Archives for May 2019

Back yard transformation lawn care tips

May 31, 2019 by chorton Leave a Comment

www.angieslist.com/articles/backyard-transformation-lawn-care-tips.htm

Lawns are like gardens. They are a man-made concept and like a garden, they require proper tending and care.

It comes as no surprise that there are professionals that specialize in lawns. This is because caring for turf is just as important as caring for the plants in the garden. There’s quite a bit of important information to understand how to properly care for a lawn. From proper mowing techniques, feeding and tending to the lawn throughout the seasons, here’s how to get started to improve the overall health and appearance of your lawn.

Proper mowing

During the active growing season, lawns should be mowed approximately every seven to ten days. Lawns do best when mowed dry, so allow the lawn to dry a bit after a recent rainfall or watering.

During warmer summer months and growing season, it is recommended to mow to a finished height of 3 to 4 inches. Lawns that are mowed shorter run the risk of stunted root growth as well potentially causing susceptibility to drought and pests like grubs.

Blades on the mower should be sharp. An annual blade sharpening at the beginning of the season helps to prevent the spread of disease by giving each blade of grass a nice clean cut. If disease is present in the lawn, cleaning the mower blades is a good idea. After mowing, move off the lawn. Lay the mower on its side, and spray the blades and the underside of the deck with a safe cleansing agent. Then rinse with water and allow it to dry. The mower can then be put away and is ready for the next mowing.

Mowing a lawn too short can damage a healthy lawn. (Photo courtesy of Melissa Caughey/Tilly’s Nest)

Feeding the lawn

During the growing season, lawns are fed approximately every six to eight weeks. Many lawn care companies have simplified the process with four-step applications during the growing season. Whether organic or synthetic, the schedule remains the same. If fertilizers are applied too frequently or during periods of drought, there is a risk of burning the lawn. Synthetic programs often contain weed killers. Be sure to read the labels prior to application. Some require kids and pets to remain off the lawn following application until the product can be watered in thoroughly.

Lawns can also be fed on a weekly basis via mulching grass clippings back into the lawn. Simply insert the mulching plug into the deck of the mower and mow the lawn as usual. When properly mulched, there will be no clumps of lawn clippings left in the mowing path. If the lawn grows too long between mowing, you may have to re-mow the lawn to properly incorporate and mulch in the cut grass. Mulching grass back into the lawn recycles nitrogen back into the lawn and soil.

Apply a fertilizer regularly to keep your lawn fed. (Photo courtesy of Melissa Caughey/Tilly’s Nest)

The presence of clover in the lawn is a sign of a healthy lawn, plus it is good for the lawn too. Clover is able to absorb naturally occurring nitrogen in the air and pull it into its root system, which in turn feeds the surrounding lawn. In fact, years ago, clover was included in many grass seed mixtures until grass seed companies eliminated it in the 1960s because Americans were craving golf course lawns. Clover seed for planting is readily available on shelves near grass seed products.

Clover indicates your lawn is healthy. (Photo courtesy of Melissa Caughey/Tilly’s Nest)

Common lawn diseases

Unfortunately, like all plants, lawns can be affected by disease. There are many causes including drought, stress from mowing too close and over-watering. Humidity often can exacerbate these issues. Red Thread is a common lawn disease. Areas of the lawn will take on a pink appearance. Red Thread will not kill your lawn but will continue to return and spread via contaminated mower blades. In the presence of Red Thread, a boost of nitrogen can help to push new growth and remove the disease. Be sure to bag lawn with Red Thread and dispose of it verses mulching the cuttings into the existing lawn.

Dollar Spot is a fungal disease and looks like round yellow silver dollars. Brown Patch, another fungal disease, looks just as one would imagine. It is caused from thatch in the lawn that remains wet. These two conditions can be improved with proper watering techniques. Dethatching is also helpful and avoid over fertilizing.

Lawns are susceptible to diseases, like red thread. (Photo courtesy of Melissa Caughey/Tilly’s Nest)

Dealing with moss

Moss seems to find its way into lawns where shady spots are present. Moss can be raked out and replanted with shade loving grass seed blends. However, the moss will most likely return due to shade. To fully battle moss, often trees will need to be removed or their canopies lifted to allow more sunlight to reach the soil. Another potential solution is to embrace the shade and create a perennial shade garden in this spot instead, with plantings such as hostas.

