Be Prepared is not just the Boy Scout motto any longer. North San Diego County home buyers (as well as buyers from need to be prepared.
When home buyers make an offer to purchase a property for sale, they need to be well-qualified and ready to face all of the deadlines imposed in the contract. For example, when purchasing a home, the buyer makes inspections and is generally required to complete those inspections and perform other due diligence activities within the first 17 days after acceptance. Additionally, the buyers lender needs to meet the deadlines agreed upon in the purchase and sale contract.
In a short sale this is even more crucial because the short sale lender imposes additional deadlines for closing. Also, there are cases where the seller is facing foreclosure, and the home may be foreclosed upon if the deal doesn’t close on time.
Here’s what happened to some home buyers in a recent transaction:
At the buyer’s inspection, the buyer began to ask for repair requests and then the buyer’s lender conducted the appraisal for the loan. Everything seemed to be moving along smoothly and loan documents were to come out on Wednesday. Then, a small snafu. . . . the appraisal was going to be reviewed and the appraiser noted some additional items to be repaired.
In California and in most of the nation lending guidelines are very tight. Everything is reviewed and reviewed again so that mortgage lenders can assure that they are getting bang for their buck. So, many appraisals go to the review department before getting approved and loan documents getting generated.
Lo and behold, the closing date came and went. The closing date had now lapsed and the sellers were disappointed that the transaction didn’t close on time.
So, home buyers, when seeking to purchase a home, it is important to work with a lender and an agent that know the ropes and can help all parties to close on time.