Agree. Must have an inspection. Most important: In the contract you sign you must insist on a inspection contingency. i always demanded that if the inspection showed any faults, the contract was null and void, but at my option the owner could either repair fault or reduce asking price. Gotta be specific. Termite inspection usually required by lender. Other items such as lead based paint, radon, water seepage, and more recently mold and mildew, and the list goes on, are to be part of the contract, some required by some jurisdictions, not all. As with any contract, your must understand the contract, make your agent explain it to you. You do not necessarily need an attorney, except at closing, then an attorney must close. But remember, even though you pay him/her, they in fact represents all parties, ergo at times i have paid for two. Sounds odd, but if i did not feel comfortable, i got second view on issues. Also, the contract should have a contingency of you getting a loan, at the appraised price, minus down payment. Some think this is mandatory, but it is not. Have done "no contengent" contract for what ever reason, usually market forces.
Closing costs: Lender must give you Form HUD 1A, think it is called, a good faith estimate of closing costs. Consists of long list of items such as loan points, title insurance, taxes, recording fees, hazard insurance, recording fees, courier fees, ... you get the picture. Ask you agent what the average closing cost is in your area. Downpayment goes to the heart of your loan and type of loan. Ranges from 5 to 20 percent down. That determines your interest rate.
Agents: In most areas, the agent works for the seller. The seller pays the agent and even though it is "your agent" still representing the seller. i say most areas because there is emerging the "buyer agent". Gets too complicated for this discussion, but in general you sign an agreement with an agent and they become your agent, representing you. The seller still pays, but they are to represent you in the deal.
This subject is near and dear to my heart because i believe owning a home is much more difficult for military folks because we move around so much. Uncle does not pay your closing costs, does not cover any losses you might have when you sell your house for less than you paid for it and etc, common practice in private sector, (as well as Civil Service, to some extent). In addition we go to high cost areas (WashDC, San Diego, SanFran and etc) making it tough. Selling after three years in an area can cost you money. Being an absentee landlord is also tough.
Tough but worthwhile.
