Things are moving so quickly in the market with the coronavirus being at the forefront, everyone is feeling hardship across the board.
FHA Loans provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. It is one of the largest insurers of mortgages in the world, insuring more than 46 million mortgages since its inception in 1934 and it's the only government agency that operates from its self-generated income.
Self-generated income which means the Mortgage insurance premiums that is collected from borrowers via lenders are used to operate the program.
FICO scores tells the lender what type of credit risk you are and what your interest rate should be to reflect that risk by utilizing a FICO formula.
The most commonalty used :
Equifax Beacon 5.0
Experian/Fair Isaac Risk Model v2
TransUnion FICO Risk Score 04
We’re seeing what’s “good” for rates can be bad for lenders, and what’s “good” for the market can be bad for home buyers. This tug of war has caused servicers to implement drastic measures to keep up; includes raising the minimum FICO. If you have questions or concerns please contact your lender right away.
Home Repairs or Replacement?
Being a home owner is often a rewarding experience. Homes need to be continually cared for, and everything inside has a lifespan. Understanding this will ensure their replacement doesn't put you in a bind.
Windows 8-40 years
Old, out-of-date windows aren't merely an aesthetic problem — they can also lead to higher energy bills. Over time, efficiency gains will help the windows pay for themselves.
Usage, weather, maintenance, and material quality all have an impact on how long your windows will last. Is it time to replace them?
Roofs 15-150 years
Roofs vary widely when it comes to average lifespan, largely depending on type and quality of materials used and ventilation. Here's how long you can expect some of the most common roof types to last, according to InterNACHI:
- Tar or coal: 30 years
- Metal: 40 to 80 years
- Rubber: 15 to 25 years
- Asphalt: 30 years
- Slate: 60 to 150 years
It's important to have an idea of how soon that repair may be necessary. A leaky roof can also lead to serious water damage, so it's critical to keep a close eye on the overall condition of your roofing.
Central Air 7-15 years
Replacing your air conditioning unit every seven to fifteen years, InterNACHI suggests replacing your furnace every 15 to 25 years along with general upkeep and maintenance.
Counter tops 20-100 years
While tile, stone, and wood can last more than a century, laminate or resin-based counters should be replaced roughly every 20 to 30 years.
Another thing to consider: Semi-synthetic surfaces, such as cultured marble, do not have nearly the lifespan of natural stone. These surfaces may last as little as 20 years.
- Gas Oven 10-18 years
- Electric Range 13-15 years
- Refrigerator 9-15 years (Filters 6 months)
- Washing machine 5-15 years
- Dryer 13 years
- Dishwasher 8-10 years
- Garbage Disposal 8-15 years
- Smoke detectors 10 years (Batteries every year)
- Shower head filters 6 months
Understanding the lifespan of your big ticket items and other items will allow you to make the best and sound decision when it comes to repairing or replacing them. We recommend speaking with a professional.
Need home insurance or want more information about how to ensure you're properly covered contact Valley West Insurance (702) 262-9900 Text or Call
Note: This information is provided as a courtesy and is for informational and entertainment purposes only. Contents of this website are subject to change without notice. This content is not intended to replace official resources
Inspections and the Inspector
An important part of purchasing a home, aside from the financial considerations, is a home inspection.
We've provided is a general list of what to expect and what to look out for.
You need to vet the inspector just as you would with a contractor.
- Request license- A professional inspector should always carry their license. No Proof. No Deal.
- Ask if they're currently/have ever worked for the seller's realtor. They should be working for you only.
- Ask about their education and training experience. Inspectors have a unique discipline, and they should have specific experience in residential inspections.
- Ask for references.
- Ask if they maintain a membership in a professional home inspector association. Request to see a membership ID or other due diligence
- Ask what the inspection covers-Specific requirements may apply in your state, special request for areas you want inspected.
- Request attendance during the inspection- It's invaluable to a home owner or home buyer to see through the eyes of an expert. Refusal should raise a red flag.
- Ask for duration of inspection- Two to three hours is the average depending on the size of the home/property
- Ask for cost-Varies on region, size and age of house, scope of services and more. Cost doesn't reflect a quality inspection.
- Ask for samples of previous reports
- Always ask question!
The Inspection (Pro and You)
During this time, take note of your own observations, too. You should always do your own initial inspection before making an offer also, ensure you hire a professional.
- Foundation-cracks, fissures, ruptures, sagging, shifting, water intrusion, discoloration, musty smell or bugs, draining issues, extreme weather changes (pressure on the foundation), walls buckling or leaning, windows and doors won't close correctly, crumbling or chipping concrete (vertical, zigzag horizontal, non-uniform, jutting from the floor or wall) and encroaching trees.
