Whether you are buying or selling a home, mold has become a hot issue. Health concerns and potential damage make mold a red flag for buyers. And even if you’re not planning to sell any time soon, taking care of mold problems now can prevent even larger problems in the future. Contrary to what some people think, mold is not a geographic problem—it can occur anywhere, no matter where you live. Here is some basic information about mold and how to deal with it.
What is mold?
Molds are microscopic organisms that are found virtually everywhere, indoors and outdoors. There are thousands of different kinds of mold. Their natural function is to help break down dead materials such as stumps and leaves so the nutrients can be used by the environment. For molds to grow, they need two things: an organic food source—such as leaves, wood, paper or dirt—and moisture.
Problems associated with mold
Mother Nature uses mold to decompose plant material. Unfortunately, when present indoors, it can be equally destructive. Mold growth can damage furnishings, such as carpets, sofas and cabinets. Left unchecked, it can also cause serious damage to walls and structural elements in your home.
Mold is present everywhere, and most people tolerate exposure with no adverse effects. If allowed to spread, however, it may cause problems. As molds grow, they release thousands of tiny spores that travel through the air. When inhaled in large enough amounts, these spores may increase the risk of adverse health effects in some people, particularly respiratory problems. A less-common strain of mold called “black mold” can be particularly troublesome to those who are especially sensitive.
Common causes of mold problems
Don’t think that just because you live in a hot, dry climate, your home is not vulnerable to mold. There are many sources of mold problems, from faulty air conditioners to poorly positioned sprinkler systems. Federal standards for energy-efficient home building have even contributed to the problems. By making homes more airtight, construction techniques in newer homes can trap moisture inside.
Here are the most common sources of mold inside the home:
- Leaky roofs or damaged gutters
- Heating or cooling system problems
- Poor drainage next to foundation
- Plumbing leaks from toilets, refrigerators and dishwashers
- Damp basement or crawl space
- Leaking windows or doors
- Steam from shower or cooking
- Indoor exhaust from clothes dryer
What to look for
If you can see or smell mold inside your home, it’s time to take measures. Any area that has sustained past or ongoing water damage should be thoroughly inspected—you may find hidden mold growth in water-damaged walls, floors or ceilings. Walls and floors that are warping or discolored can also indicated moisture problems, as can condensation on windows or walls.
Preventing mold in your home
Since mold is always present, there’ no way to eliminate it completely. You can control indoor mold growth, however, by controlling moisture.
- Remove the source of moisture by fixing nay leaks or other water problems.
- Make sure bathroom fans and dryers are properly vented to the outside. Always use the exhaust fan when cooking or showering.
- Use a dehumidifier or air-conditioning system. Make sure your AC system is well maintained and is the correct size for your home. A faulty AC system can cool the air without removing the water vapor, creating high humidity.
- Insulate your home well to prevent indoor condensation.
- Have your heating, ventilation and cooling systems professionally cleaned annually. Air-duct systems can easily become contaminated with mold.
- Regularly clean moist area such as the bathroom with products that treat mildew.
- Dry-clean, rather than wet-clean, your carpets.
- Avoid carpeting bathrooms and basements.
- Clean any moldy surfaces as soon as you notice them.
Mold is a manageable problem. Unless it is dealt with correctly, however, it will continue to come back. If your mold problem is severe or if you have extensive water damage, it’s best to call an experienced, professional contractor who specializes in mold removal. If you have a mold problem that is isolated to a small area, less than a square yard or so, you can try to resolve it yourself.
Porous items that are hard to clean, such as carpet and drapes, should be discarded. Moldy sheetrock and ceiling tiles can be removed and replaced.
Hard, nonabsorbent surfaces such as glass, plastic and metal can be thoroughly cleaned with soap and water. Allow to dry completely.
For solid items that are semi-porous, such as floors, cabinets and wood furniture, scrub with an ammonia-free cleaner and hot water to remove all mold. Rinse with water and dry thoroughly. After cleaning, apply a mildewcide to kill mold and spores.
