1. How much do property taxes cost per year? This will affect the monthly cost of the home, and you’ll need to have an idea of the tax burden before you commit to home ownership. Remember that taxes are often higher in urban areas than in suburban.

2. Are there any homeowner’s or maintenance dues/fees? While this may be disclosed up front, always ask. Even if you don’t see a neighborhood sign.

3. How much do utilities cost per month in the summer? Winter? The agent will give you a ballpark figure, but, again, these numbers will increase monthly cost of ownership. As a companion question, you may want to ask if the utilities are gas or electric.

4. What is the square footage? Builders should provide a figure for square footage, and that number is confirmed in the appraisal papers at the closing.

5. How long has the builder been building homes in your area? An established builder will have many older properties in the area for you to either view, drive by, or even tour (if for sale), giving you some idea of the craftsmanship involved. A newer builder won’t have that cache, but may offer more modern amenities, designs and floor plans.

6. How long has the builder been in the business of building homes? Experience always counts!

7. What training, credentials, and formal education does the builder maintain? Builders who have extensive or high-quality training and licensure, along with a commitment to continuing education, generally communicate responsibility and care with the properties they build. They are invested in their trade.

8. Can they provide testimonials from recent homebuyers? Testimonials are a great way to find out what a company’s strengths are.

9. Ask for a complete list of all subcontractors working on their homes. If you live and work locally, this list will give you an idea of the kind of business the builders operate and the quality of the workmanship that goes into each home.

10. Ask what type of warranties (structural, maintenance, etc.) the builder offers. This can be a lifesaver for those first one or two years in case something goes wrong.

As always, verify whatever information you gather. A real estate agent can help you gather any necessary paperwork, and a good builder will provide you with documentation when needed.

Well, because of FHA loans, we at Tradition Homes can offer great deals, like the one we have going on currently, where we can get you into a home for $615.00 per month with a 600 credit score. How? Because we base those figures on FHA loans, which allow lower down payments, offer lower interest rates, and are tailored to middle income families.

What do you need to know about this program?

1. The Federal Housing Administration (FHA) doesn’t actually make loans. They insure loans made by approved lenders. Why does that matter? Because an insured loan, with the government’s backing, is less likely to result in a default and loss of money for the lender.
    
2. The minimum down payment for an FHA-insured loan is 3.5%. That’s right. 3.5%. Before you get giddy, remember that this can get you into a home, but can often prove problematic if you need to sell a home in a soft market.
    
3. Buyers with weak credit can qualify for an FHA loan if they have a stable income and a stable employment record.
    
4. This is a big one: FHA loans require owner occupancy. Because FHA loans are designed to get people into homes and to generate stable neighborhoods, they do not allow borrowers to create investment opportunities. However, there is always the possibility that you could be transferred for a job, or have to move within a few years of buying your home. If your house does not sell for some reason (soft market, upside down mortgage, etc.), you may be in a pickle. Talk to your lender before you sign the papers to find out what your options are.
    
5. FHA requires a type of insurance called Mortgage Insurance Premium (MIP). Conventional loans require Private Mortgage Insurance (PMI) if the down payment on the loan is less than 20%. Most, if not all, FHA loan homebuyers pay far less than 20%, so be aware of this extra monthly expense.

If you have questions or concerns about borrowing with an FHA-insured loan, feel free to call a preferred Tradition Homes mortgage lender to talk about your options. For further research, you can also visit the FHA page on the HUD website or Realtor.com.

To learn more about how you can get into a Tradition Home for a low monthly payment, click here for information about homes in the Greensboro area or here for information about homes in the Winston-Salem area.  

Four months out / September

• Get pre-approved for a mortgage. A potential home buyer should come to the house hunting process already pre-approved. Without pre-approval, you may end up outside your price range and without the ability to follow through with a loan to cover an offer. Know what you can afford before you scout for homes.
   
• Research neighborhoods, schools, and comparables.Start your home hunt with wide concentric circles and narrow to the house search itself. Consider general requirements – city, suburb. Narrow to the more specific requirements – safe neighborhoods, good schools, healthy buying and selling records.

  Walk and drive the neighborhoods that interest you. Drive through at different times of the day – after school lets out in the afternoons, mid-morning, evening. What should you look for? Anything out of the ordinary, the number of homes already for sale, the number of rental properties, and the number of foreclosures. Look for people out and about in good weather – walkers, runners, and children playing outside all indicate safety and comfort.
   

• Find an agent. Finding an agent can be a long process if you don’t know where to look. Websites like Zillow, Trulia, and Realtor.com post reviews of real estate agents, but the best source is word of mouth. Ask friends or acquaintances for recommendations, but always research agents first.
   
