We’re all familiar with the disappointment that comes from dashed plans, whether it’s a canceled date, a missed job opportunity, or the heartbreak of a pending sale on your dream home falling through.
The period between offer acceptance and closing, roughly 50 days on average, is crucial and a lot can transpire during this time frame. Numerous factors can lead to the cancellation of a pending home sale, including:
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Buyer’s Mortgage Financing Falling Through:
- Buyers should secure pre-qualification or pre-approval to gauge their affordability.
- Changes in financial situations or credit scores can impact loan approval.
- Discrimination issues should be reported to the appropriate authorities.
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Home Inspection Revealing Major Damage:
- Home inspection contingencies protect buyers, allowing them to address significant damages.
- Pest-related damages, like those caused by termites, are critical and can affect loan approval.
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Appraisal Below Sale Price:
- Lenders appraise the home to ensure its value matches the sale price.
- In competitive markets, appraisals might fall below the offered price, impacting the loan.
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Buyer Unable to Sell Old Home:
- Home sale contingencies allow buyers to sell their existing home before closing on a new one.
- Sellers face risks as there’s no guarantee the buyer will purchase their property.
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Title Issues:
- Lenders require a clean title, free of liens or judgments.
- Clearing title-related problems can be time-consuming and may lead to sale cancellations.
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Uninsurable Home:
- Homes must be insurable to secure a loan; uninsurable homes are typically in poor condition.
- Cash purchases are the only option for uninsurable homes.
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Inexperienced Buyer:
- First-time buyers may face challenges securing a mortgage and understanding budgets.
- Thorough preparation is crucial for first-time buyers to avoid complications.
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Missing Details on Paperwork:
- Mistakes in paperwork can lead to delays.
- Delays may result in fees or, in extreme cases, sale cancellations.
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Cold Feet:
- Buyers or sellers might get cold feet, leading to a canceled sale.
- Valid reasons, as outlined in the contract, allow parties to walk away during contingency periods.
Ensuring a home sale crosses the finish line requires meticulous preparation and addressing potential issues early on. At 1st Advantage Mortgage, we understand the complexities of the mortgage and home buying process. Our team at 1st Advantage Mortgage, led by owner Michael Vitta, is dedicated to guiding you through every step to make the buying process smoother.
