2. Low Appraisals
Appraisals can lower than the set contract price and cause a house deal to fall through. Lender will only lend up to the value of the house property, so if the home value appraises lower than the agreed amount, the buyer cannot secure the full mortgage.
3. Plan for Home Inspection and Title Insurance Surprises
Title insurance is to ensure the owner’s house is fully theirs to sell. Lenders require title insurance to protect the house — the asset— that secures a mortgage loan. If a house owner defaults on the mortgage loan and a faulty title reveals that the home is not actually theirs, the bank has no way of recouping the money it lent.