• Start looking! Now for the fun part. Start going through houses with your requirements in hand. If you find something that fits your budget and your list, go for it!

One month out / December

• Make an offer. Real estate agents all agree: be sure you are committed to your offer before you sign. A purchase agreement is a binding contract.
   
• Arrange the final details. Now that you’ve found a house, you’ll have to get final approval for your loan and arrange the appraisal, home inspection and walk-through. Your agent or home builder can provide guidance on each of these steps. Also, before you close, make sure you obtain homeowner’s insurance – a requirement for mortgage lenders.
   
• Walk away?Don’t be pressured into buying something. Buying costs or maintenance costs higher than your budget allows? Your home inspection (a must, by the way) turn up expensive repairs? Seller unwilling to work with you? House priced too far above its value (appraisal – another must)? Keep looking and be patient. It’s a buyer’s market and there are many options.

  Again, purchase agreements are legally binding contracts. Make sure your agent accounts for certain contingencies in that contract – including inspections and financing – so that you CAN walk away from a house with major problems.
   

• Close and enjoy! Congratulations! You’ve successfully closed on your new home and are now a home owner.

Remember: With the right plan and wise financial management, buying a home for the first time can put you on the right financial track for many years to come, providing stability and equity not available in a rental.

Get Started Now!

Tradition Homes offers a seamless buying process, walking with you from home selection to closing. We pre-approve the agents, lenders and attorneys we work with, ensuring your financial safety and peace of mind. For more information about our semi-custom homes, town homes and villas, fill out the form below.  A Tradition Homes representative will contact you to discuss your home buying goals and needs.

Six months out / June

• Research mortgage options and rates. Never take the first mortgage option until you have contacted other lenders. It’s currently a buyer’s market, and interest rates are very low, so shop around and talk to friends who have recently been through the home buying process. Websites such as www.Zillow.com and www.Trulia.com (see last week’s blog post) can help you compare mortgage options and rates across several lenders at once.
   
• Research the benefits of new construction v. “move-in ready” homes.Before you start assessing costs, you may want to research the difference between buying a newly constructed, semi-custom home as opposed to an older home. While you don’t have to decide at once, research both so you can consider the costs of owning and buying each kind of house. 

  If you decide on a newly constructed home because you want the personalization options and the lasting value of a semi-custom home, know that a home builder, such as Tradition Homes, can provide a full-service buying process from preferred lenders, real estate agents, and closing attorneys to closing coordination. 

  Also, if you decide to go for a newly constructed house, be prepared for at least four months of construction time (putting you just inside the New Year with your new house!).

• Research and calculate costs of owning a home. The true cost of owning a home is never just the cost of your monthly mortgage. Utilities tend to be higher on single family homes than apartments, property taxes fluctuate…not to mention repair and general maintenance. Even the cost of mowing your own lawn – the initial investment in the mower, the gasoline to keep it moving, the cost to maintain the equipment – is a factor when you’ve been renting for a long time. Consider the cost, weigh the value, and make sure you are setting enough aside each month to tend to these expenses.
   
• Research and calculate the true cost of buying a home. The true cost of buying a home is usually greater than expected. One of Tradition Homes’ Sales Counselors can sit down with you at the beginning of the home buying process and walk you through this process, especially if you are a first-time home buyer. But don’t wait for them to educate you on costs and fees; know what to expect before you talk to an agent.

• Revise your budget. It’s June. Life has probably changed. Something unexpected has come up, or a new expense looms on the horizon. Whatever the case, revisit your earlier budget and allow some room for these changes. If it’s a major change, like an engagement, an impending wedding or a new job, consider postponing your goal for another year so you can focus on that exciting next step in your life.

Check back next week for Part 3 of New Year, New Home. We’ll take you from the four-month mark to move-in day!

It’s officially 2012. Perhaps you’ve made some resolutions or goals to improve your life in the new year – more exercise, better eating, classes toward a degree or certificate, etc. If you are still renting, and planning to stay in the Greensboro / Winston-Salem area, consider making it a goal to get out of your rental and into a new home.

To help you on your way, we’ve put together a year-long plan in a series of three blog posts to get you into a new home by this time next year. Having a plan for the home buying process and taking your time to work through it relieves much of the pressure of home buying and keeps you in the driver’s seat.

One of the first rules of home buying is to give yourself as much time as possible. If you can give yourself a year, as this plan advises, do it. If you only have a few months, consider taking a short-term rental and making it a year.

