There are many different reasons for closing delays in Massachusetts home purchases. Delays can be more common than you think, and despite common belief, it’s not always the buyer’s fault. Here’s a look at several common reasons that you may encounter in your purchase or sale of a home.
Appraisal Delays
Lenders order appraisals to determine a property’s market value. This provides assurances that the amount being loaned to a buyer is justified by the value of a property. Due to government regulations, appraisers must be independent and not associated with the lender.
Appraisers can be delayed in scheduling appointments to see a property and/or in completing the appraisal report. Unfortunately, this is out of the lender’s and buyer’s hands. All parties must simply be patient, especially during busy real estate seasons.
Title Issues
Title issues are another one of the main reasons for closing delays in Massachusetts home purchases. During the processing of a loan, lenders order a title search. This involves pulling documents from public records and tracing ownership back for many years. Issues can vary greatly from missing mortgage discharges to mistakes in property deeds. Some title issues are quick to resolve while others can be more time consuming. In either case, the time needed to resolve issues may delay a closing.
Buyer Qualification Issues
Mortgage underwriters perform an extensive review of a buyer’s finances to qualify them for a mortgage. They will often request specific documentation from buyers. If a buyer takes too much time to gather that paperwork, it can lead to closing days. Some delays are not necessarily a buyer’s fault as they ay require information from third parties such as the IRS.
More Reasons for Closing Delays in Massachusetts Home Purchases
The above are just 3 major reasons for closing delays in Massachusetts home purchases. There are many more possible reasons for delays. Every transaction is unique and delays can be completely unexpected. The key to minimizing delays is to maintain open communication between all parties.
