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Home Inspections: Myths

by Don DeHanas, Broker

Many real estate deals are dependent on a home inspection, so it’s understandable that there can be a lot of nerves surrounding an inspection, especially for the potential buyer. Many of your clients may not know exactly what a home inspection entails or what to expect. Here are some top myths that may help them adjust their expectations:

6 HOME INSPECTION myths

1.   Having a license ensures a good home inspection. NOT TRUE! Not all states require licenses to be a home inspector and many of the standards vary widely. Make sure to verify other components of an inspector’s credentials, including past clients, years of experience and customer reviews.

 

2.  You can use a home inspection to identify problems that might be used as a tool to renegotiate the purchase price. NOT TRUE!  This is not the primary objective of a home inspection. The inspector’s professional service is one of unbiased, third-party education. They want to arm buyers and sellers with a good understanding of the physical condition of the home so they can make the best decision for themselves at that time.

3.  A home inspection tells you what your home is worth. NOT TRUE! An appraisal is intended to do this. An inspection also does not make any recommendations about whether or not to buy or sell the home—that is solely up to the client.

4.  All home inspection certifications and professional education are created equal. NOT TRUE! Some programs even offer certification online, without the requirement This article was provided by Pillar To Post home inspectors. For more information, go to pillartopost.com. BY THE NUMBERS It is recommended that a home be inspected every 10years, regardless of whether a sale is taking place. Source: The American Society of Home Inspectors to ever step foot inside a house and produce a real-time inspection. The best certification offers both in-class and hands-on training, as well as examination requirements. When choosing your home inspector, you want your clients to verify the reputation of the certificating organization.

5.  Home inspections are not needed for newly built homes or condos. NOT TRUE! Newly built homes or condos are just as much in need of an inspection as an older home. No home is perfectly built, and it’s best to have an inspector pinpoint potential issues or future repairs. Most inspectors can also give inspections during each construction “phase” of the property at various stages of development.

6.  Home inspections are solely used on the buyer’s side. NOT TRUE! Although most inspections are performed for potential buyers, there are many advantages to a pre-listing inspection for sellers. These include knowing about major issues before the house goes up for sale, increased negotiating power and garnering the best sale price. The American Society of Home Inspectors also recommends that a home be inspected every 10 years, regardless of whether a sale is taking place.

For additional information on obtaining a home inspection, call our office at 301-870-1717.

Try an FHA Loan

by Don DeHanas, Broker

FHA insured mortgages serve a sector of the market that is not necessarily being met by other loan programs.

Securing an 80% conventional mortgage that doesn’t require mortgage insurance may be the lowest cost of financing but if the buyer doesn’t have 20% down payment, it isn’t really an option.

Securing a 100% VA loan doesn’t require a down payment or mortgage insurance but if the buyer isn’t a veteran with his/her eligibility intact, it isn’t an option either. There are conventional loan programs with as little as 3% down payment but they not only require mortgage insurance, they also require a credit score of 740 or above which may eliminate some buyers.

For these reasons, FHA is a viable alternative to about 20% of new and existing home sales. The Federal backing of these mortgages makes it easier for first-time and low-income buyers to qualify because the requirements are not as demanding.

They’re even more lenient towards buyers who have previously experienced bankruptcy, Foreclosure or a short sale. Finding the right mortgage for the right home is a team effort where both mortgage and real estate professionals work in harmony to get a buyer into their own home. Call us at (301) 870-1717 for a recommendation of a trusted mortgage professional.

General FHA loan requirements include:

• The loan is for primary residences only but can include two, three or four units.

• The property must be appraised by an FHA-approved appraiser.

• The property must be safe, sound and secure, in compliance with minimum property standards as defined by the U.S. Department of Housing and Urban Development.

• The borrower must be a legal resident of the U.S. and have a valid Social Security number.

• The minimum credit score of 580 with a down payment of at least 3.5 percent, or a minimum credit score of 500 with a down payment of at least 10 percent.

• The borrower may not have delinquent federal debt or judgments, or debt associated with past FHA loans. • The borrower must have steady employment history.

• Documentation is required if the down payment was gifted by a family member.

• The borrower must have a debt-to-income not exceed limits of 31% for front-end and 43% back-end ratio (some exceptions may apply).