When cleaning mold, remember to wear gloves, a mask and eye protection, and work in a well-ventilated area. Never mix cleaner containing bleach and ammonia; this can result in the release of a toxic gas. And be sure to throw away any sponges or rags that you use for cleaning.
Is 2018 the “Year of the Big Move”? Some experts are predicting so. According to Real Estate Expert Charlie Young, certain real estate factors are in place that may compel more people to consider relocating to a different area of the country. Here are a few:
- Increase in mortgage rates
- Pay not keeping pace with home prices
- Long-term toll of the recession
- Increased home prices have helped homeowners move from underwater to positive equity
- US census data is showing an increase in migration
On average, Americans move every five to seven years, so it is likely at some point in your future you will experience another moving day. While moving can be challenging, there are resources to make it easier. If you are remaining in the area, your real estate agent can continue to be a valuable resource on communities, schools, utilities, transportation, recreational opportunities, and more.
If you are moving out of the area, your agent can help you with a referral to another reputable agent in your new community. Our agents are a part of a broader network that connects them with agents all over the world. Many agents also have relationships with real estate-related service companies in their area whom they can call upon for information regarding title, escrow, mortgages, temporary housing, and moving services. They can also help guide you in your Internet search as you learn more about new communities and relocation services.
You’ve decided to move. Now what?
Once you have reached your decision, it’s time to gather information, start making decisions and get organized. Begin by creating a “move” file to keep track of your estimates, receipts, and other information. If you’re moving for a job, some expenses may be deductible, so you’ll want the paperwork when tax time comes.
If you are moving out of the area, start researching your new community and ask your agent for help in finding a referral agent in your new area. You’ll also want to determine whether you want to rent first or buy immediately. Your new agent should be able to help you with your decision. Once you know where you’re going, you’re also ready to get estimates from moving companies.
Reason’s people move:
Closing one door, opening another
After you have chosen a moving date and either hired a moving company or reserved a rental truck, it’s time to wrap things up in your old neighborhood and start establishing relationships where your new home is located. This is particularly important if you are moving to a new town/city. You may want to ask your current doctors, dentists, etc. if they have any referrals on care providers in your new location. Be sure to check their recommendations on your insurance company’s online provider search list. Once you arrive, you may also want to ask new coworkers, friends or the school nurse for their recommendations.
Contact your children’s school and/or day care and arrange for their records to be sent to their new school district or day care. Call your insurance agent about coverage en route to your new home and also arrange for insurance in your new home. Remember to contact utility companies to disconnect, transfer or end service in your current home and turn on service in your new home.
You’ll want to file a change of address form with the U.S. Postal Service, either online or at your local office. If you don’t know your new address, have them hold your mail at the post office in your new locale. Don’t forget to cancel or transfer magazine and newspaper subscriptions as well.
If you belong to a health club or other association, contact them about ending or transferring your membership. Some clubs require written notice before cancellation. Finally, contact your bank or credit union to transfer or close accounts; if you have a safe-deposit box, don’t forget to clean it out before you leave.
Starting the countdown
With moving day in sight, it’s time to get organized. Here are a few items to check off your list before you start packing:
Tie up loose ends. Be sure to send out an email or change of address cards with your new contact information to family, friends, and associates. Return library books and any other borrowed items you may still have.
Triage your possessions. Determine what you are taking with you; what you are giving away to friends, family, or a favorite charity; and what is going to the dump or recycling center. If you have time, you can hold a garage sale or post items on craigslist.org or ebay.com.
Clean up. Drain all gas and oil from your mower, other machinery, gas grills, kerosene stoves and lamps, etc., before loading them onto a moving truck. Empty, defrost, and clean your refrigerator at least 24 hours before your move, and prepare other appliances for moving as well.
Have your car serviced. This is especially important if you are driving to your new home.
