If you are thinking about buying a house, a home, a condo, twin single, duplex or investment property. 

74.  Yes. You can switch the program say from FHA to conventional. You can also switch to a different lender.

75.  Yes. No. Maybe. In part it would depend on how far into the purchase contract you have gone when you decide. If your closing was scheduled 40 days out from acceptance and you're 1-5 days you can probably still get it done. The seller will need to be notified of the change and typically they will say it's OK as long as you stick to the orginal contract terms. The seller is the NO, or maybe part of the answer. 

76.  These can vary by lender, by the title company hadling the transactkion, the city, county and state. This will be a list from a closed purchase in June 2024 (it's a long list!): (A).  Good items: Called Prorations or Credits-  Seller paid closing costs; Credit to buyer of county property taxes up to the date of closing. (B). Costs- Loan charges to the lender: Processing fee; Underwriting fee; Pre-paid interest till end of the month; credit report fee; Flood certification fee; Appraisal fee (often pre-paid).   Impounds: Homeowners insurance 3 moths to escrow; County property taxes (3 months) to escrlow accout.  Title, escrow & Settlement charges- Title closing protection letter; Title delivery fee; Title incoming wire fee; Title final update & recording service; Title settlement fee; Title insurance binder; Title closing docs prep fee; Title Deed fee; Title EPL discounted ALTA 8.1; Title Lenders insurance; Title Mechanics Lein deletion; Title REM Loan ALTA9; Title survey coverage sim; Title deed prep Admin fee; transfer tax to county auditor; Recording fee (Deed) to county auditor; Recording fee (Mortgage) county auditor. Miscellaneous -  Survey fee to surveyor co.; Homeowners insurance premium (first year).  So in this specific example the home was $435,000 and the total of all these closing fees $7,156.55. Some like the homeowners insurance are often pre-paid before hand - in this case that was $2,089. Also the seller paid $5,000 toward these fees as well, plus the seller credited the buyer with the real estate taxes they owed up to the close date and that amount was $2,081.32

77.  Actually they should be pretty close but there are times when lenders will offer incentives, like paying for the appraisal but make sure you know all the possible closing fees. If they pay for the appraisal (probably a $400-$800 savings) but have an over sized underwriting, or origination fee - they could be charging for more in total even though they "gave the buyer" a free appraisal. It's all in the numbers. 

78.  Yes. No. Maybe. Another good question but the answer varies by lender. In general I'd suggest reviewing the total cost to get the loan - if a Lender A charges $0 application fee but the estimate to close is $5,400; and Lender B says our applicatio0n fee is $500 and the total costs to close are $4700, even if you add the $500 to the $4,700 you are ahead - and perhaps the $4,700 already includes the $500 application fee. You have to review the whole - all the fees, charges and expenses. 

79.  $0 to $500 typically. 

80.  This is best answered by the lender. My understanding is you do not want to have 20 different lenders reviewing your credit as that likely will have a negative impact. But if you have 1-3 pull your credit or view your credit , there should not be a significant change to your overall score. 

81.  This is a better question for the lenders, but my understanding is: if you have 1, 2 or 3 lenders that you are shopping and comparing rates and fees with each; and each is pulling your credit - while there may be a small negative impact briefly, it should not have a negative longer term impact in your overall credit score. 

82.  No. But it's a good question.  This is really it's just the beginning of a longer process. The pre-approval is a brief curorary review of a borrower. Once you move to the full application and loan approval process there wiil be requests for much more information and details. The past two years tax terurns. Two or three months of bank statement, and much more. 

83.  Each lender may refer to their steps with different names. Here is a general overview description. 1.  An online credit review - done yourself.  2.  An application for pre-approval. 3.  When a property is found and in contract - then you make a full loan application. Some lenders have options to get this done in advance, so you're not pre-approved but actually approved. 4.  Collection of documents, statements and proof of income, saving, retirement. This is often referred to as processing. Getting all your docs together, organized and covering all the time frames requested. 5.  Underwriting is when the complete file is sent to be reviewed for compliance to the lenders programs and that they meet the standards to proceed. This is where an loan may be considered Conditionally Approved. Meanig looks good, but often there are a few more items needed to go to fully approved. 6.  Approved, you've cleared all the various lender hurdles and are good.  7. Final review, is a last look over the full file. Making sure everything needed was collected, documented and all conditions met. 8.  Cleared to close. Sort of like getting the red light, that went to yellow but is now green. 

84.  This is another good and common question. The first comment I would make is it first depends on the borrower. Meaning having the documents needed, ready and submitted immediately or quickly. Plus another key is having all the pages for the statement submitted as well. If a bank statement is 5 pages and you submitted four (often because the fifth page was blank) that is NOT the full statement. While you know the 5th page was blank, the lender doesn't know this unless it is incliuded with the other four. If you supply all the needed docs upfront, most lenders can get you through the process and approved in 2, 3 or at least within 4 weeks. Each lender is different but 2 weeks to 4 weeks  should cover the majority of the approval time. 

