Avoid the most common pitfalls that can derail your home purchase or sale!
Blow Up #1: HOA Fees
HOA fees can be listed incorrectly in the MLS. If you are purchasing at the top of your financed price range, you want to verify fees immediately because these will be factored into your house payment and purchasing power!
Blow Up #2: Litigation
Lenders are hesitant to lend money on homes that are in litigation.
Blow Up #3: HOA Certification
Lenders want to see: low investor concentration (rentals,) low HOA delinquencies and no construction defect or other litigation against HOA or community.
Blow Up #4: Low Appraisal
When an appraisal comes in “low” it means that it is less than the contracted price.
Several things can be done to combat a low appraisal:
- Agents can submit a reconsideration to the lender if there is overwhelming evidence to suggest the report was inaccurate.
- Submit an addendum to the seller requesting a price reduction.
- Buyer to agree to pay the difference between the appraised price and contracted purchase amount in cash.
- Buyer and seller re-negotiate and meet in the middle somewhere.
Blow Up #5: Habitability
Lenders do not want to lend money on homes that are not immediate habitable. There are alternative lending products that will assist home buyers with rehab of a home.
Blow Up #6: Home Inspection
If your home inspection shows some serious defects that the sellers will not remedy, it is best to use this contingency to get you out of the contract to avoid living in a money pit!
Blow Up #7: Water Damage & Mold
The effects of water damage and mold can be from deferred maintenance, construction defect, recent or can occur in the middle of a transaction.
Blow Up #8: HOA Rental Restrictions
This is especially important to investors purchasing homes and that want to rent them out.
Blow Up #9: HOA Deed Restrictions
It is the seller’s duty by law to deliver you the resale package for the HOA which includes the bylaws & CCRs. These are deed restrictions on how you can use your home. You will not want to gloss over these and you have the right to cancel the purchase agreement within 5 days if you do not agree to life with these restrictions!
Blow Up #10: Financing Major Purchases While Financing Your Home
When you get approved to finance a home, a few items are important to maintain until close. These items are: reserves & debt to income ratio.
Curb spending while purchasing a home using financing so you do not tip the scale and find yourself unqualified.
If you would like to hear more in depth panel discussion of these issues, register for one of our FREE Las Vegas home buyer seminars!