1. Financing – This is a big one, make sure you get pre-approved and know how long that pre-approval is good for. Just because you have a pre-approval it doesn’t mean the bank will finance the house you are buying. If you purchase a house and it is massively over priced the bank will not take that investment with you. Be careful in over bidding and know your comparables.
2. Inspection: The home inspection is great but it is not the final word. There are always things that the inspector cannot see, especially if the basement is finished. Look for cracks in the foundation in and outside and in the attic. You may find something during one of your measuring tours of the house pre-closing that everybody missed. Use this time to further inspect the house.
3. Title: The people selling the house cannot sell the house. The seller is divorced and either party does not know the house is listed for sale. When it comes down to closing you cannot close the house. This occurrence happens more than you think.
4. Not enough money: There are some liens on the house and the equity is maxed out and the deal cannot close. It happens.
5. The sellers realize they undersold the house and want more money and will not give up the house or try to amend the deal. This happens, and you will have to get your lawyer involved. I know you think a deal is a deal. Sometimes you get crazy sellers that think that they should have sold for more and will try to swindle more money out of you and will not co-operate with clauses, or will completely remove appliances or trash the house. This could take some litigation later but for now it sucks because you just want to move into your house that you bought fair and square.
6. Closing date: You agreed upon a day and they can’t close on that date because their new house is not ready. Usually this could be a deal breaker. Some people will try and change things later on in the deal to suit their needs.
As you can see there could be many problems that can go wrong with closing a house. There are many more. Make sure you have a good lawyer, home inspector and Real Estate agent, me to make sure you eliminate as many extra circular activities by sellers as possible for a smooth close.