Terms to Know When You're Buying a Home
If you're looking for tips on buying your first home, the best place to start is knowing the key terms and their definitions that you'll come across once you've made an offer on a house and moved into the contract-to-close phase.
A general review of the home by a qualified home inspector to note any needed repair items in the future and make recommendations if a specialist is needed to review any potentially serious items. This is a buyer's expense and typically ranges from $300 to $500.
The bank orders a value opinion from a third party known as an appraiser. The evaluation report is called the appraisal. This is typically a buyer's expense, however, you can be reimbursed for this if the seller is asked to cover the closing costs, typically ranging from $350 to $500.
A survey shows the boundaries of the property and if there are any potential issues. The surveyor will mark the corners of the lot boundaries at the home with small stakes with markers. This is a typical buyer expense and runs from $350 to $500.
TERMITE BOND & WOOD INFESTATION INSPECTION:
The Termite Bond is an insurance protection plan against any damage caused by termites. The bond is usually provided by the seller and can be a retreat or a repair bond. The bond renewal is yearly and usually runs from $150-300. The Wood Infestation Report is an inspection report to see if there are any active or previous infestations. The report runs from $150-$200. The inspection is a buyer's expense.
CLOSING DISCLOSURE (CD):
A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage. Per federal law, if a lender is involved, you must receive your CD three business days before closing.
A home warranty will typically cover most major components of large home systems, such as your HVAC, hot water heaters, plumbing, electrical and more. It may also cover regular appliances such as washers, dryers, refrigerators and stoves. Sometimes the seller will provide one as part of the sales contract.
Heating, ventilation, and air conditioning.
If there is a home that is for sale by owner, please let us know, and we will contact them for you. Many times the seller of the house will work with a buyer's agent to help with paperwork and make the transaction simple.
Typically we represent you as the single agent. the exception is when another eXp agent represents the seller, we would then be considered limited consensual dual agents.
This is a legally binding document that is used to submit an offer to the seller. It becomes finalized once the buyer and seller agree to all the terms of the contract and initial and sign. The buyer and seller are obligated to uphold their end of the contract.
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