The Home Buying Process:
Step # 6. In Escrow Or Under Contract.
At this point the sellers already committed to sell the house to you and you committed to buying it from them, as long as, after doing your due diligence, everything looks good.
Here is what we mean by due diligence:
First, you will apply for a loan for the specific house that you are buying. Among other things, the bank will send an appraiser on your behalf to make sure the house is worth every penny you committed to pay for it.
If the house is worth more than what your offer is, congratulations, you are going in with instant equity.
On the other hand, if the house appraised for less than the offer price, the bank will not lend you more than the loan to value amount based on the appraised value. So, here is an opportunity to negotiate with the sellers.
Second, you will have an opportunity to conduct the inspections agreed previously with the seller. Although inspections are optional, we always recommend them because we believe you have the right to know what you are getting yourself into.
There is no such a thing as a perfect house, however, going in blindly can be very costly.
With inspection findings you may have an opportunity to negotiate with the sellers to get items fixed prior to settlement, or decide, if the findings are not big enough, to continue and fix them on your own after the purchase is complete or, decide that the findings are big enough to make you uncomfortable moving forward and decide to declare the contract null and void.
Last but not least, you will choose a title company. Among many other things, they are lawyers that will make sure the current owners are the current owners and they have the right to sell the property to you. This way, you will get a clear title at settlement.
This, is just a brief summary of a very complex puzzle were all the pieces have to fit to perfection to ensure you are getting the right house.
So, whenever you are ready to get started with your journey, just give us a call or send us a quick message to schedule a Free buyers consultation meeting. We’d love to have an opportunity to be of service to you.