Ideally, a person who is interested in buying a Mississippi home will use objective criteria to evaluate whether following through with the transaction makes sense. For example, a buyer should consider whether the home might need significant repairs or upgrades in the near future. If a property has a leaky roof or an old furnace, a buyer might need to spend $10,000 or more to fix or replace those components.
After factoring in maintenance costs, an individual may conclude that a property isn’t as affordable as it once seemed. In some cases, the lender will conclude that the home is worth less than what the buyer agreed to pay for it. For example, an individual agrees to buy a home for $500,000 that a lender believes is worth $450,000. In such a scenario, the lender would likely only provide financing up to $450,000. This would mean that the seller needs to decrease the asking price or that the buyer needs to put more money down. A buyer could also choose to find another lender willing to provide adequate financing.
If a person loses a job or experiences a reduction in income, it may make it harder to get a loan. In some cases, a lender may approve a mortgage application only to rescind approval prior to the transaction closing.
A real estate law attorney may be able to help a buyer resolve appraisal or other issues that prevent a transaction from closing. An attorney may also advise buyers about their rights as it relates to backing out of a purchase contract. Generally speaking, buyers may be able to cancel a deal if the inspection doesn’t go well or if a seller fails to disclose mold, water damage or other problems with the home.