Today we’re talking about three 3 Biggest Things That Could Go Wrong When You Bought House.
As you know buying a home is a huge financial transaction and there are a lot of things that have to happen.
From the time you go under contract to getting you to the closing table.
So today I just wanted to go over the top three things that can go wrong that can cause a contract to fall through.
3 Biggest Things That Could Go Wrong When You Bought House
So the first thing that can go wrong is the inspection.
You finally find your home you submit an offer it gets accepted now you’re under contract and the first thing you’re going to have has the home inspected.
This is probably the most common place where a contract falls through.
Fix Some Of The Problems
If there are just too many problems with the home or at least more problems than the buyer is willing to deal with and the seller isn’t willing to maybe come down in price or fix some of the problems.
Then the buyer can decide to back out and your realtor will keep you posted on how much time you have to back out to get your earnest money back.
So during your due diligence time when you have your inspection, you also need to do other research on the home.
You know find out more about the school district or the crime statistics and things like that.
And if there’s anything that comes up that is not okay with you and that’s a good time to back out because you can still get your earnest money back during your option period here in texas.
No Home Is Perfect
One of the things that I like to point out to buyers is that no home is perfect.
So as long as you don’t have that expectation that you’re going to get a perfect home.
It’ll make the inspection time go a little bit better for you.
Even with a new build, you’re going to find problems.
The nice thing about a new build is once you have your inspection you can give that report over to the builder and they’ll just go through and fix all the problems.
“With a resale that’s not the case”.
So it’s a good idea to determine before you start looking at homes.
What You’re Willing To Deal With?
Are you okay with a fixer-upper and you want to dig in there gut things out, make it your own, and all the things?
Then you’ll be fine with looking at older homes.
But if you’re the type of person who says no I don’t like doing that stuff, I don’t want to do that stuff then you know ask to see newer homes or new builds.
You know the newer the home the cleaner the inspection report is probably going to be unless it got really well lived in a couple of years but generally speaking.
2. Low Appraisal
The second common thing that can go wrong when buying a home is a low appraisal.
Now if you’re buying the home with cash, a lender needs to have an appraised.
A lender is only going to loan on the amount that it’s appraised for or I mean if it comes under.
Now if it appraises for more at asking or more then it doesn’t matter and we can move forward nothing happens.
But if it comes in lower than the price that we’re under contract for then that’s another hurdle we got to deal with.
Best Case Scenario
The seller will come down to that appraised price and now you’re getting the house for even less money.
Worst Case Scenario
The seller won’t come down in price and you’re not willing to pay the extra or you guys can’t come you know meet halfway in the middle maybe.
And so therefore you may determine to terminate the contract at that point.
3. Don’t Get The Final Approval For The Loan
The third more common problem that can occur when buying a home is that you don’t get the final approval for the loan.
And usually, we don’t get the final approval until close to the closing date.
“I’ve seen it happen where a loan got denied two days before closing and people had to scramble to come up with a plan b quick”
So it’s always a good idea to have a plan b in place just in case something goes wrong with getting the loan.
So just keep that in mind that it’s not a done deal until everything’s been closed and funded.
How to Avoid That Situation?
One of the ways I can help avoid that situation of course is to work with a very reputable trustworthy professional lender.
You know ask your agent or your friends and family if they’ve had good experiences with certain lenders.
They’ll be able to help advise you with who to work with.
So it’s a great idea to go with a good lender with a good track record.
So when you’re going to buy a home just be prepared that these things could potentially happen to understand that no home is going to be perfect.
Potential For A Home Not Appraising
And there’s a potential for a home not appraising for the home for the price that you’re under contract for.
And there’s always a possibility that somehow the loan is not going to get approved.
So if you can prepare yourself for these things and take some steps to avoid these problems you know the transaction will go a little more smoothly hopefully.
So, of course, other things can go wrong too but these are the more common ones that I wanted to just touch base on with you all so.
If you have any questions please feel free to reach out to me on the comment session and Thank You.