8 Closing Day Surprises You Might Experience When Buying a Home, and How to Deal With Them

 After the often long process of searching for the perfect home, successfully getting it under contract, and getting everything done that needs to get done before closing day, the last thing you want is any issues in the final hours before strolling through that front door like you own the place.

Unfortunately, there’s always a chance for some surprise issues to pop up on closing day.
Most closings go off without a hitch, but every now and then, life decides to throw a curveball.

Don’t worry, there’s no need to panic! Your buyers’ agent has probably seen every single thing that could happen on closing day before, and will help you stay calm and get any issues resolved, so you can still head to the closing table in a timely manner.

But it’ll certainly help if you know what could happen ahead of time. So, let’s take a look at 8 closing day surprises that might just pop up on closing day so you’ll be prepared to take a deep breath, address them, and head to the closing table:

1) A Year’s Worth of Trash at the Curb

If you head over to the house for your final walk-through on closing day and see a line of trash bags at the curb, you might want to make sure it’s going to be picked up by the trash collectors before signing on the dotted line. Once you own the house, you own the trash at the curb and will have to deal with it if the garbage truck keeps driving right on by because it’s more than they’ll accept.

Ask the owner to hire someone to swing by and haul it away before closing, or set aside some money in escrow to cover any expenses you may incur if you have to hire someone to do it.

2) The Seller Hasn’t Moved Out Yet

Sometimes sellers underestimate how much time they’ll need to pack up and move, and buyers will find them still in the house feverishly trying to vacate the premises.

If it looks like they’re going to be able to get it done in a few hours, just suggest pushing the closing back a few hours to give them some breathing room and make sure they’re out before the house is yours. But if it looks like they still need a few days, you might want to discuss pushing the closing until they’re cleared out. If you absolutely need to close that day, you should consider drawing up some paperwork to firm up how long they’ll have to vacate, and perhaps a daily fee, to protect yourself from the owner overstaying their welcome or doing any damage.

3) The Seller Took Something They Were Supposed to Leave

That old gag where someone makes a prank call asking the person on the other end if their fridge is running is funny because refrigerators don’t just get up and literally run. So, if the fridge was supposed to be included in the purchase of your home and it isn’t there on closing day, the chances are it didn’t walk out the door on its own.

Hopefully it’s an honest mistake, and not the owner trying to pull a fast one, but if you get to the house and find that something they should’ve left behind is missing — like the fridge, washer, dryer, or even a light fixture — ask them to replace it before closing, or credit you enough to replace it on your own.

4) The Seller Didn’t Fix Something They Agreed to Repair

Ideally the owner will forward proof that they repaired or replaced any agreed-upon home inspection issues ahead of closing day. But whether they did or not, you still want to make sure everything they promised to fix or replace was taken care of before heading to the closing.

If you find something wasn’t repaired or replaced, you should ask for money to be held in escrow so you can take care of it once you close on the house if it’s something minor or manageable. But if it’s a major issue that you would be concerned about taking on, you might be better off delaying the closing until it’s resolved.

5) The Lender Isn’t Wiring the Money

If you’re borrowing money from a lender, much of the paperwork you’ll do on closing day revolves around promising them to pay the money back. But before you can pay it back, they need to actually send it to you. Well, they won’t send it to you, per se. They’ll wire it to your title company or attorney, who will in turn give it to the seller. Unfortunately, sometimes the money isn’t wired on time.

This is almost completely out of your hands, unless of course they’re holding it up because you didn’t get them some paperwork they need. It’s usually just a matter of the lender being swamped, or dropping the ball, so don’t worry too much. Usually, you just need to let your agent, title company, and/or attorneys push the lender to get their act together and wire the money.

6) The Time Is Being Rescheduled

It takes more people to pull off a closing than you might think! Besides you, there can be title company reps, loan officers, attorneys, agents, the sellers who all need to be available at the same time for the closing.

Your best bet is to look at closing day as an entire day. Clear your calendar and be flexible, because there could easily be a shift in time to accommodate someone else’s schedule, or address any hiccups that occur before the closing occurs.

