Dean Graziosi | Dean Graziosi Real Estate | Dean Graziosi Investment

All buyers know the importance of having an inspection done on any property they are considering purchasing.  A home inspection consists of a certified inspector going through the house to look for any signs of existing problems.  A thorough home inspector will check the exterior, electrical, roof, plumbing, garage, heating and foundation of the home.  After the inspection is done the home inspector will inform you of their findings and tell you if all of the systems in the home are in proper working condition, they will also notify you of any problems that they had found during their inspection. 

Once you have been informed on what repairs the property will need once you take possession it is up to you to decide if the cost is worth it or if it will put you too far over budget to proceed with the purchase.  This is also the time to determine if the asking price for the home is fair based on what the inspection revealed.  The information gathered from an inspection is important in helping you see a realistic picture of how much money you will need to put into the property once you buy it. 

What’s not included in the inspection report is the cost of the repairs or upgrades you’ll need to make to the home once you move in.  To determine these numbers it is the buyer’s responsibility to obtain estimates from professionals detailing what is included in the estimate and to what extent their work is guaranteed.  Before purchasing a home that has issues it is important that buyers are aware of the realistic money they will need to spend in the near future to make the home livable, in older homes this may include upgrading the electrical system or replacing an older cooling unit.

Other things that should be included in your home inspection are radon tests, mold tests, signs of termites, soil tests and finding out if any additions were done using the proper permits.  Some of these items aren’t included in your basic inspection fee, inform your inspector of any additional items you would like inspected prior to inspection day and they can inform you whether or not these additional tests are included or how much extra you will need to spend to have them done.  No matter who does them, these tests should be included in helping you determine whether the house you’re interested in is worth the asking price.

A home inspection is something that should be done even though they are optional on the buyer’s part.  It is well worth the additional expense to have the property thoroughly looked at before you finalize any agreements.  

Ever since the housing crisis began, you have probably been hearing about credit scores. Credit is needed for just about everything. It is much easier to get a new car loan, an installment loan for a home repair, or a mortgage for your dream home if you have a good credit history. The problem is that the whole idea of credit is confusing to many people and it is not always easy to find out exactly what your credit score is or what it means. One of the biggest mysteries of credit is how exactly it affects a mortgage for a home.

There is no debating the fact that the higher your credit score the better deals you can get. Where mortgages are concerned, you are able to get mortgages that have lower interest rates, higher borrowing limits, and lower monthly payments. The lower interest rates that you pay with a better score is what lowers the monthly payments that you make. Interest is money that is added on to the money that you borrow and increases the amount that you have to pay back over the life of the loan. The lower the rate the less you have to pay to borrow the money.

Credit tells your lenders how much they can trust you. High scores mean lenders will be willing to lend you money while low scores mean they will not want to. Your score, called the FICO score, is determined using a number of factors and a specific formula. The credit bureaus such as TransUnion take these factors into account when assigning a credit score. The factors are your previous performance and how often you paid creditors on time, the amount of money you owe, how long you have been using credit, and what kinds of credit you have. Credit inquiries also count but to a much smaller degree. Your past payment history is the most important factor. Using the FICO score, a lender will use the score and reason codes to decide where you fall on their lending guidelines.

Scores range from 350 to 950. Very few people actually have scores in the 900s. Those who get the best loans have scores that are at least 800. Many lenders require borrowers to have scores in the 700s. However, there are lenders who will consider lending money to you for a mortgage even if you are considered to have poor credit, which is usually considered to be anything below 500, though you will end up paying more in interest. Time is the best method of getting a higher credit score. Be sure to pay your bills on time, pay off any debts you owe, and your score should climb.