We also urge that you be present during the inspection. If you don't have an inspector in mind, we will be happy to give you a list of inspectors who have provided satisfactory service to our buyers in the past.

An inspector will prepare a written report noting the conditions that are present and visible at the time of the inspection. The report will give you a better understanding of the home's general condition and how things operate.

Typically, the inspection will include things like: foundation, roof, structural, walls, doors, floors, fireplaces, chimneys, electrical and plumbing systems, heating and cooling systems, etc.

The inspection will also give you an estimate of the remaining life span of the various components. Typically, the cost of an inspection ranges between $200 and $300.

There are also a number of companies that offer a one-year warranty of the systems of your new home. These usually run in the price range of $200 to $300. This warranty can also be negotiated in the sales price of the house.

Appraiser:
Your lender will require an appraisal to make sure the house will be adequate security for the amount of the loan requested.  Generally, when you apply for a mortgage, you pay for the appraisal up front, and the lender selects the appraiser.  The charge is based on local price ranges and typically runs upward from about $300 - $375. 

Building Contractor:
You may need to make changes to your new home to make it suit your family's lifestyle.  If you are planning to hire professional assistance for any remodeling projects, choose your contractor carefully. Ask for recommendations from several sources; then check each company out with the Better Business Bureau and other references. 

Insurance Agent:
In order to obtain a mortgage, home purchasers are required to have hazard insurance, or fire and extended coverage, as well as title insurance.  You may also be required to have private mortgage insurance, depending on the size of your down payment.  These types of insurance are not required for your protection, but for the lender's.  Private mortgage insurance, which is necessary for risky, low-down payment loans, covers the lender's loss if you should default on your loan.  If there's a defect in the title to the house, the title policy covers the lender's losses and legal fees.  And if your place burns to the ground and you don't rebuild, the fire policy will pay the lender first.  Of course, you may want to have this type of coverage for personal protection also.
Your lender will inform you of whether or not you need mortgage insurance and how much it will cost.  The closing/settlement agent will tell you what the lender's title policy will cost and give you the option of buying the same policy for yourself.  Except private mortgage insurance, you're free to consult your own insurance agent for the proper coverage. 

Lender:
This is a universal term for any organization that makes home loans.  Such entities include banks, savings and loans, commercial banks, credit unions, and Mortgage Brokers.   A good lender will be able to help you decide which type of mortgage is the best for you.
In addition, a good real estate agent will be capable of helping you find a lender, a good rate, or the right loan - or all three. 

Closing Agent:
Also know as an escrow or title agent, this person is usually a title officer who not only handles the paperwork of the transaction but also searches the property's title to make sure it's unencumbered and can be transferred without problems.
Although both the buyer and the seller will pay the Escrow/Title Company fee, he represents neither of you in the transaction.  He represents the lender and must follow the lender's instructions, as well as the terms of the sales contract between the buyer and the seller. 

Homeowner’s (Hazard) Insurance
A homeowner’s insurance policy (or a “Binder”) will be required at closing, with a one-year premium paid in advance.  This is true in absolutely all cases when financing of any type is involved.  Insurance is not required if you are paying cash, however, it would be wise to protect your investment.

There are many considerations when choosing an insurer and the best policy to meet your individual needs and preferences.  These issues should be carefully discussed with your insurance agent before selecting your policy.

Home Warranty Insurance
Either the buyer or the seller may purchase a home warranty policy that will protect against certain repairs or replacement of appliances, heating, plumbing and electrical items.  Coverage can vary from policy to policy.  Read your policy carefully to determine what is covered and what the costs are.