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What common problems can arise at closing on a house?

On Behalf of | Mar 15, 2018 | Real Estate Transactions |

You’ve probably heard an ounce of prevention is worth a pound of cure. That is perhaps no truer than when you are buying or selling a home in Florida. Regardless of the side of the transaction you are on, there can be potential pitfalls.

If you are involved in a “for sale by owner” (FSBO) deal or working through a real estate agent, unexpected issues can surface that delay or derail the transaction. What follows are some of the most common possible snags and some thoughts on avoiding them.

The buyer can’t get the full mortgage sought

Just because a buyer and seller agree on terms for the purchase of a home doesn’t mean the bank will back a mortgage. A lot depends on the property appraisal. If it comes in too low, the bank might lower the amount applied for. Rather than let the sale die, it might be advisable to seek a second opinion from another qualified appraiser.

The bank turns down the application in total

All-cash purchases are rather rare in real estate. Some kind of loan is usually needed. If you are a buyer, you will want to foster solid communication with your banker from the moment you submit your application on up to the closing. If issues do develop, you’ll be in a better position to resolve them and see the deal to fruition.

Inspections reveal significant problems

Most lenders won’t agree to a loan without checks for pest infestations or structural issues. If trouble is discovered, the buyer and seller may have to negotiate remedies. Purchase agreements can anticipate these sorts of matters by including clauses that allow the buyer to put the burden of fixing problems on the seller.

While FSBO transactions are popular, the processes can be legally complicated. When the dreams of two parties are at stake, there’s good reason to avoid missteps.