"Bust Out" is the term used in the Mortgage and Real Estate world that describes a deal that has gone south and is no longer moving towards closing.
It happens, so always submit a back up offer on a home you like, even if it is under contract. If a bust out occurs, your up next. We never want to see a BO next to your name on the board.
Here are the top culprits that cause a bust out:
1. Don't Mess with Your Mortgage Pre Approval This is the point where many borrowers run afoul. If you hope to keep your purchase alive, don't do anything - from application to closing - that might change your financial picture and sabotage your final approval.This means no shopping on credit for appliances, furniture or anything else. Don't switch jobs, fall behind on your bills, co-sign a loan for anyone, or in any way reduce the income stated on your application.
2. Read Homeowners Association Documents Carefully When you purchase a home in a managed community governed by a homeowners association (HOA), you'll be given a mountain of paperwork to read and approve. Because there may be deal killers included in the fine print, it's important to get to this task immediately upon receipt of the documents.
Look for any information about liens against the property; current litigation against the HOA, the builder, or the developer; and any red flags in the HOA budget.
3. Home Inspection Problems All homes - even newly constructed ones - may have problems. Going into the process not fully understanding this can set you up for a failed real estate deal. Sure, you ideally want to find a home that was owned by Mr. or Mrs. Clean who conscientiously took care of it during their entire ownership, but those are few and far between, and seeking them out is unrealistic.
Set your sites on finding a home that has small, easy-to-fix problems, and don't freak out if some are worse than others. In other words, when considering making an offer, laugh at the loose doorknob but negotiate when it comes to water damage or worse.
Sure, in a buyer's market you may get away with minor demands. In a seller's market, however, there is always a cleaner offer right behind yours.
4. Budgeting Blunders, under estimating closing costs You may understand your down payment expense, but make sure you have a clear idea of total closing cost required. Closing costs are a little harder to pin down. They vary wildly and depend on the type of loan, the amount of the down payment, and a host of other factors.
The total amount of cash to close is often not disclosed until 24hrs before closing. To avoid this particular problem, pay attention to all communications from your lender. Get an estimate and understand the how much will be required from you to close.
Pay close attention to the "Calculating Cash to Close" section, which concludes with an estimated cost to close the loan. Remember, this is an estimate and the amount may go higher or lower in the end. Speak with the lender if you find any problems here, especially if it will be impossible for you to come up with this money.
Just before closing you will receive the "Closing Disclosure," which is quite similar to the estimate, but these figures are final. Again, review the "Cash to Close" figure.
By and large, real estate deals conclude successfully. Typically, it all comes down experience. Edie Webber and team are experienced in every part of the process and will make sure YOU DON"T BUST!
Author:Edie Webber Phone: 817-798-6630 Dated: September 2nd 2016 Views: 79 About Edie: My current state of happiness and realized dreams is the hard won result of a lifetime journey. I ha...
Pinnacle Realty Advisors is a real estate brokerage firm specializing in residential real estate sales with additional services to support our clients’ needs and agents’ businesses. Our Mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry. Our pledge to you is to use all our resources, professionalism, and ethics to obtain the highest price for your property in the least amount of time.
Pinnacle Realty Advisors is a real estate company with a solid structure and foundation with a commitment to success, productivity and positivity. We focus on helping good things happen for good people. Simply put, positivity is interwound in our culture and is integral to our success and productivity.
Pinnacle Realty Advisors has an unwavering commitment to:
HONESTY – We wear it on our sleeves.
INTEGRITY – We have a strong commitment to our reputation. If something isn’t right, we’ll follow through to correct it.
HIGH QUALITY PEOPLE – Pinnacle Realty Advisors prides itself in only employing motivated, highly competent individuals. If you are not a top performer, you are not employed here.
INNOVATION – We are constantly challenging the status quo by learning, adapting, and finding innovative ways to deliver a better real estate experience.
TRANSPARENCY – We say what we mean and do what we say.
QUALITY PRODUCT – We believe in the value of the service we provide.
SIMPLICITY –We strive to make transactions with our clients and associates as seamless and simplistic as possible.
WORK ETHIC – We are passionate about what we do. Our team is committed to success and whatever it takes to achieve it.
BALANCE – Work hard. Play hard. We encourage our employees to maintain a healthy personal to work balance.
CAMARADERIE - – We enjoy serving our clients and coworkers and cherish those relationships deeply.
If you are interested in a new career in real estate or already have a real estate license, but wish to learn more about our company, please contact us directly to set up an interview. We offer our agents 100% of their commission, company leads, training and coaching with no office, desk fees or monthly marketing fees ever.
How to Manage a Lump Sum MoveDoes your employee relocation package inc
"Ryan sold my Dallas town home in about 2 weeks time. He was extremely professional. He told me from the very start what to expect, provided me comps,hired a few contractors he preferred to prepare our home for sale , had an open house & kept me informed during the entire process. He is very honest and he made the entire sales process a great experience. Ryan made our closing so easy by hiring title company he has used that was the best. We closed remotely since I live 3 hours from Dallas & the entire operation was first class. I would highly recommend Ryan to anyone with their real estate needs. "