The appraisal value of the home turns out to be less than the agreed upon amount. Once the appraiser inspects the home, that figure is used for many other computations. A lower than expected appraisal value could put the buyer in a position where he or she would have to come up with a larger down payment, which could halt the loan process or trigger the buyer to start a series of re-negotiations with the seller. The results of the home inspection are less than satisfactory. If the findings indicate that more work needs to be done than previously anticipated, many buyers will back out of the deal.
Some home inspections find that major work needs to be done to the home.
A new roof, foundation work, electrical work, plumbing, or other extensive alterations may be required. According to some lenders, the home inspection as a reason for canceling the mortgage is more prevalent today than it was in the past eight years. The borrower is dissatisfied with the lender. Sometimes borrowers are not happy with how the lender is handling the lending process or with how the lender is treating them. This can cause the borrower to cease the loan process and go to another lender.