Do I need to hire a home inspector?  

Quite simply, “Yes”!  A home inspector will investigate the plumbing, electrical, heating, roof and structural systems of the house.  Usually the inspector arrives at the house an hour or two before your appointment during which time the inspector thoroughly reviews all of these systems.  When you arrive, the inspector will take you back through the house, explaining how the various systems and appliances work and pointing out any problems the inspector has found.  If you request it, the inspector will also test for the presence of radon.  At the end of the inspection, you will receive a notebook containing all the inspector’s findings as well as information on how to properly maintain your home.  The cost of such an inspection is usually $250-$300

What is an Appraisal?  

An appraisal is a step-by-step analysis undertaken by a professional appraiser for the purpose of accurately estimating an opinion of value.  When a mortgage loan is made, the loan is secured by the real estate.  Lenders want to be reasonably sure the amount of the loan does not exceed the value of the real estate.  So the lender normally requires a professional appraiser to estimate the value of the property for the purpose of estimating market value. Fill out the contract form right when you make an offer on a property and you will have the right to terminate the contract and get your earnest money back if the appraisal comes out lower than the price you promised to pay for the property.    

You Will Need Homeowner’s Insurance!  

One of the first thing you need to do after you have a house under contract is to make sure that it is insurable for hazard insurance.  Contact your insurer and make sure that they will provide an insurance for you on this particular home. It is quite common that your insurer will require that the roof isn't too old and they might want to inspect the property before promising to insure it. All lenders will require that you have a hazard insurance at closing but even if you are purchasing with cash, you should make sure that you have insurance to protect your investment.  If you are purchasing a condo or townhouse, the Homeowner’s Association fee will cover hazard insurance but you should still check with your insurance company to determine the coverage you need.  

To get the best value for your insurance dollar-read your policy so you will know exactly what it covers and what to do if you have a loss.  Inform your insurance representative of additions to your house and major purchases so that your insurance coverage can be kept up to date.  For questions about homeowners insurance, you can contact the National Insurance Consumer Help line at (800) 942-4242.  This is a toll-free call and available in all fifty states.