Home Inspection Report Issues
Homes always have problems it is a fact. Engaging in a real estate purchase transaction unaware of this fact can put you in a situation where your purchase does not close. Without a doubt you may make an offer on a home that has zero deferred maintenance and all issues have been dealt with prior to your home inspection. The odds of making an offer on home that is a total creampuff are close to zero.
Focus on finding a home with few problems with problems it does have that are easy to repair. Do not panic if the problems that do arise on an inspection report are bigger than other ones. When thinking of what to offer, do not sweat the tiny problems and factor in all the big problems when writing up your offer on the home.
Overzealous homebuyers making an offer contingent on the seller fixing minuscule repairs is the epitome of the ultimate deal breaker. This may be possible when the market is slow, but if it is a seller’s market your deal will get shot down because there are other offers waiting in the wings.
Home Purchase Budgeting Mistakes
Prospective homebuyers are reminded again and again by the residential real estate industry they need to save up for a down payment to buy a home. A down payment required now is 3% to 20% of the total purchase price of a home. What buyers are not informed about is they need to also save up for closing costs, which include the appraisal, the home inspection, and the homeowner’s insurance premium. These costs must be paid up front the day the loan closes.
These costs are part of every closing, but because buyers are not aware of them, they can be the reason why a real estate purchase transaction fall apart. To keep this from happening, review all purchase transaction expenses, including the down payment requirement with your lender and then make sure you meet the criteria set down to close your loan.
When you first apply for your loan you will be given a loan closing cost estimate document. Review this loan document thoroughly to make sure you understand it and check to see what your closing costs are for your loan. Focus on the section titled “Calculating Cash to Close”. It features the amount of money you need to have to close your loan and buy the home you made an offer on. Keep in mind the document you are reading is a loan closing cost estimate. Be direct and call your lender about the document if there are any sections you have problems with, particularly if you do not have the money need to cover the down payment and closing costs.
Before your closing at the title company you will be provided with the “Closing Disclosure”. It is a virtual carbon copy of the “Loan Closing Cost Estimate” document, except the figures featured on this document are the actual closing costs. Read the “Cash to Close” line item and be sure you have the amount needed wired to the title company from your bank.
Getting Your Purchase Deal to the Finish Line
Purchase money real estate purchase transactions normally close. These days the lender and the real estate broker of the buyer and seller are good at providing the required information and knowledge you need to make your closing happen. Pick a successful broker with a proven track record that comes with great referrals. Be direct and call the brokers referrals and ask them to tell you about their transaction. Pick a real estate broker that is highly recommended. To be successful when buying a new home, take your time, be patient, be diligent about following up on all the requirements you need to meet for your loan to close and finally follow the guidance provided by your real estate broker and your real estate attorney.