{"id":369084,"date":"2016-04-04T10:47:12","date_gmt":"2016-04-04T15:47:12","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/buying-a-home\/problems-when-closing-on-a-house.html"},"modified":"2023-12-02T13:47:17","modified_gmt":"2023-12-02T18:47:17","slug":"problems-when-closing-on-a-house","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/buying-a-home\/problems-when-closing-on-a-house.html","title":{"rendered":"Problems When Closing on a House"},"content":{"rendered":"\n
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Problems When Closing on a House<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Katrina Wilson, Esq.<\/a>\n | Last reviewed\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

The closing process is the last step in a home sale. You’ve signed a purchase agreement for your new home and put down an earnest money deposit, but you don’t have title to the house. If everything goes smoothly, you should receive the title on the closing date. Any last-minute problems, however, can derail the closing process.<\/p>\r\n

This FindLaw article reviews some common problems that may arise during the process so you can work to prevent them in advance.<\/p>\r\n

The Bank Won’t Pay the Entire Purchase Price<\/h2>\r\n

Banks need a home appraisal before closing day to ensure the property securing your mortgage loan is of equal or greater value. If the appraised value returns low, the bank will only agree to provide a mortgage loan up to the appraisal amount. This leaves the homebuyer responsible for the remaining amount.<\/p>\r\n

You have two options. First, you can have your Realtor return to the seller with the appraisal document to document the valuation of the house. Then, you can renegotiate the sale price to the amount the bank is willing to lend. The seller will be unhappy about this, but they will likely experience the same problem with every buyer needing bank financing.<\/p>\r\n

The seller might also decide to do some updates and repairs to bring the home in line with the selling price they want.<\/p>\r\n

The second option is a second appraisal. Usually, the bank’s appraiser completes the appraisal. If you believe the first appraisal was inaccurate, you can ask for a second independent appraisal. It may come back the same, and the bank does not need to accept that appraisal, but they might.<\/p>\r\n

The Bank Won’t Pay Any of the Purchase Price<\/h2>\r\n

Loan documentation errors can hinder the closing process. A few examples of documentation errors include, but are not limited to:<\/p>\r\n