If you are in the market for a home, you might have seen a sign that says there is a pending sale for a home. This means that the seller has accepted an offer, but the deal has not yet been closed. If you see your dream home placed in pending status, the contract for the home has been executed.
This means that it is no longer defined as an active listing and it will remain pending until all legal paperwork has been processed and the loan closes. This doesn’t mean you should lose hope because some sellers will allow offers to be made on the home. This will happen if a deal falls through.
It’s good to know what the possible situations are for a home to be in pending status so that you can consider the situation from your side. This is the case whether you are the buyer, the seller, the lender, or anything else. Here are some examples and reasons for a home being in pending status:
Homebuyers are not often aware of how a large credit card purchase can affect the mortgage process. Additionally moving cash from one account to another can jeopardize the mortgage process. Applying for a new kind of credit or accumulating any new debt can affect your ability to continue with a loan. If there is any type of transaction that disqualifies you from getting or continuing with the loan, the pending sale will fall through. This will put the home back on the market.
This is why you want to make sure that you consult with a loan officer during your loan process. This will guarantee that you did the right thing and following the right steps to a fail-proof plan when buying your home.
You need to review work for the title on the property once a contract is written. Then the buyers start their way through the loan process. There might be some remaining bills on the property from the current owner, along with other issues that could affect closing. If the seller does not take care of these liens, they will not be cleared from the title. In addition, the lender will not allow the sale to follow through. Public record flaws might also play a role in stopping the sale from continuing. You have to resolve any unresolved clerical issues or errors in the deed. As they can also cause problems for the sale to follow through.
A smart buyer will order for a property inspection on the house before closing. An inspector will look through the property. He will check the physical condition of the house, the foundation, the roof, appliances, and other listed items. This is to make sure that everything is working and that all issues that might be found can be fixed. If there are any items or parts that are not in working condition, the borrower is fully subject to exit the contract. This will remove the pending status.