Avoid Closing Delays With These Top 7 Tips

When you’re planning to move, be sure you understand how to avoid closing delays. Otherwise, they could have a domino effect on all your moving plans.

Buying or selling a home involves a mountain of paperwork. With so many moving parts, one small mistake can lead to frustrating closing delays.

The last thing you want is to hold up your closing. So, here’s how you can keep everything on track and avoid any bumps in the road.

7 Tips to Avoid Closing Delays

1. Be Honest When Applying for Your Mortgage

When you apply for a mortgage, your lender will ask for a lot of documents to prove your income, assets, and credit history. It might be tempting to fudge the details to get better terms—but don’t! Hiding tax liens or debts can backfire. Lenders are thorough, and if they find something you didn’t disclose, they could recalculate or deny your loan.

Mortgage approval problems are one of the most common reasons for closing delays. Being upfront about your finances from the start can help you avoid this. Learn more about Mortgage Matters

2. Don’t Make Major Changes to Your Finances

Right before you close on your home, your lender will do a final check on your income, debts, and credit report. Any big changes could mess with your loan approval and delay your closing.

Avoid taking on new debt or making any big financial moves while getting ready to close.

That means no new loans for furniture or appliances, no matter how tempting it is. Changing jobs can also raise red flags with lenders, even if your income stays the same or increases. Try to hold off on any employment changes until after you close.

3. Be Ready to Negotiate Repairs 

Ideally, your home inspection turns up little to no issues. But if it does reveal problems, especially ones needing immediate repair, the closing might get delayed. Avoid closing delays by using other methods of settling the repairs.

Whether you’re buying or selling, you can negotiate repairs. To keep things moving, have a plan in place if the inspection uncovers issues. The quickest fix is often for the seller to lower the price to cover repair costs. The buyer might ask for repairs to be done before the sale, but this usually takes more time.

4. Review the Title Commitment ASAP

Both buyers and seller can speed up the closing by reviewing the title commitment right away.

Any liens or title issues need to be resolved before selling, and this can be time-consuming. Sometimes, old financial issues that have been resolved still show up, so you may need to track down records or contact past lenders to prove you’re clear to sell.

5. Review Your HOA Documents Immediately

If you’re buying in a community with a HOA (Homeowners Association) or POA (Property Owners Association), review the documents as soon as you get them. Each association has its own set of rules, restrictions and bylaws that apply to the community.

When you close on the property you are accepting all these restrictions, so be sure you know what you’re agreeing to before you sign off.

Your Texas contract has deadlines in the Home Owners Association Addendum that buyer and seller have agreed to take certain actions – these deadlines are strictly enforced. 

6. Double-Check All Your Documents

Small mistakes or missing paperwork might not seem like a big deal, but they can cause serious headaches at closing. Even if you’re confident your documents are in order, it’s worth checking them multiple times. Go through everything in the days leading up to your closing, and keep your paperwork organized and safe.

Ask your real estate agent, attorney, or financial advisor to review everything as well. They know the ins and outs of the process and can help ensure you’re all set.

7. Avoid Closing on a Friday 

Closing on a Friday might sound convenient, but it can lead to longer delays if there are paperwork issues. With most offices closed over the weekend, you’ll have to wait two extra days to sort things out and finalize the sale. This can be frustrating when you’re so close to the finish line.

Instead, avoid closing delays by aiming for a midweek closing. If there are any last-minute hiccups, you can fix them quickly and reschedule for the next day. This way, you’re less likely to face the stress of a delayed closing.

The Bottom Line:

Review all your documents as soon as you get them, and have a backup plan ready if things don’t go as expected.

Closing delays are frustrating for buyers and sellers, but you can minimize the risk by being careful and proactive.

Your REALTOR® should stay on top of the process to help you avoid delays and close your home on time. But it’s good practice to follow up periodically with the mortgage lender and title company to make sure things are moving smoothly.