Home Buyer Handbook 2018

STEP 3
MANAGE THE PENDING PROCESS
APPRAISAL
An appraisal is a standard part of the lending process. Banks and
mortgage companies will grant their loan based on the appraised
value of the property (as the home will be used as collateral for
the mortgage). An appraisal is done by a state licensed Appraiser
and is much more detailed than a CMA. Some items in the
appraisal will include comparing the subject property with three
similar properties in the area that have recently sold. The
Appraiser will assess the real estate market where the subject
property is located and highlight any negative aspects affecting
the market value like poor physical conditions, deferred
maintenance, or neighborhood factors.
LOAN CONDITIONS / CLOSING CERTIFICATION
When the lender has fully approved the loan a closing certification
is provided to the Buyer. This is a document which states the
terms under which the lender agrees to make the loan. It will
include the interest-rate, length of the loan agreement, and any
requirements the Buyer is expected to meet.
FINAL WALKTHROUGH
As a Buyer, you will be given the chance to look at the home in
person (“Walkthrough”) to make sure it is in the same condition as
when you first saw it and signed the purchase agreement.