Buying a home could be the largest single investment you will ever make. To minimize unpleasant surprises and unexpected difficulties, you’ll want to learn as much as you can about the newly constructed or existing house before you buy it with a home inspection.

A home inspection may identify the need for major repairs or builder oversights, as well as the need for maintenance to keep it in good shape. After the home inspection, you will know more about the house, which will allow you to make decisions with confidence.

Here are the most common home inspection myths:

• You can spot out any problems yourself – Not necessarily! Unless you have the same experience a well-qualified home inspector has, hire one! They have seen hundreds even thousands of homes and know exactly what to look for. They can also tell you quick fix tricks and if it looks like someone is trying to cover up any issues.
• You have a family member that can do it – Even if your brother, father or son have the same building experience as an inspector, do they have the expertise required to do a thorough home inspection investigation? If he misses a major problem with the home that ends up costing you thousands down the road, will it create hard feelings?
• You’ve already fallen in love with the home – Rule number one: Don’t get emotionally attached! An inspector will give you the facts you need to know before you make one of the largest purchases you’ll make in your lifetime.
• I don’t mind dealing with any issues that come up later down the road – Are you sure? An inspection will uncover any safety issues that will help you prioritize repairs. It is better to go into a large transaction like this with your eyes wide open.
• I don’t need a home inspection because the house is brand new – Unfortunately new construction isn’t always problem free! No matter how old or new the house is, get an inspection.

Whether you go with a conventional loan, FHA loan or a VA loan, there are different features that many loans offer.

The following are some of those features:

Fixed Rate – A mortgage with a fixed rate means your interest and mortgage payments remain the same, or “fixed”, through the entire loan. Typically the loans are for 15 to 30 years. A 15 year loan will obviously have higher monthly payments but you will end up saving more than half of the interest costs than a 30 year fixed loan and pay it off in half the time.

Adjustable Rate – This type of mortgage is also known as an ARM. The interest rate on an ARM fluctuates during the entire life of the loan. Your interest rate will be modified based on a predetermined economic index established at the beginning of the loan. Most of the time a max is set on the interest rate to avoid enormous increases. An ARM is usually safe only if your budget can afford to handle fluctuating payments.

Payment Option Adjustable Rate – This type of loan accommodates a households fluctuating cash flow which include minimum payment options, interest only payment options and others. You will want to thoroughly understand these types of loans because you need to make sure you are prepared for a sudden increase in payment.

Balloon Rate – A balloon mortgage has a fixed rate but for a shorter term than 15 or 30 years. At the end of the balloon rate (the fixed rate), the borrower must pay the remaining lump sum or refinance. If the buyer is purchasing unimproved property that they plan to build on in less than ten years, a balloon mortgage may be a good option.

Talk to a lending professional to find out what the best type of loan for you is. We highly recommend knowing exactly what you are getting into when you apply for a home loan.

The Lawhead Team would like to share some helpful and easy home maintenance tips that even the least handy person can do themselves!

• Lights flicker – Many times a bulb will be loose. If groups of lights flicker, connections at the electrical panel may be loose, causing the power to arc which can cause fires! Shut off the circuits in your home and tighten loose connections within switch boxes.
• Refilling toilet tank – If you hear your toilet refilling on its own, check the chain. It may be too tight preventing the flapper from fully sealing. If that doesn’t work, replace the valve and flapper inside the toilet tank.
• Musty odors in your home – Mildew may be growing in your home where condensation is forming. Basements are most common for mildew. Keep your surfaces dry and increase air movement with a fan.
• Smelly sink – disinfect your drain by pouring a bottle of hydrogen peroxide down the sink.
• Food spoiling too quickly in the refrigerator – Your refrigerator temperature may be off. Too high or too low of temperature will spoil your food. If your fridge doesn’t already have a thermometer, purchase one and make sure each shelf stays between 37-40 degrees Fahrenheit.
• Breezy in the house – If your home seems drafty and all the windows and doors are closed, check your window and door’s seals. Use caulking to fill in any cracks or holes that may be letting in cool or hot air.
• Change Your AC Filter – Dirty filters kill your AC’s efficiency, so install a new one in your home every month during the cooling season for central and window units (or clean them if you’ve got the washable type).

