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| Your Toolkit to Prepare for Homeownership |
Each time either party makes any change in the terms, the other side is free to accept or reject it or counter again. The document becomes a binding contract only when one party finally signs an unconditional acceptance of the other side’s proposal.
HOME INSPECTORS
Before purchasing a home, you want to ensure that it is in good condition. A home inspection is an evaluation of a home’s condition by a trained expert. During a home inspection, a qualified inspector takes an in-depth and impartial look at the property you plan to buy. The inspector will evaluate the physical condition: the structure, construction and mechanical systems. Inspectors also will identify items that should be repaired or replaced and estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure and finishes.
After the inspection is complete, you will receive a written report of the findings from the home inspector, usually within five to seven days.
It is important to note that an inspection is not an appraisal. A property appraisal is a document that provides an estimate of a property’s market value. Lenders require appraisals on properties prior to loan approval to ensure that the mortgage loan amount is not more than the value of the property. Appraisals are for lenders; home inspections are for buyers.
— FINDING A QUALIFIED HOME INSPECTOR
As the homebuyer, it is your responsibility to carefully select a qualified inspector and pay for the inspection. The following sources may help you find a qualified home inspector:
WITHDRAWING AN OFFER
Can you take back an offer? In most cases the answer is yes, right up until the moment it is accepted, or even in some cases if you haven’t yet been notified of acceptance. If you do want to revoke your offer, be sure to do so only after consulting a lawyer who is experienced in real estate matters. You don’t want to lose your earnest money deposit or find yourself being sued for damages the seller may have suffered by relying on your actions.
ATTORNEYS
Purchasing a home is typically the single largest investment most people will make in their lifetime. This is one good reason to have an attorney review and explain all of the documents before the signing. The buyer’s real estate agent can recommend a good real estate attorney.
CLOSING
Closing also known as settlement, is a brief process in which all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.
Whatever the case, the result is that the title to the property is transferred from seller to buyer. The buyer receives the keys, and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers and other documents are prepared, signed and filed with local property record offices.
What you need to do: One of the best parts of settlement is that buyers and sellers need to do very little. Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties in the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes.
ALTERNATIVE BUYING OPPORTUNITIES
While alternative real estate buying options are limited to a small percentage of transactions, they can arise. Foreclosures, short sales and auctions sales are some of the types of listings you may encounter in the marketplace so be sure you understand the nature of these sales when deciding how to proceed. Always consult with your real estate agent or an advisor if you’re in need of more information.
HOME INSPECTORS
Before purchasing a home, you want to ensure that it is in good condition. A home inspection is an evaluation of a home’s condition by a trained expert. During a home inspection, a qualified inspector takes an in-depth and impartial look at the property you plan to buy. The inspector will evaluate the physical condition: the structure, construction and mechanical systems. Inspectors also will identify items that should be repaired or replaced and estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure and finishes.
After the inspection is complete, you will receive a written report of the findings from the home inspector, usually within five to seven days.
It is important to note that an inspection is not an appraisal. A property appraisal is a document that provides an estimate of a property’s market value. Lenders require appraisals on properties prior to loan approval to ensure that the mortgage loan amount is not more than the value of the property. Appraisals are for lenders; home inspections are for buyers.
— FINDING A QUALIFIED HOME INSPECTOR
As the homebuyer, it is your responsibility to carefully select a qualified inspector and pay for the inspection. The following sources may help you find a qualified home inspector:
- State regulatory authorities. Some states require licensing of home inspectors.
- Professional organizations. Profession-al organizations may require home inspectors to pass tests and meet minimum qualifications before becoming a member.
- Phonebook Yellow Pages. Look under “Building Inspection Service” or “Home Inspection Service.”
- The Internet. Search for “Building Inspection Service” or “Home Inspection Service.”
- Your real estate agent. Most real estate professionals have a list of home inspectors they recommend.
WITHDRAWING AN OFFER
Can you take back an offer? In most cases the answer is yes, right up until the moment it is accepted, or even in some cases if you haven’t yet been notified of acceptance. If you do want to revoke your offer, be sure to do so only after consulting a lawyer who is experienced in real estate matters. You don’t want to lose your earnest money deposit or find yourself being sued for damages the seller may have suffered by relying on your actions.
ATTORNEYS
Purchasing a home is typically the single largest investment most people will make in their lifetime. This is one good reason to have an attorney review and explain all of the documents before the signing. The buyer’s real estate agent can recommend a good real estate attorney.
CLOSING
Closing also known as settlement, is a brief process in which all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.
Whatever the case, the result is that the title to the property is transferred from seller to buyer. The buyer receives the keys, and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers and other documents are prepared, signed and filed with local property record offices.
What you need to do: One of the best parts of settlement is that buyers and sellers need to do very little. Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties in the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes.
ALTERNATIVE BUYING OPPORTUNITIES
While alternative real estate buying options are limited to a small percentage of transactions, they can arise. Foreclosures, short sales and auctions sales are some of the types of listings you may encounter in the marketplace so be sure you understand the nature of these sales when deciding how to proceed. Always consult with your real estate agent or an advisor if you’re in need of more information.
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