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| Do I need a lawyer to buy a home? |
| Laws vary by state. Some
states require a lawyer to assist in several aspects of the home buying
process while other states do not, as long as a qualified real estate
professional is involved. Even if your state doesn't require one, you
may want to hire a lawyer to help with the complex paperwork and legal
contracts. A lawyer can review contracts, make you aware of special
considerations, and assist you with the closing process. Your real
estate agent may be able to recommend a lawyer. If not, shop around.
Find out what services are provided for what fee, and whether the
attorney is experienced at representing homebuyers.
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| Do I really need homeowner's
insurance? |
Yes. A paid homeowner's
insurance policy (or a paid receipt for one) is required at closing, so
arrangements will have to be made prior to that day. Plus, involving the
insurance agent early in the home buying process can save you money.
Insurance agents are a great resource for information on home
safety and they can give tips on how to keep insurance premiums low.
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| What steps could I take to lower
my homeowner's insurance costs? |
Be sure to shop around
among several insurance companies. Also, consider the cost of insurance
when you look at homes. Newer homes and homes constructed with materials
like brick tend to have lower premiums. Think about avoiding areas prone
to natural disasters, like flooding. Choose a home with a fire hydrant
or a fire department nearby.
Other ways to lower insurance costs include insuring your home and car
with the same company, increasing home security, and seeking group
coverage through alumni or business associations. Insurance costs are
always lowered by raising your deductibles, but this exposes you to a
higher out-of-pocket cost if you have to file a claim.
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| Is the home located in a
floodplain? |
| Your real estate agent or
lender can help you answer this question. If you live in a flood plain,
the lender will require that you have flood insurance before lending any
money to you. But if you live near a flood plain, you may choose whether
or not to get flood insurance coverage for your home. Work with an
insurance agent to construct a policy that fits your needs.
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| What other issues should I
consider before I buy my home? |
| Always check to see if
the house is in a low-lying area, in a high-risk area for natural
disasters (like earthquakes, hurricanes, tornadoes, etc.), or in a
hazardous materials area. Be sure the house meets building codes. Also
consider local zoning laws, which could affect remodeling or making an
addition in the future. Your real estate agent should be able to help
you with these questions.
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