New Orleans among most stable housing markets, newspaper reports

house for sale metairie.jpg

New Orleans and the state of Louisiana as a whole are among the most stable housing markets in the U.S. according to a recent report by mortgage giant Freddie Mac, the Washington Post reported Monday.

Freddie Mac rates housing markets on metro and state levels for stability over the long haul using home purchase data, mortgage payments and employment numbers, the newspaper reported. Louisiana was among only 10 states reportedly stable, while New Orleans was among only four of 50 metro areas, the newspaper found.

Read the Washington Post story here. See the full Freddie Mac report — which found that many housing markets are stalling — here.

Find more details about home prices in New Orleans here.

 

Acutec Home Inspectors provides Home Inspection services in New Orleans, Slidell, Covington, Mandeville, Abita Springs, Hammond, Pontchatoula, Pearl River, Kenner, Bogalusa, Lacombe and all areas in-between.  We offer a full service Home Inspection Service and maintain proper insurance and a license with the LSBHI Home Inspection Board.  Our home inspectors are trained and will perform your Home Inspection service and provide a professional report in a timely manner.
Call us today at 985-290-8993

Pre Listing Inspection. It’s crazy not to get one!

Sellers’ Pre-Listing Inspections

Eventually, your buyers are going to conduct an inspection. You may as well know what they are going to find by getting there first.  Having an inspection performed ahead of time helps in many other ways, such as:
  • It allows you to see your home through the eyes of a critical and neutral third party.
  • It alerts you to immediate safety issues before agents and visitors tour your home.
  • It may alert you to items of immediate concern, such as radon gas or active termite infestation.  It permits you to make repairs ahead of time so that …
  • Defects won’t become negotiating stumbling blocks later.
  • There is no delay in obtaining the Use and Occupancy Permit.
  • You have the time to get reasonably priced contractors or make the repairs yourself, if qualified.
  • It helps you to price your home realistically.
  • It may relieve prospects’ concerns and suspicions.
  • It may encourage the buyer to waive his inspection contingency.
  • It reduces your liability by adding professional supporting documentation to your disclosure statement.
Never hire an inspector who is not a member of InterNACHI, which provides the most trusted and rigorous training for inspectors in the industry.

Copies of the inspection report, along with receipts for any repairs, should be made available to potential buyers.
Acutec Home Inspectors provides Home Inspection services in New Orleans, Slidell, Covington, Mandeville, Abita Springs, Hammond, Pontchatoula, Pearl River, Kenner, Bogalusa, Lacombe and all areas in-between.  We offer a full service Home Inspection Service and maintain proper insurance and a license with the LSBHI Home Inspection Board.  Our home inspectors are trained and will perform your Home Inspection service and provide a professional report in a timely manner.
Call us today at 985-290-8993
InspectorSeek.com
For more information, visit: www.MoveInCertified.com
For the best inspector in your neighborhood, visit www.InspectorSEEK.com

From Sellers’ Pre-Listing Inspections – InterNACHI http://www.nachi.org/sellersinspection.htm#ixzz32BNdIv9F

15 Ways to Make Your Home More Energy Efficient

According to EnergyStar.gov – a partnership of the U.S. Environmental Protection Agency and the U.S. Department of Energy – the typical household spends $2,100 each year to heat, cool, and illuminate their homes. But reducing energy bills doesn’t have to be difficult or expensive.

Up to half of the energy used in your home goes to heating and cooling. By making some smart changes in your energy usage, you can have a big impact on your utility bills.

  • Skip pre-rinsing dishes. It’s good to scrape food off before putting dishes in the dishwasher, but there’s no need to rinse them. You’ll save up to 6,500 gallons of water per year.
  • Replace furnace air filters often. A dirty air filter can make your furnace work harder and use more energy. Replace the filter every two to three months.
  • Replace incandescent bulbs with compact fluorescent lamps (CFLs) or light-emitting diodes (LEDs). CFLs can last 10 times longer than incandescent bulbs and use 75% less energy. LED bulbs are mercury-free and may last three to five times as long as CFLs.
  • Insulate water heaters and pipes. Covering your water heater with an insulated water heater blanket can help retain heat, so the unit uses less energy to heat hot water. Foam or rubber pipe insulation keeps cold pipes from sweating in the summer and reduces heat loss from hot-water flow in the winter.
  • Seal doors and windows. Install door sweeps at the bottom of your front and back doors to keep heat from escaping. Remove old window caulk and apply a fresh seal to retain heat in your home.
  • Clean air ducts. Keep your air ducts clean to improve air flow and reduce stress on your furnace and central air conditioner.
  • Upgrade your thermostat. A programmable thermostat can save you over $100 a year on your energy bill.
  • Install low-flow toilets and showerheads. Toilets consume up to 40% of a home’s average water use. Using low-flow toilets can save more than 9,000 gallons of water a year. A low-flow showerhead only uses 1.5 gallons per minute while most conventional showerheads use 5 gallons per minute.
  • Install ceiling fans. For summer use, ceiling fans can cool a room more efficiently than an air conditioner. For winter use, most ceiling fans have a reverse switch so that their blades force heated air down from the ceiling.
  • Hire a professional energy auditor. Using a blower door or infrared photography, a trained auditor can assess where your home is leaking energy. Some utilities even offer free audits.
  • Plant deciduous shade trees near the house. Leafy trees on the west and southwest sides of a house can keep your home cooler in the summer.
  • Replace leaky windows. Replace single-glazed windows with low thermal emissivity (Low-E) windows to reduce heat transfer and keep your home cooler in the summer and warmer in the winter.
  • Insulate walls and attic. Heat escapes through the walls and attic of homes. Blown-in foam insulation can be a very cost-effective way to seal walls, with minimal structural intrusion. Replacing old attic insulation with fresh fiberglass cover can reduce your heating bills.
  • Purchase ENERGY STAR appliances. Refrigerators, televisions, stoves, washers, dryers, dishwashers, and air conditioners with this designation can save you a significant amount each month in energy bills. Start by replacing your oldest, least-efficient appliances first, before they have a major problem.
  • Install solar panels. Solar panels, which can be used to heat hot water or generate electricity, can save money on your energy bills over the long run, lower your fossil fuel usage, and may qualify for tax incentives.

