4 Common Problems Homebuyers Can Avoid at Closing

The process of buying a new home can be both exciting and daunting for most people who are inexperienced in real estate investing. Having your closing day delayed because of last-minute problems is the last thing you want to encounter on your home buying journey.

Here are four common problems homebuyers face and how you can avoid them:

#1: Documentation

Whether it’s a misspelled name or a transposition of numbers in an address, there are a myriad of errors in closing documents that can bring everything to a halt. You can avoid this by reviewing every document as far in advance as possible, and having your attorney review them as well. Pay close attention to loan documents and question anything you don’t understand.

#2: Money

Some homebuyers arrive at the closing only to find that the funds for the purchase have not been transferred from their bank to the closing agent. The best way to ensure that funds clear in time is to send them via a wire transfer. If you do not know the exact amount needed, send a surplus and you’ll get a refund.

#3: Delivery

Your lender will send the final loan documents to the agent, but sometimes they don’t arrive on time. To avoid this, speak with your agent well in advance of your closing date and ask if everyone involved has everything they need. Contact your lender a day or two before your closing to verify that they have cleared the loan file to close.

#4: Clear Title

If the title company discovers there is a lien on the property, this will delay closing. Be sure you request a copy of the preliminary title report and review it for potential problems. Remember, you are not covered by title insurance for all matters pertaining to title.