Financing and Inspections
Financing and Appraisal:
It is imperative that you keep in close communication with your lender who will let you know when additional documents are needed to approve your loan application and fund your loan. If the agreement is conditional upon financing then the property will be appraised by a licensed appraiser to determine the value for the lending institution. This is done so that the lending institution can confirm the investment in your property is accurate. Appraisers are specialists in determining the value of properties based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc. Keep in contact with your lender throughout the loan process to confirm the loan will go through smoothly and on time.
Once the Offer is accepted by the Seller there will likely be contingencies, one of which will be a home inspection. As the Buyer, you will need to have a licensed property inspector inspect the property and provide the findings if you are requesting repairs within the agreed upon time frame as outlined in the Contract of Sale. You may have elected to have several different types of inspections conducted (chimney, radon, mold, etc.) if you wish to obtain professional opinions from inspectors who specialize in a specific area.
Depending on the outcome of these inspections, one of two things may happen: Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to Settlement, or the Buyer, after reviewing the property inspection reports, requests a renegotiation of the terms of Contract (usually the Sales Price or requesting a Seller Subsidy). During these phases you should expect your agent to be performing the following tasks on your behalf:
Ability to handle the contingency phase of the contract on time
Scheduling and meeting inspectors (home, chimney, lead, radon, well, septic, oil tank, etc)
Ability to monitor the time deadlines to which the Buyer is contractually bound
Explain results of inspections to Buyer
Respond to all inspections on time
Monitor any repairs as a result of inspections
Negotiate results of inspections