When you buy a house there are some costs involved in addition to your downpayment. The cost of inspections will be “out of pocket” expenses–paid as the inspections are completed. The appraisal and credit report will be prepaid when you make loan application. And you will be required to provide a paid-up homeowner’s hazard insurance [...]

Closing usually takes place either at the office of the lender or at the Title Insurance company–and generally takes about an hour. The closing room needs to be large because there are usually a lot of people present–the buyers, the sellers, the lender, the closing brokers from the listing and selling real estate offices, the [...]

Home warranties are one-year insurance policies that cover existing homes. A one-time premium of $300 – $500, which either the buyer or seller can pay, provides one year of insurance. It generally covers major home systems (including electrical, air conditioning, heating, and plumbing) and built-in appliances. Ovens, water heaters, and dishwashers are usually covered, but [...]

Transfer of title from one owner to another can take place between the parties without any proof of ownership. However, a purchaser would be buying a “pig in a poke” because he would have only the seller’s word that title was clear and free of liens. So the seller usually provides the buyer with an [...]

You will need to carry hazard insurance for at least the amount of your mortgage. Experts suggest you call at least four companies for quotes. There can be a big difference in premium amounts AND IN COVERAGES–so make sure you compare apples to apples. Evaluate your furnishings and possessions, because contents coverage is often calculated [...]

An appraisal is an estimate or opinion of value given by an independent appraiser who is licensed by the state. Your lender requires an appraisal to make sure the property is worth what you (and they) are investing in it. The appraiser will make an appointment to go look at the property. He or she [...]

Mistakes can creep into the enormous databases of credit reporting agencies, so if you are thinking of buying a house and it’s more than a year since you’ve checked, take a few minutes to see what will be on the credit report your lender receives. Call and ask for your report from one of the [...]

One of the most stressful parts of buying a home, especially for a first-time buyer, is the loan application. Ask your lender or your real estate agent for a form which you can then fill out at home. This is easier than doing it at the lender’s office–because all the account numbers and addresses you [...]

There is a wide variety in the inspections that buyers can choose when they purchase a home. The purchase contract states that the buyer may have any inspections he wants, but they must be completed within a specified period. Your lender will require a termite inspection–costing around $65. You will probably want a structural and [...]

You’ve found the house you want–now what? Now you sit down with your agent and write an offer to purchase. Statutes require that a contract for real estate, to be enforceable, must be in writing. The offer will identify the buyer, the seller and the property. It will specify the price and the earnest money [...]