Last-minute plot twists of becoming a homeowner

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Published Date 2/14/2025

You’ve dreamed of this moment and now it’s here. The keys to your new home (or one with previous experience) are in your hands and it’s closing day — when all those signatures, initials, and fingerprints make it your own.

Realtor.com’s Lisa Kaplan Gordon acknowledges that a real estate closing is an anxiety-inducing time, even if it goes smoothly. But when you run up against the unexpected emotions can run high.

Gordon tells her own story — that of having bought a “teardown lot” in McLean, VA, where her dream was to build her “Downton Abbey”–style manor. The deal went forward without a hitch—that is, until closing day.

“Soon after I arrived at the title company's office on the big day, my real estate agent sheepishly handed me a set of 40-year-old covenants that restricted what I could build on the site,” she says. “Looking back, I know that I should have smiled politely at the six people gathered and suggested we reconvene later after I'd studied this giant wrench in my plans. But I didn’t want to inconvenience everyone, so I closed the deal.”

She goes on to say she regrets not taking the time to go over everything. “Even though those covenants didn't derail my dream home's construction, they caused me constant anxiety.”

Some last minute issues are minor and easy to solve. Others? They can turn a dream into a nightmare. The first chink might be the walk-through — the top reason for surprises on closing day. It’s your final inspection of the home and generally takes place a day or so before settlement — or even on closing day morning. In other words, there's little time to prepare for whatever problems might pop up.

A sudden storm could have poured water into the basement, or now that the furniture is all gone, cracks in walls or other flaws may be exposed.

Then there are physical property issues. Misunderstandings about items that were supposed to stay or be removed can crop up. “For instance, maybe you loved the seller's antique stove, ceiling fan, or other household item and assumed it would stay—but you find out the sellers took it with them,” says Gordon.

As for the money side of things, perhaps you were approved for a mortgage a month or so earlier and now they’re saying they need more documentation from you. Even small changes in your financial picture since then can affect your credit score, creating problems up to the moment you close on the property. Changing jobs, applying for a credit card, falling behind in paying bills, and even sudden infusions of cash can red-flag your deal. If a lender withdraws the offer, you won't be able to close until you secure another mortgage, which could take weeks. Or, if the lender wants to increase your interest rate, as it usually does in these situations, then you'll have to decide if you can still afford the purchase.

More money-related SNAFUs at closing? Now it’s time for the transfer of funds. Some financial institutions and title companies prefer cashier’s or certified checks; others want funds to be transferred electronically. Show up with the wrong paperwork or account numbers, and you'll be left scrambling.

On to title company roadblocks. The title company is the entity that confirms details about your property such as past ownership, liens, and the aforementioned covenants. Issues such as setbacks, unpaid debts, and clouds on title can raise their heads. Covenants regarding rules that accompany the property are now revealed, such as what happened to Gordon. Any and all title defects must be fixed before you can close on the property.

How to anticipate or fix any of these? Some heads-up solutions to prepare for:

For walk-through issues such as damage to the property between when you made your offer and closing day, don't be shy about asking for another look-see. “A last-minute discovery of a problem is not necessarily a deal breaker,” says Gordon. “Simply ask the seller to cover the cost of those repairs, placing the funds in escrow. Then be sure to come with estimates from professionals on how much those fix-its will cost.”
As for physical items in the house, delineate in a contract what remains in the house or must be moved out. Be very detailed on what’s staying and going and be especially diligent during your initial inspection. Just make sure the contract reflects your expectations.
Last minute finance issues? To head this issue off at the pass, contact your lender the day before closing to discuss and solve any issues that may have turned up, but long before that, avoid making any sudden financial moves in the weeks leading up to the close — changes like quitting your job, buying a car on credit, or draining savings to have new furniture delivered after closing day. Even receiving a sudden gift from a family member to help out with homebuying can throw a wrench into the process.
As for title issues, problems like tax liens (unpaid HOA dues?), a claim on the property from a relative or co-owner, or unexpected covenants are usually not deal breakers, but any and all title defects must be fixed before you can close on the property. Get in touch with the title company and have them take a final look to prepare you for any surprises. Sometimes even the seller is clueless about them.

Realtor, TBWS

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