According to a recent survey of Keller Williams agents across North America, the majority of homes close on time, but what can keep a home from closing?
Common Reasons for Delayed Closings
1. Short sale approval took longer than expected
2. Appraisal issues
3. Lender took too long
4. Loan underwriting took longer than expected
5. Additional documentation needed
6. Buyer did not provided documents to lender in a timely fashion
7. Home repairs needed to be conducted
8. Could not close with an active dispute on credit
9. Additional requirements by down payment assistance program
10. FHA loan requirements took additional time to complete
11. HOA application
12. Escrow company did not complete all required activities in a timely manner
13. Title issues
If you'll notice, 8 of these have to do with the lender. That's why it's so important for you as a consumer to go with a lender recommended by your real estate agent.
There are a ton of mortgage companies out there which give you a lot of options as far as who you'd like to work with. The fact is though, that in the end, you are only going to work with one lender. Your agent on the other hand, has had the opportunity to work with lots of lenders, because sometimes clients come to their agent with the lender already chosen. Thus the agent is forced to complete the deal with a lender they don't know. The agent quickly learns who is a good lender and who is not.
So when you're buying a home in Kansas City and your agent gives you some lenders to call, be sure to do exactly that. Your transaction is much more likely to close on time if your agent already has a relationship with your lender.
The lender wants to keep the agent happy so that the agent continues to send them business. Additionally, the agent gets absolutely no financial gain from recommending a lender to you. Lenders are prohibited by law from paying agents for referrals. The only advantage an agent gets when you choose a lender they recommend is peace of mind! And that means YOUR transaction is more likely to be a piece of cake rather than a delayed mess!
-Elizabeth Gilbert, Licensed Executive Assistant