How to Avoid Buying a Money Pit

There's an old saying that a boat is nothing more than a hole in the water that you pour your money into. Boats are expensive – from the purchase to the ongoing maintenance – and boat owners throw a lot of money into that hole. If that's true, then it's easy to imagine a house being a hole in the ground, ready to swallow a fortune. Sadly, many of them are just that, but it doesn't have to be that way. If you're house hunting, it's easy to be swayed by design features and miss the red flags that signal the home may just be a money pit. Evidence of Deferred Maintenance Ah, real estate lingo. Get ready to learn a whole new language as you go through the real estate transaction. One of the terms you may frequently hear, especially from your agent and home inspector, is "deferred maintenance." Deferred maintenance is, simply, the putting off of routine home maintenance. Whether because of procrastination or lack of funds, many homeowners fail to perform the tasks that a house requires to remain in good condition. For instance, failing to replace a cracked or broken wax ring on a toilet can lead to huge repair bills. Caught early, it's a relatively inexpensive fix. If not attended to, however, moisture will seep from the toilet, intruding into the flooring and even the subfloor. Mold may form. Before you know it, you're looking at not only fixing the toilet but replacing the flooring as well. Let's take a look at some signs that a homeowner has put off performing routine but critical maintenance: Cracks in the walls – Although this may be just a result of natural home shifting, a crack in the wall may be a symptom of a larger problem. Vertical cracks are typically harmless. Horizontal cracks, or jagged cracks that run at an angle, on the other hand, deserve closer inspection. These may indicate foundation shifting or water damage. Ceiling stains – Stains on the ceiling are common and indicate a problem somewhere above the stain. The problem may be a roof leak or defective chimney flashing, allowing rain and snow to seep through. Ceiling stains may also indicate condensation. If the stain is near the bathroom's exhaust fan, condensation is most likely the culprit, and an uninsulated duct in the attic may be the cause. Then, there is the obvious plumbing leak. If an upstairs bathroom is located above the stain there may be a leak in the tub, toilet or sink. Press your toes around the floor along the edge of the toilet's base. If it feels spongy, the toilet may be leaking. A home inspector has a tool to test a stain to determine if it is wet or dry. A dry stain means that the problem no longer exists while a wet stain means the problem persists. Firewood piles – If you live in a region where wood-destroying pests are a problem, such as California, the Pacific Northwest and Michigan, a pile of firewood acts as a magnet for them. If that wood pile is stacked against the side of a house, there is a chance that the home may be infested with termites. A pest inspector is your best resource if you suspect there may be wood-destroying pest damage in a home. Musty odors – Many houses contain hidden health hazards, and one of the biggest is indoor air pollution. Some pollutants, such as radon gas, are impossible to detect by smell and require the help of a professional. Others, such as mold, are sometimes either visually evident or you can smell them. Mold is one of the most common indoor air pollutants, and we inhale the spores every time we take a breath. If the air smells musty, there is most likely mold somewhere in the home. Hire a certified mold inspector to go through the home before signing on the dotted line. Sticking doors and windows – Open and close all interior windows and doors in the house. If they stick and aren't painted shut, it may be an indication of the foundation shifting. Look at the top of the sticking doors for a gap. This is another indication of the same problem. While you can never completely eliminate risk when you buy a home, you can reduce it by exercising "due diligence," another of those terms you'll hear bandied about during the home-buying process. Due diligence simply describes your duty to investigate the condition of the property before you buy it. Many homebuyers rely on professional home inspectors to fulfill this aspect of their investigation, and there is nothing wrong with that. By knowing what to look for, however, you can guide your home inspector to those areas of the home that you think require extra scrutiny. One final note: Certain types of deferred maintenance may sabotage your mortgage loan during the appraisal. Something as simple as broken or cracked windows can hold up an FHA-backed loan, and signs of larger problems, such as water damage and suspected mold infestations may cause a lender to demand further investigation and even repairs prior to closing.

Do it your self Patios!!!

