Purchasing a home is a monumental event, but the journey from signing the contract to receiving the keys can be fraught with potential delays. Understanding these common issues and taking proactive steps to deal with them can help ensure a smooth and timely closing. Republic Title understands the intricacies of the home-buying process, having served the North Texas real estate community for over 30 years. As the market leader in title insurance with 11 conveniently located residential offices across North Texas, Republic can be your trusted authority to guide you through these potential closing delays.
Loan Requirements
One of the most critical aspects of purchasing a home is securing a mortgage. The loan approval process involves several steps, and delays often occur when buyers fail to promptly respond to lender requests. Lenders require various documents, including income verification, tax returns, bank statements, and proof of employment. To keep your closing date on track, it’s essential to:
- Respond Promptly: Return all requested documents as quickly as possible. Delays in providing these documents can slow down the underwriting process, leading to a potential postponement of your closing date.
- Complete Required Tasks: Follow through on any additional tasks your lender asks you to complete. This might include clarifying information or providing additional documentation.
By staying organized and responsive, you can help your lender process your loan efficiently, reducing the likelihood of delays.
As Matt Visinsky, Senior Residential Counsel at Republic Title, advises, “Timely communication with your lender is crucial. Delays in submitting documents or answering questions from your lender can cascade into significant setbacks in the closing timeline.”
Tax Information
During the title process, the title company will search the property tax records for any delinquent taxes or unearned tax exemptions. If unpaid taxes or unearned exemptions are discovered, the seller may need to work with the County Appraisal District and/or Tax Office to resolve these issues before closing. Failure to promptly address these issues can result in the closing being delayed until the unearned exemptions can be removed and any resulting supplemental tax bills issued. Ensuring all your taxes and exemptions are current can prevent this common delay.
Power of Attorneys
Using a Power of Attorney (POA) at closing may be necessary if you or the other party cannot be present. It also adds additional steps and requirements that must be meticulously followed:
- Approval: The title company and lender (if there is one) must approve the POA before closing.
- Delivery: The original POA document must be delivered to the title company at or before closing, as it needs to be recorded with the County Clerk before other closing documents.
- Verification: On the day of closing, the title company must be able to contact you in order to verify that you are alive, well, and have not revoked the POA. To avoid closing delays please make sure that you have provided the title company with your contact information so they can reach you on the day of closing.
By ensuring these steps are followed, you can avoid delays related to POA issues.
Common Names
If you have a common surname it may be necessary for you to provide the title company with information or documentation to prove that certain liens do not apply to you and are in fact filed against someone else with the same name. Please be sure to respond to any questions or requests for documentation timely in order to avoid delays.
Marital Status
In Texas, a community property state that also has constitutional homestead rights, marital status can impact the closing process:
- Single to Married: If you purchased the property when single but are now married, your spouse will need to join in signing the deed at closing due to Texas Homestead Laws, so plan accordingly.
- Divorced: If you acquired the property while you were married and are now divorced you may need to provide the title company with a copy of the divorce. Depending on the language contained in the divorce it may be necessary to have your ex-spouse sign a deed.
Addressing these marital status issues in advance helps ensure a smoother closing process. “Marital status changes can affect property rights and closing requirements, explains Visinsky. “Being proactive about these changes can prevent delays.”
Out of Town Mail-Outs
If a Remote Online Closing is not possible and closing documents must be sent to a party to be signed outside of the office of the title company, follow these tips to avoid closing delays:
- Exact Signatures: Sign all documents exactly as requested. Failure to do so may result in the lender requiring the parties to re-sign all closing documents.
- Proper Notarization: Ensure all documents are properly notarized. If documents are sent out of the country it may be necessary to make an appointment at a US embassy or consulate to have your documents notarized. In some cases it may be possible to have a local notary acknowledge the documents. If you will be out of the country please communicate that to the title company early so they can help to guide you through the process.
By following these guidelines, you can avoid delays related to out-of-town mail-outs.
Review Important Documents
Several important documents must be reviewed before closing, including the Survey, Title Commitment, HOA documents (if applicable), and the Closing Disclosure. It’s crucial to:
- Timely Review: Review these documents promptly upon receipt and ask any questions at that time.
- Alert for Errors: Inform your Realtor and the title company of any errors or discrepancies immediately.
Timely review and communication can help rectify any issues before they become roadblocks, ensuring a smoother closing process. Visinsky emphasizes, “Careful review of all documents is essential. Early identification of errors can prevent last-minute complications.”
By understanding and proactively addressing these common issues that can lead to closing delays, you can help ensure a more seamless home-buying experience. Choosing Republic Title as your title company means partnering with North Texas’ market leader in title insurance, with over 30 years of expertise in the real estate community. Stay organized, responsive, and communicative with your lender, title company, and Realtor to navigate the closing process efficiently. With Republic Title, you can avoid many of the common pitfalls that lead to delays, bringing you one step closer to owning your new home.
Source: Republic Title Tip: How to Avoid Common Closing Delays – CandysDirt.com