Buyers-test

IT'S A GREAT TIME TO BUY!

You are in the midst of a buyers' market. There hasn't been a better time to buy in years!

Mortgage rates are at an all time low, sellers are motivated, owning a home is a great investment n your future, and can lead to many, many years of happy memories.

So why wait? It is a great time to buy!

BUYER ARTICLES

Below are some articles that you might find useful in the home buying process. Please feel free to click on one of the links below to read more.

· Why Rent When You Can Buy?

· Save Now with the Homebuyers Tax Credit

· Why Buy Now?

· Advice for First-Time Buyers

How to Negotiate with Sellers

· Types of Mortgages

· Getting the Best Mortgage Rates Online

· Surviving Escrows

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WHY RENT WHEN YOU CAN BUY?

Are you unsure about becoming a HOMEOWNER?

Thinking that you can't afford to BUY a home?

Are you worried about whether home buying is a good INVESTMENT?

Buying a first home can be an intimidating process. But the first steps are deciding if: I want to own a home; I can afford to own a home; owning a home makes sense for me financially and emotionally. If you are still struggling with those decisions, here are some facts that might help you take that first step towards becoming a homeowner.

You Can't Afford NOT to Buy a Home!

Over the last ten years, the cost of rental housing in the U.S. has increased an average of 3.5% per year. If that trend continues, that means that an apartment or home renting for $1,000 per month will cost more than $1,300 a month in ten years. If you rent the same home for ten years, the total amount you would pay for rent will equal $140,777!

Tax Advantages of Owning a Home Result in Savings

None of that $140,777 is returned to you, either through savings or as an investment. Homeownership, on the other hand, has tax advantages over renting a home, and those advantages can help you save money. For many homeowners, part of the monthly mortgage payment "comes back to you" in tax savings. Here's an example:

You purchase a home that costs $200,000. Your down payment is $10,000 (plus closing costs – expenses incurred to actually process the transaction). You finance the balance with a 30-year fixed rate mortgage at 5.5 percent interest. Your monthly payments (not including utilities, maintenance, insurance, etc.) are:

Owning your own home reduces your federal income tax bill by $268 a month. In addition, as you pay down your mortgage loan and as home prices rise, your equity – the wealth you have in your home – increases.

Buyers Come Out Ahead

Given that price growth has recently deviated from its usual pattern of increase, the table above considers four different price growth scenarios, including a loss. You may be surprised to see that the homeowner still comes out ahead of the renter even if there is a decline in the home's value over the next year.

Extraordinarily low interest rates and lower prices have ushered in some of the best affordability conditions in a generation. Further, special tax advantages exist for buyers who purchase before July 1, 2009. Tax laws change, so ask your REALTOR® or tax advisor for current information.

Homeownership is a Good Investment for Qualified Buyers

For the majority of Americans, their home is their largest financial asset and a major player in their investment portfolio. The NATIONAL ASSOCIATION OF REALTORS® estimates that home value rises, on average, by 4.5 percent a year. That's a steady return on investment; one's own home is a much less volatile asset than stocks, bonds or mutual funds, even when the recent downturn is considered.

As an example, let's look again at that $200,000 home. Unlike your rental unit, your home should appreciate over time. Instead of assuming average growth, we assume that prices are flat in the first year of ownership and pick up, but only slightly, in the second year. In the third year of ownership, your home has appreciated to a modest $210,858. After ten years, assuming a return to an average 4.5 percent appreciation rate*, your $200,000 home will be worth $286,948. Not only do you earn a rate of return on your original purchase price, you also get a return on any subsequent appreciation.

* Average price appreciation from 1970 to 2008 was 6.0%

Homeownership Builds Wealth for Households

The Federal Reserve Board estimates that homeowners' net worth has ranged between 31 and 46 times more than that of renters in the years 1998 to 2007. In 2007, the median net worth for homeowners was $234,200 compared to $5,100 for renters. Even though that difference will surely narrow as a result of house price declines since 2007, median homeowners will likely still have substantially greater net worth than median renters." How do you build up your net worth? As a homeowner, you build wealth in two ways: through paying down the principle on your mortgage and through those "appreciating returns" on your home.

We've already seen how your $200,000 home could be worth $286,948 in ten years. In addition, you are paying down the principal on your mortgage. Remember that $200,000 you borrowed at 5.5 percent over 30 years – that debt amount is decreasing every month and every year as you make payments.

