Closing day is an exciting day for the buyer and the seller, but it’s also nerve-racking. Is everything in place for this real estate closing to go smoothly? Will a problem cause it to be delayed?
There’s no way to absolutely guarantee that everything will go off without a hitch. But if you take the right steps beforehand, you can increase the chances of the process going smoothly. Keep on reading to learn more about some common closing problems and how to avoid them.
How to Avoid Common Real Estate Closing Problems
Final Walk-Through Problems
Finding a problem during the final walk-through can be a setback if you don’t deal with it right away.
If something is wrong, tell your agent right away. He or she will work with the seller’s agent to resolve the issue(s). The solution might come in the form of placing the amount needed for repairs from the seller’s proceeds into escrow. Or the seller may offer you a credit on your closing fees.
There are a number of money issues that can crop up on closing day. The bank may have made an error, for example, causing your down payment not to arrive on time, or not to arrive in full.
You can nip this in the bud by arranging the transfer a few days early so you can deal with any problems before the closing. Alternatively, you could get a certified or cashier’s check for the down payment before the closing and bringing it to the closing.
A good title company will take care of any potential title issues before closing. Just to be safe, ask for your own copy of the preliminary title report so you can look it over and have one for yourself.
The last thing you want to find at a real estate closing is a documentation error. Or, for one party to ask for a document that they hadn’t previously requested, only for you to not have it. Or maybe the loan documents haven’t arrived on time.
Your closing agent should review documentation in advance to ensure that there are no errors. Make sure you have your own copies of all documents to review yourself, and for your own personal file. Talk to all parties involved ahead of time to make sure plans are in place for the necessary documents to be present at closing. Also, bring every relevant document you can think of to the closing, just in case someone makes a last minute request.
Real Estate Settlement Services from Colony Title Associates
Colony Title has been in business since 1995 and handles more than 2,000 real estate closings per year. If you have any questions or would like to speak to a representative about closing, please give us a call at 410-884-1160 or visit our website for more information.