Contingencies

Roadmap to Homeownership

Appraisal

1. Your lender will require an appraisal which you will pay for
2. Appraised value must be equal to or greater than your contract price

Inspection

1. Agreement of sale will specify deadlines for all inspections
2. Inspectors will look at the attic, insulation, roof, plumbing, electrical systems, heating, air conditioning, roof, ceilings, floors, windows, doors, foundation, basement, and structural components. They can point out problem spots and help you foresee any future work that requires your attention (and money)
3. Other kinds of inspections include radon, termites, lead piping, lead paint, mold, septic, private well, and asbestos

Link to: Carolyn Prante’s  workshop “Following Your Path To Homeownership Buying Basics” Pt 1 Contingencies 

Financing

1. The seller wants to know if you can obtain a loan to purchase their home. This is why Pre-Approvals are so vital!
2. A second, property-specific mortgage commitment will need to be issued after you have finalized on the Agreement of Sale

Homeowner’s Insurance

1. Prior to closing you will need to obtain homeowner’s insurance
2. Contact an insurance agent immediately after signing an Agreement of Sale
3. Insurance should be researched very early

Link to: John Keane’s presentation “Following Your Path to Home Ownership-Buying Basics part 2”
Link to: Blog “How to Choose the Right Deductible for Your Homeowner’s Policy”

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