Mortgage Basics
first time home buyer Mortgage Basics Intro
first time home buyer Should I Buy a Home
first time home buyer How Mortgages Work
first time home buyer Factors that Effect Your Payment
first time home buyer Paperwork & Loan Fees
first time home buyer Loan Processing, Now What?
 
Insurance and inspection
Unique situations
Been Turn down for a loan
In conclusion
first time home buyer Atlas, Closing
Mortgage Insurance and Inspection
Geting them out of the way makes underwriting go faster
 

 

  
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While the lender and third parties are preparing your loan for closing, there are a couple of things for you to tackle. You probably will want to have the home inspected, and you will be required to buy homeowners insurance.

Home inspection

Home inspection is commonly required to determine the structural and mechanical condition of the home you're buying, including the roof, heating, plumbing, air conditioning and electrical wiring. The inspection may reveal the need for repairs that the seller may have to complete before the sale of the house can go through.

It's a good idea to have the home inspected after you agree on a price but before signing the contract and putting down a deposit. If you're in a hurry to lock in the deal, make sure your contract states that the terms are conditioned on a satisfactory professional inspection. The cost of a home inspection typically ranges between $250 and $500.

Homeowners insurance

After the home has been appraised, you'll be in a better position to obtain adequate insurance.

Coverage comes in two types: a replacement cost policy or a cash value policy.

With a replacement cost policy, a 20-year-old camera destroyed in a storm would be replaced with an equivalent new model, while with a cash value policy, you would receive nothing for the camera because the item has lost its value over time. Owners of older dwellings and contents tend to prefer the replacement cost policy, which may cost 10 percent more; owners of newer houses and furnishings should consider cash-value policies.

Whichever policy you choose, be sure to ask your insurance agent about safety features such as deadbolts, storm shutters and security systems you can install to reduce your premium.

 

<<Part 5: Processing and Underwriting
 
Mortgage Tip: First Time Home Loans Are Easy to Find

You may still be renting because you think you can't get a mortgage as a first time home buyer. This is often not the case, so you should really find a mortgage broker online or locally to consult with. The best thing about mortgage brokers is that they will coach you on what you need to do to get into a better position if you need to.

Additionally, they will work harder to find you better programs if you prove your loyalty to them. When you talk to your mortgage broker you need to ask what kinds of programs you qualify for. They will get your credit score and analyze your financial data to assess what you can get and what you can afford.

Take this information to your real estate agent and begin your search only looking at the properties you can really afford.
 
 
 
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