General Information

Escrow

Once you find a home and an offer is accepted, a neutral third party, usually a title company, will hold all documents and money and ensure that all conditions of the sale are met.

Closing costs

Your closing costs are usually 2-5 percent of the sales price of the home. These costs are usually paid in cash and are over and above the down payment on the home. Ask your lender if they can be added onto the loan amount if you want to minimize the amount of the cash needed to close the sale. Your lender will provide you a detailed estimate of your closing costs after receiving your loan application.

Appraisals

An appraisal is a third party estimate of the value of a piece of property at a particular point in time. It can affirm your offer price or block your transaction entirely. An appraisal is the appraisers determination of fair market value of the home. He will compare your home to others in the area, measure, inspect, and may even take photos of the home to put in his report.

Inspections

Depending on the type and age of your home there are certain inspections you may be required to have done on the home you are buying. There are also inspections we may recommend for your protection before purchasing a home. The standard inspection includes overall home construction and conditions, including major mechanical systems and usually costs between $150 and $300.

Title Insurance

One of your closing costs will be a fee for a title insurance policy. This policy is protection from financial loss due to demands that may be charged against the title to your home, up to the costs of the policy, from matters or faults that have happened in the past.

Home Warranty

With a home warranty you're covered against a mechanical breakdown of a covered component for a full year beginning the day of closing. You pay only a standard deductible for each claim, usually around $55.