Surprising Things That Can Derail A Closing

Dated: July 19 2018

Views: 71

Surprising Things That Can Derail A ClosingOnce you and the seller have negotiated an offer and you’ve been pre-approved for a mortgage, you might think that you are in the clear as far as your closing goes. However, that is not always the case. Many surprising things can put a halt to closing. Some may ultimately stop the closing altogether while others could simply cause a delay.

Here are a few unexpected things that can derail a real estate closing:

A Job Promotion 

While you might know that changing employers is one way to interfere with the closing, another deal-breaker can be switching positions with your current employer. If you are a salaried employee and switch to a non-salary commission job, for instance, you could be looking at a problem when it comes to closing on a house.

Whenever you have any change in employment, even if it is with the same employer, most lenders will require a two-year history. A new job title could be a problem at closing — even if the new position pays more money. In some cases, the lender might not be able to include the income from your new job. If so, you could quickly end up not being qualified for the loan.

Therefore, it’s best to avoid any change in employment until after closing even if it is with the same company. Talk with your mortgage finance professional regarding your personal circumstances before making any employment changes.

Last-Minute Requests for Documents

It is easy to assume that lenders will already have all the documents that they need by closing, but that is not necessarily the case. Lenders can become overwhelmed with work, especially during a hot real estate market. Lenders will sometimes realize that they need more information last-minute.

They might ask for a canceled check, copies of your rental agreement, current pay stubs or other items. If you don’t have the documentation handy, it could cause your closing to be delayed or even completely canceled if you can’t produce the requested information.

To avoid this situation, make sure that you consistently communicate with your lender throughout the loan process. 

A Delayed Transfer 

You will most likely need cash at closing. If you are relying on your bank to transfer funds right before closing, then you might be shocked if the transfer falls through at the last minute. Bugs in the bank’s system or other issues could affect the transmission.

Therefore, make sure you time your transfer to reach you or your closing agent a couple of days before closing. 

Closing on a mortgage is something that you don’t want to derail. Avoiding the above mistakes will help ensure a hassle-free closing transaction. 

From pre-approval to closing, remember that you can count on your trusted mortgage professional to remain committed to your success throughout the entire home buying process.

For more info visit: http://www.bondstreetloans.com

Blog author image

Jessica Rojas

Jessica Rojas is an extremely dedicated and committed real estate agent who has been working in the Real Estate field since 1997. She became a licensed real estate agent in 2009 as a sales associate ....

Want to Advertise on this Site?

Latest Blog Posts

Selling Your Home These Easy Upgrades Can Up Your Curb Appeal

Curb appeal is extremely important when you’re selling a home—and it’s especially important now, in the midst of the pandemic, when the exterior of your home might be the only area

Read More

This Fall Cozy Is The New Black In Home Decor

Autumn is here! And while fall is always a cozy time, this year, coziness has officially emerged as one of the biggest interior design trends of the autumn season. A recent article

Read More

6 Lessons In Real Estate That Everyone Should Know

Lesson #1 A man is getting into the shower just as his wife is finishing up her shower, when the doorbell rings. The wife quickly wraps herself in a towel and runs downstairs. When she

Read More

Top Reasons To Sell Your Home During The Holidays

Between holiday travel, holiday parties, and hosting out-of-town guests, the holidays can be a busy time of year. And if you’re selling your home, you might be tempted to take your property

Read More