How do I find a good home inspector?
Home inspectors need to have certification in their trade so we suggest to make calls or search the internet and make contact to several inspectors and ask what their qualifications are. Often times your real estate agent may have experience with a variety of inspectors and may be able to suggest to you a local inspection company. You may want to see if the inspector has current memberships with any professional associations.
Why hire a home inspector?
Obtaining a qualified home inspection by a licensed home inspector is one of the most important things a buyer can do…even for new construction! They will look for issues including insects, dry rot, leaking roofs, cracked foundations, etc. Buyers should be diligent with checking out who may be a good home inspector for their specific needs.
Should I get pre-approved for a mortgage loan first before beginning my search for real estate properties?
Yes!
There are essentially two types of mortgage loan qualifications; pre-qualification and pre-approval. A buyer going through this process is then able to shop for mortgage rates, lock-in (securing the mortgage interest rate that you want for the loan…keeping in mind that these rates are dependent on various factors and rates can sometimes change several times during the day) and finding out how much you can afford. It also enables you to move swiftly when you find the right home. Make sure to get a Good Faith Estimate from your lender (which itemizes what your costs may be) and also request a face to face meeting with your lender so you can review any and all questions in regards to your mortgage loan. The pre-approval letter may behoove you a bit more than a pre-qualification letter since the pre-approval letter would be submitted to you by your lender once they have checked your credit and ran it through automated underwriting. They may also request that you submit your asset, income and other information as well; the pre-approval process includes the added step of truly verifying your information. As always, once a buyer identifies a property they wish to make an offer on, a copy of the pre-approval or pre-qualification letter is usually included with the initial offer to purchase to let the Sellers know that the buyers have already checked with a lender and submitted their financial status in order to request to qualify for a purchase of the said property. This process of getting ‘pre-approved’ for your loan may position you in the Seller’s perception as having more strength in your efforts to purchase their home. Your lender will be able to educate and explain the differences between the pre-qualification and pre-approval letter.
What are contingencies?
A contingency means that the sale of a property is contingent upon certain things happening. Sometimes it is contingent upon the buyer obtaining a loan (which we strongly suggest that all buyers get a pre-approval letter…as stated above) before they even begin their home search venture, or a sale may be based as contingent when selling your home first. And sometimes a sale is contingent upon a good home inspection.
What is a 72 hour clause?
If a buyer has to sell their house before they can purchase another home, Sellers often insist on a 72-hour clause. This way if a better offer comes in on the home for sale, and the contingency is unsettled, the clause requires the Seller to give the buyer 72 hours to remove the contingency or forfeit the house. This buyer can sometimes find alternative financing available allowing them to continue the purchase but it also allows the Seller to not miss an opportunity. This is also referred to as a ‘bumpable’ or bmp transaction. Obviously, each transaction may be different and is handled on a case by case basis.
Do I need to get Homeowners Insurance?
Yes. Mortgage and title companies require insurance. You will have to obtain insurance prior to closing of escrow to avoid any unexpected issues…definitely a buyer would be wise to request as soon as possible from their selected homeowners insurance company what their insurance rates will be and request an insurance binder to be prepared. All buyers should shop around to see what the best company and premium rates may be best for you. Again, the buyers ‘due diligence’ is extremely important throughout any purchase of real estate and to be pro active with this type of information will definitely save you some time (and headaches) down the line! Even those ‘cash’ buyers who do not need to receive a mortgage for their purchase would be wise to definitely consider getting Homeowners Insurance.
What is a Lead Based Paint Disclosure?
All residential homes built prior to 1978 are subject to the Residential Lead-Based paint Disclosure Program, which is administered by the EPA and HUD. This Act requires affected home sellers to provide buyers with a lead-based paint disclosure and the pamphlet titled “Protect your Family from Lead in Your Home”
Buying vs. Renting Calculator
The following link address may assist you in determining what your possible savings may be through the purchase of real estate @:
http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?Section=YPTH