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!
- 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.
- 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.
- 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.
- 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.
- 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 firstname.lastname@example.org for assistance or with any questions.