When a sale is pending a contract has been signed and is expected to close but has not closed yet. Many things could happen in this case.
•· Buyer's Remorse. The buyer could get cold feet and back out of the deal.
•· Home Inspection. The home inspection could find something wrong with the home and the buyer and the seller may not be able to come to terms on who should pay for the repairs. Or the buyer may decide that it is something that they just don't feel comfortable moving forward with.
•· Loan Appraisal. The bank won't loan the buyer the amount that they need to close because the appraisal did not come in high enough.
•· Mortgage Loan Rejection. Often this can happen because the buyer takes out other loans while waiting for the mortgage to close. Such as a new auto loan or a loan for furniture. This could increase their debt ratio.
•· Contingent of Buyers Home Sale. Normally a time frame is associated with this and if the buyer's home does not sell in the time specified in the contract the buyer or the seller can walk away.
•· The House Closes. This is best of all the situations and what all parties hope for.
Buyers and sellers should not be unreasonable when it comes to repairs found in the home inspection.
Buyers should always consult a real estate professional when making an offer on a home. They should look over the comparable sales in the area and make their offer based on them.
Buyers should be advised not to take out any other loans or use any savings to make big purchases while waiting for the mortgage to close.
Buyers should have a back-up plan if they have a home they need to sell. They could apply for a bridge loan that would allow them to move forward with the purchase.
IF YOU ARE LOOKING TO BUY OR SELL YOUR HOME IN THE OWENSBORO KY AREA PLEASE CALL ME FOR ALL YOUR REAL ESTATE NEEDS. Joanne.Tilford@RealLiving.com 270-929-8454