Most people who purchase a home need to finance the property. There is helpful information about the financing process and how to resolve disputes that arise.
There are a few important steps for buyers to take, including deciding how much they want to spend on a home. Their income, current debt and expenses can help them determine this amount. It’s also important for the buyer to remember that there are also closing costs and a down payment to pay.
It can be helpful to obtain a mortgage pre-approval, decide what type of loan to take out and then the buyer can apply for the loan. The lender will review the application and once it is approved, it will disburse the funds.
Several disputes can arise during the financing process. One of the most common disagreements happens when the lender denies the buyer’s mortgage application. If the property appraises lower than the purchase price, the lender may reduce the amount of the loan.
There may also be disagreements between the buyer and lender about the interest rate, which can change between when the loan is approved and when the closing occurs. There can also be issues with the title to the property, including liens. If these are not resolved, the lender may not finance the property.
If the parties do not disclose information or if they provide false information, that can also cause an issue that can either delay or prevent the closing.
If a buyer needs assistance to resolve a real estate dispute, there is help available.