As a home buyer finding that right home is both exciting and nerve-wracking. The list of requirements from your real estate agent, attorney, title company or mortgage broker may seem very long. Missing even one item can delay the closing on your dream home. Ask Allied Title & Escrow! We provide the highest level of quality to our clients on our Title & Escrow Northern Virginia services and make sure you have a smooth transaction on your real estate transaction. Here are 5 pitfalls buyers and sellers often encounter and steps you should take to avoid them.
1) Not coming prepared to the closing
First, make sure when you're closing on a house that you and your agents have a call beforehand to remind you of what you need to bring. In addition, your loan officer and title company should make sure that you have everything in line for closing. This list may include funds, homeowner's insurance, your driver's license and the estimate.
2) Unforeseen titling issues in Title & Escrow Northern Virginia
Many times people take for granted that the closing process will be smooth. However, there can be unforeseen problems in the titling process that can cause delays in closing. In fact, more than one-third of all real estate transactions may undertake extraordinary work to address issues with the titles often going back 50 years or more. For example, if a home has recently had renovations done to it and any one of the contractors or subcontractors were not paid then a lien may exist on the property. Personal bankruptcies or divorces may also cause issues when buying a home. Having a good real estate agent and local title & escrow Northern Virginia company can help you foresee issues related to the title before you purchase a home. Having a title company that is proactive and responsive is also critical in the home buying process.
3) The loan isn't ready to close or is not approved
It is a homeowner's worst nightmare to get to the deadline to buy the home and not have the proper documentation or loan approved to finally purchase. Request that your agent, lender and title company inform you of any potential issues that arise throughout the real estate transaction as soon as they happen. If issues arise you want to make sure the proper parties have the time to solve those items before closing. Potential issues could include liens on the property, additional documentation required to get the loan approved, or determining who will take care of any issues resulting from the home inspection.
4) Purchasing big items before closing
An experienced loan officer should remind you that you should never buy big-ticket items such as a car or furniture when you're in the escrow process and waiting to purchase a home. This could delay or stop the approval of your loan on time.
5) Home warranty to cover major appliances and other deficiencies
The average cost of replacing a major appliance is somewhere between $350 and $1,300. If an appliance fails after the closing process a home warranty can financially protect you and your family from significant up front costs. Home warranties can also cover roof leaks, a faulty heating and cooling system, electrical & plumbing issues and more. Make sure to have the home warranty company review what is and is not covered within their agreement.
At Allied Title & Escrow, our team of industry experts and attorneys have over 25 years of experience in title, settlements and real estate transactions. Headquartered in Arlington, VA, we provide residential and commercial services throughout all counties of Northern Virginia, Washington DC and Maryland. We strive to provide the highest level of service and will handle all aspects of the settlement process.