The interest rate on a mortgage has a large impact on payments and costs. Available rates change all the time, based on government policies, financial conditions and more. In the weeks-to-months required for a home purchase, rates could go up (or down). So most lenders offer mortgage customers options for a guaranteed rate — the common term is rate lock. The availability of rate locks, and the factors that are involved in a lock, also vary with market conditions. Of course, the buyers financial profile will affect availability as well: What is your credit score? How solid is your credit history? What is the LTV ratio of the offer on the property? Where is the property located? Rate locks are usually available for: An accepted offer, on a specific property, For a given combination of interest rate and points, For a set period of time, Whether market rates go UP or DOWN. The last point is key. Accepting a rate lock could mean slightly higher-than-market costs if rates go down after you have locked. At some point in the home-buying process, you may be offered the option of a rate lock. Are mortgage rates changing rapidly? Trending up, or down? Are there factors about the transaction, or construction schedules, that might matter? Deciding whether to lock or to stick with market conditions and "float" is a judgement call. Get advice, read and research, and then make the best decision for your situation.

A home inspection provides a professional eye on the current safety, structure, construction and mechanical systems of the house. The buyer is not required to be present. However,if the inspector allows, taking notes and pictures as they do their job — without impairing their ability to do the job — are a valuable opportunity. Generally, after the inspection they will be available to answer questions about the report and any problems noted in the report. Objective, expert opinion about such an important asset is valuable. Take the time and opportunity to learn and ask maintenance questions, and to "get acquainted" with the new house you may own soon.

Understanding what a "home inspection" does is useful in the purchase (and selling) process. Home inspectors bring professional knowledge to the job of inspecting the structure, construction, systems and current state of a home. They do not weigh in the value or price of a property, but do provide an objective recommendation of status and recommended repairs. Things usually included in an inspection: Top-to-bottom structural state: roof, ceilings, walls, windows, floors and roof. Electrical system status and safety. Plumbing and waste disposal system conditions. Key mechanical systems, including water heaters, heating and A/C. Ventilation and insulation condition. Water — source, quality and (potentially) obvious plumbing issues. Pests — or the absence of. (Pest inspection may be a separate, required step in some communities.) Look for a home inspector with experience, qualifications and (ideally) time in the local market. While home inspections may or may not be required under specific market conditions, remember that skipping inspection means you own the house as-is once the deal has closed.

Home inspection is frequently required in the process of a home purchase; this short video explains the purpose of an "inspection clause" in a purchase offer. Under some market conditions, a buyer might include a clause that makes purchase conditional on, or influenced by, the results of a home inspection. This gives the buyer some latitude to exit from the deal, or to renegotiate, if the inspection reveals issues. An inspection clause might also stipulate responsibility, such as requiring the seller to address problems revealed by inspection before the purchase is completed. In other conditions, such as highly-competitive buying markets, a home-inspection clause might be left out entirely. Be clear on the risk that this introduces. The real estate professionals involved in the transaction will provide guidance on the decision.

The initial offer price and terms on a home purchase have a big effect on the final deal. Keep a few things in mind in calculating your offer: If a buyers agent is involved, working for you (the buyer), they should take the lead on this job. Remind them to keep information and decisions confidential. If a buyers agent is NOT involved, remember that the selling agent works for the seller, not you! Calculating the actual offer should factor in: The price and terms for homes in the area The price and terms for recent, similar and especially nearby sales ("comps" -- comparable homes.) The condition of the home The listing history - how long has it been on the market? Has the listing price changed over time? Your financing terms, and general financing conditions such as interest rates. The sellers situation Know what the home is worth, and what you can afford. Negotiation is common; expect the buyer to make a counter-offer and anticipate more than one back-and-forth to reach agreement on the final price and terms. If you have a buyers agent, consider their advice, but follow your own reason and goals.

Whether its a real walk-through or a virtual walk-through, theres no substitute for seeing a prospective home. Keep your own list of requirements in mind, but also size up and record these things about each: Do the numbers of bedrooms, offices and bathrooms meet or exceed your requirements? Do the other rooms and features provide the space you need now and later? Will your furniture fit, and fit well? Does the structure look solid? Are appliances, heat/AC and other systems in good working order? Are there obvious outstanding repairs? These might be negotiated in the purchase process. How do yards, decks and garage spaces stack up against your needs? You may save time by measuring and recording the results, especially for key rooms or those that are questionable fits. It can be especially helpful to envision the place in very different seasons. What will this be like in snow? Rain? Heat? Save yourself time by "keeping score", with consistent notes and measurements for each place that youre really going to consider.