Overcoming Potential Problems in Home Buying

Potential Problems in Buying a Home:

The list below are potential problems that may occur during a real estate transaction. This signifies the importance of hiring a knowledgeable & experienced Realtor to handle every issue that may occur from contract to closing. Hire the professionals at Orlando Vacation Realty as we are experienced problem solvers!

The Buyer/Borrower:

  • Does not tell the truth on the loan application.
  • Submits incorrect information to the lender.
  • Has recent late payments on credit report.
  • Found out about additional debt after loan application.
  • Borrower or Co-Borrower loses job.
  • Income verification lower than what was stated on loan application.
  • Overtime income not allowed by underwriter for qualifying.
  • Applicant makes large purchase on credit before closing.
  • Illness, injury, divorce or other financial setback during process.
  • Lacks motivation.
  • Gift donor changes mind.
  • Cannot locate divorce decree.
  • Cannot locate petition or discharge of bankruptcy.
  • Cannot locate tax returns.
  • Cannot locate bank statements.
  • Difficulty in obtaining verification of rent
  • Interest rate increases and borrower no longer qualifies.
  • Loan program changes with higher rates, points and fees.
  • Child support not disclosed on application.
  • Borrower is a foreign national.
  • Bankruptcy within the last 2 years.
  • Mortgage payment is double the previous housing payment.
  • Borrower/co-borrower does not have steady 2-year employment history.
  • Borrower brings in handwritten pay stubs.
  • Borrower switches to job requiring probation period just before closing.
  • Borrower switches to job from salary to 100% commission income.
  • Borrower/co-borrower/seller dies.
  • Family members or friends do not like the home that the buyer chooses.
  • Buyer is too picky about property in price range they can afford.
  • Buyer feels the house is misrepresented.
  • Veterans DD214 form (Discharge Papers) not available.
  • Buyer has spent money needed for down payment and closing costs and comes up short at closing.
  • Buyer does not properly “paper trail” additional money that comes from gifts, loans, etc.
  • Does not bring cashier’s check to title company for closing costs and down payment.

The Seller:

  • Loses motivation to sell (job transfer does not go through, reconciles marriage, etc.)
  • Cannot find a suitable replacement property.
  • Will not allow appraiser inside home.
  • Will not allow inspectors inside home in a timely manner.
  • Removes property from the premises the buyer believed was included.
  • Is unable to clear up liens against their property – short on cash to close.
  • Did not own 100% of property as previously disclosed.
  • Thought getting partners signatures were “no problem,” but they were.
  • Leaves town without giving anyone Power of Attorney.
  • Delays the projected move-out date.
  • Did not complete the repairs agreed to in contract.
  • Seller’s home goes into foreclosure during process.
  • Misrepresents info about home/neighborhood to the buyer.
  • Does not disclose all hidden or unknown defects and they are subsequently discovered.
  • Builder miscalculates completion date of new home.
  • Builder has too many cost overruns.
  • Final inspection on new home does not pass.
  • Seller does not appear for closing and won’t sign papers.

The Realtor(s):

  • Have no client control over buyers or sellers.
  • Delays access to property for inspection and appraisals.
  • Unfamiliar with their client’s financial position – do they have enough equity to sell, etc.
  • Does not get completed paperwork to the lender in time.
  • Inexperienced in this type of property transaction.
  • Takes unexpected time off during transaction and can’t be reached.
  • Jerks around other parties to the transaction – has huge ego.
  • Does not do sufficient homework on their clients or the property and wastes everyone’s time.

The Property:

  • County will not approve septic system or well.
  • Termite report reveals substantial damage and seller is not willing to fix or repair.
  • Home was misrepresented as to size and condition.
  • Home is destroyed prior to closing.
  • Home not structurally sound.
  • Home is uninsurable for homeowners insurance.
  • Property incorrectly zoned.
  • Portion of home sits on neighbor’s property.
  • Unique home and comparable properties for appraisal difficult to find.

The Closing Agent/Title Company:

  • Fails to notify lender/agents of unsigned or unreturned documents.
  • Fails to obtain information from beneficiaries, lien holders, insurance companies, or lenders in a timely manner.
  • Lets principals leave town without getting all necessary signatures.
  • Loses or incorrectly prepares paperwork.
  • Does not pass on valuable information quickly enough.
  • Does not coordinate well, so that many items can be done simultaneously.
  • Does not bend the rules on small problems.
  • Does not find liens or any title problems until the last minute.

The Appraiser:

  • Is not local and misunderstands the market.
  • Is too busy to complete the appraisal on schedule.
  • No comparable sales are available
  • Is not on the lender’s “approved list.”
  • Makes important mistakes on appraisal and brings in value too low.
  • Lender requires a second or “review” appraisal.


  • Pest inspectors too busy to schedule inspection when needed.
  • Pest inspectors too picky about condition of property, hoping to create work for them.
  • Home inspectors not available when needed.
  • Inspection reports alarm buyer and sale is cancelled.

Call us toll free 1-888-217-6034, locally 1-863-424-3580 or email us for assistance or with any questions.