Problems buyers can encounter at closing

You’re buying your first home and are very excited — rightfully so! But you need to be careful during the next few weeks.

Why? Because unexpected problems can interfere with your closing and delay or even destroy your dream.

What are the biggest things that can go wrong?

Ideally, you’ll show up at closing, sign a lot of documents and walk away with your new house keys. Here are the most common reasons that might not happen:

• Your credit took some hits since you applied for your loan. Maybe you let a couple bills slip to afford the earnest money or perhaps you got excited and opened a new credit account to buy furniture. Either way, the recheck your lender does could turn up a problem.
• You lost or changed jobs. When you applied for your loan, you were working in a steady job for several years. You took a leap to a new position. In the bank’s eyes, that makes you a risky venture. Losing your job is even worse, even if you think you’ll bounce back.
• Your loan documents have small errors. Does it really matter if your middle name is spelled wrong on those loan documents by a letter? Absolutely. That’s enough to slow your closing until it is corrected.
• You brought a check to cover the down payment. You need a cashier’s check or a certified check, not a personal check. A wire transfer will also work, but the payment must go through without any delays.
• You have a snag with the insurance. Find out what insurance you need and get that contract signed immediately so that it’s ready to go. Make sure you know if flood insurance is required.

Finding out at closing that your real estate deal is delayed or over can be devastating. The best way to protect your interests is to work with an experienced real estate attorney here in Florida.