No Bull Agent

Part Four: 10 “Must Ask” Questions Before Buying a Home

(Part 4 of 4, Questions 8-10 Below)

8. What is title insurance?

A title insurance policy protects a buyer of real estate against any loss or damages they might experience because of liens, encumbrances or defects in the title to said property, or the incorrectness of the related search.  In plain English, this policy states that no person can come to you after you have successfully purchased a property, also known as the close of escrow, and say “The previous owner owed me money so I’m going to attach a lien (debt) on the property.”  You have a policy that says when the home becomes yours, no one other than your bank has any rights to your property.  No debt will be conveyed

9. Should I have my future home inspected?

We recommend that all buyers purchasing a home, whether new homes, re-sale homes or for sale by owners, have a home inspection.  Purchasing a home could be the largest and is the most important investment decision you and your family could make.  If you were purchasing a used car you would most likely have a mechanic check it out thoroughly prior to completing the transaction. Why wouldn’t you do the same for a home where you could spend the rest of your life?

10. How much money in total will I need to purchase a home?

Each buyer’s circumstances are different.  Some buyers have a substantial deposit while others may not have the capacity to put anything down as a deposit, but can afford the monthly payment. We encourage all buyers to estimate what a comfortable monthly payment would be.

Speak with your lender and stick to a purchase price that allows you to maintain a comfortable monthly payment range.  Your lender will be able to inform you of various loan products available and discuss the idea of including closing costs and down payment in your loan.

Link to Part One with Questions 1-3
Link to Part Two with Questions 4-5
Link to Part Three with Questions 6-7

Tags: first-time buyers, Home Buyers

This entry was posted on Wednesday, April 7th, 2010 at 8:20 am and is filed under Frequently Asked Questions, Home Buyers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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