Esperanza's GUIDE TO BUYING A HOME..GETTING TO THE FINISH LINE..Step 3 and 4

Esperanza's GUIDE TO BUYING A HOME..GETTING TO THE FINISH LINE..Step 3 and 4

Step 3. Getting an appraisal

Once you have determined that there are no defects on title and all inspections concerns have been resolved, it is time to order an appraisal.

An appraisal is an estimate of the value of a property made by a qualified professional. The appraisal of your prospective home is as important as your credit history in obtaining a mortgage. After all, the property you are purchasing serves as the collateral for the loan.

Although the primary goal of the appraisal is to justify the lender's investment, it also protects you from overpaying. Your lender will generally hire the appraiser and will charge you as the buyer a fee for the service.

If the appraisal falls short of the amount you wish to borrow you may be refused a mortgage or offered a smaller amount on the mortgage. Your offer contract will be contingent on whether the appraisal comes in at or above the purchase price you and the seller have agreed upon.

Step 4. Closing

All the preparation is complete. Now it's time for closing! Closing is the legal transfer of ownership of the home from seller to buyer. It is a formal meeting that most parties involved is the transaction will attend. Closing procedures are usually held at the title company or lawyer's office. Your closing officer will coordinate the signing of documents and the collection and disbursement of funds.

In order to ensure a smooth closing you will need to:

.Obtain a homeowner's insurance policy and provide this information to you lender and/or closing agent.

.Review the Settlement or HUD-1 that your lender or closing agent will provide you 1 to 2 days before closing.

This documents will contain a detailed description of all costs associated with the transaction, including the exact dollar amount you will need to bring to closing.

.Verify with your lender and/or closing agent any other items that you need to bring with you such as a valid driver's license or other form of identification.

.Conduct a walk-through of the property prior to closing. This will give you an opportunity to see that the condition of the house is the same as it was at the time of contract. Additionally, you will be able to ensure that any repairs agreed to by the seller, based on the inspection, have been completed.