Quite often, buyers are finding that their home purchase has failed. In fact, more than 4% of home sales are not making it to the closing table, for one reason or another. So, as a buyer, how can you protect yourself and get the purchase of your new home completed? Here’s a few ideas.
Prepare For The Inspection
Surprises almost always crop up in the home inspections. The older the home, the more likely there will be inspection issues.And this is more prevalent in homes built between 1959 and 1969. As a matter of fact, 5.2% of these homes failed to close. Go into the process with the mindset that the age of the home will probably reflect the condition – and the price. Remember, it’s not new construction. If you expect everything to be in tip-top shape, you’ll probably be disappointed.
Prepare to Negotiate
We always tell our buyers to not worry about the small stuff. If an electrical outlet cover is cracked, buy a new one for less than $1.00. It’ll take a minute to replace it. However, you should worry about the big ticket items. If the roof, the furnace or the air conditioner are at the end of their life span, don’t be afraid to negotiate through your attorney. After all, you have every right to renegotiate for anything major. Take the advice of your Realtor and your attorney on how to proceed. Any items agreed to under the inspection should be verified at the walk thru. Bring a copy of the letters so you know what to verify.
Watch Your Credit
We’ve seen it happen where, while waiting for the closing, people go on a spending spree. They buy new furniture or a new car. Then, 2 days before the closing their lender pulls a final credit report. And these purchase may affect your debt-to-income ration. This can affect your mortgage. And if you’re relocating an will change jobs, don’t tell your employer that you’re leaving. They may just tell you to leave now. Then, when the lender makes a final employment verification. this could be another cause of a failed home sale..
Paperwork, Paperwork and more Paperwork
Your attorney will supply a list of documents you’re need to bring to the closing. Make sure you bring everything which is required. Typical documents include drivers license and/or passport. proof of homeowners insurance and more.
If you handle things properly, you’ll greatly reduce the risk of a Failed Home Purchase. When you’re ready to either buy or sell a home, contact us and let us help you.
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