Buying a Home? Don’t Forget the Inspection!

You’ve finally found the home that is just right, made an offer and it was accepted. Now you 

just wait for escrow to close, right?  Wrong!  Your work is just beginning.

Now is the time to have the home inspected, if it hasn’t been, to make sure you are aware of any possible issues in the home before it’s too late and the deed has been transferred. An independent inspector can evaluate your potential home on a structural and functional level and give you a full report, generally in under two to three hours, depending on the size of the home. This report can help you feel at ease with your purchase and alert you to any areas of concern.

If there is a swimming pool or spa or unusual home appliance or fixture, you may want to have that inspected individually by a reputable repairman in that field. Questions and concerns relating to asbestos, lead or chemicals, mold and mildew, or pests will need to be directed to an inspector licensed in those specific areas of expertise.

Generally speaking, a home inspection on a property for sale will cover the following areas:

• An evaluation of the walls, ceiling, floor, roof, firewall, windows, foundation and slab.
• Inspection of the landscaping, looking particularly at grading and drainage, although drives and walkways, fencing, trim, doors, windows, and outlets will be checked as well.
• General framing as seen in exposed beams or attics, ventilation, duct and plumbing systems, and the condition of roofing materials, plumbing and rain gutters will be noted, too. Water heaters, fireplaces and the sprinkler system should be evaluated.
• Earthquake structural safety and whether it is bolted to the foundation or needs to be to prevent major damage during earthquakes.
• The electrical sources and wiring in the home will be inspected, from circuit breakers and grounding systems to exhaust fans and receptacles.
• All appliances, including the garbage disposal, alarm system (if needed) and all smoke detectors.

Every city in San Diego County has different regulations in regards to home inspections, so it it best to use a local inspector recommended by your Realtor. If the inspection uncovers issues in the home regarding health and safety issues, a need for the roof or ventilation system to be replaced, a problem in the home’s foundation or significant drainage concerns, you will want to further explore the problem at the seller’s expense.

In some counties in California, it is customary to have the inspection done prior to the property being listed.  When you are ready to make an offer on the home you ask for the Disclosure Package that will include inspections.  Should you see something in the inspection you are concerned with, you should have an additional inspection of the item as most sellers do not include roof, chimney, pool or foundation inspections in their package unless there are major issues and they wish to sell the property “As-Is”, meaning they have disclosed everything that they can find wrong with the property and you are aware of all of it prior to buying the home.

HOME BUYER PET PEEVES

Selling your home can be a stressful and challenging process. Why would you want to make it doubly so by irritating potential buyers? Here’s what you want to avoid when putting your home on the market.

NOT BEING PREPARED

In today’s housing market, if you want your home to show well you need to be prepared. You will be competing against sellers who have hired professional staging companies to make their homes look as good as possible, so you’re doing yourself a disservice if potential buyers walk into your home and feel like they’re invading your personal space. Before opening up your home for showings, you need to thoroughly clean, remove clutter and relocate personal items. Remember – you want buyers to be able to envision themselves living in your home. Make their job easier by neutralizing spaces, getting rid of old or worn-out furniture and packing up all your personal belongings like family pictures and sports team memorabilia.

NOT HAVING THE HOME AVAILABLE

While it can certainly be an inconvenience, you need to accommodate buyers when they request a showing. This means being ready to leave at a moment’s notice, as potential buyers will likely not feel comfortable looking at a home if the seller is present. If you make it difficult for anyone to view your home, it can hurt you down the line during negotiations. Be amiable and understand you’ll be inconvenienced from time to time during the showing process.

NOT BEING REALISTIC ABOUT THE SELLING PRICE

If you haven’t done your homework and you overprice your home, you’ll likely extend the time your house is on the market by many months. You can be sure that buyers have done their homework and are aware of what comparable prices are in your neighborhood. If your home falls outside of this range, it is quite likely many potential buyers will simply overlook your home. Working with a knowledgeable agent will help ensure that your home is priced appropriately from the start.

