Zen House Hunting

There are many stress related events in your life marriage, divorce, death, but right at the top of the list has to be preparing to buy a home.  This is especially true if you are a first time home buyer.  Still it holds true no matter how many times you have gone through the process.  If a couple fights over the TV remote, where they want to go to dinner or what movie to see, the house buying process is going to be real nerve racking.  There are some ways you might put into play that can ease the pressure of this process. 

• The first thing is to go and visit a lender.  Let him be the guy that tells you how much you can afford in a home purchase.  He or she can be the one you are mad at not each other.  This will also take some pressure off of the main breadwinner of the house, he or she will know what financial obligation is going to fall on their shoulders.
• Sit down and really talk about what you want in this house.  Each of you write down three must have things for a home to be acceptable. 
• Discuss what geographic locations are acceptable to both of you.
• Discuss what days will be set aside for house hunting.  Or will one person go and preview all of the properties first with your lists in mind?  Then when you have a short list you both go and look to make the decision.
• NO FIGHTING while this may seem it should go without saying you don't fight in front of your agent or any involved third party, it becomes embarrassing for everyone but the comfort zone may be so shattered you can no long work with the agent or the seller.  Respect is key here.
• It is also to be as neutral as possible, you want to present a united front when it comes to negotiations.  When it comes to price you want no extra information that the sellers or sellers agent can play on.
• Pick a place where you can sit quietly and not be rushed and talk about the homes you have seen.  Make this someplace relaxing not home or at an office.  As you discuss each home you have seen, review your lists of what was acceptable to both of you.  You might find you can not have everything on your list but compromise is a beautiful thing if done kindly and with respect.
• Pick your agent carefully, Pick an agent you feel comfortable with and who you feel can represent both of your wishes.  You are going to find your agent is going to become part of the family.  You are going to be discussing very personal things with them.  If you come to an impasse you should be able to work through it if you trust your agent and any advice that can be offered.
•  Keep your eyes on the end result.  This is a very intense process but with dignity and respect you at the end will have a home you both love and a relationship still intact.

                                Happy  House Hunting  

An Interview With A Top Las Vegas Home Inspector

Today we are talking to Craig Stivale of Alpha Home inspections. He has agreed to answer some questions to give us an inside look at the home inspection business.

Chris: Hi Craig, and thank you for taking time to answer a few questions for my readers. Tell us a little about yourself.

Craig: Hi Chris, I have been raised in the construction business starting at an early age so I guess you could say it's in my blood. When I moved to Las Vegas years ago I took my state test for inspector of structures and passed with high grades, so I went to work for a national franchise and stayed there for a few years and then started my own business. It's been great.

Chris: How did you get into the business?

Craig: My farther owned a construction company and I started as a laborer. So I know the building process from top to bottom.

Chris: Has business slowed down since the market has slowed a little?

Craig: Yes, but I've noticed so has the competition. I think the market is cleansing it's self at this point.

Chris: I have heard listing agents say to their seller, "a home inspector will nit pick and always find
something wrong just to justify getting paid." How would you respond to this?

Craig: I agree - great point and some will. I don't. I approach each inspection like I was buying the home for myself, I am very through yet I do not include cosmetic issues like dirty carpets section... If there is a problem like a cracked roof truss for example, I will take a picture with an arrow pointing to that broken truss.

Chris: Why should a buyer pay for a home inspection?

Craig: To reassure themselves that they are buying a safe home that is up to code and that includes fire safety and to address potential problems.

Chris: If someone purchased a brand spanking new home, they should be OK, right?

Craig: NO!!! By all means have a new home inspected. I have seen plenty of structural defects not to mention plumbing leaks along with HVAC issues. When you do your final walk through with the builders representative they will not be looking for anything but cosmetic. A home inspection will find these issues before you get moved in.

Chris: Take us through an inspection on say a single story home of about 1500 sq feet.

Craig: All the built in appliances, HVAC, plumbing, electrical (breaker box) all outlets including GFCI, attic framing, insulation's, trusses, fire walls of the garage, lot drainage, mold, pests, the list goes on and on.

Chris: Sounds very through. What is the worst thing you have ever found?

Craig: Several broken roof trusses where the entire attic was covered in mold.

Chris: Wow bet the new homeowners were glad you found that. I know mold can have serious affects on your health. Is there a builder in town that consistently has very few things wrong?

Craig: Yes, I would say Pulte and Toll Brothers's are our best builders.

Chris: That is good for buyers looking to buy in the valley. If they are buying resale it would be good to ask their Realtor® to look into these builders and the subdivisions they have built. In my previewing of new homes I was always impressed with Pulte.

Chris: I want to thank you Craig for giving us some insight on the home inspection business. For people moving to Las Vegas and buying a home how may they contact you to get your fine services?

Craig: Feel free to visit my web-site Alpha Home Inspection in Las Vegas . Thank you for the chance to talk with your readers. I hope I can be of service.

Credit Scoring

In a nutshell, credit scoring is a statistical method of assessing the credit risk of a loan applicant. The score is a number that rates the likelihood an individual will pay back a loan.

The score looks at the following items:

1.     Past delinquencies.

2.     Derogatory payment behavior.

3.     Current debt level.

4.     Length of credit history.

5.     Types of credit.

6.     Number of inquiries.

       Weather you are a first-time home buyer or you are planning to refinance your existing home loan, it is important to understand how your credit history influences the process. When you are being considered for a loan, the lender looks at your past payment history, the amount of credit you have outstanding and the amount of credit you have available—a snapshot of you as a borrower.

