Fire and Hazard Insurance
At the time of settlement, many lenders will require you to provide a one-year paid receipt for a fire and hazard insurance policy, often referred to as homeowner’s insurance. These policies are available from several principal insurance companies through your agent or the insurance company of your choice.

Home Warranty
Sooner or later, problems with your home will occur. According to recent statistics, one out of 200 new homes will experience a structural malfunction that will cost an average of $30,000. A home warranty from one of our providers will give your home the protection it needs. Depending on the plan you select, coverage will include mechanical breakdowns in major systems such as electrical, plumbing, heating, and air conditioning, as well as major household appliances such as the refrigerator, oven, washer, and dryer.

Home Inspection
People can personally examine a house make out many flaws, but a professional inspector can spot more in areas not easily accessible to you. The inspector, who should be a member of the American Society of Home Inspectors, will study the structure and mechanics of the house. He will then provide you with written details on the results.

Certain detailed information could reduce the price of the house if the seller will agree the price has not already been discounted due to these imperfections. These days, several states require that sellers supply buyers with either a residential property disclosure or disclaimer statement.

Title Insurance
Title insurance provides security in case anything that has happened to the house prior to your purchase. Most lenders will require title insurance to protect their interests. Remember to ask the owner about their policy to protect your title. You may save money if you buy owner’s title insurance at the same time as mortgage title insurance, rather than buying it separately later.

As a home buyer, you may be able to save money with a reissue rate for title insurance, if the property changed hands within the last several years. Reissue rates are normally available only when refinancing, but in some areas they can be obtained on a home resale where a title search was performed relatively recently for the seller. The title insurance may allow a lower re-issue rate premium because the recent title search is still valid. Consult your title attorney and insurance company for details.

Walk-Through Inspection
The time for you to examine and note any flaws for correction by the seller is during the contract negotiation and before signing the sales agreement. The purpose of the walk-through inspection prior to settlement is to determine if conditions in the contract are satisfied.

It is your choice to perform the final walk-through inspection. The seller may or may not be present. You should be accompanied by the selling broker or the listing broker.
During the inspection, you should

Open and close all windows and doors.

Turn all faucets on and off.

Run showers and flush toilets.

Turn on the furnace and central air conditioning. In the off-season, the buyer may hire a professional to certify proper functionality.

Try all lights and switches.

Turn on the oven at bake and broil.

Test all stove burners.

Run some ice cubes through disposal to test the blades.

Run the dishwasher, washer, and dryer through complete cycles.

All deficiencies will be noted. The selling broker will organize with the listing broker and seller to make repairs before settlement. If the seller does not correct problems prior to settlement, the attorney may withhold funds from the seller.