Selling a house can be difficult and not the most straightforward process.
There is no easy way to buy or sell a house. Before closing, each party must go through a lengthy process of signing sheets after sheets of paper. There are two things that must be done before money can change hands. Home inspections also need to be performed. There are many things that could go wrong during the whole process. Lawyers will need to review the title of the home for liens. If something goes wrong, the closing date for a mortgage loan can be extended actively even if both buyers and sellers have agreed on a date. If this happens, you shouldn’t panic. Many of these issues can be resolved and the seller and buyer will be able choose a new, hopefully more permanent closing date.
The Inspection Process
After a buyer has made an offer, they can choose to have an inspection done on the house they want to buy. The inspector’s task is to inspect the property and identify any problems. Inspectors will help the buyer make informed decisions by identifying problems in the property. Buyers will likely ask for repairs or an adjustment to the price of the home if they find larger problems, such as roof or foundation issues. The sellers could also offer the cash upfront to the buyers to hire the contractors. It would depend on how severe the repairs are, but negotiations could lead to a stalling point that could cause the closing date of the contract to be extended due to insufficient agreement.
Underwriting Problems
Many buyers who are interested in buying a home have their mortgage loans preapproved before they can make an offer. Others are not approved. After making an offer, the buyer will need to get a loan to finance the purchase of a home. Before a lender is willing to lend the money, the lender will first go through an underwriting process. This involves the lender reviewing the financial situation of potential buyers. The entire process can take a while because lenders need to determine if the potential borrowers are worth the risk. It can take between 60 and 90 days, depending on which lender you are working with. Buyers will need to request extensions if the underwriting process is taking too long.
The appraisal process
A mortgage lender will hire appraisers to assess the market value of the property before approving a loan. This is done to ensure that the client does not pay too much for the property before they approve the loan. An appraiser will determine the home’s market value and request that the seller lower the price if this is the case. The appraisal can cause major problems and force the closing date to change. They will either need to walk away or completely rework the deal.
Title
The title insurance companies will need a search of the house before closing. It is important to ensure that the home has no lien or ownership interests from any other taxing bodies. The title search can bring up problems that can delay closing dates.