The Home Appraisal
Your lender will require a home appraisal to ensure the property is worth what you have agreed to pay for it. The lender may arrange the appraisal, but you must pay for it. The appraiser looks at the property inside and out, then researches similar homes in the area that sold recently to find comparables, or “comps.” If the appraisal comes in considerably lower than the agreed price, your contract should allow you to break the deal. You can negotiate with the seller for a lower price, which the seller may accept since other appraisals will likely come in at the same amount. Another option, is to negotiate to bring more money to closing to bridge that gap between the sales price and the appraised value. In cases where the appraisal comes in higher than the agreed-upon price, you will have equity already in the home.
A Final Walk-through
Just before the closing, you should complete a final walk-through of the house. That final walk-through enables you to make sure no damage has occurred since you last saw the home, any scheduled repairs were made and that everything that was supposed to stay with the house is still there. For example, if you arranged for the refrigerator to stay but it’s gone, you have to sort this out at the closing.
The Real Estate Closing
The day finally arrives, and you’re ready to complete the house closing process. Before you sign any papers, review all of the closing documents carefully. Make sure the amount of the loan and your interest rate are correct and see how the final closing costs add up.
Besides you and your real estate agent, the escrow agent, and a representative from the lender will attend the closing. Don’t forget to bring your identification and a cashier’s check made out to the escrow company to pay for your home. Once the documents have been signed, the lender will fund the loan. Once the loan is funded, the title company will record the deed into your names. CONGRATULATIONS!!! You are a HOME OWNER!!!