Last-Minute Buyer's Guide: Navigate Closing Hurdles and

Dealing with closing delays or potential deal killers in the last week before closing can be stressful. This guide will help you understand the most common issues that can arise, how to protect yourself, and where to get urgent support.

What Can Delay a Closing?

Common reasons for delays include TRID timing errors, final walkthrough issues, underwriting requests, HOA approvals, and document errors.

TRID Timing Errors

The TILA-RESPA Integrated Disclosure (TRID) rule requires lenders to provide specific disclosures. Delays can occur if these disclosures aren't provided on time.

Wire Funding Hiccups

Funding delays may arise due to problems with wire transfers, such as incorrect recipient information or insufficient funds.

Final Walkthrough Issues

Discovering unexpected property damage or missing items during the final walkthrough can lead to negotiations and potential delays.

Underwriting Requests

Lenders may request additional information from buyers during underwriting, which can cause delays if not provided promptly.

HOA Approvals

Homeowners associations often require approval for sales, and this process can delay a closing if the buyer's application is incomplete or delayed.

Document Errors

Incorrect or missing documents can slow down the closing process and cause delays.

What Can Kill a Closing?

Jobs or credit changes, wire fraud, title defects, appraisal gaps, property damage, insurance failure, and cold feet are some factors that can potentially derail a closing.

Job or Credit Changes

Changes in employment status or credit score can make a buyer less appealing to lenders, putting the deal at risk.

Wire Fraud

Scammers may attempt to intercept wire transfers, potentially killing a closing by stealing funds intended for the sale.

Title Defects

Undiscovered title issues, such as liens or ownership disputes, can put the entire transaction in jeopardy.

Appraisal Gaps

If the appraised value of the property doesn't meet the agreed-upon purchase price, lenders may not approve the loan, ending the deal.

Property Damage

Unexpected damage to the property can lead to negotiations and potentially kill a closing if the parties cannot reach an agreement.

Insurance Failure

Failing to secure necessary insurance coverage, such as homeowners or title insurance, can put a closing at risk.

Cold Feet

In some cases, either party may change their mind before the closing and choose to back out of the deal.

Questions Buyers and Sellers Ask in the Final 48 Hours

What should I do if I find damage during my final walkthrough?

Document the issue with photos and notify your agent immediately. Depending on severity, this can lead to a price adjustment, a seller-funded repair, or a short delay while it's resolved -- most walkthrough issues don't kill a closing, but they do need to be addressed before you sign.

How do I protect myself from wire fraud right before closing?

Always verify wire instructions by phone, using a number you already have on file -- not one sent in an email -- before sending any funds. Scammers specifically target the final days before closing when buyers are expecting a wire request.

What happens if underwriting asks for more documents at the last minute?

Respond as fast as possible. Last-minute underwriting requests are common and usually don't threaten the closing on their own, but a slow response can push your closing date back.

Can a job or credit change actually stop my closing?

Yes -- lenders often re-verify employment and credit shortly before closing. A new job, a missed payment, or a large new debt in these final days can change your qualification and put the loan at risk.

What if there's an appraisal gap discovered late in the process?

If the appraised value comes in below the purchase price, the lender may not approve the full loan amount. Buyers typically need to cover the gap in cash, renegotiate the price, or have an appraisal-gap clause already in place.

Note: This guide provides general information, but state-specific regulations may apply. Always consult a real estate professional or attorney for advice tailored to your situation.