Lawn pests

In the Northeast, treatment for grubs is usually applied in June. A slow release type of product can last up to five months and work throughout the grubs’ entire lifecycle. The use of Milky Spore Disease (Bacillus popilliae) to control grubs typically takes years of regular applications to become effective. In order to be effective, it also requires warm soil temperatures. It is not effective on all types of lawn grubs

How to Stop Moles from Wrecking Your Lawn

The burrows and mounds moles create cause big problems. Learn how to get rid of moles.

Watering needs

Lawns require approximately one inch of water every 7 to 10 days. Add a rain gauge to the garden to help keep track of natural weekly rainfall. When watering an existing lawn, morning is preferred and helps to prevent disease. Water deeply, and provide one-inch of water all at once verses breaking up the one inch of watering into separate sessions.

A healthy lawn will improve the look of your landscaping. (Photo courtesy of Melissa Caughey/Tilly’s Nest)

Adjusting pH

Lawns thrive in a pH around 7. To determine the pH of your lawn you can use a soil pH test kit available from your local garden center. Garden centers and Master Gardener Programs are also often able to test the pH of your soil and recommend how to amend it. Lawn pH can be adjusted with an application of lime or sulfur depending on your lawn’s specific pH.

Winterizing the lawn

As temperature drop in the Northeast, the lawn will prepare to go dormant for its winter slumber. Regularly remove the fallen leaves from the lawn. For the final mowing of the season, mow the lawn as usual to three inches tall. Then take another inch off the top a few days later. Winterize the mower by allowing it to run dry of fuel until the following season. You can also opt to have your lawn mower serviced at this time as well as the blade sharpened. This time of year is less busy for servicing verses springtime.

Beautiful lawns are not impossible to achieve. It can take multiple growing seasons to attain the lawn of your dreams. Think of the lawn as another garden for inspiration and tending needs. For more information about lawn care contact your local garden center, Master Gardeners, landscaping professional or visit your local library for more reading resources.

www.angieslist.com/articles/backyard-transformation-lawn-care-tips.htm

20 Tips For Buying A Home

May 31, 2019 by chorton Leave a Comment

www.maxrealestateexposure.com/things-to-do-before-buying-house/

What are the most important things to do before buying a house? An excellent question is it not?

Being informed is important when you are making big financial decisions, and there are few financial decisions bigger than buying a home. Take the time to educate yourself about what you are getting into before you commit to buying any property. The following tips are here to help you get started. These 20 things to do before the purchase of a house will put you in a position for not only a smooth transaction but a pleasant first time home ownership experience.

1. Know your credit score.

Your credit score is one of the biggest factors in what your loan terms will be. Know your score before you ever try to get a loan, and take the time to repair it if it is lower than 700. A good score which leads to a low-interest rate can save you tens of thousands of dollars over the life of the loan. See how to raise your credit score to get better loan terms.

2. Have a lender pre-approve you before shopping.

What to do before buying a house includes getting pre-approved. In fact, it is one of the most important parts of the home buying process!Pre-approval means you should be able to get the loan as long as nothing changes about your financial situation or your credit score.

A pre-approval letter also helps when you want to compete with another buyer for a home you love. One of the first things most sellers are going to ask their agent when receiving an offer is how qualified the buyer is to purchase. Sellers want to feel comfortable knowing the buyer is not going to get turned down for the loan. A home buyer should understand there is a difference between a mortgage pre-approval and a pre-qualification. To get pre-approved lenders will verify employment, income, and credit. Often this is not the case with a pre-qualification.

3. Shop the lender.

While getting pre-approved for a mortgage is a significant step for a first-time buyer so is shopping for the best deal possible. You will probably be paying the mortgage for a while so getting the lowest mortgage rate should be one of your prime considerations. Be sure to look at the annual percentage rate you are paying (commonly referred to as the APR) so you can compare apples to apples. With some loans, you may be paying more points or have higher closing costs than others. So when you are shopping for the best mortgage possible, don’t just look at the rate but the whole package.

