Closing is one of the last steps involved in buying or selling a house. A lot of different things happen at closing in Virginia. Deeds will be prepared, financing documents will be provided, and keys will be turned over. It is important to make sure that you are careful in preparing for closing and making sure that nothing gets in the way of finalizing your house sale or purchase. So what are the most common things that can delay a closing, and how do you avoid them?

1. Title issues can cause delays: Hopefully someone involved in a real estate transaction has purchased title insurance. Title insurance is an important part of a house sale as it makes sure there are no hidden surprises with respect to other people claiming ownership in the property or disputes with neighbors. However, even the best title companies can miss issues that can cause problems at closing. I have seen cases where people get to closing only to find out the person they thought they were buying the house from didn’t actually have permission to sell the house in the first place. Usually it is an estranged family member who is pretending to have ownership to make a quick dollar.

   In order to make sure that these title issues don’t delay your closing, make sure you work closely with a qualified title company that has experience in your local real estate market. Those title companies will likely have contacts in the local land records office and can have easy access to the relevant documents. They will also be familiar with any well known disputes in the area. Always work with a local title company if you are buying or selling a house.

2. Home inspections may uncover unforeseen problems: Before you get to closing, you will want to make sure that the house has been fully inspected. Most purchase contracts include provisions that a sale can be suspended if there is something major discovered in the home inspection. A buyer can take steps to make sure they know of any hidden surprises ahead of time by hiring their own inspector. Although this increases costs of selling the house, having your own inspector look at your house ahead of time can give you some ideas as to what may come up.

   If you are a buyer, your home inspector may likewise find something wrong with the house. Maybe there are foundation cracks or water leaks. When these issues are not caught early in the process it can cause a standoff at closing. Make sure you have your inspector involved in the home buying process early so you don’t have surprise issues at closing.

3. Financing issues can cause a sale to fall through: There are many different types of financing available for home buyers. Military status, income levels, and jobs can have a major impact on what kind of financing a buyer has. Each type of financing can come with unique problems. It is not uncommon for financing to fall through ahead of a sale. One of the best ways of avoiding that issue is to make sure a reputable lender is involved.

4. Differences in appraised value can have an impact on financing and closing: An appraisal is an important part of a house sale. Many different types of financing require a home appraisal to be performed. Most lenders have appraisers they have an established relationship with. You want to make sure you avoid appraisers that do not have a strong track record working with the lender. An appraisal mistake can derail financing and cause a house sale to fall through.

There are some steps that you can take to make sure that you do not have one of these issues come up in closing. The biggest steps you can take include working with reputable professionals, working through a proper brokerage, and being careful about what house you are buying. If you take the proper steps, you will not need a lawyer down the road.