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MORTGAGE TUTORIAL

There are many ways to begin your search for a home. You can view listings on the Internet, in the newspaper, or simply walk neighborhoods you like and look for "For Sale" signs, which often provide flyers about the house. As discussed above, you may also consider using a real estate agent to help you in the home buying process.


Your real estate agent can show you the homes that meet your needs and help weed out the ones that don't. He or she will arrange for you to see homes that match your requirements, so your time is well spent. Remember to record your impressions about the homes you visit.


A key benefit of working with a real estate agent is that they have access to large volumes of information about houses, which you may not. A real estate agent can inform you about homes that are new on the market or those with price changes. He or she will identify all the potential sellers in your market by working with the entire real estate community.


When visiting individual homes, keep several factors in mind, including:


        Evaluating the Home's Exterior

  • Do trees and shrubs appear healthy? Are trees far enough from the house so that roots or branches will not affect that house? Do the trees have room to grow without touching the house?
  • Is the lot sloped for proper drainage? Are there low spots near the house?
  • Do outdoor electrical outlets have ground fault current interrupters to prevent shock?
  • Is the outdoor lighting adequate?
  • Are there outdoor faucets or a sprinkler system?
  • Are sidewalks and driveways in good condition? Will water drain off them?
  • Is the house's surface in good repair? Are there cracks where materials meet at two walls or at windows and walls?
  • Do windows, doors and chimney sit plumb and square?
  • Is the roof free from sags and dips? Are shingles in good condition?
  • Are gutters in good shape, with tight seams? Do downspouts point away from the house?
  • Do foundation walls have cracks larger than 1/4-inch wide?
  • Is there evidence of termite or other insect infestation?

        Considering the Home's Interior

  • Is the home divided into three distinct zones for working, living and sleeping?
  • Are eating areas (including those outdoors) easily accessible from the kitchen?
  • Does traffic through the kitchen flow outside the work area?
  • Are the stove, sink and refrigerator just steps apart in an efficient triangular configuration?
  • Do open appliance doors block doorways, cabinets or each other?
  • Do bedrooms have two uninterrupted wall surfaces for easy furniture arrangement?
  • Are baths accessible without having to cross a bedroom or other living space?
  • Does the main entry lead guests directly to the living room or make them figure out which way to go?

        Construction from Basement to Attic

  • Do basement walls have large cracks that indicate a shifting foundation? Mildew stains that indicate dampness/flooding? Is an unheated basement's ceiling insulated?
  • Are exposed beams and joints in good condition?
  • Is the attic well-insulated? Is there any evidence of water damage from a leaky roof?
  • Are floors springy or are they even and sturdy?
  • Are walls (particularly at door frames and windows) free from large cracks?
  • Do all doors and windows work smoothly?
  • Are bathroom fixtures in good condition? Does the faucet's water flow remain steady when toilets are flushed?
  • Does water drain well?
  • Are there enough well-placed electrical outlets in the rooms? Does the service to the house match its current electrical needs?
  • Is the capacity and recovery time of the water heater adequate for your family? Does the water heater show signs of rust?
  • Do kitchen appliances seem to be in good condition? Do any come with the sale? Will your appliances fit in the present spaces if need be?
  • Do furnace and/or air conditioning unit(s) appear well-serviced? Is the blower quiet?

If the lists above seem daunting to you, don't worry. Even after a careful review, when everything "feels right," you should take the extra step to make certain everything "works right." When you're seriously considering buying a particular house, you should hire a professional building inspector to make sure the house is in sound condition. In fact, lenders may require you to obtain a home inspection. This is a very important part of the homebuying process and you should not rely on the factors listed above as your only method of determining the condition of the home you intend to purchase. You can use the inspector's report to make informed decisions.


In addition, you should decide which flaws you can live with and which you'd prefer to have repaired. Having an understanding of the repairs needed can help you determine how much to pay for the house or can help you estimate how much in addition to the purchase price you may need to spend to make repairs. In certain circumstances, you may also be able to finance some repairs in your mortgage.


Home Inspections provides more information about the home inspection process later on in this section.



 
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