NOT BEING HONEST ABOUT ISSUES

If you know your home has problems, it is best to be upfront about them. Whether it’s a funky smell or issues with the roof, trying to mask problems during the selling process is only going to hurt you in the end. These issues will eventually come out during the home inspection and could delay or endanger the sale and even possibly involve you in a legal battle. When it comes to any repairs that will need to be made to the home, honesty is the best policy.

NOT BEING EMOTIONALLY DETACHED

Yes, you have an emotional attachment to your home – that’s normal. But when it comes time to sell, you need to set those emotions to the side. Potential buyers may have different ideas about what they like – or don’t – about your home, and you can’t take it personally should they suggest doing away with something about the house that you love. Maintain a healthy emotional distance and let your agent handle any interactions that may be tough for you.

DEALING WITH EASEMENTS

Are you considering purchasing a home that has an easement, but you’re not sure how it will affect you? Are you worried that it’s something that could cause you problems down the line? Are you confused about what an easement even is? Here’s what you need to know.

WHAT IS AN EASEMENT?

An easement is the legal right to use someone else’s land for a specific purpose. You may see the term from time to time in listings as you search for homes. Before purchasing a home it’s essential to know about any existing easements on the property and how they may affect your usage of it. Easements can be granted to entities like utility companies or even to individuals such as your neighbors.

HOW DO YOU KNOW IF THERE IS AN EASEMENT?

Easements are usually filed with the local assessor’s office. If you do a title search for the property, the easement will show up as well. You can hire a title insurance company or a private title searcher to do this for you, or you can review the deed to the property yourself, which you can obtain from the county clerk or recorder. You can also contact the county or city’s zoning department; they will have surveys and plot maps that detail the easement. The local utility company or other entity with easement rights will also have information regarding the easement.

WHAT ARE THE TYPES OF EASEMENTS?

While there many different types of easements, here is a brief overview of the types of easements you may encounter in your home search.

* Right of way – This type of easement allows people to pass through your property, typically to a play area, park or lake. Sometimes, this can include a neighbor’s driveway if it is necessary to cross through your property in order to reach another.

* Utility easements – These easements are generally the most common and are granted to utility companies or the city. They often don’t impact your day-to-day living, and are in place simply to prevent your interference with their use.

WHAT IF THERE IS A DISPUTE OVER AN EASEMENT?

As a property owner, you may not interfere with the use of a legal easement. If you do, you could be held accountable for damages or even be taken to court. If you find that you are involved in a dispute regarding an easement, you should seek the advice of an experienced local real estate lawyer. Laws vary from location to location, so it’s essential to find out the appropriate details that are applied to your specific situation. While most legal easements are written documents, there are cases where unwritten easements can legally be created through particular circumstances, and the laws can be complex. You’ll definitely want reliable advice from someone knowledgeable that you can trust.

While easements may be a little complicated or cause confusion, they are a normal part of many real estate transactions. The most important thing you can do should you decide to purchase a property with an existing easement is to understand what it entails and abide by those determinations.

UNDERSTANDING THE STAGES OF REMODELING

Are you thinking about buying a fixer-upper? Or maybe you’re finally ready to move forward with a home remodeling project? Whatever your plans, it’s good to know what to expect before you begin.

Home remodeling projects can be complex and sometimes its seems the end is never in sight. But if you go into the process armed with knowledge, it will be much less stressful for you and your family. Here are the major stages you can expect to move through on your way to a completed project.

STAGE 1 –PLANNING

The key to a successful remodeling project is to stay organized. This means having a firm plan in place before you begin. Planning includes:

Design – Make decisions before you begin about what your project is going to be and what the details of the design are. If you are hiring professionals, they will provide architectural plans. If you are completing the project by yourself, you should at least try to sketch out your ideas onto paper so that everyone involved is on the same page before you begin.

