Top 5 Things That Can Go Wrong When Buying a Home.

So, you have finally found the perfect home? You are ready to make an offer. Here are a couple things to watch out for when buying a home that can delay your journey to that dream home. Not worry though, by having this information you can be prepared for just about anything that will come up.

1. Real Estate transactions are never "cut and dry". They involve multiple parties, lawyers, appraisers, inspectors, lenders and sellers. Scheduling timelines for third parties and coordinating paperwork to be signed off in a timely manner is an art. A Buyers Agent can be very useful in not only looking out for your best interest in these transactions but also helping you schedule everything that needs to be done for you to close on your new home.

2. The house failed inspection. Inspections are invaluable when buying a home. You do not want any surprises a month or two after moving in. Make sure every area of the home is inspected- from the foundation to the attic and have the inspector evaluate your drainage in the yard as well. You certainly don't want any flooding. Use a trusted professional with a good reputation. This is another area your Buyers Agent should come in handy. Most buyers agents have a handful of inspectors as well as contractors they can recommend to insure you are getting a safe place to live for your and your family. An inspection may help you avoid buying a house that will cost thousand of dollars in repairs down the road.

3. You can't get financing. It is important to know what you can afford before you go shopping for a home. Meet with a lender prior to beginning your home search. You don't want to shop for Champagne if you are on a beer budget. It's also a good idea to shop lenders. Some institutions offer special rates to first time buyers or have special incentive programs for veterans or retirees. Do your homework before you put an offer on that perfect home, it will save you from being disappointed later.

4. Your appraisal came in low- now what do you do? If the appraisal is lower than the sale price, the buyer may need to pay in cash the amount not financed by the mortgage company. For example, if homeowner and buyer agree on a $250,000 sale price, but an appraisal determines the home is worth only $235,000, the home buyer may have to come up with $15,000 out of pocket to complete the purchase. If the difference is too much for the buyer to manage, there are three options: find additional financing elsewhere, pay for another appraisal, or back out of the deal. Your Buyer's Agent can also help you through this scenario by placing an "appraisal contingency," in the contract so that if you need to back out of the deal you do not lose your earnest money deposit.

5. There is a lien on the property. Between the time an offer is accepted and the moment the keys change hands, a title search on the property must be conducted. If there's a lien (i.e., an unpaid debt that lists the house as collateral), the sale can't be completed. If repairs are made during the escrow period but the seller hasn't paid the contractors yet, a last-minute lien could be placed on the property. As a buyers agent, I have run into the situation before and while we were able to have the lien abated it created a great deal of anxiety for the buyers and delayed the closing on the property. Make sure you have a clear title on the property.

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