After days or even weeks of house-hunting, you finally find the perfect home in Arlington. Your mortgage has been secured with the best lender, your offer has been accepted, and your home inspection has come off without a hitch. Congrats!
But why is the closing process taking so long?
According to a recent study, real estate closing times are getting longer- on average, it now takes 50 days. While this may seem like an eternity to an eager home buyer or seller in Arlington, there's a good reason why home buying doesn't happen at a fast pace. Here are a few things that slow down a closing:
- Funds- this is one of the most common reasons for a delayed closing and usually related to mortgage approval by a lender. A buyer can save time by obtaining a mortgage pre-qualification letter from the lender, something most sellers require along with an offer. But still remember that even with this letter it can take 30 days for the lender to complete its due diligence once an offer is made, so plan accordingly.
- Low appraisal - Before approving a mortgage, the lender needs an appraisal to value the home. So, if the appraisal's valuations turn out low, you will need to renegotiate the price of the property and rework the mortgage through the lender, which will take time.
- Lack of insurance- Waiting until the last minute to secure homeowner insurance slows down a closing since it's often required in the terms of the mortgage before you move in.
- Short sale- This is when a home is sold at a price lower than what the owner still owes on the mortgage. In this case, the owner must convince the lender for the original mortgage loan to accept a pay-off lower than the remaining balance on the mortgage. This can be a difficult task and can potentially delay the closing process.
How you can speed up a closing
- Resolve title problems- Sellers should ensure that they resolve any problems related to the title of the property. Avoid any red flags by informing the title company about any tax liens against the home or other claims against the property.
- Address repairs- After a home inspection, there are usually so many repairs that need to be done before closing. And while a seller can make these repairs, it much faster to just reduce the price or give the home buyer tax credit so as to make the repairs at his/her own time.
- Communicate- It is always much easier for buyers to raise any questions and concerns they may have about the closing documents immediately with their Realtor® or attorneys.
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