existing mortgages as well as ensure all the documents and paperwork are prepared, signed, and submitted to the appropriate offices and agencies. 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 or fees, the lenders’ loans are fully documented in the public records, and the state government collects the taxes generated by the transaction. Everyone wins!
Step #12: Finish the Closing Process
But sometimes, not everybody wins. It’s not over till it’s over. Your new home isn’t technically yours until the closing process is fully complete. Sometimes the deal can suddenly fall apart at the last moment. While this isn’t common, it can still happen, and you should be prepared for this possibility. Some examples include last-minute home inspections gone wrong, a low home appraisal, or inability to obtain appropriate financing. Keep your emotions in check until the closing process is fully closed. But working with a buyer’s agent and being prepared and informed can make sure you’ve got the bases covered and you’re not left in such a disappointing situation. • Poor home inspection: If major damage is revealed during the inspection, the deal could be called off. • Low home appraisal: This can also be a deal breaker. If your target home’s appraisal is too low, the lender won’t give you a home loan to purchase it. • Financing: This can easily be avoided by ensuring you are financially prepared to buy a new home, which includes knowing your budget, understanding how much you can afford, and getting pre-approved for a loan, as discussed
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