The idea that the closing will take place on the day specified in the real estate purchase contract is a widespread one held by both buyers and sellers. It’s nice when closure occurs on or before the target closing date specified in the purchase agreement, but it’s not always achievable.
A real estate property closing may be postponed or cancelled for various reasons. Delays can occur given the large number of stakeholders entangled in every flourishing real estate deal. Below are some of the top reasons that could complicate the closing date of your real estate transactions.
Delay in Evaluation and Research by Lenders
One fundamental demand for bank loans. When you want to purchase a property is having it valued by a licensed, professional appraiser or an impartial third party. Banks often utilize appraisals to inform their loan decisions based on a proportion of the property’s value.
The bank may also request a survey to ensure the documents match their location, among other things. This might result in further delays.
The Lender Requires Title Insurance
A mortgage commitment from a buyer implies that the funds have been approved and the closing can go through. However, there are occasions when a lender wants more paperwork.
Title insurance is an insurance product that provides the buyer with an additional layer of assurance. Hence, they know how they are covered if any mistake or omission is made during the closing process by any of the parties involved. Most lenders demand it when you take a loan from a bank or mortgage business. It is a one-time expense that safeguards you for the entire time that you own the property and will help to shield you from unforeseen title lawsuits.
Issues Relating to Instrument Survey
A Louisiana real estate lawyer will review an instrument survey as part of their duties. A simple illustration of the plot of land a house is located on might serve as the definition of an instrument survey in real estate. If there is a disparity in the instrument survey, real estate closings may be postponed.
Boundary line conflicts are one of the most frequent causes of differences in instrument surveys of real estate. An illustration of a boundary line encroachment would be a neighbor’s fence on the property of the house being sold or the other way around.
Delay with Writing Mortgage Contracts
Simply because of the need to obtain the personal financial information that lenders need to feel comfortable loaning your money, the mortgage procedure typically takes the longest and causes the most hassles for buyers. Lending money to mortgage businesses is not always simple.
It would be much easier to get in touch with lawyers with expertise in Louisiana’s real estate closing process to ensure the smooth sailing of your real estate transactions. Do not hesitate to contact the attorneys at Cornish Law LLC and get your real estate deals closed as fast as possible.