Once your offer gets accepted, there will be many details to take care of. You lender will require certain items, like an appraisal and home inspection. Some of the procedures and requirements vary from state to state. Your agent will be able to tell you the exact steps needed for your area. The following are some of the requirements.
The appraisal plays a big role in the home buying process. If your appraisal comes in low, there are some things you can do to correct the problem. Your agent should be able to guide you through this process, but keep in mind this could be a major problem since your lender might not approve a loan for a certain amount if the house appraised lower than the price of the house.
The home inspection is very important, since it will tell you if there is something major wrong with the house. Sometimes, home inspections are not performed until after closing, again, this depends on your particular area and your agent or lender will give you instructions. Once the home inspector identifies problems with the house, you can ask the seller to repair them before your closing date. Keep a list of the items you asked to be repaired; you will need it on your final walk through.
A title search must be performed prior to closing. The title search is performed to ensure that the seller really has a right to the title on the property he is selling. There could be linen on the house which will prevent the transaction from taking place or there could be other problems. In most transactions today, title insurance is purchased for security. The buyer will feel assured that he has purchased a clear title.
Another requirement from the lender is that you purchase hazard insurance prior to your closing. Hazard insurance will pay for the cost of rebuilding your house in case of fire or other disasters. Additional insurance will be required if you live in an area prone to natural disasters. Your lender will let you know what they require.
There are some other inspections and test that might be required by your state. Check with your real estate agent for items pertaining to your particular area.