When reading a preliminary report, a buyer's priority is checking the extent of their ownership rights. Liens, restrictions and interests of others that are being excluded from coverage will be listed numerically as exceptions in the report. Interests of third parties, such as easements granted by prior owners that limit use of the property, need to be considered. Some buyers attempt to clear these unwanted items prior to purchase. In addition, a list of standard exceptions and exclusions not covered by the title insurance policy may be attached This section includes items the buyer may want to investigate further, such as any laws governing building and zoning.
Numerous programs exist to help first-time buyers purchase a home.
The U.S. Department of Housing and Urban Development offers a variety of programs through the Federal Housing Administration that require approximately 4 to 5 percent cash down. Among the problems are missing a credit card payment, defaulting on a prior loan, filing for bankruptcy in the past seven years or not paying your taxes. Other black marks on a credit report include a judgment filed against you or any collection activity. If you feel that your credit report is wrong, experts say it's best to take it up with the organization or company claiming you owe them money. But if you've been late paying your bills, regroup by paying in full and on time for six months to a year to prove to the lender that the late payments were an aberration.