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Once a homebuyer gets a closing date, they typically breathe a sigh of relief knowing that the process of buying the home is almost over. However, it’s easy to get complacent and falsely assume that no issues will pop up to delay or prevent closing. The reality is that until the paperwork is completed, something could arise which threatens to derail the purchase.
If you are faced with challenges in your closing, you will need experienced legal counsel to assist you. That’s where the Syracuse residential real estate attorneys of Carden Dotzler Hammond, PLLC step in.
The Top 6 Issues That May Jeopardize Your Closing
Purchasing a home is fraught with hurdles, and the entire experience can almost feel like a test. Buyers in Syracuse may expect a smooth transaction, but the reality could be much different. These are the six most likely problems you will encounter as you move towards closing:
- Title issues: The National Association of Realtors estimates that about 13% of closing delays are the result of title issues. From not being the rightful owner to unexpected liens (e.g. court judgments, outstanding taxes, and contractor debts), anything that prevents the seller from conveying clean title could upend the entire process.
- Financing trouble: Syracuse mortgage lenders see buyers who make large credit purchases (even if they are preapproved) and apply for more credit as red flags. The buyer may need to approach a different lender or offer more cash on the purchase to complete the deal. Either way, closing may have to get pushed back.
- Home inspections: Lenders generally require home inspections before they will approve a loan, but the results can cause the deal to fall through. For instance, the inspection may reveal that the house needs a new roof. The seller is not likely to want to spend money on a house they are leaving, nor will the buyer want the obligation.
- Walkthrough problems: It is customary to perform a final walkthrough of the house so the buyer can ensure that it’s in the condition they expect. But missing items, unfinished repair work, and upgrades that weren’t completed could cause delays or worse.
- The appraisal: Lenders in Syracuse do not like to approve loans for more than a house is worth. So when the appraisal comes back and it shows a substantially lower home value, the buyer will run into a problem. The seller may need to lower the asking price or the buyer could offer more cash to make up the difference.
- Closing document problems: Missing documents, typos, clerical mistakes, and similar issues could delay the closing. One particular snag often arises with the closing disclosure, which buyers have the right to review before signing the paperwork. If the buyer doesn’t receive this on time then the closing will probably get moved to a new date.
How Our Firm Can Help
If you are buying a home in Syracuse or the surrounding area, you need legal representation that is committed to walking with you each step of the way to closing. We assist residential homebuyers with:
- Review of the purchase contract and all paperwork required for closing
- Due diligence to uncover issues early and find solutions that fit your purchase
- Title search and examination to identify and correct clouds on title
- Negotiation with the seller to resolve last-minute problems so you can close
- Representing you on the closing date to ensure all documents are properly executed and funds are transferred
If you are in the market for a home or you have already started the work in purchasing one, let us help you anticipate and address issues that could stand in the way of closing. Connect with CDH Law today to learn more.