How do you know if the house you are buying is a lemon? From the outside everything appears to be in good shape and after looking at the interior you decide that it is time to call your real estate agent and make a serious offer on the house. The next step in the process is to have the seller approve the offer and begin the process of arranging financing on the house.
As part of the terms of the purchase contract it is a good idea to have your real estate agent include an out clause that is contingent upon the appraisal and inspection of the home by licensed professionals. An individual that is licensed by the city or state to examine a house and ensure that all of the homes systems are correctly installed and working properly typically does a house inspection. The job of a building inspector is to see to it that the original construction work was up to code and that there are no faults or defects in the house before it is occupied. By having an inspection done the buyer will know if the plumbing and electrical systems are working properly and that the furnace and air conditioning have been sufficiently maintained. Other considerations that an inspector will take not of are the condition of the foundation that will show any stress or cracking as well as the roof for any leaks or water damage that would require a new roof before occupancy is permitted to a new resident.
The job of the appraiser is very similar to the inspector as the appraisal of a house will determine the actual value of the residence when compared to other houses in the neighborhood that have sold within the past few months. The appraiser does not take into consideration and upgrades or modifications that may have been done to the house, but does measure each room for an accurate accounting of the total number of square feet that the home has to offer. The appraiser will record how much the house is valued at and let the mortgage company know what the house should be selling for. If that number is within a few thousand dollars of the offer on the house the bank will approve the loan and fund the mortgage.
After passing both the inspection and the appraisal the mortgage company completes the paperwork for the loan on the property. Once everything is passed off and the final mortgage papers are signed at the closing the buyer is handed the keys to their new homes and the process of moving can begin.
RE/MAX Alabama (http://www.remax-alabama.com/) provides buyers and sellers with real estate maximums quality professional service. Art Gib is a freelance writer.
[tags]Alabama real estate, gulf shores real estate, Orange Beach real estate[/tags]
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