1. Lending problems
During this process, a lot of your financial background is being assessed. The mortgage evaluation is the most critical aspect for closing. When lenders see discrepancies or any additional credit, you’ll incur during the closing process; your loan might not get approved, causing the deal to fall apart.
Solution: Hire reputable agents and lending professionals so that you’ll have a quick insight on what to do during this critical part of the process. It’s best to discuss your financial plans with your agents, especially when dealing with large expenses so that you could have the best solutions for your dilemma without damaging your deal.
Inspectors in orange reflective vests taking notes and checking with clipboards at the house
2. Home inspection
Sometimes, home inspectors might overlook critical details during inspections, which could damage the house, especially when the missed feature deals with electricity or water.
Solution: Take time to have your inspector go through and check every little detail around the house. Properly schedule the home inspection so that the homeowners could also have a heads up on how long the inspection would last. Also, do one final sweep with the house to ensure that everything is good for transfer.
3. Bank transfers
This is the most overlooked aspect during escrow. People only anticipate the delays on transfers but fail to consider that banks commonly have transfer limits. You might have to transfer $90,000 asap from your savings to your escrow account but only have a $10,000 daily limit.
Solution: To avoid any transfer issues, contact your bank early in the escrow process to discuss your transactions, especially on transferring funds to your escrow account. This would help you avoid missing any escrow deadlines.
4. Missing will
The seller might have a will lost or misplaced somewhere. With the absence of the will, the property is sold through probate by the state. But if the will turns up perhaps years later, and now the heirs want your property that was legally willed to them, you have a big chance of losing the property.
Solution: Again, having comprehensive title insurance protects you from dealing with the legality of the property. Also, discuss with your agent and attorney to carefully check the authenticity of the will.
Escrows can be a tough task, especially when you don’t know what might come your way during the process. As a top producing agent with 20+ years of experience in the East Bay, I have helped hundreds of clients successfully close escrow in the Greater San Francisco Bay area and the counties of Alameda and Contra Costa. My experience as a former appraiser allows me to help my clients understand the market and make the right offer. If you have any questions, I am here to be a resource for you.