Soon-to-be homeowners in Tennessee are probably looking forward to closing day. They need to keep in mind, however, that things can happen at the closing that can delay or even cancel the sale. It is a good idea to prepare and prevent any potential mishaps.
The Washington Post discusses some common issues that crop up in the days leading up to the closing. These include issues with the title, structural problems found during the inspection and money problems. Reviewing the title report is always a good idea to make sure there are no potential problems. The buyer and seller should decide who is responsible for repairs early on so there are no disputes when it comes to closing.
All-cash sales can avoid some of the common problems that may occur with borrowing money. With a mortgage, the buyer can minimize problems with a pre-approval. There are also numerous documents needed to get a mortgage, so assembling these ahead of time can save time.
Keep in mind that funds for the closing costs are necessary at the closing. Inquire if a cashier’s check or money wire is the preferred method of payment. It is also common for the lender to ask for certain documents at the last minute, so contact the lender a couple days before the closing to ask if there is anything else they need.
According to the Consumer Financial Protection Bureau, the signing of documents can also delay the sale. There are often multiple parties, such as realtors, title company, escrow company, attorneys and lenders, who need to sign the papers. It is best if everyone is in the same room together so the signings can occur quickly. It is also important the buyer reads all the loan documents before signing to ensure understanding and agreement.