 

Acutec Home Inspectors provides Home Inspection services in New Orleans, Slidell, Covington, Mandeville, Abita Springs, Hammond, Pontchatoula, Pearl River, Kenner, Bogalusa, Lacombe and all areas in-between.  We offer a full service Home Inspection Service and maintain proper insurance and a license with the LSBHI Home Inspection Board.  Our home inspectors are trained and will perform your Home Inspection service and provide a professional report in a timely manner.
Call us today at 985-290-8993
The information in this article was obtained from various sources. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. These suggestions are not a complete list of every loss control measure. The information is not intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. Nor is it intended to effect coverage under any policy. State Farm makes no guarantee of the results from use of this information. We assume no liability in connection with the information nor the suggestions made.

– See more at: http://learningcenter.statefarm.com/residence/maintenance/15-ways-to-make-your-home-more-energy-efficient/#sthash.AJVXuVAY.dpuf

How Emotions Can Hurt a Home Buyer

Three years ago, when my husband and I first moved to our current home in Lafayette, Indiana, we got a pretty rude wake-up call about how emotions can make the process of buying a home even more costly. (See also: Your Finances: 4 Emotional Decisions to Avoid)

At the time that we moved, we were in contract on a house that we had really fallen in love with. I also happened to be seven months pregnant at the time, and we were anxious to close on the house and get settled before the baby arrived. Unfortunately, the detached garage was years overdue for a new roof, and the roof on the house itself was also in need of replacement.

Since we were already in contract at that point, the sellers’ agent decided to start playing hardball. Knowing we loved the house and that we had an immovable time constraint, she advised the sellers to refuse to fix the garage roof at all and to only pay for re-shingling the house roof, despite the fact that it was past due for a full replacement. We were in the unenviable position of having to decide if we wanted the house badly enough to accept their terms.

Thankfully, even though we had already started envisioning ourselves living in that house, we felt so uncomfortable with the agent’s tactics and the state of the roofs that we were able to do a real cost-benefit analysis and decide the house wasn’t worth it.

For many home buyers, however, logic can sometimes take a backseat when making such a big decision. Not only can your emotions get the best of you, but agents and sellers can play on those emotions to lead you into a costly mistake. Here are some of the common emotional mistakes new home buyers can make, and how to avoid them.

1. Falling in Love at First Sight

Often, this particular emotional speed bump is only described as problematic if you’re looking at houses outside of your price range. And while that certainly can be an issue (particularly if you’re looking for a mixed-use property where you can start your ghostbusting business), even falling in love with a home you can easily afford can still be an issue.

Anytime you let yourself get carried away with visions of living happily in a particular home, you leave yourself vulnerable to making a big mistake. That’s because you’re more likely to fall into the confirmation bias — a cognitive bias wherein you look for information that reaffirms your belief in the soundness of your choice and discount any information that suggests otherwise. You are so enamored of the granite counter tops and spacious sun room that you ignore the fact that your new home is in a lousy school district or has mold in the basement.

Confirmation bias was part of our problem with the home we were in contract on. We knew that there were several downsides to the house — not including the roof issue — that we had basically ignored. On reflection, we realized that a homeowner who does not take good care of a basic home structure might also neglect other aspects of home maintenance that hadn’t been revealed by the inspection — a fact that we simply disregarded when we were still in love with the house. (See also: How We Brainwash Ourselves Into Brand Loyalty)

Our situation made it abundantly clear that every home buyer needs to be willing to walk away from a sale, no matter how gorgeous the hardwood floors are. Allowing your love for a house to overcome your logic could really hurt your finances.

2. Not Seeing Past the “Trappings” of the House

When you first walk through the front door of a house for sale, it can be easy to be seduced by all the positives that the seller and agent are playing up. This is something like going on a first date with a house. The house is all dressed up and ready to impress — and it would be ridiculous to propose marriage (that is, make an offer) right on the spot.

Seeing past all the positive attributes can be even harder considering the fact that many sellers and agents are savvy enough to manipulate the atmosphere to make the house feel like your home: having the lingering scent of chocolate-chip cookies in the air (and a plateful waiting for you in the kitchen), removing family pictures and other personalized touches that might make it more difficult for you to imagine yourself in the house, and playing soothing and welcoming music. (See also: 6 Cheap Ways to Stage Your Home in a Buyer’s Market)

But as much as the home staging can show off the house in its best light, it’s a mistake to overlook all the possible downsides of the home. Having a house be a good home is about a lot more than cookies, closet space, and well-appointed kitchens. Don’t forget to think about what work the house needs, how livable the house would be for your family, and whether the neighborhood truly meets your needs.

3. Looking for Perfection

While some buyers can fall for the vaulted ceilings in a house whose neighborhood is like a demilitarized zone, other buyers can fall into the opposite trap — wanting their home to fulfill any and every expectation they have ever had for an abode.

These types of home buyers are what Barry Schwartz, author of The Paradox of Choice, describes as “maximizers.” Maximizers are absolutely certain that there is a perfect house out there for them, and they will not be satisfied until they find the house that meets all of their requirements.

