Buying a new home in Florida can be an exciting experience. But purchasing your next home can be a process with certain snags. By learning about a few closing-related hurdles, you can make sure you’re not the victim of them.
An inspection yields problems
An essential part of the real estate process is a home inspection. Hopefully, your contract has a home inspection contingency. This contingency legally lets a potential buyer back out of buying a home if an inspection uncovers major problems. If an inspection yields issues, this probably isn’t a home you’d want to buy anyways.
You can’t obtain financing
In a dream world, every buyer would have the cash in hand before closing on a home. Since most buyers finance the purchase of a home, sellers prefer to work with pre-approved buyers. Unfortunately, a pre-approval doesn’t guarantee you’re in the clear from a financing perspective. Before closing on the home, a buyer could lose their job or suffer a significant credit score drop.
The property’s too risky to insure
Unless you pay for a home in full with cash, you’ll need home insurance before a lender finances your purchase. But you might not know that not every home is insurable. Homes with water damage or mold in the past might be too risky for an insurer. If a home isn’t insurable, your home purchase becomes off the table.
There are valid reasons to back out of buying a home. Before you make this decision, check the terms of your contract closely. If you choose a reason that wasn’t in the contract, you might not receive any reimbursement.