Home Inspections:
No home is in perfect condition. We strongly recommend that
all homebuyers make their Offer conditional upon their
receipt of a satisfactory home inspection report. The
inspection is conducted by a qualified inspector, and gives
you a good overall impression of the general condition of
the home. We also urge that you be present during the
inspection. If you don't have an inspector in mind, we will
be happy to give you a list of inspectors who have provided
satisfactory service to our buyers in the past. An inspector
will prepare a written report noting the conditions that are
present and visible at the time of the inspection. The
report will give you a better understanding of the home's
general condition and how things operate. Typically, the
inspection will include things like: foundation, roof,
structural, walls, doors, floors, fireplaces, chimneys,
electrical and plumbing systems, heating and cooling
systems, etc. The inspection will also give you an estimate
of the remaining life span of the various components.
Typically, the cost of an inspection ranges between $200 and
$300. There are also a number of companies that offer a
one-year warranty of the systems of your new home. These
usually run in the price range of $200 to $300. This
warranty can also be negotiated in the sales price of the
house.
Appraiser:
Your lender will require an appraisal to make sure the house
will be adequate security for the amount of the loan
requested. Generally, when you apply for a mortgage, you pay
for the appraisal up front, and the lender selects the
appraiser. The charge is based on local price ranges and
typically runs upward from about $300 - $375.
Building Contractor:
You may need to make changes to your new home to make it suit
your family's lifestyle. If you are planning to hire
professional assistance for any remodeling projects, choose
your contractor carefully. Ask for recommendations from
several sources; then check each company out with the Better
Business Bureau and other references.
Insurance Agent:
In order to obtain a mortgage, home purchasers are required to
have hazard insurance, or fire and extended coverage, as
well as title insurance. You may also be required to have
private mortgage insurance, depending on the size of your
down payment. These types of insurance are not required for
your protection, but for the lender's. Private mortgage
insurance, which is necessary for risky, low-down payment
loans, covers the lender's loss if you should default on
your loan. If there's a defect in the title to the house,
the title policy covers the lender's losses and legal
fees. And if your place burns to the ground and you don't
rebuild, the fire policy will pay the lender first. Of
course, you may want to have this type of coverage for
personal protection also.
Your lender will inform you of whether or not you need mortgage
insurance and how much it will cost. The closing/settlement
agent will tell you what the lender's title policy will cost
and give you the option of buying the same policy for
yourself. Except private mortgage insurance, you're free to
consult your own insurance agent for the proper coverage.
Lender:
This is a universal term for any organization that makes home
loans. Such entities include banks, savings and loans,
commercial banks, credit unions, and Mortgage Brokers. A
good lender will be able to help you decide which type of
mortgage is the best for you.
In addition, a good real estate agent will be capable of helping
you find a lender, a good rate, or the right loan - or all
three.
Closing Agent:
Also know as an escrow or title agent, this person is usually
a title officer who not only handles the paperwork of the
transaction but also searches the property's title to make
sure it's unencumbered and can be transferred without
problems.
Although both the buyer and the seller will pay the
Escrow/Title Company fee, he represents neither of you in
the transaction. He represents the lender and must follow
the lender's instructions, as well as the terms of the sales
contract between the buyer and the seller.
Homeowner’s (Hazard) Insurance
A homeowner’s insurance policy (or a “Binder”) will be required
at closing, with a one-year premium paid in advance. This is
true in absolutely all cases when financing of any type is
involved. Insurance is not required if you are paying cash,
however, it would be wise to protect your investment.
There are many
considerations when choosing an insurer and the best policy
to meet your individual needs and preferences. These issues
should be carefully discussed with your insurance agent
before selecting your policy.
Home Warranty Insurance
Either the buyer or the seller may purchase a home warranty
policy that will protect against certain repairs or
replacement of appliances, heating, plumbing and electrical
items. Coverage can vary from policy to policy. Read your
policy carefully to determine what is covered and what the
costs are. |
