Real Estate Information Archive

- In order to be certain that the home is worth the amount of the loan, there will be a home appraisal performed by an unbiased inspector of the lender’s choosing. 

- At the final paper-signing, the buyer is required to pay closing costs, which normally include attorney fees, surveyors, inspections, and title insurance, among other things.  Be prepared to have 2-5 percent of the purchase price for closing costs. 

- If you’d like to pay less interest over the time of your loan, you can purchase discount or mortgage points.  To learn more about this option, check out these tips from the Nerd Wallet website. 

- Earnest money is money that will be paid to the seller to show good faith of the buyer towards the home purchase.  It will be applied to your down payment. 

- When you have funds in escrow, you will have given funds to a third party to hold until they have verified that inspections, disclosures or any disputes have been resolved.  Keeping it in escrow protects your deposit before you sign the final contract to buy your new home. 

- Pre-approval is very important and differs from being pre-qualified.  If you’re pre-approved for a loan amount, you have a realistic expectation of what you can buy. 

- If your down payment is less than twenty percent of the purchase price, you will pay private mortgage insurance typically until that amount reaches twenty percent of the loan or home value. 

- Your lender will require the purchase of title insurance, which protects real estate owners and lenders against any property loss or damage for whatever reason.  Learn more about what title insurance is and what it covers from the CFPB. 
 

- If the house was built before 1978, make sure the home inspector looks for lead paint and asbestos, as both can be health hazards. 

- Have the foundation thoroughly checked if it is original to the house.  Even the most solidly-built houses can have settling, water damage or corrosion. 

- Not only are older mechanical systems likely to fail since they’re at the end of their lifespan, they are less energy-efficient.   

- Plumbing and electrical systems can be old enough that they need to be replaced; old pipes can affect water quality and worn out wiring can be a fire hazard. 

- Unsafe features that may be charming may not be up to current code.  Check for steep stairs, non-working fireplaces, and laundry chutes, especially if you have younger children. 

- Older homes are usually in established locations, and are in good school districts, as well as being close to shopping and restaurants. 

- Houses built before the 1970’s are generally sturdier, simply because the lumber used to build them was made from old growth hardwoods, something that isn’t available today. 

- The lots in areas where you find older homes are usually larger, and that may mean more maintenance, but it also means more room for playing, pet exercise, and outdoor entertaining. 

- You just don’t get the charm and character in new construction like you do in an older home, even if the styles are similar. 

- Prices of older homes are usually lower, unless there is historical significance to the house itself or to the area. 

- First, decide on whether you need round-the-clock monitoring, or if you want to keep an eye on things yourself using your smart phone. 

- Major strides have been made over the past few years with third-party monitoring systems, and many companies offer apps for your phone so that you, as well as the company, can watch over things. 

- Most monitoring companies offer a free trial period as well, some up to 30 days.  If you’re not happy, you don’t have to commit to their service and worry about extra fees if you cancel before the trial period is up.  Ask before you commit. 

- If you’re a renter, and worry about the permanent installation, most companies are offering wireless sensors and cameras that can be moved as you move. 

- For the DIYer, you or someone you know should be comfortable with setting up your system, not only the physical installation, but connecting it to your home’s internet or home management system. 

- Safewise.com ranks their favorite 24-hour, monthly fee-based systems, and gives you all their pros and cons for each company. 

- Find the self-monitoring system that will work best for you with safehome.org‘s top systems, as well as their highest-ranked third-party systems. 

- Is there an elderly person in your life that lives alone?  Consider purchasing a security system for them, and Safe Home offers their favorites for ease-of-use and cost. 

- Have your heating unit serviced by a reputable service company.  They can go over your unit thoroughly and make certain it’s ready for Winter. 

- Central heating units use the intake filter just like the AC.  Check it monthly and replace when covered with dirt and dust.  Your system will run more efficiently. 

- If you use propane, ask your provider if they will lock in the price per gallon if you pay up front for the season.  This can keep you from being hit with a surprise when your tank needs filling, and the price has unexpectedly risen. 

- Get an energy audit performed on your home. Find a professional to do this assessment, and you’ll be able to see what you can do to your home to keep the heat in and the cold out. 

- Check for cracks around doors and windows, and if possible, fill with spray insulation, which can be purchased by the can at home centers. 

- Install a smart or programmable thermostat and use the feature religiously!  There’s no reason to keep the temps inside your home on the tropical level if no one is there.   

- When you are home, keep the temps low, and wear layered clothing.  Just turning the thermostat down a few degrees can make a big difference in costs. 

- Just because it’s cold, doesn’t mean you have to turn the ceiling fan off.  Flip the toggle switch on the side so your fan is turning clockwise and keep the fan on low--it pulls the cooler air up and moves the warm air away from the ceiling. 

- Use cooking and baking to your advantage:  once the oven is turned off, if it’s safe for other family members, leave the door cracked open and use that heat to warm up the space! 

- Upgrading your furnace is a big expense, but if yours is more than fifteen years old, it may save money in the long run to have a new unit installed. 

- If you’re considering applying for a reverse mortgage, talk to a financial counselor to see if there’s another route that you can take.  Don’t wait until you’re feeling desperate and signing a contract for something you’re not sure about. 

- HECM’s are government insured if you go through an FHA-approved lender.  Find more information from the Housing and Urban Development website. 