85.  Yes.  In Central Ohio the purchase contract has a line where that information is to be included. 

86.  No. Generally. The contract does ask for the type of loan (VA, FHA, Conventional, etc) but not how much you are putting down. Depending on the circumstances I will add a comment in the contract if a buyers is making a larger down payment.

But only if the buyer agrees and the competitive nature of the bidding suggests we want to display financial strength within the contract. A means to demonstrate to the seller, that the buyer is strong financially. Why? If there are multiple offers, and another offer is the same amount as your offer. If your offer discloses (example) you are putting 20% or more down and the other does not - then the seller may choose the offer with the bigger down payment. In this example a 20%+ down payment may not even require an appraisal. This could add another reason for the seller to select your offer. Even disclosing that you are putting 5%, or 10% down could have a psychological impact on a seller that you are a more substantial buyer and someone with a higher probability of getting to full and final loan approval. 

87.  This is often referred to as a Buyer Letter. I have had clients provide this in the past, and while most had no known impact, it's an attempt by a buyer to provide information about themselves and why this buyer is a good choice for the sellder to make. It also can viewed as predjudicial and an attempt to bias the seller. Some listing specifically say these letters will not be accepted.

88.  No. Regardless of what may be posted about offer timelines, or offer deadlines. In some cases the seller accepts an offer that does not comply with the timeline. It's always a risk to wait to view a property, or to wait to submit an offer on a property you want to purchase. So general guidance I give: if you see a property on Monday that you want to see on Friday - I'll suggest you need to go sooner. If a property is listed on Monday and the listing says they are going to show it through Sunday and make a decision by Monday. It's still possible it will be sold (in contract) before Friday.  When is the best time to see a property... ASAP. 

89. No. Starting in 2020 this became a pretty frequent occurance. Keep in mind these circumstances occurred in the past as well. Multiple offers still occur today, but much less frequently. Most often they occur in the first 1-5 days but can occur at any time later as well. Essentially, it is more than one offer to buy a property at the same time. 

90.  While multiple offers can occur anytime a property is listed. Multiple offers occur most frequently in the first 1-5 days.

91. No. While it may be more likely, it doesn't mean there are any offers over the list price. 

92.  No. None I can think of other than the seller may extend the timeline to give buyers more time to present their offer.

93.  Multiple offers are generally good for the sellers. Buyers often assume the winner will be the highest priced offer. This is likely. But not always true! Sometimes a seller will select a lower priced offer!

Why? Might be because it was cash. Or closing sooner. Or offered an appraisal gap. Or offered with no inspection. Some offers have even been made where the buyer offers to pay some of the seller's closing costs. 

While the highest price is often the answer. All the above, or mixtures of some of these added terms, can cause the seller to select an offer without the winning offer actually paying the highest price. 

94. Highest & Best. Seems pretty straight forward but really highest and best, is not necessarily just a matter of who offers the most money. There are many cases where that is not the offer chosen. Sometimes an offer that is NOT highest is selected due to preferences of the seller. Some sellers want to remain in the home after closing for any number of reasons. This could mean a few days or up to 60 days. Some loans are buyers with a small down payment and the seller may feel more confident accepting an offer where the buyer is making a large down payment. A lower offer may be as-is; meaning the seller will not have to make repairs. Some offers may say no inspection. Some offers may include an appraisal gap where the buyer will make up any shortfall on the appraisewd price which is lower than the contract price. An d of course any combinbation of these types of factors can influence which offer a seller accepts. A lower offer that is cash may be preferred. An offer which is not highest but will close the fastest may be preferred.

95.  The standard contract used in Central Ohio does have a section where the buyer indicates how many days they have to schedule an inspection. There is an additional line that states how much time the seller has to respond to any Request To Remedy. (RTR). The typical time I use is 7-14 days to get in and complete the inspection and to submit any RTR the buyer has as a result of the inspection.

96.  Great question. This is addressed in the purchase contract. The time is often 7 to 14 days. Sellers will typically want fewer days. Most often a buyer can find an inspection comparny that will get out quickly. The inspection company typically will be able to set up the date and time.

97.  The buyer. Typically. 

98. Once a buyer selects the inspector, or inspection company - the inspector or the home inspection company typically schedules the date and time. I urge buyers to be present throughout the home inspection whenever possible. 

