Financial delays in a real estate transaction can be frustrating and costly, but they are preventable. Learn how to avoid financial delays with this post that Delta South Title, Inc. in Mobile, AL, has put together for you.

Buying or selling a home is one of the biggest financial transactions most people will ever make. However, to get through it, you need money. This is why financial delays can bring everything to a frustrating halt. To make sure this doesn’t happen to you, here’s what you need to know to keep your real estate transaction on track and avoid financial delays.

Call Delta South Title, Inc. in Mobile, AL, at (251) 633-3133 if you’re ready to make a smart real estate transaction.

How to Avoid Financial Delays in Real Estate

1. Get Pre-Approved, Not Just Pre-Qualified

Many buyers assume that being pre-qualified means they’re financially set to purchase a home. However, pre-qualification is only an estimate based on basic financial details. Pre-approval is a more thorough process where the lender verifies income, credit history, and debt-to-income ratio.

How to Avoid Financial Delays:

• Get pre-approved with a lender before making an offer.
• Provide all necessary documents promptly, including tax returns, pay stubs, and bank statements.
• Avoid changing jobs or making large purchases that could impact your loan approval.

2. Understand Closing Costs in Advance

Many buyers and sellers underestimate how much they’ll need to bring to the closing table. Closing costs typically include lender fees, title insurance, escrow fees, and property taxes. If a buyer doesn’t have enough funds, the transaction may be delayed or fall through.

How to Avoid Delays:

• Request a Loan Estimate from your lender early on to understand all costs.
• Sellers should be aware of their closing obligations, such as agent commissions and transfer taxes.
• Keep extra funds available in case of unexpected expenses.

3. Keep Your Credit Stable

Even after mortgage pre-approval, lenders continue to monitor your financial situation. A drop in your credit score can result in the lender revoking or adjusting your loan terms.

How to Avoid Delays:

• Avoid opening new credit accounts or making large purchases before closing.
• Continue making timely payments on all existing loans and bills.
• Monitor your credit report to ensure no errors or fraudulent activity.

4. Respond Quickly to Lender Requests

During the underwriting process, lenders often request additional documentation or clarifications. Delays in providing these documents can push back the closing date.

How to Avoid Delays:

• Stay in regular communication with your lender and respond to requests promptly.
• Keep digital copies of important financial documents ready for submission.
• Work with a knowledgeable mortgage broker or real estate agent to guide you through the process.

Call Delta South Title, Inc. in Mobile, AL, at (251) 633-3133 for help in having a safer and smoother real estate transaction.

5. Ensure the Appraisal Matches the Purchase Price

Lenders require an appraisal to confirm the home’s value before approving the loan. If the appraisal comes in lower than the agreed purchase price, the lender may not approve the full loan amount.

How to Avoid Delays:

• Research comparable home sales to ensure the price is realistic before making an offer.
• If the appraisal is low, negotiate with the seller for a price reduction or prepare to cover the difference.
• Some buyers opt for a second appraisal if they believe the first was inaccurate.

6. Clear Any Title Issues Early

A title search ensures that the property is free of legal claims, such as unpaid liens or ownership disputes. If issues arise, they must be resolved before closing, which can take time.

How to Avoid Delays:

• Work with a reputable title company to conduct a title search early in the process.
• Sellers should resolve outstanding debts or legal claims on the property before listing.
• Buyers should consider purchasing title insurance for added protection.

7. Double-Check Funds Transfer Requirements

Closing requires large sums of money to be transferred securely. Errors or fraud in the wire transfer process can cause major setbacks.

How to Avoid Delays:

• Confirm wire transfer details directly with your title company or escrow agent—never rely solely on email instructions.
• Be aware of wire fraud scams and verify all account details before sending funds.
• Transfer funds in advance to ensure they arrive on time for closing.

8. Plan for Contingencies in Your Contract

Unexpected financial delays can sometimes be unavoidable, but having a well-structured contract can provide protection.

How to Avoid Delays:

• Include reasonable financing and inspection contingencies in your purchase agreement.
• Set clear deadlines for loan approval and closing to keep all parties on track.
• Work with a real estate attorney or experienced agent to draft a contract that protects your interests.

Call Delta South Title, Inc. in Mobile, AL, at (251) 633-3133 for expert assistance when going through complex real estate transactions.