After make an offer to a house

Right after your contract is accepted, you will order an inspection of the property. An inspector crawls throughout your house looking for problems in the house. Is there termite damage? Is the roof in good shape? Do the faucets leak? Inspectors will even run the dishwasher to make sure it works okay.

Upon a satisfactory inspection report, your lender will order an appraisal. Notice that the appraisal and inspection are two entirely different things, although some get them confused. An inspection looks for problems with the house. The appraiser on the other hand ‘‘appraises’’ or determines the value of the home. Comparing similar homes in your area that have sold recently, typically within the previous twelve months, does this. While appraisers may indeed note the condition of the house as Good or Average, they don’t inspect the house for defects like an inspector does.

At the same time, your title is researched and a report is prepared. Your title report reflects all previous owners of the property as well as anyone else who might have had an interest in the home such as a lender issuing a mortgage or a contractor who placed a lien on the home during a remodeling stage. The purpose of this research is to make sure there are no other previous owners who at some point might lay claim to your property after you close on your house. For example, some long lost heir to the house fifty years ago never signed anything authorizing transfer of the house. Or there is an unsatisfied judgment on record that has never been paid. All previous liens or claims against the property have to be accounted for and properly released. When this is done, the title company will issue a title insurance policy protecting the lender and others against any
previous claims, recorded or unrecorded.

Once your appraisal and title work are done, your loan then gets sent to the underwriter, who reviews all the documentation and authorizes your loan papers to be printed. Your papers are sent to the person assigned to hold your closing, you show up, sign, and close your deal.