What's your strategy for resolving closing and settlement issues?

Closing and settlement are the final steps of buying a home, but they can also be the most stressful and complicated. You may encounter unexpected issues, delays, or disputes that can jeopardize your deal or cost you money. As a first-time home buyer, you need a strategy to resolve these issues and protect your interests. Here are some tips to help you prepare for and handle closing and settlement issues.

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1 Review your documents

Before you sign anything, make sure you review your documents carefully and understand what they mean. These include your loan estimate, closing disclosure, title insurance, deed, mortgage, and any other contracts or disclosures. Look for any errors, discrepancies, or changes from what you agreed to. If you find any, contact your lender, title company, or attorney right away and ask for clarification or correction.

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Thomas Gilliam

Farmington Hills and Oakland County Michigan Realtor Tom Gilliam at RE/MAX Classic
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Open communication is my first step in resolving any closing issues. I ensure all parties—buyers, sellers, agents, and attorneys—are aware of any hitches. I then quickly identify and prioritize the problem, whether it's paperwork errors or property disputes. For complex issues, I consult experts like real estate attorneys or mortgage brokers for advice. Negotiation is key; I work diligently to find a win-win solution that satisfies all parties. All agreements are meticulously documented to ensure legal adherence. Post-closing, I follow up to ensure all terms are being met, reinforcing long-term relationships with my clients. Tom Gilliam RE/MAX Classic

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2 Hire a professional

You don't have to go through closing and settlement alone. You can hire a professional to represent you and advise you on legal, financial, and contractual matters. This could be a real estate attorney, a closing agent, or an escrow officer, depending on your state and situation. A professional can help you negotiate terms, review documents, handle funds, and resolve disputes. They can also protect you from fraud, scams, or liability.

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Phoenix S. Ayotte, Esq.

Chief Operating Officer, Speedwell Law PLLC
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Never waive a home inspection! Even if you waive contingencies, you should always have a home inspector go through the home with you and provide you documentation and a report, so that you can refer to that at the final walk-through. That is how you ensure the property is conveying, according to the contract, in the same condition it was on the date of ratification.

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3 Communicate with your team

Closing and settlement involve many parties, such as your lender, seller, agent, title company, inspector, appraiser, and attorney. You need to communicate with them regularly and keep them updated on your progress and expectations. You also need to respond to their requests and questions promptly and provide any documents or information they need. By staying in touch and being proactive, you can avoid misunderstandings, delays, and conflicts.

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Phoenix S. Ayotte, Esq.

Chief Operating Officer, Speedwell Law PLLC
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Your settlement team/title attorney needs to know the following things as far in advance as possible so that they can make your settlement go smoothly: if you will be conveying the property into an LLC/Trust, using a 1031 exchange, are using any type of grant program or government agency such as the Veteran's Administration/FHA. Make sure you are communicating regularly with your lender and getting them every piece of information they need- holding up verification of employment, or something else requested, delays the lender disclosing the loan package to the settlement agency, which means we cannot produce the settlement documents and tell you what funds you need to bring to closing day. :)

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4 Be flexible and realistic

Closing and settlement are not always smooth and predictable. You may encounter unforeseen issues, such as repairs, liens, title defects, appraisal problems, or funding delays. You need to be flexible and realistic about how to deal with them. Sometimes, you may have to compromise, renegotiate, or extend your closing date. Other times, you may have to walk away from the deal or seek legal action. You need to weigh your options and decide what's best for you.

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5 Prepare for closing day

Closing day is the final step in the home buying process, when you sign the documents, pay the closing costs, and receive the keys to your new home. Therefore, it's important to confirm the date, time, and location of the closing with your agent or attorney. Additionally, you should bring a valid photo ID, a cashier's check or wire transfer for the closing costs, and any other documents or items you need. Before signing any documents, review them again and ask any questions you have. Additionally, make sure to keep a copy of everything you sign and get a receipt for your payment. Finally, celebrate this major achievement and enjoy your new home!

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Phoenix S. Ayotte, Esq.

Chief Operating Officer, Speedwell Law PLLC
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Ensure that you are not doing the final walk-through one hour before closing- have your agent do a pre-walk through so that last minutes discrepancies don't throw off your deal. We have had days of celebration turn into grinding hours after hours of negotiation and delays where the parties walk away exhausted, and the entire loan must go back through underwriting, to approve an agreement between seller/buyer due to discrepancies at the final walk through.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What's your strategy for resolving closing and settlement issues?

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1 Review your documents

2 Hire a professional

3 Communicate with your team

4 Be flexible and realistic

5 Prepare for closing day

6 Here’s what else to consider

Working with First-Time Home Buyers

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