You are at a point when you have already given money to express your interest in a property. This is a crucial juncture where you should remain vigilant and focused. Let’s take a look at three important ways to protect your home deposit.
1. Be one with the property – this means getting to know the property and all of the good and the bad that come with it. The way to go is through the home inspection. Look into the home inspection results before you seal the deal. Your contract should come with a “contingency” in relation to the inspection.
If you are purchasing an older home, you can expect the home inspector to check the home’s foundation. He will also look into the roof and all the key areas in between. If you want a more detailed inspection, you may hire specialized inspectors to take a look at critical areas. These include the HVAC, the possible presence of termites, and the condition of the pool, if there is one.
2. Document everything – Another valuable tip you need to consider is to secure a written notice stating that your home loan has been approved by the lender. You also need to make sure that the house will not appraise with a value that is lower than the purchase price.
It is important to note that the loan contingency has never been more crucial as before. This is a result of the stricter lending standards that were set in place after the credit and housing crisis. With a contingency clause, you will be able to secure a full written approval from your chosen lender. In the event that your loan gets denied, you can walk away from the deal and the contract while getting your deposit back.
But in the event that your loan broker does not agree or is unable to provide a written notice saying that your loan has been approved completely, be mindful not to remove the said contingency. Otherwise, you will risk forfeiting the deposit that you have made for the property.
3. Examine the property disclosures – Lastly, you need to carefully examine and review the property disclosures. Home sellers are generally required to complete disclosures based on what they know and have experienced in relation to the property they are selling.
In addition, you should also check on the local and state reports such as an earthquake/flood map or a building permit history. Once the seller accepts your offer to buy, you should expect them to give you the seller’s disclosures in a matter of days. If you are selling your fort lauderdale real estate or looking for fort lauderdale homes for sale make sure to work with Tim Elmes and his team.