Budget – Before you begin tearing down walls, decide what your budget for the project will be, and how you will stay within that budget. Be sure to include all the appropriate costs, such as new appliances and construction materials, and even new paint or wallpaper.

Prepare – If you’re hiring professionals, research and interview contractors. Apply for and secure any permits that are needed to complete the renovation.

STAGE 2 – DEMOLITION

Once your preparations are complete, it’s time to move on to the next phase – demolition. During this stage, you or your contractors will be ripping out anything that needs to be removed and replaced. This can include walls, ceilings, cabinets, windows and floors. If you feel comfortable doing this yourself, you can save some money. If not, leave it to the pros – especially if any areas being demolished contain asbestos or lead-based paint.

STAGE 3 – CONSTRUCTION

Depending on how large your project is, you may need to temporarily relocate during this phase of the remodel, especially if you’ll be without water or electricity for any length of time. Some of the work that is completed during this stage can include:

* Creating framing for new walls
* Adding beams to support new weight
* Putting in new doors or windows
* Installing electrical, plumbing and HVAC
* Adding insulation and hanging drywall
* Installing new flooring
* Adding finish work such as paint, wallpaper and other finishes
* Adding new exterior siding and gutters

STAGE 4 – CLEANING UP

Once construction is complete, you may think you’re finished. But wait! There’s one more important step before you’re done and that’s cleaning up. You can expect the contractors you hire to do some basic cleaning, but to make your home truly livable and beautiful again, you’ll need to get in there and really clean. This includes removing all the dust and debris that has accumulated.

Once your cleaning is complete, it’s time to move back in. This is the fun part, where the renovations you’ve been dreaming about are finally a reality. Enjoy unpacking and moving into your freshly remodeled space!

SPOTTING A SERIOUS HOME BUYER

One of the frustrations you may encounter when selling your home is dealing with people who may not be serious about buying. Perhaps they’re just testing the waters of the market or daydreaming about one day owning a home when they walk into your open house. You can save yourself a lot of annoyance by learning how to spot the serious buyers.

THEY’RE PREAPPROVED FOR A MORTGAGE

The one thing all serious buyers know is that they need to get preapproved for a mortgage before looking for a home in earnest. That preapproval from a lender is a signal to sellers that says they’re ready – and able – to move forward with an offer. They’ve taken the time to be vetted by a lender and they’re financially capable of purchasing a home. Any potential buyers who have not yet been preapproved for a mortgage should move behind those on your list who have.

THEY’RE LOOKING AT HOMES THAT MATCH THEIR WISH LIST

Perhaps a potential buyer comes along that is looking for a home in a certain price range and yours fits the bill. But you learn that they are really hoping for a home in a suburban community that is close to amenities, while your home is a rural property on the outskirts of town. If your home doesn’t hit the marks on a buyer’s wish list, it’s likely they aren’t serious about it.

THEY’RE MORE LIKELY TO BE JUDGMENTAL

Buyers who aren’t too serious about putting in an offer on your home are more likely to be polite and friendly when taking a tour. But those who are a little more reserved or point out various flaws? It’s more likely they’re the ones who are actually thinking seriously about your home. Don’t let their poker faces throw you off. Most buyers know or have been coached by their agent to refrain from displaying an emotional response to your home.

THEY RETURN FOR A SECOND OR THIRD LOOK

Those buyers who come back for a second or even a third look at your home? Those are the people who are the most interested and probably the most likely to put in an offer. Those who are just browsing will not take the time to come back for another look.

THEY MAKE POSSESSIVE COMMENTS

Seasoned real estate agents are attuned to what potential buyers are saying about your home, and there are certain types of comments that can provide clues that a buyer is serious. If they make remarks about how a piece of their furniture will fit in a room or how nice one of their rugs will look in the living room, they are already envisioning themselves living in the space.

THEY’VE BEEN LOOKING FOR AWHILE

Buyers that are at the beginning of the process looking at their first homes probably aren’t quite ready to pull the trigger and put in an offer without looking at other homes first for comparison. The further the buyer is into the process, the more likely they are serious. This is especially true if they are up against any deadlines, like the beginning of a new job or the start of the school year.

