Preparing for Purchase Once your mortgage financing is in place, you're ready for the next phase in home buying: making sure the property is in good repair, insurable, and that the seller has a clear title to ownership. Here's a brief list of who's involved and who's responsible for what: The Title Company:
Often, the seller chooses this company. But this varies from transaction to transaction. A closing (or settlement) agent coordinates closing-related activities, such as preparing and recording the closing documents and disbursing funds. The types of services provided will depend on the closing agent and location, because closings are conducted differently across the country. Some are conducted by insurance companies or escrow companies, others by real estate brokers, lending institutions, or attorneys for both the buyer and the seller. If you don't know where to find a closing agent, ask your realtor to recommend one, or you can ask your friends or neighbors to provide the names of agents they've used in the past. Attorneys:
You may wish to hire a real estate attorney to represent you in the upcoming legal transaction. Your attorney will review the sales contract before you sign it and represent you at closing. The fees you pay your personal attorney are not part of your closing costs, so you will need to set aside money to pay for them separately. Not everyone finds it necessary to hire an attorney; it depends on how comfortable you feel with the transaction and how much money you have available for attorney fees.Home Inspection:
You will probably want to hire a professional home inspector to determine that all structural parts of your home are in working order - including the plumbing, electrical, roof and foundation. If repairs are deemed necessary, you and the seller must reach an agreement on these items. Home inspectors can be chosen from phone directories or recommendations from friends, family, realtors, etc.Termite Inspection:
Your lender may require a termite inspection, as well. Termite inspectors can be chosen by lenders, title companies or from phone directories or recommendations from friends, family, realtors, etc.Insurance:
You will need to obtain homeowners insurance (also called hazard insurance) to cover your home against damage and theft. Insurers can be found in phone directories. Try your auto insurer or life insurer. Special rates may be available.Survey:
In most states, your lender or title agent will order a survey of the property to determine its physical boundaries and ensure no encroachments on or by neighboring properties.Appraisal:
Your lender will select an appraiser to determine the market value of the property you are purchasing to ensure your home purchase price is an equitable one.Title Search:
Your title agent will conduct a search of the seller's ownership documents to ensure that there are no liens on the property and that all people with current rights to ownership are involved in and approve the sale.Final Walk Through:
Once all items above are completed and the loan is ready, on the day scheduled for closing, you should do a final inspection of the property to ensure all repairs have been completed and the property is in the condition you expected for purchase.
|