If you are doing your own packing, start collecting boxes and/or buy them from your movers. It may take a few days to do your packing, so be sure to pack non-essential items first and label them carefully. If you have any valuables, it’s recommended that you take them with you as opposed to packing them. You risk the chance of losing those items if they’re packed away in boxes. It’s also smart to take along a box of essentials, including items such as toilet paper, paper towels, tape, soap, scissors, pens, paper, and your toiletries. That way you won’t have to track these items down once you’ve arrived in your new home.
When making an important decision like buying a new home, personal circumstances are often a driving force. Whether you are a first-time homebuyer, need more space for your growing family, downsizing to fit an empty nest, or looking for a retirement property, finding the right information, the right real estate agent, and the right properties that fit your needs are all important parts of that process. Based on recent studies by the National Association of REALTORS® on generational trends, we can identify the best resources to help you in any phase of your life.
Among all generations, the first step most buyers take when searching for a home is online. Younger generations tend to find the home they eventually purchase online, while older generations generally find the home they purchase through their real estate agent.
Across generations, home ownership still represents a significant step in achieving the American Dream. According to a study by LearnVest, an online financial resource, 77 percent of those surveyed believed that buying a home of their own was, “first and foremost in achieving the American Dream”.
Appraised value vs. market value
Appraisals are designed to protect buyers, sellers, and lending institutions. They provide a reliable, independent valuation of a tract of land and the structure on it, whether it’s a house or a skyscraper. Below, you will find information about the appraisal process, what goes into them, their benefits and some tips on how to help make an appraisal go smoothly and efficiently.
The appraised value of a property is what the bank thinks it’s worth, and that amount is determined by a professional, third-party appraiser. The appraiser’s valuation is based on a combination of comparative market sales and inspection of the property.
Market value, on the other hand, is what a buyer is willing to pay for a home or what homes of comparable value are selling for. A home’s appraised value and its market value are typically not the same. In fact, sometimes the appraised value is very different. An appraisal provides you with an invaluable reality check.
If you are in the process of setting the price of your home, you can gain some peace-of-mind by consulting an independent appraiser. Show him comparative values for your neighborhood, relevant documents, and give him a tour of your home, just as you would show it to a prospective buyer.
What information goes into an appraisal?
Professional appraisers consult a range of information sources, including multiple listing services, county tax assessor records, county courthouse records, and appraisal data records, in addition to talking to local real estate professionals.
They also conduct an inspection. Typically an appraiser’s inspection focuses on:
- The condition of the property and home, inside and out
- The home’s layout and features
- Home updates
- Overall quality of construction
- Estimate of the home’s square footage (the gross living area “GLA”; garages and unfinished basements are estimated separately)
- Permanent fixtures (for example, in-ground pools, as opposed to above-ground pools)
After considering all such information, the appraiser arrives at three different dollar amounts – one for the value of the land, one for the value of the structure, and one for their combined value. In many cases, the land will be worth more than the structure.
One thing to bear in mind is that an appraisal is not a substitute for a home inspection. An appraiser does a cursory assessment of a house and property. For a more detailed inspection, consult with a home inspector and/or a specialist in the area of concern.
Who pays and how long does it take?
The buyer usually pays for the appraisal unless they have negotiated otherwise. Depending on the lender, the appraisal may be paid in advance or incorporated into the application fee; some are due on delivery and some are billed at closing. Typical costs range from $275-$600, but this can vary from region to region.
An inspection usually takes anywhere from 15 minutes to several hours, depending on the size and complexity of your property. In addition, the appraiser spends time pulling up county records for values of the houses around you. A full report comes to your loan officer, a real estate agent or lender within about a week.
If you are the seller, you won’t get a copy of an appraisal ordered by a buyer. Under the Equal Credit Opportunity Act, however, the buyer has the right to get a copy of the appraisal, but they must request it. Typically the requested appraisal is provided at closing.
What if the appraisal is too low?