You can open windows, let some fresh air in, and ORGANIZE when doing your spring cleaning!

We don’t know about you but as much as we love spring cleaning, we HATE buying cleaning products even more, YUCK! And that smell of bleach, no thank you. We would like to share with our readers how to make all your cleaning products for spring cleaning. Keep reading for some of our favorite recipes:

Wood Cleaner – Equal parts olive oil and white vinegar, shake, spray, and wipe off. The oil makes it shinny and is a dust repellent and the vinegar gets rid of the germs.

Counter Top, window, or any surface cleaner – White vinegar. I use it straight but you can add water if the smell is too strong. A perfect inexpensive solution for spring cleaning!

Shower/bath cleaner – This is our FAVORITE spring cleaning cleaner. Equal parts Dawn dish soap and white vinegar. Shake, spray, and take a break for about 20 minutes (the smell is STRONG). Come back and wipe off. Our shower doors look BRAND new every time we do this.

As you can tell, white vinegar is definitely our friend when it comes to spring cleaning.  We like to use it for everything. Now, if you have done this much work in a day, you deserve a drink!

Happy spring cleaning!

While Southern California only experiences a relatively mild winter compared to the rest of the country, it is nice to have your fireplace roaring as it storms outside.

If you have a wood burning fireplace at home, there are some important maintenance tips we would like to share with our readers:

• Clean your wood-burning fireplace’s interior including its floor regularly. Sweep out or vacuum up cold ashes. Make sure to wear a dust mask and gloves when cleaning the fireplace.
• Check the interior of your wood-burning fireplace’s chimney for creosote buildup. Creosote is a dark colored or black substance that can accumulate if wood isn’t burning completely. It is flammable and, therefore, a buildup of creosote is a fire hazard and should be cleaned away with a creosote remover as soon as possible.
• Hire a professional chimney sweep to inspect your wood-burning fireplace at least once a year and more often if creosote builds up on the chimney walls rapidly.
• Inspect your chimney cap regularly. A chimney cap is used to keep out rain, birds, squirrels and other animals, and other debris from entering the chimney.
• Watch for soot buildup in the chimney of your wood-burning fireplace. Soot is softer than creosote, flammable and should be cleaned out of the chimney regularly.
• If possible, burn hardwoods like maple, oak, ash and birch. The advantages of hardwoods are that they burn hot and long; have less pitch and sap, making them cleaner to handle; and tend to cause less creosote buildup. On the other hand, they generally are more expensive than softwoods.
• Take caution anytime there is smoke indoors from your wood-burning fireplace and immediately correct any problems that you find. Possible causes of smoke are a dirty chimney with creosote or soot buildup, other debris in the chimney, a damper that isn’t open or is only partly open and wood that is not burning completely.

First things first, you need to make sure you are in the position to buy a house. If you plan to buy a house in the next few months, you need to prepare a few things before you start looking and applying for a loan.

The following are 7 things that can hurt your credit score and may prevent you from being able to buy a house:

1. No Credit – A while ago no credit was considered good credit. Now, however, a lender needs to see that a home buyer has history of managing credit obligations. If you are new to the credit arena, you may have trouble getting a mortgage to buy a house.
2. You’ve Checked Your Credit Too Many Times – This can take points off your credit score. Hold off applying for anything for at least six months before applying for a mortgage to buy a house.
3. No New Credit – Once you reach escrow, you will not want to apply for or obtain new credit. Fannie Mae is now requiring lenders to run a new credit report just before the loan funds. Wait until all is final to finance your furniture for your new home or apply for any credit cards.
4. Reserves – Mortgage lenders want to make sure you have proper reserves such as a savings account, IRA, stocks, etc. Inadequate reserves can kill many loans.
5. Credit To Debt Ratio – Your preferred credit to debt ratio will vary by lender. If it is higher than the amount, however, it is wise to pay your cards down or expect to be denied on your mortgage to buy a house.
6. Job History – If you haven’t been at your job long enough, this may hurt your chances of qualifying for a loan. If you just started a new job, we recommend you wait three to six months before putting in an offer to buy a house.
7. Identity Theft Victim – If you have not checked your credit in a while and do so while applying for a mortgage loan, you may be upset to learn you have been a victim of identity theft. It is important to notify the policy, the credit bureaus and your creditors immediately if you have become a victim of identity theft.

