Buying a house should be simple. Once you choose a home in your preferred location, and enter escrow, the process should be predictable. In most cases, the sale goes through, even if there are a few minor hurdles along the way. Sometimes, however, the transaction becomes derailed. A single problem can bring the entire home-buying process to a grinding halt.

A dashed sale usually hurts everyone involved in the transaction. The seller loses an opportunity to sell his or her property, which can be especially disheartening if home values decline. The buyer must continue the search for a suitable house. The real estate agent loses the commission, and with the buyer, is forced to start the search over.

This article will describe five of the most common problems that can interfere with your effort to purchase a home. While it is possible to salvage the process, it is just as likely you’ll need to start afresh.

1 – Problems Revealed By Inspections

Home inspections are performed to expose any problems that might be missed by the untrained eye. Most people are unable to identify structural issues, signs of a failing air conditioner, and dampness in basements. A professional inspector will reveal these and other problems.

Unfortunately, many buyers become unnerved when an inspection reveals issues. Some buyers make unreasonable demands on the seller, such as reducing the price of the home by $7,000 for a minor roof repair. Others will simply cancel the transaction, spooked by the results of the inspection.

2 – The Lender Backs Out

A lot of homebuyers are unaware their lenders can pull out of the deal after the initial promise to extend a mortgage loan. This can happen for a number of reasons. For example, suppose your loan was barely approved based on your current financial picture. If you then buy an expensive vehicle (with a loan), the new debt will cause your financial picture to change. It may motivate the lender to back out.

3 – Contingent Contract Based On Selling Your House

You may already own a house from which you’re planning to move. Unless you intend to rent your current property to tenants, you’re likely trying to sell it in order to relocate into your new home. (Few people can afford to carry two mortgages.) A lot of homebuyers establish a contingent contract that stipulates the transaction is based on their ability to sell their current houses. Depending on the market, however, they may be unable to do so.

If you plan to use a contingent contract for this purpose, realize it can put the home-buying process in jeopardy. There are compelling reasons to do it, but make sure you have the right expectations.

4 – Discrepancy Between The Appraisal And Sale Price

When a lender agrees to extend a mortgage loan, they initially do so based on the sale price of the property. They then require an appraisal of the property to make sure the loan amount reflects the home’s actual value. Sometimes, the appraisal is lower than the sale price. This often causes the lender to balk.

There are several ways you can help reconcile the property’s appraised value with an loan amount the lender is willing to extend. You can ask the seller to lower his or her price; you can find another appraiser who is approved by the lender; or you can absorb the difference. There are other options, but these are among the most common.

5 – You Have Second Thoughts

A lot of homebuyers simply back out of the transaction. They have second thoughts due to a variety of reasons. Some states are more hospitable than others to such decisions, and will allow buyers to recover their earnest money deposit with no penalty. Of the problems profiled above, this one is entirely in your hands.

The process of purchasing and assuming ownership of a home is fraught with potential obstacles. Being aware of them is the first step toward avoiding them.

Author Bio: Great deals available for Harrisonburg Real Estate and real estate offerings at http://www.ValleyFarmsandLand.com

Category: Real Estate
Keywords: real estate, buying a home, appraisal and sale price, contingent contracts, home inspection