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Home Inspections 101

3/19/2017

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​Upcoming Free (& non-promotional) Home Buyer Classes:

Saturday,March 25th, from 10am-1pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)
 

Saturday, April 8th, from 9am-12pm (ish)
        Marshall Community Center, conference room
        1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

​
Tuesday, April 11th , from 5pm-8pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)


If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...link on left on website
                  
Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~

Hi!   

   I've been awful recently about getting these out on time.  I apologize...  I've been trying to pack up my house too in my 'spare' time.... and I can tell you that when you live in a home for any amount of time (or 15 years) you can accumulate a LOT of stuff!  It doesn't help that I like 'stuff', so my husband and I have been having minor battles where he wants to get rid of my 'stuff' and I keep throwing it all in boxes.   Honestly, I have NO idea what is in these boxes, but all I do know is that it is 'stuff' that I want to keep.  Could I get rid of most of it?  Yeah...probably... but am I going to?  Yeah...probably not.  :-D  
Packing sucks!  now....no worries...  I'm not a TV worthy hoarder or anything, but I do have a lot of 'stuff', and most of it is paperwork.  I swear to you that I think my papers are breeding!  No...really!  I swear that I pack stuff, but I turn around and there's MORE!!  Where does it all come from?!  The only logical answer is that my papers & 'stuff', are breeding!  

This week I want to talk a bit about the weather.  I know we're all a bit sick of the rain....even me and I LIKE rain!  We've had a years worth of rain in 5 1/2 months...how crazy is that?!  With all the rain right now, I think it is a good time to talk about home inspections.  :-)  Fall, winter, and spring are great times for home inspections because of all the rain.  When it is dry it is sometimes difficult to see how the home weathers our typical weather pattern of rain and wind.  

 Inspections are an extremely important part of the home buying process, and one that shouldn't be overlooked, or taken lightly. With inspections, you need to ask some important questions, as this is your chance to request repairs....or to back out with your earnest money refunded to you if the repairs needed are to extensive, or won't be done by the seller.
    This is always a very important subject as it is one of the most important parts of the home buying process. Again....I don't care if your home is 5 minutes old, or 150 years old....GET A HOME INSPECTION! Remember, it's not the home builder you are checking out, but the work done by the contractors they have hired. The city/county inspectors who come out do NOT check for the same thing a home inspector does. One more thing... you need to be there, and your agent needs to be there too....we can't help you if we aren't there with you. A buyer's agent is always here to assist, advise, and help you!

When hiring a home inspector some good questions to ask them are:
How long have you been licensed?
    Licensing for home inspectors in the State of Washington has only has only been required since September of 2009. Many inspectors were in business, unlicensed, before that. Some inspectors took the initiative and were licensed way before that. Your inspector should be bonded, insured, and carry E&O (errors and omissions) insurance.

How long will the inspection take? How much is it?
    The average home inspection should take between 2-3 hours. The average cost is about $350-$400...now to be honest, you can get an inspection for cheaper, but sometimes you get what you pay for. Make sure your inspector is inspecting what is important to you. Remember, as a buyer, the inspector works for you...not the buyers agent, the sellers agent, or the sellers. YOU, the buyer, are hiring this contractor to perform a service for you. Ask the inspector what their inspection entails, and what is included...or not.

What does your home inspection entail? What will you do?
    A home inspector should be walking and checking the roof. A roof must have 2+ year certificate for state or government grants/loans, VA loans, and FHA loans. A home inspector should be walking around the exterior and checking the siding, and looking at the housing vents for broken/missing screens. The home inspector will also be looking at vegetation around the home, and look at the water meter on the curb for current activity.
Inside the home, the inspector will crawl the crawlspace looking for leaks, groundwater, evidence or signs of current, or past animal activity, etc. The inspector should also be checking the atticspace for signs of current or past leakage and/or mold.
    The inspector will also be looking at all water faucets and toilets for leakage, drainage, and more. The inspector should also be checking all windows, electrical outlets and the main electric box for safety hazards, vents and heating units, and more.

Do you (the inspector) have a water reader?
    Some inspectors have a water reader that reads moisture 1 inch into a surface, be it wall or floor. These are wonderful for finding such things as leaking wax seals in toilets (very common), moisture in a wall around a window that hasn't had its' weep seals cleaned, moisture in walls or flooring around such places as washer/dryers, fridges, dishwashers, showers, toilets, and bathtubs.

What paperwork will be included at this cost?
    Some inspectors will charge you extra for a FHA Dry Rot and Pest Report, or for a print out of your inspection. You will need a FHA Dry Rot Pest Report for the state loans, VA loans, and FHA loans. Make sure your cost includes a copy of this. Also, ask how the inspector will get you a copy of your inspection, in what form will it come to you, and how soon can you expect it. The average cost for a home inspection is around $350, but the cost can vary with the size of the home you are purchasing.

