Buyers

Buying a Home
Buying a home can be one of your most significant investments in life. Not only are you choosing your dwelling place, and the place in which you will bring up your family, you are most likely investing a large portion of your assets into this venture. The more prepared you are at the outset, the less overwhelming and chaotic the buying process will be. The goal of this page is to provide you with detailed information to assist you in making an intelligent and informed decision. Remember, if you have any questions about the process, we're only a phone call or email away! As I've noted in other places, I've been on all sides of the buying and selling process....as a Realtor, as an Appraiser and even as a Mortgage Lender. I'm sincerely interested in walking with you through this process, providing you with the Truth...the Good, the Bad and even the Ugly. I want you to Win! So let's go see some of what's in store for this part of your Journey.....

Home Inspections
Inspections are designed to help you understand the overall condition of a property, potentially saving you considerable time with the purchase process and hundreds or thousands of dollars in repairs. Some of the inspections which may be required or recommended by your real estate professional and / or Lender are:

Standard Home Inspection - The areas which may be covered include lot and grounds, roofs, exterior surfaces, garage/carport, structure, attic, basement, crawl space, electrical, heating and air conditioning systems, plumbing, fireplace/wood burning devices, and appliance condition. Remember that your inspection rights are clearly stated in the Contract For Sale and vary from jurisdiction to jurisdiction. In some cases homes can be sold "as-is" even though an inspection may take place.

Radon Inspection - Radon levels are detected and measured. The Environmental Protection Agency (EPA) estimates that between 15,000 - 22,000 deaths per year result from radon exposure, therefore they recommend that all homes be tested for radon. EPA recommends that homes containing 4.0 or more Pico Curies per liter be remedied.

Termite Inspection - A termite inspector will inspect the property for the presence of wood-destroying insects (WDI) or wood destroying organisms (WDO, i.e. fungus) and conducive conditions that exist. Inspection requirements vary by state and type of financing, if any.

Asbestos Inspection - Lab analysis will determine if asbestos fibers are present and evaluate their condition. If friable or non-friable conditions exist, buyers should seek professional assistance.

Composition Board Siding - The condition of the siding and any areas of high moisture are evaluated during this inspection. Typically, composition board siding is a paper-based product that is manufactured to replicate traditional wood siding at a fraction of the cost. Homeowners recently brought class action lawsuits against some of the larger manufacturers of this type of product. The homeowners claimed that the siding was susceptible to water penetration, which caused premature deterioration and rotting. According to the Environmental Protection Agency, some of the most commonly known manufacturers of composition board siding are Louisiana Pacific (LP), Georgia Pacific (GP), Masonite, and Weyerhaeuser.

Lead Paint Inspection - Painted surfaces of a home can be evaluated to determine the presence of lead paint. Homes that were constructed before 1978 may contain lead-based paint. Lead exposure can be harmful to young children and babies. Children with lead in their bodies can suffer from damage to the brain and nervous system, behavior and learning problems, slowed growth, hearing problems, and headaches. Lead is a real threat, so don't let your kids eat paint!

On-Site Waste System (SeptiChekTM) Evaluation - SeptiChek^TM is an evaluation performed by an on-site waste management professional. It involves accessing the cover of the septic tank to examine the fluid level inside the septic tank. The tank is then pumped to check the condition of the tank and its baffles. The leaching field is probed to check the level of sub-surface liquid waste (effluent). This test alerts the buyer to a wide range of potentially costly septic system repairs or failures. The SeptiChek^TM evaluation provides more reliable information of potential problems than a septic dye test.

Pool/Hot Tub Inspection - Determines the overall condition and operability of a pool and/or hot tub's equipment. Additionally, the condition of the pool deck will be inspected for deterioration and/or other noticeable defects.

Private Well Flow and Potability Inspection - Designed to determine whether or not a private well adequately supplies water to the house. Samples are sent to a lab for potability (drinkability) analysis. Wells and septics are a big deal to FHA. If you are going to use FHA financing, beware of homes with wells and septics as there are some conditions FHA will not accept. Some of these are the distance of the well from the property boundary line, distance from the septic and / or drainfield, proper weather protection for the well, etc. As an FHA appraiser and helping buyers, I've come across many situations where a lot of time and money would have been lost if the buyer had tried to purchase the home, going through all the monetary outlays for the buying process....only to find out at the last minute that the home would not qualify for their FHA financing. As an appraiser, being on the appraisal end, I've had to note these issues on the appraisal, knowing that it would most likely kill the deal. I always felt bad for the buyer, knowing they had their heart broken as well as having wasted hundreds of dollars on inspections, surveys, appraisals, etc. Don't be one of those Buyers, please!