DIY Patios: What to Consider When Designing a Patio Adding a patio to your home is exciting. It's the perfect place for relaxing outdoors, alone or with company. It's not as simple as finding a patio you admire and duplicating it, however. You have to design a patio that will work with your location, budget and other factors. Here are some things to consider when designing your patio to ensure it suits your needs while expressing your personality and style. Patio Location Don't be afraid to think outside the box when it comes to location. No rule says a patio has to adjoin the rear of the house. You may prefer placing it in the front yard, or off to the side instead. A beautiful "destination patio" in the middle of the backyard with a pathway leading to it may fit your home and lifestyle perfectly. When deciding on your patio location, keep in mind other design considerations such as the size, how you plan to use it, and how much sun, shade or climate protection the location offers. Even the land itself influences the patio location. A more level area, free of underground lines, requires less work to prepare. (Always call 811 before digging. Utility companies will dispatch and mark underground items for you.) Don't forget the view, either. Plan on laying out in your swimsuit? You may want a more private location. Socializing with the neighbors allows for a more open setting. How Will You Use the Patio? Just as important as the patio location is how you plan to use it. A patio meant as a private retreat may not be very relaxing next to a full, active house, for example, while a patio meant for dining and cooking works best closer to the home. Do you plan to host small, intimate gatherings or do you have a large family? Will children and pets regularly use the space? Rather than a flat, simple rectangular patio, would you rather have various areas, perhaps with different shapes or levels, to create groupings for different times and purposes? Look for patios you admire to spark your design ideas. Patio Size Size is everything. Depending on your budget, you may have to limit the size of your patio, change the layout or compromise on special features. Don't think of your patio as a one-time chance to get it right, either. You can always keep the design expandable and add the extras later, as money permits. Create a Budget Your budget will impact not only the size and layout, but also the building materials you choose. Don't assume that a limited budget means your patio has to be plain. Even concrete can be made beautiful with stains and special finishing techniques. Brick allows for a richer color variation, and pavers can create an old-world feel. Once you have determined the patio size, location and layout, it's much easier to price the materials needed. Consider adding graceful curves, beautiful planters or special borders to make up for less-fancy materials. Decide on Extras It's the furnishings and features that make a patio your favorite place to hang out. Also consider any irrigation, drainage, landscaping and lighting you want to include. It's much easier to run pipes, lines and cables now, before the patio is built, than later. Other options include: A fire pit A built-in grill (or space for your portable grill) A water fountain or pool Built-in seating or flowerbeds Steps and railings A roof and screened-in areas Walls or fences A built-in kitchen or bar As you plan your patio, look for other patios you admire and modify the elements that catch your eye to suit your own design. Designing and planning your new patio is really the fun part. Well, other than the hours you will spend enjoying the end result!

First Time Home Buyer ?

Calvin Shropshire

Providing Results that Move You!!!

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Cell:  (423) 521-0468

Fax: (423) 693-0268 |Office:   (423) 664-1900

Email:  calvin@findyourhomefast.com | Website: www.findyourhomefast.com

Step 1: Check Your Credit Report & Score

Before getting a mortgage or any kind of loan, you should always check your credit. According to the law, you're allowed to receive one free copy of your credit report per year. You can do this by visiting Annualcreditreport.com. Scores range from approximately 300 to 850; generally, the higher your score, the better loan you'll qualify for. Don't forget to check your report for errors. If there are any, dispute them. It may help your credit score. You can also check your credit score for free at www.creditkarma.com.

Step 2: Figure out How Much You Can Afford

You can calculate how much you can afford by starting online. There are several online mortgage calculators that will help you calculate an affordable monthly mortgage payment. Don't forget to factor in money you'll need for a down payment, closing costs, fees (such as fees for an attorney, appraisal, inspection, etc.) and the costs of remodeling or furniture. Remember that you don't always have to put down 20 percent as your parents once did. There are loans available with little to no down payment. An experienced home loan expert can help you understand all your loan options, closing costs and other fees.

Step 3: Find the Right Lender and Real Estate Agent

To find the right mortgage lender it’s best to shop around. Get recommendations from your friends and family and check with the Better Business Bureau. Talk to at least three or four mortgage lenders. Ask lots of questions and make sure they have answers that satisfy you. Make sure to find someone that you are comfortable with and who makes you feel at ease.

