Monday, April 25, 2011

Home Inspection





Congratulations!! You've chosen your dream home. What now? The next step is... to get your home inspected. This is one of the most important things you should do when you buy a home. It is your right to know that the property you're planning to purchase is in good condition and what potential issues may be pending or have recently been fixed.

A home inspection will provide you a detailed report of the state and condition of the house to the best of the home inspector's knowledge and professional scope. The report may also contain any potential issues that need to be considered. A home inspection might reveal major problems with a home as well as some minor issues that are easily corrected. Buying a house is a major decision, so you have to make sure that you are making a sound investment. 

Most people aren't trained to really check into the condition of the house, a professional home inspector can give you the information necessary to make the proper decision before you buy. An inspector will go everything in the home from the foundation to the rooftop. Here is an example of a Home Inspection Checklist, please note that additional inspections or engineering report may be required based on the findings during the home inspection:

Structural Elements 
- Construction of walls, ceilings floors roof and foundation.

Exterior Evaluation
- Wall Covering, landscaping, grading, elevation, drainage, driveways, fences, sidewalks, fascia, trim, doors, windows, lights and exterior receptacles.

Roof and Attic
- Framing, ventilation, type of roof construction, flashing and gutters. It does not include a guarantee of roof condition nor a roof certification.

Plumbing
- Identification, of pipe materials used for potable, drain, waste and vent pipes - including condition. Toilets, showers, sinks, faucets and traps. It does not include a sewer inspection.

Systems and Components.
- Water heaters, furnaces, air conditioning, duct work, chimney, fireplace and sprinklers.

Electrical
- Main panel, circuit breakers, type of wiring, grounding, exhaust fans, receptacles, ceiling fans and light fixtures.

Appliances
- Dishwasher, range and oven, built-in microwaves, garbage disposal and smoke detectors.

Garage
- Slab, walls, ceilings, vents, entry, firewall, garage door, openers, lights, receptacles, exterior, windows and roof.

A home buyer is not required by law to escort the home inspector during inspection, but you may find it educational to do so. You'll be able to ask questions about the home and its condition.

It is important to remember that no house is perfect. Every home will have some issues to investigate. When a report comes back with problems, you have the right to turn the house down. But it may be wise to negotiate with the seller to lower the asking price or ask him/her to make repairs before you purchase the home. Having your home inspected will definitely save you time and money and a lot of potential frustrations in the future.

If you need to know more about inspection or if you need a professional home inspector, please contact me for a list of reputable companies.

Monday, April 18, 2011

Thank You For Coming to our Client Appreciation Party!













I would like to thank everyone who came to our Client Appreciation Party held last April 10th, Sunday at Kincaid Outdoor Center.  The party is our way of saying THANK YOU for all the referrals, business, love and support you continuously give us.

The guests enjoyed turkey rollers, cookies and cakes provided by Costco; while the kids loved the wonderful balloon creations in different shapes and sizes by Marky, D Clown; kids and adults (Would you believe?) had their face painted by Miss Yuliya. Five Star Entertainment livened up the Sunday afternoon with music from DJ Shawn.

And of course, a Sunday afternoon with all the kids in 1 room wouldn’t be complete without the fun games and prizes.  There was the balloon game, hula hoop game, potato sack race, do-the-limbo and musical chairs. 

It was our first time to arrange a HUGE event like this. But we’re really happy that everyone had fun. All the preparations paid off when we saw that everybody was having a good time!  A million thanks to the people who made this event memorable.

Again, thanks to everyone who came.  And for those who were not able to make it, stay tuned for the next event!

Referrals are an important part of our business and we appreciate you spreading the word to all of your co-workers, friends, and family. If you know anyone interested in buying, selling, or investing in real estate please contact me.  

Monday, April 11, 2011

FHA 203(k) Loan

Are you a first time home buyer interested in buying a fixer-upper but don't have the funds to remodel it?  There are sometimes properties on the market that weren't maintained by the sellers because of lack of funds and the house was left, or is currently in poor condition. And if you want to purchase that property and do the improvements yourself, you may qualify for financing deal through FHA 203(k) loan. 

The FHA 203(k) Loan is endorsed by the federal government, designed for individuals who want to repair/renovate a damaged home so they can live in it as their primary residence. The FHA 203(k) loan lets you include the money  needed for repairs and related expenses in the loan, such as materials and labor.  For example, the home is priced at $150k, repairs are $15k, the home would have to be appraised for $165k. You can also add 10-15% contingency reserve for expenses above and beyond your repair estimates. You can also get up to six months' worth of mortgage payments included to cover the mortgage while you're renovating the home, so that you won't have to make a double housing payment.

And the good thing about the loan is, you only have to come up with 3.5% of the total home purchase price plus the repair costs. In the example above, you would need 3.5% of $165k or $5,775 as your down payment. Same FHA requirement applies like having a steady verifiable income and a good credit score.

There are two types of FHA 203(k) mortgages namely regular and streamlined (also called "modified"). Regular 203(k)s are for properties that need structural repairs; while streamlined are for those that need only non-structural repairs. Both can be used for purchase or refinance.

Regular 203(k) purchase loans can have a maximum mortgage amount of the property value + rehab costs or 110% of the expected value of the property after renovation.  For example, if you were buying a house for $150k and the expected repair costs would be $25k, you cannot avail of the loan unless you have an existing $10k in cash to finance the repair. On the other hand, the streamlined loan allows home buyers to add a maximum of $35k to the purchase price to pay for the improvements.

The Renovation Loan is great for first time home buyers who want to buy a nice starter home and don't want to use their savings and credit cards to fix it up. 

To get more information on FHA 203(k) Renovation Loan, you may visit http://www.fha-203k.com.

Monday, April 4, 2011

IMPORTANT DOCUMENTS YOU MAY NEED BEFORE DECIDING TO BUY OR SELL!!!

Before you decide on buying or selling your property, make sure that you have the following basic documents on hand.  Being prepared will save you a lot of time, you can readily start the process of buying or selling once you have these documents with you.

Documents
Buyers
Sellers
ID (e.g. driver's license, state-issued ID, passport)
Yes
Yes
Paycheck
Yes. The purchase range is determined, in part, by their income.
Yes-if they are selling short sale.
Two Months' bank account statements
Yes. The buyers have to prove that they have a regular income to pay for the mortgage.
Yes-if they are selling short sale.
Two Years' W-2 forms or tax returns
Yes. Lenders want to see a stable, long-term income.
Yes-if they are selling short sale. The sellers have to show that they are suffering from economic hardship.
Gift Letters
Yes, in case the down payment money was a gift from a relative.
No.
Quitclaim deed
Yes for married buyers who plan to own as separate property.
Yes for married sellers selling homes that they own separately or joing owners selling their interests separately.
Divorce Decree
Yes, to prove that they shouldn't be held accountable for their ex's separate debts or credit reports.
Yes, to ensure that the seller has the right to sell.
Compliance certificate
Sometimes. It depends on the state government.
Yes
Mortgage Statements
No.
Yes. The escrow holder or title company will need to use them to order pay-off demands from any mortgage holder who has to get paid before the property's title can be transferred.


Consult with your local Realtor since they are the market expert and can provide both the required listing and selling documents.  Realtors are also a valuable resource in connection with lenders, title companies, home inspectors, engineers, and contractors.  For further questions regarding specific documents and circumstances, please contact Patrick James.