4. Know every expense.

There are a lot of fees that come with a home purchase above and beyond the mortgage. Insurance, repairs, association fees, property taxes – you should have the income and the budget to handle all of these things if they are relevant to your purchase. Real Estate agents talk all the time about additional expenses to consider when buying a home. The article covers seven costs buyers often forget about. You should also have some savings to cover emergencies with the home.

5. Know what you want.

Do you want a home or a condo? For many first time home buyers, this is one of the first dilemmas they will try to solve. In fact, many buyers will look at both because they can’t make up their mind. To make sound decisions, you should know the pros and cons of a condo vs. a house. More buyers will end up disappointed when picking a condo because they did not understand the ramifications of how restrictive they can be or how quickly fees can change. The appeal, of course, is usually for those buyers who do not have time for home maintenance.

After the excitement of buying the home passes, you will have to live in it for years. Make sure you are shopping for a home that will meet your needs and your lifestyle. More space is not always better. Lawns require upkeep. Being close to the things you like may wind up being more important than you realize. Understand you are not just buying a home but a location as well. One of the key considerations that many buyers miss when purchasing a home is knowing how to pick a neighborhood they will love. Often first time buyers focus too much on the house and not enough on the neighborhood.

6. Work with a skilled Realtor that knows your area.

Every neighborhood has its unique qualities that you want to be aware of before you buy. An agent that is well-informed about the area will also know what homes there are worth, which will help you avoid overpaying for a property. Here is an example of my real estate agents Ashland MAcommunity guide. It should be pretty clear from those who are reading that I understand what Ashland has to offer from both a housing and community perspective. You want a real estate agent who knows their stuff locally!

Make sure you interview several different buyers real estate agents. Choose someone that is full time working in the business every day and has a recent history of successful sales. The better the real estate agent knows the area, the better equipped they will be in understanding the differences in market value from one property to the next.

7. Understand the actual value of any property you are buying.

Working with a real estate agent that understands market values in your area is critical if you want to avoid overpaying for your house. In addition to the actual purchase price, there are other fees like appraisal and inspections that can cost you more when you don’t understand the value of the home. Sellers and banks may not be flexible should you ask about adjusting the price later, either.

8. Buy what you are comfortable paying for.

You may be cleared for a loan that is far above what you are comfortable paying for. Lean on the side of caution and mortgage only as much money as you are comfortable with. There are a lot of home buyers who will mortgage themselves to the hilt only to find out later they are a slave to their home. Unless you want to be eating spaghetti dinners at home, every weekend don’t stretch beyond your means.

9. Verify all information in the listing.

You need to verify that all the information given about the home is right. Sometimes real estate agents put things in the listing that they may not have verified or may just not be aware of the facts. Some of the more common issues that can crop up in a real estate transaction are understanding what stays with a home and what doesn’t. Many buyers, sellers, and even some real estate agents do not know what is considered a fixture and what is personal property.

10. Try to see yourself in the home.

Sometimes when you view a home, it will be filled to the brim with the current owner’s things. Learning to see past the clutter to the potential of the home for you may allow you to find better deals than you would otherwise. This is why real estate agents often recommend to seller clients to clear all the clutter before listing their home for sale. Cluttered homes can sell for less money when those with a lack of vision can’t see past it.

11. Use a reputable home inspector.

Find a home inspector that is a part of the American Society of Home Inspectors, or someone your real estate agent knows and trusts. You want someone who knows what he or she is doing and is not motivated to miss issues to encourage a sale. It is also advisable to find your inspector if you do not know your real estate agent well. The last thing you need is a real estate agent recommending you use their favorite inspector because he is not that thorough. While most real estate agents are honest people, there are always a few bad apples in any industry you need to be on the lookout for.

12. Make sure all renovations are up to code.

If a renovation was done without a permit, it might not have been done right. No permit means that the work was not reviewed by an inspector, something you do not want in your new home. You might be wondering why a seller would bother not getting a permit for work done on their home. There are usually three reasons for this:

By obtaining a permit for an addition, you will pay more money in taxes because your assessed value will go up with a larger home.

