If you’re reading this, you’re either getting ready to begin the home buying process or maybe you’re on the final stretch before closing, and I want to help you get there. You should know these 6 things to avoid delays when closing on your home in this article.  A closing day shouldn’t be stressful for anyone.  Here are some pointers to help you have the smoothest closing ever, keeping you in control. You will be shocked at what some people overlook before closing. 

In simple terms, what is a closing date? How do you prepare? Here is the moment when you officially become the new owner by signing all of the documents. Homebuying or selling requires this formal step. 

If you’ve been working or have many other responsibilities like children or aging parents, packing, arranging movers…you get the picture, closing day can be extremely exhausting by then. You should plan ahead so you can avoid these problems so your closing will go smoothly.  

You should be warned, there is a very high probability that there will be some sort of glitch in a closing. If you have done your research, however, it should only be a small thing. No matter what title company or attorney you are working with, you should walk into your closing with: 

  • All of your questions answered 
  • All negotiations should’ve been done 
  • Your mortgage approved 

Let’s talk about these 6 closing roadblocks 

1. ADDRESS CONCERNS OR ISSUES ON THE PROPERTY 

I am assuming you have had your inspections and that any repairs that need to be made between buyer and seller have been negotiated. Next, you will inspect the property one last time, usually the day before closing or at the latest the morning of closing. 

It’s possible there are a variety of issues, such as the sellers didn’t move all their belongings, something isn’t working, or the seller left a mess. When that happens, your realtor needs to contact the other realtor. You cannot wait until you are at the closing table because then you will lose all your negotiating power. Ensure that you have completed your final inspection of the property. 

2. REVIEW THE TITLE REPORT 

In order to ensure that the property is free of liens, the title company will run a search before closing. They will inform both the buyer and seller if they find anything. There may be a five year old lien that was never settled and the seller was not even aware of it. You may have to get a clear title if the prior closing wasn’t cleared of encumbrancers, so make sure you read that document when it’s sent to you by the title company and discuss any issues with the title with the title agent.  If this item is not cleared, closing may be delayed. 

3. TAKE CARE OF LAST-MINUTE CHANGES WITH THE LENDER. 

Communicate with your lender the week before closing to avoid any surprises. I always say surprises are only for birthdays. Being flexible and fluid here will help you avoid any delays because you didn’t respond to these changes or get back to your lender in a timely manner. After you fill out the loan application, you probably won’t have much contact with your lender until about 72 hours or more before closing. In most cases, underwriting has other requests and changes need to be made. When they call, make sure they are a priority.  Please answer any texts or emails right then, since if you don’t, the closing will likely not take place on the day you planned.  

Note that this is why it is important to choose a lender at the beginning of the house-buying process. You might not hear from your lender the week of closing, so reach out to them: Just remember that the squeaky wheel gets heard. Your motivation is to close on time, even if you have to chase them. In addition, your realtor will play a crucial role in bringing all this together, especially if the lender is on their team. 

4. REVIEW THE DOCUMENTS  

It is important that you review your documents in advance.  In most cases, you won’t be able to read hundreds of pages of mortgage documents (I’m exaggerating, but you know what I mean). You need to understand your mortgage expenses, including interest and prepaids.  At least three days before closing, you should receive your closing statement so you can review it carefully. 

It clarifies who’s paying what, so verify that the amount is what you are purchasing. Also verify that your deposit you made to escrow is correct; if you negotiated any concessions may be contributions from someone, is that showing on the closing statement.  Basically, if the closing statement is good, all the other documents should be fine as well. 

Do you know what the most important thing is to review? If your name or names are not spelled correctly so many times I’m closing and I can’t believe there is either a missed spelling or even naming changes along the way with marriage that causes the documents not to be correct. If you confirm your name ahead of time, it will speed up things and avoid re-printing. Now is the time to make changes so closing day doesn’t get delayed. 

 5. SEND YOUR FUNDS ON TIME 

After finding out how much you need to bring to closing, which is usually required to be wired directly to the title company, make sure it gets there on time.  Getting to close on time will depend on how long it takes for your bank to do a wire. Verify with your bank how long it takes for them to do the wire before closing.  A title company cannot give you keys until funding occurs. This means that your funds and the loan must be in the trust account at the time of closing. When the money is exchanged from buyer to seller, the keys are handed over to the buyer. 

At a closing recently, the buyer needed their money wired and everyone expected it to arrive as soon as we signed the documents. Instead, the title agent checked on funding and the money wire wasn’t there. It took about seven more hours for the buyers’ funds to arrive before the keys were handed over.  

If you think there will be a discrepancy, send more money to the title company and the title company will cut you a check at closing and refund the difference but at least you have the funds on hand to get the keys. 

6. IS YOUR DRIVERS LICENSE UP-TO-DATE? 

In order to verify your identity, you must have a current driver’s license at closing.  When you’re busy moving or selling your house, it’s easy to forget the most important thing in your wallet has expired. Right now, make sure your driver’s license is current because if it isn’t, closing is halted until you go down to the DMV and get a new one.  I know how frustrating that can be. 

The point is, to make sure you are prepared ahead of time.  You can avoid these problems if you have done your homework and have a great lender and realtor. There may be a few others, but they should be minor, and won’t delay your closing. When the deal is done, the buyer will get the keys, and the seller will get paid.  

Now that you know what to avoid let’s go watch this video to help with closing day.