Hiring a professional home inspector to inspect a property before you purchase it can be one of the most important things you do to make sure your home is in good condition.
Homeowner's insurance protects you and your mortgage lender from things that can go wrong, including: casualty, liability, and theft or damage to personal property.
The closing date is set when your mortgage is approved and you sign a commitment letter with your lender. Make sure the closing date is before your lock-in interest rate expires.
Ask for the closing documents before the actual closing and read them carefully. Understand what you'll be asked to sign at the closing and the total amount you will be expected to pay. Obtain legal advice, if necessary, to thoroughly understand the documents.
Now that you’ve completed the Purchasing & Owning a Home section put your knowledge to the test.
True or False: If you don’t have the money it is okay to skip a home inspection.
True
False
That's correct. The money you spend on a home inspection can save you thousands down the road!
That's incorrect. The money you spend on a home inspection can save you thousands down the road!
Which of the following is NOT something that can be included in an offer to purchase a home?
A. Purchase price
B. Conveyances
C. Home inspection contingency
D. Buyer's Remorse Clause
That's correct. Think carefully before putting in an offer - if it's accepted, it becomes a legally binding contract.
That's incorrect. Purchase price is always included in the offer.
That's incorrect. A home inspection contingency is something you should include in the offer.
That's incorrect. Conveyances are often included in the offer.
True or False: Your real estate agent does not attend the closing.
True
False
That's correct. Your real estate agent is not required to attend but often does to help you with the process.
That's incorrect. Your real estate agent is not required to attend but often does to help you with the process.
Regular home maintenance is important because it:
A. Keeps the property value up.
B. Saves money
C. Helps sell a home
D. All of the above
That's correct. A buyer is more likely to purchase a home that has been well maintained than one that has not, but the other answers are also correct.
That's correct. Regular home maintenance is important for all of the above reasons.
That's correct. Regular maintenance does protect your property value but the other answers are also correct.
That's correct. Regular maintenance prevents a small issue from becoming a large and expensive one but the other answers are also correct.
Which of the following is NOT a reason to refinance?
A. Take advantage of lower interest rates.
B. Switch mortgage type
C. Prevent foreclosure
D. Get "cash out"
That's correct. The best thing you can do if your home is in danger of foreclosure is talk to your lender. Often predatory lenders will target vulnerable homeowners with a promise of a quick fix refinance - don't fall for it. Call your lender instead.
That's incorrect. Homeowners can refinance to use the equity in their house for things like a child's college education.
That's incorrect. Many people refinance to get a lower interest rate.
That's incorrect. Often when refinancing a homeowner will switch from adjustable rate to a fixed-rate mortgage or vice versa.
Now that you've learned about Purchasing and Owning a Home, learn about Avoiding Foreclosure.
