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. 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. 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
First-Time Buyer Guide: How Appraisals Protect You (and Your Lender) Before you close on a home, your lender wants to know: is this place really worth the price?That’s where the appraisal comes in. It’s not just a box to check—it’s a critical step that protects your investment and helps ensure you’re making a smart financial move. 1.
1. The Closing Disclosure Lists All the Final Terms of Your Loan The closing disclosure (CD) is a detailed summary that includes all the final terms of your mortgage, such as: Monthly payments: What you’ll pay each month Interest rate: The rate that will apply to your loan Closing costs: Any fees due at closing, including lender fees, title insurance, and
1. A Licensed Appraiser Assesses the Property’s Market Value Once you’re under contract, your lender will order an appraisal from a licensed, independent appraiser. During the visit, they’ll evaluate: The home’s location The size, layout, and features The condition of the home and any upgrades Recent comparable sales (aka “comps”) in the areaThe goal? To estimate fair market value based on data—not emotion. Understanding what you can
1. A Title Commitment Outlines the Conditions for Title Insurance A title commitment is a document issued by a title company that details the conditions under which they will provide title insurance. It serves as a preview of the title insurance policy you’ll receive after closing. This insurance protects you in case there are any title disputes after you purchase the