Why Not Wait?

You may wonder whether it is worthwhile to wait to purchase your home until prices are at their lowest. Prices are not the only factor that should drive your decision. Currently, interest rates are at generational lows that greatly improve the affordability of homes. Further on the annual cost table, you can see that even if home prices decline, the possible tax savings of owning a home lead to a lower cost for the buyer, not the renter. Also, there are special, additional tax benefits for first time home buyers that may be available for a limited time only. Finally, and most importantly, when you have made the decision to commit to homeownership because you are financially ready, market conditions are a secondary concern. In fact, the NATIONAL ASSOCIATION OF REALTORS® 2008 Profile of Home Buyers and Sellers found that more than four in ten buyers purchased a home because the buyer was ready to make the commitment to homeownership.

Homeownership–It's NOT Just About Money

The "numbers tell the story" examples should ease your mind about the financial aspects of becoming a homeowner. But there are other, less monetary, benefits to homeownership that may partially explain the fact that buyers buy when they are ready. Several research studies indicate that homeownership adds to the value of communities, has positive effects on children, and even contributes to increased voter participation rates.

Homeownership: The American Dream

More than two thirds of American households own their own home. They know the benefits of homeownership, from the accumulation of home equity, tax incentives, and the pride of owning a place of their own. They also had to take that first step of deciding "I'm ready to be a homeowner." REALTORS® assisted many of today's 75 million homeowners in both their decision to buy and their first home purchase. REALTORS® are real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS® and who abide by the Association's strict Code of Ethics and Standards of Practice. They can help guide you to first-time homebuyer programs in your area, as well as assist you in searching for and buying your home.

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SAVE NOW WITH THE HOMEBUYERS TAX CREDIT

An in-depth reference guide to the Economic Recovery Act of 2009

Buy a home and you get a tax break!

As part of the Housing and Economic Recovery Act of 2008 and the American Recovery and Reinvestment Act of 2009, a First-time Homebuyer Tax Credit is now available. But this special tax break ends in 2009.

A homebuyer tax credit has been available for first-time homebuyers in Washington, D.C. for many years, and now first-time homebuyers nationwide can take advantage of a similar benefit. In this article we'll discuss some of the provisions of the credit, changes based on the new legislation, and explain how to use it.

Am I Eligible?

First-time homebuyers who purchase a principal residence on April 9, 2008 and before December 1, 2009 are eligible. If you (and your spouse, if married) have not owned your principal residence for a 3-year period before your purchase, and you have never taken advantage of the DC first-time homebuyer credit, you qualify as a first-time homebuyer.

How does it work?

Like all tax credits, it will directly reduce the total amount of taxes you owe.When you file your taxes, for the year you purchased your home (2008 or 2009), you will be able to subtract the amount of the credit from your Federal income tax liability, increasing the size of your refund or reducing the amount you owe. For example, you file your 'normal' tax return and find that you owe $2,000 in taxes. With this credit, your tax liability could be lowered by $8,000—which means, you instead get a $6,000 tax REFUND check from IRS.

How big is the tax credit?

The tax credit is equal to 10% of the purchase price of your home up to $8,000.

The credit passed in 2008 was limited to $7,500 and that limit still applies to homes purchased in 2008. The full credit is available for single individuals whose adjusted gross income is less than $75,000. If your adjusted gross income is greater than $75,000 and your home purchase qualifies you for the full credit, the credit phases out according to the dollar amount (or percentage if less than $8,000) in the chart below.

For married couples filing jointly, the credit begins to phase out at an adjusted gross income of $150,000. The dollar amounts in the chart below correspond to a phase out of the full tax credit (percentages are for credits less than $8,000).

What about Repayment?

The American Recovery and Reinvestment Act of 2009 made a big change to the credit by removing the repayment provision for credits on homes purchased in 2009. Previously, the tax credit had a payback provision that made it similar to an interest free loan that would have been paid back in full over 15 years (repayment) or at the time of resale (recapture) unless the home was sold at a loss. While the repayment provision is completely gone from the updated credit, a more mild recapture provision remains. If you sell your home within 3 years of purchase, the entire amount of the credit is recaptured, that is, the government takes it back.

Are there other conditions I should know about?

