Property Manager MA: How the Closing of a Sale may go wrong
You may assume that once you make the down payment for your new home, that the wait is finally over and you don’t have to do anything else. However, you have to deal with the closing of the sale as it is a very complicated process (Depending on what is required). A lot of things could go wrong for you and maybe nothing may go wrong. These are the following things which may or may not happen.
Yes, your mortgage rate can expire if you are not careful. Financial markets always go through some turmoil at times. This means that the mortgage rate can fluctuate on a daily basis. When you lick in your interest rate it is only for a set amount of days. If the sale isn’t completed in the right time, you will have to pay a higher rate.
Property Manager MA: Issues
Issues do come up which can affect the closing of the sale. When there are issues with permits, illegal renovations, etc. you know that the loan process will stop till it is resolved. Perhaps it could be an extension to your home, which was built years ago when laws were different. So in order to get approval of the loan, you would have to agree to make changes. By the time you get to do that, you may lose the rate.
Line of Credit
The process is still not over as you will still have to wait for some time before you actually get the loan. Signing the documents and submitting the paperwork doesn’t mean it is in the bag as yet. The mortgage lender gives the funds based on the verification of your income, assets and line of credit. Just because you got it doesn’t mean you should spend frivolously. So spend very carefully and don’t make any changes to your lifestyle as it can affect your loan. If there are any questions, you should ask your mortgage professional for advice.
When you get an option to go through the walk-through, don’t waive your rights. It helps to do one before the sale closes. This means that you can see if things are as you think they should be. If the house is not in the shape you want it to be, you can postpone the closing.
Do remember that once you close the sale, everything there is your responsibility. This is why you have to ensure that the seller has disclosed all issues and that you have made sure that they have been resolved. Even if most states side with the buyer, the onus is on the buyer to see it is all done before the sale is completed. So double check everything and see if there are no outstanding issues.
After that you can sign your loan documents anywhere and the seller signs off on the deed at the title company. When both parties wire their funds, everything works out then.
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