You’ve found that perfect home, you made an offer and the sellers accepted, and now you’re ready to move on to closing as soon a possible. The last thing you need is for some problem or surprise to cause any delays, especially with respect to your mortgage. And it happens – all the time. One of our clients had a lender back out when their underwriting team missed a key allowance within the condo documents of the association, and they were unable to offer financing as a result (our client quickly contacted a local bank who fully understood that local market and was able to put together last-minute financing).
There are, in fact, a lot of things that can go wrong and cause depressing delays, but not (most of the time) if you know about and are prepared to deal with the causes of these delays. With that in mind, here are 5 things that can delay your mortgage in Boston.
1. Appraisal Comes In Too Low
Before your lender will approve a loan for the purchase of a property, that property will have to be appraised to ensure that it’s really worth what you’re wanting to borrow. An appraisal that is too low can delay your mortgage in Boston quicker than anything else. If that happens, you’ll often have to negotiate with the seller for a lower price or add more to your down payment (which isn’t always a simple endeavor). This is an area where a qualified real estate agent can be a huge help.
2. Inspection Surprises
Another common scenario that can delay your mortgage in Boston is one involving an inspection that discovers unknown or undisclosed problems. Your lender will often require both a home inspection and a pest inspection. If these inspections turn up, say, a cracked foundation or termite infestation, your mortgage will be delayed while and until you negotiate rectification of these problems. Again, a good agent can provide invaluable assistance in this situation. (You can discover more about this at (617) 657-9811.)
3. Title Problems
Before closing, a title search will have to be done to ensure that the title is clear. But if it turns out that there are liens against the property or that someone other than the seller actually owns it, this too will delay your mortgage. It could take months to get such title problems sorted out. And your lender will not extend a mortgage until the title is absolutely clear and free of all encumbrances.
4. Big Purchases
Try not to make big purchases after receiving your mortgage commitment but before closing on your loan. Remember, the house isn’t yours until you sign the paperwork for your mortgage, the money changes hands, and the all the dotted lines are signed and notarized at closing. Maybe you made an offer and the seller accepted, so you want go out and put new living room furniture and a new refrigerator on your credit card. Be careful. These kinds of major purchases can put you over the debt limit so that you no longer qualify for the mortgage you need. Near your closing date, your mortgage lender will pull your credit again to make sure that nothing has changed, especially with respect to your total debt.
5. Down Payment Issues
Although it doesn’t happen often, sometimes your lender will unexpectedly require a larger down payment than you had been informed of previously. This usually happens when the lender re-assesses the income and debt documentation you provided or when a key piece of information was delayed. Whatever the case, you’ll have to find a way to come up with new down payment, and the mortgage will have to be re-written – delays all around.
The Best Solution
The best solution for avoiding these things that can delay your mortgage in Boston and help you close sooner rather than later is to hire an experienced real estate agent. At NextHome Titletown Real Estate, we can help you head off or navigate around most of these delay-causing problems.
Are you ready to buy a Boston house? We can help! Send us a message or give us a call today! (617) 657-9811
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The property listing data and information set forth herein were provided to MLS Property Information Network, Inc. from third party sources, including sellers, lessors and public records, and were compiled by MLS Property Information Network, Inc. The property listing data and information are for the personal, non commercial use of consumers having a good faith interest in purchasing or leasing listed properties of the type displayed to them and may not be used for any purpose other than to identify prospective properties which such consumers may have a good faith interest in purchasing or leasing. MLS Property Information Network, Inc. and its subscribers disclaim any and all representations and warranties as to the accuracy of the property listing data and information set forth herein.
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