Congratulations! You made it through inspections and you are one step closer to purchasing your new home!
This next phase will seem pretty quiet with the exception of your lender requesting information/documentation from you. We are entering the appraisal and title work period which is done pretty much in the background. If you want to refresh your memory about what the appraisal is check out this blog post.
Here are the things you need to know about the Appraisal/Title Period:
- You do not attend the appraisal
- I do not attend the appraisal either
- Once your lender orders the appraisal it will take a few days to get the appraiser scheduled
- The cost to you will be roughly $400-$600 for the appraisal. The lender will probably require the appraisal fee in advance (usually paid with your debit/credit card) but it may be paid at closing as a part of your closing costs.
- If the appraiser flags any components of the home (depending on your loan program) that will be considered a “condition” of the loan. Once those item(s) have been remedied the appraiser will go back out to re-inspect the property at a fee of roughly $100-$150. This will be charged to you but we may be able to negotiate some of this with the seller.
- The listing agent will be communicating with the appraiser
- It might take up to 10 days from the time the appraisal was ordered for the report to come in
- Once the report is completed it will go to your lender and your lender will share it with you. I do not get a copy from the lender.
- If the house appraised AT or ABOVE the sales price, nothing needs to be done. We will continue moving forward to the closing.
- If the house did NOT appraise AT or ABOVE the sales price, then we will go back to the sellers and ask for a reduction in sales price. If the sellers will not reduce the sales price to the appraised value then you have the choice to terminate the contract and get your deposit back or to bring the difference with you to the closing.
- The lender will order the title review from your attorney of choice.
- Once the appraisal has passed or we’ve negotiated the sales price, you are free to start packing up your things and hiring a mover. SO exciting!
Watch this video for more information about the appraisal.
During this time period, your responsibility is to make sure you have turned in and signed any and all paperwork from your lender.
Remember, do not make any changes to your financial situation; i.e. no big purchases, don’t open any new lines of credit, don’t quit or change jobs.
From this point forward you will be working very closely with your lender. I will be checking in on a weekly basis to get updates from the lender and title company. Once we have the clear-to-close I will reach out to you to set a time for the final-walkthrough and a few more things before we go to closing!