Once your contract has been fully executed, the realtor is going to assign a home inspector to inspect the home in question. They will investigate the structure of the home to see if there are any deficiencies with the plumbing, heating, A/C, foundation, etc. This is a very detailed and thorough inspection, which typically takes a few hours to do and write up. You should receive the report within a day or two of the home inspection. Then after receiving the report, talk with your real estate agent to see if you want to proceed with the contract with the home in its current condition. We would always recommend our buyers to get a home inspection, as they are worth their weight in gold! You may find some type of deficiency with the home that may give you and your realtor some leverage and negotiating power.

The home appraisal works a bit differently. The processing team working on your loan will order the appraisal on your behalf to see what the value of the home is. The typical cost of an appraisal ranges from $500 to $650 but could be more depending on the size and uniqueness of the property. The process normally takes about 1 to 2 weeks for the appraiser to accept the job, schedule a meeting date with the sellers, inspect the home, and write the report. The report will use the comparison approach by comparing your home to the closest 3-6 homes that have similar features to yours. The appraised value is important since the lender will only lend on the appraised value or the sales price, whichever is lower. Also, the home inspection and the appraisal are fees are paid up front, not at the closing table.

If you like to learn more about the mortgage process or have any questions about mortgage financing, give us a call at the office at 727-376-6900.

NMLS ID: 327290; NMLS ID: 2062741

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