1. Flood Insurance Is Often Required—and Can Add to Your Monthly Costs If you’re using a mortgage to buy a home in a high-risk flood zone, your lender will likely require flood insurance. Here’s what to keep in mind: Premiums can range from a few hundred to several thousand dollars per year, depending on the property’s risk […]
1. Earnest Money Shows You’re a Serious Buyer Think of earnest money as a good faith deposit. It’s usually 1% to 2% of the purchase price, and it tells the seller: You’re committed You’re not making multiple offers just to test the market You’re willing to follow through if everything checks outThe funds are submitted shortly after your offer
1. A Deed Transfers Ownership From Seller to Buyer When you close on your home, the deed is what officially passes the property into your name. It’s signed by the seller and typically includes: Your name (as the new owner) A legal description of the property The name of the person or entity transferring it Without a properly executed
1. A Home Inspection Checks the Condition of the Property A home inspection is your opportunity to dig into the physical condition of the home—and spot any costly issues before you buy. A licensed inspector will review things like: The roof, foundation, plumbing, and electrical systems Heating/cooling systems and appliances Visible signs of damage, leaks, or safety concerns
1. A Property Lien Is a Legal Claim for Unpaid Debts Liens are usually placed on a home when the owner owes money they haven’t paid. Common reasons include: Unpaid property taxes Unpaid contractor or repair bills (mechanic’s liens) Delinquent HOA dues Court judgments or legal disputes The lien doesn’t mean you lose the home,
1. Market Value Is What a Buyer Will Pay Market value is the price your home would likely sell for in today’s market. It’s determined by: Location and neighborhood trends The condition and features of the home Comparable recent sales (comps) Appraisers, real estate agents, and buyers all use market value as the real-time price tag of your
1. An Easement Gives Someone Else the Right to Use Your Land An easement is a legal right that allows a third party—like a utility company, neighbor, or city—to use part of your property for a specific purpose. Common types include: Utility easements for power lines, water pipes, or cable access Shared driveways where access must be granted to a neighbor
1. Ask the Seller to Lower the Price If the home appraises for less than what you offered, your lender won’t finance the full purchase amount. One of the first steps is to negotiate with the seller to lower the price to match the appraised value. Sellers often agree—especially if they want to keep the deal alive
1. A Title Search Looks for Hidden Legal or Financial Problems A title search is a deep dive into the property’s history, going through public records to make sure there are no: Liens (unpaid debts attached to the property) Ownership disputes (like missing heirs or divorces) Easements or restrictions that could affect your use of the home It’s handled by a title company or
1. Bigger Down Payment = Smaller Loan and Lower Monthly Payments 1. Bigger Down Payment = Smaller Loan and Lower Monthly Payments When you put more down, you borrow less. That means: Lower monthly mortgage payments Less total interest paid over the life of your loanBetter loan terms in many cases (including lower rates) Even a few extra
1. Property Disclosures List Known Issues and Past Problems Sellers are required to tell you about anything they know that might affect the home’s value, safety, or functionality. This can include: Roof leaks, foundation cracks, or water damage Termite infestations or mold issues Previous repairs or insurance claims History of flooding or fire It’s their legal obligation to