Many homebuyers are unfamiliar with the home shopping process. The very first thing you should do is talk with a loan originator to find out how much money you are qualified to borrow. This is important before you go out shopping for your dream home.
The offer and the acceptance is just the beginning of the process. It is critical to read the purchase contract very carefully as majority of the time there will be a contingent agreement: a term that means that there’ll be a transaction after several key factors are resolved. Those factors usually vary from situation to situation, but some factors are common across contracts.
Appraisal contingency would be one of the factors. It is important to hire an appraiser to provide the market value based on the current trends in the area.
A loan contingency is strongly suggested if you need financing assistance. Banks/Lenders need to verify the ability to repay the loan, source of the down payment, as well as reviewing the appraisal report.
Inspection contingency is next in line. Your realtor can often provide a referral to some great inspectors or a company who can provide detail reports on the condition of the home you are buying. They will help you find any potential defects to be repaired or addressed.
Near the end of the buying process comes a final walk through, something a buyer has the right to do before closing. Often times, they’ll take enough time for a close inspection, so the seller should keep the electricity and water running during the walkthrough. This walkthrough ensures the quality of the house, and confirms any previously noted defects to the house have ben addressed by the seller.
Once these are all completed, it is important to keep to the closing date. The closing date is the date the seller should be out of the house with the house being clean. If the seller delays the closing date, the buyer can lose an interest rate lock-in, leading to increased costs.
Home buying can be overwhelming and frustrating. This is one of the largest investments in ones life. Give me a call today to go over all the details.