Mortgage lenders rely either on a consumer’s credit score, such as a FICO score developed by Fair, Isaacs & Company, or use a combination of FICO score and other factors to price a loan. Credit bureau information is used to obtain a number that represents how likely you are to make your loan payments on time. FICO scores range from approximately 250 to 900 and in general, higher scores predicts timely mortgage payments.

Your credit history directly affects the interest rate and fees (or points) a lender charges. Consumers with the best credit generally pay the lowest amount for a home loan. Building and maintaining strong scores may be as simple as improving your credit profile. Recommendations for doing so include:

• Making timely payments each month—the best way to increase a credit score is to pay bills on time.
• Paying off outstanding debt and limiting the amount of credit you use—lowering balances on credit cards and lines, and keeping them low, raises a credit score.
• Requesting a lower credit limit on current credit cards to avoid high credit limits—High credit limits relative to income can adversely affect a score.
• Closing credit accounts limits the number of credit lines—an obligation to pay multiple accounts lowers a credit score. By consolidating debt onto two or three credit lines and canceling other accounts, scores can be raised.
• Checking credit reports periodically—incorrect credit information in a credit bureau file may lower a credit score. The three major bureaus who provide reports for a small fee are Equifax (800-405-0081), Experian (800-682-7654), and TransUnion (800-888-4213).
• Not applying for credit you don't need—whenever you apply for credit, the creditor will obtain a credit report from one or more of the three credit bureaus. Each such inquiry stays on your record and affects your score. This is because each inquiry suggests that you are increasing the amount of credit available to you.

Credit scoring will place borrowers in one of three general categories.

• First, a borrower with a score 680 and above may be considered an A+ loan. The loan will involve basic underwriting, probably through a "computerized automated underwriting" system and be completed within minutes. Borrowers falling into this category may have a good chance to obtain a lower rate of interest and close their loan within a couple of days.
• Second, a score below 680 but above 620 may indicate underwriters will take a closer look at the file in determining potential risks. Borrowers falling into this category may find the process and underwriting time no different than in the past. Supplemental credit documentation and letters of explanation may be required before an underwriting decision is made. Loans within this FICO scoring range may allow borrowers to obtain "A" pricing, but loan closing may still take several days or weeks as it does now.
• Third, borrowers with a score below 620 may find themselves locked out of the best loan rates and terms offered. Mortgage professionals may divert these borrowers to alternate funding sources other than the prominent secondary market sources FNMA (Fannie Mae) or FHLMC (Freddie Mac). Borrowers may also find the loan terms and conditions less attractive than the "A".  This would be A- thru D loans called sub prime lending.  It may take some time before a suitable funding source is located to support a buyer's needs.

Interest rates are reasonable these days, and homeownership has become more affordable thanks to a strong economy. Whether you are homeowners moving up into larger residences, or first-time home buyers, your credit history is a key component in your success.

In making a loan decision, mortgage lenders closely review an applicant's credit history for late payments -- fewer blemishes on a credit report increase the likelihood of approval. Being late on a house payment, credit card payment or other obligations will be reflected negatively on a credit report. A pattern or history of late payments or delinquent accounts is generally regarded as a "red flag" and may require an explanation, or may result in denial of the loan.

Many people don't realize that building and maintaining good credit is essential throughout their lifetimes. Good habits to keep a good credit profile include:

- Paying bills on time each month. This shows the consumer knows how to manage credit. Paying off outstanding debt and limiting the amount of credit used are good practices.

- Requesting a lower credit limit. Consumers shouldn’t extend their credit limit above their income, no matter how many tempting solicitations they receive.

- Closing credit accounts. It’s a good idea to consolidate debt and cancel other unnecessary accounts whenever possible. It shows responsible credit management.

- Being proactive, not reactive. Consumers who are unable to meet their payment obligations should contact their creditors and work out a payment plan as soon as possible. The nonprofit Consumer Credit Counseling Service (800-388-2227) can help in resolving credit issues.

Building and keeping good credit and managing it well is a major part of homeownership, which in turn drives much of the local economy. As a real estate professional, you are in a unique position to help your clients, potential clients and the community-at-large in understanding the lifelong importance of their credit histories. The next time you have the opportunity to coach someone about the value of healthy credit, share these worthwhile ideas. They can help everyone’s business.

The higher you credit score, the lower the interest rate you can qualify for will be.  There are a few lesser known facts that could help you boost you credit scores.

Ask for a DO OVER :

If you have a smudge on your credit rating from one or two late payments, call the creditor and ask them to delete the late payment from your record.  A single late payment can lower you score by as much as 100 points.  If the late payment has not been a habit, they are likely to do it.

Know the right lender:

Ask a prospective lender if it has access to " rapid re-scoring."  It means an error can be wiped out in as little as 24-48 hours instead of the normal month or more.  Thus qualifying you to a lower interest rate.

In most states you can now get your credit reports free once a year.  In this era of identity fraud it is important to keep on top.  You could order one from each credit agency every four months.  To find out when your state qualifies for a free report or to order one log onto :

www.annualcreditreport.com

These ideas came from the book The ABC'S of getting out of debt by Garrett Sutton 

Identity theft has become a sad reality.  I am working with a client now who had her identity stolen.   Being the person she is, she went to work on it right away.  She hired a lawyer who assured her he would take care of it.  She gave him a hefty retainer and had been making monthly payments to him.  A few months later thinking that it had all been taken care of we went in search of her perfect townhouse.  We found a perfect place and we placed an offer.  Later that afternoon she called me in tears.  Her lender had informed her the lawyer had done NOTHING.  (why didn't the lender know that before?  HMMM thats another story.)  So for the last 6 months we have still been trying to get her credit reports straightened out.  Moral of the story??  Be very vigilante about watching you credit.  Get your free report once a year or there is insurance you can buy now to protect you.