The time between agreeing to the sale and closing and taking possession of your new home can be busy. Here’s a summary of some of the steps usually required.
- Obtain your financing. If you’ve shopped for a home the StraightTalk way, then you’ve gotten a pre-approval for a mortgage from CCU or another lender. When you reach a purchase agreement, you simply have to complete the application process. These steps are covered fully in the StraightTalk Mortgage Guide. In addition to assessing your credit worthiness, the lender will check on the value of the property, typically ordering a property appraisal and a title search, for instance. The lender will also require that you obtain title insurance.
- Arrange for homeowner’s insurance on the house. Lenders will also require that you insure the property, but smart homeowners already know such insurance is a must. Rather than just get the bare minimum, consider insuring your home for the cost to rebuild it at the current time. Such insurance may cost a bit more but can best protect your investment. If your house is in a flood plain, you will need to purchase separate flood insurance, which is sold by insurance agents but provided by the federal government. Private insurers offer earthquake insurance for homes in some areas and of certain types of construction.
- Arrange for title insurance. In most states the seller or seller’s agent arranges for the purchase of title insurance. In other states, although the seller must present a house with a good title, the buyer is expected to confirm this with the purchase of title insurance. Request the opportunity to review a copy of this policy before the day of closing; have your real estate attorney or buyer’s agent review it, too.
- Arrange for a final walk-through just before closing. Smart buyers arrange for a brief walk-through the house, with their home inspector if appropriate, to see that new construction has been properly completed, that repairs have been made, and that the home is in the promised condition (though rare, sellers have been known to strip a home of appliances, light and plumbing fixtures, and trim hardware, although those items were covered in the sales contract).
Next in Chapter 3: Time for the Closing
Prepared for Corning Credit Union by Remar Sutton & Associates, July 2004. Reviewed and updated May 2007. All rights reserved.