It costs money to get permits. When you put on an addition, you are typically paying for permits for electrical, plumbing, and the general building inspector. Many owners just don’t want to bother paying the fees.

Pure laziness. This is such a sad excuse, but that is what happens with some people who don’t want to take the time out of their day getting permits for work.

Buying a home without necessary building permits will become your issue in the future when you go to sell. It is advisable that you ask the seller to get the permits taken care of before you buy the home.

13. Be sure you understand any HOA that you will be part of.

Some homes are part of a homeowner association. All condominiums also have HOAs. These organizations are mandatory if you live in the area, so you will have to pay dues and rely on the association to take care of certain things, like maintenance of common areas. Some homeowners associations are great, some are not. Know what you are getting yourself into before purchasing in a neighborhood with an HOA. One of the best ways to find out is by asking a few of the people who already live there.

14. Look for any water-related problems.

A home in good condition will keep water where it belongs. Exterior moisture should not be making its way inside. Water flowing through the pipes should be staying in those pipes. Any precipitation that falls on and around the property should be directed towards safe areas, like away from your foundation. Your roof should be functioning as intended. Buying somebody’s water issues is not what you want. Water issues have a direct correlation to market value, as well as marketability.

15. Have a professional look for the presence of asbestos, mold, and radon.

Asbestos was a major building material up until around 1977. Before you buy a home, you should be aware of the presence of asbestos, because it can drive up the cost of repairs and renovations while driving down the resale value. If you are planning on doing any repair work yourself, it is especially important that you know of asbestos and takes proper precautions if it is present.

Mold is one of the scariest issues with home buyers today and with good reason as it can cause health problems. If you have any respiratory problems, the presence of mold in a home can make them far worse. Mold is something that can be fixed when buying a homejust know what you are getting yourself into. Any mold remediation that is necessary should be taken care of by the seller.

Radon is an invisible, odorless gas that can be found both in the air and the water. Getting rid of mold in the air is easy and rather inexpensive. Removing radon from water, on the other hand, is much more expensive. On average, the cost to remove radon from the air is around $1000-1300 depending on where you live. Removing radon from water is more like $4000-$7000.

16. Make sure the electrical system is up to par.

Current building codes require modern electrical wiring. Most homes built before the 1930s are not up to standard unless they have been renovated. These old homes use knob and tube wiring, which can be expensive to bring up to code. Keep in mind that many lenders and insurance companies will not work with a buyer if the home has knob and tube wiring due to the hazards it creates.

17. Know your plan for furniture.

If you have furniture you like, you will want to bring it with you. Make sure your new home can accommodate it. Or, if you plan on buying new furniture, you want purchase a home at a price that leaves you with enough left over to furnish it. This relates back to item #8 – understand there will be additional expenses with owning a home.

18. Don’t stress the wall colors and carpet condition.

Many buyers don’t have a vision when looking at homes. As crazy as it sounds there are customers who will turn down a home that meets all the criteria they are looking for because they can’t see past the ugly mauve carpeting and the purple and green wall colors.

This is a mistake I see quite a bit. One of the easiest things to change about a home is the color of the walls. Paint is inexpensive and can be applied by you after you buy. The same holds true for carpets. While it is always smart for a seller to spend the money to neutralize a home before it goes on the market that doesn’t mean you should pass on it!

19. Don’t do anything to affect your financial situation.

Your pre-approval is based on the information given at the time of your application. Any changes, like getting a different job or taking out a car loan, can result in denial of the loan request when you go to purchase a house.

While I like to educate all of my buyers on making large purchases while buying a home there are many who do not. Making a large purchase is not a prudent thing to do when buying a home. This is one of the primary reasons buyers can be denied a mortgage after being pre-approved. This is not a pleasant experience!

20. Know the potential growth of your investment.

Buying a fixer-upper in an area that is growing more popular offers the possibility of an increase in the value of your home. In contrast, buying the nicest house in the area may not have much of an upside.

