Buying a home or condo in New Jersey is a stressful process, but the final step, closing, can be delayed for a variety of reasons. Over our decades of experience doing real estate closings, we know what can prevent you moving into your new home as quickly as possible. Below are some common issues that can cause delays and how Riley and Gutman can help you avoid them.
1. Title Issues: Uncovering the Past
The title to your property is a critical component of your real estate transaction. A clean title confirms that the seller legally owns the property and has the right to transfer it; however, issues with the title, such as unknown liens, disputes over ownership, or unpaid property taxes, can slow down or completely derail the closing process.
How to Avoid It: A thorough title search is essential to uncover any problems before closing. A title company will conduct a thorough title search to identify any potential issues with the property’s title. If any issues arise, they and your attorney quickly work to resolve them, whether it’s through negotiation, obtaining legal documentation, or other necessary steps. Their proactive approach minimizes delays, giving you peace of mind that your new home comes with no legal baggage.
2. Financing Problems: Lender Approval Delays
Securing financing is often one of the biggest hurdles in the home-buying process. While pre-approval from a lender can speed things up, many buyers face delays in finalizing their loan. Lenders may require additional documentation, reappraisals, or further checks on the buyer’s financial situation. If these issues arise late in the process, they can significantly slow down your closing.
How to Avoid It: Maintain clear and consistent communication with your lender throughout the buying process. Being prepared with all necessary financial documents—like tax returns, bank statements, and proof of employment—helps avoid last-minute requests that could cause delays.
3. Inspection Surprises: Dealing with Property Condition Issues
Even if a property appears to be in perfect condition, a home inspection may reveal issues like structural problems, pest infestations, or faulty electrical systems. These findings can lead to renegotiations between the buyer and seller, ultimately delaying the closing date.
How to Avoid It: Get a thorough inspection as early as possible. (Plus, we recommend you have an oil tank sweep done to make sure there aren’t any old oil tanks that could cost you a lot of money down the road because of leaks, etc.)
4. Liens and Judgments: Clearing the Way for Sale
Liens or judgments on a property can significantly delay the closing process. These could include unpaid taxes, child support, or contractor liens for work previously done on the property. Until these claims are resolved, the property cannot be sold with a clear title, which means the closing is put on hold.
How to Avoid It: Contact a title insurance company to find all liens and judgments associated with the property and resolve them, so you’re not stuck in limbo waiting for these matters to be resolved.
5. Delays in Appraisal: Getting the Property’s Value Assessed
Lenders typically require an appraisal to ensure the property’s value aligns with the loan amount being requested. Appraisal delays can occur due to high demand in the market, difficulty in scheduling the appointment, or discrepancies between the appraised value and the sale price.
How to Avoid It: Schedule the appraisal as soon as possible once an offer is accepted. If the appraisal comes in lower than expected, your real estate agent, attorney, and you can negotiate a fair solution, whether through a price adjustment or revisiting the terms of the loan.
6. Missing or Incorrect Documents: Keeping the Paperwork Straight
The closing process requires a multitude of legal documents, including the purchase agreement, mortgage documents, and title transfers. Missing or incorrectly completed paperwork can cause substantial delays, pushing the closing date back until everything is corrected and signed.
How to Avoid It: We pride ourselves on their attention to detail and their ability to handle the paperwork seamlessly. Our team carefully reviews all documents, ensuring everything is in order before the closing date. We also keep clients informed of what they need to sign and provide step-by-step guidance through the documentation process to avoid any mistakes that could delay the closing.
Real estate closings are often more complicated than they seem, and delays can quickly turn an exciting process into a stressful one. By taking a proactive approach, you can maximize the chances of you moving into your dream home as soon as possible. We would be happy to help you, putting our decades of experience to work for you.