What Factors Commonly Delay Knoxville Closings?
Closing day is a big day for all those involved in a transaction.
It’s a day that everyone looks forward to. Buyers get possession of the home. Sellers get their proceeds from the sale.
When the closing day gets pushed back, this can cause many people involved in a transaction to get irritated. Sometimes, it can even cause a deal to fall apart.
In this post, we’ll cover what factors commonly delay Knoxville closings.
Buyer Makes Major Changes
When buyers make major life changes, like changing jobs, in the process of closing on a home, they throw a major wrench in the system, particularly when they don’t mention this to their mortgage company. When you’re in the process of buying a home, you’re under great scrutiny from the time that you apply for a mortgage until you close on the home.
Don’t make the tragic mistake of making a major life change, like quitting your job or changing jobs, in the process of buying a home. Loan approval is based on the original information that you gave when you apply for the loan. So, if you change this in the middle of the loan process, your mortgage company will have to go back and re-verify this. If you change jobs without telling them, they may not find this out until they do your final verification of employment a few days prior to closing. By then, you’re a few days away from closing and could cause a major delay in closing because you failed to communicate.
If at all possible, avoid making any major changes to employment while applying for your loan. If for some reason this cannot be avoided, be sure to tell your mortgage company sooner rather than later.
Buyer Assumes They Have Mortgage Approval
A pre-approval doesn’t guarantee loan approval. Unfortunately, many buyers think that putting in their loan application is just a formality and that loan approval is guaranteed. That’s not always the case.
Don’t make the mistake of assuming you’ll get approval. You may be required to submit additional paperwork or provide more documentation. When you’re required to do this, be sure that you take care of getting it to your lender as soon as possible. When you delay, you could delay closing.
You also should remember that any changes to your credit or your debt still matter as you await loan approval. So, be sure to not make any big changes to them.
Buyer Makes Large Purchases
Loan approval can be a tricky thing. When you make significant changes to your credit or debt, it can sometimes throw a wrench in the whole loan approval process. Changes to your credit score or overall debt can hinder loan approval, especially if a buyer is on the border or loan approval.
During the time you apply for a loan, don’t go spending money to buy a new car, buy appliances, or invest in new furniture. If for some reason you do need to make a large purchase, be sure that you check with your loan officer first. They can better advise you the best way to handle the purchase.
Buying your first Knoxville home is an exciting and overwhelming experience. If you’re like most first-time buyers, you may not be sure where to start. If there is anything we can do to help you in your home search, please do not hesitate to contact us. We’ve helped countless homeowners buy their first home and we’d love to do the same for you. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com.
Are you ready to start your home search? Visit our home search page to get started today. Or, be sure to keep up with our Knoxville First Time Home Buyer’s Blog to keep up with the latest information about buying your first home.