Del Mar - Encinitas - La Jolla - coastal San Diego real estate
Stay Calm During This Stressful Situation
Many of the reasons for a delayed real estate closing can be avoided if you know what to watch out for in advance.
Closing delays often have to do with the buyer's new home loan. For example, lenders require that buyers have a homeowner's insurance policy in effect at closing. If this critical item is overlooked, closing will have to be postponed until the buyers have their insurance in place.
A closing could be late if the funding check from the buyer's lender isn't issued on time. This can happen if you don't sign your loan documents promptly—a situation over which you have control. A circumstance over which you have little control is a delay due to lender backlog. This will occur when there's a lot of refinancing and/or a busy real estate market. If you know the lender is busy, try to get all your loan related paperwork in early.
Sometimes work on the property needs to be completed before the closing can take place. For example, if the lender requires that the termite work be done and the work is delayed for some reason, your closing will have to be postponed. If you're buying a new construction and the completion date is held up, your closing will be delayed.
Sometimes the lender imposes last minute additional requirements, such as a review appraisal of the property or a further explanation of a credit defect. When your loan is approved, be sure to ask if there are any loan conditions that must be met before closing. If there are, get these resolved as soon as possible.
When two home sales are closing concurrently, a delay in one can cause a delay in the other. This can happen if you're buying a home from a seller who's buying another home. If the seller listed his home contingent upon a simultaneous close with the home he's purchasing and that closing is delayed then your closing will also be delayed.
The closing can't take place without the buyer's money for the down payment and closing costs. Buyers often have money wired from various accounts. If wire orders aren't placed early enough or if wire routing instructions aren't correct, the closing will be delayed.
FIRST-TIME TIP: The first thing to do when you hear that your closing isn't going as scheduled is to stay calm. Be sure that your San Diego real estate agent informs all other parties involved in the transaction that there is an unavoidable delay. Get a written extension of the closing if it will be postponed for longer than 24 hours. The last thing you should do, no matter how frustrated you may feel, is call the loan processor directly to complain. Let your loan agent handle the problem if it's related to your new loan.
THE REAL ESTATE CLOSING: Ideally, buyers shouldn't take possession of their new homes until the sale has closed. Whenever possible, postpone the move until the last-minute problem has been sorted out. In busy real estate markets, it may not be possible to reschedule professional movers late in the game. As a last resort, the buyer can ask the seller for permission to occupy the property before the closing and, if the seller is agreeable, an addendum should be drawn up indicating the terms and conditions under which the buyer can move in early. An interim occupancy agreement should also be signed by the buyer and seller, and the buyer's personal property and liability insurance should be in effect as of the date of occupancy.
Ready To Close? Tips To Make Your Closing Easier
Walking through the last step
A final walk-through provision gives the buyers the right to inspect the property prior to closing. This allows the buyers an opportunity to confirm that the property is in the same general condition as it was when they agreed to purchase it. A walk-through can also be used for the purpose of assuring that the sellers have completed repairs they agreed to do, or that any construction work has been completed.
Take the time for a walk-through
Not all buyers complete a final walk-through inspection. Some operate on good faith that the sellers will comply with the terms of the contract and deliver a house that has been maintained, is free of debris and broom-clean. But if you've ever heard a horror story of buyers taking possession of a house that's a shambles, you'll want to exercise your right to do a final inspection.
Close your eyes and breathe
The first thing to do when you hear that your closing isn't going as scheduled is to stay calm. Be sure that your San Diego real estate agent informs all parties involved in the transaction that there is an unavoidable delay. Get a written extension of the closing if it will be postponed for longer than 24 hours. The last thing you should do, no matter how frustrated you feel, is call the loan processor directly to complain. Let your loan agent handle the problem if it's related to your loan.