3 Issues that Could Cause Delays when Buying a Home
Buying real property in Illinois does involve taking some risk. People have to commit earnest money whenever making an offer and could potentially end up overextending themselves or buying a property that doesn’t really work for their needs.
It’s also possible to commit a lot of time to the process and to end up largely frustrated with multiple rejected offers or an inability to find a property within the family budget that fits a household’s needs. There are also a few challenges that frequently disrupt closings. Illinois buyers prepared for the challenges below will have an easier time getting to the closing table or accepting any delays that such challenges may create.
With fluctuations in real estate prices and interest rates come major changes in property valuations. Buyers may sometimes make an offer for a property that an appraiser determines is too high, resulting in an appraisal gap. Buyers and their agents must therefore be cautious when drafting offers and have a plan to address a sizable gap, should one arise. Despite the rapid increase in prices, many buyers who are able to finance their transactions report satisfaction after purchases in recent years.
Perhaps the seller divorced but never recorded the deed removing their former spouse from the property. Maybe there is an old mechanic’s lien that turns up and that will require a court hearing to resolve. Title issues can delay closings, as it may be necessary to execute and record new deeds or wait for a civil judge to rule on a request to quiet title.
An appraisal gap is only one of the numerous scenarios in which a lender may not finance a transaction despite pre-approving the buyer for a certain amount. Buyers can lose their jobs or take on too much new debt during the home search process, which then results in them being ineligible for a mortgage.
There are ways for people in different financial circumstances to protect themselves from such challenges, and being aware of the issues that can force someone to reschedule a closing can be helpful. Working with a real estate attorney to create custom offer and purchase agreement documents is one of the ways for a real estate buyer to protect themselves against the risk inherent in attempting to buy real estate in Illinois.