How to Solve 3 Last-Minute Closing Obstacles

Buyer, seller, Loan Officer, Realtor… no matter what role you play in a real estate transaction, closing delays are a nightmare. Worse, they’re a nightmare that can happen to even the most well-prepared people. Here are three common obstacles that may crop up at closing time — and what you can do about them.

  • The home isn’t ready. Maybe the home inspection uncovered a serious problem that can’t be resolved quickly — or maybe what should’ve been a quick repair just isn’t getting done on schedule. Sometimes the seller hasn’t finished packing or moving, or items that were promised in the contract aren’t present. Rather than going to the trouble of extending the closing date, this is usually a good time to renegotiate based on the new information. Repairs taking longer than planned? Set up a repair escrow. That washer and dryer promised in the contract went mysteriously missing? If the items can’t be returned, the seller can compensate for their replacement.
  • The seller isn’t ready. If the seller is moving into a new home and something happens to prolong that timeline, they may not be ready to vacate the property as early as planned. It’s easier to renegotiate move-in dates than to re-negotiate closing dates, so if possible, try the former before you attempt the latter.
  • Financial hiccups. Whether it’s one of those extremely common lender delays or something more serious, like financing falling through or an appraisal coming back too low, financial snags can bring closing to a grinding halt. For lender delays, you may need an amendment to provide more time for approval. If, despite pre-approval, the buyer’s mortgage loan falls through, it’s time to find a new lender ASAP. And in case of a low appraisal, the purchase price may need to be revised to match.

You can’t prevent every problem, but you can be prepared to tackle them should they come up! Closing delays happen — make sure you know what you’re going to do about them when they do.

The Jim Passi Team at Citywide Home Loans proudly serves Illinois, Wisconsin, Michigan, Indiana, Georgia and Flordia. If you are looking to buy a home or refinance, we have you covered. Apply Now to get started.
Jim Passi - Citiwide Home Loans

Jim Passi
Regional Manager
NMLS# 158000

1284 West Northwest Hwy.
Palatine, IL 60067
Mobile: 847-899-1813
Email: jim.passi@alamedamortgage.com

We had our closing yesterday

We had our closing yesterday and everything went very smoothly thanks to Jim Passi and his team. It took us over a month to get prepared for this huge event: buying our first home. The one thing we are 100% sure about is that we chose the right lender’s team to work with. These guys are real professionals! They are so quick to respond to every question, explain every aspect you are asking them about.
The best and luckiest choice for the first time homebuyers and, we are sure, best team if you move for a tenth time!
Thank you so much for the great work you have done for our family!
Ivar and Natasha

Ivar and Natalia