Here Are the Things Which Can Go Wrong With Real Estate Transaction

Real Estate industry comes up with something new each day. What keeps this business get going is that there is never an ordinary day; in fact, no two transactions are ever alike!  Some transactions go very smoothly, you turn up at the closing stage and can't believe that there hasn’t been any hurdle on the road. Others...well, they aren’t fortunate to reach at the closing table this smoothly! As per DreamHomes Developers, the last year, realty industry had some of the most random things going wrong during the deal - here are few for the year, so far!  

Buyer’s Regret

The real estate industry is all about bidding wars, its human nature to want to be the victor!  Few days down the line, after leading the bidding war, particularly if buyers have gone considerably higher than the list price, buyers tend to regret a little. Some even go to the extreme levels, ultimately making up their mind to terminate the contract for purchasing the home.

Buyer was pre-approved but had no credit!

As per Dream Homes Chennai, this has happened to many buyers just before closing the deal.  The lender had issued a pre-approval memo based on the stability of income only.  The buyer never had any sort of loan or credit card and hence, when the documents reached the underwriter, the file was rejected!

Buyer switches auto lease to purchase (or, buys a new car)

This doesn't take off with lenders if their debt-to-income ratios are rigid. It's recommended not to make any purchases using credit or savings until you reach to closing.  In this way, you can avoid the trouble of losing your new home along with all of the money that you've already exhausted in grounding of being the new homeowner (earnest money deposit, inspection costs, , title search costs, due diligence fees, appraisal costs, etc.)