Are you in the process of buying your first home? If so, then you know just how exciting and overwhelming the process can be. Even if you and the seller have already agreed on a sale price, there's still quite a bit that needs to be done before you can close on the home and have the keys placed in your hand. Specifically, there are a few tasks that will need to be completed before closing on most homes.
Finalizing Your Mortgage Approval
More than likely, you were pre-approved for a mortgage early on in the home-buying process. However, that pre-approval wasn't official, so now is the time to get your home loan formally approved by the lender. This shouldn't be an issue or take too long, assuming there haven't been any major changes to your credit or debt-to-income ratio. Your real estate agent should be able to help you finalize your mortgage approval and send the necessary documentation to your seller's agent. If you need more help with your mortgage approval, talk with a professional--like Doolin Security Savings Bank.
Having a Home Inspection Completed
For many home loans (such as FHA loans), a home inspection is also required to be completed before closing on a real estate transaction. Having a home inspection done is also wise because it helps you identify potential problems with the home (such as a leaky roof or out-of-code electrical components) before you finalize your purchase. You may even be able to use issues identified by the home inspection to your advantage in negotiating a lower sale price or in asking the sellers to take care of certain issues before you close.
Having the Home Officially Appraised
Your mortgage lender will also probably need to conduct an appraisal of the home before closing. This will help to determine the value of the home and make sure that it's in line with what you and the seller have agreed upon. If the appraised value of the home is significantly lower than your agreed-upon purchase price, for example, the seller may need to lower the sale price in order to go through with the transaction.
Conducting a Check on the Home's Title
Last but not least, your real estate agent should also have a check done on the home's title to ensure that the title doesn't belong to somebody other than the seller and/or that there are no legal liens on the title that would cause problems for you down the road. Once the title is found to be clean and clear, the closing process can continue.