Stucco Siding Inspection - There are two types of stucco siding to be aware of: cement-based "traditional" stucco and synthetic stucco. An inspection of the siding's application according to manufacturer's installation specifications is recommended. Synthetic stucco siding is commonly referred to as Exterior Insulated Finish System (EIFS).

• In considering a home with stucco exterior, we recommend an inspection be conducted to determine the condition of the siding.
• Synthetic stucco is predominately found in the Southeast but it is present in homes in other areas of the country as well.
• Hidden structural damage has been documented in synthetic stucco homes in 34 states.
• Moisture readings are taken to determine if the system has already experienced water intrusion.

Underground Storage Tank (UST) Inspection - This is another possible appraisal issue, it's an area where a UST noted on the appraisal can stop the loan process. If there is a UST it is very important that your Agent deal with it upfront and know how to communicate with the Appraiser doing the appraisal for the Lender. What and How the appraiser includes in the appraisal report is crucial to getting past this potential deal killer. Here in Florida, you'll generally find these in older homes.

The most common methods for testing a UST, typically used to store oil for heating homes, are either the soil test or vacuum test. The soil test consists of random core samples taken around the location of the tank and submitting them for lab analysis. This will determine if any product has contaminated the soil at that particular area and to what extent. The vacuum test consists of having a technician seal off and place the tank under a vacuum. Readings are periodically taken to determine whether or not the tank is losing its vacuum. With this test immediate results are available for the buyers.

• Since USTs are predominately made of metal they rust and corrode over time, causing hazardous materials to contaminate soil and potentially aquifers that supply drinking water to surrounding communities.
• The majority of UST problems occur in the northeastern states due to the older properties located there.
• Obtaining the proper inspections for a home prior to purchase is one of the best ways to make a smart purchase decision and protect your investment. The above is not meant to be an exhaustive list of all of the types of inspections that may be necessary on a particular home, but it is meant to provide general information on some of the most common types of inspections.

Obtaining the proper inspections for a home prior to purchase is one of the best ways to make a smart purchase decision and protect your investment.

Interest Rates
As you start shopping for a home loan, your first question of each lender will probably be "What's your interest rate? How much are you charging?"

Interest rates are usually expressed as an annual percentage of the amount borrowed. If you borrowed $120,000 at 10% interest, you'd owe interest of $12,000 for the first year. With most mortgage plans you'd pay it at the rate of $1,000 a month. You would also send in something each month to reduce the principal debt you owe - and the next month you'd owe a bit less interest.

When your grandparents bought their home (putting at least half the purchase price down, by the way), their interest rate was probably around 4 or 5%. Rates stayed the same for years at a time. Then in the years following World War II, things became more turbulent. As economic changes speeded up, rates began to change several times a year. By the l980s, lenders were setting new rates on mortgage loans as often as once a week - and they still do today, even on a daily or hourly basis. When inflation hit a high in the '80s, some mortgage loans carried interest rates as high as 17% - and those who absolutely needed to buy, paid that much.

Rates dropped gradually through the 1990s, and by 2000 had reached their lowest rates in decades. Continuing into the millennium, home buyers appear to have the most favorable conditions for mortgage borrowing since their grandparents' days - and without 50% down payments either.

May I vent for just a moment? A pet peeve: Agents who have no advice or even worse, poor advice for home buyers regarding their mortgage. There is lots of good advice available to help home buyers save literally tens of thousands of dollars on their mortgage....please ask me how you might do this. I want to protect the public from money-lenders by putting your hard-earned dollars in YOUR pocket where it can help you fund and find your family's dreams. I've seen the lender side of this equation as a Mortgage Broker for many years. Choose your lender wisely as it can be a many thousands, even tens of thousands of dollars win or lose, depending on your decision. Make it a Win!