6 Problems to Avoid to Make it to the Closing Table in Charleston

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There are many reasons why a real estate deal that seems legitimate might not make it to the closing table. Today, I want to cover six reasons home deals can go straight to hell. 

1. Your credit score changes. It’s extremely important for the buyer to understand they can’t get any hard inquiries on their credit report. Don’t go out and buy a car or a big piece of furniture. Avoid anything that will impact your credit score throughout the home buying process. There’s a document we send to buyers to make sure they understand that, because sometimes their lender or Realtor won’t educate them on those things. 

2. An inspection creates conflict. We recommend that sellers do a pre-inspection before putting their home on the market. That way, you don’t have to worry about any surprises after the home is under contract. You can address any issues ahead of time, and the buyer won’t back out of the contract during the inspection period. 

3. A buyer isn’t pre-approved for a home loan. Many buyers will come to me with a pre-approval when they’re looking to buy a home. However, oftentimes the pre-approval is not worth the paper that it’s written on. It’s really important that you work with a great lender when getting that pre-approval. I make sure that the lender fills out a verification form that confirms that they have checked the buyer’s credit, employment history, source of down payment, income, and debt. This is a lot more powerful than a simple pre-approval. 

4. Buyers run out of money. A lot of buyers go into the transaction not knowing how much money it takes. There’s a number of items you have to pay for up front, such as an appraisal and a home inspection. By the time you get to the closing table, you might not have the money for the down payment. On the seller side, I always verify what the payoff letter is. The payoff is $1,000 to $2,000 more than your mortgage statement. 

5. Either party blows small problems out of proportion. This comes down to experience. I’ve been in the business for 17 years. My experience allows me to mitigate small issues in order to get you to the closing table. 

6. Buyers get cold feet. It’s extremely important to keep the buyer engaged and excited about the home throughout the transaction. If you’re a seller, you don’t want the closed date to be set 60 days from now. Statistically, the farther away the closing date is, the more likely it is that the deal will fall through. Instead, go for a 30 or 40 day closing period. Lenders shouldn’t need any more time than that. 

These are six reasons home deals might fall through. Check out this link that details other problems that could send a deal straight to hell. 

If you have any questions, give me a call or send me an email. I would be happy to help you!