TERMS TO KNOW

Attorney-in-fact

An individual with the ability to execute documents on behalf of another as a result of a power of attorney.

Cap

A provision of an adjustable-rate mortgage (ARM) that limits how much the interest rate or mortgage payments may increase or decrease. See lifetime payment cap, lifetime rate cap, periodic payment cap, and periodic rate cap.

Contingency

A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.

Title company

A company that specializes in examining and insuring titles to real estate.

POP QUIZ

QUESTIONS: True or False

1. Other than the contract and loan papers, there isn�t much that goes into a settlement.
   True False
2. A home inspection is a structural/electrical/mechanical study of the home. It doesn�t look for cosmetic changes.
   True False
3. Home inspections are required when purchasing a home.
   True False
4. A home inspection only considers the house, but not the property, for potential problems or hazards.
   True False
5. Home inspections are the only inspections I will need.
   True False
6. Settlement attorneys will not name a price for the home, but will help me negotiate a better deal.
   True False
7. It is not enough to go by recommendations, especially from the seller, for settlement professionals. I have to check them out myself and ensure that they are impartial.
   True False
8. If I have a complicated real estate deal, I should get an attorney.
   True False

The Walk-Through Inspection...

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