Beebe and O'Neil

Closing day can bring surprises

After house searching, negotiating on price and signing a purchase agreement, soon-to-be new homeowners in Connecticut may think everything is smooth sailing once closing day arrives. However, there are certain issues that may arise and cause problems with the final closing. Potential owners should be aware of some of the common issues so they are not taken by surprise or can even prevent them from occurring.

According to FindLaw, financing issues is one of the reasons there are problems closing on a house. If any information is incorrect, whether intentionally or by mistake, on the mortgage application, the bank will probably withdraw the loan. Also, if the appraisal amount comes in at less than the amount of the original purchase agreement, the potential owners typically need to come up with cash to cover the gap. If there is a dip in a lender's credit during the time between approval and closing, the bank may withdraw the loan offer.

During the inspection process, issues may crop up. It may be a minor problem or major problem, such as with the electrical system or a termite infestation. These may delay the closing, or the buyers may choose to walk away from the deal.

Realtor.com discusses that issues with the title can also interfere with closing. Some title problems include:

  • Unpaid HOA dues
  • Past liens
  • Claim from a relative

Real estate experts also recommend asking the lender or agent how the financial institutions prefer to receive financial funds to prevent a hiccup on closing day. Some prefer them through an electronic transfer, while others prefer a cashier's check.

 

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Beebe & O'Neil
PO Box 6002
335 Washington Street
Norwich, CT 06360

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