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Shopping for Services
Helpful hints for new home buyer
At the time of settlement, you are committed to complete the purchase of the property and may have made partial payment, sometimes called earnest money, to the seller or his agent. Services may have been performed for which you are obligated to pay. Unless a seller fails to perform a legally binding promise or has acted in a fraudulent fashion, you are normally obligated to complete your part of the contract and pay settlement costs. Thus the time to decide the terms of sale, raise questions, and establish fair fees is not at time of settlement, but earlier, when you negotiate with the seller and providers of settlement services. By the time of settlement, any changes in settlement costs and purchase terms may be difficult to negotiate.
You can also negotiate with the seller of the home about who pays various settlement fees and other charges. There are generally no fixed rules about which party pays which fees, although in many cases this is largely controlled by local custom.
Among the many factors that determine the amount you will pay for settlement costs are the location of your new home, the type of sales contract you negotiate, the arrangements made with the real estate broker, the lender you select, and you decisions in selecting the various firms that provide required settlement services. If the chosen home is located in a "special flood hazard area", identified as such by the Federal Emergency Management Agency (FEMA) on a flood insurance map, the lender may require you to purchase flood insurance pursuant to Federal law. Information on flood insurance availability, limits of coverage and copies of maps can be obtained through the National Flood Insurance Program by calling this toll-free number 800-638-6620 (in Maryland 800-492-6605) or by writing to NFIP, P.O. Box 619, Lanham, Maryland 20706. For more information please contact Prime Lend America Mortgage Corporation - Call Toll-Free: 1-877-US-PRIME
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