HOA – Homeowner’s Association
A homeowner’s association (HOA) is usually found when you purchase a condominium, townhome, or other development property. To purchase the home, you must join the HOA and pay monthly or yearly HOA fees. These fees can cover common area maintenance, repairs, and general upkeep. The more amenities your building offers, the higher the HOA fees typically are.
Homeowner’s Insurance
When you purchase a home, you must also purchase homeowner’s insurance to cover any losses or damages you might incur, such as natural disasters, theft, or damage. It also protects the homeowner from liability against accidents in the home or on the property. Insurance payments are usually included in your monthly mortgage payments.
Home inspection
A home inspection occurs after a home is in contract — buyer and seller have signed an initial agreement. Conducted by a professional inspector, it evaluates the home’s condition, reviewing the property to make sure it is safe, inhabitable, and free of major defects. It indicates any dangers or need for repairs.
Seller Concessions
Seller concessions are items the seller agrees to pay for on behalf of the buyer. These can include covering closing costs or any other costs the lender deems allowable
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PITI
PITI stands for principal, interest, taxes, and insurance and refers to the sum of each of these charges, typically quoted on a monthly basis.
Property Taxes
Property taxes are set by your state. The amount you pay is based on your home’s value and local tax rates for your county or municipality. Property taxes typically fund schools, fire and police departments, city parks, and other amenities and services.
PA – Purchase agreement
A purchase agreement demonstrates a buyer’s intent to purchase a piece of property and a seller’s intent to sell that property. The document outlines the terms and conditions of a sale and holds each party legally accountable for meeting their agreement.
Post Closing Occupancy
A post-closing occupancy agreement or “giving the seller occupancy after closing” allows the seller to stay in the home for an agreed-upon length of time, usually no more than 60 days after the closing. Depending on the negotiations, the seller may “rent back” for a predetermined daily rate, or the buyer may give the seller “free’ occupancy. There will also be a security deposit held in escrow to cover any damages. During the occupancy period, the seller is responsible for maintaining all mechanical systems of the home, utilities, lawn, and snow, as well as carrying contents/renters insurance.
