When you are planning to buy a house, the first question that comes in mind is “how much house can I afford“. Then the home buyers need to keep in mind is to find out how much loan amount your lender will approve. You should not look for a short sale property which you cannot afford to repay. Otherwise, you may have to take out a refinancing loan in order to pay off your old loan. Go through this article to know the 4 problems that you may face while financing a short sale.

• You may have to wait for the approval of a short sale unless the short sale is pre approved HAFA short sale. It may take 4 to 8 weeks to a year or long for getting the approval of a short sale. The interest rates generally fluctuate at this time. You will find many lenders who will not lock your loan for more than 30 days without taking any charge from you for the privilege. There are many lenders who will not give you a loan lock until your short sale gets approved. You will not be eligible to purchase a house if your interest rate spring upward.
• You will find many banks who want to close within the time period of 30 days of the approval of the short sale. In case you get a loan that needs long period for approval, you may not be able to close within the specific time period and your approval period may get expired. Sometimes, the delays with your short sale financing are predictable even in case of a conventional loan.
• You will find different lenders have different conditions on their loan. The FHA repair guidelines can help you for the repair and maintenance of home. A VA loan is taken out for a pest report and a completion certificate of a pest. The appraiser can ask you for the replacement of a failing roof even if you have taken out a conventional loan before agreeing to finance the short sale. The banks hardly care to pay for any kind of damage on your house. The short sale is usually sold in the condition in which the house is actually. The banks also do not allow the sellers to make any payment for the repairs because the banks would like to have the funds that the seller would waste in the repayment procedure.
• In case there are two loans on a short sale, then you will need the approval of both the lenders to close the short sale. If you’re planning to take a step ahead with an appraisal before you get the approval of both the lenders, then you are taking a risk. However, this may happen that one lender approves your short sale while the other rejects it. In order to avoid such unnecessary problems, you should get the approval from both the lenders before you choose to opt for short sale.

It is seen that the buyers asks a seller to pay the closing costs. In case, you find that the buyer does not have sufficient money to pay for the closing costs and the bank refuse to allow the consideration, the buyer may not be able to purchase the short sale.