Whether it is a first home purchase or it is an upgrade, buying a house in Pennsylvania is exciting. However, even if things seem on track, the time leading up to closing day can present some not-so-good surprises that can either prevent the closing or cause the soon-to-be owners to take a step back and reevaluate their decision.
Investopedia discusses some of the most common problems that can show up before closing time. Some occur during the inspection process. There may be major or minor repairs that need to be made, or perhaps there is a mold or termite issue. These may cause the buyers to back out of the sale completely or delay closing while negotiating with the current owners.
Another common problem often relates to financing for the loan. While most owners will not accept an offer without a loan pre-approval, there are issues that may crop up that change the buyer’s ability to afford the mortgage. The appraisal can also affect the amount of the loan if the house purchase price is higher than the appraisal. In this case, the buyers usually must come up with cash to pay the difference.
Another issue deals with the title, as it may show a lien against the property or other problem. According to Forbes, title insurance can help protect the new owners against any potential litigation due to past occurrences. Common claims the insurance may cover include:
- Forged signatures
- Errors or falsifications in public records
- Omitted heirs
- Title confusion
- Issues associated with a will
Another benefit of obtaining title insurance is that during the approval process, the company conducts a thorough investigation of the title, which further reduces the risk of any potential problems.