I just bought my first home a couple of years ago.........the great thing about the mortgage process is that by having the home inspection before you get the keys, it is a benefit to the home owner. Think about if the home had an infestation of termites, or perhaps there was mold all throughout the attic, a bad roof, rotten subflooring......and the horror list goes on and on. The house inspection allows you and the owner to go back and re-negotiate with the home owner to get things fixed, or to reduce the price of the house or to decide not to go through with the contract. I looked at a foreclosure, the home inspector felt so bad for me...........there were so many problems, that he said the next house I find he would give me almost 50% off. Nice of him! Yeah, it can really really be a pain when that happens, but I would rather be disappointed and out of a few hundred bucks before having the keys and ownership and be stuck with a house like the "money pit".
Also, the appraisal process is to determine whether the house appraises at the purchase price. An appraisal looks at homes that have recently sold and check the neighborhood, schools, the area, to include businesses, neighborhoods, etc. So, lets say the house you want has a purchase price of $150,000. The worst case scenarios is if the appraisal comes back at $120,000. So you have $30,000 hanging out there. If the seller doesn't want to re-negotiate, since most contracts contain a clause about the contract being based on whether or not one can get financing.....you can choose to walk away if you don't have the extra $30,000 sitting around.
So these two parts of the process are very important, and while it is an anxious time when you really fell in love and want a house.....it is definitely worth the wait!