§ You cannot claim both the DC and the national First-time Homebuyer tax credit.

§ Purchases by non-resident aliens are not eligible.

§ 2009 purchases financed by proceeds from a qualified mortgage issue are now eligible.

§ Any single family residence located in the United States that will be used as a principal residence is eligible. Generally, this is the place where an individual spends most of his/her time. This includes single-family detached housing, condos or coops, townhouses or any similar type of new or existing dwelling.

§ The credit will not result in an individual owing additional federal taxes under the Alternative Minimum Tax.

§ Home purchases between relatives and other gifts of residences are not eligible for the credit.

§ Other tax benefits of homeownership are still in place. The mortgage interest deduction, capital gains tax exclusion, and property tax deduction are some well known examples.

For more specific questions about the tax implications of the credit, please consult a tax professional.

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WHY BUY NOW?

Motivated Sellers and Inventory

Now is an ideal time to buy, in most markets prices won't go any lower and there is an abundance of inventory. Inventory of homes for sale is at a 15-year high. There are many options out there for many buyers and many sellers who are willing to negotiate and work towards a win-win situation that works for both parties.

The Market is Getting Stronger and Every Market is Different

Remember that all real estate is local and that all markets are different. There are opportunities out there for a buyer if you're willing to look. The Homebuyer Tax Credit contained in the Housing and Economic Recovery Act of 2008 was updated in the American Recovery and Reinvestment Act of 2009. For 2009 purchasers the credit is $8000 AND DOES NOT NEED TO BE REPAID. The credit is available through DECEMBER 1, 2009, meaning qualified buyers only have a short window of opportunity to take advantage of this special program.

A modest recovery for existing-home sales is expected in 2009. Pent-up demand, coupled with an abundance of safermortgage products, will lead to near-term market improvements.

The Emergency Economic Stability Act enacted on October 3, 2008 will help to improve credit markets and allow housing to lead the economic recovery.

FHA Loans Set to Increase

There are many choices for buyers looking for mortgages in this market. One option, FHA home loans, are a viable alternative for many first time buyers. The Federal Housing Administration (FHA) — which is part of HUD — insures the loan, so your lender can offer you a better deal, offering low down payments, low closing costs, and easy credit qualifying. FHA market share for home purchases is expected to rise significantly over the next 3 years, from an estimated 4% in 2007 to an estimated 35% in 2009.

Find out about FHA and other loans, go to www.Hud.gov/buying/loans.

Benefits of Ownership

Owning a home is the American dream. It not only provides amazing tax benefits but it also provides shelter and security to families. Did you know that:

Ø Dollar for dollar, the rate of return on an individual's cash down payment on a house is substantial? And that repeat buyers are able to put 19% more down on a new home due to appreciation?

Ø Home owners move less often and are more likely to vote and volunteer time for political and charitable causes than renters?

Ø When you own a home you can deduct the property taxes and mortgage interest from your income taxes?

Ø The gains that you make on a primary residence that you've occupied for two years out of 5 can be tax free?

Housing Market Facts

NAR has created a new website www.HousingMarketFacts.comto help consumers find out the latest information about the housing market and the issues that affect you, information specifically for buyers, how to do more research, and learn more about the benefits of home ownership.

Mortgages are at Historically Low Rates

For buyers who qualify, mortgage rates are near historical lows. Rates are well under 6%. According to data provided byFreddie Mac, rates averaged 9.2% in the past 30 years.Go to www.FreddieMac.comand look at the Primary MortgageMarket Survey® for more information on the latest rates. In addition,low interest rates, coupled with recent corrections, give peoplelooking to upgrade a unique opportunity to take advantage ofmarket conditions.

The Value of Your Investment

Despite some contrary media reports and some moderate losses in value in the short-term, home values long-term have and will continue to rise. Real estate is a long-term investment. Home values could fall in some years, though, on average over the past 30 years, the median price of existing homes has increased more than 6 percent every year. Thanks to the power of leverage, a homeowner's return on investment is even more impressive over time. Visit www.HousingMarketFacts.comto learn more.

Kehr Real Estate Group Can Help You and Represent Your Interests

Before beginning your home-buying search, talk with us about the benefits of buyer representation. Kehr Real Estate will promote your interests and guide you through what can be a very complex transaction.