If you are looking for a new home to buy, The Lawhead Team would like to share some helpful tips to help the new home shopping experience be a pleasant one.

1. Make sure you will not have to move in the near future. If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet.
2. Make sure your credit is in line. In most cases, you will need to get a mortgage to buy a new home and in order to do that, your credit must be as clean as possible. Get a credit report and fix any problems you discover. The sooner the better!
3. Know how much house you can afford. A good rule of thumb is you can buy a new home that runs about 2 ½ times your annual salary. Get pre-approved for your loan before you start looking at homes that are appealing to you.
4. Check out the neighborhood and school district in the area for your new home you are looking. Even if you don’t have children, when it comes to sell, strong school district homes are a top priority for many home buyers, thus helping boost your property values.
5. Hire professionals during your new home buying process. First you should have a professional real estate agent on your side to help with finding a new home and going through the entire escrow process. Once you find the home you like, hire a home inspector to point out potential problems that could require costly repairs down the road.

Before you buy a home, it is important to get all your ducks in a row. The Lawhead Team would like to share what not to do when buying a home.

•  Keep your bank account steady when buying a home. Don’t make large deposits into your bank account. Lenders usually like the money you’ll be using as your down payment to be sitting in your account for at least two months prior to approval of a loan.
• Don’t change your bank. Just like your employment, it looks better if you have been with one employer for a longer period of time when buying a home.
• Keep your job, don’t change it. Just like above, you want to show your lender you have stability. This is not the right time to become self-employed or go on unemployment.
• Don’t purchase anything you have to finance. Buying a truck or car will increase your debt to income ratio and loan officers do not like to see that. Wait until after your loan closes to purchase a new vehicle when buying a home.
• Wait until after you close escrow on your house to buy furniture on credit. Just as above, you want to avoid a larger debt to income ratio.
• Don’t be late on your payments you currently have. For example, being late on a credit card payment shows you have a hard time managing your money.
• Make sure to be honest on your loan application. Don’t leave any debts or liabilities out on your application when buying a home.
• Always avoid co-signing for someone on any type of loan. This not only increases your debt to income ratio but if the other person fails to make a payment, you are responsible for that payment.
• Don’t have hard inquiries made on your credit. Opening credit accounts within a short period of time represent risk and your credit usually takes a hit. When buying a home, you want to do everything to make your credit the best it can be.

If you have any questions about applying for a home loan, please call The Lawhead Team, Because Two Lawheads Are Better Than One!

Buying a home can be a stressful and exciting event and knowing what you will be faced with before you take the leap of buying a home is helpful.

The Lawhead Team would like to share some helpful tips to buying a home.

• First you should ask yourself why you want to buy. Do you want to stop renting? Will a home make your family happy 10 years from now? Home ownership is definitely part of the American dream but it may not be right for everyone.
• Figure out your financial aspects of purchasing your home. A home is usually the largest purchase most people make and a home loan is usually needed in order to finance the purchase. Make sure to review your credit score before you start your home buying process.
• Depending on the size of your loan, you will have to come up with anywhere from 3.5% to 25% down payment when buying a home.
• Next you need to get pre-approved for a home loan. If you have been long-time customers of your personal bank or credit union, it is a good idea to approach them first for your home loan. These lenders are usually more inclined to show favor to a longtime customer in order to keep their business.
• Once you get pre-approved, you can start house hunting. Seek out a good real estate agent who knows the area you are buying a home in. Real estate agents can help buyers stay on track with personal and financial objectives while you are buying a home.
• When you find a home you’d like to put an offer in on, don’t be surprised if you enter a bidding war. During these times of low inventory, homes have multiple offers on them. Once the bid is accepted, contact your loan officer immediately. Your loan officer and real estate agent will coordinate the purchase and sales agreements, appraisal and review the title records.
• Once everything goes through, you will sign the loan papers and you will now be a happy home owner. Now it is time to move in and call your house a home.

