You’ve found that perfect home, and so you’re ready to move on to closing as soon a possible. The last thing you need is for some problem or surprise to cause any delays, especially with respect to your mortgage. There are, in fact, a lot of things that can go wrong and cause depressing delays, but not (most of the time) if you know about and are prepared to deal with the causes of these delays. With that in mind, here are 5 things that can delay your mortgage in Baltimore.
1. Appraisal Too Low
Before your lender will approve a loan for the purchase of a property, that property will have to be appraised to ensure that it’s really worth what you’re wanting to borrow. An appraisal that is too low can delay your mortgage in Baltimore quicker than anything. If that happens, you’ll have to negotiate with the seller for a lower price and/or get further appraisals. This is an area where a qualified agent can be a huge help.
2. Inspection Surprises
Another common scenario that can delay your mortgage in Baltimore is one involving an inspection that discovers unknown or undisclosed problems. Your lender will likely require both a home inspection and a pest inspection. If these inspections turn up, say, a cracked foundation or termite infestation, your mortgage will be delayed while and until you negotiate rectification of these problems. Again, a good agent can provide invaluable assistance in this situation. (You can discover more about this at 443-928-4550.)
3. Title Problems
Before closing, a title search will have to be done to ensure that the title is clear. But if it turns out that there are liens against the property or that someone other than the seller actually owns it, this too will delay your mortgage. It could take months to get such title problems sorted out. And your lender will not extend a mortgage until the title is absolutely clear and free of all encumbrances.
4. Big Purchases
If you go out and make big purchases, you could be shooting yourself in the foot, mortgage-wise, that is. Remember, the house isn’t yours till you get the mortgage, the money changes hands, and the all the dotted lines are signed and notarized at closing. Maybe you made an offer and the seller accepted, so you want go out and put new living room furniture and a new refrigerator on your credit card. But don’t. These kinds of major purchases can put you over the debt limit so that you no longer qualify for the mortgage you need. Real estate experts agree that this could not only delay your mortgage but could even be disastrous. Close to the closing date, your mortgage lender will pull your credit again to make sure that nothing has changed, especially with respect to your total debt.
5. Down Payment Issues
Although it doesn’t happen often, it does happen sometimes that your lender will unexpectedly require a larger down payment than you had been informed of previously. This usually happens when the lender re-assesses the income and debt documentation you provided or when a key piece of information was delayed. Whatever the case, you’ll have to find a way to come up with new down payment, and the mortgage will have to be re-written – delays all around.
The Best Solution
The best solution for avoiding these things that can delay your mortgage in Baltimore and help you close sooner rather than later is to hire an experienced real estate agent. A good agent can help you head off or navigate around most of these delay-causing problems.