Not only will looking for perfection in this way make your home buying experience prolonged and frustrating, but it also opens you up to overspending. Once you do find a house that fits your criteria, you will feel justified in spending any amount of money in order to make it yours.

But there is no such thing as a perfect house, and even once you’ve found “perfection,” you’ll find aspects of the house you don’t like, and you’ll resent the amount of money you’ve spent.

A better way to view the home buying process is to be satisfied with a house that meets about five criteria that you deem to be most important. Not only will that open up your options, but it won’t set you up for disappointment.

4. Overestimating Your Ability to Perform Home Improvements

My husband and I are old house aficionados. We both grew up watching “This Old House” on weekends and have become the sort of tourists who drive around old neighborhoods to check out the architecture.

Because of that, we tend to fall for old houses when we’re in the market to buy. The problem, of course, is that our price ranges run to the “fixer-upper” end of the old house spectrum. Thankfully, my husband is an engineer and actually knows how to fix many things. (I excel at supervising him.) If it were up to me, however, I would not be able to afford even the inexpensive old houses we’re drawn to, since I simply do not have the handy-woman skills (or inclination) to handle repairs and improvements. (See also: DIY Home Improvement: 10 Free Options for Training and Advice)

After years of watching Bob Vila and Norm Abram, not to mention all those successful property flippers on TV, many of us may feel more confident in our abilities to handle home repairs and maintenance than we should. This is actually a symptom of the cognitive bias known as the overconfidence effect. Basically, we overestimate our ability to handle tasks.

Anyone who has ever gotten hip-deep in a home improvement project before realizing it’s beyond their abilities (like me, for example) can tell you that having to call in professionals at that point makes your project far more expensive than it would have been had you simply called in the pros from the beginning.

Basically, if you are tempted by a house that will require you to strap on the tool belt as of day one, stop and think about whether you already own a tool belt. If you have to buy one for the occasion (or locate and dust off the one your father-in-law gave you several years ago), then you should probably step away from the home purchase. Know your limitations.

Avoiding Emotional Decisions

While emotions should certainly be a part of your home-buying decision process, it should not be what is driving your purchase. You will have to live with your decision for years, and you’ll be much better off without indulging your emotional side and ignoring the rational reasons why a particular house might end up being more headache than dream home.

Did emotions influence your home — or any other — purchase?

 

Acutec Home Inspectors provides Home Inspection services in New Orleans, Slidell, Covington, Mandeville, Abita Springs, Hammond, Pontchatoula, Pearl River, Kenner, Bogalusa, Lacombe and all areas in-between.  We offer a full service Home Inspection Service and maintain proper insurance and a license with the LSBHI Home Inspection Board.  Our home inspectors are trained and will perform your Home Inspection service and provide a professional report in a timely manner.
Call us today at 985-290-8993

10 Home Checks to Prepare for the Warmer Months

file0001475476069Home’s can take a bad hit during the winter, particularly after this year’s harsh winter. Seasonal damage to a home isn’t always easily visible, but if it’s not repaired, spring and summer storms can add to the problems, says Paul Sullivan, National Association of Home Builder’s Remodelers chair.

NAHB provides home owners with the following 10 tips for preparing a home for the warmer months ahead:

1. Inspect the roof. Roofs should be checked for any loose, warped, or missing shingles. Also, home owners should check the chimney flashing and skylight seals are intact.

2. Clean and repair gutters. Home owners should clear winter storm debris from gutters and downspouts. Also, they should doublecheck that they are still securely attached to the house. Blocked or loose gutters can allow water to seep into your home and damage the trim, according to NAHB.

3. Check for any leaks. The most common culprits for “hidden” leaks: Attics, crawl spaces, and washing machine hoses. Also, look under sinks for damage from frozen pipes, and check your water heater for signs of corrosion.

4. Clear exterior drains. Remove any leaves from underground or exterior drains to prevent any backups from rain and storms.

5. Inspect siding. Inspect siding for pieces that may have come loose during winter storms.

6. Check window and door seals. Examine the exterior caulking on door and window seals to ensure it remains watertight.

7. Patch cracks. Patch cracks in concrete driveways, sidewalks, and steps to keep water out and prevent further expansion.

8. Paint the exterior. This is a good time to paint or touch up the paint on the exterior to help protect it from the weather.

9. Inspect the HVAC. Hire a qualified technician to service the home’s HVAC system to make sure it is running properly. Also, this is a good time for home owners to replace their HVAC filters.

10. Check the home’s grading. Ensure the grading of the yard slopes away from the home’s foundation to keep excess moisture at bay.

 

Acutec Home Inspectors provides Home Inspection services in New Orleans, Slidell, Covington, Mandeville, Abita Springs, Hammond, Pontchatoula, Pearl River, Kenner, Bogalusa, Lacombe and all areas in-between.  We offer a full service Home Inspection Service and maintain proper insurance and a license with the LSBHI Home Inspection Board.  Our home inspectors are trained and will perform your Home Inspection service and provide a professional report in a timely manner.
Call us today at 985-290-8993

Home inspections. You should get one!