If you appraisal comes in too low it can be a problem. Usually the seller’s and the buyer’s real estate agents respond by looking for recent and pending sales of comparable homes. Sometimes this can influence the appraisal. If the final appraisal is well below what you have agreed to pay, you can renegotiate the contract or cancel it.
Where do you find a qualified appraiser?
Your bank or lending institution will find and hire an appraiser; Federal regulatory guidelines do not allow borrowers to order and provide an appraisal to a bank for lending purposes. If you want an appraisal for your own personal reasons, and not to secure a mortgage or buy a homeowner’s insurance policy, you can do the hiring yourself. You can contact your lending institution and they can recommend qualified appraisers and you can choose one yourself or you can call your local Windermere Real Estate agent and they can make a recommendation for you. Once you have the name of some appraisers you can verify their status on the Federal Appraisal Subcommittee website: https://www.asc.gov/National-Registry/NationalRegistry.aspx
Tips for hassle-free appraisals:
- What can you do to make the appraisal process as smooth and efficient as possible? Make sure you provide your appraiser with the information he or she needs to get the job done. Get out your important documents and start checking off a list that includes the following:
- A brief explanation of why you’re getting an appraisal
- The date you’d like your appraisal to be completed
- A copy of your deed, survey, purchase agreement, or other papers that pertain to the property
- If you have a mortgage, your lender, the year you got your mortgage, the amount, the type of mortgage (FHA, VA, etc.), your interest rate, and any additional financing you have
- A copy of your current real estate tax bill, statement of special assessments, balance owing and on what (for example, sewer, water)
- Tell your appraiser if your property is listed for sale and if so, your asking price and listing agency
- Any personal property that is included
- If you’re selling an income-producing property, a breakdown of income and expenses for the last year or two and a copy of leases
- A copy of the original house plans and specifications
- A list of recent improvements and their costs
- Any other information you feel may be relevant
By doing your homework, compiling the information your appraiser needs, and providing it at the beginning of the process, you can minimize unnecessary phone calls and delays.
Nothing in life lasts forever – and the same can be said for your home. From the roof to the furnace, every component of your home has a lifespan, so it’s a good idea to know approximately how many years of service you can expect from them. This information can help when buying or selling your home, budgeting for improvements, and deciding between repairing or replacing when problems arise.
According to a National Association of Home Builders (NAHB) study, the average life expectancy of some home components has decreased over the past few decades. (This might explain why you’re on your third washing machine while Grandma still has the same indestructible model you remember from childhood.) But the good news is the lifespan of many other items has actually increased in recent years.
Here’s a look at the average life spans of some common home components (courtesy of NAHB).
Appliances. Of all home components, appliances have the widest variation in life spans. These are averages for all brands and models and may represent the point which replacing is more cost-effective than repairing. Among major appliances, gas ranges have the longest life expectancy, at about 15 years. Electric ranges, standard-size refrigerators, and clothes dryers last about 13 years, while garbage disposals grind away for about 10 years. Dishwashers, microwave ovens, and mini-refrigerators can all be expected to last about nine years. For furnaces, expect a lifespan of about 15 years for electric, 18 for gas, and 20 for oil-burning models. Central air-conditioning systems generally beat the heat for 10 to 15 years.
Kitchen & Bath. Countertops of wood, tile, and natural stone will last a lifetime, while cultured marble will last about 20 years. The lifespan of laminate countertops depends greatly on the use and can be 20 years or longer. Kitchen faucets generally last about 15 years. An enamel-coated steel sink will last five to 10 years; stainless will last at least 30 years; and slate, granite, soapstone, and copper should endure 100 years or longer. Toilets, on average, can serve at least 50 years (parts such as the flush assembly and seat will likely need replacing), and bathroom faucets tend to last about 20 years.
