So far we’ve:
Now we’re just checking out different insurance policies to see who will rip us off the least. Fun!
So, any SD advice from the Teeming Multitudes?
Get a lawyer. Actually, you should have done this before the contract was formed. This is probably the biggest transaction you’ve ever been involved in. It’s worth the money to have someone who knows what he/she is doing take a look at it.
As one of my wise, old (but not particularly altruistic) partners says, it’s actually better for the lawyers if the client doesn’t call you before signing the contract, because we charge so much more for handling the lawsuit later.
Um…enjoy the house?
I’m guessing the mortgage and everything will go through alright, although those were some of the more stressful times when we bought our first house…the waiting between having our offer accepted and the final mortgage approval.
One unsolicited piece of advice - if you have anything you want to do to the house, whether things need fixing or you want to add something etc…go ahead and do it. Don’t be like we were…when we decided to move and wanted to get the house ready for sale, we rushed around painting and cleaning and stripping the decks and everything, stuff we just never got around to doing while we lived there. So the house looked GREAT…much better than the 2 years we lived in it.
Okay, I read that you had the house inspected, but since you axed for advice, I’m gonna shoot straight from the hip. This may get long, so sorry in advance, but this is important.
Was the house inspected for termites and other wood-destroying pests by a licensed termite inspector??!!
I can’t stress the importance of this enough. I work in the termite and pest control biz and I have seen many people buy houses that were riddled with termites. Our inspectors saw them right away, but the other inspectors didn’t. By the time we were called, it was too late, and the seller was off the hook. The cost for treatment fell squarely on the new homeowner.
It works this way. Most home inspectors, even if they’re thorough, know way more about engineering and structural stuff. The guy who inspected the house I bought spent more than two hours going over the place. He clambered up on the roof and went down to the basement to check the plumbing, heating, wiring, etc. He was damn good and worth every penny. But he was asking me about whether there was termite damage. He knew enough to know he didn’t know as much as I did, and secure enough to admit it.
Other inspectors aren’t so honest/thorough/secure. You see, it may cost money to become educated, trained, and licensed for termite inspections. So a lot of inspectors don’t do it. Most termite companies will give you a free inspection if you call up. It will be just for your peace of mind, because I doubt they’ll write a clearance letter for the bank, but it’s a good thing to do.
If it’s proven that a termite infestation exists in the structure before the sale, then it’s the responsibility of the seller to have it treated as a condition of the sale (I’m going by NY state law, but I think most states are the same, i.e. you can’t sell goods you know are damaged). After the sale, it’s your responsibility. Depending on the size of the house, you’re looking at $1,500 or more, not to mention repairing any damage.
Unless you’re buying a house in North Dakota, or some place like that, where termites don’t really hang out, get an independent, licensed termite inspector to check it out. And don’t trust the seller when they say they’ve had it done. Either insist on seeing the inspection report or get your own guy to do it or both. Don’t set yourself up for buying an expensive problem. And yes, a 4-year-old house can have a termite infestation.
Good luck.
Just a couple of things to add:
Insurance – Many insurance companies will give you a reduced rate if your auto and homeowner’s policies are with them. Look into that. Depending on where you live, flood and/or earthquake insurance might be offered. When I lived in So Cal, I found earthquake insurance was far too expensive for the coverage provided, but that’s a call you’ll have to make on your own.
Appraisal – This is generally required by the mortgage company. Make sure you don’t get stuck with the house if the appraisal comes in too low.
Mortgage – You should be shopping for a mortgage right now. In fact, a mortgage broker is sometimes the best route to take. A broker can shop your loan around to different mortgage companies, and find you the most reasonalbe terms. Your realtor might be able to refer you to a mortgage broker. Look into whether the property tax and homeowner’s insurance are impounded by the mortgage company; this is handy, because you don’t get hit with a huge bill that you weren’t expecting. Some companies that impound those items will even pay you interest on the impound account.
No matter how tempting it is, DO NOT do anything to change your financial picture until after the mortgage is approved and you sign on the dotted line. I had a friend who was buying a house, and decided to consolidate her debts while her loan was being processed. The bank insisted that she reapply for the mortgage, and the purchase was delayed 2 weeks as a result. The seller demanded extra cash to compensate him for the delay. It was ugly and completely avoidable – the time to consolidate your bills is AFTER you have the papers.
Don’t forget to file another W-4 with your employer. You’ll be able to pick up a few extra exemptions because your mortgage interest and property tax is deductable.