October 26, 2016
Shopping for a new home is exciting, but it can quickly become frustrating when it doesn’t go your way. When the bank pre-approves you for less than you wanted to spend, when someone else makes a higher offer on your dream home and you lose out, or when the inspector finds something concerning during the closing process on your house, it can stress you out. Everyone wants the perfect home for the best price. The home-buying process is a long one, and it’s only getting longer as new regulations in the real estate, mortgage, and banking industries are introduced.
Seamless might not be a word many use to describe the process of buying a home, but understanding the common issues that occur in the process can make the entire situation a bit more bearable. Unrealistic expectations make for very unhappy homebuyers and sellers, but educating yourself on all that could go wrong can make a difference. There are a few things that commonly go wrong during the buying process, and understanding them may be useful.
Document Errors
It’s frustrating when you’ve decided that it’s time to buy a house, and someone else makes a mistake that costs you. Document errors can happen at any time, from the day you submit your pre-approval to the bank. Perhaps the bank misspelled your name during their credit check, and your request for pre-approval was denied. Perhaps the realtor submitted an incorrect offer on your behalf, and you lost the house because of it. Perhaps the date of closing is here, and you find your paperwork is filled with mistakes.
This can throw the entire process off-track. It’s one of the many reasons why having a skilled Phoenix AZ real estate attorney to assist you with your paperwork in advance may be beneficial. Locating mistakes before it’s too late may speed up the process of closing significantly.
Title Issues
It’s one of the most common mistakes in the real estate industry, and it’s frustrating. The title of the property must be free and clear for a sale to take place, and finding out that it’s not can be heartbreaking. The previous owners might owe a contractor money and have a lien on the property, which could prevent it from being sold. To prevent this from becoming a problem, check the title as soon as the title company issues it to the lender. You’ll still need title insurance in case anything goes wrong later with the title, but having this information in advance is helpful.
Walk-Through Issues
You’ve already had the home inspected, the entire closing process is ready to go the following day, and all you have to do is your final walk-through. Unfortunately, the walk-through doesn’t exactly go according to plan. Something happened between the inspection and the final walk-through. If the home is occupied, it could be that the seller spilled red wine all over the white carpet and there’s a noticeable stain you didn’t purchase. A hole in the wall, the fixtures are missing even though they’re in the contract for sale, or the high-end appliances you bought with the home have been replaced with older models. If the house is vacant, someone could have broken in and caused damage, or a storm could have caused damage. Letting your agent or real estate attorney know immediately may help the issue get handled before closing. It can make or break the closing if the seller refuses to fix the issues. In some cases, the buyer can agree to handle it themselves. The advice of an attorney may help you decide what to do.
Anything can happen when buying a home, but knowing what’s most likely to happen may prepare you for the worst. Buying a home can be a lengthy and complicated process. With the counsel of an experienced real estate attorney, the path to your new home may be much smoother.
Thanks to our friends and co-contributors from Lorona Mead, PLC for their added insight into common problems when buying a home.