PRE-CLOSING STEPS

1. Get a home inspection

An inspector checks the condition of your potential new home. Home inspectors focus especially on the structure, construction, and mechanical systems of the house and will make you aware of any repairs that are needed. The inspector does not evaluate whether or not you're getting good value for your money. Generally, an inspector checks the following: the electrical system, plumbing and waste disposal, the water heater, insulation and ventilation, the HVAC system, water source and quality, the potential presence of pests, the foundation, doors, windows, ceilings, walls, floors, and roof. Be sure to hire a home inspector that is qualified and experienced. The inspection should take place before a written offer is finalized. You may want to include an inspection clause in the offer when negotiating for a home. An inspection clause gives you an "out" on buying the house if serious problems are found, or gives you the ability to renegotiate the purchase price if repairs are needed. An inspection clause can also specify that the seller must fix the problem(s) before you purchase the house. Following the inspection, the home inspector will be able to answer questions about the report and any problem areas.

Although many home inspectors check for pests, it is also beneficial to have someone who specializes in this area take at look at the home. For a list of several local pest inspectors, click here - Pest Inspections

2. Search for homeowner's insurance

A paid homeowner's insurance policy (or a paid receipt for one) is required at closing, so arrangements will have to be made prior to that day. Plus, involving the insurance agent early in the home buying process can save you money. Insurance agents are a great resource for information on home safety and they can give tips on how to keep insurance premiums low. Be sure to shop around among several insurance companies.

3. Other issues to consider

Is the home located in a floodplain? Your REALTOR® or lender can help you answer this question. If you live in a flood plain, the lender will require that you have flood insurance before lending any money to you. But if you live near a flood plain, you may choose whether or not to get flood insurance coverage for your home. Work with an insurance agent to construct a policy that fits your needs.

Also, always check to see if the house is in a low-lying area, in a high-risk area for natural disasters (like earthquakes, hurricanes, tornadoes, etc.), or in a hazardous materials area. Be sure the house meets building codes. Also consider local zoning laws, which could affect remodeling or making an addition in the future. Your REALTOR® should be able to help you with these questions.

4. Make an offer

Your REALTOR® will assist you in making an offer, which will include the following information:

• Complete legal description of the property
  
• Amount of earnest money
  
• Down payment and financing details
  
• Proposed move-in date
  
• Price you are offering
  
• Proposed closing date
  
• Length of time the offer is valid
  
• Details of the deal

Remember that a sale commitment depends on negotiating a satisfactory contract with the seller, not just making an offer.

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