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Advice for First-Time Buyers

· Pre-Qualification: Meet with a mortgage broker and find out how much you can afford to pay for a home.

· Pre-Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. You'll also avoid being disappointed when going after homes that are out of your price range. With Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you're interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. Costs for pre-approval are generally nominal and lenders will usually permit you to pay them when you close your loan.

· List of Needs & Wants: Make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.). The second list is your wishes, things you would like to have (pool, den, etc.) but that are not absolutely necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for what you are looking for.

· Representation by a Professional: Consider hiring your own real estate agent, one who is working for you, the buyer, not the seller.

· Focus & Organization: In a convenient location, keep handy the items that will assist you in maximizing your home search efforts. Such items may include:

1. One or more detailed maps with your areas of interest highlighted.

2. A file of the properties that your agent has shown to you, along with ads you have cut out from the newspaper.

3. Paper and pen, for taking notes as you search.

4. Instant or video camera to help refresh your memory on individual properties, especially if you are attending a series of showings.

5. Location: Look at a potential property as if you are the seller. Would a prospective buyer find it attractive based on school district, crime rate, proximity to positive (shopping, parks, freeway access) and negative (abandoned properties, garbage dump, source of noise) features of the area?

· Visualize the house empty & with your decor: Are the rooms laid out to fit your needs? Is there enough light?

· Be Objective: Instead of thinking with your heart when you find a home, think with your head. Does this home really meet your needs? There are many houses on the market, so don't make a hurried decision that you may regret later.

· Be Thorough: A few extra dollars well spent now may save you big expenses in the long run. Don't forget such essentials as:

1. Include inspection & mortgage contingencies in your written offer.

2. Have the property inspected by a professional inspector.

3. Request a second walk-through to take place within 24 hours of closing.

4. You want to check to see that no changes have been made that were not agreed on (i.e., a nice chandelier that you assumed came with the sale having been replaced by a cheap ceiling light).

· All the above may seem rather overwhelming. That is why having a professional represent you and keep track of all the details for you is highly recommended. Please email me or call me directly to discuss any of these matters in further detail.

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How to Negotiate with Sellers

Buying a home is one of the most important purchases most people will make. In order to make the right decision the first time, potential buyers need to be prepared. Consider the following before starting negotiations:

· Be prepared

Research the housing market in the target area. Once you have information about the general area, focus on the particular property and seller. Look for answers to questions such as:

1. Why is the homeowner selling? (If they're moving because they find the area undesirable, you might want to consider this issue.)

2. How long has the home been on the market? (If it has been on the market for a long time, perhaps there are negative facts about the property that you need to know.)

3. How much did the seller pay for the home compared to the current asking price? (If the seller paid more, find out why. Was it a general real estate trend, or did property values in that particular neighborhood go down?)

4. What is the seller's time frame for selling and moving? Does it fit within your needs?

5. Are there any defects in the home or problems with the surrounding neighborhood? (For example, is the roof so old that it will likely leak during the next storm? Is there a new construction project in the area that will lead to major traffic congestion?)

As the potential buyer, you want the advantage. While you want answers to all your questions to the seller, reveal very little about your circumstances. Do not give the seller personal information such as your income, the maximum you are able to pay for a down payment or the home, or when you want to move. Make sure that your agent knows not to reveal any such information to the seller or his/her agent.

Also, do not let the seller see how much you want the property. If you appear desperate or overly enthusiastic, the seller then has the stronger bargaining position. When meeting with the seller or listing agent, keep your emotions in check.

· Establish a Timeline

Find out if the seller needs to have the sale closed sooner rather than later. If the seller is feeling pressured to sell, use that to your advantage in negotiating. Even if you, the buyer, are the one with the deadline for purchasing a home, don't let yourself be rushed into making concessions or a purchase you may regret later.

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Types of Mortgages

Fortunately for buyers, there are a variety of mortgages to choose from. It is in your best interest to investigate each of them to determine which is the best for your situation. You probably won't qualify for all of them. In fact, you may only qualify for one. But if you do qualify for more than one, you may save yourself money (and worry) in the long run if you do your homework before signing on the dotted line.

· Fixed-Rate Mortgages

· Adjustable-Rate Mortgages

· The Convertible ARM

· FHA and VA Loan

Fixed Rate Mortgages

Consider a fixed rate mortgage if either of the following describes you:

· You plan on living in your new home for many years, and/or

· You are not a risk-taker and prefer the stability of knowing how much your payment will be each month.

