Buying a home is one of the most exciting times of your life. Unfortunately, your good times can turn bad if you run into one setback after the next.
As you inch closer to closing day, it's important to pay close attention to the finer details of the property and your transaction. Here are some common setbacks that could delay your closing:
- Home inspection reveals major problems: You should expect some things to pop up on a home inspection, but anything major has the potential to slow things down. This can include but is not limited to termite damage, cracked foundation, leaking roof and outdated plumbing and/or electrical systems.
- Financing falls through: Stay in touch with your lender to ensure that your financing is in order and that they don't need any additional information from you.
- You can't secure home insurance: This sounds easy enough, but you could run into problems. For example, if a previous owner made a major insurance claim, your insurance company may refuse to provide coverage.
- Differences between your good faith estimate and HUD-1: Your good faith estimate outlines closing costs, giving you an approximation of what you'll end up paying. Unfortunately, some lenders attract buyers with low estimates, just to sneak in additional costs at closing. This could force you to walk away from the closing table.
Familiarity, these potential setbacks, can help you avoid trouble. If for any reason your deal begins to fall apart, take a step back to assess your situation and decide what to do next. You should never feel pressured, as this could cause you to make a costly error that puts you at a disadvantage.
As a buyer, you have legal rights. Knowing how to protect yourself when buying a home is of utmost importance.