Selling your home can be an emotional and complex process, but learning to spot serious buyers can save you time and heartache in the end.

CREDIT SCORE NO-NOS

An important part of buying a house is getting your financial life in order. One reason is that the higher your credit score, the better rate you’ll secure for your mortgage. Mortgage lenders look at your credit score to determine how smart and diligent you are about managing your debt, which could indicate how disciplined you’ll be about making your mortgage payments on time.

If you’re preparing to buy a home, here are some things you’ll want to avoid that can negatively impact your credit score.

NOT CHECKING YOUR CREDIT REPORT

Preparing to buy a home means you need to check your credit report. Around 25 percent of credit reports contain errors, which can negatively impact your credit score. You can check your report for free every year. If you find any mistakes, including an address or credit card that isn’t yours, you should take the necessary steps to have the error corrected.

MAKING LATE PAYMENTS

Think it doesn’t matter whether or not you pay your bills on time? Think again. Your payment history is a significant factor in determining your credit score. The more often you make late payments, the lower your score will be. If you find yourself behind on a payment, call the customer service department. In some cases they will give you a goodwill adjustment or delete the incident from your history if it was the first time.

CLOSING AN OLD ACCOUNT

While paying off and closing an old credit card seems like it would be a good idea, it’s not advisable to do it before you apply for a mortgage. Closing old accounts can decrease your credit history while increasing how much of your available credit you’re using. Avoid closing your oldest card if at all possible.

NOT PAYING YOUR TAXES

If you rack up unpaid state and federal taxes, it can damage your credit for up to 15 years – not a great idea if you’re hoping to buy a home. In addition, tax liens that are paid remain on your report for seven years. Pay those taxes, folks.

FINANCING A MAJOR PURCHASE

If you’re getting your finances in order to buy a home, avoid using credit to finance a major purchase such as a car, appliance or vacation. Up to a third of your credit score is influenced by how much debt you carry and affects your debt-to-income utilization ratio. The more debt you take on, the lower your credit score will be.

NOT PAYING PARKING TICKETS OR LIBRARY FINES

This may come as a shock, but that $4.25 you owe the library can actually harm your credit score. And if you’re sitting on parking tickets, get those paid off as well. More and more local governments are reporting these types of unpaid fees to collection agencies, which will then show up on your credit report, negatively affecting your score.

In the end, being responsible about your purchases, making your payments on time, settling debts and being diligent about spotting errors are the best ways to make sure your credit score is as high as it can be.

BIG LUXURY ON A SMALL BUDGET

You don’t have to be a billionaire to enjoy a little luxury. With some smart choices and a bit of imagination, you can live a champagne lifestyle on a beer budget. Here are some strategies to maximize the luxuriousness of your home and life while minimizing the amount of money you spend.

FOCUS ON QUALITY, NOT QUANTITY

Living a minimal lifestyle has been popular in the media lately, whether it’s following Marie Kondo’s advice about tidying your home, or transforming your closet into a capsule wardrobe. What each of these concepts stresses is prioritizing quality over quantity. Instead of purchasing 12 trendy, discount home décor pieces that you kind of like, why not save that money and splurge on one quality, timeless piece that you really love and that you’ll use for years?

BRIGHTEN A ROOM WITH FRESH FLOWERS

Ever notice when you walk into a room that has a vase of fresh flowers, it just feels a little more special? There’s no reason you can’t have that feeling all the time. Fresh flowers can be very inexpensive – you can even gather some from your own yard. For an added bit of luxury, put them in a special pitcher or vase that you might normally only use on special occasions. There’s no reason every day can’t be a special occasion!

BUY VINTAGE FURNITURE

You can make your home look fabulous for far less money if you’re willing to buy some of your furniture secondhand. Not only will you save, you’ll likely get a higher quality item with unique character than if you spent the same amount of money in one of today’s big box retailers. Check local thrift shops, online classifieds and yard sales to score some great deals.

