Questions people ask AFTER they sign the contract Ep7

anthony patton

Whether a buyer is purchasing their first home or their fifth home, the home buying process can create lots of emotions and stress.. one way to handle the stress is ask lots of questions…

There are no dumb questions so if you have a question…. ASK!!!!

In today’s episode have found our dream house….. You made the offer…. They accepted…..

NOW WHAT… these are Questions people ask after the contract is accepted….

What’s the next step?

Between contract acceptance and the closing date, there are many things that need to be completed. In a nutshell, after an offer is accepted, generally any inspections will be completed. We recommend a home inspection because the expert advisors will uncover anything that you may not notice and the seller does not tell you. Over the years I have seen home inspections uncover things that helped save the buyer thousands in repairs and undisclosed damages. Sometimes the buyer decided the problems are too much and they decide not to purchase the home…. I have also seen people skip the home inspection and later find water damage and it costs them thousands to repair.

After the inspections, we would complete an appraisal… the appraisal compares the house you want to buy with all the other houses in the area that have sold in the last 90 days. This will tell us how much the house is worth…. Regardless of how much the contract states….

What if the house does not appraise for the sales price?

We have some options…. 1. You can pay the difference. 2. You can ask the seller to lower the sales price … or 3 although rare you can walk away…. Most of the time the contract is written in a way to protect you from paying more than the house is worth…. I mean you don’t go to McDonalds and give them $10 for a Big Mac Meal when the menu says its 5$.... Our expert advisors will help you decide what is best. . When buying a home, finding the perfect home is only one part of actually becoming a homeowner. The mortgage process should be all complete but depending on how long you have been looking for a house we may need to update some documents… we need to lock in your interest rate… and make sure you are happy with the terms of the mortgage.

What is all this insurance… title insurance, mortgage insurance home owners insurance??

Title insurance… is the policy that insures you own the house... and the sellers liens are paid off. The contract specifies who is paying for the title insurance. Typically the seller pays for this insurance but each contract is different and so you the buyer could be paying for the title insurance. Typically it is 1% of the sales price so $1000 per 100,000 in sales price. You need an expert advisor on your side making sure you are protected… because the seller is not going to pay for it out of kindness.

Let’s talk about mortgage insurance…. So mortgage insurance is the insurance you pay that covers the mortgage company in case you don’t pay your mortgage payments. The cost of the mortgage insurance is paid for by you the buyer… and the cost depends on lots of factors… how much is your down payment? What type of loan do you have… what is your credit score.

This is where an expert mortgage adviser can save you thousands of dollars… An FHA loan always has mortgage insurance regardless of the size of your down payment. A conventional type loan has mortgage insurance if you have less than 20% down payment… the lower the down payment the higher the cost of mortgage insurance…. The lower the credit score the higher the cost of the mortgage insurance. We have a tool that compares all types of loans and shows you the costs and we help you make the best decision… its really all just math and when you see the math it usually makes the decision easy.

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