Real estate disputes sometimes happen between buyers and sellers. These disputes could even lead to litigation. The prospect of going to court is not something many people look forward to, so you probably want to avoid such a confrontation over your real estate transaction. It may just be a matter of better understanding your real estate documents.
While not everyone can avoid real estate disputes, there are some problems you might catch early on if you know what to look for as you examine your real estate paperwork.
As Homelight explains, you should have enough time to look over your real estate papers before you sign them. This is because real estate documents can sometimes have incorrect information or spelling errors. You might find a wrongly spelled name or an incorrect address. Document errors can also cost you money if your contract imposes unnecessary fees.
To prevent yourself from signing a flawed document, request that you have the papers in advance before a signing. These documents should include loan documents, the closing statement and the closing disclosure papers. This should also give you time to inquire about terms you do not understand.
Pre-approved or pre-qualified
Terminology could matter a lot when it comes to landing a buyer for your property. Say that you are selling a property and a buyer claims to have pre-qualification to receive a mortgage. But this does not mean a lender will go through with the mortgage approval. Sometimes pre-qualified buyers undergo a change in financial fortunes that causes a bank to deny mortgage approval. As a result, your buyer may suddenly lack the funding to buy your home.
To diminish the chances of having a buyer back out of your sale for lack of financing, consider making sure a lender has pre-approved your buyer. The pre-approval process is a more comprehensive examination of a buyer’s ability to pay a mortgage. With a pre-approved buyer, you may feel more confident that the buyer will follow through with the sale.