How To Ensure Your Home Purchase Deal Doesn't Fall Through

Posted on: 28 February 2017


Buying a home is an investment not only in terms of money but also in terms of time and effort. Therefore, it would be a great waste to invest and navigate the process only to have it fall through at the last minute. For that reason, take these steps to ensure your next property purchase doesn't fall through:

Get Preapproved For Your Budget

Mortgage application failure is one of the reasons real estate deals fall through. For example, you can go through all the motions of buying a $250,000 house only for the lender to advance you a mortgage of $200,000. You can easily avoid such a blow by getting preapproval and shopping with that mortgage in mind.

Getting preapproved by a lender means knowing the specific mortgage for which you are approved. In most cases, you will need to provide proof of income, assets, employment, and good credit.

Keep a Close Watch on Your Finances

Preapproval may guarantee you a certain mortgage, but only if the factors upon which the preapproval was issued remain constant. For example, you don't expect the lender to advance you the same mortgage if you experience a serious fall in credit score or lose your job before getting the mortgage. Therefore, take care of your finances to avoid experiences that may jeopardize your mortgage.

Manage Your Expectations

Unless you are planning to buy a brand new property, you should expect some things to be amiss with your potential house. You can't buy a 30-year-old house and expect to find everything working in tiptop condition; that kind of expectation can easily make the deal fall through. Therefore, prepare to carry out some minor renovations after buying your house; how much renovations you can shoulder depends on you. However, the home inspection (which you should never skip) will reveal the defects.

Negotiate the Contingencies

Both buyers and sellers often have their contingencies when a real estate transaction is taking place. Unfortunately, the more contingencies you have, the higher the risk that the deal won't succeed. Therefore, you need to negotiate the contingencies to eliminate risky or unreasonable ones. For example, it's not wise to accept the seller's contingency that the contract only proceeds if they succeed in buying another house that they haven't even started to hunt for. If you are to accept such a contingency, the seller should at least be in the process of buying that other house.

As you can see, thorough preparation is one of the best ways of ensuring that your real estate deal goes through as planned. Consult a real estate agent, such as Legends Realty, early enough so that you understand what to expect and prepare for them.