Consult with your real estate agent and ask them their opinion on the prospects for profit if the general area continues to rise in value. Will the home lag the market or be a stalwart? If the return on investment is necessary, this is surely something you should find out.

As you can see, knowing what to do before buying a house is critical.

Additional Helpful Home Buying Articles

How to buy a home from start to finish via Raleigh Realty.
What kind of home work with what mortgages via Luke Skar at Behance.
10 big mistakes home buyers make via Xavier De Buck.
How to purchase your first house via Great Colorado Homes.

Use these additional resources to make sound decisions when buying a home. I hope these 20 things to do before the purchase of a house have been helpful in understanding purchasing your first home!

www.maxrealestateexposure.com/things-to-do-before-buying-house/

Preparing to Sell

7 Reasons to Work With a REALTOR®

May 29, 2019 by chorton Leave a Comment

https://magazine.realtor/sales-and-marketing/handouts-for-customers/for-buyers/7-reasons-to-work-with-a-realtor

REALTORS® aren’t just agents. They’re professional members of the National Association of REALTORS® and subscribe to its strict code of ethics. This is the REALTOR® difference for home buyers:

Ethical treatment. Every REALTOR® must adhere to a strict code of ethics, which is based on professionalism and protection of the public. As a REALTOR®’s client, you can expect honest and ethical treatment in all transaction-related matters. The first obligation is to you, the client.
An expert guide. Buying a home usually requires dozens of forms, reports, disclosures, and other technical documents. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes. Also, there’s a lot of jargon involved, so you want to work with a professional who can speak the language.
Objective information and opinions. REALTORS® can provide local information on utilities, zoning, schools, and more. They also have objective information about each property. REALTORs® can use that data to help you determine if the property has what you need. By understanding both your needs and search area, they can also point out neighborhoods you don’t know much about but that might suit your needs better than you’d thought.
Expanded search power. Sometimes properties are available but not actively advertised. A REALTOR® can help you find opportunities not listed on home search sites and can help you avoid out-of-date listings that might be showing up as available online but are no longer on the market.
Negotiation knowledge. There are many factors up for discussion in a deal. A REALTOR® will look at every angle from your perspective, including crafting a purchase agreement that allows enough time for you to complete inspections and investigations of the property before you are bound to complete the purchase.
Up-to-date experience. Most people buy only a few homes in their lifetime, usually with quite a few years in between each purchase. Even if you’ve done it before, laws and regulations change. REALTORS® handle hundreds of transactions over the course of their career.
Your rock during emotional moments. A home is so much more than four walls and a roof. And for most people, property represents the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you.

https://magazine.realtor/sales-and-marketing/handouts-for-customers/for-buyers/7-reasons-to-work-with-a-realtor

How to Prepare for a Home Inspection When Selling Your House

May 28, 2019 by chorton Leave a Comment

www.greatcoloradohomes.com/blog/how-to-prepare-for-a-home-inspection-when-selling-your-house1.html

Here’s a scary scenario. Imagine you’ve been busy preparing your home to sell for months. You’ve been working diligently with your REALTOR, home stager, mortgage lender, and contractor to get everything perfect so that you can sell your home for the most money and move on to your next home. With eager anticipation, you wait for a good offer while your home is on the market and then, you get a great offer!

The excitement is exhilarating. You start thinking about the money that you will make off of your home sale and begin shopping online for your next home. Then, you get an email from your REALTOR showing 9 major items that the home inspector found while examining your property. Your buyers want all these items fixed before they will buy your home, or the deal is dead. This scenario happens all too often in real estate.

This is an easy situation to avoid though. You need to personally do a full home inspection yourself to make sure that you are aware of the potential issues that will come up on an inspection report when selling your home. This will keep you from the ultimate shock of your buyer’s repair requests. You can also hire a home inspector to check out these items for you.

Here’s a list of the top 20 items to check, before the home inspection, to sell your home.

(Each item is explained in more detail below.)

20 Items to Check Before A Home Inspection

Exterior

1.) Windows/Screens: If there are any cracked/broken windows, damaged or missing screens, they may be written up in the report. Don’t panic. Just repair or replace what you choose in order to keep it off the report. If any double glass panels are “fogged” due to the seal being broken, it will probably be noted as well.

