Finding a Good Home Inspector

Make sure you ask the right questions

You’ve found the house, your offer has been accepted, and funding is in place. But before you start packing, be sure you hire a professional home inspector to make sure your house doesn’t have any major defects that could cost you down the road.

Spending a few hundred dollars for a home inspection is well worth the peace of mind.
Ask these questions:
• What does the inspection cover? Make sure the inspection and the inspection report meet all applicable requirements and comply with the ASHI Standards of Practice.
• How long have you been in the profession and how many homes have you inspected? Again, ASHI Members are required to have completed at least 250 paid professional home inspections and passed two written exams that test the inspector’s knowledge.
• Are you specifically experienced in residential inspection? The answer should be yes.
• Does the inspector’s company offer to do repairs or improvements based on the inspection? The answer should always be no.
• How long will the inspection take? The average for a single inspector is two to three hours for a typical single-family house; anything less may not be enough time to do a thorough inspection.
• How much will it cost?
• Does the inspector encourage the client to attend the inspection? This is a valuable educational opportunity for you to learn about how things work around what could be your house, and the inspector may point out things that don’t quite merit a mention in the report but which you should keep an eye on.
Finally, once you’ve found an inspector you like, ask him for references, then follow up and contact those clients. Two key questions—whether they discovered any major defects after the close of escrow that the inspector missed, and whether they’d use the inspector again.

Check your Local Real Estate Probate Laws

The probate process in each state disposes of real estate once a person dies.

When a person dies, leaving behind property, that property gets distributed according to the state probate laws. Each state has different laws, so this process varies from state to state. However, there are some generalities that do exist in any probate case involving real property.

When a person dies, the property they leave behind is generally referred to as their estate. Under the probate laws in each state, probate property gets distributed either in accordance with a last will and testament, or the bylaws of intestate succession. Whenever real estate is part of an estate, these same procedures and rules apply, though, there are specific aspects of probate law that only applied to real property. Check your Local Real Estate Probate Laws

The Costs of Getting a New Home Loan

Almost every day I am asked about the anticipated costs for getting a ‘purchase money’ mortgage loan.  Sometimes with any luck, the builder, developer or seller will agree to pay at least some of these expenses for you.  But regardless of who pays them, these costs are part of the price of buying your next home, so let’s take a look at the breakdown of the mortgage loan costs.
They consist of closing costs, loan discount points and prepaid items.

1 Closing Costs: The Closing Costs are the actual expenses that the lender incurs in the origination of a new home loan. Some of the costs are related to your loan application, such as the expense of newly updated credit reports on all applicants.  Other fees are related to the house itself, such as the appraisal of the property.  Some of the other costs are payment to the lender for processing your application, such as the loan origination fee.  All these costs are lumped into a broad category called “Closing Costs.”  Unless the seller offers to pay them for you, the Closing Costs are usually paid by the buyer, and often runs between 2 and 3 percent of the total amount being borrowed.  Because different states have different fees and taxes that are a part of the Closing Costs, it’s impossible to generalize the ‘Closing Costs’ fees nationwide.  So it’s important that you talk with a reputable lender ahead of time about what Closing Costs you can expect to pay in your part of the country.  Your Realtor is always available to help you with this subject.

2 Loan Discount Points: The Loan Discount Points are, in essence, a form of prepaid interest.  One Discount Point is exactly equal to one percent of the amount being borrowed.  It is paid in cash at closing, to the lender as a form of interest.  Discount Points have the effect of lowering the stated interest rate you will pay on the loan you obtain. 
For example: a lender might offer you a 30 year fixed rate loan at 8%, with zero points, or the same loan at 7.5% with 2 Discount Points.  Because the Discount Points are considered interest, the yield to the lender is approximately the same.
So why would I want to pay points?  Sometimes new home builders or developers will offer to pay Discount Points as an incentive, or on a special sale, and sometimes employers offer to pay relocation fees in Discount Points.

3 Prepaid Items: Most Banks and other mortgage lenders will want you to set up what is called and “escrow” account.  This is nothing more than a savings account that the lender holds.  Every month you will, in addition to your regular loan payment, deposit a sum for property taxes and for home owners insurance into this account.  When a bill comes due for taxes or insurance, your lender will make the payment for you. This way the lender knows those costs are being paid and on time.  The reason that all this matters today is that, on the day of your purchase, you will be required to set up an escrow account, with about 9 months worth of taxes and about 2 months worth of insurance payments. 
In addition, you will have to pay for the first year’s insurance policy in full. 
All of these costs are called Prepaid Items, and you must pay for them yourself.
Because regulations and customs vary from state to state, the amount you need at settlement may be more or less than the amounts I have discussed here. I suggest that my clients talk to a reputable mortgage lender to get an accurate estimate of what will be needed to buy your next home. Your Realtor is always available for advise on this, and on the other matters discussed here.

How to Help Cut Your Electric Bills

When Mom used to tell you to turn out the lights, she was thinking of saving energy dollars.  Rarely have Moms words of wisdom been as fitting as they are now.  You can cut some of your lighting costs by simply switching to a different light bulb. Compact fluorescent lamps (CFLs) are much more efficient than incandescent bulbs and last six to 10 times longer, however they are a little higher in costs.

Consider the following:

Besides switching off lights, there are several other painless methods to conserve energy and save money on your electric bills.

*Plug-ins:
Look for those electronic devices, especially those with digital time and date displays that are hardly ever used, like alarm clocks, TVs and VCRs that may be in a guest room, or in the garage, and unplug them. Unplug devices used to recharge electronics/batteries when they’re not being used. Many types of transformers consume energy. Consider unplugging devices like calculators that are not in use.

*Appliances:
Wait until you can fill up your dishwasher before running it. And if you have  a heated-dry option, switch it off. Prop open the door a bit after the cycle is completed to air dry your load.
If you have an electric cook-top, turn the burners off a few minutes before the allotted cooking time. The heating element will stay hot long enough to finish the cooking without using more electricity.

*Refrigerators:
Refrigerators use more power than any other appliance in the home and deserve special attention. Although rushing out to buy a new refrigerator may not be in your budget, it is important to know that new models are more efficient and use as little as half the electricity of older units. Full refrigerators run more efficiently than ones that are only partially full. So buy more food and save some energy. Make sure the refrigerator door seals are tight. Do routine cleaning of the coils.

*Lighting:
Its obvious, but true: Turn off lights that are not being used.
Consider installing timers or photo cells on some lights. And instead of constantly nagging the kids, try occupancy/motion detector sensors that turn on and off automatically when someone enters or leaves a room.

These are just some things that can contribute to cutting overall energy costs.

Along with Spring Comes Termites

Termites are swarming right now, so it is a great time to do a self inspection of your home.  If you have them and you probably do, you will be able to spot them or their tunnels.

A suggestion:  If you are purchasing a home, insist on the building being fumigated. No matter if paper work says it was exterminated a year ago, insist on it.  Remember this process also rids the building of all other little residents. And be  sure you have a profession of your choosing inspect for damage and then fumigate.

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