Blog & Tips

Here are some helpful tips that will help you in the future.
 

• Ask for a floor plan, if available
• Ask for a copy of the building / electrical and mechanical permits. If there were any problems, ask for documentation that the problems have been solved.
• Ask, if there are any additions, which would require a permit
• If there is a septic system, ask for the permit and the drawing with the exact location of the tank and the drain field. Ask when the septic was pumped the last time and by whom.
• If there is a private well on the property, ask for the documentations, permits and water test results
• Ask the seller to provide you with a drawing that shows the exact location of all underground electric wires, water lines, sewer lines, underground fuel tanks and fuel lines. This is very important in case there is no basement or crawlspace and the lines are underneath a concrete slab.
• Ask for a list of all contractors who’ve been involved to build the house or been involved in major repairs, like “roof is 5 years old – was installed by roofer ……, the shingles are Owens Cornings …..”
• Ask the seller to mark the property lines
• Ask the seller when the HVAC or any heating units were serviced the last time and by whom.
• Get any documentations, which are necessary for possible warranty claims for any components or materials used.
• If the home is located within a gated community or HOA ask for a copy of the covenants and a statement that there are no violations against the covenants.

 

Every home is different; therefore, this list is just a recommendation, some documents won’t be available and in some cases additional documents should be requested. 

We at Home Inspection Tennessee know that the Corona Virus is a serious bump. However, life will go on, and changes should be adopted.
Finding your new home should start with doing your homework before you go out and physically look at the listings.
In general, the Realtor websites don’t give you too much information and are very one-sided - of course, they usually work for the seller.
Check out public information, here in TN you can go to assessment.cot.tn.gov/RE_Assessment/
You get information about the value on which the property tax is based. You even can check the approx. property lines. Don’t just focus on one house, pick out three or four. Then ask the Realtor for more information, like

• is the home already inspected?
• the complete disclosure etc.
• the HVAC and water heater model and serial numbers, with them you can check the age and size online, and see if they should be replaced.

 
You shouldn’t sign a contract or offer without knowing what you get.
 
I don’t care what they tell you. Would you make a down payment for a car before you can test drive it? Nobody would. So why should you pay huge down payments without knowing what you get?
 
In some cases, they will tell you “the owner doesn’t know”. Well, if he doesn’t know what he’s selling, how did they figure out the price?
Especially during these hard times, you should have all information together before you visit a potential object, and if necessary – hire a home inspector to fill in the blanks.
 
Unfortunately, these days the buyer is stuck with the costs for the home inspection, even if the actual condition of the advertised home is totally different than the listing. We see it all the time that buyers end up paying for several inspections.
 
Just tell the Realtor that you want all information before you spend your money and time. I’m sure they understand your concerns and help you to stay safe during the virus situation.
 
Also, if you hire a home inspector, provide as much information as you can, like – it must be wheel chair accessible, if you have allergies, or indoor pets. A good home inspector will report on the situation he finds and address your concerns.
 
This is what we at Home Inspection Tennessee always did. We are here to assist you, we will report what we find, regardless if they like us or not. And yes, we will be more than happy to inspect your new dream home. We are highly qualified, affordable, available, and accurate.
 
A recommended checklist for home buyers will be added tomorrow, stay tuned.

Thank you Kristin Louis for letting us share your great article. More of her articles and tips can be found at www.parentingwithkris.com

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It’s true that having children changes everything. And while this typically means for the better, having little ones around does pose a challenge when it’s time to upgrade your living arrangement. When you have your house on the market and you also have children, keeping it staged and ready to show at a moment’s notice means you have to put in a bit of preemptive work. Don’t bow your head in defeat as you step on your third Lego of the morning. Instead, grab your coffee and read on for tips on how to make it all work out.
 
Purge Everything Except the Necessities
 
Spend a day or two removing everything in your home that’s not necessary for health and happiness. Start with your stuff first; this will alert your children of what’s coming their way and might even encourage them to start weeding through their belongings before you head to their bedroom. Toss out the trash first — old papers, broken hairbands, and cords that you will never use can head straight for a garbage bag. Next, invest in sturdy storage bins — you can pick them up at Lowe's or Home Depot — to store the things you don’t want to get rid of but that you don’t need at the moment. Off-season clothing and holiday decor are a few suggestions.
 
Now You Can Start Cleaning
 
Once you are left with nothing but items that you’ll need within the next 30 days or so, start cleaning. The American Cleaning Institute suggests that you prioritize the rooms that buyers pay the closest attention to. This will be your living and dining rooms, along with the kitchen and bathrooms. Deep clean each area, which should include dusting, sweeping, mopping, shampooing the carpet, and searching for dirt and grime. The kids can help, too; hand them a damp washcloth and let them get to work wiping down the baseboards. You can even make a dust bunny puppet to make the process fun and engaging. Make a chore chart of items that need to be done every day, and only allow playtime/video game time once they are done.
 
