Tara and Richard
Once the problems found by the home inspection are resolved, it’s time to nail down the final terms with you lender. Call your lender, and tell him/her you have found a home and reached an agreement with the seller.
Your lender will have an appraiser inspect the home and prepare an appraisal, which is a report estimating how much the house is worth, based on recent sales prices for comparable homes in the neighborhood.
Once you've asked the lender to order the appraisal, check with the lender daily to make sure it's still on track. If the contract expires because your lender dropped the ball, you might lose your ability to buy the house, and possibly even forfeit your earnest money.
If the completed appraisal says the house is worth less than you offered, your lender might not loan you the money for the mortgage. You'll either have to negotiate with the seller to reduce the price, pay the difference in cash yourself, or find another home.
If you are working with a good buyer’s agent like Robin Guernsey, it is unlikely that you’ll find this situation because she will have already produced a CMA* to determine whether the seller has priced the house correctly before you even make an offer.
*What is the true market value of the home you are interested in? Is it priced too high? Is it a bargain? Robin Guernsey helps home buyers make decisions like this every day, and she will make sure that you get the best value for your money in Madison WI.