Once you have the right mortgage lender, make sure you at least get a pre-approval. Qualifications are only a guess based on what you tell the lender and are no guarantee, whereas a pre-approval will give you a better idea of how big a loan you qualify for. The lender will actually pull your credit and get more information about you. However, you could even take it one step further by getting an actual approval before you start home shopping. That way, when you're ready to make an offer, it will make the sale go much quicker. Besides, your offer will look more appealing than other buyers since your financing is guaranteed.

Step 4: Look for the Right Home

Make a list of the things you'll need to have in the house. Ask yourself how many bedrooms and bathrooms you'll need and get an idea of how much space you desire. How big do you want the kitchen to be? Do you need lots of closets and cabinet space? Do you need a big yard for your kids and/or pets to play in?

Once you've made a list of your must-have's, don't forget to think about the kind of neighborhood you want, types of schools in the area, the length of your commute to and from work, and the convenience of local shopping. Take into account your safety concerns as well as how good the rate of home appreciation is in the area.

Step 5: Make an Offer on the Home

Now that you've found the home you want, you have to make an offer. Most sellers price their homes a bit high, expecting that there will be some haggling involved. A decent place to start is about five percent below the asking price. You can also get a list from your real estate agent to find out how much comparable have sold for. Once you've made your offer, don't think it's final. The seller may make a counter-offer to which you can also counter-offer. But you don't want to go back and forth too much. Somewhere, you have to meet in the middle. Once you've agreed on a price, you'll make an earnest, which is money that goes in escrow to give the seller a sign of good faith.

Step 6: Get the Right Mortgage for Your Situation

There are many different types of mortgage programs out there, but as a first-time home buyer, you should be aware of the three basics: adjustable rate, fixed rate and interest-only.

• Adjustable rate mortgages (ARMs) are short-term mortgages that offer an interest rate that is fixed for a short period of time, usually between one to seven years. After that, the interest rate can adjust every year up or down, depending on the market. These are good for people who don't plan on living in their home very long and/or are looking for a lower interest rate and payment.
• Fixed-rate mortgages are more traditional and offer a fixed interest rate (and thus a fixed monthly payment) for a longer period of time, usually 15 or 30 years, though they're available in 20 or 25 year terms. These are good for people who like a predictable payment and plan on living in their home for a long time.
• Both fixed and adjustable rate mortgages can have an interest-only payment. What this means is that for a certain amount of time during the loan term, you're allowed to pay only enough to cover the interest portion of your payment. You can still pay principal when you wish, but don't have to if your budget is tight. There is a myth that with interest-only mortgages, you don't build equity. This is not necessarily true, since you can build equity through home appreciation. The benefit to interest-only mortgages is that you increase your cash flow by not paying principal.

Remember to ask your mortgage lender or mortgage banker lots of questions about which mortgage is right for you and your situation.

Step 7: Close on Your Home

Make sure you get a home inspection before you close. It will be well-worth the money spent since it ensures the property's structural soundness and good condition.

Setting the closing date that is convenient to both parties may be tricky, but can certainly be done. Remember that you may have to wait until your rental agreement runs out and the seller may have to wait until they close on their new house.

Be sure you talk to your mortgage banker to understand all the costs that will be involved with the closing so there are no surprises. Closing costs will likely include (but are not limited to) your down payment, title fees, appraisal fees, attorney fees, inspection fees, and points you may have bought to buy down your interest rate.

Step 8: Move In!

You've got your mortgage, closed the deal and now it's time to move in! Whether you use a mover or not is up to you, depending on your financial situation and how much stuff you have to move; perhaps also, whether you have a lot of friends willing to help you move. Either way, you're done with the home buying process! Just start unpacking and start enjoying your first home! Buying a home for the first time doesn't have to be a hassle if you're prepared and you know what to do and when to do it. Choose an experienced home loan lender and a friendly, knowledgeable real estate agent-they are the key to helping you have a smooth home buying experience!

information provided by Zillow.com

2014 Buyers Guide

425 Water Mill Trace RINGGOLD, Ga

JUN-2014 Newsletter Housing Trends eNewsletter

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

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