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.
