A lot of questions are asked about what potential issues or concerns may arise when dealing in real estate. Because of all the intricate details that go into a real estate transaction from start to finish, the list of things can be overwhelming. This is why selecting the right agent with the right broker is critical to making sure your transaction is as smooth as possible. Most common issues are caused by lack of experience, lack of education, and lack of communication. Below is a lengthy list of the possible things to look out for and perhaps consult with your real estate agent on. It never hurts to ask questions, and it can only help you to be more prepared. Afterall, it is your property that you are dealing with.
1. Does not tell the truth from the loan application.
2. Submits incorrect information to the lender.
3. Has recent late payments on credit report.
4. Found out about additional debt after loan application.
5. Borrower loses job.
6. Co-borrower loses job.
7. Income verification lower than what was stated on loan application.
8. Overtime income not allowed by underwriter for qualifying.
9. Applicant makes large purchase on credit before closing.
10. Illness, injury, divorce or other financial setback during escrow.
11. Lacks motivation.
12. Gift donor changes mind.
13. Cannot locate divorce decree.
14. Cannot locate petition or discharge of bankruptcy.
15. Cannot locate tax statements.
16. Cannot locate bank statements.
17. Difficulty in obtaining verification of rent.
18. Rate of interest increases and borrower no longer qualifies.
19. Loan program changes with higher rates, points and fees.
20. Child support not disclosed on application.
21. Borrower is a foreign national.
22. Bankruptcy within the last two years.
23. Mortgage payment is double the previous housing payment.
24. Borrower/co-borrower does n’t have steady 2-year employment history.
25. Borrower brings in handwritten pay stubs.
26. Borrower switches to job requiring probation period just before closing.
27. Borrower switches to job from salary to 100% commission income.
28. Borrower/co-borrower/seller dies.
29. Family members or friends do not such as the home buyer chooses.
30. Buyer is simply too picky about property in price range they can afford.
31. Buyer feels the house is misrepresented.
32. Veterans DD214 form not available.
33. Buyer has spent money needed for down payment and closing costs and comes up short at closing.
34. Buyer does not properly “paper trail” additional money that comes from gifts, loans, etc.
35. Does not bring cashier’s check to title company for closing costs and down payment.
36. Loses motivation to sell (job transfer does not go through, reconciles marriage, etc.)
37. Cannot find a suitable replacement property.
38. Will not allow appraiser inside home.
39. Will not allow inspectors inside home in a timely manner.
40. Removes property through the premises the buyer believed was included.
41. Is not able to clear up liens against their property – short on cash to close.
42. Failed to own 100% of property as previously disclosed.
43. Thought getting partners signatures were “no problem,” nonetheless they were.
44. Leaves town without giving anyone Power of Attorney.
45. Delays the projected move-out date.
46. Failed to complete the repairs agreed to in contract.
47. Seller’s home gets into foreclosure during escrow.
48. Misrepresents information on home & neighborhood to your buyer.
49. Does not disclose all hidden or unknown defects and they are subsequently discovered.
50. Builder miscalculates completion date of new home.
51. Builder has too many cost overruns.
52. Final inspection on new home does not pass.
53. Seller does not appear for closing and won’t sign papers.
54. Do not have client control over buyers or sellers.
55. Delays access to property for inspection and appraisals.
56. Unfamiliar with their client’s financial position – do they have enough equity to sell, etc.
57. Does not get completed paperwork into the lender in time.
58. Inexperienced in this kind of property transaction.
59. Takes unexpected time off during transaction and can’t be reached.
60. Jerks around other parties towards the transaction – has huge ego.
61. Does not do sufficient homework to their clients or perhaps the property and wastes everyone’s time.
62. County will not approve septic system or well.
63. Termite report reveals substantial damage and seller is not willing to fix or repair.
64. Home was misrepresented as to size and condition.
65. Home is destroyed prior to closing.
66. Home not structurally sound.
67. Home is uninsurable for homeowners insurance.
68. Property incorrectly zoned.
69. Part of home sits on neighbor’s property (encorachment).
70. Unique home and comparable properties for appraisal difficult to find.
The Escrow/Title Company:
71. Does not notify lender/agents of unsigned or unreturned documents.
72. Fails to obtain information from beneficiaries, lien holders, insurance firms, or lenders in a timely manner.
73. Lets principals leave town without getting all necessary signatures.
74. Loses or incorrectly prepares paperwork.
75. Does not pass on valuable information quickly enough.
76. Does not coordinate well, in order for many items can be done simultaneously.
77. Does not bend the rules on small problems.
78. Does not find liens or any title problems until the last minute.
79. Is certainly not local and misunderstands the marketplace.
80. Is simply too busy to accomplish the appraisal on schedule.
81. No comparable sales are available.
82. Is not from the lender’s “approved list.”
83. Makes important mistakes on appraisal and brings in value too low.
84. Lender requires a moment or “review” appraisal.
85. Pest inspectors too busy to schedule inspection when needed.
86. Pest inspectors too picky about condition of property, hoping to create work for them.
87. Home inspectors not available when needed.
88. Inspection reports alarm buyer and sale is cancelled.