Some things to Remember:
    The home inspector is just that...an inspector.  She/He is not a contractor, and they are still human.  This is important since you want to make sure any requested (and agreed upon) repairs are performed by licensed contractors.  I have one right now where the seller agreed to a couple of water related repairs, but the licensed contractor came in and said in his professional opinion there was no repairs needed.  Again, the inspector is not a contractor.  The home inspector does work for YOU. You pay for the home inspection at time of service, and this is a non-refundable fee, but it is also a legal reason to back out (if you want) and get your earnest money refunded to you.
    A home inspectors job is give you a run down of the homes condition and what you can expect in the areas of maintenance, and what needs to be done for safety and/or health reasons.
Anything that is a health or safety concern, or that needs to be done by a licensed contractor is something that needs to be discussed with your buyer's agent for repair.  I know I said it above, but making sure that the requested (and agreed upon) repairs are repaired by licensed contractors is important.  Your agent should also make sure that you receive receipts for the work that was (or wasn't) done.  You also have the right to have any repairs re-inspected.  A buyer can provide quotes, or bids for repairs, but the seller has the right to hire the professional/licensed contractor that they choose....the seller does not have to hire the contractor that you spoke to.  Actually...this might be a good idea for next weeks discussion...
Both YOU and YOUR AGENT should be there at the time of the home inspection. Again, the home inspector is your employee for the day, so be sure to walk with them and learn about your potential new home. Ask questions! Take notes if you want...
    In case of a bank owned home or HUD home, make sure that the water, and all other utilities are turned on for the home inspection. Both your agent, and the inspector should be assisting with this. If the water is NOT turned on then it is outside the scope of the inspection.

On one of our upcoming topics is Buyers Due Diligence which will tie into this topic on Home inspection 
     
       Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  AND If you are looking for a real estate agent, I would love to be able to help you.                                                                       
 
    As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one.  Real Estate is not really about houses, it is about relationships.  Your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Upcoming Topics: What happens AFTER the home inspection?
Buyers Due Diligence, 
What are the 'Hidden' Costs of Buying a Home? ..... 

What if I don't have a Down Payment? .....  &....
What happens after an offer is made?

Last Week:  Signs of Spring...Open Houses!

Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home education classes?  Go to www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).


0 Comments

What is included in a Mortgage Payment?

3/5/2017

2 Comments

 
Picture
Upcoming Free (& non-promotional) Home Buyer Classes:

Saturday, March 18th, from 12pm-3pm (ish)
        Vancouver YMCA, conference room
        11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave)
Saturday,March 25th, from 10am-1pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)
Saturday, April 8th, from 9am-12pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Tuesday, April 11th , from 5pm-8pm (ish)
  Marshall Community Center, conference room
                                                                     1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)


If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...link on left on website
                  

Remember...with reservation...we will throw in lunch, or dinner!  :-)
                                  ~~~~~~~
  Happy Sunday Morning! 

 Buying a home will be the largest purchase you ever make.  The only thing that will cost your more than buying a home is having a child.  :-)  Like a child, you have to take care of your home though, and there is more to home ownership than most people realize.  
   Every month you pay bills, and your mortgage payment will most likely be your largest monthly expenditure, but what is it?  We will talk in the next week or so about how a mortgage payment works, but this week, let's talk about the five parts of a mortgage payment.  

Now...what is all in your payment?
 
   There are four parts to your mortgage payment...it is called a PITI payment.  What that means is Principal, Interest, Taxes, and Insurance.  For example, if someone's mortgage payment is $1500, the principal/insurance portion would be only $900 a month, the other $600 a month is put into an escrow account.  Out of this account comes the homeowners insurance payment once a year, the taxes are also paid from this account twice a year.  Out of this escrow account would also come the flood insurance...if someone lives in a flood plain... or at least in a 100 year flood plain, where flood insurance is required.  If someone lived in a 500 year flood plain then flood insurance would be suggested, but not required.  All of these fees are wrapped into the monthly mortgage payment.  Anytime you are using a FHA, or any government type of loan like RD (USDA), or the down payment assistance programs & grants (like Home Advantage or the NHF), these fees must be wrapped into the mortgage payment.   If you don't have a 20% down payment (like 99.9% people), then your mortgage payment will actually have FIVE PARTS with the fifth part being Mortgage Insurance. 

Mortgage Insurance vs Homeowners Insurance
 Mortgage insurance is different than home owners (sometimes called, Hazard) insurance.  In a nutshell, mortgage Insurance protects the lender in case you default on your loan, and homeowners insurance protects you & the lender in case something happens to the home....ie.. a fire, a tree falling on your home, a car driving into your home, burst pipes, etc.  
Mortgage insurance is required if a buyer has less than 20% down payment.  FHA & USDA loans require that the mortgage insurance is carried for the life of the loan.  The good news is that, as your principal loan amount goes down, the dollar amount that goes toward mortgage insurance also goes down.  If someone were to buy a home with a conventional loan (5% down payment or more), then the mortgage insurance can be removed once the home owner hits a 80% value in the home.  This can be done by payments, or as the home increases in value through market increases. 