ANGIE’S LIST GUIDE TO
Home inspections

For most of us, our home is the biggest investment we will ever make. For those preparing to buy, a quality home inspection is key. An inspection is usually required for a home purchase. A quality home inspector will look at every nook and cranny to gauge structure stability, present and potential dangers. But remember, a home inspection is not a guarantee or a warranty – it may not find everything.
How to hire a home inspector
  • Do your homework: While many homebuyers hire a home inspector by their real estate agent, you can hire your own, but be sure to check them out. Ask to see proof of state certification or proof of membership in the National Associations of Certified Home Inspectors (NACHI), National Association of Home Inspectors(NAHI) or the American Society of Home Inspectors (ASHI).
  • Experience: Both NAHI and ASHI require a minimum of 250 inspections, however most experienced professionals will say it’s better to find someone who’s performed at least 1,000 inspections and has at least three-to-five years of full-time experience.
  • Licensing & Insurance: Ask to see proof of licensing if your state requires home inspectors to be licensed, and inquire about proof of general liability insurance as well as and errors and omission (E&O) insurance.
  • Costs: Home inspections generally cost at least $400, and typically take three to four hours. The costs will vary depending on such factors as the age and size of a home.
  • Be involved: While it’s not required that you attend the inspection, you should attend the inspection to discuss expectations and findings if necessary.
  • Know what to look for. This includes structural problems; roof damage; fire hazards, such as improperly vented chimney flues; electrical safety issues, including old wiring; and problems with plumbing and major appliances, like the HVAC system and hot water heater. Inspectors should physically crawl the attic and crawl space, if possible, rather than just taking a quick look around from the opening or doorway.
  • Read the report: Many inspectors provide the report the same day as the inspection. The report should be thorough and easy to understand and should include narrative accounts of the inspector’s findings that are specific to your house, along with pictures and diagrams. Many inspectors will also include photographs with their reports. Keep in mind that few houses are perfect, so you should expect some issues to be found. Don’t hesitate to question your inspector about the report.
  • Home inspections aren’t just necessary for old homes: Newer homes can have just as many problems as an older home. And, if you are building a home, inspections at key points during construction should be a part of the process.
  • Useful info: A home inspection report reveals problems that need to be fixed. You might use this information to renegotiate the price that you originally offered or you may be prepared to adjust your selling price.
How to hire a home inspector
  • Do your homework: While many homebuyers hire a home inspector by their real estate agent, you can hire your own, but be sure to check them out. Ask to see proof of state certification or proof of membership in the National Associations of Certified Home Inspectors (NACHI), National Association of Home Inspectors(NAHI) or the American Society of Home Inspectors (ASHI).
  • Experience: Both NAHI and ASHI require a minimum of 250 inspections, however most experienced professionals will say it’s better to find someone who’s performed at least 1,000 inspections and has at least three-to-five years of full-time experience.
  • Licensing & Insurance: Ask to see proof of licensing if your state requires home inspectors to be licensed, and inquire about proof of general liability insurance as well as and errors and omission (E&O) insurance.
  • Costs: Home inspections generally cost at least $400, and typically take three to four hours. The costs will vary depending on such factors as the age and size of a home.
  • Get involved: While it’s not required that you attend the inspection, you should attend the inspection to discuss expectations and findings.
  • Know what to look for. This includes structural problems; roof damage; fire hazards, such as improperly vented chimney flues; electrical safety issues, including old wiring; and problems with plumbing and major appliances, like the HVAC system and hot water heater. Inspectors should physically crawl the attic and crawl space, if possible, rather than just taking a quick look around from the opening or doorway.
  • Read the report: Many inspectors provide the report the same day as the inspection. The report should be thorough and easy to understand and should include narrative accounts of the inspector’s findings that are specific to your house, along with pictures and diagrams. Many inspectors will also include photographs with their reports. Keep in mind that few houses are perfect, so you should expect some issues to be found. Don’t hesitate to question your inspector about the report.
  • Home inspections aren’t just necessary for old homes: Newer homes can have just as many problems as an older home. And, if you are building a home, inspections at key points during construction should be a part of the process.
  • Useful info: A home inspection report reveals problems that need to be fixed. You might use this information to renegotiate the price that you originally offered or you may be prepared to adjust your selling price.
Pre-listing inspection

 A home inspection can be used as a fast-track selling tool. Getting a home inspected before it’s listed puts the cost on the seller or listing agent, but can provide a written report on the pre-sale condition of the property. It can also uncover conditions or situations that might compromise a sale.

Pre-listing inspections performed for the seller have become more common, as a way to move the sale process along. Pre-listing inspections are less common when the real estate market is strong.

When the real estate market is strong for sellers, it’s more common that buyers purchase the home inspection to make sure there aren’t any surprise defects and to substantiate the purchase price. In an up market, sellers often forgo a pre-listing inspectionbecause they know the buyer is less likely to walk away from the deal for fear of losing their chance to buy that property.

In weaker sales markets, when there are more properties available or fewer buyers, the buyer will sometimes use the inspection to verify condition and negotiate the price down to cover repair and improvement costs.

Pre-listing inspections have other benefits. They help the seller decide what areas to work on to improve the home’s appeal. They help the agent set the seller’s price expectation and can be used to substantiate a higher asking price. Agents will have fewer issues to negotiate at the 11th hour, and buyers may even waive hiring their own inspection.

By having a pre-listing inspection conducted, sellers can choose who does the inspection and they can offer more information about the home’s condition, maintenance and other factors. They can also make sure they have enough time to take care of any necessary repairs or improvements.

A pre-listing inspection may ease some of the stress buyers face, but it’s recommended that buyers eventually hire their own inspector, to be sure they have someone who is hired to look out for their concerns.

Home buyers should plan to shadow the home inspector as he or she goes through the home. It’s important to see first hand any problems and learn what it will take to fix them.

Inspection for new homes

 

Home inspectors will check for potential problems in hidden areas, such as the roof or the home’s plumbing system.

Home inspectors will check for potential problems all over the house. Here are the most important features in a home that need inspection:

  • Foundation and structure
  • Exterior and interior
  • Roof and attic
  • Plumbing
  • Insulation
  • Major electrical components

In the case of a newly built home, a good home inspector should identify any problems before a builder’s warranty expires.