7) The Utilities Are Shut Off

If you get to the house for the final walk-through, or even show up to it after the closing, and the lights won’t turn on, or the gas stove won’t light, don’t worry! It’s probably not something wrong with the electric panel or stove, and just a matter of not having transferred the utilities into your name, and the previous owner having them turned off.

Most of the time this is something that gets coordinated before closing, but if it slipped through the cracks, it can usually be resolved with a phone call to the utility companies in a matter of minutes.

8) You Suddenly Realize How Much You’ll Miss Seeing Your Agent!

Your buyers’ agent becomes a huge part of your life during the process of buying a home! It’s common to speak with your agent more times in a day than you do with your best friend in a week while you’re working together. In fact, you might even feel like your agent is your bestie!

There’s no need to feel bummed out on closing day, though, because it isn’t the end of your relationship by any means. Sure, you might not speak multiple times a day, or see each other every week, but there’s a good chance you and your agent will keep in touch on a regular basis for years to come!

Courtesy: Lighter Side of Real Estate

Understanding the Importance of Credit Repair for Home Buying in California

 

When embarking on the journey to homeownership in California, one critical factor that often gets overlooked is the importance of credit repair. Your credit score is not just a number; it's a pivotal element that lenders use to determine your mortgage rates and loan approvals. Let's delve into why credit repair is essential for California home buyers, debunk common misconceptions, and explore the legal framework that supports free credit report corrections.

The Impact of Credit Scores on Mortgage Rates and Loan Approvals

In California, the real estate market is highly competitive, and having a good credit score can significantly influence the terms of your mortgage. A higher credit score can lead to lower interest rates, which means you'll pay less over the life of your loan. Conversely, a lower credit score might result in higher interest rates or even loan denial. Lenders view your credit score as a measure of your financial responsibility and risk level. Therefore, repairing your credit before applying for a mortgage is crucial to securing favorable loan terms.

Common Misconceptions About Credit Scores Among Home Buyers

Many home buyers in California hold misconceptions about credit scores that can hinder their home buying process. Some believe that having a lot of money in the bank or a high income automatically translates to a good credit score. However, your credit score is determined by your credit history, including payment history, debt levels, and credit utilization, not your income or savings. Another common myth is that checking your credit report can hurt your score. In reality, checking your own credit report is a soft inquiry and does not affect your credit score. It's vital to dispel these myths and understand what truly impacts your credit score.

The Legal Framework Supporting Free Credit Report Corrections

Under federal law, specifically the Fair Credit Reporting Act (FCRA), you are entitled to a free copy of your credit report every 12 months from each of the three major credit bureaus: Equifax, Experian, and TransUnion. This law also provides you the right to dispute any inaccuracies or errors on your credit report. The credit bureau must investigate the disputed information, usually within 30 days, and correct any inaccuracies. This legal framework empowers you to take control of your credit report and ensure it accurately reflects your credit history.

Starting Your Credit Repair Journey: Free Credit Review and Analysis

Embarking on the journey of credit repair is a pivotal step for California home buyers aiming to secure favorable mortgage rates and loan approvals. The process begins with a comprehensive review and analysis of your credit reports, which lay the foundation for identifying areas that need improvement. Here's how to start:

Obtaining Credit Reports from the Three Major Credit Bureaus

The first step in your credit repair journey is to obtain your credit reports from the three major credit bureaus: Equifax, Experian, and TransUnion. Each bureau may have different information about your credit history, so it's crucial to review all three reports. Under federal law, you are entitled to one free credit report from each bureau every 12 months through AnnualCreditReport.com. This is the only authorized website for free credit reports and a resource you should utilize to start your credit repair process.

Identifying Inaccuracies and Disputing Errors on Your Report

Once you have your credit reports, the next step is to meticulously review them for any inaccuracies or errors. Common errors include outdated information, incorrect account statuses, and transactions you don't recognize. Identifying and disputing these errors is essential because they can negatively impact your credit score.