99. Smart? No. In my opinion, I would not recommend a buyer skip the home inspection. Is there a sensible way to buy a home as-is, but make sure you know what the overall condition of the home will be?  As-is, this is a term that a buyer puts in the purchase contract and this term tells the seller you will not ask the seller to fix, repair or replace things in the home that you might find through the home inspection process.  

A preferred way I recommend is to write the purchase contract "as-is" and say the inspection is for the buyer's information only.  The key for the buyer is, if the inspection turns up unknown problems, the buyer still maintains the right to terminate based on the conditions learned. These should be conditions that were unknown, when the offer was made.

What is an  example of not legitimate find?  Saying you want to terminate because there is no dishwasher. If there was no dishwasher when you made the offer that was not a hidden or unknown fact. But if your inspection turns up a string of problems. Now, as the buyer, you know more and you may just terminate the contract. Or you might tell the seller of your findings and see if there is a way to resolve the issues. That could mean the seller fixes, repairs or replaces things. Maybe a seller renegotiates the price or offers closing costs to off-set these discovered problems or possibly some combination. The other factor is you must remember the seller is never obligated to make the repairs or to renegotiate any terms. All parties need to come some new agreement of terms to proceed, or terminate. 

100.  Sure, sellers love buyers who will buy their home "blind." Meaning the buyer will accept any and all problems in the home as part of their offer to buy, or purchase. I am strongly opposed to this with a mention that a new home might be an exception. In hyper-competitive  circumstances it is a ploy some buyers will use to entice a seller to accept the offer versus other offers where the buyer has requested the home inspection. Another factor is how good is the condition of the subject property - based on your walk through plus what others have seen - such as your agent.

I've had a few clients use this but not many. In part because you never know what issues you might be inheriting in this blind offer process.  What if the house is in great condition, but in the attic (which you've not seen) there is mold, mildew, mice, birds and bats - plus the insulation is missing from different places and there are signs of a current water leak? Would that change your mind or opinion on whether to proceed? It might not for one buyer, but if we asked 10 buyers most if not all are going to say these conditions (if known) impacts their interest and how much you'd pay. So yes... sellers LOVE no inspections. I think it's not an intelligent step for most buyers.

101. Most home inspections are limited to what is pretty easily discernible, or findable. Inspectors make every effort to see, locate, find and disclose what is present. They generally will NOT move things in a home. They will inspect and test most of the common items throughout the kitchen, baths, bedrooms, basment, attic and outside areas immediately around a home. Do the appliances work. Detached buildings and garages not attached may, or may not be included.

Most home inspectors may a base inspection and then offer a-la-carte added inspections. Examples may be: radon, termites, hot tubs or pools and many other possibilities. Pricing is typically associated with the size which in part means bigger properties will also take longer to complete. Some inspectors, or their companies offer guarantees or even options to purchase a home warranty. 

102.  No. This is another added inspection a buyer may request. These often add $100-$200 to the total cost. A machine is placed inside the property at the lowest used level. It usually sits in the same location monitoring radon levels 24 hours per day for 1-3 days.

103.  No. Most home inspection companies can include this service but it is often an added fee. VA loans require a termite inspection. It is common in older homes to find evidence of past termite problems. This is not an issue, but lenders will want to know about any termite treatments that were done by the current owner. 

104. Typically no. They will not move things due to the possible damage that may occur to anything if moved. Sellers should have these areas cleared prior to the inspection 

105. Pre-paids  are different items a buyer pays for in advance: "pre-paid." Varies but common ones are: Home insurance. The insurance against fire, weather and damages  that can occur. The lender wants this to assure the property can be repaired if these circumstances come up. When you close you will pre-pay the interest on the mortgage balance for the remaining days of the month.

So if you close on the 15th and the month has 30 days, you will pay the interest due for the 15 days till the end of that month. If yoiu had the home inspected, this is another item you pay for before owning the property, so that's n out of pocket expense as well. There can be others but make sure you ask the lender to tell you what to expect - up front.

106.  Yes, in most cases. Some homes do not have an access panel so it's not possible. When there is access the home inspector will typically attempt to get access. Some homes do not have a clear path to get access and inspectors will not move items to gain access.

I strongly encourage buyers to see or view the attic whenever possible.Keep in mind as an unfinished space - you will often see signs of prior water or other damage in an attic. But this is very common and not a sign that there are any current problems. Example a home built in 1920 has likey had several new roofs installed. It is possible it was leaking in 1945 before being replaced , as an example. The water stains reamain even decades later. You do want to see if there are signs of current or recent problems. 

107.  Yes. Some inspectors will bring a ladder and depending weather, traverse the roof. Others may bring a drone to get over top and inspect the roof. In some cases it is easy to determine the roof is old and not in good condition. On these there are often missing shingles; broken shingles; cupped shingle, up or downward; vents, chimney stacks, vent stacks, plumbing stacks, step flashing, valleys, gutters and other assorted items effecting the roof and condition. New, or newer roof typically show little signs of granular loss. This is the rocky, sandy materials on the shingles. Walking on the roof can sometimes detect when when the joists underneath may be weakened.  

