July 17, 2024
Buying your home with an FHA mortgage involves finding the right lender, making a down payment, saving for and paying closing costs, and taking the keys to your new home on closing day.
However, it’s crucial to anticipate potential challenges that may arise after moving in.
Did You Get A Home Inspection And An Appraisal?
It’s highly recommended that you get a home inspection as a standard part of buying a house.
Making the purchase contingent on the inspection and appraisal outcomes can offer protection that you won’t realize until long after closing the loan.
While an FHA mortgage safeguards against lower appraised values through an “escape clause” for situations where the house appraises lower than the asking price, adding a contingency clause for inspection issues is wise.
Inspectors might uncover structural or mechanical problems requiring future attention and financial resources.
Reviewing the inspection report a second time (after moving in) helps you to remember and plan for necessary repairs or replacements.
Setting aside funds for these potential expenses is advisable, even if you don’t plan to address them immediately.
Weather Problems
Unexpected events like natural disasters can damage your new home. In such cases, contacting your insurer and, if necessary, the FHA lender is necessary, especially if you need to make payment arrangements due to disaster-related financial hardship.
Having a secure location for vital documents, including home and vehicle titles, mortgage agreements, and bank account information, is crucial for preparedness in such cases.
Replacing And Repairing Over Time
Understanding the age of mechanical systems like furnaces, washers and dryers, and water heaters in the home is essential. Knowing when they might need replacement can help you with financial planning.
Similarly, knowing the condition of your roof and when it may need maintenance or replacement is vital.
Did you know some insurance companies have age restrictions for roofs, potentially affecting coverage or renewal options?
Saving up for roof repairs or replacements early on can mitigate unexpected costs. Don’t get taken by surprise where the roof is concerned. It’s one of the most expensive items to repair or replace in the home.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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