Ask to join the inspector as he or she looks over the home. This gives you a chance to see any issues firsthand and to learn about your home’s structure. A typical inspection should cost between $200 and $400, depending on the type being done, the size of the home and other variables. A thorough home inspection should take at least two hours.

Once the inspection is done, you should receive a clearly worded, detailed report delivered within a few days. A report should list the condition of the home from top-to-bottom, inside and out, with recommendations from the inspector. Don’t hesitate to ask questions about the report if you have them.

After the inspection

At the end of an home inspection, speak to the service provider about the findings. If any issues seem complicated, ask to see the specific areas of concern. The service should include a detailed written report delivered within a few days of the inspection. An inspector will likely find some issues, even if they are minor. Make sure the inspector clarifies what’s important to get done versus what would be nice, but not essential, to do.

 

Acutec Home Inspectors provides Home Inspection services in New Orleans, Slidell, Covington, Mandeville, Abita Springs, Hammond, Pontchatoula, Pearl River, Kenner, Bogalusa, Lacombe and all areas in-between.  We offer a full service Home Inspection Service and maintain proper insurance and a license with the LSBHI Home Inspection Board.  Our home inspectors are trained and will perform your Home Inspection service and provide a professional report in a timely manner.
Call us today at 985-290-8993

How to improve your credit score.

Five ways to raise your credit score for a better mortgage

Five smart moves to improve your credit score for the best home loan

 

Following these tips can help you raise your credit score and save big on your mortgage.

Yahoo Homes By Lee NelsonApr 7, 2014 1:23 PM

Is your credit score a mystery to you? Well, it may be time to demystify that three-digit number, since a good credit score is a key factor in getting a better interest rate on your mortgage.

“Your credit score is the foundation of your financial health,” says Anthony Sprauve, senior consumer credit specialist for Fair Isaac Corporation (FICO), an analytics software company and owner of the FICO Score.  The FICO score is a standard for measuring credit risk in the credit card, banking, retail, and mortgage industries.

With a high credit score, you can secure more credit as well as a cheaper interest rate on a mortgage, says Sprauve. So, it’s worth investing the time and energy to improve it.

Read on for five little-known ways to improve your credit score and ultimately get you the best interest rate possible for a home loan.

Tip #1: Increase the limit on your credit cards.  Let’s say you have four credit cards in your billfold. Each of them has only a $1,000 limit. If you ask your credit card companies to increase those limits, it could give a nice boost to your credit score, says Jim Garnett, CEO of AskMrG Consulting, a financial consulting company in Ankeny, Iowa. But here’s the catch: You’ll still need to keep your credit card balance low.

For example, if you have a credit card with a limit of $5,000, but only use $500 of that credit, it shows that you are responsible. You don’t go crazy and buy everything in sight, he explains. In a lender’s eyes, that means you can handle a home loan and pay it off responsibly.

But if you have a $1,000 limit and still have that same $500 balance, it makes you seem less responsible. It communicates that you wouldn’t be able to manage a mortgage and could be more of a risk, Garnett says.

He warns, however, to beware of high limits. “People who get $10,000 and $15,000 credit card limits seem to have a sense that they have money in the bank. That’s not true,” he says.

In order to avoid that temptation, you should contact your credit card companies once you’ve secured your mortgage and have those limits reduced back down, he advises.

[Shopping for a mortgage or looking to refinance? Click to find the right lender now.]

Tip #2: Only use 7 percent of your revolving credit

Credit scores run from 300 to 850. About 25 percent of people with credit scores – approximately more than 50 million individuals –  have scores greater than 785, according to myFICO, a subsidiary of FICO.

So what can we learn from these high credit score achievers?

For starters, they have an average of four credit cards or loans with balances, notes myFICO. However, high credit achievers keep a low balance on those credit cards and loans.

In fact, high credit scorers only use an average of 7 percent of their available revolving credit. Revolving credit is a type of credit that has a predetermined credit or spending limit, like a credit card. And unlike a loan, a revolving account doesn’t automatically close once its balance reaches zero.

“While people with high FICO scores are not perfect, their consistently responsible financial behaviour pays off over time,” Sprauve says. “In a challenging economic period, the fact that we all have a chance to be high achievers is very good news. The lesson of these high achievers is that it’s never too late to rebuild and score high.”

Tip #3: Don’t cancel older credit cards

Credit cards that you have kept for years are like fine wine. They get better with age – as long as you pay your bills on time.

“If you had a particular card for 14 years, and you haven’t been late on a payment, that’s a good sign that you are responsible to the lenders,” Garnett says. If someone can responsibly pay their credit card bills on time, they’re probably more likely to pay their mortgage payments on time as well.

In fact, he adds, your credit cards don’t even need to have any balances on them to look good on paper, since they contribute to your overall available credit. On the other hand, closing old credit cards reduces your available credit and increases your balance-to-limit ratio. That’s a sign of risk that could lower your credit score and ultimately keep you from getting the best interest rate possible on your mortgage.

[Shopping for a mortgage or looking to refinance? Click to find the right lender now.]

Tip #4: Don’t apply for more than two credit cards each year

While keeping credit card accounts open can be a good thing, that doesn’t mean you should go and apply for a handful of credit cards at the same time, says Garnett.  When you apply for a credit card, you authorize lenders to make an inquiry for a copy of your credit report from a credit bureau. And a large number of inquiries, especially within a short period of time, means greater risk to a lender, notes myFICO.