SPLURGE ON GOOD SHEETS

One place in your home where luxury really counts is the bedroom. But instead of splurging on a fancy duvet or bedroom furniture, use your money to invest in a good set of sheets. There’s nothing quite like slipping into bed every night wrapped up in luxurious fabric. And think of how much better you’ll sleep and feel in the morning!

USE THOSE FANCY SOAPS AND CANDLES

If you’re like many people, you’ve probably amassed a collection of fragrant soaps and candles during the years. And like most people, you’re probably saving them for company or for a special occasion. But there’s no reason to wait! Bust out those wonderful soaps and candles and use them around your house. You deserve it.

TAKE ADVANTAGE OF FREE LOCAL EVENTS

Communities across America host free events all the time. Have you ever actually attended any of them? There are so many fun activities to enjoy, from free outdoor movie nights at the park to the book club at the library. Search for free events in your area using Google and check the websites of your local library, parks and schools for fun activities happening in your area.

So there you have it! You don’t have to be rolling in cash to enjoy a little luxury in your life. Try one of these tips and you’ll be well on your way to living a more pampered and luxurious lifestyle!

IS A TOWNHOUSE RIGHT FOR YOU?

If you’re in the market for a new home but aren’t sure you want a big yard to take care of, you’ve probably considered buying a townhouse. But do you really know what you’re getting? While it may seem natural to lump apartments, condos and townhouses together, there are distinct differences between them. Here’s what you need to know to decide whether or not a townhouse is right for you.

What is a townhouse?

A townhouse is generally described as a two-to-four story building that has common walls with neighboring properties. You may also sometimes hear a townhouse referred to as a row house. Townhouses can be found in every type of community, from rural to metropolitan neighborhoods. The building is on a very small footprint, and usually contains a tiny landscaped yard. Generally speaking, living rooms and kitchens are on the first floor, while bedrooms are on the upper floors. Many townhouses also include garages in the front or back.

What is the difference between a townhouse and a condominium?

While most people think of condominiums and townhouses interchangeably, there is one distinct difference. With a condo, you own only the airspace inside the walls. But with a townhouse, you actually own the little piece of land that the house sits on. So if owning a piece of property is important to you, then opt for a townhouse over a condo.

How is maintenance handled for a townhouse?

A townhouse community often contains shared amenities, such as a pool or rec room. As a result, most townhouses require monthly payments to a Homeowner’s Association (HOA) to keep up with maintenance costs of these shared spaces. HOA fees can also cover the upkeep and maintenance of your yard and the exterior of your home.

What are the pros of a townhouse?

Some of the reasons that homeowners enjoy living in townhouses include:

* Not having to deal with upkeep of outdoor spaces, like cleaning up leaves, mowing the lawn or snow removal.

* Owning the land on which the townhouse sits.

* Having neighbors nearby, so it’s great for security and for those who want to feel like their neighbors are looking out for them, especially the elderly or those with medical issues.

* Having interior finishes that are more modern or luxurious than what you could afford in a single-family home.

* Traveling is easier with a townhouse, as security and upkeep are generally taken care of for you.

What are the cons of a townhouse?

Here are some things to consider that might make townhouse living less than ideal for you:

* Not having as much privacy as you would with a single-family home.

* Sharing walls with your neighbors on either side.

* Not having a yard if you enjoy gardening or want a big outdoor space for your kids or pets to play.

* Having less freedom with your outdoor decorating style, as you’ll need to follow the guidelines established by the HOA.

* Having no room to expand, especially if you are considering growing your family or you anticipate having an elderly parent move in.

PROS AND CONS OF BUYING A FULLY FURNISHED HOME

Are you a first time homebuyer nervous about adding the cost of furniture to your big move? Or perhaps you’re thinking of buying a vacation home, but don’t want the added expense of furnishing it? Maybe you’re a busy professional who needs to streamline the purchase process so that you can jump right into your new job? Whatever the case may be, buying a home that comes fully furnished may be just what you need.

