Take the Worry Out of Financing with an Idaho Hard Money Loan
If you’ve ever bought or sold real estate, you have a good idea of what a roller coaster ride it can be financially and emotionally.
Even in the best of scenarios – you’ve found the perfect property, your offer has been accepted, you are anticipating keys in hand on an agreed-to closing date – there can be bumps in the road. And when you’re investing in real estate, any hold up or snag is going to be troublesome.
Real estate “closing dates” can be elusive. What exactly does closing mean, and what can – and should – you really expect when it comes to contract dates?
What is a Real Estate Closing Date?
A closing date is the final step in a real estate sale transaction when property ownership officially transfers to the buyer.
A seller and buyer may agree to a closing date in the initial purchase offer. And closings do sometimes occur on their targeted dates. However, the day you ultimately close is rarely as simple as circling a date on the calendar.
Here are eight things that may delay your closing date:
- Appraisal problems: An appraisal may come in under the offer price or it may identify needed repairs. Closing can be delayed if the buyer and seller are unable or unwilling to renegotiate, or the lender requires that repairs be completed before the loan is approved.
- Title trouble: A title search may uncover unexpected issues. Title defects like delinquent property taxes or utility bills, previously undiscovered wills, bankruptcies, spousal and child support liens can delay closing until they are resolved.
- Survey Situations: Boundary lines may be questioned when an instrument survey is conducted. An encroaching fence or invasive landscaping between neighboring properties might require negotiation or consent – and delay closing.
- Closing Concerns: Documents prepared for a real estate transaction can include errors, disparities or inaccuracies that must be addressed and corrected before closing. Both the seller and buyer should carefully review all closing figures and documents.
- Additional Documents: Upon final review of a loan, lenders sometimes require further information or documentation just before closing. Questions or issues that need explanation or greater detail can delay loan approval and closing.
- Undone Repairs: Home inspections help identify needed repairs that the seller and buyer can then negotiate prior to purchase. If a seller has not completed property repairs as and when agreed to, closing can be delayed.
- Final Walk-through: Walking a property just before closing is an important chance to ensure repairs are complete as agreed, utilities and systems are functioning, and all is in order. Anything lacking or amiss could result in a delayed closing.
- Team Timeliness: The seller and buyer might be committed and organized. But the speed of a real estate deal comes down to the transaction team: From real estate agent to appraiser to lender to attorney, their timelines and availability impact on closing.
- Mortgage Denied: If you’re on the seller side, you might find closing delayed because a lender has declined a potential buyer’s loan application. (Don’t give up just yet; buyers have steps they can take when denied.)
Closing a real estate transaction takes patience and perseverance. Knowing the potential reasons for closing delays can help you better prepare when investing in real estate. Hang in there. Closing will come! And when papers are signed and ownership is transferred, it’s an exciting moment for both buyer and seller.
Finance Your Real Estate Investment with a FAST Idaho Hard Money Loan
There’s one thing you can count on in real estate to be timely and stress-free: hard money loans. Unlike banks and conventional lenders, private money lenders do not require a lengthy loan approval process. Gregory M. Russell has partnered with Idaho real estate investors for 30 years, helping them to achieve their investment goals, quickly and efficiently. Our hard money loans are equity-based, and our loan request and approval process is streamlined. So, you can have money in hand in as little as ten days. We’re here to answer your questions; call 1-888-477-0444. Or complete our simple online loan request form today. Keep your cool during closing knowing your financing is in order and in hand.