Whether you're a first time home buyer or have been around the block a couple times, the process is no walk in the park. From ensuring you've picked the right property to making sure you have the right insurance coverage, buying a home comes with a lot of steps. We visited with home-related companies to answer your most commonly asked home buying questions.
Realtor/Property Manager — Beal Properties
Finding a place to call home may seem like a daunting task with considerations of location, number of bedrooms and bathrooms and layouts, but with a realtor or agency searching for homes can be left up to the experts. From finding to setting up tours, having an agent like Beal Properties can help buyers find the right place and situation for them.
What are some factors people should consider between renting and buying a home?
"Potential buyers or renters should consider what is financially realistic for them. Some clients prefer to rent a home since they do not have to worry about maintenance expenses or property upkeep and would like to pay rent since it's easier for them. Other clients prefer to purchase a home since they like the idea of being a homeowner and can truly make their home theirs (paint, flooring, light fixtures, etc.), but will have property maintenance expenses and upkeep versus renting."
When trying to find a home, what is something people typically forget about?
"It is very common for buyers to purchase a home without any knowledge that the home is located in an Home Owners Association, or HOA, and are introduced to fees that they were not initially aware of."
What is the importance of a home inspection?
"The inspection provides knowledge of what can't be seen during the showing. It is strongly recommended to hire a Licensed Professional Home Inspector to thoroughly inspect the home inside and out which will give you all of the knowledge and information on the home's history for any past or future general maintenance being wear and tear, foundation cracks, potential hail damage, and many more maintenance issues that can easily turn into a financial nightmare."
Insurance Agency — Miller Insurance Agency
Protecting your home is just as important as buying it. With homeowners insurance, home buyers can guarantee their equity and ensure their home and contents are covered. Offering insurance coverage from automobiles to home and businesses, Miller Insurance Agency helps to provide support in a variety of ways to customers since its inception in 1947.
Why is homeowners insurance important?
“It’s important to protect your investment and your family. Insurance allows you to rebuild after a catastrophe, replaces personal items lost from a storm or fire event, provides a defense if you are sued from negligence on your property, and more. It’s truly peace of mind.”
Are there any special considerations for first time home owners?
“Be sure and ask the builder/realtor to allow you to get a quote from an independent agent for home insurance. Even if the premium is escrowed, you will want the best premium and coverages available. Many times the process moves fast and a policy is issued at closing by other parties on your behalf; you may not be told that you can get a quote on your own from an independent agent. I have personally seen where a policy was issued without contents coverage and the homeowner was not aware. Also, if you are purchasing a pre-owned home, be sure an independent inspection is done and ask things like how old is the roof? Any prior claims filed? Any history of fire, flooding or water damage?”
Lender — 1st Alliance Mortgage
Funding your home is an important step in ensuring you are choosing the right home. From down payments to finding the right mortgage, finances may seem like a daunting part of the home buying process, but with a lender like 1st Alliance Mortgage, home buyers can meet with experts to be sure they are setting themselves up for success when they sign the papers to receive their new keys.
What is a home mortgage and how does it work?
"A home mortgage is a loan for the purchase of a residence. Typical mortgage loans are paid back over 10, 15, 20, and 30 year terms with fixed interest rate options that keep the mortgage payment from changing during the life of the loan."
What are some of the things people should be aware of when applying for a mortgage?
"The best way to know if you qualify for a mortgage is to call a local mortgage professional so that they can review your information. Paying your bills on time and having a steady employment history where you make enough money to pay your mortgage are the basic things needed. You will also need to have money for down payment. Down payments are as low as 3%...but there are numerous loan options that allow for as little as zero down payments, such as VA loans, USDA loans, and loans that where down payment assistance can be utilized.
Title Company — University Title
So, you've reached the big day! It's time to finally get your hands on the keys to your new home, but first it's important to ensure you have picked the right title company to lead you as you finish out the home buying process. With University Title Company, home buyers can relax while getting ready to move into the home of their dreams.
What does the closing process look like?
"When an earnest money contract requires title insurance, title is opened and we begin the process of getting a transaction closed. We use the information provided in the contract to initiate the title search. Once the search and title examination are complete, we provide a commitment for title insurance. The commitment details the transaction on Schedule A, takes exception to matters on Schedule B, reflects matters to be cleared on Schedule C and discloses company information and estimated title premium on Schedule D. While our work is being done, buyers are working with their agents, inspectors, and lenders towards meeting the closing date in their contract. Once all parties are ready, the title company compares the commitment, earnest money contract and loan instructions and works out any discrepancies with the appropriate parties. A settlement statement is generated once the closing date is established and matters have been resolved. The parties meet with the escrow officer at their appointed times to execute the closing documents. Once the documents are signed, the title company works with the lender to fund the transaction, wire funds and disburse checks. The conveyancing and lien documents are sent to that county’s courthouse for recording. A title policy is then generated. Additionally, the title company is responsible for any 1099-S and cash reporting to the IRS.