Flooring. Natural flooring materials provide longevity as well as beauty: Wood, marble, slate, and granite should all last 100 years or longer, and tile, 74 to 100 years. Laminate products will survive 15 to 25 years, linoleum about 25 years, and vinyl should endure for about 50 years. Carpet will last eight to 10 years on average, depending on use and maintenance.
Siding, Roofing, Windows. Brick siding normally lasts 100 years or longer, aluminum siding about 80 years, and stucco about 25 years. The lifespan of wood siding varies dramatically – anywhere from 10 to 100 years – depending on the climate and level of maintenance. For roofs, slate or tile will last about 50 years, wood shingles can endure 25 to 30 years, the metal will last about 25 years, and asphalts got you covered for about 20 years. Unclad wood windows will last 30 years or longer, aluminum will last 15 to 20 years, and vinyl windows should keep their seals for 15 to 20 years.
Of course, none of these averages matter if you have a roof that was improperly installed or a dishwasher that was a lemon right off the assembly line. In these cases, early replacement may be the best choice. Conversely, many household components will last longer than you need them to, as we often replace fully functional items for cosmetic reasons, out of a desire for more modern features, or as a part of a quest to be more energy efficient.
Are extended warranties warranted?
Extended warranties, also known as service contracts or service agreements, are sold for all types of household items, from appliances to electronics. They cover service calls and repairs for a specified time beyond the manufacturer’s standard warranty. Essentially, warranty providers (manufacturers, retailers, and outside companies) are betting that a product will be problem-free in the first years of operation, while the consumer who purchases a warranty is betting against reliability.
Warranty providers make a lot of money on extended warranties, and Consumers Union, which publishes Consumer Reports, advises against purchasing them. You will have to consider whether the cost is worth it to you; for some, it brings a much-needed peace of mind when making such a large purchase. Also, consider if it the cost outweighs the value of the item; in some cases, it may be less expensive to just replace a broken appliance than pay for insurance or a warranty.
Owning a home provides a sense of security, but the process of building towards homeownership can be overwhelming. There are obstacles that can get in the way of even the most diligent prospective buyer. For Zaharra Karungi, there were dozens of opportunities to see her dream of buying a home for herself and her daughter waylaid. But with hard work, a thoughtful lender, a baseball game, and a determined Windermere agent, Karungi is now a proud homeowner in Antioch, California.
Windermere agent James Quintero didn’t suspect he’d walk away with a new client when he attended “Windermere Real Estate Agent Appreciation Day” at an Oakland Athletics baseball game earlier this year. But that’s exactly what happened when he ran into mortgage lender Bret Henly who told him about someone special he was working with by the name of Zaharra Karungi.
Karungi’s pathway to homeownership was a winding one. Arriving from Uganda at the age of 25 with the goal of studying to become a nurse, Karungi began her time in the United States with next to nothing. A generous friend allowed her to stay in their walk-in closet for eight months, but Karungi brought with her little more than a few changes of clothes and basic necessities. While studying for her nursing degree, Karungi babysat and worked odd jobs to afford her continuing education, finally emerging as a certified vocational nurse in 2013. Now a single mother with a precocious 10-month-old daughter named Victoria, Karungi was in search of the next step of security in pursuing her American Dream: owning a home.
Finding herself frustrated with the agent she’d been working with, and outbid on multiple homes, Karungi was connected with Windermere agent James Quintero with the assistance of Henly. After attending an open house at an Antioch, CA, condo, Quintero helped Karungi make a well-constructed offer to the sellers. Despite two other offers, her bid was chosen. At Quintero’s behest, the sellers took extra care to ensure the home was unimpeachably safe for a 10-month-old like Victoria.
On August 9 of this year, Karungi received the keys to her new two-bedroom, two-bathroom condo – the same day that she officially gained her United States citizenship. Owning a home provides a sense of security and confidence, knowing that whatever happens, you have a refuge where you lay your head at night. For Zaharra Karungi it was a long time coming.