Prepare for an Open House
 
Chances are, your realtor will suggest hosting an open house within the first week of your home hitting the MLS. If everything is already clean, it should not take that much time to get ready for the big day. Put together a checklist to ensure that all of your proverbial Is are dotted and your Ts are crossed. Redfin notes that this should include things like opening the windows to bring in natural light, reducing odors, and securing valuables. You’ll also want to make arrangements for your pets; ideally, you can keep animals out of the house in the days before your open house.
 
Don’t Forget About the Exterior
 
Even if you are selling your home during the cooler months, there are likely toys scattered about your lawn. If possible, put all of these in one place, preferably to the side of the home where they are not immediately visible. Alternately, if you have a playhouse or trampoline, you can store larger items in and under these to get them out of sight. Make sure, however, to remove bicycles and other large objects from under the trampoline before the kids start to play again.
 
Play Up the School Zone
 
If you’re moving out of your home because you need more room, you can almost bet that another family is going to move in behind you. If you live in a great school zone, make sure to leave information out and available; GreatSchools.org and Niche are excellent resources.
 
Selling a house when you have kids isn’t impossible. It is going to take work, that’s for sure. But the time and energy that you put into it now can turn into hundreds or thousands of dollars on closing day, which might come even faster when things are neat and tidy.
 
Image via Pexels
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This article was written by Christy Rakoczy and is courtesy of LendEDU
​lendedu.com/blog/how-to-calculate-home-equity/
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Most homeowners have a mortgage, which means they don’t actually own their home — at least not all of it. However, when you provide a down payment at the time of purchase, make your monthly mortgage payments, or your home rises in value compared to what you owe, you acquire some value in your home that doesn’t belong to the bank. That’s your home equity.
Knowing how much equity you have in your home can provide insight into your net worth. It also lets you estimate how much profit you’d be left with if you sold your home and how much money you could access by taking out a home equity loan or a home equity line of credit (HELOC).

This guide will show you exactly how to calculate your home equity and why it’s important.
In this guide:

• How to Calculate Your Home Equity
• How to Calculate Your LTV
• How to Tell If You Qualify for a Home Equity Loan or HELOC
• Should I Choose a Home Equity Loan or HELOC?
• Frequently Asked Questions

How to Calculate Your Home EquityIf you own your home free and clear, your home equity is easy to calculate. It’s equal to the total appraised value of your home. You own the entire house and the bank owns none of it. But if you have one or more mortgages or other liens against your home, your equity is equal to the current appraised value of your home minus the remaining balance on your loans.
When doing this calculation, it’s important to note the current appraised value of your home is likely different from the amount you originally paid. If property values have been rising in your area, the appraised value could actually be much higher — but if property values have fallen, the appraised value may be lower. This was common during the 2008 financial crisis when real estate values tumbled.
>> Read more: Home Equity Loan Calculator

For example, if you owe $200,000 on your mortgage but your home’s appraised value is just $175,000, you’d actually have negative equity of $25,000.
It’s also important to realize the equity you have grows with each mortgage payment you make. It increases based on the amount of principal you pay down — the interest portion of your payment goes directly to your lender as part of the cost of borrowing, so it doesn’t actually reduce your outstanding balance.
However, it’s not enough to know how to calculate the equity in your home. You should also learn how to calculate your loan-to-value ratio.

How to Calculate Your Loan-to-Value Ratio
Your loan-to-value ratio shows the percentage of your home’s total value that you still owe. You need to know this because lenders consider your loan-to-value ratio when deciding what kinds of loans — such as mortgages, home equity loans, and home equity lines of credit — you might be eligible for.
Your loan-to-value ratio also determines the interest rate you’d pay if you borrowed against the equity in your home, as well as whether you’ll need to pay for private mortgage insurance, which protects the lender in the event you default on your loan.
To calculate your loan-to-value ratio, you’ll divide your current loan balance by the current appraised value of your home. For example, if you owe $140,000 on a $250,000 home, you’d divide $140,000 by $250,000 to get a loan-to-value ratio of .56. Loan-to-value ratios are usually expressed as a percentage, so multiply this number by 100 to get your LTV ratio of 56%.

How to Tell If You Qualify for a Home Equity Loan or HELOC
Both home equity loans and home equity lines of credit are a source of affordable financing based on your property’s assessed value. To qualify for either type of financing, you’ll need to have:

• A total loan-to-value ratio that meets the lender’s criteria (usually 85% or less);
• A debt-to-income ratio of 43% or less;
• A minimum credit score of 620 or higher; and
• An income sufficient enough to repay the home equity loan as well as other debts you have.

