Most purchases will require the help of other professionals in the following areas:
:: Unless you are planning to pay for the entire purchase with cash, you will be borrowing funds and obtaining a mortgage for part of the purchase price. To do this, you will use a lender. Mortgage financing can be obtained from mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks, commercial banks, credit unions and insurance companies. Your BBS buyer’s agent can also give you the names of several local lenders.
:: Having a home inspection is up to the buyer and will be a separate expense paid for when the inspection is completed. Most commonly, inspections are completed as a contingency item in an offer to purchase and completed within 12 days of an agreement. The buyer indicates in their offer what they intend to inspect and agree to use a professional home inspector and to pay for the inspection. Buyer’s Brokers of the Seacoast recommends having a home inspection and we will attend the inspection with you and guide you in responding to the seller.
:: You may wish to have an attorney review any and all of your documents in the buying process. The forms we use have been reviewed by an attorney in an effort to reduce confusion and misunderstanding between parties. An attorney, or title company, will need to search the title before closing can occur. They will also prepare the settlement statement [HUD] which is a checks and balance document in which all the monies involved in the transaction are listed and itemized and provides an excellent summary.
:: There are three  types of insurance that are part of the home buying process. Hazard insurance, or homeowner’s insurance, refers to a policy guarding against physical injury to the house, predominately fire. If you live in an area prone to flooding or wind storms, you may also need to acquire flood and/or hurricane insurance. This is usually paid yearly. Private Mortgage Insurance [PMI] is a policy required by a lender when you are putting less than 20% down against the purchase price. This insurance assures the lender against foreclosure proceeding expenses. PMI may be paid up front or monthly or a combination of the two. The third insurance is title insurance. This insurance comes into play if a “cloud” or issue regarding clear title arises. You will pay for it for the lender and will have an option to acquire it for yourself as well. BBS recommends that you purchase an owner’s policy. The Title Insurance policy premium is usually paid once at closing.
:: If you are obtaining a loan, the lender will order an appraisal. This is a report which looks at the qualities of the property and determines its present value. Most commonly appraisers use “market” value and weigh the subject property against other properties that have sold recently. They may also use an “income” approach on investment property, or a “replacement cost” approach. Lending institutions use the appraisal to assure that the loan does not exceed the actual value. The buyer usually pays for the appraisal as part of their closing costs.