- Survey shows an encroachment or other problem
- Lender cannot clear borrower's conditions, e.g. a large collection cannot be paid off
- Borrower creates a problem on his credit, e.g. makes a large credit purchase of furniture
- Casualty loss on the property itself, e.g. wind tears off roof shingles, flooding of ground floor, fire, ...
- Title search reveals a new lien on the property, that creates a shortage the seller cannot cover
- Title reveals an heirship problem, especially in estate sales
- Title discovers a Federal tax lien is filed against the property
- FInal walkthrough inspection just before closing reveals previously hidden damage or new damage or theft by someone or removal by seller of real property, such as installed cabinets
Admittedly, all of these are rare. But, I have experienced all of these prior to closing but after appraisal and inspection (they're experience builders). Dealing with them usually takes both parties to compromise in some way, but certain of them just can't be solved. All of them will cause delay, at a minimum.
How did those items come back? Did your inspection items come back clear? Do you have anything that you need to get taken care of before closing? Are those things being handled? What about the appraisal? Did it appraise for at least the loan amount? Do you have a loan, or are you a cash buyer?
If you have are getting a loan, you'll want to find out what are the conditions after it's gone through underwriting? How long will it take to meet the conditions? Can you meet all the conditions? For example, one time we had clients who had a $10,000 back tax bill that they didn't know about. It came up as a condition at this point in the loan process. They had to settle the tax bill because the mortgage would become subordinate to the Federal tax lien if it wasn't taken care of. The clients had money they were going to put down on the home and instead paid off the tax bill and put less money down on the home and rolled more closing costs in. Like Alan said, this is where the biggest exposure lies until the loan is closed and funded.
Did they get the survey back? How does it look?
The title company will work up the HUD1 for you. It will have a summary of all the closing costs and who's side - seller or buyer side - it's supposed to be on. Sometimes there will be a glitch on it that will need to be corrected. For example, if you paid for the appraisal out of pocket and they have that down still as a buyer's side item, they'll need to credit you for it because you've already paid for it. You are supposedc to have the HUD1 at least 24 hours in advance to review for reasons like this, but the title company can't always work it up that far in advance depending on the number of closings going on at the time, how quickly they got title request, etc. It's nice if your loan officer can be available via phone during the closing in case there are questions that pop up.
Are you closing in the same location (state) that the property is in? In other words, it's not a mail out? If so, sometimes Fed Ex does not deliver when you absolutely positively have to have it overnight! ;) You can not fund until the seller signs the docs, too. This could cause a stall.
Is it a short sale? If so, there is no hurrying a bank. We once closed on our side on a short sale on Tuesday and then they Fed Ex'd paperwork to the bank who didn't sign the docs until Friday at 5:30PM. We had pre-funded on Tuesday night, so they already had the money. You can't get keys until you are closed on both sides and funded. Our buyer had movers scheduled for Saturday morning, so she got to move in by the hair of her chinny chin chin. Whew!
These are just some of the things that come to mind off the top of my head. Talk to your loan officer and your agent. Make sure they keep you informed and tell them you just don't want any surprises.
Hope you have lots of happy memories in your new home!
Or at walk-through certain items may be missing that were supposed to be left behind. I don't know what the custom in Dallas is, but, for instance, in Virginia typically the appliances stay with the house. You'd hate to do a walk-through and find all the appliances missing...or all the stainless steel appliances you loved when you made an offer on the home replaced with 10-year-old used appliances.
Financing's the big thing, though. One time, I was buying a condo. I'd lived in my previous one for 18 months. I'd packed; the moving van was scheduled. Then the lender calls my agent and says my loan's been disapproved because they didn't believe I was really going to live there.
Just a suggestion...stay on top of your financing. Today's underwriters and investors are very skittish and are known to change the rules at the last minute. This is probably the biggest obstacle after the customary property conditions like inspections and appraisal.
Without making assumpitions that you have already reviewed these documents...make sure the Title Commitment is without exceptions in Schedule B and C and that the Survey shows no encroachments etc. Any repairs that have been agreed to must be done prior to closing so be sure and schedule a walk-thru a couple of days prior to closing to make sure they have been completed.
There are other areas to be aware of but without asking you questions to determine if they apply, I will leave it at this. Just keep a sharp eye on financing...this is where you biggest exposure is.
Hope this helps.
Alan Wynn - Realtor
Like NO ONE Else!
Has the homeowner made the required repairs?
Have you arranged for your homeowners insurance? Be sure the foundation and roof are ok and there will not be a problem getting insurance. If there are any hail storms between the inspection and closing, be sure you send a roofer out to insure there was no damage.