If you’re aiming to buy a house that can unlock a happier home life for you, it’s important to be aware of the issues that can get in the way. While many home purchases go smoothly and quickly, delays can sometimes get in the way. Here, we’re going to look at a few examples of what can hold things up, and what you can do to mitigate those risks.
Damage Uncovered by Inspection
One of the most common hurdles that can delay a house purchase is the discovery of damage during the home inspection. Inspections are a crucial part of the home-buying process, as they reveal any underlying issues that may not be immediately visible. However, if significant damage is uncovered, such as structural problems, mold, or faulty wiring, the purchase process can be delayed while negotiations take place. The buyer may request repairs or a reduction in the purchase price to cover the cost of fixing the issues. Depending on the extent of the damage and the seller’s willingness to negotiate, these discussions can take time, potentially pushing back the closing date.
The Appraisal is Too Low
Another potential delay in the home-buying process occurs when the property’s appraisal comes in lower than the agreed-upon purchase price. Lenders require an appraisal to ensure that the property is worth the amount they are financing. If the appraisal is too low, the lender may refuse to provide the full amount of the loan, forcing the buyer to either come up with the difference out of pocket or renegotiate the purchase price with the seller. In some cases, the buyer and seller might not be able to reach an agreement, which can further delay or even derail the purchase entirely.
Waiting for the Deed
Obtaining the deed to the property is an essential part of finalizing a home purchase, but it can also be a source of delay. The deed is the legal document that transfers ownership of the property from the seller to the buyer. Before the deed can be transferred, all financial obligations must be settled, including the payment of any outstanding mortgages, taxes, and other liens. If there are any issues with the title or if the seller’s documentation is not in order, this process can be delayed. Additionally, in some regions, there may be bureaucratic or administrative delays in recording the deed with the local government, further pushing back the closing date.
Financing Concerns
Financing is often one of the most significant hurdles in the home-buying process. Even if a buyer has been pre-approved for a mortgage, issues can arise that cause the financing to fall through. For instance, changes in the buyer’s financial situation, such as job loss or unexpected debt, can lead to the lender withdrawing the loan offer. Additionally, if the buyer has taken on new credit obligations or there are discrepancies in their financial documentation, the lender may require additional verification, which can delay the approval process. Without secure financing, the purchase cannot proceed, leading to delays or even the cancellation of the sale.
There’s only so much you can do to speed up the home buying purchase. The tips above can help you take steps to make the way smooth, but to some degree, you have to be willing to be patient.