Since most home loans are for a period of 30 years, if you want a payment you can count on for that long of a period of time, a fixed rate mortgage may be what works best for you. Once your loan amount and interest rate are calculated and locked in, a fixed rate mortgage will guarantee that you will have the same payment over the life of the loan. Making extra payments to principal will allow you to pay your loan off sooner.

This may not always be the best choice, however. If interest rates are very high at the time you take out your loan, with a fixed rate mortgage you'll be stuck with that high interest for the life of the loan (unless you choose to refinance). Conversely, if interest rates are very low, you'll come out the winner with interest rates that will stay low no matter how high interest rates go in the future.

The following are the advantages and disadvantages of the varying lengths and terms of fixed-rate mortgages:

15-Year Fixed-Rate:

o Pay off the loan in half the time of a 30-year loan.

o Equity builds up more quickly than in a 30-year loan.

o Payments are higher (which may be a problem if you lose your job or become unable to work).

20-Year Fixed-Rate:

o Pay off the loan in 2/3 the time of a 30-year loan.

o The overall interest paid is considerably less than for a 30-year loan.

30-Year Fixed-Rate:

o The most common choice, especially for first-time homebuyers, as it's the easiest of the fixed-rate loans to qualify for.

o Monthly payments are lower than for 15-year and 20-year loans. This can prove especially helpful if you do not have a lot of "padding" between the amount you can afford to spend and the monthly payment for your desired property.

o More desirable if you plan on staying in the same home for years, since equity builds more slowly than for shorter-term loans.

o For income tax purposes, this term provides the maximum interest deduction.

Adjustable-Rate Mortgages (ARMs)

If you are more comfortable in taking a risk with your money or if interest rates are very high at the time you take out your loan, an adjustable-rate mortgage (ARM) may be the solution for you. You might also choose this type of loan if your planned ownership of the property is short-term or if you expect your income to increase to cover any potential rise in the interest rate.

Generally, the interest rate when you take out your loan will be lower than a fixed-rate mortgage. Please note that this is true initially, not necessarily long-term.

Since an ARM rate rises and falls depending on the prevailing interest rate, your mortgage payment will rise and fall accordingly. If your income is not sufficient to cover the highest possible payments, then this option is not for you. On the positive side, the lower initial payments will allow you to qualify for a larger loan than if you choose a fixed-rate. The downside is that your payments will increase if/when the rates go up.

Typically, ARM interest rates are tied to a specific financial index (such as Certificate of Deposit index, Treasury or T-Bill rate, Cost of Funds-Indexed Arms or COFi, or LIBOR [London Interbank Offered Rate]) and your payment will be based on the index your lender uses plus a margin, generally of two to three points. Get the formula used by your lender in writing and make sure you understand what it means.

Fortunately, the amount an ARM can increase is limited. There are "caps" on how much your lender can increase your rate, both for a period of one year and for the life of the loan. Plan ahead, and have your lender calculate what the maximum payment would be if your rate went to the highest amount allowed by the cap for your particular mortgage. If you are not confident you'll be able to pay that amount on a monthly basis, perhaps you should reconsider this type of loan.

Convertible ARMs

If neither the fixed-rate or the adjustable-rate mortgage seems like the best option, perhaps the convertible ARM will be right for you. This alternative combines the initial advantage of an ARM with a fixed rate after a predetermined number of years. Obviously, this type of mortgage has more advantages when the initial interest rate is low and the future rate is not guaranteed.

Government Loans

Another mortgage option available to some people is a government loan, providing that you meet the qualifications for these loans.

o VA Loans: Veterans may qualify for a loan from the Veterans Administration. There is a limit on the amount you can borrow, so this option works best for those buying a lower priced home.

o FHA Loans: The Federal Housing Association offers loans to lower-income Americans. Look for the phrase "FHA approved" when looking at ads for homes.

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Getting the Best Rates for Your Mortgage

Naturally, you want to get the best deal for the least amount of money. This holds true for mortgage rates as well.

A lower interest rate means a lower monthly mortgage payment, which can save you money in the long run. Also, it is easier to qualify for a lower payment than a higher one.

You basically have two routes to finding the best rate. The first is to do all the research on your own. The second is to use a mortgage broker.