One Year Out / January

1.  Deal with bad debt.

Often called “toxic debt,” high interest debt from credit cards or payday loans ruins your financial peace. While many are forced to dip into debt like this as a result of previous financial hardship, digging out can be difficult and can take much longer than a year depending on debt-load.

Set a timeline to get the debt paid off BEFORE you consider buying a home. If it means postponing home ownership for another year or more, do it. It’s well worth the peace of mind to buy a house when you are financially solvent.

If you look at your finances and decide this isn’t the year to buy, consider talking to a financial advisor (consider www.DaveRamsey.com or www.Crown.org) to help you begin digging out today. After all, you can always keep the information we’ve provided here and use it next year.

2. Establish a budget.

First-time homebuyers unaccustomed to the expenses and pressures of home ownership should plan ahead for those upcoming expenses by establishing a solid, workable budget. Using a free program like Mint (www.Mint.com) or a consumer software like Quicken can help you keep track of your expenditures and bills while visualizing your monthly intake and outlay. A simple spreadsheet or graph may do the job if you don’t need anything complex. The goal? Save as much money as you can.

3. Get a credit report.

The best reason to get a credit report is to know where you stand and to take the steps necessary to repair any damage to report from previous financial hardship.

One of the best steps to maintaining a healthy credit score is to pay all bills on time, every time. Don’t allow even one bill to become late – the damage to your score, while not disastrous, is definitely noticeable. Try to avoid large purchases in the year leading up to your home purchase as well. Every time a company checks your credit report, that check counts against your score.

There are loads of credit report websites out there, but www.AnnualCreditReport.com, set up by the big three credit bureaus (Equifax, Experian and TransUnion), provides reports from all three. And, don’t forget, you are entitled to one free credit report every year according to federal law.

4. Save, save, save.

Not only should you have money in savings to put down on a house (between 10-20%), you may have to bring money to the closing. In addition, you should have a 3-6 month emergency reserve before you buy a home. Other home buying expenses may include a real estate agent commission, any initial repairs sellers won’t cover, travel expenses if you currently live out of state, and all the other fees associated with buying a new home.

To avoid becoming overwhelmed with the cost, give yourself a full year to build up that emergency reserve or to set aside money for any potential redecorating or repairs.

5. Read up.

Keep an eye on real estate news to know where the market is leading up to a home purchase. If the market is in decline in your area, or in the area where you hope to buy, you want to know before you put in an offer on a home.

Check back next week for Part 2 of New Year, New Home!

• Whatever passes through your network, whether legal or illegal, can be traced back to you as the owner of the network.  Since you don’t know what people are up to while they are using your wireless connection, you have no defense against illegal activity and may be held liable for their activities.

• Whatever you do on an unsecured network can be seen.  Whether sending emails, viewing webpages or shopping online, there is always the possibility that someone else is gathering the information you send and receive on the internet.  

• Access to your network often means access to personal information on your computer.

• Network freeloaders suck bandwidth, especially if users download full-length movies, stream video, listen to radio online or download large numbers of mp3s.  

WEP & WPA

The simplest way to secure your network is to set-up encryption using either WEP (Wired Equivalent Privacy) or WPA (Wi-Fi Protected Access).  According to Joel Hruska, in Ars Technica, an online techie publication, WEP is “old, busted, and better than nothing.” 

Generally standard on older routers and older systems, WEP encryption is cracked easily.  While it will keep out unwanted, innocent bandwidth stealers, it won’t keep out a serious thief.

That said, if it’s all you have, use it.  Simply access your wireless network settings and create a WEP passcode. 

WPA provides more effective security and is just as easy to set up.  Because it uses stronger encryption, WPA is harder to crack.  

Set-Up

Routers will come with instructions to set up WEP or WPA encryption.  For general instructions, a quick Google search will unearth plenty of sites eager to help you.  

For PC users, check out the following instructions for WPA configuration:

Windows XP: http://windows.microsoft.com/en-US/windows-xp/help/networking/configure-wpa-wireless-security 

Windows 7: http://windows.microsoft.com/en-US/windows7/Set-up-a-security-key-for-a-wireless-network 

For Mac users, check out the instructions for Mac OS X 10.3 or later: http://support.apple.com/kb/TA21448 

Get your house ready for the upcoming winter months. I posted a blog back in October about what you should do to maintain your home after moving in. This post expands on this a little by giving you a few tips for winterizing your house. Just like taking care of your personal health, you need to take care of your home’s “health” as well.

Wear a coat! Just like layering clothes or wearing a scarf and hat to cover your ears, you need to layer your home too in the winter. Layer your home? This is a funny way to say it but it’s true. Adding additional insulation to the attic and under the home is like adding another layer of clothing. This is the easiest and fastest thing you can do to get your home ready for the cold months ahead.