If you’re thinking about buying a fully furnished home, here are the pros and cons you should take into consideration when making your decision.

PROS OF BUYING A FULLY FURNISHED HOME

Buying a furnished home:

* Can save you money, sometimes thousands of dollars, instead of buying brand new furniture.

* Is a great choice for first time buyers who may not have all they furniture they will need for the house.

* Is perfect for those buying a second home or vacation home and want a property that is move-in ready at closing.

* Is ideal for those who don’t like shopping for furniture.

* Can be smart for those who are short on time, such as people who have demanding jobs or families with young children.

* Can make moving in easier and faster, which is perfect for those who need to relocate quickly.

* Can save you the headache of packing up and moving all your belongings to a new location. Just pack up some suitcases with your clothes and personal belongings, and move right in!

CONS OF BUYING A FULLY FURNISHED HOME

Purchasing a home that comes with furniture:

* Means there are more details to attend to in the closing process. You will need to complete an exhaustive list of every item included in the deal, which will be part of the contract.

* Means you may need to get a separate loan for the furnishings.

* Might not be a great choice if you have very specific taste in furniture. You’ll want to make sure that the furnishings that are included in the house are to your liking.

* Can be a gamble, as you don’t know the history of the furniture. You will want to take the time to inspect every piece that comes with the house. Turn on all the lamps, look at all the couch cushions and make sure all the appliances are in good working order.

* May mean that you overpay for the furnishings you’re getting, if the seller is particularly emotionally attached to them.

* Could kill the deal if the buyer and seller cannot come to an agreement on what furnishings are included and what the selling price of those furnishings should be.

* Means that you will need to put down a larger down payment, since the total cost of the home will include the price of the furniture.

Ultimately, the decision to buy a home that is fully furnished is a personal one. You will want to determine if the amount of money you will pay for the furnishings will actually save you time and money when you move in. Take time to fully assess what you are agreeing to so you know whether you are getting a good deal. If the deal looks good and you like the idea of owning a turnkey home, it could be the perfect solution for you.

BUYING AND SELLING A HOME AT THE SAME TIME

If you’re relocating for a job, trying to move before the school year begins or even hoping to avoid making payments on two mortgages, you may find yourself in the unenviable position of buying and selling a home at the same time. While it may certainly be easier to buy a new home, move and then sell your old home, there are many instances where that just isn’t possible.

So how do you deal? This is what you should do to prepare to make sure the process goes as smoothly as possible.

Strategize your timing

If you need to buy and sell at the same time, it’s essential that you know the market in both locations. Is each market favoring buyers or sellers at this moment? You’ll need this information to strategize the selling of one property and the buying of the other. Knowing in which position you’ll have the most leverage will help you make timing decisions.

Understand your finances

Even if you plan your timing to the best of your ability, your current home may not sell before you move into your new home. It’s important to take a long and honest look at your current financial situation and come up with a plan should this scenario play out. How will you handle making two mortgage payments? Will you have enough money for the down payment on the new home if your previous home doesn’t sell first? If you’re not sure you can swing either of these financial possibilities, you may qualify for a bridge loan. This is short-term financing that is backed by the equity in the home you’re selling that can be used for the down payment of the second home.

Consider contract contingencies

While contract contingencies may not always work in your favor in a competitive market, you could find yourself in a situation where it will work for you. You can ask for a contingency in your purchase contract stipulating that the sale is contingent on selling your previous home first. If you’re buying in a seller’s market, this may cause your offer to be rejected. But if the home you are interested in buying has had difficulty selling, this may work for both parties.

