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3 Signs You Should Walk Away From a Home Purchase

By Sally Deneen

So you've made an offer on a home you thought you loved, but now something doesn't feel right. What are warning signs that you should back away from a home purchase?

"If you find yourself awake at 3 a.m. wary of some part of your purchase decision, take note," advises real estate agent Brendon DeSimone, who spells out a few red-flag scenarios that should make you think twice.

While most people feel nervous at some point, he says the key is to "know when enough is enough, and be willing to walk away."

"You have every right to do so," DeSimone says.

Three red-flag scenarios:

-Your home search rightly began with a long list of criteria for your dream home, but practicalities pushed you into giving up on the desired neighborhood or a place with a new kitchen — and now it doesn't feel right.

"Take a step back," DeSimone says, "and listen to your gut."

-The home inspector found unexpected problems with the home, or maybe a neighbor alerted you to an unforeseen issue.

You could renegotiate the price — or not.

"Unexpected inspection issues, particularly large ones," DeSimone notes, "can cause scared buyers to walk away."

-The terms on the mortgage loan at closing aren't what you were promised beforehand. The Consumer Financial Protection Bureau assures that you can walk away from the signing.

"Don't sign the closing documents if the loan is not what you were promised. You don't have to sign anything at closing unless you are satisfied with the terms," states the government website. It notes that "walking away from a purchase loan closing isn't easy, but it may be preferable to agreeing to a loan that is more expensive than what you were promised."

In the end, trust your gut. "You should be happy and excited for the purchase," DeSimone says.