Qualifications vary by lender, but the better your credit score, the higher your income, and the more equity you have in your home, the more likely it is you’ll be able to obtain a home equity loan or line of credit with favorable terms.
>> Read More: Home Equity Loan and HELOC Requirements

Should I Choose a Home Equity Loan or HELOC?
Although home equity loans and HELOCs both let you tap into home equity, they work a bit differently. A home equity loan allows you to borrow a set amount of money upfront. The loan has either a fixed or variable interest rate and is repaid over a specified time period. A HELOC, on the other hand, gives you a line of credit. This means you can borrow as much or as little as you need at any given time, up to your total approved credit line. Usually, HELOCs come with variable interest rates.

Think about the pros and cons of home equity loans vs. HELOCs before deciding which one is better for you. You might also consider a second mortgage or cash-out refinance as another source of funding.

Before taking out any of these loans, though, you should be aware you’re taking a big risk. If you become unable to repay the lender, your risk losing your home to foreclosure. If home prices fall and you end up owing more than your house is worth, selling could also become impossible unless you have enough cash to pay the difference between what you can sell your home for and what you owe — or unless you’re willing to ruin your credit and get your lender to agree to a short sale.
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These risks may be worth it because of the lower interest rates associated with these loans, especially compared to credit cards and personal loans. If you’re using the loan to pay down existing high-interest debt or to pay for home improvements, you may decide that borrowing against your home equity makes sense.

Every homeowner is well-acquainted with paying a down payment, mortgage, and insurance. In fact, most people even know to expect certain costs for remodeling and major home repairs at some point down the road. One aspect that eludes many homeowners at the outset, however, is the cost of keeping their home in shape.
 
Home maintenance is an expense that all homeowners can expect, but it seems to sneak up on us every time a minor repair is needed. Since bringing in a professional for every little thing can quickly get expensive, we’ve listed five simple home maintenance tasks that can be done DIY, which will ultimately save you some serious money.
 
That Dragging HVAC System
 
HVAC systems are complex, and there isn’t a lot that can be done DIY to fix them. One thing you can do, however, is to change the air filter regularly. Many times, when the HVAC is dragging or seems not to be working normally, it’s only because the filter is dirty or clogged. When changing the filter, you want to ensure you get the right size. Look on the side of the filter to see what size you need to replace it with, and if you need a custom-sized filter, an online tool like this one can help you find the right one.
 
That Hole in the Wall from Your Doorknob
 
Have you ever slammed the door into the wall and created a nice hole? This can usually be fixed quite easily. Purchase a drywall patch that will fit the hole with at least an inch of excess around the area. Place the patch around the hole, cover it with spackling, allow it to dry, and sand it smooth. You may need to do this a few times to get the patched area flush with the surrounding area. Once flush, prime and paint to blend it in with the rest of the wall.
 
That Broken Drawer/Cabinet Handle
 
When a drawer or cabinet handle is loose, it’s usually because the screw holes in the wood are stripped out. To fix this problem, you just need wood glue, toothpicks, and a screwdriver. Remove the handle and stick a toothpick into the screw hole to see how deep it is. Then, apply the necessary amount of glue to the toothpick, and insert the toothpick into the screw hole. Use as many toothpicks as it takes to fill the hole. Once the glue dries, break off the exposed ends and screw the handle back on. Problem solved!
 
That Leaky Faucet
 
A leaky faucet is one of the sneakiest wallet killers in your home, as it can raise your water bill significantly. In most cases, it’s simply a loose packing nut. Try removing the faucet handle and tightening the packing nut underneath with a wrench.
 
If that doesn’t stop the leak, try these steps:
 

• Turn off the water.
• Take off the stem assembly under the handle.
• Replace the old washer at the base with a new one.
• Put the stem assembly back on.
• Turn on the water.

 
Those Elusive Studs in the Wall
 
Knowing how to locate studs is essential for any kind of work or decorating that involve the walls in your home. The easiest way to find a stud is to use an electric stud-finder, which you glide along the wall, and it alerts you when it runs across a stud. If you don’t have a stud-finder available, you’ll need to tap on the wall to find the studs. Drywall should sound hollow when there is no stud and more solid when there is a stud. To give you a starting point, know that studs are typically about 16 inches apart from one another.
 
You can cut down on the sneaky home maintenance costs that rack up over time. These common home repairs are a good place to start, but it’s important to do your research so you can become equipped to handle a variety of issues that arise. The more you learn how to do maintenance projects yourself, the more money you will save.