If you reach a point in your life where it sounds appealing to buy a house, you’ll quickly discover that this process is quite a bit more complicated than it might first appear on the surface.
Buying a home is a very involved process which has a number of important steps. It requires attention to detail, flexibility, persistence and realism.
There is a lot you’ll need to learn about the housing market, real estate agents and how they work, and yourself in order to complete the process. You must begin by looking at yourself and your own finances.
One of the first steps in purchasing a home is to get an appraisal on the home. The appraisal will attempt to determine the real value of the home—not its asking price, but how much it would likely actually sell for in an open market.
The appraisal is required by your lender because the lender wants to be sure that they won’t be lending you more money than the home is actually worth. That way they are less likely to find themselves in a losing investment.
Home appraisals are regularly confused with comparative marketing analyses (CMAs). CMAs are commissioned by people who are selling their homes in order to help them establish an asking price. CMAs are not as detailed as appraisals.