Common Hindrances When Buying a House

Think about this: you finally have your finances in order and you’re all set to go house-hunting. You locate a property that’s too perfect for words and the owners decided that, out of all the offers they have received, they will accept yours. All that needs to be done is to sign the papers and pick up the keys so you can call yourself a proud homeowner. No sweat, right?

Too early to say, really. Nowadays, anything can go wrong when buying or selling in real estate and, if things really don’t go your way, you’ll probably end up not getting a house, after the time and money you’ve spent trying to buy one. These are a few of the common when-good-deals-go-bad situations, as well as how you can shield yourself from them.

1.       The seller is hiding something. When a buyer discovers something suspicious about a house, they will refuse to buy it, which is why some sellers would rather keep the buyer in the dark. There are times when you won’t discover that there are issues concerning finances and ownership until a title search is conducted. For example, if the owner of the house has filed for bankruptcy and a lot of creditors are after him, then this means the buyer will not be the only one with a valid claim to the home.

Defense mechanism: Apply for a title insurance so that your claim to the property will be protected.

2.       Your mortgage pre-approval gets cancelled. The lender may have promised that they will lend you money to buy a house, but that doesn’t mean that they are obligated to do so. If they feel like you are making a risky investment with the property that you chose, they can and will refuse to give you a loan. A few instances that a lender might see as high-risk are boundary issues, legal problems and clashes with neighbors.

Defense mechanism: When you go to a lender for a mortgage pre-approval, ask about its concreteness, as well as the situations that may force them to take back your pre-approval.

3.       The home appraisal comes in low. The real value of a certain home can be determined when a home appraisal is done. The usual set-up is that the lender is the one that picks the appraiser; this is to make sure that the home you have chosen is not overpriced. Therein lies the problem: if the appraiser gives a low evaluation of the property’s price, the lender will not agree to your loan application even if you have already struck a deal with the seller. In addition, there are times when the actual home isn’t the problem; you are guaranteed to get an inaccurate home appraisal if the appraiser chosen has little experience or is not very familiar with the neighborhood.

Defense mechanism: If you are given an option to choose the appraiser, be sure to get one who is very experienced and is familiar with the community so that the appraisal will be accurate.

Failing to notice certain parts of the deal can result in an unsuccessful real estate deal. Prior to finalizing a property purchase, make sure that you have looked at the deal from every angle so that nothing will be amiss.