The Final Walkthrough

There are two components to the final walkthrough. The first part is to address what was found in the inspection.  The attorneys likely communicated a week before and agreed that the required work was done to the property, but you want to make sure that it was taken care of to your liking prior to the closing.

The second component is to see if an event may have occurred in or to the house In between the time that the inspection was completed and the required repairs were done. Examples of an event could be a flood, a large storm, an earthquake, etc.

Such an event actually happened to me once when I was buying a home. During the walkthrough I found out that something wasn’t right. After the inspection, we had what was an incredibly wet May. I remember it being torrential rain. Water seeped into the house through the front by the gutter. There were leaves in the gutter that caused an overflow and some of the water seeped in between the gaps of the drywall near the windowsill. The seller disclosed it right away and we discussed what we needed to be done, but that’s an example of something that could easily occur before a walkthrough.

So, when you come to a reputable financial institution like a patrolman credit union, the loan officer will advise you to take a close look at the property during the walkthrough. You want to try to avoid what I call a pissing match between the buyer’s and the seller’s attorneys if you can because that could be enough to shut the deal down.

In these situations, it is very possible for a buyer on the principle of it all to just walk away from $1,000 of earnest money and say, “We don’t want this house anymore!”

That’s why we at Police Mortgage will often advise that when you’re selling a house, always try to collect as much earnest money as you can. Similarly, if a client of ours really wants a property, we may suggest making an offer with some fairly significant earnest money. If you can come in with $5,000 or $10,000 of earnest money instead of the bare minimum, which is usually $1,000, then you have spoken to the seller in a way that you’re saying that you’re very serious about buying this property.

Buyers are less likely to walk away and risk losing $10,000 over a crack on the steps they see when walking up to the house during the final walkthrough. It takes two to tango and sometimes logic doesn’t even matter even when significant earnest money is involved. Some buyers figure, “I’m going to have my attorney talk to your attorney and we’re going to try to get that $5,000 back.”

Loan officers hate these emotional situations. Once the loan commitment is done and the appraisal has cleared, then our assumption is that the loan’s going to close, no matter what. But sometimes silly things happen right at the end and emotions fly.

That’s why it’s best to have good attorneys and good realtors because they are proactively communicating with each other. Unfortunately, that isn’t always the case.

These situations reinforce the strengths of what we offer at Police Mortgage because of our vast knowledge. We’re not realtors, appraisers, attorneys, or home inspectors, but we have experiences of so many different transactions, some of them our own.  So, we are always actively advising our clients to do their due diligence on all aspects of the home-buying process including the final walkthrough.

Police Mortgage specializes in conventional mortgages, purchase money transactions, FHA loans, and VA loans. Led by founder and CEO John Aretos, Police Mortgage is known and respected for providing clients with exceptional service, customized terms, quick and easy closings, and low money down options. To learn more about Police Mortgage, call 312-499-8878.