2.) Peeling Paint: Paint doesn’t last forever. It’s important to identify if your home needs new exterior paint before selling. Look for cracked, chipping, or bubbling paint around the exterior of the home, and areas where moisture builds up.

3.) Cracked Caulk: Caulking is important to seal a home from extreme weather conditions. For this reason, many home inspectors will look for cracked caulking around doors, windows, and water areas. This is an easy one to fix. Just purchase some high-grade caulking that fits the application needed and take care of it before the inspector shows up.

4.) Siding/Trim: Check for any loose boards that need to be refastened or replaced before a home inspection. If replacing exterior siding, be sure to match it to the original color and texture to leave a uniform look.

5.) Decks & Fences: Check for boards that need to be replaced, and see if any railing is loose. Check the framing of the fence for loose panels, and secure them back in place as needed.

6.) Positive Drainage: Make sure there is nowhere directly around the outside of the house that rainwater could flow TOWARD the house. Water should do just the opposite for the first 3 feet. This might mean a little shovel work. Also, make sure that downspouts pour 3’ away from the house or into a tray that does the same.

7.) Gutters: If the gutters are in need of cleaning, that may end up on the report. It’s best to clean the gutters before listing your home for sale. This is particularly important if you have a two-story home that overlooks gutters from the upper level windows. Clean gutters send a message to the buyers that the home has been well maintained. It’s an easy chore to knock out.

8.) Roof: A bad report can be at the top of the list of things buyers fear. You could be proactive and ask your agent to have a roofer give you an estimate on minor repairs (a tune-up). If you decide to do the repairs, you can then ask for a “Roof Certificate”. This will help put the buyers at ease.

9.) Air Conditioner: The unit on the outside of the house should be free of leaves and bushes to allow it to cool properly. Simply clean the area around the outside units to ensure that they are not obstructed by debris.

10.) Garage Door: Do a simple test. Open the door, have someone hit the button to close it, then wave your foot in the path of the infrared beam (electric eye path near the ground). It should stop then reverse the door back to open position. Next, repeat this -except instead of waving your foot, grab the door with both hands and make it stop. It should offer some push against you then reverse back to open position. The inspector will most likely perform both of these tests.

Interior

11.) Heating/Cooling/ Water Heater: If you’re located in Colorado Springs, check if all these items have an orange sticker on them from Pikes Peak Regional Building Department. It should have a date of their inspection on it. This is an important item and will be red flagged by the inspector. If you are missing one and the item has been properly installed, it’s easy to remedy. Call PPRBD at 719-327-2880 to schedule an inspection; there is a relatively small fee. If it passes, you will get the orange tag by the inspector right then. If it fails, you can ask your agent to help you find a licensed contractor to make repairs/changes. The inspector will turn on both of these systems just to note if they run. Remember to always replace the furnace filter, no matter what month it is.

12.) Showers/Tub Surrounds: These often get written up for cracks in the grout, or caulked joints. This can easily be fixed ahead of time if you are handy. Just match the grout color and texture and re-grout the damaged areas to make the tile look new again.

13.) Ceiling Fans: Most home inspectors will test every ceiling fan in the home to make sure that they all work properly. Be sure that you replace any broken fans before listing your home for sale.

14.) Light Bulbs: Replace any that don’t work. Yes, they will actually check all lights (not lamps).

15.) Electrical: For about $10, you can get an outlet tester at any home improvement store. This will inform you of any outlets that will fail the inspector’s test (yes, they test every single one, inside and out). Some of these testers have a button to check GFI (ground fault interrupter) outlets. GFI outlets are usually located at wet areas: garage, exterior, baths, kitchen, and laundry depending upon the year built, because of changing codes. These outlets can also be protected by one device:

either a GFCI (ground fault circuit interrupter) outlet or
circuit breaker located in your main electrical panel.

Speaking of the panel, make sure it’s easily accessible. All switches, outlets and junction boxes must have cover plates without cracks. There can be no exposed “Romex” (home in-wall wire). It must be in a metal or plastic conduit.

