What are the top six most common reasons that a house doesn't close on time?

These are in no particular order but I'm saving the ones that you can control to the end so let's get to it!


Today we're talking about reasons why you would not get to closing and how you can control some of those.

What are some of the reasons why you would not make it to closing?


One of the main reasons why homes don't make it to closing is because they don't appraise for enough. So the house doesn't appraise what's the next step? I mean are you going to get the loan if it doesn't appraise? The answer to that is no, not unless you make an adjustment to your offer via either the seller reduces the sales price to make up for the difference in price or you or the seller or both of you bring money to the table that takes up that amount.

Another one would be any repairs that were requested from your home inspection being done in time for closing when you do your final walkthrough. You're going to go through the home and look for things that may have changed but you're also going to look for things that were done as agreed. If they were not done as agreed and your walkthrough is the day of closing you're not going to go to closing unless you negotiate something out with the seller.

Be it them holding money in an escrow account with the title company to go towards those repairs, a price reduction or an extension for closing.

Another item would be if there are clouds on the title, meaning that it doesn't have a clear deed and it's not able to transfer until it's cleared up. That is a title company job and that's what they get paid the big bucks for. 

Now i mentioned before that there are things that are in your control obviously the appraisal is not within your control, whether the house has a cloud on the title or not is not within your control but...

 One of the top reasons that houses don't close on time is because the people forget to bring their id with them or make sure that that id has not expired. It is required on all closings that the buyers and the seller provide id so your id must be up to date if it is not, you need to go get it renewed.

 Another thing that would be within your control is drumroll please.... don't spend any money before closing guys!

 If you don't have the money to buy furniture then don't buy the furniture yet. You may have thrown the numbers off. Your debt to income ratio may not be what it needs to be in order for your lender to give you that loan.

So opening a new credit card opening any kind of debt adding to an existing credit card and making your debt go up higher or even co-signing with a family member (or anyone) can affect your credit and if your lender pulls your credit the day of closing and they see new items on your credit that were not there before they're going to reject your loan.  

That is the number one thing that you have control over right there guys...

 If you have to spend the money then wait until closing is over and then do it.


Lastly, and pretty much out of everyone's control until covid 19 is over a lot of people are on furlough and unable to make it to closing hence we have to do an extension. Just because the home doesn't go to closing today doesn't mean it can't go to closing next week .... unless you went and opened up new credit cards or added more debt to your debt to income ratio and your lender doesn't give you the loan that is well within your control.