108.  Yes. They typically also remove the cover and look at how the wires are pulled into the panel. Some have infa-red scopes which will indicate if there are any overheating possibilities. They will look for brand of panel; there are a few where the manufacturer is no longer in business, which can be a problem when seeking parts. They check for double taps - meaning two wires are coming into one breaker that was designed for one wire.

They look for a grounding bar, and whether the wiring meets current code standards. The brand of the panel and the brand of the breakers will typically be noted.  They will determine if the panel is in a good, safe location: no water or drain lines should traverse the panel location. They should note the size AMPs of the panel and if the main line set coming in  matches up with the panel. Example there may be a 100AMP line coming into the house but the panel is 200 AMPs. Not a problem but there are still just 100 AMPs coming into the property. 

109. Yes. They should look at all major mechanical appliances. List their manufacturer. When it was built and observe how well they are functioning. The time of the year and weather effects the use of the furnace and air conditioning at different points of the year.

These are often referred to as HVAC. Heating, Ventilation, Air Conditioning. Were they clean or dirty. Serviced and maintained. Does the furnace generate the expected volume of heat, with a temperature difference expected. Does the AC or heat pump work and produce the desired lower temperature air. In some cases there is no brand visible but generally the manufacturer can be determined by a serial # or model number

110. Yes. Most home inspectors will turn on and run the dishwasher, range, and built-in microwave. Generally anything built-in and staying should get tested to see if it is still operational. Now that is not on how well it performed, but rather to see if it is still functioning. Do the burners on a range turn off and on. Does the oven turn on etc. 

111. This is beyond the scope of typical inspections. Example: if there is an overhead light in a bedroom; the inspector will switch it on and off. The common comment is the light switch in that room does not work. But in fact it could be something as simple as needing the light bulb replaced. Because there is so much to be viewed and tested - most inspectors will not bring light bulbs and test to see if the bulb was the cause.

112. In general I would say yes, but if this is a an important topic you might want to ask that question beforehand. Some inspectors open one window per room as an example. Others may open and close all windows to check performance.

113. A good question but tougher to answer. Certainly, if there are current, present, water and moisture problems observable, then the inspector should be commenting on these as well as documenting the issues with pictures too. In older homes, you almost always see signs of water problems and past stains, and discoloration. Determining whether these occurred last week, or 100 years ago is difficult to define.

Some inspectors bring a moisture meter, which can used throughout the inspection but this can be very helpful in basements. An example might be: all the basement walls look the same but a moisture meter might show one corner has a much higher moisture level. This could be a sign that there are problems or that possible problems could be developing in that location. 

114. No. But in general, the contracts have clauses that permit the buyer to conduct such tests. Based on the results of a test, the buyer can typically: 1). Terminate;  2). Ask the seller to make repairs to remediate the problem; 3). Permit the buyer to negotiate the purchase price because of the results. Like many parts of a purchase, the process and the results vary every time for each buyer.

115. The number where remediation is advised is over 4.  Testing for radon is usually an a-la-carte (extra cost) added inspection option for buyers. When selected the inspection company will arrange to get a meter to be set in the home for 2+ days. The meter is typically set at the lowest living level. The radon testing language:  if the radon level is 4 picocuries per liter (pCi/L) or higher it is advised there home should have a radon remediation system installed. 

116. The cost can vary significantly. In Central Ohio the range seems to be between $800 and $2,000. (2024)

117. Another great question and is pretty common. Here is another example where there is no one answer. Or a single best answer. Part of the answer is how motivated are you if buying - to buy this particular property? Example: let's say the roof is 20 years old. And we'll estimate the replacement cost at $15,000. Hypothetically: if you are paying $20,000 less than you think it's true value, then perhaps the need for a new roof in the next 1-5 years is OK. But if the scenario is you paid a premium - example $10,000 over the listed price. Do you want to pay for a new roof in the next few years as well? In some cases you might say yes that's OK. My advice to buyers is to do everything possible to extract that cost from the seller.

Could be in the form of closing costs help. Purchase price reduction, or in a perfect world - getting the seller to put on a new roof as part of the sale.  It could be a combination of these scenarios. This is a pretty common occurrence in real estate transactions.

Some sellers may advertise the fact that certain items are old or getting old. Think of this as seller,  advancing details prior to making an offer or conducting an inspection. Such a seller is hoping to avert renegotiating because the buyer found out the information after going in contract so they "expect" it will be factored in to any offer presented. It's another blurry subject but good to know a little about in advance to help plan.