Turbulence List Things That Might Go Wrong During Your Transaction which I as your Realtor will guide you safely through
The Buyer/Borrower:
1. Does not tell the truth on the loan application
2. Has recent late payments on his credit report
3. Finds out about additional debt after loan application such as judgements
4. Borrower loses job
5. Co-borrower loses job
6. Income verification lower than what was stated on loan application
7. Applicant makes purchase on credit before loan closes
8. Overtime income or bonuses not allowed by underwriter
9. Ilness, injury, divorce, etc. during escrow process that changes financial situation
10. Gift donor changes mind on down payment
11. Cannot locate divorce decree
12. Cannot locate petition or discharge of bankruptcy
13. Cannot locate tax returns
14. Cannot locate bank statements
15. Difficulty obtaining verification of rent
16. Interest rate changes and borrower no longer qualifies
17. Loan program changes with higher rates, points, and fees
18. Child support not disclosed on application
19. Bankruptcy within the last 2 years
20. Mortgage payment is double the previous housing payment
21. Borrower/co-borrower does not have steady 2-year income history
22. Borrower switches job with a probation period
23. Borrower brings in hand-written pay stubs
24. Borrower switches job from salary to 100% commission
25. Buyer too picky about property in price range he can afford
26. Debt to income ratio too high
27. Buyer feel the house is misrepresented
28. Buyer comes up short of money at closing
29. Buyer does not properly "paper trail" additional money from gifts, loans, etc.
30. Veterans DD214 form not available
31. Buyer does not bring cashier's check to closing for closing costs and down payment
32. Borrower/co-borrower/seller dies
The Seller:
33. Loses motivation to sell, (job transfer does not go through, reconciles marriage, etc.
34. Cannot find suitable replacement property
35. Will not allow appraiser inside home
36. Will not allow inspectors inside home in a timely
37. Removes property from the premised buyer believed was included
38. Cannot clear up liens--is short on cash to close
39. Did not own 100% of the property as previously disclosed
40. Encounters problems getting partner's signatures
41. Leaves town without giving anyone power of attorney
42. Delays projected move-out date
43. Did not complete repairs agreed to in contract
44. Seller's home goes into foreclosure during escrow
45. Misrepresents information about home and neighborhood
46. Does not disclose all hidden or unknown defects which are discoved during inspections
Realtors
47. Has not client control over buyers or sellers
48. Delays access to property for inspections and appraisal
49. Does not get completed paperwork to the lender in time
50. Inexperienced in this type of property transaction
51. Takes unexpected time off during transaction, can't be reached
52. Misleads other parties to the transaction...has huge ego
53. Does not do sufficient homework on their clients or the property, wastes everyone's time
The Lenders
54. Does not properly pre-qualify the buyer
55. Wants property repaired prior to closing
56. The market raises rates, points, or costs
57. Borrower does not qualify because of a late addition of information required
58. Lender requires last-minute second appraisal or other documents required by underwriter
59. Lender loses a form or misplaces an entire file
60. Lender does not simultaneously ask for all needed information
61. Lender does not fund loan in time for scheduled closing date
The Property
62. County will not approve septic system or well
63. Termite inspection reveals substantial damage and seller is not willing to fix
64. Home was misrepresented as to size and condition
65. Home is destroyed or damaged prior to closing
66. Home is found to be not structurally sound
67. Home is uninsurable for homeowner's insurance
68. Property incorrectly zoned, or zoning is changed during escrow
69. Portion of home sits on neighbor's property...so no clear title
70. Unique home and comparable properties making the appraisal difficult to find
The Escrow/Title Company
71. Fails to notify lender/realtors of unsigned or unreturned documents
72. Fails to obtain information from beneficiaries, lien holders, insurance companies or lenders in timely manner
73. Let's 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 so many items can be done simultaneously
77. Does not bend the rules on small problems
78. Waits too long to completely search the title finding liens or other title problems at the last minute
The Appraiser
79. Is not local and misunderstands the market, making appraisal too low
80. Too busy to complete the appraisal on schedule
81. No comparable sales are available
82. Is not on the lender's "approved" list
83. Makes mistakes on the appraisal bringing in the value too low
84. Lender requires a second or "review" appraisal
Inspectors
85. Pest inspector not available when needed
86. Pest inspector too picky about the condition of the property
87. Home inspector not available when needed
88. Inspection reports alarm buyer and sale is cancelled