About half of all real estate closings don’t happen on time. This means a lot of stressed out buyers and sellers since they can’t close on time. There are many reasons for this and many are beyond the control of the buyer, seller or the agents:
- Underwriting requirements are significantly more strict which means lots of details to take care of. I had a closing last week and the lender uses an outside service to verify previous job history. They had to verify a job my buyer had over a year ago. He quite and moved on so the employer had no reason to ever respond. Now we are being help up at closing because we are waiting for this to be verified. We ended up having it waived by the underwriter but still a headache.
- Appraisal issue. The appraisers are more skittish then ever and it is not uncommon for homes to not appraise, which puts a real brake on a transaction.
- The lender just not doing there job on time. Some lenders can be swamped and just don’t close on time
- Extra layers of review by the lender. Due to tighter loan requirements loans have more reviews. The originator starts the loan, the processor handles the paperwork, the underwriter reviews it and approves it, the closing department works the closing and it still has to go thru audit. Having an experienced loan originator who knows how to work the system can make the difference between closing on time or not.
No matter how strong the buyer these issues can still crop up. If you are a seller I would be extra careful about agreeing to possession at closing, especially if a delay will cause a lot of problems. I had a listing and the buyer became irate that we didn’t trust him about closing on time.It pays to be prudent and not emotional. It may not be the buyer who is at fault but it still means the problem may occur.