After several rounds of offers, counter-offers, and negotiations, it's a huge relief to settle on a price for your dream home. However, it's not time to move in just yet. Unfortunately, there are still a lot of potential obstacles that could get in the way of your closing, from title confusions to problems with the home inspection. Below are a few issues that might throw a wrench into your home purchase.
What Are Common Issues With Real Estate Closings?
1. Low Appraisal
You might be sure the home is worth the price you've agreed to, but the lender has to protect their interests, too. If the appraiser says you're paying over the market value, the bank might decide not to finance the sale.
2. Paperwork Problems
Getting a loan is usually the most stressful part of buying a home, as it involves stacks of paperwork and years of financial documentation. An honest mistake or forgotten pay stub could cause your application to be denied, which is why it's usually best to get pre-approved before you start house hunting.
3. Termite Damage
An active termite infestation could cause tens of thousands of dollars in damage, which will usually make lenders think twice about issuing a loan. Even if the damage is several years old, a positive termite inspection could spell trouble for your sale.
4. Title Issues
Before closing, the title company will do a detailed search to make sure the title to the property is free and clear. If they detect a lien or someone else with a competing claim to the house, you might not be able to close until the seller can clear the title.
5. Failed Home Inspection
If your home inspection reveals serious defects, like unsafe wiring or a crumbling foundation, you might have to start negotiations all over again. Unfortunately, if the seller won't agree to lower the price or make repairs before closing, you may have no choice but to walk away from the sale.
If you’re buying a house on Long Island, trust the professionals at New Home Inspectors in Huntington Station, NY, to help you make an informed decision. They have over 30 years of industry experience and a reputation for fast turnarounds, one-on-one communication, and dependable results. Learn more about their services online, or call (631) 368-1800 to schedule your home inspection today.