Closing is an important yet equally annoying part of home selling! Often this closing on a home stall homes sellers, especially when a prospective buyer refuses to seal the deal at the last minute.
Did your home selling offer get accepted? But hold on- the property is still isn’t yours yet. Even after the purchase offer has been given approval, there’s still a lot that goes behind the scenes that serve to a slip between the lip and the cup.
What can go wrong doesn’t really have to & this is true to the core with we buy houses all cash Long Island offers! As they say: It’s always better to be safe than sorry. Here are 10 of the most common hurdles to avoid when aiming to fast close a new home.
1. The Appraisal Is Too Low
A home appraisal is a significant part of the process that can’t go amiss. It is usually carried out for taxation purposes, as an integral part to buy or sell a house.
Appraisers employ a variety of methods to get a fix on the value of a property.
The bank will get the home appraised. Again, this is done solely at your expense. This appraisal holds significance because it protects the lender’s interest in the house. The bank ensures the home is worth the price you will be paying for it, so if a foreclosure happens, it can cope with the loss. If the appraisal is ridiculously low, the seller will have to lower the selling price too.
2. There Are Clouds on the Title
Title insurance safeguards you and the lender against any future claims to the property. In case there is some lien or claim against the property, the issue will be resolved before moving further with the transaction.
3. Home Inspection Shows Defects
If the home inspection shows signs of trouble, the purchaser can back out at any moment. Thus, if you don’t put this contingency in your contract, you may end up washing away all your hard-earned money.
If you want to proceed, negotiating with the seller to make repairs can impact the purchase process and eventually delay your closing. You can prevent this delay by asking the seller to credit you money at the time of the closing.
4. One Party Gets Cold Feet
We buy houses all cash Long Island holds an upper hand, and there’s a reason why! This process usually outlines justifiable reasons for either the buyer or seller- so that no party suffers cold feet in any way.
Suppose you decide after waiving the contingencies that you no longer look forward to making the purchase. In that case, you are going to lose the earnest money.
The reason for that loss is definitely the financial ramifications for the seller. Whereas the earnest money will help compensate the seller for the time the home was off the market.
In case, the seller decides to back out due to a sudden change of mind or because someone made an offer they find more lucrative, you will have a legal right to collect damages.
5. Your Financing Falls Through
Smart buyers don’t make an outright offer on homes until they get a preapproval. That implies getting a written loan commitment via a bank. In turn, sellers don’t accept offers from buyers till it is preapproved. If you’re a seller, also remember that pre-qualified isn’t similar to preapproved.
However, there is a list of things that can prevent a loan from closing. For instance: You were not honest while filling the application, interest rates might increase, your job situation could change, or your credit score may fall.
Ask your lender for an easy way out of the problems like these. Furthermore, potential lenders will have a viable explanation if financing fizzles out.
6. Errors Prevent Closing on Time
There’s a lot that goes behind the scenes involved in closing escrow. Even a minor mistake can put unnecessary hassle for the closing to happen. Depending on your purchase contract and the one responsible for the delay, you may have to pay the seller a penalty every day the closing is delayed.
In a best-case scenario, the seller could simply say yes to extending the closing date, on a no penalty basis. The seller could also say no and might not extend the closing date, making the whole deal experience a great fall. After all, if the deal doesn’t close, the seller will also have to kickstart the process right from the start.
The Bottom Line
Transferring ownership of a home isn’t as easy and simpler as a walk in the park. There’s a lot that goes behind the scenes to make it happen for real, and there can be significant ramifications if anything fails or falls.
Even when everything is smooth and crystal clear, the process can still be excruciatingly stressful for buyers. Buyers have to go through a complex and sometimes unfamiliar process while making tough decisions about what probably turns out to be the most expensive purchase ever. It’d be better to take the time to thoroughly consider, familiarize yourself with the escrow process and its potential pitfalls. That way, you’ll be entirely ready for what is coming up, steer ahead in the race and make it to closings faster.