most common closing problems you may encounter:
- Document errors – such as misspelled names or incorrect loan amounts
- Mortgage delays – Lenders may let things fall through the cracks and miss deadlines
- Walk-through issues or inspection issues – On occasion, you may run into a problem with your home during the last walk-through (i.e. cracks in walls, changes to fixtures etc)
- Problems with the title – issues can arise such as federal or state tax liens, other claims on the property
- Backing out – the bank could refuse to give you the funds agreed upon, or the seller may have a last-minute change of heart
What Can I Do?
While these matters may seem like they could derail all your plans, there are solutions. Many of these issues can be resolved by involving a real estate attorney. A lawyer with experience will be able to navigate these issues and get you back on track.
There are also a few proactive steps you can take before closing to decrease the chance of problems down the road.
In many cases, you won’t run into any of the previously mentioned closing issues but being aware and prepared can help you close on your new home without a hitch.