Contract Period (Due Diligence)

Let the due diligence begin. I highly recommend using a qualified home inspector for a professional report about the issues of each home. It doesn't cost very much, and can discover big problems that aren't always readily apparent. Don't rely on the sellers' disclosures. Remember, “caveat emptor” or “buyer beware”. It is up to you to find out everything about a property. Use all of the available resources including title searches, inspections (Meth? Mold? Asbestos? Water damage? Wiringissues?etc.),taxrecords,physicalvisits,etc.

Damages uncovered and issues found become another opportunity for seller concessions and further negotiations. That is why the due diligence period is so important. You will not usually get all that you ask for in a repair request, but you will most likely get some. That could come in the form of a seller crediting you by reducing the purchase price, or of the seller actually doing the repairs. Depending on the market, it is possible that a seller will not address any of your concerns. You candecideatthatpointtomoveforwardorcancelthecontract.

Contract Period (Financing)

During this period you are also finalizing your financing for the property. Be sure to work with a reputable lender, and see the links above for more details on loan options. Leave plenty of time just in case it takes longer than you expected to receive approval, conditional approval, or a denial. That way your earnest money is not at risk if you need to cancel. The lender will also arrange for and order the appraisal,althoughyouwillpayforitatthispointinthecontract.