What is a Closing Date and What Happens When There are Delays?

When purchasing real estate, a closing date is the last step in a transaction. It is when the final considerations involved in the real estate transaction take place and ownership of a property is transferred to the person making the purchase. This date is also agreed upon between the seller and buyer, and the latter party must pay out the remainder of the balance required before receiving the keys to their new home. 

What happens if there are delays?

There are several pitfalls that can occur on the closing date, and knowing them can help you prepare for any unexpected surprises. For one, mortgage delays can happen before the closing date, resulting in a lack of the required documents and funds. In order to prevent this, you can recruit the help of a lawyer to ensure that all of the necessary mortgage documents are prepared and delivered before the deadline. 

Another potential pitfall pertains to mistakes in the mortgage documents. These errors can lead to misunderstandings about the details and even the mortgage itself. To prevent this, you can consult with a professional who can help you carefully go over and review the important documents and paperwork. Don’t be afraid to ask questions if you are unsure about a certain form. 

Don’t forget to think about any last-minute issues that can occur during final inspections. Should any issues occur, then make sure that your real estate agent works with you and the seller’s agent in order to more seamlessly resolve them. For example, you can ask your real estate agent to help negotiate a credit when it comes to the closing fees. 

What are some other ways to prevent delays?

There can also be some financial delays either leading up to or on the closing date. In order to prevent these hiccups, you can avoid changes to your financial situation. This can include, for example, signing up for a new loan for a vehicle. Make sure that any changes you are considering would not significantly impact your crediting rating. 

In addition, keeping your job is another way to prevent delays. This goes hand-in-hand with changes to your financial situation because a change in a job can mean a difference in your credit report and level of income. As an example, transitioning from a full-time position to part-time employment is not ideal because of the instability the action may cause.