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. 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. 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. 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. 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. 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 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. 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. A Buyer’s Agent Works for You, the Buyer A buyer’s agent is your advocate from start to finish. Their job is to: Help you find the right home that fits your needs and budget Advise you on pricing, comps, and market conditions Write offers and negotiate on your behalf Guide you through inspections, repairs, and closing Best
1. Proof of Income Shows You Can Afford the Loan Lenders want to be sure you can comfortably make your monthly payments. To do that, you’ll need to provide: Recent pay stubs (typically last 30 days) W-2 forms (for the last 2 years) Tax returns (especially if you’re self-employed or have side income) These documents help confirm your
1. A Rate Lock Freezes Your Interest Rate A mortgage rate lock is when your lender guarantees a specific interest rate for a set period, usually 30 to 60 days. This lock-in period protects you from market fluctuations while your loan is being processed. So even if rates jump tomorrow, you’re locked in at today’s