Buying a home is a dream of most people, so it’s natural to be quite excited once closing day rolls around. However, be aware that closings can sometimes be rife with issues, some of which may prevent you from securing the home of your dreams. Zillow.com explains what can go wrong during the closing and how you can avoid it.
Problems with the title search
The title search looks for any issues linked to a specific property, such as a tax lien or lawsuit. When a problem is discovered, it must be rectified before you buy the property or it becomes your responsibility. You can be apprised of any issues by reading the preliminary report, which is issued by the title company, in full before moving forward. If you’re dissatisfied with the findings, talk to the seller about finding a suitable resolution. You can also purchase title insurance, but keep in mind it will only apply to any problems going forward.
While misspellings seem like a minor error, they can delay your closing and may even end up costing you money. The best way to prevent errors is to read over all documents thoroughly, including the ones issued by your lender. Check typos, misspellings, transposed numbers, and other inaccuracies. Review documents as soon as you receive them to ensure any problems can be rectified in a timely manner. Also, if you have questions don’t be afraid to reach out to your lender or the title company for clarification.
The final walk-through serves as an assurance to the home buyer that the property is in good condition. If you notice any problems, it’s crucial that you act fast to fix them. This usually entails working with the seller to cover damages occurring to the home since the initial home inspection took place. This can entail increasing the seller’s portion of the closing fees or placing money in escrow to make the necessary repairs. No matter what, don’t be pressured into buying the home until all issues are properly dealt with.