What kind of risk do lenders see? Well, statistically, people with six or more inquiries on their credit reports can be up to eight times more likely to declare bankruptcy than people with no inquiries on their reports, according to myFICO.

Garnett sees this problem a lot with college students who apply for multiple credit cards just to get that free umbrella or free hat.

Credit inquiries can look especially risky to lenders if they see that you applied and were denied for a line of credit, Garnett says. “They wonder why you applied for all this credit and never received it.”

Tip #5: Give yourself at least six months to review and fix your credit report

Like anything worthwhile, improving your credit score will take time to improve. But you can’t change your credit score if you don’t know that something is wrong. And if you give yourself enough time, you can correct any mistakes and change any bad habits, says Sprauve.

“We recommend that you do things a year in advance. Nothing is going to be fixed or changed overnight,” Sprauve says. “The minimum is six months to get things changed around. But give yourself a year.”

You can order a credit report for free once a year from all three nationwide consumer credit reporting companies at annualcreditreport.com. Or you can order one for a small cost at MyFICO.com, TransUnion.com, Experian.com, or Equifax.com.

Just keep in mind that the FICO score has a different name at each credit reporting agency. At Equifax it is called the BEACON® SCORE, while at TransUnion and Experian it is called Classic FICO® Risk Score.

Next, you’ll need to review the reason codes, which detail why you have a certain score, says Garnett. “It will tell you if you had too many late payments or other reasons,” he explains. “They have a road map on how to improve your score.”

 

Acutec Home Inspectors provides Home Inspection services in New Orleans, Slidell, Covington, Mandeville, Abita Springs, Hammond, Pontchatoula, Pearl River, Kenner, Bogalusa, Lacombe and all areas in-between.  We offer a full service Home Inspection Service and maintain proper insurance and a license with the LSBHI Home Inspection Board.  Our home inspectors are trained and will perform your Home Inspection service and provide a professional report in a timely manner.
Call us today at 985-290-8993

Buying a Foreclosure by Nick Gromicko

 

Purchasing foreclosed homes in desirable areas at below-market values can be a sound investment strategy. Appreciation on their original prices may be tax-free.  Buying foreclosed rental properties can provide positive cash flow, as well as valuable tax deductions. On the other hand, buying a foreclosure involves homework, patience, and a certain amount of luck. For those wishing to get a bargain house through the foreclosure process, it’s best to learn the basics.

Foreclosed homes are often sold at auction

Four Ways to Buy a Foreclosed Home

  • presale is when the prospective buyer negotiates with the current owner before the house is foreclosed upon. Presale discounts can be considerable, but communicating and reasoning with the owner isn’t always easy; they might have legal problems, lost their phone service or electricity, or greet you with suspicion, having already been hounded and threatened by creditors. And after time and energy have been invested, the deal can fall through if the owner comes up with the money to repay their debt, or for any number of unexpected reasons. With persistence, however, the seasoned real estate investor can profit from presales. To find out about presales, you can try one of the following avenues:
    • Ask your local county court how to search new notices of default.
    • Find out if the County Recorder has data available online.
    • Look in the “legal notices” section of the newspaper for properties that are coming up for sale at public auction. Take note of the address, the property owner’s name, the tax ID, and whatever other information is contained in the ad.
  • A foreclosed home may be sold at a public auction, in which buyers can expect a discount of 10% to 25% of market value. Interested bidders are generally required to show proof of financing, and must have a minimum cash deposit before they are qualified to bid. It might be impossible to gain entry to inspect the interior, too, which makes this type of purchase risky. The local building department may have permit records that can clue you in to the building’s layout and appearance.
  • real estate-owned (REO) sale is a transaction where a foreclosed house is purchased directly from the bank. These properties typically wound up in the bank’s portfolio after failing to sell at auction. REO investments are relatively safe, as there are no tenants to evict or hidden liens and, unlike properties sold at public auction, buyers can usually receive a mortgage to pay for them. And purchasers might even get an unused house; the slow economy has left many builders at the end of their construction-loan periods without finding buyers for the homes, in which case the bank will foreclose on the brand new homes. Unfortunately, REOs are usually offered at near-market prices to recoup the costs of property taxes, maintenance and legal fees. To find REOs, try the following:
    • Check lenders’ websites, as they may have a list of their REOs, along with contact information for the appropriate real estate agent.
    • Call lenders and ask to speak to someone who handles their foreclosures.
    • Check newspapers.
  • The Department of Housing and Urban Development has tens of thousands of HUD homes whose previous owners defaulted on federally issued loans. After a period during which local governments gain exclusive buying privileges, they become available to individual buyers who pledge to live in the property. After another 10 days, investors may bid on the property. It’s difficult to make a profit on these houses, as HUD releases them at near-market values.

Tips for Foreclosure Purchases

  • Invest time in research and preparation. Those new to the field should spend some time learning the variables of foreclosure investing before making any purchases.
  • Budget carefully to prepare for the unexpected. The house may require unforeseen repairs, such as a leaky roof or unstable deck. The price tag of the home itself is often just the first of a series of fees. What if you planned on rental cash flow to cover the mortgage, but you can’t find a tenant?
  • Avoid buying a foreclosure sight-unseen. Try to see the house yourself before buying it, or hire someone to evaluate at it in your absence. Distant investors are buying up properties unseen in bulk, and they’re often unpleasantly surprised at how much they’ve been misled.
  • Evaluate the neighborhood. If the foreclosure is rife with problems, but it’s in a desirable area with high property resale values, it may still be worth it to make a low offer. An area with several foreclosures or a high crime rate can undermine an otherwise good deal, however.
  • Consider how long the house has been vacant. Building damage – and the costs required to make the house livable – generally increases with the time that has lapsed since the last tenant vacated. Pests are a particular issue in houses that have been empty for a long time, and plumbing defects and leaks increase in likelihood in such homes, as well.
  • Examine the landscaping. Left unchecked, trees can send their roots into the foundation, and vines can creep into the windows.
  • Has the house been professionally inspected by an InterNACHI inspector? Foreclosures can be notorious for damage suffered at the hands of past tenants, through both inadvertent and intentional vandalism and theft.