Do you have questions about buying a home? Please contact The Lawhead Team.

The Lawhead Team would like to share a recent article from CBS News for home buying in 2013 by Jill Schlesinger.

(MoneyWatch) Although housing prices started to rebound last year and are expected to continue rising in 2013, it’s still a buyer’s market. Prices remain 30 percent below their peak before the housing crash and mortgage rates hovering at all-time lows. If you are ready to jump in to the real estate market, here are 13 home-hunting tips for 2013.

1. Run the numbers. Put together a financial plan to determine whether you can really afford to buy. After all, just because it’s a good time to purchase a home doesn’t mean it’s a good time for YOU to buy. It’s important to understand how much home you can afford and whether home ownership might preclude you from addressing other important financial issues in your life.

2. Save 20 percent for a down payment. I’m not a huge fan of putting down less than that amount (although the Federal Housing Administration allows it). Keep your down payment fund in cash or cash equivalent accounts, so that market movements don’t thwart your plans.

3. Use this great “rent vs. buy” calculator from the New York Times. Renting might still be the better deal in your area.

4. Be an informed buyer. You’re not going to buy a house simply because there’s a pretty photo posted online, but you can conduct a lot of price research. That said, there’s nothing better than talking to people in the neighborhood for “on the ground” intelligence.

5. Obtain a copy of your credit report. If you haven’t done so in a while, go to AnnualCreditReport.com and request your free copy. It’s important that you correct any errors on the report before you start the mortgage process.

6. Get pre-approved for a mortgage. Pre-approval is a good gut check on your price range for a home. Gone are the days that banks will fork over cash to anyone with a heartbeat. The best way to start is to ask friends for referrals from mortgage brokers and to shop around with banks and credit unions. Make sure to compare apples to apples and to ask the broker about your total costs to you at closing. You should also know that once you actually find a home, the mortgage process is on the same pain level as a root canal, only it requires more patience and there’s no Novocain. You’ll need to dig up tons of paperwork and fair warning — there will be multiple requests for even more documents as you move toward closing. Eventually, you will need “commitment letter,” which details the terms of your loan approval.

7. Find an agent. As much as everyone complains about realtors, I still think that it’s tough to go through the home buying process alone. In some markets, buyers’ brokers are available, but the most important qualities in brokers are honesty, experience, good connections with other agents, and good referrals from buyers like you. Remember that most agents represent the seller, not the buyer.

8. Hire a real estate attorney. This is a major transaction in your life, so don’t try to save money when it comes to legal fees. Even if your mortgage company provides a lawyer, hire your own to help draft all documents and to ensure that your interests are being represented at every step of the process.

9. Get an appraisal. An appraisal will determine the market value of the property and ultimately will be used by your lender to determine the amount of your loan. You have a legal right to get a copy of this and will want a copy for your records.

10. Schedule a home inspection. Think you’ve found your dream home? Maybe, but unless you have an engineer walk through the premises with you, you might be buying a new roof in a couple of years. Don’t get freaked out if a problem arises during the inspection; it can often be addressed with a simple adjustment in price. It’s imperative to protect yourself, so don’t blow off this important step.

11. Start with a fair offer. The offer should be based on similar houses sold in the neighborhood in the past six months. Your agent will help you with the process, but the offer should include the price you’re willing to pay for the house, your financing terms and contingencies such as specifying what will happen if any problems come up during the inspection.

12. Purchase homeowners insurance. If you are a life-long renter, this can be an eye-opener in terms of cost. Make sure that you understand the difference between insuring the structure and insuring the contents. And if you are buying property that is close to water, make sure that you have an agent who can help you enroll in the national flood insurance program.

13. Review your HUD statement BEFORE closing. The government document provides basic details about the involved parties and a lot of numbers. Mistakes do occur, which is why it is vital that you review the statement and confirm that everything is correct.

 This article on purchasing a home in 2013 is from CBS News: http://www.cbsnews.com/8301-505145_162-57564301/13-home-buying-tips-for-2013/