I Want to Buy a Home
Below are the basic steps in the buying process
You're under Contract
Due Diligence
Due Diligence is a period of time you and the sellers agree upon, with a small deposit from you to the sellers to do the following:
The Appraisal
Once your offer is final, your lender will order an appraisal to get a professional opinion of value on the property. The appraisal is a necessary step in getting your financing secured and protects both you and the bank by making sure the home's value matches the agreed upon sales price.
The Home Inspection
Home inspections give you the opportunity to have the home thoroughly examined by a professional. He or she will provide you with a detailed report on the overall condition of the house, including outlining any issues and necessary or recommended repairs. If any major issues are noted in the report, you can try to renegotiate the purchase price with the seller, and/or ask the seller to make repairs, or you may back out of the offer altogether. The penalty of backing out, however will cause you to the due diligence money you gave the sellers.
Finally....The Closing
With due diligence complete, you are ready to move forward. This is when your agent, your closing attorney, and your lender will navigate together and gather all pertinent information. With this information, your attorney will put together the "Settlement Statement." This document lays out the final details of the loan and closing costs. Your agent will review this with you and determine whether or not everything is correct.
