It’s a big deal for most people when they finally buy a house. After months of preparation and planning, they want to close the deal with confidence. However, there are many factors that can go wrong when it comes to buying a home. This article aims to help both buyers and sellers avoid common issues.
Problems with Inspection
Although no home is perfect, there are differences between complicated and straightforward problems. In some cases, the buyer may have no choice but to point out an inspection contingency. This can be costly, but the deal may be salvageable depending on the seller’s position.
Some of the most common material issues that can show up during an inspection are repeated flooding, non-compliant additions and renovations, toxins in the home, and issues with the HVAC system. Other common issues include cracks in the trunk line, tree roots invading a sewer line, and insulation that’s in need of replacement.
Appraisal Falls Short
A house appraisal can fall short of what the seller, the agent, and the mortgage consultant think it’s worth. This can cause the lender to withdraw their final approval.
If the buyer can’t find an acceptable appraisal, they can negotiate with the seller to get a better price. Another option would be to take advantage of the purchase agreement’s appraisal contingency.
Financing
Some buyers who have a tight budget may not be able to get a mortgage due to delays in the loan underwriting process. To avoid getting rejected at the last minute, the buyer should be very careful with their bank and credit accounts. Before applying for a mortgage, the homebuyer should speak with a mortgage consultant to ensure that they can afford to pay the mortgage.
Although financial emergencies can never be predicted, they can still happen. Some of the other factors that can affect a potential home purchase include health issues or relationship problems.
Title Issues
When a home purchase involves a lender, the title search can reveal a lien that the seller didn’t know about. If the lien is easy to pay off, the money can be returned to the seller’s account at closing. Sometimes, a more serious title issue can prevent the seller from closing. For instance, if an heir’s interest in the property shows up, the seller might not be able to complete the sale.