6 Hiccups That Can Stall The Closing Process On Your Port Charlotte Home

The long search for that perfect Port Charlotte property to become your next home finally seems worth it when you have the gratification of submitting an offer and having it accepted. That’s a truly amazing feeling! But before you allow yourself to get too carried away with excitement, you should be aware that there are still a lot of hurdles to overcome and certain things that could slow the closing process down in a big way. In today’s post, we’re sharing six common ways that the closing on your Port Charlotte home could be delayed so you can avoid that unexpected feeling of disappointment.

1. Making Major Purchases

Just because your offer was accepted, does not mean that the deal is done. Be aware that your lender and title company will be monitoring your spending all the way up until the actual closing on your new Port Charlotte home. Since mortgage approvals are based upon your debt to income ratio, you could shoot yourself in the foot if you make a major purchase or open a new line of credit while the property is in escrow. During this period, it is critical that you keep spending to a minimum and consult with your Port Charlotte Realtor and lender if you’re unsure about any purchases or financial decisions.

2. Seller Passes Away Before Closing

If you are buying a home from a person rather than a builder, and they pass away before closing, the property will likely end up going into probate. This will lead to delays as the probate courts verify that the property is allocated properly based on the owner’s last will and testament. Unfortunately, there is nothing you can do to move things along at this point but it does speak to another reason as to why it's better to buy your home from a builder.

3. The HOA Gets In The Way

If there is a Homeowners Association, or HOA, involved you may have to be approved by the board to move in. This can be time-consuming if the HOA doesn’t run efficiently. Furthermore, the seller could owe a balance to the HOA on their dues which will need to be paid. In some cases, these fees can be negotiated down between either the HOA itself, or the sellers but they will need to be paid regardless.

4. Unexpected Flood Insurance Requirement

Living in Florida means dealing with flood insurance. Getting flood insurance, especially if you are in a flood zone, will require you to obtain a benchmark survey. Once that is completed, the mortgage underwriter will have to review it and make sure that everything is up to par before they can move forward. Unlike new construction properties in Port Charlotte that are built with this concern in mind, older homes frequently raise issues in this department.

6. Title Issues

It is the title company’s job to ensure that the person who is selling your new home to you is the rightful owner and that there are no outstanding liens (debts owed) on the property. It is not uncommon for the title company to discover one or even multiple issues with the title of the property. Depending on the severity of the disputes or liens, there could be significant delays to the closing. However, they are well worth it when you consider the risk of buying a property with multiple mortgages only to find yourself eyeballs deep in-debt.

6. Damage To The Property

In the unfortunate case that there is damage done to the property while it is in escrow, you may have the closing pushed back. Again, it will depend on the severity of the damage. Something small like replacing a couple of fallen shingles can be tackled in no time, unlike a gaping hole in the roof which would require a major repair. Obviously, you will want to see these repairs made before you move in but your lender may also require them for closing because they could alter the value of the property.

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