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.

When the right time to buy a home?

Have you ever heard a real estate agent say that it’s a bad time to
buy? I haven’t. It’s either ‘‘The market’s hot, buy now before prices
go up even further,’’ or the opposite, ‘‘It’s a buyer’s market right
now, make an offer while the deals are good.’’ Come on, they need
to make money, too, right? A good time to buy is when you, and
only you, decide that it’s right.

The best ways to know if it’s a good time to buy or not is the fact that
you’re even thinking about it in the first place. It’s a good time to
buy if you’re ready, and a bad time to buy if you’re not. Don’t get
pushed into home ownership.

Too many people get caught up in real estate valuations, home
price cycles, the number of homes listed, buying in the winter instead
of the summer, and so on. While these are all useful considerations
they shouldn’t make that much of a difference when all is said and
done. Yes, it’s easier to buy in the summer and move if you have kids
and you want them to finish out their school year and start a brand
new school at the beginning of the new school year. Yes, home prices
might be a little softer in the wintertime than in the spring or summer
because of seasonal demand. And yes, it might be a good time to buy
a home because the market is soft and values will certainly appreciate.
But don’t get caught up in all of that. At least not to the point of
paralysis. There is no right answer. Certainly these things should be
taken into consideration at some point, even more so if you’re a real
estate investor who studies market trends and buys and sells homes
for income. But if you’re just looking for your first home, don’t get
bewildered by such facts.

Buy a home not for an investment but buy a home because you
want to. Buy a home that you can call your own. Begin saving for
the future by building equity. But buy from the heart while using
your head. Don’t buy because some real estate guru told you that
you could make millions in real estate. Bookstores and late night
infomercials have enough on real estate investing. If you’re reading
this book because you want to become a real estate tycoon, you
bought the wrong book.