5 Common Real Estate Closing Day Surprises and How to Deal With Them

Closing day is an exciting milestone in any real estate transaction. It marks the final step before officially becoming a homeowner or completing a sale. However, surprises can arise, causing unnecessary stress if you're not prepared. Here are five common closing day surprises and how to handle them like a pro.

1. Last-Minute Inspection Issues 🏠🔧

The Surprise:

During the final walkthrough, buyers may discover unexpected issues, such as a broken appliance, water damage, or incomplete repairs.

How to Handle It:

• Schedule a final walkthrough 24 to 48 hours before closing to catch any potential issues.

• If a problem arises, consult with your real estate agent to negotiate a repair or request a credit from the seller.

• Ensure all agreed-upon repairs have been completed before signing the final paperwork.

2. Surprise Closing Costs 💸

The Surprise:

Some buyers and sellers are caught off guard by unexpected fees on the closing statement, including lender charges, property taxes, and title insurance.

How to Handle It:

• Review your Closing Disclosure at least three days before closing to verify all costs.

• Ask your lender or real estate agent for clarification on any unfamiliar fees.

• Ensure you have enough funds in your account to cover the final amount.

3. Delayed Closing Due to Financing Problems 💳

The Surprise:

Lenders may request last-minute documentation, or there could be issues with loan approval, causing delays in the closing process.

How to Handle It:

• Stay in constant communication with your lender and submit any requested paperwork promptly.

• Avoid making large purchases or opening new lines of credit before closing, as this can impact loan approval.

• Have a backup plan in case closing is delayed, such as an extended lease or a temporary housing arrangement.

4. Title Issues 📜

The Surprise:

Unresolved liens, ownership disputes, or clerical errors in the property’s title can cause closing delays.

How to Handle It:

• Work with a reputable title company to conduct a thorough title search early in the transaction.

• Address any title issues immediately with your real estate attorney and agent.

• Consider purchasing title insurance to protect yourself from future claims against the property.

5. Funds Not Arriving on Time 💰

The Surprise:

Wire transfer delays or miscommunication between banks can result in funds not being available at closing.

How to Handle It:

• Confirm with your lender and closing agent when funds will be transferred.

• Wire the necessary funds a day in advance to ensure they arrive on time.

• Have a contingency plan in case of delays, such as a temporary bridge loan or an extension agreement with the seller.

Stay Prepared for a Smooth Closing ✅

While surprises can happen, being proactive and staying informed can help ensure a seamless closing process. Work closely with your real estate agent, lender, and attorney to address any potential issues before they become major roadblocks. With the right preparation, you’ll be ready to step confidently into your new home or complete your sale without unnecessary stress!