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When closing on a home, the common desire is for all of the paperwork and meetings to proceed smoothly. Everyone wants to be able to get into their new home as soon as possible without cause for concern or delay. However, there are a few common roadblocks that can conflict with this and cause a standstill in the process of your home closing.

Thanks to years of experience with home closing, we’ve seen it all at 1st United Mortgage. So, we are sharing the most common obstructions and how to remedy them (if possible) to create get you back on track to a quick and easy home closing.

Damage Found During Inspection 

One of the most disappointing issues that can arise during a home inspection is finding damage caused by termites or some other pest infestation. This discovery can not only delay your closing, but even cancel the closing altogether. If this happens, don’t panic initially. See how bad the problem is and negotiate with the seller. However, if the damage is too severe or the seller refuses to pay for the necessary repairs, it is better to walk away at this point.

The inspection may also reveal other damage to the house, such as mold or water damage. If this is the case, there should be a home inspection contingency in your purchase offer that will allow you to back out of the agreement without penalty. 

Low Appraisal 

If the bank’s appraisal on the house you are looking to purchase is lower than the amount you have agreed to pay for the house, this can cause a delay in the closing process. This is because the bank needs to make sure the home is not worth less than you are paying for it. If the appraisal is lower than what you had originally agreed to pay, you will either end up paying less for the home or making up the difference in cash. This may not be a dealbreaker, but don’t let an emotional attachment to the home make your decision. Check the facts and your finances before offering any more of your own cash. 

Errors in Paperwork

Everyone makes mistakes sometimes. However, a mistake that appears within your home closing paperwork can cause the event to be delayed until the error is remedied. In some cases, depending on whose fault the mistake is, there may be a penalty fee tacked onto your bill for each day the closing is delayed. Make sure you have hired a trusted company to help you and have reviewed all paperwork thoroughly. Our team of mortgage specialists is here to help you through each step of the process.  

Title Claims

Before you can purchase a house, you will need to make sure that there are no claims or liens against the property. If either of these does exist, they will need to be taken care of before the house being purchased. A clear title is necessary for the closing of the home to move forward. 

To make sure this occurs properly, you need to hire a title company to perform a title search in addition to issuing title insurance for the process of the home closing to happen properly.

At the end of the day, no one wants their home closing to be delayed. However, life is unpredictable and these events can occur. It doesn’t mean you won’t end up in your dream home, but it may mean walking away from one that isn’t quite as perfect as you thought.

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