16.) Plumbing: Fill all sinks halfway, then pull the plug to see if they drain normally. If slow, it might just need the P-Trap to be cleaned. Check in cabinets, under all sinks for any moisture on the bottom, supply lines or valves (use a dry paper towel and check by wiping).

17.) Toilets: All toilets will be flushed and noted. If there is a leaking sound before flushing, it’s probably the flapper valve. These cost $5-12 and need no tools to install. Toilets will also be checked for secure mounting (they shouldn’t move).

18.) Safety Detectors: There are 2 types – A Carbon Monoxide detector is required within 15’ of any bedroom, and at least one per level of the house. The Smoke detector is required inside each bedroom, in the hallway of bedrooms, and at least one on every level. It’s a good idea to replace batteries and push the test button (earplugs anyone?).

19.) Stairs: The balustrade (entire baluster system) will be checked for sturdiness. If any of it is loose, you might want to have that repaired before inspection.

20.) Kitchen Appliances: The inspector will run the dishwasher through its cycles, turn on all range/cooktop burners, oven, vent fan & light and if included in the sale, check all functions of the refrigerator. Repair or replace any appliances as needed.

A Few Extra Items to Be Aware Of:

Radon, Mold, Meth, etc: There are several possible tests beyond the home inspection that your buyers may want to have performed. In Colorado Springs, radon tests are very common, while the other two mentioned are rarely requested.

Windows: All windows will be opened, closed and re-locked. Hard movement or failure to lock will be noted. Some of this can easily be improved by cleaning tracks/guides and using a clear spray silicone from a hardware store.

Interior- General: The inspector will note each room for things like moisture stains, drywall cracks, loose flooring, or uneven floors.

If you feel that this list is too daunting of a task to cover, we recommend that you hire a home inspector to check everything for you, before you list your house for sale. This will cut down on any surprises. To give you an idea of what a home inspector typically sees during their day to day inspections.

www.greatcoloradohomes.com/blog/how-to-prepare-for-a-home-inspection-when-selling-your-house1.html

First-Time Buyers: How Much Down Payment Do You Really Need These Days?

May 22, 2019 by chorton Leave a Comment

Conventional wisdom says 20%, but you can buy your first home with much less down.

A lower down payment may be helpful, but you will pay more over the life of the loan.

For someone who is thinking of buying a first home, the idea of saving enough money for a 20% down payment can be daunting. The good news is a first-time buyer can purchase a home with as little as 3% down – and even no down payment in some cases

“The narrative that in order to buy a house in America today you need 20% down is just not true,” says Marietta Rodriguez, president and CEO NeighborWorks America, a national nonprofit focused on community development and homeownership, and a former U.S. News contributor. “There are a lot of different products that offer low down payment options.”

If you qualify for a mortgage, you may qualify for one with a lower down payment, though some options are only available to those with good credit. But you will pay more over the life of the loan. That’s partly because if you pay less upfront, your mortgage balance is higher. Another reason is if you don’t make a minimum down payment of 20%, you will usually be required to pay private mortgage insurance.

Lower Your Down Payment With Private Mortgage Insurance

PMI, as it is commonly known, protects the lender if you default on your home loan. On a conventional loan, it’s usually added to your monthly payment. For loans offered by the Department of Veterans Affairs, the U.S. Department of Agriculture and the Federal Housing Administration, mortgage insurance is handled differently.

“The less you put down, the higher the mortgage insurance is,” says Casey Fleming, author of “The Loan Guide: How to Get the Best Possible Mortgage” and a mortgage professional in the San Francisco Bay Area. “With 5% down, the mortgage insurance is quite high.”

The cost of private mortgage insurance depends on your credit score and the size of your down payment. Freddie Mac estimates the cost at $30 to $70 per month for each $100,000 borrowed. If you buy a $250,000 home with 10% down and a 30-year fixed rate of 4.5%, you’ll pay $95.63 a month in PMI (at a rate of 0.51%), in addition to the $1,140 monthly principal and interest payment (taxes and insurance are added on top of that). However, with 20% down, you’ll pay $1,013 per month for the same property.