 

In summary, there are a number of ways to go about buying a foreclosed home, and buyers should exercise patience, persistence and careful planning before buying foreclosed properties.
Acutec Home Inspectors provides Home Inspection services in New Orleans, Slidell, Covington, Mandeville, Abita Springs, Hammond, Pontchatoula, Pearl River, Kenner, Bogalusa, Lacombe and all areas in-between.  We offer a full service Home Inspection Service and maintain proper insurance and a license with the LSBHI Home Inspection Board.  Our home inspectors are trained and will perform your Home Inspection service and provide a professional report in a timely manner.
Call us today at 985-290-8993

 

 

From Buying a Foreclosure – InterNACHI http://www.nachi.org/buying-foreclosure.htm#ixzz2bD0B8uNM

Burglar-Resistant Homes by Nick Gromicko and Kenton Shepard

There are a number of measures that homeowners can take to ensure that their homes are not attractive to burglars. If clients are concerned about break-ins, inspectors can pass on to them basic strategies for burglar-proofing their homes.
 

Some interesting statistics concerning break-ins in the United States:

  • InterNACHI estimates that theft makes up more than three-quarters of all reported crime. 
  • In 2005, law enforcement agencies reported more than 2 million burglary offenses.

According to a survey, burglars enter homes through the following locations:

 

  • 81% enter through the first floor;
  • 34% of burglars enter through the front door;
  • 23% enter through a first-floor window;
  • 22% enter through the back door
  • 9% enter through the garage;
  • 4% enter through the basement;
  • 4% enter through an unlocked entrance;
  • 2% enter through a storage area; and
  • 2% enter anywhere on the second floor

Exterior Doors

  • Doors should be made of steel or solid-core wood construction. Hollow-core wood doors are more easily broken than heavy, solid-core doors.
  • Doors should be free of signs of rot, cracks and warping.
  • Doors should be protected by quality deadbolt locks. Chain locks are not adequate substitutes for deadbolt locks, although chain locks may be used as additional protection.
  • If a mail slot is present, it should be equipped with a cage or box. Mail slots that are not equipped with cages or boxes have been used by burglars to enter homes.  Burglars can insert a contraption made of wire and cord into the mail slot and use it to open the lock from the inside, if no box or cage is present.
  • If a door is equipped with glass panes, they should be installed far from the lock. Otherwise, burglars can smash the glass and reach through the door to unlock the door.
  • Spare keys should not be hidden in obvious locations. Burglars are very good at finding keys that homeowners believe are cleverly hidden. The best place for a spare key is in the house of a trusted neighbor. If keys must be hidden near the door, they should not be placed in obvious locations, such as under a doormat, rock or planter.
  • A peephole can be installed in doors so homeowners can see who is on their doorstep before they open the door.
  • Clients should consider installing bump-resistant locks on their doors. “Bumping” is a technique developed recently that can open almost any standard lock with less effort than is required by lock-picking. This technique uses “bump keys,” which are normal keys with slight modifications. Lock companies such as Schlage, Primus and Medeco manufacture a number of locks that offer some bump-resistance.

Pet Doors

  • Pet doors can be used by burglars to enter homes. Some burglars have reached through pet doors in order to unlock the door. It is advisable to not have a pet door, but if one is necessary, it should be as small as possible and installed far from the lock.
  • A crafty burglar may convince or coerce a small child to crawl through a pet door and unlock the door. Also, some burglars are children.
  • Electronic pet doors are available that open only when the pet, equipped with a signaling device in their collar, approaches the door. These doors are designed to keep stray animals out of the home, and may provide protection against burglars, as well.

Sliding Glass Doors

  • They should be equipped with locks on their tops and bottoms.
  • They should not be able to be lifted from their frames.
  • A cut-off broom handle, or a similar device, can be laid into the door track to prevent it from being opened.

Illumination

  • Lights should be installed on the exterior of all four sides of the house. Burglars prefer darkness so they cannot be seen by neighbors or passersby.
  • When building occupants are not home, a few lights should be left on.
  • It is helpful to install exterior lights that are activated by motion sensors. Burglars that are suddenly illuminated may flee.

Windows

  • All windows should be composed of strong glass, such as laminated glass, and be in good operating order.
  • They can be installed with bars, grilles, grates or heavy-duty wire screening. Barred windows must be equipped with a quick-release mechanism so occupants can quickly escape during a fire.
  • Windows should not be hidden by landscaping or structures. If landscaping or structures cannot be moved, lighting can be installed around the windows.

Landscaping and Yard

  • Shrubs and trees should not obscure the view of entrances. Shielded entrances can provide cover for burglars while they attempt to enter the residence.
  • Fences are helpful burglar deterrents, although they should not be difficult to see through.

