Schedule Home Inspections and Appraisals
You should never purchase any piece of property without first having an inspection and appraisal conducted. This ensures that both the buyer and seller are both fully informed about the current state of the home and property. There are a variety of inspections that you can have completed. There are general inspections which will work in most situations. However, if there are any areas of concern, you can have a more specialized inspection done such as a thorough roof inspection, or a pest inspection to ensure that there are no parasite concerns to take into account.
Who pays for inspections? As a buyer, you can include this as a condition expecting the homeowner to provide one. As a Seller, you may want to let the Buyer acquire their own, as they may question the objectivity or thoroughness of one you provide.
Before approving a mortgage, all lenders will have an appraisal conducted during the underwriting process. They absolutely want to ensure that they know the current and potential market value of a home or property before they agree to lend the funds for it’s purchase. The results of this appraisal may have an effect on the amount of mortgage the lending institution agrees to provide
Purchase Home-Owner Insurance
You’re not required to purchase homeowner insurance if you’re purchasing your new home without the help of a mortgage. But I would strongly urge you to do so anyway. Buying a home is almost always life’s largest purchase, make sure your investment is secure.
If you’re obtaining a mortgage to help purchase your home, your financial institution will most definitely insist that you obtain homeowner insurance before they agree to lend you the funds. In most cases, buyers are expected to provide proof of homeowner insurance before being approved for a mortgage. Depending on where you live, you may need to purchase additional insurance, such as flood coverage.
Just like with your mortgage, make sure to research a number of different insurance providers to compare rates. You’re already agreeing to pay a large sum each month for your mortgage, save what you can in other areas! Make sure that your financial situation allows for the expense and that it won’t affect your lending institutions decision to approve your mortgage.
Whew! It has been a lengthy process, but you’re nearly finished! One last walk-through to make sure everything is to the buyer’s satisfaction. If the inspection(s) discovered any repairs required, if there were any other conditions, this is when you would make sure that they’ve been completed. Typically, you’ll complete this step within 24 hours of closing (see below).
This is also your last chance to make sure that nothing was overlooked, and that nothing has occurred since the inspections were conducted. Request the receipts for any repairs that were requested. If the home has been vacant, or if there were any significant weather incidents these can provide opportunities for property damage – check for any new damage that may have occured.