What Can Delay Your Virginia Closing, and How I Prevent It

Almost every closing that runs late was running late long before anyone noticed. The fix is not heroics at the finish line. It is catching the small problems in week one, while they are still phone calls and not crises.

Written by Anthony I. Shin, Esq., Principal and real estate attorney at Prime Title & Escrow

People ask me what could push their closing date, usually with a little worry in their voice. Here are the usual reasons a closing slips, and, just as important, how I keep each one from reaching your date.

Lender and underwriting delays

This is the most common cause by a wide margin. Underwriting asks for one more document, the appraisal is ordered late, or employment and funds need to be reverified at the last moment. I stay in direct contact with your lender so I see these coming and we deal with them while there is still time.

Title issues that take time to clear

An old mortgage that was never released, a lien, a court judgment, an estate or name problem, or a boundary question from the survey can all slow a closing. The American Land Title Association (ALTA) reports that a large share of transactions need several title issues resolved before closing. I order title early, for exactly this reason, so there is room to fix what we find. You can read more in my overview of what a title and escrow company does.

A low appraisal

If the appraisal comes in under the contract price, the buyer and seller may need to renegotiate, or the buyer may need to adjust the funds they bring. Either way, it takes conversation, and it can move a date. The sooner we know, the more options everyone has.

A payoff statement that arrives late

When there is a seller, the seller’s current lender has to provide a payoff figure, and those sometimes arrive slowly. I request them early so a slow bank does not become your problem on closing day.

Last minute loan changes

A change to your loan can do more than annoy you. It can legally reset your timeline. Certain changes restart the three business day Closing Disclosure window, which means you cannot sign until the clock runs again. Avoid changing anything about the loan in the final days unless you truly have to.

Being ready on your end

Your part is small but real. Send your cash to close the safe way and on time, have your photo ID ready, bring what you need, and complete your final walkthrough. A walkthrough problem found the night before is a scramble. The same problem found a few days out is just a repair.

If a delay does happen

Sometimes a date moves for reasons no one controls. When it does, I tell you straight, explain why, and give you the new plan. No vanishing, no vague reassurance. For the full sequence your closing follows, see what happens at a Virginia closing.

A few less obvious causes

Beyond the usual suspects, a handful of quieter issues can move a date. Homeowners association or condominium documents sometimes take longer than expected to arrive, and a sale can wait on a resale certificate or on a lender’s review of the association’s finances. A homeowner’s insurance binder that is not in place can hold up a financed closing, since the lender will not fund without it. And a new credit inquiry or a large purchase during the loan process, a car, furniture, an opened card, can change your numbers enough to send underwriting back to work. The safest move while your loan is pending is to keep your finances boring.

Recording itself can also keep its own calendar. Courthouses observe holidays, and a deed presented late in the day may record the next business morning. None of this is cause for alarm when it is planned for, which is why I build a little room into the schedule rather than counting on everything landing perfectly.

The thread running through all of this is time. Almost every delay shrinks when it is found early, which is why I would rather hear from you the week your contract is signed than the week you are due to close. Give me the runway, and most of these problems never reach your date.

This article is general information about what can delay a Virginia closing. It is not legal advice for your specific transaction, and every deal is different. Please confirm the details that apply to your closing with me directly.