A recent study in the US real estate statistic said that the average householder will spend around four months searching for a home and looking at an average of twenty properties before deciding on a home. If it is financing, the average time to close on a house is about six to eight weeks. It is necessary to find the best mortgage terms when closing a deal, as well as an attorney who can help you with any legal issues when buying a home. When you are selling a home, buying a home or closing on a home will involve a lot of factors that will depend on the location of the home. In order to reduce the timescale, buyers and sellers of the real estate will benefit from:
- Know exactly what they are looking for in a house
- How much they can afford
- Asking of a realistic price
- Choosing a good real estate agent
- Obtaining an appropriate mortgage lender
- Hiring an attorney that dedicates to finalizing the closing process as quickly as possible
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Do your homework.
In order to get an estimate for the closing process, you should do your homework properly and find a professional realtor. Ask everyone you know in order to get a positive referral on an attorney. You should remember that the financial closing costs are paid by the buyer and by the seller. Sometimes the seller pays for the expenses and sometimes the buyer pays for it. In order to minimize the closing expenses, the realtor can help negotiate buying or the selling costs on their client’s behalf. Some of the fees are set by the US law and can’t be negotiated.
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What are the reasons a closing process of buying or selling a property can be delayed?
There are many reasons why this can happen. Escrow is the 30 days between a purchase on a property and having the keys handed over. In this time, there can be many reasons why the buyer or the seller can cause delays. Here are the most common problems that can happen and here is how you can prevent them.
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Termite or pest inspection.
Most of the mortgage lenders in the US want a pest inspection in order to make sure there is no real damage in the house. There are many insects, termites or carpenter ants can quickly eat through your wood and leave an infested and unstable house. Pest inspections are not that expensive, the usual cost is around $100 or less. If there is problem in the house and don’t fix it in time, it could cost the deal to fall.
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An appraisal.
The investor will have the property appraised so that they can protect their investment. The Mortgage Institution will most likely want to make sure the home you are selling is worth what the buyer is paying for, if anything happens. If an appraisal is too low, the seller needs to reduce the asking price or the buyer must pay cash for the difference. If this does happen, you should get a second opinion from another appraiser and realtor.
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Getting cold feet or the seller backs out.
Your realtor must make sure that there is a clause in the contract that specifies that a buyer or seller can back out if the deal without a penalty. This can be not waiving a contingency or not meeting a certain deadline. If the buyer later decides after waiving the contingency that they won’t be doing the purchase, it can be because they found a better deal or a better property, the money will be lost. This way the seller can compensate for the time the home was off the market. In the other hand, if the seller decides to back out of the deal for whatever reason, the buyer will have the legal right to collect damages from the seller.
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Make sure you get approved for finance.
One of the main reasons why property deals fall through is that buyers don’t get pre-approved for finance. Many buyers don’t have a written loan commitment from a bank or mortgage lender before they submit an offer. In the other hand, seller should not accept offers if they haven’t been approved for finance. It can make the closing lead a risk particularly if the buyer lied on the application loan form. If the interest rate does increase sharply, it will make a buyer lose their job or the credit score will go down their property offer could be in danger.
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A home is not insurable.
If the seller has had an insurance claim in the past on their property, it should show up on the insurance records. There are a lot of insurance companies that refuse to insure a property if it is too much of a risk to insure. If a home is not insured, a buyer won’t be able to make an offer unless they pay in cash.
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The closing process.
When the offer is accepted on a home, the inspections are complete and all the financials are in order, the next step is closing the process. The settlement day includes the formal and legal requirements of transferring the ownership of a property from the seller to the new buyer. The contract should let the buyer schedule a walk-through of the property 24 hours before closing the deal. The reason of this is to make sure that the seller has completely evacuated from the property and the home is in the exact condition as the contract is described. if there should be any repairs, it should have been made and everything should be in place. If it does reveal any problems, it can cause delays on the closing process or it can cause the buyer to ask the seller for money to fix the problem.
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