If you need to pay PMI, you may need to consider a slightly smaller loan to allow for the bigger payment. With a conventional mortgage, you can get an appraisal and write to your lender and ask to have the PMI removed once you have more than 20% equity in the home. With FHA loans, PMI lasts for the lifetime of the loan.

“Anyone with decent credit can get a loan,” Fleming says. “The limiting factor will always be the PMI.”

If you have a choice, should you make a bigger down payment to avoid PMI? It depends on your personal circumstances. You need to make sure you have enough cash on hand for closing costs and repairs. Some lenders will require a certain level of reserves before they will grant the mortgage.

“There’s really no hard and fast rule out there,” Rodriguez says. “Inasmuch as they have a choice, and have something to put down, they can run through different scenarios.”

Save More Than Your Down Payment Amount

Even with no down payment, homebuyers still need some cash to cover closing costs and upfront costs, such as a year’s worth of taxes and insurance. Some loan programs allow buyers to use a contribution from the seller or a gift from family for closing costs and down payments, but others do not.

“That means you need to be putting money aside,” says Sandee Rains, a financial education specialist in Tampa, Florida, with the nonprofit ClearPoint Credit Counseling Solutions.

If you’re considering buying a home, it’s smart to meet with a mortgage officer or broker before you start looking at property. “Sit down with somebody who can show you what all the costs are really going to be,” Fleming says. A good mortgage broker can help you weigh your options and decide how large a down payment to aim for, as well as which loan program is the best option.

Rodriguez suggests consulting a financial advisor who can examine your financial life in its entirety. “It’s really to help you plan your financial future,” she says. “Homeownership might be only one of those goals.”

Rodriguez and Rains also recommend checking with local authorities for programs that offer assistance with down payments and closing costs. “There’s just a lot going on in communities that people aren’t aware of,” Rodriguez says.

[Read: The Guide to Making and Accepting an Offer on a Home]

Some programs provide down payment assistance as a silent second mortgage, with no payments due until the home is sold or refinanced. Other programs offer grants or forgive the loan once you live in the home for a certain amount of time. “If someone qualifies for any down payment assistance, they should go for it,” Rains says.

Here are four types of loans you can get with a low down payment, which may be especially appealing to first-time buyers:

Conventional mortgage.
Federal Housing Administration loan.
U.S. Department of Veterans Affairs.
U.S. Department of Agriculture.

A quality lender or mortgage broker will offer all these options and help you figure out which is the best fit for your situation. Some programs also set standards for the home or condo, including a maximum price and the condition of the home.

Conventional Mortgage

Fannie Mae and Freddie Mac will back loans with down payments as low as 3%. You will need solid credit to get these loans, but they will be cheaper than an FHA loan. The more you put down, the less your PMI. If your lender says it doesn’t offer those loans, you should shop around.

Federal Housing Administration Loan

The FHA has long backed loans with down payments as low as 3.5%. It accepts buyers with lower credit scores and those with thinner credit records. Buyers are required to pay a mortgage insurance premium of 1.75% of the loan amount upfront, though it can be financed. There is also a monthly mortgage insurance premium for as long as you have the loan, which averages about $70 for every $100,000 borrowed. The FHA also offers the 203(k) loan, which can be used to both buy and rehab a home at the same time.

U.S. Department of Veterans Affairs

If you served in the military, you can get a VA loan with no down payment. You’re required to pay a funding fee of 2.15% of the loan amount upfront instead of PMI, which can be financed. If you have a service-connected disability, the funding fee is waived. You still have to qualify for the loan based on income and credit, but the interest rate is likely to be lower than a conventional or FHA rate, plus there is no monthly PMI. “It’s a really good program,” Fleming says.

[Read: How Buyers Can Make the Most of a House Tour]

U.S. Department of Agriculture

The USDA guarantees loans with nothing down in rural and suburban areas to those who meet income and other qualifications, and the rates are often lower than those of conventional loans. The USDA charges an upfront mortgage insurance premium of 2% of the loan amount, which can be financed. After that, the charge is about $33 a month per $100,000 financed.

May 2019 Newsletter

May 17, 2019 by chorton Leave a Comment

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