You're probably looking forward to wrapping up the closing on your new home -- with good reason. Buying a home is an exciting experience.
It's also a bit nerve-wracking. There's a lot that can go wrong during any real estate closing, including:
1. Someone gets cold feet about the deal
Maybe you get nervous because the mortgage and homeowners association (HOA) fees are higher than you expect. Maybe the seller gets nostalgic and doesn't want to move, after all. Either way, "cold feet" can cause serious problems with a deal.
2. The bank's appraisal comes in low
Property values are constantly in flux, and changing economic times can create a cascade of problems for both buyers and sellers. If the home appraisal comes back lower than the purchase price the seller wants, you may have trouble affording the place.
3. There are problems with the home inspection
Some properties may be dearly in need of new paint and a little tender care, but be hidden gems underneath. Others can look great -- and have massive hidden flaws. Termite damage, plumbing issues, electrical problems, wet basements, flooded lots and structural problems can cause major problems with any real estate deal.
4. There's an unresolved issue with the title
This can be heartbreaking because title issues should never really happen when real estate deals are handled properly. If there's an unresolved lien on the property or some confusion about the deed, it may slow down your purchase considerably. Some issues may even be severe enough to make you walk away.
Because there are so many potential pitfalls when you're closing on a home, it's always wise to have experienced legal assistance with your real estate purchase.