Part 1: Contact a mortgage broker.
Part 6
The Home Inspection & Other Contingencies
Inspections
The Home Inspection is a critical part of the home buying process. I advice EVERY client to get a home inspection. Usually these contingencies are between 7 and 10 days from the date of offer acceptance. It is important to make arrangements to attend your home inspection. A good inspector will use this time to educate you on your potential new home. The home inspector will do a visual inspection of the roof, the heating & cooling systems, the foundation, walls, appliances, and often will check for mold. After the inspection, the inspector will provide a report telling you what needs to be fixed on the home and what might be maintenance issues in the future. Your real estate agent and you will then negotiate with the seller to get some or all of the items fixed. If the home is listed as an AS-IS property the seller may not fix any items but you can decide whether the repair issues are ones you want to tackle. The home inspector may also conduct a termite inspection.
Other inspections that may be requested include environmental inspections, well certification, and a septic evaluation.
Financing Contingency
Most contracts are contingent on the buyer obtaining the financing as expected. It is important to make the formal application for the loan as soon as possible and provide the loan officer with all necessary documentation.
Appraisal Contingency
The ability to get the mortgage is contingent on the home being able to appraise for the purchase price. This can be a huge problem in our current market as many homes do not appraise for as much as sellers want to sell them for. If the appraisal comes back under the purchase price the seller must usually decide whether they are willing to lower the asking price of the home.
If you are ready to start the home buying process, give me a call!
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