The inspection period is now behind you. Hopefully all was in order. If not, there are local procedures in place for addressing any defects. Once the inspection is clean, it's time to spend money!
Your loan officer will now order the appraisal. This process helps ensure that the bank is not lending you more money than the house is worth. Relax mr./mrs home buyer, there is nothing for you to do here. In fact if all is well you will not hear anything about the appraisal until the settlement table.
The wood destroying insect report is also required in Louisiana. As of January 2009, this costs is now on the buyer. Expect to pay 60-75 bucks for this report. Please remember THIS DOES NOT GUARANTEE THE HOUSE IS FREE OF TERMITES!!!!!!! All this means is there is not CURRENT VISABLE SIGN OF INFESTATION. Also, this report is only good for thirty days, so if closing is delayed, you might have to purchase another report, so this is one area where procrastination pays!
1-2 days prior to closing, the title company will provide a HUD statement. This will let the buyer now exactly how much to bring to closing. Be careful, if this is over 500 bucks, you typically need certified funds.
The closing will bring the buyer and seller together at the "settlement table". Essentially, the seller will sign away the home, and the buyer will sign away themselves to the home!
Hopefully this has provided some insight into the home buying process. As all markets are different, consult a local realtor for your needs. And while deemed accurate, nothing in this post or blog is legal advice!!
Future blogs will focus more on local attractions in Pineville and Alexandria. As always, feel free to call me at (318) 613-1994 for your Cenla real estate needs!
Saturday, August 29, 2009
Thursday, August 6, 2009
Home inspections are for suckers!
I get this response from folks when I suggest a home inspection. From deposits, appraisals, and loan origination fees, it seems like everyone has their hand in the buyer's pocket. And then I go and suggest they spend ANOTHER 300-400 bucks? When first time buyers discover inspections are optional the gut reaction is to try and save some cash. Let's look at some of the ways home inspections help.
About a year back one of my buyers placed an offer on a home in a nice subdivision. By all accounts, this home had been well maintained. The house was so nice, the buyer did not want an inspection. Thankfully, his spouse overruled him. the inspector uncovered evidence of a massive fire in the home's past. It seems the owner had "forgot about that". Without the inspection odds are the couple would not have known about this until after closing.
Thankfully such "forgetfulness" is rare. More often though, an inspection provides documentation of a fault. This spring a buyer put an offer on a small starter home. During the inspection come to find out the foundation was sagging. The buyer was able to get the foundation repaired (6 thousand bucks) and get a lifetime warranty!
But what if I pay the 300 bucks and nothing is wrong with the house?? Congratulations! You are on the road to purchasing a wonderful home.
About a year back one of my buyers placed an offer on a home in a nice subdivision. By all accounts, this home had been well maintained. The house was so nice, the buyer did not want an inspection. Thankfully, his spouse overruled him. the inspector uncovered evidence of a massive fire in the home's past. It seems the owner had "forgot about that". Without the inspection odds are the couple would not have known about this until after closing.
Thankfully such "forgetfulness" is rare. More often though, an inspection provides documentation of a fault. This spring a buyer put an offer on a small starter home. During the inspection come to find out the foundation was sagging. The buyer was able to get the foundation repaired (6 thousand bucks) and get a lifetime warranty!
But what if I pay the 300 bucks and nothing is wrong with the house?? Congratulations! You are on the road to purchasing a wonderful home.
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