Common hurdles at the closing table.

6 Common Hurdles in the Closing Process 

May 21, 2024

Buying a home is a big deal, and getting to the finish line can be stressful for all parties involved. From inspecting the property to securing financing and insurance, there’s a handful of steps that require careful navigation – and hurdles can arise unexpectedly. 

1. Home Inspection Issues

While surprises are (usually) great, unexpected problems uncovered during a home inspection can cause delays. Structural issues, safety concerns, or problems with systems like plumbing or electrical may require negotiations for repairs or credits, emphasizing the importance of open communication between buyers and sellers. 

2. Low Appraisal Challenges

A low appraisal in a real estate transaction can create negotiation challenges between the buyer and seller. The seller may resist lowering the price to match the appraised value, while the buyer may be hesitant to pay more. 

Lenders also usually base their lending decisions on the appraised value of the property, which determines the maximum loan amount for the buyer. If the appraisal falls short, the buyer may need extra funds or need to renegotiate loan terms. Parties can also request a reappraisal or dispute the initial appraisal, but this process may delay closing and require additional documentation. 

3. Lender Issues

Securing financing is often a make-or-break step in the home closing process. However, delays in mortgage approval, changes in lending requirements, or appraisal discrepancies can throw a wrench into the works and potentially derail the entire transaction. To mitigate this risk, buyers should ensure they have their financial documents in order and stay in close communication with their lender throughout the process.   

4. Title Concerns

Issues with title insurance often surface during real estate closings, including unpaid liens, encumbrances, ownership disputes, unreleased mortgages, forged documents, and errors in public records. These issues can delay or complicate the sale process, requiring resolution before the transaction can proceed smoothly.  

When you work with Ohio Real Title, you can trust that we will conduct thorough title searches and address any discrepancies, ensuring you receive a clear and marketable title to the property devoid of encumbrances or disputes.

5. Getting Insurance

Difficulty in obtaining insurance for a house can arise due to factors like property condition, location-specific risks, claims history, or unpermitted modifications. Insurers may refuse coverage or impose higher premiums in high-risk areas or for properties with past damage or unpermitted renovations. This challenge can impact the closing process by delaying loan approval, increasing costs, or causing the deal to fall through. Buyers must address insurance-related issues proactively, working closely with their insurance agent, lender, and real estate professionals to ensure a smooth closing. 

6. Closing Costs Disputes

Negotiating and finalizing closing costs can sometimes become a sticking point between buyers and sellers. Disagreements over who is responsible for certain fees or unexpected increases in costs can prolong the closing process as these issues are hashed out. Clear communication and a willingness to compromise are essential for resolving these disputes efficiently.

While an exciting milestone, buying a home can be a bumpy road. Navigating these common hurdles requires effective communication, attention to detail, and the ability to address issues as they arise. Working closely with your real estate agent, lender, and other professionals involved in the transaction can help ensure a smoother closing process. 
At Ohio Real Title, we want your home-buying experience to be stress-free. We’ll make sure you understand everything about title insurance and take care of all the little details, so your closing goes without a hitch. 

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