Buying a home is exciting and stressful all at once. If you’re a first time home buyer, this checklist guides you through the different components of completing the purchase, so you’ll come to the closing table informed and unstressed. A new homebuyer might understand that there is more to the lending process than receiving funds, but most are not aware of the crucial importance of clear title.
Appraisal
Buyers, especially novices, need to be aware of value fluctuations in this still-recovering market. If the home appraise for less than the contract price the buyers can renegotiate the contract.
Inspection
They love the house, but they’ll love it a lot more once they’ve had a professional come over and give the house a thorough inspection. A good roof, HVAC systems, and a dry and solid foundation are some of the things an inspector will confirm, and any repairs needed are negotiated with the seller before settlement.
Survey
Not only do they need to know their exact property lines, the need to know if the neighbor’s tree roots have burrowed under their fence. A survey that corresponds to the legal description accords peace of mind for all parties.
Title Search
Most new homebuyers don’t have a clue what a title search is and why it’s important. Common sense would indicate that if someone is selling a home they are entitled to do so. The reality is that occasionally a seller unknowingly has a deficient title, and sometimes the seller has no claim to the property whatsoever. Therefore, having a title examiner search all public records pertaining to the property for changes in ownership, liens, or judgements is essential for the new owner to be confident of their right to the home.
Title Insurance
Title insurance gives a buyer the biggest bang for their buck in the entire home buying process. At a couple of dollars per thousand financed, it gives the buyer the assurance that if something comes up regarding their rights to the house, such as the seller was married and the spouse was unaware of the house had been sold, the title insurance policy will pay off any claims against the title and the new homeowners are not responsible in any way for that claim.
Working though the home buying process certainly does not end with an accepted offer, but ensuring your clients have a good awareness of the details makes a happy ending for everyone. Please leave any comments below on Another First Time Homebuyer’s Checklist or contact us for more on our title and closing services.