6 Factors That May Prevent You From Closing on Your Dream Home, Part II

In our last blog, we detailed three scenarios and problems that could potentially stand in your way of successfully closing on the home of your dreams, including title search issues, a low appraisal, and the failure to sell your old home.

For more information on these hurdles, click here to read Part I of this blog series.

Whenever you seek to buy a home, always keep in mind that a successful closing is not a foregone conclusion simply because a seller accepted your offer. Today, we will explain three more issues that could spoil your closing and cause your home purchase to fall apart. If you have more questions or would like to discuss your specific real estate closing situation, please call the Law Office of Ray Garcia today.

4) Inspection issues

You should be having at least a couple of very important inspections done on the home before closing. First is the overall home inspection. This is a comprehensive process in which a certified home inspector examines your potential home head-to-toe for possible issues and repairs that will need to be completed. There is a laundry list of issues that inspection could turn up ranging from faulty appliances, furnaces, and HVAC systems, to even more serious structural and electrical issues. Secondly, your inspection process should include a professional pest inspection. In particular, the pest inspector will be looking for termite damage that could indicate much more severe structural issues with the house. If either of these inspections turn up major issues, you may be able to request to have the seller try to remedy them, but they are under no obligation to do so and the issues could easily prevent you from closing on the home.

5) Your loan falls through

If you ask just about anyone who has been through it, the underwriting process for your home loan is oftentimes about as pleasant as the flu. Your lender will be digging through every minute aspect of your life and finances to minimize their risk of issuing a loan that will result in a foreclosure. You can lower your risk of losing your financing during the underwriting process by getting preapproved for your loan, but other factors could still cause even a preapproved loan to fall through. For example, you could lose your job or there could be major changes in your creditworthiness. If your loan falls through and you don’t have the cash to foot the entire bill for the home, you will have no way to complete your purchase.

6) Backing out

You may clear every hurdle on the road to closing only to have a change of heart and decide that the home is not right for you. Conversely, the sellers could also get cold feet and back out. Even if everything works out perfectly, until those final papers are signed, the home is not yours and either party could decide not to follow through with the sale.

Don’t forget to check out Part I of this blog to read about more potential pitfalls that could stand in the way of your home purchase.