For many people, the home-buying process mostly involves searching for and negotiating the price of a home. However, you still have work to do even after you agree on a price with the seller. Below are the remaining steps once the seller accepts your purchase offer.
Inspect the Property
Conduct a home inspection before proceeding with the rest of the process. The inspection determines the condition of the home's structure and major appliances, such as the heating and cooling system. Get a qualified home inspector and use their report to determine whether you can proceed with the purchase as it is.
Including a home inspection contingency in your purchase offer lets you back out of the deal without repercussions. Alternatively, you can use the inspection report to negotiate a more favorable term. For example, you can ask the seller for repairs.
Apply for Mortgage
The next step is to process your mortgage in readiness for closing. The process will be faster if you already have a preapproved mortgage. Mortgage underwriting is paperwork-heavy, so you should work with a real estate professional to ensure everything is right.
Mortgage processing closely connects with a home appraisal. The appraisal process, which the lender orders but you pay for, determines the property's current market value. A lender cannot give you more money than the property's value. Again, you can use an appraisal contingency to back out of the deal if the appraisal value is too low.
Buy Home Insurance
Most lenders require you to purchase home insurance before closing. Your lender invests in your house. The lender might lose money if something happens to the house, you default on your loan, and you cannot afford to rebuild or repair the house. Thus, lenders require home insurance since a disaster can happen even a minute after purchase.
Conduct a Final Walkthrough
Conduct a final walkthrough before you possess the property. Use the final walkthrough to confirm that the property is still in the same condition as when you submitted the purchase offer. For example, you can confirm that the heating system still works and the seller has not stripped off the kitchen installations that came with the offer.
Close the Deal
During closing, you finalize the whole process and get legal possession of the house. You will scrutinize and sign the final forms, settle closing costs, and receive the property's title. Ideally, a real estate lawyer or agent should review all documents before you sign them.
For more information on home selling, contact a professional near you.
This website can serve as your home for information about real estate. Here, you will find articles about the buying process and others on the selling process. We've also included content related to getting a mortgage, finding a real estate agent, and scheduling an inspection. We hope that by addressing all aspects of the real estate world, we will make you better prepared to handle any real estate transactions that might be in your future. After all, real estate can be a really smart investment, but only if you buy the right home and know how much to offer. Start reading, and enjoy what you find.