- Plumbing-water filtration systems, fixtures, supply lines, drains, all above-ground, exposed plumbing, shut-off valves, traps, sinks, showers/bath, toilets, kitchen, laundry room draining, venting systems, storage water tank or tankless water heater, drains, sewer pipes, sump pump and discharge inspection.
- Roof & Attic (interior)- proper insulation (including assessing R-value) and ventilation.
- Roof (exterior)- leaks, ice dams, condition of roof shingles/tiles, proper flashing(dormers, valleys, side walls, eaves and rakes) and chimney.
- Electrical-switches and outlets grounded, electrical panel box have circuit breakers, exposed wires, key splicing devices, cables secured to boxes, conductor fill, box positioning, floor and ceiling boxes, recessed lighting are clear of combustibles, cables installed in contact thermal insulation.
- Windows-water damage, wood rot and quality of windows.
- Doors-swinging and closing properly, scraping floors, cracks above the door(signal of sinking header), delamination, dents, water damage, door faces and edges sealed, weather stripping.
- Staircase-gaps between stringer and wall, too steep or narrow, handrails, horizontal support under the handrail, low headroom, treads crack, squeaky steps, steps that are springy, loose rails.
- Heating & Cooling- condensing unit, indoor coil, visible refrigerant leans, condensation drain pan, drain line and p-trap, wiring and control unit, blower assembly and thermostat operation and programming.
- Kitchen- age and condition of the appliances, vents that lead to nowhere, major appliances, range burners, ovens, refrigerators and freezers, missing stabilizing brackets and range top ventilation.
- Radon-ask your realtor if a radon test has been performed within the past year. If radon has ever been detected in the house and has a radon mitigation system been installed.
Your home inspector should be willing and able to explain things more than once until you feel confident you understand the issue and potential solutions.
Note: This information is provided as a courtesy and is for informational and entertainment purposes only. Contents of this website are subject to change without notice. This content is not intended to replace official resources.
3 Loan Documents You Should Know
Three Loan Documents You’ll Want to Know
Buying a new home (or refinancing your current home) is a process that requires quite a bit of paperwork. Thankfully, all of the paperwork isn’t thrown at you at once, instead it comes in stages. At each milestone of the loan process (beginning with disclosures and ending with your final loan docs), there is a different wave of documents that you’ll have to read and sign. Depending on your loan terms and any unexpected findings during processing you may even have to sign some documents twice (or as many times as loan terms change). In this article, I’ll provide you with the names and descriptions of a few documents to keep in mind. The following documents are arguably the most important documents that you will encounter during the closing of your mortgage loan.
The Loan Estimate
The Loan Estimate, or LE for short, is a form that you’ll receive after applying for your home loan. You will receive a Loan Estimate from your mortgage lender no later than three days after completing your application. The Loan estimate shows the terms of the loan program you’re applying for, estimated payments based off your desired loan amount, and it shows your closing costs. If you’ve done a mortgage loan before (prior to October 2015), the LE replaces what you formerly knew as the GFE, or Good Faith Estimate. Your loan estimate is designed to clearly explain the cost of closing a loan.
The Closing Disclosure
The Closing Disclosure, or CD for short, is a form that is very similar to the Loan Estimate. The CD has updated fees and loan terms and shows not only what you will pay to close your loan as the borrower, but it also shows what every other party is doing financially. If your lender is giving any kind of credit towards your loan it will show on the CD. The CD also reflects when loan fees will be paid, either before closing, at closing, or by a third party. After you sign your initial Closing Disclosure you have 3 days to ask any questions or change your mind before your final loan docs are drawn up. Every financial transaction that will take place during the closing of your loan will show up on the CD, read it carefully!
The Note in mortgage is the contract you sign at closing that details the amount of your loan, the interest rate, the payment due date, any penalties for late fees and other important financial info regarding your loan. This is the document that marks your home as collateral with your lender. If you were to default on your loan, having signed your Note puts you in a breach of contract and it’s what banks will refer to if you can’t or don’t pay your mortgage. Signing your Note is your promise to pay. Similar to how a car dealer holds the title to your vehicle until you have paid it off, the bank that is lending your home loan holds your Note until your mortgage is paid. Once it’s paid off, you’ll receive a copy (if not the original note) marked “Paid in Full”.
The mortgage loan process can be lengthy and requires a lot of reading and signing on your behalf. It’s important to be familiar with the documents that require the most attention. Proper knowledge and preparation is the key to keeping yourself from getting lost in the mortgage sauce.
When doing your research always be sure to consult great sources. Check out the sources for this article below!
WHITNEY RUSH, VALLEY WEST MORTGAGE