While the house is vacant:

  • A loud radio can be used to make burglars think someone is home. Timers can be used to activate radios and lights to make the home seem occupied.
  • A car should always be parked in the driveway. A neighbor’s car can be parked there so that it appears as if someone is home.
  • The lawn should be cut regularly. Uncut grass is a clue that no one is home.
Other Tips
  • Dogs are excellent burglar deterrents. For clients who cannot own dogs, they can place “Beware of Dog” signs around the yard for nearly the same effect.
  • If no security system is installed, the client can post security alarm stickers around the yard.
In summary, there are a number of tactics that inspectors can pass on to their clients that will help safeguard their homes from break-ins.
Acutec Home Inspectors provides Home Inspection services in New Orleans, Slidell, Covington, Mandeville, Abita Springs, Hammond, Pontchatoula, Pearl River, Kenner, Bogalusa, Lacombe and all areas in-between.  We offer a full service Home Inspection Service and maintain proper insurance and a license with the LSBHI Home Inspection Board.  Our home inspectors are trained and will perform your Home Inspection service and provide a professional report in a timely manner.
Call us today at 985-290-8993

 

 

From Burglar-Resistant Homes – InterNACHI http://www.nachi.org/burglar-resistant.htm#ixzz2bCyRj2v0

Installing Attic Insulation by Nick Gromicko and Barry Fowler

 

According to the EnergyStar™ Program, heating and cooling costs can be slashed by up to 20% per year by properly sealing and insulating the home. Insulating the attic should be a top priority for preventing heat loss because as heat rises, a critical amount of heat loss from the living areas of the home occurs through an unfinished attic.  During the summer months, heat trapped in the attic can reduce a home’s ability to keep cool, forcing occupants to further tax the home’s cooling system.

The aim should be to insulate the living space of the house while allowing the roof to remain the same temperature as the outside. This prevents cold outside air from traveling through the attic and into the living area of the home. In order to accomplish this, an adequate venting system must be in place to vent the roof by allowing air flow to enter through soffit-intake vents and out through ridge vents, gable vents or louver vents.
If there is currently a floor in the attic, it will be necessary to pull up pieces of the floor to install the insulation. In this case, it will be easier to use a blower and loose-fill insulation to effectively fill the spaces between the joists. If you choose to go with blown-in insulation, you can usually get free use of a blower when you purchase a certain amount of insulation.
When installing fiberglass insulation, make sure that you wear personal protective equipment, including a hat, gloves, and a face mask, as stray fiberglass material can be inhaled and cause irritation to the lungs, eyes and exposed skin.
Before you begin actually installing the insulation, there is some important preparation involved in order to ensure that the insulation is applied properly to prevent hazards and to achieve maximum effectiveness.

Step 1: Install Roof Baffles

In order to maintain the free flow of outside air, it is recommended that polystyrene or plastic roof baffles are installed where the joists meet the rafters. These can be stapled into place.

 

Step 2: Place Baffles Around Electrical Fixtures

Next, place baffles around any electrical fixtures (lights, receptacles, etc.), since these may become hot while in use. Hold the baffles in place by cross-sectioning the rafters with 2x4s placed at a 3-inch clearance around the fixture.  Cut the polystyrene board to fit around the fixture and inside the wood square you have just created.

Step 3: Install a Vapor Barrier
If you are installing insulation with a vapor barrier, make sure it faces the interior of the house. Another option for a vapor barrier is to take sheets of plastic and lay them between the ceiling joists.  Then, using a staple gun, tack them to the sides of the joists.
Step 4:  Apply the Insulation

Begin by cutting long strips of fiberglass to measure, and lay them in between the joists. Do not bunch or compress the material; this will reduce the insulative effect.

 

If you are not planning to put in an attic floor, a second layer of insulation may be laid at 90º to the first layer. Do not lay in a second moisture barrier, as moisture could potentially be trapped between the two layers. This second layer of insulation will make it easier to obtain the recommended R-value. In colder climates, an R-value of 49 is recommended for adequate attic insulation. In warmer climates, an R-value of 30 is recommended. Fiberglass insulation has an R-value of rough

ly 3 per inch of thickness; cellulose  has an R-value of roughly 4 per inch, but it doesn’t retain its R-value rating as well as fiberglass.

 

If an attic floor is in place, it will be easier to use a blower to insert cellulose insulation into the spaces. The best way to achieve this is to carefully select pieces of the floor and remove them in such a manner that you will have access to all of the spaces in between the joists. Run the blower hose up into the attic. A helper may be needed to control the blower. Blow the insulation into the spaces between the joists, taking care not to blow insulation near electrical fixtures. Replace any flooring pieces that were removed.

Loose-fill insulation, either fiberglass or cellulose, is also a good option in cases where there is no attic floor. In such circumstances, you won’t need a blower, and can simply place the insulation between the joists by hand. You may also wish to even out the spread with a notched leveler.

When inspecting an attic, ensuring that there is a free flow of outside air from the soffits to the roof vents is key to a well-functioning insulation system. The lack of adequate ventilation in insulated attics is a common defect. When inspecting the attic, look behind the baffles to see if there is any misplaced insulation obstructing the natural air flow, and check the roof vents to make sure that outside air is exhausting properly. Check for a moisture barrier under the insulation.  Also, look for spots where the insulation is compacted; it may need to be fluffed out.  In the case of loose-fill insulation, check for any thinly spread areas that may need topping up. Finally, look for dirty spots in the insulation where incoming air is admitting dust into the material.
Acutec Home Inspectors provides Home Inspection services in New Orleans, Slidell, Covington, Mandeville, Abita Springs, Hammond, Pontchatoula, Pearl River, Kenner, Bogalusa, Lacombe and all areas in-between.  We offer a full service Home Inspection Service and maintain proper insurance and a license with the LSBHI Home Inspection Board.  Our home inspectors are trained and will perform your Home Inspection service and provide a professional report in a timely manner.
Call us today at 985-290-8993

 

 

From Installing Attic Insulation – InterNACHI http://www.nachi.org/installing-attic-insulation.htm#ixzz2bCxLSWOt