5. Appraisal : If your contract has an appraisal contingency or loan contingency, an appraisal will be performed. The appraiser will call either you or your agent for an appointment. He or she will come to your home and do some measurements, take pictures and notes, and go back to the office to write it up. Depending on the type of loan, the appraiser may also do a minimum home inspection, which includes a visual inspection of the roof and flipping switches on to see if major appliances work. Usually, it takes about 10 days from the date the appraisal was ordered to its completion. If your home appraises lower than the contract amount, there may be some renegotiations, or the buyer may even back out of the deal unless an adjustment is made. 6. Loan Approval : After the appraisal, and after all the paperwork required to verify the buyer’s ability to pay the mortgage is accumulated, the “loan package” is sent to the underwriter. Most of the underwriters are out of town. This process usually takes three to five days. Some of the lenders are doing point-of-contact underwriting by way of computer. It is not unusual for this step to take place within the last week before the closing date. 7. Title Work : Normally, the seller is providing title insurance for the buyer. If you have not done so already, your agent will bring or fax copies of the contract to the title agent or attorney that you and your listing agent had previously discussed using. For a cash sale, the title work is usually ordered just after the contract is negotiated. If this sale is contingent on financing, then usually the title work will be held up, pending credit report, inspections, and appraisal steps being satisfied. Your agent will normally keep in touch with the title company or attorney and advise them of the buyer’s loan progress.
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