The latest REALTORS® Confidence Survey spells out the top reasons for delayed home closings and cancelled deals. We’re sharing this information to help Chicago home buyers avoid last-minute snags!
First, some good news. A few months ago, one of the most common reasons for closing delays were problems with TRID disclosures. The new disclosures became effective in October 2015, but banks had some trouble getting out of the gate. It now appears that TRID is no longer a show-stopper.
Unfortunately, the #1 reason for closing delays is one of our pet peeves! Take a look:
- Issues related to buyers financing: 38%
- Appraisal issues: 22%
- Home inspection/environmental issues: 12%
- Titling/deed issues: 11%
- Contingencies stated in the contract: 10%
- Issues in buy/sell distressed property: 5%
Say it isn’t so! Home buyers, please remember to obtain a mortgage pre-approval before you shop for your new home. Also remember that you should not change jobs, close credit card accounts, or buy a new car until after closing. Lenders will review your entire mortgage application again, right before closing, and if anything seems amiss, your mortgage offer could be delayed or revoked.
Next, we have the most common reasons why a home closing fails completely:
- Home inspection/environmental issues: 28%
- Issues related to buyer financing: 21%
- Appraisal issues: 12%
- Contingencies stated in the contract: 12%
- No problems encountered: 5%
- Titling/deed issues: 4%
Once again, issues with buyer financing ranked near the top, coming in at #2 this time. The top 3 didn’t really shuffle around too much; the same issues are involved in closing delays, but in a slightly different order. In many cases these delays and cancellations are preventable!
At Starting Point Realty, helping first-time home buyers is our passion and our mission. We will work closely with you to assure that you have the all the information you need to make the best decisions!
Starting Point Realty – helping first-time Chicago home buyers!
Starting Point Realty is dedicated to helping first-time home buyers in Chicago and the Northwest suburbs. We provide education and guidance throughout the entire home buying process. Our market insights and expert negotiation will help you succeed!
Get started by attending our free home buying seminar! Register in advance to reserve your seat. No sales pitches and no obligation. Join us and bring a friend!
Ryan Gable Broker/CEO Starting Point Realty
Become a StartingPoint Realty Facebook Fan
Follow StartingPoint Realty on Twitter