If you are unable to make your mortgage payments, you may be considering what to do next. One option is a short sale. Another option is foreclosure. There are many benefits to choosing a short sale over foreclosure.
Before you make a decision, make sure you know the facts. Our partner, Lambros Politis, Lead Counsel and debt settlement specialist at Ark Law Group, points out six powerful reasons to consider a short sale instead of foreclosure:
Selling your home can be a tough choice. It’s an emotion-packed decision that affects your whole family. Often homeowners feel that selling short is a catastrophe – even when it’s almost impossible to make their mortgage payments.
A short sale can be the first step to a financial freedom. The relief from getting out from under an unaffordable mortgage can be exhilarating. It really is the beginning of a new life.
Foreclosure is a far worse alternative to a short sale. If you keep hoping something will change – you’ll get a windfall or a huge raise – and it doesn’t happen, at some point you’ll have to stop paying your mortgage. When you go into default, your bank will foreclose. And that’s very bad news.
If your mortgage payments are too much for you to handle and you’re at risk of losing your home, I want you to consider these reasons for choosing a short sale.
1.In a short sale, all debts will be settled or re-negotiated.
With a foreclosure, your home will almost certainly sell for less than what you owe. Your mortgage lender then might have the right to sue you for the rest of the debt or garnish your wages to get the money you still owe. The nightmare isn’t always over just because you lost your property.
Washington State allows non-judicial foreclosure on a lien. If your lender chooses non-judicial foreclosure, they can’t collect any remaining balance from you after they auction off your home. However, if you have other liens against your property – a second mortgage, a HELOC, or other debts secured by your home – those lenders still have the right to sue you, garnish your income or take money out of your bank account.
With a short sale, we will work with your mortgage holder to get a deficiency waiver, so the balance of your debt is forgiven. We will also work with any other lender to remove their lien from the property. This has to happen or the short sale can’t proceed. Our negotiator will also try to get a better deal for you, if the lender won’t forgive the debt – such as a reduced payment plan.
As a rule, we’re able to get full settlements for 90% to 95% of our clients while negotiating a short sale.
2.Foreclosure has a bigger impact on your credit than a short sale.
If you stop making payments on your home, that’s a big deal to lenders. That’s why a foreclosure is noted in your credit report for seven years. Even if you recover financially, have a down payment saved and great income, you’re very unlikely to be able to buy a new home for at least a few years.
A short sale is also kept in your credit record for seven years – and will also lower your credit score. Following a short sale, the waiting period before you can qualify for a Fannie Mae or Freddie Mac loan is much shorter than if you go through foreclosure. And without delinquent payments, your credit score will be higher. If you’re hoping to get an FHA loan, you may qualify for consideration even sooner.
3.Foreclosure is public information.
There is some stigma to foreclosure. If the bank plans to auction off your home, they’ll put notices on your door and in your yard. Your neighbors will know you aren’t able to make your mortgage payments.
From the outside, a short sale looks like any other real estate transaction. No one needs to know. You’re in good company. As recently as March 2015, 10% of all home sales were short sales.
4.With a short sale, you may qualify for generous government cash incentives to help with relocation.
If you meet HAFA (Home Affordable Foreclosure Alternatives) requirements you may get up to $10,000 when your short sale closes. While it’s called “relocation assistance,” you can use the money for anything. To qualify, you need to be using this home as your primary residence.
Even if you don’t qualify for HAFA relocation assistance, you have other options. If you have a Fannie Mae loan, you may qualify for up to $3,000 in assistance at closing. FHA and VA lenders may offer $1,500.
Not all lenders participate in these programs. We find that our clients get this assistance in about 70% of the sales we help with.
5.You don’t have to go it alone.
When you work with a team of professionals, you know that you have smart people on your side, working to get you everything you’re eligible for. You don’t have to talk to your lender yourself – we’ll take care of it. Nothing falls through the cracks. You don’t have to be the expert. All your questions are answered.
