FOR BUYERS

WHAT MAKES UP CLOSING COST?

There may be closing costs customary or unique to a certain locality, but closing costs are usually made up of the following:

- Attorney’s or escrow fees (Yours and your lender’s if applicable)
- Property taxes (to cover tax period to date)
- Interest (paid from date of closing to 30 days before first monthly payment)
- Loan Origination fee (covers lenders administrative cost)
- Recording fees
- Survey fee
- First premium of mortgage Insurance (if applicable)
- Title Insurance (yours and lender’s)
- Loan discount points
- First payment to escrow account for future real estate taxes and insurance
- Paid receipt for homeowner’s insurance policy (and fire and flood insurance if applicable)
- Any documentation preparation fees
- Unique requests: oil in tank, home inspection, etc.

WHAT DOES A HOME INSPECTOR DO, AND HOW DOES AN INSPECTION FIGURE IN THE PURCHASE OF A HOME?

An Inspector is usually licensed by the State of CT.. The Client picks the inspector that they feel will best suit their needs. An inspector checks the safety of your potential new home. Home Inspectors focus especially on the structure, construction, and mechanical systems of the house and will make the client aware of  repairs, maintenance, age of mechanical units, and provides informative information on the age of the roof, house, etc. as needed.

The Inspector does not evaluate whether or not you’re getting good value for your money. Generally, an inspector checks (and gives prices for repairs on): the electrical system, plumbing and waste disposal, the water heater, insulation and Ventilation, the HVAC system, water source and quality, the potential presence of pests, the foundation, doors, windows, ceilings, walls, floors, and roof. Be sure to hire a home inspector that is qualified and experienced.

The Client may have an inspection before they sign a written contract offer, with the sellers permission. Once a contract is presented and accepted, the time frame for a home inspection clause is part of the contract. The Buyer has the right to waive the home inspection,  understanding they are purchasing the house “as is.”  An inspection  clause gives you an ‘out” on buying the house, if serious structural problems are found, or gives you the ability to renegotiate the purchase price if repairs are needed. An inspection clause can also specify that the seller must fix the problem(s) before you purchase the house. These options vary, depending on the contract submitted to purchase.

HOW DO I MAKE AN OFFER?

Your Real Estate agent will assist you in making an offer, which will include the following information:

- Complete legal description of the property – address on deed
- Amount of earnest money deposit
- Down payment and financing details – mortgage commitment  date
- Price you are offering for purchase
- Proposed closing date
- Length of time the offer is valid
- Details of the transaction -home inspection, etc.

An accepted offer, depends on negotiating a satisfactory contract with the seller, not just Making an offer. The terms must be acceptable to ALL parties and clearly written out as part of the offer to purchase contract.

HOW CAN I FIND OUT INFORMATION ABOUT MY CREDIT HISTORY?

There are three major credit reporting companies: Equifax, Experian, and Trans Union. Obtaining your credit report is as easy as calling and requesting one. Once you receive the report, it’s important to verify its accuracy. Double check the “high credit limit, ‘total loan,” and ‘past due” columns. It’s a good idea to get copies from all three companies to assure there are no mistakes since any of the three could be providing a report to your lender. Fees, ranging from $5-$20, are usually charged to issue credit reports but some states permit citizens to acquire a free one. Contact the reporting companies at the numbers listed for more information. This information is sensitive and private. CREDIT REPORTING COMPANIES

Company Name Phone Number
Experian 1-888-397-3742
Equifax 1-800-685-1111
Trans Union 1-800-916-8800