In our neck of the woods, we typically set closing dates 30-days out. If it’s a VA loan, I typically add an additional ten days. If I represent the Buyer and know that they have already turned in bank statements, paycheck stubs and tax returns to their Lender, I’m pretty comfortable with a 30-day closing.
Often we have domino closings. One Seller needs proceeds from his sale in order to purchase his new home. And the Seller of that home may need proceeds from that sale to purchase their next home. In these cases, if one domino doesn’t fall, it of course affects all other transactions.
Closings are delayed for a number of reasons, but it typically is associated with the Buyer’s financing. Although my Buyers DID have all their required paperwork turned in to their Lender before ever writing an offer, the VA appraiser did not inspect the property until eleven days after the appraisal was ordered. This appraiser had requirements that we didn’t anticipate and we rushed around like crazy trying to meet those requirements and schedule a re-inspect. This delayed our closing three days, and everybody had to reschedule movers and utilities. Huge hassle.
I was just notified of a closing delay for my Seller currently under contract. His Buyer doesn’t have six months alimony and Underwriting can not consider that as part of her income without the six-month track record. SOMEHOW Underwriting did not catch this until a week prior to closing; so this Buyer has switched Lenders and we are now looking at a week delay at a minimum.
This is not a tragic delay, but this also delays the closing of the home this Seller is purchasing. His Sellers are thankfully not purchasing another home, so the delay is not affecting yet another closing.
However, my client already had utilities transferred, movers scheduled, a furniture delivery set up AND took the day off work. By the time we found out Friday afternoon that the closing would be delayed, it was too late to change any of these well-planned appointments.
Real Estate Closing Delays – are they the norm?
Appraisers, inspectors and repairmen are all busy – and their schedules affect our timelines as well. A good Realtor is going to stay on top of deadlines and constantly check in with interested parties to make sure all is on track.
It’s difficult to explain to Sellers and Buyers that the closing date written in the CONTRACT is nothing more than a goal sometimes. Good communication between all parties throughout the transaction promotes the likelihood of a successful and timely closing – but there are no guarantees.
If you would like to have a Realtor in your corner who will work tirelessly to see that your real estate transaction runs as smoothly as possible, please do give me a call! 918-852-5036
Content written and published by Lori Cain.