It may seem hard to imagine that the home you're in today – whether it's your starter home or just one you've fallen in love with along the way – might not be your forever home. The good news is, it's okay to admit if your house no ...Read More
You will now need to contact your lender, who will arrange for an appraisal. This appraisal is required by the lender and paid for by you, the buyer. It assures both you and the lender that the home is worth the price being paid. The home inspections and appraisal usually happen within the same time frame.
At this point, you will most likely be required to submit additional documentation to finalize your loan. Typically, your lender will want to see current tax statements, recent pay stubs, updated bank statements, and proof that old debts have been satisfied. Do not lift your financing and appraisal contingencies until you have been told by your mortgage broker or bank that you may do so.
Be aware that in California, real estate agents and brokers are not permitted by law to provide you with an estimate of real estate value. Only a trained and licensed appraiser can do this. Your Bay Area Modern agent can offer an opinion as to value based on comparable market analysis, but the licensed appraiser has the final word. If you have entered into a contract for a home and find that the appraised value is lower than what you have agreed to pay, you might be obligated to purchase the home unless your contract provides for an appraisal contingency to protect you. As experts in writing real estate contracts, we will do our best to ensure that you are protected from overpaying for a home.
Once the financing is secured, you'll be ready to move to the next step in the Bay Area home buying process: Finalizing and Closing on the Purchase of Your Bay Area Home.