Purchasing a property is a very large transaction with many moving parts. There can be a lot of excitement while envisioning your new life in this property so it is important to keep your emotions at bay while you stay on track with the steps of the sale. Home sales do fall through at times and according to the National Association of Realtors, 1 in 16 deals do not close. Why do these deals fall apart? Here are some of the top reasons so that you can avoid them.
Changes in credit
Your credit score can fluctuate through the course of your deal. Any missed payment, opening up a new credit card or making a large purchase all can have an affect on your credit. Make sure to take care of your payments timely and avoid making any significant purchases so you don’t risk your eligibility for a mortgage.
Al home inspection is always a good thing to do. Keep in mind that no house is perfect and most will have something come up even if it is just an older water heater. Try not to stress should there be necessary repairs. For more substantial repairs, try negotiating with the sellers to see if they will work with you on the issue.
Failure to get pre-approved
Every active buyer should contact a reputable mortgage agent before they even begin their search. A mortgage broker will be able to provide you with a pre-approval letter stating the amount that you can afford.
Running out of funds
Your downpayment is not the only thing that you will need to have cash ready for. There are also moving expenses, sometimes repairs and closing costs that you will need to be sure you have money on hand for. Your lender can provide you with a good faith estimate for what you will need regarding funds that are directly related to the deal.
Loss of perspective
Sometimes even the smallest things can get blown out of proportion. Staying in regular and clear communication with your real estate agent can help avoid many of these potential issues. Keep the big picture in mind as well, sometimes the smaller issues really don’t even matter so much in the end.
Buyers can sometimes get emotional and excited during the home search and offer process. Once the inspection report comes back followed by a lot of necessary paperwork and writing checks the purchase becomes a reality. In the end don’t fret, homeownership is worth it as you work towards building equity in the place that you will begin making new memories in.