How Can a Real Estate Transaction Get Ugly?
If you’re not careful, your real estate purchase could turn ugly.
Here are six mistakes that you need to avoid.
Here are six ways that your real estate transaction can get ugly:
1. If you have a change in credit score between the time a lender first evaluates your finances and the time you close, it can cause you to lose your loan and lose your new home.
2. Getting scared by issues that might come up during the inspection. No matter the age of the house you’re purchasing, the inspection report will come back with pages and pages of repairs to be made. We’ll let the small things go, but anything that’s large, structural, or mechanical will be renegotiated with the seller. They will either take care of the repairs before closing or make sure you have the funds to do so yourself.
3. Not getting pre-approved in advance for your loan. It’s really important that a lender checks your finances in advance.
4. Not working with a local lender. While transactions can go OK with big-box banks, there are times when these banks don’t close on time and communication can be rocky.
5. One party takes a small problem out of proportion or gets cold feet.
6. The buyer loses their job before closing. This hasn’t happened to us, but we do know of instances where transactions fall apart on the day of closing after the buyer had just quit or lost their job. When this happens, the buyer usually can no longer qualify to buy the home.
If you have any questions for me about this list or about anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.