Option Period - Day 2 cont'd

We've put a bid on a house. We've exectued the contract. This essentially closes off the property from any other bids until we're done with them. Although we have essentially agreed on a 'price' this doesn't necessarily mean this is the price we will pay. Now begins (besides the option period) a time of specific information gathering about the house.

Next, i schedule a home inspection. The easiest thing to do is find someone who has bought a home recently and get a recommendation. You can search all day for inspectors on the internet and the yellow pages and still be just as lost as you were when you started. I called Doyle and got a recommendation from him. End of story.

I've also got to schedule a termite inspection. For this one, i'm going with the lady my realtor has recommended to me - mainly because i just don't have anyone else who could recommened a bug inspector to me (can you?). She lives and works in the area.

At the same time, the bank has to get started on it's work. I've sent them all pertinent financial documents, but they still need original copies of bank statements and other misc forms. (Remember that: original documents). I had a copy of the executed contract sent over to them so they can get the paperwork started on the loan.

I also called an insurance agent at my credit union do to a check on the property for any claims made on that property. Result: 0. I also had her give me an estimate for Homeowners Insurance and a Flood Policy. This is when i found out that, contrary to my assumption, i WAS NOT in a high risk flood area. As a matter of fact I am in an 'X' zone, denoting a minimal risk of flooding. The numbers came back: about 2000/yr for home ins and 248/yr for flood. She thought that was a little high, so i should shop around.

I contacted another insurance agent today and sent him on a quest for more affordable insurance for me. The quote should come back sometime tomorrow, hopefully.

I'll prolly schedule the inspection for sometime early next week; probably monday. Once all the inspections are done and the bank sends out the appraiser and surveyor, the real fun starts. Everyone returns to the negotiating table and tries to work out any problems that may have arisen from the various inspections - and potentially the price gets re-negotiated.

Possibilities Include:

Structural, mechanical or plumbing problems that need to be taken care of before the house will be bought.

or

The house is appraised for less than it's being sold for. (This is my biggest fear - a real potential deal killer)

So this is where I am at right now in case anyone was wondering.