The end result of the closing process is that the buyers receive the titles to the property, the lenders get their loans documented in the public records, and the state governments get to collect the taxes generated by the transaction. BUYING STEP #12: IT’S NOT YOURS UNTIL YOU CLOSE When everything looks set and all is going well, nothing could be worse than the deal falling apart at the last moment — but it does happen. This can be due to a variety of reasons including home inspection, low appraisal, or failure to obtain appropriate financing. It is easy for buyers to ensure the deal goes through, though, if they know these potential pitfalls beforehand. First is the most straightforward kind of issue: if physical damage is noticed during the home inspection, the deal could be called off. If the house isn’t sound, isn’t safe to live in, it should come as no surprise that its purchase might not go through. It is better to have a pre-approved loan to make sure finance is not a problem. Many applications get rejected during the mortgage approval process. As you are finalizing the deal with the seller, it is a good idea to be in contact with all the agents involved to make sure you know the status of your finances. Finalizing the deal with the seller, but faltering when getting loans will stall or even sink the deal in almost every case. Low appraisals are another of the major breakers of these deals. If the appraisal is too low, the lender will not give you a loan for the deal. Title insurance and home inspections should also be expected.The lender will have to make sure the seller fully owns the house. Defaulters will not own the house fully. All these cautionary concerns need to be kept in mind by the buyer. If anything goes wrong but appropriate contingencies are in place, the deal may still be saved. • • •
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