In the end, it’s always better to know you did everything possible to get the best outcome.
6.After a short sale, you can start fresh.
This is what people tell me is the biggest benefit of a short sale. It comes back to what I said at the beginning. A foreclosure only gets rid of your mortgage payment. Other lenders will still need to be paid.
We work very hard to resolve ALL your debts when we negotiate your short sale. You can let go of that stress and move forward with the rest of your life.
Richard Eastern is a Windermere broker in Bellevue, WA and co-founder of Washington Property Solutions, a short sales negotiating company. Since 2003 he has helped more than 900 homeowners sell their homes. A Bellevue native and a University of Washington grad, Richard is an avid sports fan and a devoted Little League and basketball coach. You can learn more about Richard here or at www.washortsales.com.
Entering into debt is a concept I grew up diametrically opposed to. I was raised, like many with frugal family members, to understand that anything you couldn’t pay for on the spot was something you couldn’t afford. But as we age we learn the pathway to financial growth requires a commitment beyond what many of us can deliver up front. Building and stabilizing wealth is, for many families, tied to home ownership. To reach that initial threshold, most aspiring homeowners will need to apply for a mortgage loan. That process can be daunting, but the long-term rewards of securing your home are worth it.
Step One – Break down your budget
A major financial decision like this can’t be made lightly. Many experts recommend a 50-20-30 style plan for finances, particularly for first-time homeowners. That means 50% of your budget is committed to core, unavoidable, monthly expenses like rent, groceries, loan payments, utilities, insurance, etc. The 20% segment is savings, placed in reserve towards a general or specific future financial goal. The final 30% (at maximum) is left as a remainder for personal spending, however, is most desired. Once this is set, you’re ready to evaluate the rate at which you can repay your loan and adjust accordingly.
Step Two – Take the time to get it right
It’s exciting to be in a position to purchase your first home, but if you find the right spot and realize the funds aren’t there yet it can be a huge disappointment. That’s what makes seeking pre-approval for a loan a must – particularly if it’s your first time. Having your credit in order, along with all key financial documentation (bank statements, tax returns, debt copies, prior records of significant ownership). If your credit isn’t in a great place, it’s likely worth taking the time to amend it before applying for your mortgage loan. When you earn lower interest rates and more manageable monthly payments you’ll be thankful for your prudence.
Step Three – The bigger the down payment the better
It’s rare that first-time homebuyers have significant cash on hand, but whatever you can muster makes a difference. Typically, the greater a down payment you can muster, the lower your subsequent interest rates will be. For many, there’s only so much that’s tenable as a bulk sum up front, of course. If that fits your situation, seeking a loan insured by the Federal Housing Administration (FHA) can earn you a healthy loan for a down payment of just 3.5% of your home’s total value. To calculate the limitations of your target home’s loan options, you can input your information on the Department of Housing and Urban Development (HUD) website here.
Step Four – Stick to the plan!
After all the effort you’ll go through to secure a mortgage loan, you’ve earned the home it’s helped you purchase. That loan, like any loan, is contingent on your continued monthly payments. It can feel daunting and dispiriting after a time to continually be paying for a home you’re already living in, but maintaining your financial balance is vital. You’ll never be able to predict every expense that comes up but maintaining your budget towards paying off your mortgage loans will set you up to be more financially flexible in the future. Should you ever hope to purchase a second home or other major investments requiring of loans, having a record of consistent mortgage loan payment can help you secure far more favorable interest rates in the future.
A mortgage loan, like any loan, is a major commitment, but entering into homeownership is a massive step towards financial stability and future life-planning. With proper patience and focus, you can get the loan you need at the rate you can afford.
For many people, a home inspection is a hurdle that has to be overcome during the process of buying or selling a home. But, in fact, it can be a useful tool for buyers, sellers or anyone who plans to get the greatest possible value from their home.