Prepare for some tough decisions

Buying or selling alone can be a process fraught with anxiety and careful decision-making. Doing them at the same time means double the number of decisions – which could exponentially heighten your feelings of stress. Be aware going in that you’re going to be faced with making some tough decisions so that the anxiety doesn’t cause you to make a choice you’ll regret later. Have a plan in place should you decide you need a short-term rental. Knowing that you have a back-up plan can really diffuse some of the pressure in the moment.

Work with a trusted real estate agent

Navigating the buying and selling process can be complex, and doing them at the same time even more so. In times like these it can really benefit you to work with a trusted real estate agent. They can prepare you for what to expect, help you with decision-making, and be an ally and an advocate for you every step of the way.

HOW TO SHOP FOR A MORTGAGE

When you’re making a big purchase, like a car or a new computer, you tend to shop around for the best deal, right? While you may not realize it, you should do the same for a mortgage. After all, a home is likely the most expensive thing you will ever buy. Shopping around for a mortgage could save you thousands of dollars, yet nearly half of all homebuyers don’t compare lenders.

When you’re making a big purchase, like a car or a new computer, you tend to shop around for the best deal, right? While you may not realize it, you should do the same for a mortgage. After all, a home is likely the most expensive thing you will ever buy. Shopping around for a mortgage could save you thousands of dollars, yet nearly half of all homebuyers don’t compare lenders.

If you’re getting ready to search for a home and find a lender, here’s what you’ll need to know in order to get the best deal on a mortgage.

CHECK YOUR CREDIT

Your ability to qualify for a home loan and get a good interest rate will be largely determined by your credit score. Before shopping around for a lender, you should check your credit score so you aren’t going into the process uninformed. You should also order a copy of your credit report and check it for accuracy. If there are any mistakes, have them corrected before you apply for the loan.

ASK AROUND

So, which lenders should you approach? Don’t just rely on those who are looking to make a deal with you for a recommendation, such as your agent (though they can be a good source of information). Ask around, especially family, friends or colleagues who own homes. They can give you an honest appraisal of their mortgage lender and whether or not they would recommend them. Don’t forget that institutions other than banks can be sources for a mortgage as well, such as a credit union or labor union.

RESEARCH COSTS

Once you’ve decided which lenders you’d like to compare, you should contact them for information about the costs associated with the loan. These can include:

Rates – Ask about current mortgage interest rates, and whether the rate is adjustable or fixed. Also ask about the APR (annual percentage rate).

Points – Ask about points, which are the fees paid to the lender and are linked to the rate. You can ask for points to be quoted in monetary values so you understand what the cost will be.

Fees – Find out what fees will be incurred with the processing of your loan, including broker fees, underwriting fees and closing costs.

Down payment requirements – If less than 20 percent of the purchase price is paid upfront, you may need to purchase Private Mortgage Insurance (PMI). Ask what the cost of the PMI will be, and how it will affect your monthly payments.

NEGOTIATE

Just like many other business transactions, the fees associated with a mortgage are negotiable. If you find that one lender is willing to lower their fees or offers cash back at closing, you can use that information as a bargaining point with another lender.

GET PRE-APPROVED

Once you’ve compiled all your information and met with several lenders, you can choose which lender gives you the best deal and has the best reputation. Once you’ve decided, be sure to ask for a pre-approval letter. Getting pre-approved for you mortgage will signal to sellers that you are a serious buyer, and your offer is more likely to be accepted.

BUYING SOLO? WHAT YOU SHOULD KNOW

The number of people buying a home on their own is on the rise. Are you one of them? While it may seem daunting to purchase a property solo, it is certainly far from impossible. In fact, it could be a smart financial move if you have a steady income and plan to stay in your location for the foreseeable future.

If you’re ready to be a single homeowner, here’s what you should know to make the process as easy as possible.

BE CLEAR ABOUT WHAT YOU WANT

When searching for a home, you’ll be bombarded with choices. How many bedrooms do you need? Would you like a home office? Do you need a place to park your car? Would you like to be close to amenities, nightlife or public transportation? There are many questions to consider, so it can be especially helpful to make a list of everything you need in a home. Once you’ve gotten the basics covered, spend some time creating a wish list of things it would be nice to have, but wouldn’t be deal-breakers. This could include having a Jacuzzi tub or walk-in closets. Once you’ve gotten your lists together, you’ll be better able to refine your search and only look at homes that are a good match for you.

