What comes after Mortgage Application
OK, the mortgage application is finished and forwarded to the mortgage agent. What comes next? While you wait on the appraiser to be named, have the home inspected. This should also be a contingency in the purchase contract.
The home inspection will take about 2 hours. The inspector will climb up on the roof, in the crawl space, he will check out outlets, and take the cover off the panel box. He will make sure the heating system heats and the cooling system cools. Check out the plumbing and make sure the floor does not have any soft spots. He will look for termite damage from past infestations. He will find problems and give you some solutions. The home inspection report will have a punch list of the things that were found to need correction.
This punch list is what you use to negotiate repairs. During the past few months, we have seen sellers take low offers with the understanding that there will be no repairs. Inspection is for information only. Even with this new twist I still feel that it is a good investment or eye-opener, just to know what is going on in the house.
Home inspections cost anywhere from $350 to $650 depending on the size of the house and how much time is spent there. This is the best money ever spent in the home-buying process. You do not want to buy a home with problems, especially problems that open up more problems. I watch the Money Pit every summer to remind me of things I have forgotten that home inspectors will find. Another of my favorite real estate movies is Mr. Blandings Builds His Dream House. Again the movie makes fun of all the things that can and will go wrong when you are buying or building a home. I also suggest a home inspection when you have a new house built. This reduces the number of times the builder has to come back and also puts the builder on notice that you are willing to hire an expert to protect your interest.
Home inspectors are a buyer's best friend. They are trained to make sure you are making a good investment.