• Any judgments or collections on the credit report must be resolved or satisfactorily explained.

For additional infomration on obtaining an FHA loan, call Bryan Pumphrey at Everbank at 301-399-0595, or call DeHanas Real Estate Services at 301-870-1717.

Prepare for Holiday Travels

by Don DeHanas, Broker

The last thing you want if you’re traveling these holidays is to worry about someone burglarizing your home. Use this check list to add some peace of mind while you’re out of town.

• Ask a trusted friend - to pick up mail, newspaper and keep yard picked up to avoid an appearance of being empty.

• Consider discontinuing your mail (USPS Hold Mail Service)

• Don’t post about your trip on Facebook and other social media until you return – some burglars actually look for this type of announcement to schedule their activities.

• Do notify police or neighborhood watch – especially if you’re going to be gone for more than just a few days. Let your monitoring service know when you’ll be gone and if someone will be checking on your home for you.

• Light timers make it look like someone is home – use several sets for different times to better simulate someone being at home.

• Do unplug certain appliances – TV, computers, toaster ovens that use electricity even when they’re off and to protect them from power surges.

• Don’t hide a key – burglars know exactly where to look for your key and it only takes them a moment to check under the mat, above the door, in the flower pot or in a fake rock.

These easy-to-handle suggestions may protect your belongings while you’re gone while adding a level of serenity to your trip.

Cash In Refinance

by Don DeHanas, Broker

Would someone really refinance their home and not take money out of it? Certainly, if they could get a lower rate, build equity faster and pay off the home sooner.

For people with extra cash available, this can be very attractive compared to the low savings rates being paid by banks.

In the example below, the current mortgage is 5% for 30 years after 48 payments of $1,342.05. The owner can refinance for 15 years at 3.37%. If they put $36,000 into the refinance, their payments will be slightly more but the mortgage will be paid off in 15 years. At that same point, if they keep the current mortgage, their unpaid balance will be $136,049.03. If you have a goal to get your home paid off and have the available funds, a Cash-In Refinance may be just the strategy for you.

To learn more, call DeHanas Real Estate Services at 301-870-1717.  Know someone looking to buy, sell or rent a home? Call DeHanas Real Estate Servoices today!

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The DeHanas Team
DeHanas Real Estate Services
1218 Smallwood Drive
Waldorf MD 20603
Office: 301-870-1717
1-800-842-0190
Fax: 240-754-7867

Servicing all Anne Arundel County, Calvert County, Charles County, and Prince George's County as well as Annapolis, Bowie, Chesapeake Beach, Crofton, Dunkirk, Edgewater, Ft. Meade, Huntingtown, La Plata, North Beach, Odenton, Owings, Pasadena, Severn, Waldorf, and the Upper Marlboro areas of Maryland, all of Washington DC, and Northern Virginia, including Alexandria, Arlington, and King George County real estate advertised in this website are subject to the Federal Fair Housing Act of 1968 which makes it illegal to advertise any preference, limitation, or discrimination based on race, color, religion, sex, handicap and familial status, or national origin, or any intention to make any such preference, limitation or discrimination. DeHanas Real Estate Services will not knowingly accept any listing agreement for real estate sales in Anne Arundel County, Calvert County, Charles County, and Prince George's County as well as Annapolis, Bowie, Chesapeake Beach, Crofton, Dunkirk, Edgewater MD, Ft. Meade, Huntingtown, La Plata, North Beach, Odenton, Owings, Pasadena, Severn, Waldorf, and the Upper Marlboro, all of Washington DC, and Northern Virginia, including Alexandria, Arlington, and King George County areas which are in violation of the law. Our clients and customers are informed that all dwellings advertised on our website in Anne Arundel County, Calvert County, Charles County, and Prince George's County as well as Annapolis, Bowie, Chesapeake Beach, Crofton, Dunkirk, Edgewater MD, Ft. Meade, Huntingtown, La Plata, North Beach, Odenton, Owings, Pasadena, Severn, Waldorf, and the Upper Marlboro, all of Washington DC, and Northern Virginia, including Alexandria, Arlington, and King George County areas are available on an equal opportunity basis. All prices and finance claims appearing in this site are subject to change without notice.