So you found a home that you wish to purchase. Do you have a realtor to help you with your purchase?  What about a reputable lender with a loan officer that is very knowledgeable and able to help you with your financing needs.

Well, it sometimes might sound easier than it is and that you would try a lot of this on your own. But without the help of the professionals mentioned above, it could cost you thousands of dollars more than you had expected.

So what should you be aware of when making one of the biggest investments of your lifetime?  Come follow me why I tell you some of the basics that you should be aware of. 

• Agreement of sale : When buying a home, this must be completely filled out and fully executed for the mortgage company. Now, many of you may think that this is the easy part. But what happens if something is not filled out on your part. Could you be liable for something?  Possibly. Having a trusted realtor could put all doubts aside in making it the start of a smooth transaction.

• Title Insurance & Survey : The mortgage company is going to require a clear title commitment for title insurance prior to closing. This bascically makes sure that there are no liens and judgments on you personally and the property that you are purchasing. You as the consumer have the right to pick and choose your own title company. But it's usually advisable to let the realtor or loan officer help you with this choice. Why?  Because they both usually have someone reputable that they work with also. And if you trust the realtor and or loan officer, why not allow them to help you with this also. In regards to the survey, the lender could accept an updated survey. In either case, a survey must be delivered to the lender also.

• Termite Certification : Not all loans require a clear termite report / inspection, but it could be in your best interest to obtain one anyhow. The report must be no more than (60) days old from date of inspection. Any damage / infestation must be corrected prior to closing. A letter certifying the repairs will be required from the contractor(s) performing the work.

• Homeowners Insurance : New fire and flood insurance (where applicable) will need to be purchased prior to closing.  The policy needs to cover at least the amount being financed in regards to the mortgage. The policy must be accompanied with a receipt, which can be paid at settlement. It also must contain a mortgage clause which you can get from your lender.

• Well Water & Septic Certificate :  If the property being purchased has an individual water supply and/or septic system, then you will need to provide the mortgage company with specific water tests. This is most important when obtaining a FHA loan. These samples must be taken by a 3rd party and be received at least (7) days prior to closing. The sooner or better in case something is in question and the tests can't be more than (60) days old at the time of closing.

• Certificate of Occupancy :  This is on all new construction properties and/or where required. A reputable realtor would know this answer.  This is usually obtained from an inspector from the township.

Once you have all of this in place and hopefully your mortgage has been approved, you will be ready to go to the settlement table, aka closing table. All persons to be in title to the mortgaged property must be present at settlement to sign all mortgage related documents. They will also need to sign a few documents from the title company also.

If for some reason someone can't be there to sign any of the documents, a power of attorney can solves this problem. But you must make sure that the lender has such document in their possession at least (7) days prior to settlement for approval.

Other than that, congratulations now, you are a new homebuyer. Just don't forget your keys. Hate to see you be led away from your new home by the police, while trying to break into your home.  Keys please..... 

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For more information on FHA loans, please go to this link. The FHA Expert You can also go to this group : The FHA Mortgage Group

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

Copyright © 2007 by Jeff Belonger