Homeowners Insurance
   Now, please remember, you do choose your insurance company!  One of the things I suggest to clients is to contact their insurance company after they make their offer and to do a couple of things...(1) Has there been any water of fire claims in the past 3-5 years on this home?, and (2) How much would the insurance be for this home?  Average homeowners insurance is about $500-$700 a year....again, it is wrapped up into your monthly mortgage payment so it is not another extra expense.  You do get to choose your company, and many companies will give you discounts for 'bundling' your policies.  It doesn't hurt to call around for quotes.  Once you choose a company request that your insurance agent send over an 'insurance binder' over to your lender.  Once you get keys for your home, it's always a good idea to call your home insurance provider and talk to them about earthquake insurance, or umbrella coverages.  Remember that Homeowners insurance is only good for items outside your 'Custody, Care, or Control'....not maintenance items.  It's a lot like car insurance...only use it if something bad happens that you couldn't control. 


Property Taxes
  Taxes are decided by the county, and are usually paid twice a year.  You may get a copy of the tax bill, but again, it is paid by your mortgage company out of your escrow account.  I always get phone calls when these bills come out.  :-D  No worries...it is just for your records, and I encourage your phone calls!!  :-)  Please remember that 'Tax Assessed Value' is NOT market value.

Principal & Interest
   Now...your principal and interest portion of your mortgage payment.  As we know a portion of your mortgage payment every month goes toward the principal amount that your borrowed to purchase your home, and a portion goes toward the interest that the lender is charging you.  In the beginning of your loan the smaller amount goes toward principal, and the larger portion goes toward interest...this eventually switches.  We all know the wisdom of making an additional payment every year on your mortgage to reduce your loan time.  Some banks will offer to take your payment in two week portions, and make your additional payment for you.  Honestly I don't advise this.....before you think I am crazy, this is the reason why....the bank actually holds your money and makes your additional payment at the end of the year.  This isn't the best way for you, really....  I always pay between $25-$100 extra on my mortgage every month depending upon our finances that month, but apply it directly towards my principal borrowed amount.  At the end of the year I have made that extra payment directly towards my principal, which is less money I can be charged interest on!  This will shorten my loan length considerably.  In the end I actually pay MORE on the principal amount than I would have if I had just made one extra payment.  My suggestion to all my clients is to take that $20 from each paycheck and put it into that credit union far away (with no debit card or checkbook for) that is for your home repairs that are needed as a homeowner.  If you just put at least $25 per month extra toward your principal loan amount you will also be shortening your loan time.  This sounds like a lot...but really is it?  It is a trip to McD's (for my family anyhow as we have 6 people, or a couple of Starbucks- or Dutch Brothers, my preferred drink- trips a month)...but it will help you in the long run immensely. 
   So there are the 5 parts of your mortgage payment...Principal, Interest, Taxes, and Insurance...both Mortgage & Homeowners.....all tidily wrapped up into one payment every month..

  Yay!  I kept it shorter this week!  :-D  It's like going to the grocery store, and only coming out with the items you went in for!!  
   
  
     Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would be honored to be able to help you.  
 
   As always....this is just a quick overview.... please remember that your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email, text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .  ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Next Week:        What is in my Mortgage payment?  or Websites to find homes, and what status's mean
or...  Escrow Accounts (what they do, and what they are)
      
                     
Last Week:  Signs of Spring... Open Houses!
                                                                     
Have a great day, and I will talk to you soon, 
;-D 
Tracie DeMars 
Real Estate broker  
Re/Max - Van Mall 
360/ 903-3504 cell 
360/ 882-3600 fax 
www.traciedemars.com 
traciedemars@aol.com 
  
“Interested in free and non promotional home education class?  Go to www.traciedemars.com  for local upcoming home BUYER or SELLER classes, or facebook: Tracie DeMars Real Estate for my home education real estate blog.  Links for the class dates are on the left."


"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."  
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

2 Comments

    Tracie DeMars
    real estate broker with Re/Max

    I have been in real estate for about 16 years now, and I have seen the market up, down, and now going up again.  I teach the Clark County Free Community Classes for Home Buyers & Home Sellers to help buyers learn about the loan, and home buying process; and sellers to learn about the paperwork and process of selling a home.  We are volunteers, and have no affiliations so we are able to tell it like it is...with no sugarcoating.  The pros, the cons, we tell it all in a fun, engaging, direct manner that encourages class attendee interaction and involvement.  Classes are free and non-promotional and held at community locations.  Walk -ins are welcome and all are invited.  
    ​Whether you're buying or selling a home, Education should always be your first step! 
    **we now offer Home SELLER classes too, by reservation.  It is a sellers market out there, and the classes are designed to go over all the paperwork, the 'right' questions to ask, how to make sure your agent is really working for you, what a CMA (comparable market analysis) is, and what is considered a comparable home....and going over the settlement statement.  What are the fees?  What are you going to net???

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