During recent conversations with my colleagues in real estate and mortgage business, there has been a universal phenomenon that we all ran into some sort of roadblocks during our transactions. Some deals eventually ironed out the hurdles and some just fell through. In most cases, the buyers are fully qualified for a loan and ready to close the deal on the offer they submitted… still, obstacles arise beyond their control.Here are a few examples of the situations that a buyer may run into: A buyer had to withdraw from a condo purchase because the lenders (he has talked to a few) refused to approve the loan when find out that there is a pending litigation against the homeowner’s association. In a single-family home purchase, the lender required the buyer to purchase flood insurance in addition to homeowner’s insurance based on a FEMA map. The buyer eventually closed the deal, but was shocked initially to learn the additional cost. A first-time homebuyer’s offer was declined because her lender required the seller to obtain termite clearance and make all necessary repairs before the close of escrow, the seller eventually decided to take a lower price offer that has less contingencies.
When it comes to purchasing a new home where a large portion of your money is devoted to the investment, nobody likes surprises! Since every individual transaction is unique by its nature, certain situations may not be fully anticipated. However, it is possible to prevent most of the roadblocks and minimize stresses in a transaction. Working with a professional Realtor who is well-informed and in-tuned with the market is one of the best ways to receive first-hand information about any potential hurdles in the current market. I know many experienced and responsible agents offer initial consultations as a complimentary service to clients before they take them out to view properties. With this approach, the homebuyer will feel much more confident and prepared to make an informed decision when they see the house they want to own.
Have you (or someone you know) run into roadblocks during a real estate transaction? Please feel free to share them here.
