Can you explain the appraisal and inspection process?

After your offer is accepted, your loan application will be reviewed. At the same time, these steps must be taken:

Appraisal:
An evaluation of the property's value. An appraiser will visit the house and review recent selling prices of similar homes in the area. You typically pay the appraisal fee at closing or before.

Inspection:
An evaluation of the property to find out if there are any problems that could change the property value. The inspection helps you determine if there are any items that you want the seller to repair before they sign the final contract. The borrower usually hires the inspector, so it is important to hire someone who is trustworthy and experienced. Your real estate agent or loan officer can refer you to an inspector. We suggest you go to the inspection if possible to walk through the house together to see firsthand what is wrong or right with the house.

Most areas also require a termite inspection. If termites are found, you must have proof that the house has been treated and that any termite damage has been repaired. This is usually the seller's responsibility.