Common Reasons Why Home Purchases Don’t Close

You may feel a rush of excitement after a seller accepts your offer to buy his or her property. However, it is important that you understand that this is just one of many steps in the sale process. Until the sale closes, the home does not belong to you, and there are several reasons why the close will not happen.

The Home Is Appraised for Less Than the Purchase Price

No lender is going to want to provide more money than a home is worth to a buyer. If you were to struggle to repay the loan, you may be more tempted to simply walk away from it instead of worrying about the negative equity. If this happens to you, it may be necessary to pay the difference between the appraised value and the purchase price. Your loan officer in Las Vegas may further explain how to handle such a scenario.

The Home Has Significant Damage

Prior to closing on a deal, make sure that you have the home inspected. This can help you discover problems that may not be apparent during an open house or other showings. Issues that may be discovered include a pest infestation, a crack in the foundation or significant damage to the roof or walls. It is worth noting that a seller could agree to take care of some or all of these problems for you, which may make it worth following through on the purchase.

What Happens If You Walk Away?

Generally speaking, if you choose to walk away from the deal, you will lose your earnest money. This is a small deposit made to show the seller that you are serious about buying a home. However, there likely won’t be any other criminal or civil penalties for changing your mind.