Finally decided to buy your new home? Good for you! Buying a house will always be an exciting time, whether you’re a first-time homebuyer or not.
You have everything sorted out. You already have the financial documents up and ready and enough money saved up in your bank account. Your credit score is high, your credit report is in tip-top shape, and you’re confident that your ratios can qualify you to get a good mortgage deal. You even talked to three lenders and decided on one who makes the most sense thanks to their great deals and mortgage terms.
However, problems can still arise. Remember, home-buying is never an easy process. To help you solve some of the common ones, here’s what you can do in case you run into such issues.
Your Dream Home Exceeds The Conventional Loan Limits
Every state and country has its conventional loan limit. However, if the house you fell in love with is above the loan limit you applied for, consider getting Jumbo Loans Texas instead. However, make sure you learn about the pros and cons of getting a larger loan. If you do qualify, consider all expenses and see if you can afford the mortgage and if you’re capable of paying back your lender comfortably. If not, it’s best to move one and find another home.
Property Chain Delays
Sometimes, the seller of the house you intend to buy is also buying another property themselves. Because of this, more than one house is involved, thus the becomes being a transaction chain. The longer the transaction chain, the more delays that can happen. You have the option to find another property with a shorter chain or make an agreement with the seller on a reasonable date they can sort the problem out. Better yet, find a non-existent chain.
Underwriter Being More Demanding
An underwriter determines another party’s risk by evaluating paper works and approves or rejects the loan. If your underwriter is demanding more paperwork, just provide what they are asking for on time. Make sure to disclose everything to your lender and loan officer. This way, they can anticipate future problems and help you get approved.
Home Inspection Results Came Out Bad
Home inspections are essential as a result can make or break the home purchase deal. If, after a home inspection, the results showed that the house has problems that can cost you a considerable amount of cash in repair and management, you have the option to talk to the seller and make an exclusive agreement or back out from the home purchase.
Every real estate has a history. You may face title issues after signing the home purchase history. This can be public record mistakes, unlawful deeds, undiscovered liens, etc. It is best to work with a property lawyer. A competent one can help you understand the terms and conditions of your mortgage, assist you with the title search and other legal issues that come with buying your home.
Recommended Read: These common title problems can snag your home closing
These are some of the issues that can occur during the home buying process. When in doubt, don’t forget to ask your mortgage broker, lender and property lawyer for help. These are professionals with the right knowledge and experience to help you make your home purchase a lot easier.