You know how annoying “Are we there yet?” questions can be. Yet now that you’re at the escrow stage of the home buying or selling process, you find yourself asking the same question over and over again.
Closing day seems so near yet so far. So how long does escrow actually take?
Unfortunately, there’s no definite answer. The length of the escrow period can vary from a few days to a few weeks, and in worst case scenarios, maybe even a few years.
The good news is that you can take measures to keep escrow as short as possible. Here are common problems that can delay or prevent closing, and what you can do to avoid them.
Clouds on title
Encumbrances, liens, divorce decrees – issues such as these must first be corrected before closing can happen. Sometimes the issue can be resolved by simply submitting a corrected document. Other times, you may need to file a lawsuit. In either case, you have your work cut out for you when you encounter this type of delay.
Bank transfer issues
Banks often set a limit on how much you can take out of your account on a given day. Say your bank has a $5,000 daily limit. This means that it can take as long as 20 business days to move $100,000. If you don’t time it right, you could miss your escrow deadline. You can try speaking with your bank. Hopefully, your bank is flexible enough to allow you to temporarily increase your transfer limits.
Loan ineligibility
Just because your bank pre-approved your loan application doesn’t mean they’ll follow through. A lot of reasons can cause them to renege on the loan – rising interest rates, the discovery of additional debt, job loss, or a change in loan requirements are just a few examples. The best thing you can do is to educate yourself on how credit scores work and to avoid doing anything that can affect your score negatively.
Issues found during home inspection
Most purchase offers require the seller to address serious property issues before closing can proceed. If the home inspection reveals structural problems, termite infestation, and the like, fixing them can certainly delay your closing. Or, depending on the severity of the defect, a buyer can walk away from the deal.
Missing documentation
The documents necessary for closing include the following:
- Purchase agreement
- Seller disclosures
- Home inspection
- Pest inspection
- Closing disclosure
- Requests for repair
- Addendums, amendments, or riders, if any
Anything that’s missing from the list above can prolong the closing process, so make sure you have a checklist of all the documents you need. Likewise, double check the accuracy of the information in your papers to avoid issues that might delay the closing process.
Work with a real estate agent
Escrow is just one of the steps that comes with buying or selling a home. The entire process can be tricky and confusing, especially for first timers. Consequently, you’ll need all the help you can get. The Noel Team is ready to make your real estate experience as hassle-free as possible. Call 303.774.9400 or email sjnoel(at)remax(dotted)net today to help you buy or sell real estate in Longmont, Boulder County, Weld County, and Larimer County in Colorado.
