How to Buy a House and Have a Building Inspection

Buying a home can be stressful, but the rewards are great.

Buying a home is an exciting and stressful prospect for even the most seasoned buyers. A house is the largest investment many people will make, and it is important to consider all the details before making such a big financial commitment. Whether you are thinking about buying your first home or adding an investment property to your portfolio, there are several steps -- including having an inspection -- that you will need to complete before the seller hands over the keys.

Instructions

1. Apply for a mortgage. Unless you can pay the entire cost of the house upfront, you will need a mortgage. Some people prefer to get pre-approved for a mortgage, so they know what their house-buying budget is. You can ask your real estate agent or friends for recommendations on mortgage brokers, or there are websites that will search for the best deal for you, given your credit, income and other factors.

2. Look at homes. Once you and your real estate agent have determined your needs and wants, you will begin looking at actual homes. While this may be an overwhelming experience, it is good to keep a level head while looking. Bringing a checklist can help you stay focused on what's most important. Ask a lot of questions. If the house is empty, feel free to check the water pressure in the shower and really explore the closets. It's important to make sure the house feels comfortable to you and really meets your needs.

3. Make an offer and negotiate. This is one of several areas where your agent's expertise is invaluable. He or she will be able to show you listings for comparable properties in the immediate area and tell you what they sold for. It is important for you to use this information to guide you in making an offer. If you present an offer that is too low, the seller will likely not even take it seriously and walk away before any negotiating can take place. The key is to present a number that you are comfortable with that will also give the seller the incentive to either accept or present you with a counteroffer.

4. Arrange for a home inspection. According to Don Crawford, past president of the National Association of Home Inspectors Inc., there may be problems with the home that "become the financial responsibility of the buyer, if they are not corrected prior to the final sale of the house." With the inspection report in hand, you can make sure the sellers take care of any deficiencies before you close on the house. If the sellers are anxious to close, you may change the contract so that any repairs become your responsibility in exchange for a lower selling price.

5. Set a closing date. Closing on a house just means that all of the paperwork is finalized and you take ownership of the house. In order to close, you will need to hire a settlement agent. Your real estate agent or mortgage broker will be able to help you find an agent. The agent will guide you through this process, which typically includes having a title search performed, purchasing homeowners insurance and the actual closing. At the actual closing, you will be required to prove your identity, so bring your identification. You must also sign what seems like an endless number of documents. Your settlement agent should explain any documents you don't understand.

References

• National Association of Home Inspectors, Inc.; Home Owners
• Home Closing 101; Protecting Your American Dream