We just want to quickly go over what to expect during the second week of your purchase if you’re using a mortgage. After the first week, we’ve already had you meet with the lender, make your deposit with the title company, order the appraisal, and order the inspections.
So in Week 2, we’re going to see the results of those things. Your appraisal is either going to get done and we’ll get the report back for review by the lender and review by us, or it will be very soon; we’re going to get the inspection reports back in hand if we don’t have them already; and we should be getting the disclosures and reports from the title company and the seller, if we don’t have them already.
We’ll take a good look at all those and make sure if we have the appraisal done, that there are no issues with the value. We may have to go back and renegotiate the price, or there may be some appraiser-required repairs. Sometimes they’ll point out something that, from a lender’s point of view, they want to have taken care of – and usually, honestly, it’s just something as simple as there’s a smoke detector that needs new batteries or it’s missing, or a carbon monoxide detector that needs to be put in place somewhere in the house. Occasionally, there are more expensive or difficult things, but that’s pretty rare; usually, we’ll have noticed those when we first looked at the home.
As far as the inspections go, we’ll take a good look at those, determine if there are any real serious problems that make us want to cancel the purchase or renegotiate either getting a reduction in price or a credit from the seller – basically money to help you cover your closing costs in lieu of repairs to the property.
And the third thing that we’re going to be doing is taking a look at the disclosures and reports we got from the title company and the sellers. And usually, there’s no big surprises there; just routine, straightforward information.
Last but not least, your lender may be asking you for a few last bits of paperwork to complete your loan file, because once they have the appraisal back, they want to have a complete package they can submit to the underwriter for approval.
And that really should be wrapping up what you’re going to be doing during Week 2. One minor thing: if you haven’t already, you should get a quote from your insurance company to get coverage in place on the home, because your lender’s going to require you to have that. So rather than have that be a last-minute thing, you can get some quotes and decide what the right coverage is for you.
If you have any other questions or want to go into more detail, please call, text, or email. We’ll be happy to answer them.