- Doing research on the internet it great but be wary of every website that is sponsored by a financial-looking institution.  It’s best to call a person in the financial business that you trust to give you correct and accurate information. 

- Two things you should consider before you take out a reverse mortgage are whether you plan to live in your home for a long time, or if your spouse or someone else is still living with you in the home.  Investopedia has more information about reverse mortgage requirements that may make it a poor option for you, and why. 

- If you are planning on leaving the house to your heirs when you pass away, and you opt for a reverse mortgage, the heirs will be responsible for the paying back of the loan in full or 95% of the balance within six months. 

- Property taxes can be a real burden on a retired homeowner and is a reason one would consider a reverse mortgage.  Call your local municipality and find out about any programs that will assist you with paying your taxes without fear of tax liens and foreclosure. 

- Consider your health as well.  When you acquire a reverse mortgage, but at some point, become unable to care for yourself and must move in with family or into assisted living for twelve months or more, the loan will have to be repaid. 

- Wooden furniture should be kept somewhere that’s protected from temperature changes and humidity.  Unless your garage is climate-controlled, keep it in a spare room inside the house, or give it away. 

- Propane tanks should be stored outside, on a flat surface, away from anything that can spark.  If you have tanks inside your garage, and the valve begins to leak, it can be deathly.    

- Work cloths that have oily residue on them should be treated with great care, as they can spontaneously combust. The Family Handyman suggests that oily rags should be air-dried and stored inside a metal container. 

- Firewood is an attractant for pests, and as convenient as it may be to keep it close by in the garage, it’s best to keep most of it at least twenty feet from the house.  Bring in only what you’ll need for a day. 

- Paint is highly flammable, and can be rendered useless in a garage, where temperatures can be extreme.  Check for manufacturer's recommended temperatures on the can, and store accordingly. 

- Canned food should be stored at room temperature, so if you find your pantry overflowing, donate extra to a food pantry.  Keeping it in fluctuating temperatures can cause spoilage, or freezing and thawing could affect the quality of the food. 

- If you have a second refrigerator in your garage, it’s wonderful for extra food storage.  However, a fridge that isn’t manufactured to stand extreme temperatures can fail, leaving you with a mess and ruined food.  Garage kits for refrigerators can be found at hardware stores and online, and will make your extra storage more efficient. 

- In the case that you don’t have cabinet locks and cleaning supplies are easily accessed, go ahead and place them all in a small cleaning bucket or basket so you can just grab them and put them out of reach when or before guests arrive. 

- The kitchen is usually the hub when company comes, so keep little ones from under foot by putting some interactive magnets on the fridge door--there are some pretty nifty learning-type magnets available, as well as the traditional alphabet letters. 

- If you have candles burning, make sure they are far from the reach of any age child, and in a prominent place so that they’re always in sight of you or another adult. 

- Check blinds and drapes for long cords--either drape them over the tops of the blinds or purchase cord holders to keep them up and out of reach. 

- For homes with stairs, purchase or borrow a latching safety gate to prevent little ones from wandering up the steps. 

- Ask everyone to keep the toilet lid down, or close the bathroom door when they go in and out.  If you ask them, they’ll be more conscious of it, and oblige. 

- In case you have a cozy fire burning, at least have a screen set up in front of the fireplace door as a barrier in case a little one stumbles while they’re walking nearby. 

- Houseplants can be tempting to a little explorer, but some plants can make us sick if ingested.  Do a bit of research, and if yours are in that category, give them a temporary home out of the way. 

- Keep an eye on yard sales or thrift stores for age-appropriate toys and games in good condition.  Clean them up, and place them in a basket or on a game table in the living area; kids love “new” toys. 

- Have someone get down on all fours on the floor and look for hazardous things that could be interesting to a child, and make the temporary changes you need to so your littlest guests will be safe. 

- Your listing agent will provide a form for you to fill out, answering questions with either yes, no or I don’t know about different aspects of the house.  This form should be filled out truthfully and to the best of your knowledge. 

- Items that most states ask you to disclose to the buyer:  lead paint or asbestos, previous repairs or additions, mold or water damage, pest issues, drainage problems, foundation cracks, problems with HVAC and other appliances, and if the roof is leaky. 

- If you think there might be a problem, say possible mold in the crawlspace, have an inspector come and have a look.  It’s better to be safe than sorry here. 

- While you’re going over the disclosure form, if you’re not sure if you should report something, report it anyway.  It’s best to err on the side of caution. 

- Have the disclosure ready before you’ve accepted an offer for your own protection. 

- Your listing agent will be aware of all government disclosure requirements--federal, state, and local--so be prepared to report all that these laws ask of you. 

- Once you receive the disclosure statement, go over it carefully and ask questions if you’re not sure about anything listed, because you must sign the disclosure. 

- The extra expense of having an official inspection done on the house is vital to this part of the sale.  Have the disclosure form information with you when you meet the inspector at the house, so you can go over the problem places with a pro. 

- In the case of any additions to the home, check the local government building permit and zoning information to make sure the addition was done the legal way by licensed people. 

- If you have any issues with the seller’s answers on the disclosure statement, and don’t want to make the repairs, and can’t come to an agreement with the seller, it may be best to walk away and look for another house. 

- Once you are satisfied with the disclosure and have the peace of mind that the sale should go through, sign off on the disclosure.