How to Overcome Closing Delays – FOR BUYERS 

How to Overcome Closing Delays – FOR BUYERS

If you’ve purchased a property in the past few years, you know it’s a lot of work. From your pre-approval, to selecting the right Realtor, being in multiple offers, mortgage approval, inspection, appraisal and more, it’s like taking on a part time job. As you approach your possession date, timing is everything. Though it’s rare, closing delays can occur, bumping back your possession.

Today we’re sharing tips on what you can do to avoid costly closing delays.

Budget closing costs. A good rule of thumb is to budget at least 1.5% of your purchase price for closing costs. You need to budget for an inspection, appraisal costs, tax adjustments, legal fees, disbursements, possible title insurance, utility deposits, a moving van or moving company and more.

Save large purchases. Any large purchases that have to be put on credit could cost you your mortgage approval in two ways. First, it could put your total debt ratio above the maximum allowance and second, it could lower your credit score. Both of these elements are essential for mortgage approvals. Though your mortgage has already been approved, some lenders will run additional verification checks to ensure financial information is still the same prior to closing.

Don’t change jobs. If your mortgage was approved based on an income and employment verification from an employer, whom you’ve just left, this could drastically alter your mortgage approval. There’s no guarantee a lender will or won’t come back to verify your information before you take possession, so play it safe! If you plan to change jobs, delay it until after your mortgage has been funded and you’ve moved in.

Insurance. Arrange property insurance well in advance. Before calling your insurance company, have all the specifics of the property from a detailed MLS sheet. If you do not have this available, your Realtor can forward it to you.

Realistic possession date. We understand the excitement and urgency to move in quickly especially if the property you’ve chosen in vacant. As a buyer, it may seem like all you have to do is sign documents, however there is a lot of behind the scene details that must be completed for a buyer to take over ownership. A realistic possession date is at least two weeks after conditions have been removed. It can be done quicker, however rush fees will likely be endured, and there is a greater risk of having a delayed closing.

Signing. If you haven’t heard from your lawyer at least two weeks prior to your closing date, give them a call to set an appointment to sign your mortgage and transfer documents. The sooner you can get in, the better.

Final Thoughts. The contract states that your possession will take place at approximately 12pm on the agreed upon date. This does not mean you should book a moving truck to show up at your property for noon. Unforeseeable circumstances can occur that delay closing by a few hours, or worse, up to a few days. For this reason, we always suggest booking your moving company for the day after possession.

Next week, be sure to check back as we’ll be discussing what sellers can do to overcome closing delay. If you’re in the market to buy a home and don’t already have a great Realtor working for you, it’d be our pleasure to help you! Feel free to contact us today!

Jason Rustand with RE/MAX Real Estate serves with the highest level of integrity and excellence every time. For more info on this topic or others related to real estate contact LIKE our Jason Rustand Team Facebook page, call Jason direct at 780.919.0004, email or visit