It is one of the most frustrating things in the world. You’ve walked through the home of your dreams, decided you had to make an offer, and filled out all of the paperwork with your bank. As you sit and think about what color to paint the kitchen and contact Denver moving companies, it happens – the realtor calls you with the bad news your deal fell through.
There are a variety of reasons that this scenario can turn into a reality – some of these reasons are preventable, others are not. Let’s take a look at some of the most common reasons, so that you can be prepared, requiring the services of a moving company in Denver a whole lot sooner.
Can’t Obtain the Loan
If you skipped the pre-qualification process, you might want to reconsider that first step. There are times when the mortgage just won’t go through – maybe it’s your credit score, or just a few negative entries on your credit report. If it’s the later, this is fixable, but takes time to show up on your credit report. You should take the time to review your credit and correct any problems ahead of time, so that nothing stands in your way of obtaining the financing you need.
In some cases, debts that you are carrying, even if you are paying on them faithfully each month, can work against you. If you’ve recently purchased a car or obtained financing for a big-ticket item like a computer or refrigerator, your lender might be a bit hesitant to add to your debts.
In both of these cases, you can either work to pay down the debts, or you can offer up a larger down payment on the mortgage. This will mean a lower loan amount, which will work in your favor towards financing the home of your dreams, allowing you to move in sooner with the help of Denver moving companies.
This can happen to anyone for a variety of reasons. Some people find a better house to suit their needs, or closer to their workplace. Others just realize it is going to cost them more money, and they get cold feet. Some just get scared at the enormity and finality of the decision altogether, or research the neighborhood and find it isn’t as desirable as once originally thought.
Sellers can experience the same hesitancy, and can change their mind at any time. Maybe moving is going to put them further into debt because the appraisal wasn’t favorable, or they just cannot imagine parting with a house that holds so much history to their family. Whatever the reason, it happens, and sometimes can’t be avoided.
When you are the buyer, the best way to combat this is to arm yourself with knowledge. Not just about the house in question and the surrounding community, but knowledge of your financial situation and needs. Why are you moving in the first place? Does the house suit your needs? Don’t find yourself making an offer and then retracting it as quickly as you submitted it, losing out on a deposit paid to a residential moving company.
A Bad Inspection
When a licensed home inspector conducts a walk-through, they might find an electrical (or other) issue that the homeowner refuses to fix. This can lead to the buyer retracting their offer. Of course, it isn’t limited to just electrical issues – the roof, heating system, drainage, and plumbing are amongst other issues that an inspector checks for. If the needed repairs can’t be negotiated into the contract, the bank will deny the mortgage, simple as that. Sometimes, there is a structural issue, in which case no negotiations can be made whatsoever. The bank will simply deny the mortgage on the spot.
It’s common practice to receive a loan up to the appraised value of the home. If you aren’t able to come up with the difference, or the seller isn’t willing to negotiate a lower price, the loan will be denied, no Denver moving company required.
Pending Sale on Your Current Home
This applies to those whose contract is contingent upon the sale of your current home, which happens to be the majority of those seeking to get a new mortgage. You just can’t afford two mortgages, so why would the bank agree to let you obtain a mortgage when you haven’t gotten rid of the other one? You can look into a bridge loan to help out in this situation, or if you are a new homebuyer who hasn’t even listed your old home yet, you can go for a home-equity line of credit.
In this way, you are extending your loan, with the collateral being the equity on your home. You can get that moving company in Denver to lug your stuff to your new home while the old one is on the market!
If you are careful, you can avoid any potential snags popping up during the approval process. Just take a look at your financial situation, and be sure the home you are making an offer on is worth what the owner is asking. Contact us today, we would love to be your residential moving company when the deal goes through!