Common Problems Buyers Can Avoid at Closing
Purchasing a new home can be very exciting. You find the home of your dreams and the seller accepts your offer. You imagine the life that you and your family are going to have in your beautiful new home. Sometimes, however, instead of the closing day being a joyful one, it can turn to disappointment if you encounter problems that you did not anticipate.
While some problems may be easy to solve, others can add a lot of time, hassle, and expenses you weren’t prepared for. Here are some of the most common problems buyers encounter at closing and how to avoid them.
- Disheartening surprises during your final walk-through
A final walk-through may reveal issues that you didn’t’ notice before. During the final inspection which typically takes place the day before or even the morning of the closing, you won’t have a lot of time to react to surprises.
Perhaps a storm the night before reveals that there is water leakage in the basement. Or maybe you notice cracks in the walls or ceiling that you didn’t see when the sellers’ furniture was in the home. If the issue is a serious one, you will want to consult with your real estate lawyer right away to see if there is any recourse.
To avoid this type of problem, ensure that you have very thorough inspections before the final walk-through. Discovering last-minute problems doesn’t have to be a deal-breaker, but you should negotiate repair costs with the seller and have money put in escrow with your real estate lawyer.
- What the seller takes with them
It is common for there to be misunderstandings between the buyer and seller concerning what items the seller takes and what they leave behind. You may love the antique light fixtures and be disappointed to discover the seller has replaced them with cheap builder fixtures.
You may be surprised to find on move-in day that the seller has left some very heavy pieces of furniture that you are stuck dealing with before you can move your own furniture in.
The best way to prevent these types of issues is to state clearly in your contract what the seller is to take and what they are to leave.
- Credit problems
When a buyer is approved for a mortgage, they don’t expect that the lender will back out of the deal before closing. But if there is a change in your financial situation or credit rating, that is exactly what can happen.
A change of jobs (even if you are taking a better job) can make you a bigger risk for the lender since you are now back in a probationary period. Or getting a large loan – such as a car loan – before closing can also cause your mortgage lender to reconsider.
To avoid lending issues, you should also avoid large financial moves within the month before your closing. Additionally, it is always a wise move to follow up with your lender the day before your closing to make sure there are no unexpected issues.
- Problems with money transfer
Make sure that you understand how the transfer of funds is going to work on closing day and ensure that you have all the right account numbers and paperwork – otherwise it could delay the closing. Although this is not a serious problem, you can avoid unnecessary stress if you have all the right information – and are prepared – for the money transfer.
- Title issues
One of the services that your real estate lawyer will provide is conducting a title search. This will inform you of any issues such as liens, tax owing, or stipulations that come with the property. These can be frustrating problems, and all title issues must be resolved before closing. It is much better to discover and deal with these problems early than to make costly legal errors which you will have to address later.
Contact Levey Zavet Lawyers today
As professional real estate lawyers, our team can help you avoid these and other pitfalls that you may encounter at closing. Contact us today to arrange for a consultation.