You can barely contain your excitement about finally buying a Phuket luxury villa for sale. Unfortunately, issues with the paperwork pushed the closing date by weeks. Such mistakes happen more often than you think, and in many cases, the buyer is usually responsible for the delay. If you want to prevent the same thing from happening on your next real estate purchase, you should know what missteps to avoid for a successful and timely closing.
Overlooking Financing-Related Issues
It’s important that you already have the money in the bag, so to speak, if you plan to pay for the property through a mortgage and other financing options.
- Don’t celebrate too early after receiving the initial acceptance from a lender. A glitch can happen somewhere along the way, and the financing option can fall through.
- Your mortgage application may be denied if you have outstanding debts or have recently made a major purchase.
- The lender has the right to back out if they discover an issue with your finances during the underwriting process.
- Paying via a personal check instead of a cashier’s check or wire transfer. Closing agents don’t accept a personal check and may even reject a cashier’s check. So even when you do have the funds, closing can still be delayed.
Not Taking Care of Legal and Documentation Concerns
Property transactions are complex and will require tons of paperwork. Non-compliance will make closing a deal almost impossible.
- If you’re a foreigner who wants to buy a property in Thailand, you must ensure you’re legally allowed to do so and prepare the documents required for registration.
- It’s crucial that you understand the difference between freehold and leasehold structures, and the possible delays should a legal restructuring of ownership rules be needed.
- Always check that a property has a clear title and no one else has some sort of claim over it.
- Make sure that it’s clear of debts, liens, or unpaid taxes that could prevent a closing.
- Ensure that you’re holding error-free closing documents, and that you’ve thoroughly read the contract, right down to the fine print.
Failure to Disclose Major Life Changes to All Parties Involved
Any life changes that may affect your finances should be disclosed to the lender, your agent, the seller, and the seller’s agent.
- Changing jobs or losing your job before the closing date can be grounds for cancellation of the deal. If you don’t have the capacity to pay the mortgage, the lenders will pull the plug on your financing application.
- Changing your status from single to married or married to divorced can also impact your loan application. Consult with a real estate pro for professional guidance on whether to hold off the wedding or divorce after property closing.
- Issues with appraisal and home inspection add to the list of concerns you should look out for.
Most problems that delay property closing are avoidable. If a seller decides against selling, however, it’s a different issue altogether. As long as you avoid the mistakes above, real estate transactions should be smooth for the most part. For a smoother experience, buy a property from a reliable curator like Sunway Estates.