important to have an agent working on your side) — because closing agents take care of all the necessary documentation required by title companies, lawyers, and lenders. The final result of the closing process is that the buyer obtains the title to the property, the seller receives the payment, the agents receive their commissions, the lenders’ loans are fully documented in the public records, and the state government collects the taxes generated by the transaction. Everyone wins!
Step 11: Finish the Closing Process
But what if not everyone wins? Remember, it’s not over until it’s over, meaning the home isn’t yours until you close, and until the closing process is complete. When you finally get to the end of the closing process, and you start picturing yourself moving into and settling into your new home, nothing feels worse than the deal suddenly falling apart at the last moment. While this isn’t common, it still happens. How and why? Some of the reasons include a last-minute home inspection gone awry, a low home appraisal, or failure on the buyer’s end to obtain financing. However, it’s easy for buyers to avoid these potential pitfalls and ensure the deal goes through if they are aware and prepared, and if they’ve secured the services of a good agent to make sure all the bases are covered so you’re not left in such a disappointing and heartbreaking situation. First, the home inspection. If major physical damage is revealed during the home inspection, the deal could be called off. This shouldn’t be all that surprising, however. If a home is considered structurally unsound or unsafe to live in, then there’s a good chance the deal won’t move forward, and the purchase will fall through. Low home appraisals also occur, and can be deal breakers, just like a poor home inspection report or damage noticed. If your target home’s appraisal is low, the lender will not give you a home loan to purchase it. To avoid financing becoming an issue as a last-minute deal breaker, please ensure you have
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