You’ve listed your home, you’ve signed the contract and now you’re ready to move on…aren’t you? It’s still a few weeks until your closing date, but there are still a few things that can go wrong between now and then. Here are some things that you need to watch out for to make your closing as quick and easy as possible.
A warning sign can be when your buyer wants to adjust, amend or extend deadlines, without losing their earnest money. This can be a big clue that they are planning to back out of the deal and keep their earnest money in the process. For example, one buyer had a property inspection due date of January 18th. About one week prior, they gave the seller (through their agent) a very plausible story as to why they would not be able to meet that deadline and asked for only a few day’s extension. The husband felt they were going to back out of the deal and didn’t want to extend. On the other side, the wife felt they should make things as easy for the new buyers as possible, after all, didn’t their want their house to close and the sale to go through? So the couple agreed to and signed the extension. The next day after receiving the paperwork, the buyer cancelled the deal and walked away with their $1000 in earnest money. Legal? Yes, at least in this case. Honest? Not so much. However, it can be a big clue that your buyer may not actually end up completing the closing.
Unless your buyer is paying all cash, their mortgage broker or loan office will be doing a lot of the heavy lifting after the initial offer is signed. Your real estate agent can work as your liaison or go between to help facilitate expectations, information and contracts.
While you may not know their personal details, a buyer who is “pre-approved” is not completely approved until the loan in closed. Many underwriters will end up wanting additional cancelled checks, statements, etc., showing seasoned funds or other documentation. Sometimes these end up as a deal breaker and you end up with your property back on the market.
As frustrating as this may be, your real estate agent can help guide you through the process, selecting only the best when you have multiple offers. Rely on their experience and take some of the headache out of the process. After all, you have a home to close on!