Find out if the house you are selling has “issues”
When you’re selling a house, a pre-sale inspection can be particularly useful. By uncovering any potential problems your house may have, an inspection can give you an opportunity to address them before your first prospective buyer arrives.
In any market, a pre-sale inspection can give your home a competitive edge. Potential buyers are likely to find the kind of detailed information an inspection provides reassuring—and are encouraged to give your home a closer look.
Get to know a house before you buy it
A home is a major investment and, for many people, the greatest financial asset they have. With so much at stake, it makes sense to do what you can to protect your financial interest. Getting an inspection is a smart, simple way to do just that.
When you make a written offer on a home, insist that the offer provide that your contract is contingent on a home inspection conducted by a qualified inspector. You’ll have to pay for the inspection yourself, but an investment of a few hundred dollars could save you thousands of dollars and years of headaches. If you’re satisfied with the results of the inspection and are assured that the home you’re purchasing is in good shape, you can proceed with your transaction, confident that you are making a smart purchase.
When does a home inspection make sense?
In addition to routine maintenance and pre-sale inspections, there are a number of circumstances in which a home inspection could greatly benefit a homeowner. If you are not sure, here are a few simple questions to ask yourself:
· Was your home inspected when you bought it? If not, an inspection would be beneficial even if your home was a new construction at sale.
· Are you an older homeowner who plans to stay in your home? If so, it makes sense to hire a professional who can inspect difficult-to-reach areas and point out maintenance of safety issues.
· Do you have a baby on the way or small children? An inspection can alert you to any potential safety issues that could possibly affect a growing family, such as mold, lead or structural problems. If mold or lead is present, be sure to rely on technicians or labs with specialized training in dealing with these conditions.
· Are you buying a home that’s under construction? You may want to hire an inspector early on and schedule phased inspections to protect your interest and ensure that the quality of construction meets your expectations.
What doesn’t your home inspection cover?
For a variety of reasons, some homes will require special inspections that are not covered by a typical home inspection. A specialty inspection might include such items as your home’s sewer scope, septic system, geotechnical conditions (for homes perched on steep slopes or where there are concerns regarding soil stability) or underground oil storage tank. If you have any questions about whether or not your home needs a specialty inspection, talk to your real estate agent.
Hire a professional
If you decide to hire a home inspector, be sure they’re licensed in your state. They should be able to provide you with their license number, which you can use to verify their status with the appropriate government agency. It’s also helpful to ask for recommendations from friends and family members. Even among licensed and qualified home inspectors, there can be a difference in knowledge, performance and communication skills, so learn what you can before you hire a home inspector to ensure that you get the detailed inspection that you want.
What to ask your home inspector
Ask the right questions to make sure you are hiring the right professional for the job.
What does your inspection cover?
Insist that you get this information in writing. Then make sure that it’s in compliance with state requirements and includes the items you want to be inspected.
How long have you been in the business?
Ask for referrals, especially with newer inspectors.
Are you experienced in residential inspections?
Residential inspection in a unique discipline with specific challenges, so it’s important to make sure the inspector is experienced in this area.
Do you make repairs or make improvements based on inspection?
Some states and/or professional associations allow the inspector to perform repair work on problems uncovered in an inspection. If you’re considering engaging your inspector to do repairs, be sure to get referrals.
How long will the inspection take?
A typical single-family dwelling takes two to three hours.
How much will it cost?
Costs can vary depending upon a variety of things, such as the square footage, age, and foundation of the house.
What type of report will you provide and when will I get it?
Ask to see samples to make sure you understand his or her reporting style. Also, make sure the timeline works for you.
Can I be there for the inspection?
This could be a valuable learning opportunity. If your inspector refuses, this should raise a red flag.
Are you a member of a professional home inspector association? What other credentials do you hold?
Ask to see their membership ID; it provides some assurance.
Do you keep your skills up to date through continuing education?
An inspector’s interest in continuing education shows a genuine commitment to performing at the highest level. It’s especially important in older homes or homes with unique elements.