To dispute an error, you need to send a dispute letter to the credit bureau that lists the error. This letter should clearly identify each disputed item, explain why you dispute the information, and request a deletion or correction. Including copies of documents that support your dispute can also strengthen your case. The credit bureau typically has 30 days to investigate your dispute and must inform you of the results.

The Role of Credit Repair Specialists and Law Firms in California

While it's entirely possible to undertake credit repair on your own, many home buyers in California choose to engage with credit repair specialists or law firms. These professionals can provide valuable assistance in navigating the complexities of credit repair. They are well-versed in the legal framework surrounding credit reporting and can often identify inaccuracies or issues that you might overlook.

Credit repair specialists and law firms can also handle the dispute process on your behalf, saving you time and ensuring that your disputes are filed correctly and efficiently. When selecting a credit repair partner, it's important to look for reputable professionals with a track record of success in helping clients improve their credit scores.

Strategies for Improving Your Credit Score Before Purchasing a Home

Improving your credit score is a crucial step for California home buyers. A higher credit score can unlock better mortgage rates and increase your chances of loan approval. Here are effective strategies to enhance your credit score before diving into the housing market.

Managing Existing Debts and Creating a Payoff Plan

One of the most impactful ways to boost your credit score is by managing your existing debts. High levels of debt can negatively affect your credit score, making it harder to secure a mortgage. Here's how to tackle it:

• List all your debts: Start by listing out all your debts, including credit card balances, loans, and any other financial obligations.
• Prioritize your debts: Focus on paying off high-interest debts first, as they cost you the most money over time.
• Create a budget: Allocate a portion of your income to debt repayment. Adjust your budget to cut unnecessary expenses and redirect those funds to pay off your debts faster.

Engaging with Creditors for Reasonable Payment Arrangements

Sometimes, managing debt requires negotiating with your creditors. If you're struggling to keep up with payments, reaching out to your creditors can be a wise move. Many creditors are willing to work with you to adjust your payment terms. This can include:

• Lowering interest rates: Some creditors may be willing to reduce your interest rate, making it easier to pay down the principal balance.
• Extending your payment period: Spreading your payments over a longer period can reduce your monthly financial burden.
• Waiving late fees: If you've missed payments, asking for late fees to be waived as part of a new payment plan can save you money.

The Benefits of Tailored Creditor Interventions and Legal Disputes

In some cases, improving your credit score may involve more than just paying down debt. If there are inaccuracies on your credit report or you're dealing with uncooperative creditors, tailored interventions and legal disputes can be beneficial.

• Disputing inaccuracies: Incorrect information on your credit report can drag down your score. Dispute any errors you find with the credit bureaus.
• Negotiating with creditors: If you believe a creditor has reported something inaccurately, negotiating directly with them can lead to corrections on your credit report.
• Seeking legal assistance: For complex issues, such as identity theft or errors that can't be resolved through standard disputes, consulting with a credit repair law firm can be a powerful step.

By adopting these strategies, California home buyers can work towards improving their credit scores, setting the stage for a smoother home buying process. Remember, the journey to a better credit score is a marathon, not a sprint. Start early, stay consistent, and seek professional advice when needed to ensure you're on the right path to homeownership.

Navigating Credit Repair Services: What to Look for in California

When embarking on the journey of credit repair, especially with the goal of buying a home in California, it's crucial to understand the landscape of credit repair services available. Not all services are created equal, and knowing what to look for can save you both time and money. Here, we'll explore the differences between credit repair companies and law firms, the effectiveness of unlimited bureau challenges, and how to evaluate the cost and value of credit repair packages.

Differences Between Credit Repair Companies and Credit Repair Law Firms

In California, you'll find two main types of organizations offering credit repair services: credit repair companies and credit repair law firms. Understanding the distinction between these two can significantly impact your credit repair journey.

• Credit Repair Companies: These entities specialize in disputing inaccuracies on your credit reports with credit bureaus. They are knowledgeable about the credit system and can navigate the dispute process efficiently. However, they might not always possess the legal expertise to handle complex credit issues that require legal action.

