home inspection

From Mortgages to Home Inspection Costs: Getting your First Home

Angela Manning Finance , , , , ,
From Mortgages to Home Inspection Costs: Getting your First Home

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The dream of owning a home is something that still motivates many Americans. Owning your own home isn’t simply about having somewhere to live for as long as you want, it is also about making what could be a profitable investment in your family’s future.

And even though younger generations of Americans have seemed more reluctant than their parents or grandparents to join the ranks of homeowners, studies have shown that the vast majority of millennials still expect to own their own home at some point in their life.

But for those who are embarking on home ownership for the first time, the process of finding and buying a first home can be intimidating. Here are some key things to remember if you are thinking of taking the plunge and becoming a homeowner.

Financial Self-Assessment

The starting point to the home-buying process is to make sure that your finances are as strong as they can be. To start with, take the time to run a credit report on yourself, and analyze the results. Doing what you can to improve your credit rating, such as paying off credit card balances, can help when it comes to taking out a mortgage, and if your credit rating is likely to take a few months to improve, then it is worth taking this time out before beginning the house buying process.

Prepare Financially

Once you’ve done a little financial housekeeping, the next step is to assess how much money you can afford to spend on a house. This includes the level of deposit you will be able to afford, and the approximate amount you will be able to pay in mortgage payments, taxes, interest and insurance, along with an allowance for future maintenance costs.

Home Inspection Costs

Another expense that you should prepare for is the cost of the home inspection. There are plenty of resources online to help you find out more about home inspections, but essentially this is a report that you have to carry out later on in the process, after you have found a home and made an offer. Some home buyers make the mistake of overlooking this home inspection cost early on and may not have funds available to compete the inspection report, so make sure you put money aside at the start.

Realtors and Mortgages

The next stage is to find a real estate agent that you feel you can work with as you start your home search. A good agent will not only work with you throughout the process, they will also help you to get in touch with the different specialists, including financial advisors and home inspectors, whose help you will need to buy your property. And it is a good idea to go through your mortgage options with a financial advisor at an early stage. A key aspect of choosing the right mortgage is to work out how much money you have to put down as a deposit, but beyond this factor, there are many types of mortgages from conventional loans to FHA loans and VA loans, and a good financial adviser will take into account your circumstances and financial history to help you find the right one.

Starting Your Search

Whether your agent is sending you potential properties, or you are doing the searching yourself, start by narrowing down the areas in which you would like to live. If you are unable to find anything suitable within that area, be prepared to expand it. Then it is simply a matter of taking the time to visit the homes you are interested in, asking as many questions as you can think of and being prepared to make further visits as required, until you have found the best home for you.

Securing Your Home

Making an offer and having it accepted is only the start of confirming the purchase. There will still be many weeks and a lot of paperwork to get through, including the home inspection report mentioned earlier, before you are able to sign contracts. Don’t forget to put some money aside to cover additional closing costs, which can often amount to as much as five percent of the sale price. You will also usually have a final chance to look around the place before you move in, to make sure that there have not been any significant changes since you made your offer. And with all that complete, you are ready to take ownership of your new home!

Buying your first home can be a stressful process, but by making sure that you plan thoroughly and leave as little as possible to chance, you can keep the stress to a minimum and achieve your dream of home ownership as quickly and smoothly as possible.

Things to keep in mind during a home inspection

Angela Manning DIY , , , ,
Things to keep in mind during a home inspection

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Want to get into your local real estate market? With prices surging across America, it’s time to get in before they start to spike.

Many choose to do this by looking for an older starter home, but they lack the foresight to be diligent on whether the owner has been keeping up with maintenance.

They don’t know what to watch out for when strolling around a property they are considering; before you know it, they buy a house which has tens of thousands of dollars worth of defects.

Lloyd Claycomb shakes his head when he hears these stories. As a leader in the Denver area construction industry for more than a generation, he knows what a sturdy home looks like.

When he buys properties to fix up, there is a long checklist he follows to be sure he isn’t throwing wads of his own cash into a flaming pit.

Below, we’ll share what goes through the head of a seasoned home buyer when they are inspecting a property.

There are crucial areas you’ll need to check, so be sure to pay attention to the following points.

1) Look for signs of water leakage

One of the biggest problems you’ll find during a home inspection involves past or present water leaks.

Often taking on the appearance of rusty brown splotches, these signs of spilled water from breached pipes or from a compromised roof may be the first sign of more serious structural damage.

As this compromises the stability of your home, the costs to fix this damage can be expensive depending on the extent of the leaks. If there are signs of these leaks everywhere, you may want to move on to another property.

2) Search for mold

Weakened walls aren’t the only problem water can cause in a home. Its presence or persistent dampness can create the ideal environment for mold.

This fungi is known for the toxic effects it can have on people exposed to this pathogen over many weeks and months.

If the problem is small, you might be able to tackle it on your own, but if it is extensive, the services of an environmental remediation company may be required, which is an expense that will add to your final bill substantially.

3) Inspect the roof

Next, get a ladder so you can assess the roof’s condition. Check the supports to see if they are straight and assess whether the shingles have aged to the point where they have begun to peel or warp.

Either of these problems mean water could find its way into the house if it hasn’t already, causing the issues described earlier in this article.

Next, see if the gutters properly channel water away from the foundation. If it flows toward the property when it rains, your basement could flood in record time during the next torrential downpour.

Use a bucket to put this system to the test. If the present gutters fail, you may have to shift the terminus location of the outlet pipes, or re-grade the land around the property to improve drainage.