A seller puts their home on the market, and gets a buyer who believes they have found their dream house. Both parties feel they are all set for the loan closing, as the contract was signed and the loan has been approved. So what could go wrong? Unfortunately, there are a number of problems that can pop up before or during the closing that you may not be prepared for. Working with an experienced attorney is the best way to avoid unplanned obstacles like the following, or to help deal with them if they do arise.
Errors on Documents
Loan documents are legally binding, and should not have any mistakes, no matter how small. Unfortunately, errors do happen. They can range from a misspelled name or address, to something even more serious like an incorrect loan amount or missing pages. To avoid this, your attorney will review all of the important documents ahead of time, paying particular attention to details like name spelling, loan amount, down payment amount, etc. The sooner any problems are noticed, the easier it will be to get them corrected and avoid any loan closing delays.
Final Walkthrough Issues
When a purchase contract is signed, both parties agree to abide by certain terms and conditions, such the final price, what items, if any, will be left in the house by the seller, and any repairs that are expected to be completed before the closing. Your attorney is a key part in negotiating these terms. Issues can arise, however, if the final walkthrough reveals that one or more of these terms has not been met. Your attorney can help you decide how significant the violations are and if any renegotiations are called for before final loan closing papers are signed.
In order to legally transfer a property during a sale, the title must be completely clear of any prior liens or judgments. This could include a mortgage, an unpaid contractor’s invoice from home improvement work that was done, or unpaid property taxes. The property’s title could also be affected by complications due to trust issues or from the settlement of an estate or a divorce. Your attorney will provide the necessary assistance to clear the title of any liens and ensure that it is legally prepared to close the sale.
The best way to avoid problems during a loan closing is to anticipate the problems ahead of time. The experienced attorneys at Churchill, Quinn, Richtman & Hamilton, Ltd have assisted in thousands of real estate transactions and can help prepare buyers and sellers for any issues that may arise. Contact us at 847-223-1500 as early in the process as possible in order to ensure the most successful closing.
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