|
|||||
Inspections; the offer; the contract; closingWhen you find the home you want, your first step will be to make an offer. Your realtor can help you decide how much to offer, based on what comparable homes are selling for and the condition of the home itself. An offer can made with contingencies: You can make an offer contingent upon a satisfactory home inspection, for example. Having an inspection performed by a qualified inspection can save you from a costly mistake. The home inspector will evaluate the structural and mechanical condition of the property, including the roof, heating, plumbing, and electrical and air conditioning systems. Your real estate attorney can assist with any contingencies you may want to include, but remember, the more contingencies your offer contains, the less likely the sellers are to accept it. Your real estate agent can recommend home inspection services and other services you may need. Your written offer will outline the rights and obligations of both parties and will include all the terms of the purchase, including the purchase price, amount of earnest money deposit, the closing date, and any contingencies you may want. The real estate agent you've been working with will make arrangements to present your offer to the seller. The seller can accept your offer "as is" or make a counter-offer. If the seller counter-offers, legally that is the equivalent of rejecting your offer and making a new offer. Your initial offer will no longer have any legal standing, because it has been rejected. There are sometimes several rounds of counter-offers as the seller and buyer come to terms on the deal. Virtually any aspect of the transaction is subject to offer and counter-offer, such as the closing date, items to be included or not included as part of the house, contingencies, repairs, and inspections. The offer/counter-offer phase is when your attorney will really earn his fees, so make sure you have him review all paperwork before signing it. It is important that you know what you are legally obligating yourself to before you sign the paperwork. Once your offer has been accepted and you have signed agreement with the seller, you will need to arrange for the inspection, contact your lender about your mortgage, and begin calling insurance companies to arrange for insurance by the closing date. If you're taking out a mortgage to buy your home, your lender typically will require homeowner's insurance, and you will need to have the policy arranged and ready to take effect on closing day. You may also need flood insurance, and there may be other inspections or insurance required by the state, the community, or your lender. These items are your responsibility, but your realtor can help with recommendations and referrals. Your lender is required by law to give you a "good faith estimate" of what your closing costs will be. Keep in mind that despite the best efforts of lenders, this is only an estimate, and your actual closing costs can vary. Some lenders may be agreeable to negotiating a reduction on the closing closts they control, but many costs are set by third parties, such as the title search and appraisal. The lender has no control over those costs, and cannot negotiate any reduction in cost. Third-party fees are most likely to be difficult to estimate by the lender. Just prior to closing, you will have an opportunity to make a pre-closing inspection. This gives you a chance to make sure the house is in substantially the same condition as when you made your offer, and that any items that are to be included as part of the purchase, such as a refrigerator or washer/dryer, are still present. If any repairs or maintenance were stipulated as part of the contract, this is your opportunity make sure those repairs have been performed. Once the mortgage is approved, the offer made and accepted, the title insurance issued, the property surveyed, and the final inspection completed, you will be ready for the closing. Prior to the closing, you will be notified of the exact amount of money you need to bring to the closing, to cover "closing costs." Closing costs may include escrow fees, proprated property taxes, prorated interest from the date of closing until your first payment, loan origination fees, survey and recording fees, title insurance, mortgage discount points, homeowner's insurance, title and recording fees, and others. You should have already received documention outlining all of the closing costs, and you will almost certainly be required to bring the closing costs to the closing in the form of a cashier's check or certified check. At the closing, you will be asked to sign numerous documents, and you may have your attorney present to explain these to you. You should receive copies of all the closing documents, and at the end of it, you will be given the keys to your new home, along with any warranties, garage door openers, and other such items the seller may have.
Home buying tips |
|||||
