Buyer's Guide

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HIDDEN FEES TO BE AWARE OF WHEN PURCHASING A HOME

Purchasing a home is arguably one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don’t forget there will be other costs associated with your purchase then the price of the home. Here are 5 fees to keep in mind as you begin to budget.

1. Home inspection.
2. Title services.
3. Appraisal fee.
4. HOA fees.
5. Taxes.

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WHAT TO NEGOTIATE WHEN BUYING A HOUSE

Whether you are a first-time homebuyer or a seasoned veteran, the negotiation part of the transaction can be a little daunting and stressful. However, it is necessary to ensure you are getting the best possible deal for your money. So, what should you negotiate when buying a home? 

  1. Closing costs.

  2. Furnishings

  3. Inspection and closing timing.

  4. Home warranty.

  5. Repairs.

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THE DIFFERENCE BETWEEN HOME WARRANTY & HOME INSURANCE

When purchasing a new home, it’s important to do in-depth research on all facets of the homebuying process. One thing you’ll need to understand is how to best protect yourself and your investment if anything were to go wrong. Check out the information on home insurance versus home warranty below to educate yourself on your options.

Home Insurance

Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail, however, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property. According to American Home Shield, the average annual cost of a homeowner’s insurance policy ranges between $300 and $1,000, and the bank usually asks you to obtain a policy before the mortgage is issued. Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible. 

Home Warranty

A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your home that may fail or break due to age and wear and tear. This includes but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer. With a home warranty, you are required to pay premiums year-round, even if you do not use it, and it won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster.

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PROPERTY TAX

Property Tax Due:
1st Installment: July1 – December 31
Due: November 1, Delinquent: December 10
2nd Installment: January 1-June 30
Due: February 1, Delinquent: April 10

F.A.Q.

For more questions, please feel free to contact us.

The absolute first step for you is to get approved for a mortgage. Without being approved for a mortgage, it will be quite difficult to begin a home search.

Conventional Loan:

Conventional loans, often referred to as mortgages, are the most common form of loan and are offered by private lenders, usually at a fixed rate, with a down payment ranging from 3%-15%. The advantage is lower interest rates, while the disadvantage is not being federally insured.

FHA Loan:

A Federal Housing Administration loan is a mortgage guaranteed by the Federal Housing Administration (FHA).

Special Loans:

VA loan guaranteed by the Department of Veterans Affairs ;

USDA loan for remote areas and low-income groups ;

and Jumbo Loan exceeding the general loan limit ;

These loans require borrowers to meet certain conditions before they can apply.

To apply for a mortgage in the United States, you need to provide many materials, including recent payslips, bank statements, tax forms, ID and other materials.

Prepare these materials and go to the bank to apply for a loan pre-approval letter to determine the total loan amount and interest rate you can apply for.

There are certain contractual contingency periods you must adhere to once the offer is accepted: 

  • You will need to submit 3% of the purchase price to escrow company within three days of contract acceptance.
  • If you are getting a mortgage, you will have 17 days to remove your appraisal contingency, and 17 days to remove your loan contingency. You should discuss this with your consultant before submitting an offer. 
  • It is strongly recommended that you find a certified home inspector for an inspection of the property.  The sewer and foundation are highly recommended additional inspections. 

Not really. The listing agent primarily represents the seller.  As a buyer, you need someone who is going to represent you fully and who negotiate for you only. After submitting an offer and having it accepted, you need someone to assist you conduct negotiations when you have your inspection and find problems of the property.  Also, legally, a listing agent is responsible to present all submitted offers, which should result in the best offer being accepted.

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