Do-It-Yourself

With the advent of the Internet, much of this information is readily available online. Once you have educated yourself sufficiently about real estate loans, all it takes is the time and energy to sift through online resources to find the information you need.

Rates change quickly. That great rate you find today might not be there tomorrow. Once you find the rate you are looking for, submit a loan application and lock in that rate.

Some sources for interest rates on the Internet include:

Bank Rate Monitor(http://www.bankrate.com)
E-Loan(http://www.eloan.com)

When comparing loans, make sure that you're comparing loans of the same type. For example, you find that "Loan A" for a 30-year loan has a much lower interest rate than "Loan B" (also for 30 years). Upon further inspection, you find that "Loan A" is technically an adjustable rate mortgage. Its payment is based on a 30-year amortization, but becomes due through either payment or refinancing at the end of 5 or 7 years. These are frequently referred to as a 5-year or 7-year fixed-rate mortgage. While both said "30-year", they are not the same type of loan.

Ask the lender for a statement detailing all fees associated with the loan. Factors such as "points" (loan fee), interest rate and "garbage fees" (extra fees which some lenders charge) can vary greatly from one lender to another.

Mortgage Broker

If you do not have the time or experience to "do it yourself," look for a qualified mortgage broker that can assist in finding the right mortgage for you. Ask friends and associates who have refinanced or purchased recently if they have a broker they can recommend. You'll want to find a broker who is energetic, flexible and knowledgeable about finance and loans and someone who has your best interests in mind. Call us today for a reliable mortgage professional referral!

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You've Opened Escrow, Now What?

Congratulations, you are on your way to owning your very own home! Follow these suggestions (and your realtor's advice) so that escrow and settlement with go as smooth as possible.

You will be asked for a down payment on the home you are purchasing. You can choose to put down as much or as little as you want (depending on your mortgage), but remember, the more you put down toward the total price of your home, the less time it will take you to pay off and the less your mortgage payments will be every month.

During this period of purchasing your home, you are going to need an escrow or settlement company to act as an independent third party so that you know when and who to give your money to get the deed to your new home. The escrow or settlement company will hold your deposit and coordinate much of the activity that goes on during the escrow period. This deposit check may also be held by an attorney or in the broker's trust account. Make sure that there are sufficient funds in your account to cover this check.

The deposit check will be cashed. Assuming the sale goes through, this money will be applied to the purchase price of the home. If for any reason the sale is not consummated, you may be entitled to receive all of your deposit back, less standard cancellation fees. In certain instances, the seller may be able to retain this money as liquidated damages. Prior to executing a purchase contract, it would be wise to speak with your counsel regarding whether or not it is your best interest to have a liquidated damages clause as part of the contract.

The period that you are "in escrow" is often 30 days, but may be longer or shorter. During this time, each item specified in the contract must be completed satisfactorily. By the time you have opened escrow, you have come to an agreement with the seller on the closing date and the contingencies. Each contract is different, but most include the following:

1. Inspection contingency: this should be completed as soon as possible after the contract to purchase is signed as unsatisfactory results of the inspection may mean that you will want to cancel the contract.

2. Financing contingency: once the contract is signed, you have a period of time to secure funding. If, for any reason, you are unable to secure funding during the period of time granted to you by the contract (and the seller will not provide a written extension of time), you must decide whether you want to remove the contingency and take your chances on getting a loan. You may choose to cancel the purchase contract.

3. A requirement that the seller must provide marketable title. With an attorney or title officer, review the title report. The title must be "clear" to ensure that you do not have legal issues regarding your ownership.

Check into local and state ordinances regarding property transfer and make sure that you and/or the seller have complied with them.

Secure homeowner's insurance. This will probably be required before you can close the sale. Due to such requirements as special fire and earthquake insurance, obtaining this insurance may require a lengthy period of time. It would be in your best interest to apply for insurance as soon as possible after the contract is signed.

Contact local utility companies to schedule to have service turned on when you close escrow.

Schedule the final walk-through inspection. At this time, you should make sure that the property is exactly as the contract says it should be. What you thought to be a "permanently attached" chandelier that would come with the property might have been removed by the seller and replaced with a different fixture entirely.

You've made it! Once the sale has closed, you're the proud owner of a new home. Congratulations!