Buying a Home
Buying a home can be one of the most significant investments in someone’s life. Not only are you choosing your dwelling and the place in which you will bring up your family, you are most likely investing a large portion of your assets into this venture.
The more prepared you are at the outset, the less overwhelming and chaotic the buying process will be. The goal of this page is to provide you with detailed information to assist you in making an intelligent and informed decision. Remember, if you have any questions about the process, we’re only a phone call or email away!
What do you qualify for?
The first step in the home-buying process is to contact a qualified mortgage representative to find out what exactly you can qualify for.
Apply for a Mortgage!
As you start shopping for a home loan, your first question to each lender will probably be, “What’s your interest rate? How much are you charging?” Interest rates are usually expressed as an annual percentage of the amount borrowed. If you borrowed $120,000 at 10% interest, you’d owe interest of $12,000 for the first year. With most mortgage plans, you’d pay it at the rate of $1,000 a month. You would also send in something each month to reduce the principal debt you owe – and the next month, you’d owe a bit less interest.
When your grandparents bought their home (putting at least half the purchase price down, by the way), their interest rate was probably around 4 or 5%. Rates stayed the same for years at a time. Then in the years following World War II, things became more turbulent. As economic changes sped up, rates began to change several times a year. By the l980s, lenders were setting new rates on mortgage loans as often as once a week – and they still do today. When inflation hit a high in the ’80s, some mortgage loans carried interest rates as high as 17% – and those who absolutely needed to buy paid that much.
Rates dropped gradually through the 1990s and by 2000 had reached their lowest rates in decades. Continuing into the millennium, home buyers appear to have the most favorable conditions for mortgage borrowing since their grandparents’ days – and without 50% down payments either.
Inspections are designed to help you understand the overall condition of a property, potentially saving you considerable time with the purchase process and hundreds or thousands of dollars in repairs. Some of the inspections which may be required or recommended by your real estate professional are:
Lead Paint Inspection
Painted surfaces of a home can be evaluated to determine the presence of lead paint. Homes that were constructed before 1978 may contain lead-based paint. Lead exposure can be harmful to young children and babies. Children with lead in their bodies can suffer from damage to the brain and nervous system, behavior, and learning problems, slowed growth, hearing problems, and headaches.
On-Site Waste System (SeptiChekTM) Evaluation
SeptiChekTM is an evaluation performed by an on-site waste management professional. It involves accessing the cover of the septic tank to examine the fluid level inside the septic tank. The tank is then pumped to check the condition of the tank and its baffles. The leaching field is probed to check the level of sub-surface liquid waste (effluent). This test alerts the buyer to a wide range of potentially costly septic system repairs or failures. The SeptiChekTM evaluation provides more reliable information on potential problems than a septic dye test.
Stucco Siding Inspection
There are two types of stucco siding to be aware of: cement-based “traditional” stucco and synthetic stucco. An inspection of the siding’s application according to the manufacturer’s installation specifications is recommended. Synthetic stucco siding is commonly referred to as Exterior Insulated Finish System (EIFS).
- In considering a home with a stucco exterior, we recommend an inspection be conducted to determine the condition of the siding.
- Synthetic stucco is predominately found in the Southeast, but it is present in homes in other areas of the country as well.
- Hidden structural damage has been documented in synthetic stucco homes in 34 states.
- Moisture readings are taken to determine if the system has already experienced water intrusion.
Underground Storage Tank (UST) Inspection
The most common methods for testing a UST, typically used to store oil for heating homes, are either the soil test or the vacuum test. The soil test consists of random core samples taken around the location of the tank and submitting them for lab analysis. This will determine if any product has contaminated the soil in that particular area and to what extent. The vacuum test consists of having a technician seal off and place the tank under a vacuum. Readings are periodically taken to determine whether or not the tank is losing its vacuum. With this test, immediate results are available for the buyers.
- Since USTs are predominately made of metal, they rust and corrode over time, causing hazardous materials to contaminate soil and, potentially, aquifers that supply drinking water to surrounding communities.
- The majority of UST problems occur in the northeastern states due to the older properties located there.
- Obtaining the proper inspections for a home prior to purchase is one of the best ways to make a smart purchase decision and protect your investment. The above is not meant to be an exhaustive list of all of the types of inspections that may be necessary on a particular home, but it is meant to provide general information on some of the most common types of inspections.
Obtaining the proper inspections for a home prior to purchase is one of the best ways to make a smart purchase decision and protect your investment.
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Are ready to start your Journey in Real Estate? Give me a call. I’m happy to answer all your questions.