BUY WHAT YOU CAN AFFORD

Once you begin your home search in earnest, it’s important to stay within your budget. It can be tempting to reach a little further beyond your means, especially for a home that you love. But that love can sour quickly when you find you’re unable to pay your mortgage each month. Use an online calculator to determine just how much you can reasonably afford.

CONSIDER SAFETY AND SECURITY

While we don’t think making choices based on fear is always a great idea, it is good to consider how safe and secure your new home will be. Since you won’t always be around to check on your house, look for neighborhoods that have low crime rates. Take note of whether or not the house has a security system or the street is well lit. If safety is a big concern, consider buying a condo so that your neighbors are always close by.

THINK ABOUT THE FUTURE

You never know what life is going to throw at you, so it’s smart to think about your home’s resale value. Maybe you’ll relocate for a job or move in with a spouse and need to sell your home. If your new place is in a great school district, near popular amenities or has a stunning view, you’ll have an easier time selling down the road.

WORK WITH AN AGENT

Buying a home can be a little overwhelming, but working with a professional can help alleviate some of the stress. By partnering with an agent, you’ll have a person who can answer questions and guide you through the process. You’ll also have someone in your corner who will work with you to find a home that suits your needs. Don’t let the fear of navigating the process alone keep you from realizing your dream of owning a home. You can do it!

WHAT ARE HOME SELLERS REQUIRED TO DISCLOSE?

Are you gearing up to sell your home? Then you should know that there are certain things you are legally required to disclose to potential buyers. If you don’t, you could find yourself in legal or financial hot water. While disclosure regulations vary by state, here are some main issues you are required to tell buyers.

Lead paint

The most important disclosure you need to make – and one that is a federal law — is whether or not your home may contain lead paint. How do you know if your home has lead paint? If it was constructed before 1978, you need to have it checked by a professional and both buyer and seller must sign a disclosure. Agents are also required to provide a pamphlet from the EPA about how to deal with lead-based paint. If your home was built after 1978, you’re in the clear.

Crime or death

In some locations, sellers are required to disclose whether or not a crime or death has happened on the property. If you’re a buyer, you can even check the address for yourself at this website for a fee.

Paranormal activity

Whether or not ghosts are real is up for debate. Nevertheless, some states do require that sellers disclose any paranormal activity in the home. If you think your house is haunted, you should disclose it. Even if you think it sounds silly.

Pests

Most states require that sellers disclose if there are any infestations or problems with pests in the home. This can include mice, bats, raccoons and snakes. If your home has been treated for termites, this is also something you should be sure to tell a potential buyer.

Water damage

If you have a basement that floods or a roof that leaks, it is important that you make these issues known. Make sure to provide copies of insurance claims or receipts if water damage is an issue you’ve addressed in the past.

Toxic materials

If water has entered your home, it could lead to mold – which is another issue you need to disclose. While most homes contain mold of some kind, it is black mold that can be toxic and needs to be disclosed. This includes whether or not you’ve done mold remediation in the past. Other types of toxic materials that need to be disclosed are radon in basements and asbestos in insulation.

Disputes with neighbors

Is part of your fence on the neighbor’s property, or is their fence on yours? Have you had any disputes with neighbors over property lines? These issues should be disclosed. In addition, while it may not be required, you may want to be upfront if there are any other issues with the neighbors. This could include if they have frequent loud parties late into the night or a particularly aggressive and loud dog.

Check state regulations

Your real estate agent should be well versed in what disclosures need to be made in your state. You can also check for yourself to make sure all your bases are covered. When in doubt, honesty is generally the best policy. By disclosing all known major issues upfront, you are protecting yourself from possible litigation in the future.