• Credit Repair Law Firms: These firms offer a broader range of services, combining credit repair services with legal assistance. They are particularly beneficial if your credit issues involve legal complexities, such as identity theft or fraud. Law firms can provide legal representation and are equipped to take more aggressive action against credit bureaus or creditors if necessary.

Understanding Unlimited Bureau Challenges and Their Effectiveness

A key feature to look for in a credit repair service is the offering of unlimited bureau challenges. This means the service will dispute an unlimited number of inaccuracies on your credit reports with all three major credit bureaus (Equifax, Experian, and TransUnion) without additional charges. This approach can be highly effective because it allows for a thorough cleanup of your credit report, addressing all inaccuracies that might be affecting your score.

Evaluating the Cost and Value of Credit Repair Packages and Services

When considering credit repair services in California, it's essential to evaluate both the cost and the value of the packages offered. Here are some factors to consider:

• Transparency: Look for services that are upfront about their pricing and what is included in their packages. Avoid companies that are vague about costs or promise unrealistic results.

• Customization: The best credit repair services offer customized plans tailored to your specific situation. Avoid one-size-fits-all approaches, as they may not address your unique needs effectively.

• Success Rate: Research the success rate of the credit repair service. Look for testimonials, reviews, and case studies that demonstrate their ability to improve credit scores.

• Support: Opt for services that provide excellent customer support, including access to credit counselors or legal advisors who can answer your questions and guide you through the process.

Table: Comparing Credit Repair Services in California

FEATURE	CREDIT REPAIR COMPANIES	CREDIT REPAIR LAW FIRMS
Services Offered	Dispute inaccuracies with credit bureaus	Dispute inaccuracies + legal assistance
Legal Expertise	Limited	Extensive
Cost	Generally lower	May be higher due to legal services
Best For	Simple inaccuracies	Complex legal issues

Taking Action: Steps to Repair Your Credit and Achieve Homeownership

Embarking on the journey to homeownership in California is an exciting endeavor, but it often hinges on one critical factor: your credit score. Repairing your credit is a pivotal step towards securing a mortgage with favorable terms. Here's how you can take action to repair your credit and move closer to purchasing your dream home.

Engaging with a Trusted Credit Repair Partner or Specialist

Finding a trusted credit repair partner or specialist is the first step towards improving your credit score. A reputable credit repair service can offer personalized advice and strategies tailored to your unique financial situation. When selecting a credit repair partner, look for companies or specialists with a proven track record of success in California. They should be transparent about their methods, provide clear communication, and have positive reviews from past clients.

Utilizing Free Credit Repair Services as Part of Mortgage and Finance Assistance

Many home buyers are unaware that free credit repair services exist, especially as part of mortgage and finance assistance programs. These services can be invaluable resources, offering guidance on how to dispute inaccuracies on your credit report and improve your overall credit health. Research local housing authorities or non-profit organizations in California that offer these services. They often provide workshops, one-on-one counseling, and tools to help you understand and improve your credit score.

Moving Forward with Pre-Approval and Securing the Best Loan Options

Once you've taken steps to repair your credit, the next action is to seek pre-approval for a mortgage. Pre-approval gives you a clear idea of what you can afford and shows sellers that you are a serious buyer. With a healthier credit score, you'll be in a stronger position to negotiate better mortgage rates and terms. It's essential to shop around and compare offers from different lenders to ensure you're getting the best deal possible.

Key Points to Remember:

• Choose a reputable credit repair partner: Look for transparency, a track record of success, and positive client feedback.
• Explore free credit repair services: Take advantage of programs offered by local housing authorities or non-profit organizations.
• Seek mortgage pre-approval: This step will clarify your budget and strengthen your position as a buyer.

Repairing your credit is a crucial step towards homeownership in California. By engaging with the right partners, utilizing available resources, and taking proactive steps to improve your credit score, you can increase your chances of securing a mortgage with favorable terms. Remember, the journey to improving your credit and achieving homeownership is a process, but with dedication and the right strategies, it's entirely within reach.