Get a check up! You can actually have an Energy Audit conducted on your home. An Energy Audit points out the parts of your home where you are using the most energy. If you own a heat pump, it’s best to set the temperature and leave it, turning the unit on and off uses a lot of energy. Also, stock up on filters and change them frequently. If you have a working wood fireplace, make sure you have a chimney sweep clean it before firing it up for the first time. You may even have a family of birds (bats too) living in it from the fall.

Take your vitamins! Get a first aid kit for your family. You may think this doesn’t really go along with getting your home ready for the winter but you would be surprised. If you happen to get snowed in for a few days and someone has an accident, you may not be able to get out to the store. It’s a good idea to be stocked up on medicine too. You should also consider having food that won’t go bad if you loose power for a few days.

Get a new hair cut! Outside maintainence is just as important as the inside. Clean out those gutters so that water won’t freeze in them. Also, remove leaves and debris from around your foundations to prevent standing water. Check the foundation for cracks and for holes that small animals can squeeze into and get under your house. If you have a garden hose lying around, drain it and store in a dry place. Check your roof shingles too. With wind and snow blowing around, you may end up with a leaky roof.

Winter is a great time of year. It can be even better if you’re prepared for it and so is your home. Everyone stay safe and warm. If you have any questions or comments you’d like to share with me, please feel free to contact me.

Now look at your house like a burglar would.  What do you see?  Those large windows are beautiful, but are they secure?

Unfortunately, burglaries can happen in even the safest neighborhoods, so this Christmas, before you go on vacation, take steps to protect your home from thieves using our five quick steps to protecting your property:

1. Put a light on a timer.  Having a light, or lights, come on at various times in the evening presents the illusion that someone is home.  It’s simple but effective.
2. Trim shrubs and trees around the house and windows and leave a light on outside. Overgrown shrubs and trees create dark, shadowy hiding places directly around the entry points of your home.  Keeping them well-trimmed, and well-lit, deters criminals who prefer to work in the dark.
3. Check visibility of electronics or other commonly stolen items. Stand outside your home and look through your windows, both from a distance and up close.  Can you see the flat-screen television through the window?  Did you leave your laptop on the coffee table in plain view from the front door?
4. Stop your mail and newspaper, or have a neighbor collect them. Again, simple but effective.  It creates the illusion that someone is picking up the paper every morning before work.  Nothing screams “empty house” like a pile of week-old newspapers gathered on the driveway.
5. Enlist the help of your neighbors to watch the house, and be prepared to return the favor. One of the best defenses against any kind of criminal activity is an active neighborhood where people walk, run, bike and sit outside.  In the winter, when the cold weather drives neighbors indoors, enlist their help from the inside and as they drive to and from their homes — they can keep an eye on your property and report suspicious behavior to the authorities before you even know something has gone wrong.  Neighbors are your best allies.

Even if you have a security system in your home, don’t depend on it. Follow these five simple steps to decrease the chances of an attempted burglary. Don’t forget to arm it while you’re away. Surprisingly, one of the most common security system user mistakes is forgetting to arm it!

If you don’t have a security system, but would like information about purchasing one, Tradition Homes has a great relationship with CPI Security. Visit their website or ask one of our sales counselors about the service.

Party season is upon us and if you’ve already been invited to a Holiday party, here are a few things to remember.

Please RSVP if it is asked of you. There is nothing more frustrating then hosting a party and not getting an RSVP. As a hostess, it’s hard to make appropriate plans as to how much food and beverages you will need. If you have someone you would like to take with you to the party or you have out of town guests staying with you, it is very important to ask if you can bring them to the party. Don’t show up with an extra person in tow. If you are hosting and a guest does bring an extra person, it is proper to accept this person and discreetly make the needed adjustments. If you are worried that you may run out of food, follow the FHB rule. That means “Family Holds Back”: take a little less for yourself to ensure enough food for everyone else.

The hostess gift. This is just a nice gesture to say thank you for all the time and effort put into the party. It doesn’t have to be an expensive gift. A bottle of wine, decorative candle, or a box of chocolates. As the hostess, you are not obligated to open these gifts that night. If you are attending a family & friends party, offer to bring something to the party. The hostess will probably decline but nevertheless, be prepared to make a quick stop on the way to the party to pick up a last minute bag of ice.

What do you do if you’re a vegetarian? It is up to you to let the hostess know that you have a special diet. She can either make a special dish for you or you may offer to bring a dish. It can be hard on a hostess to accommodate everyone’s individual tastes so if you are allergic to something, please let her know ahead of time. If you haven’t let anyone know then it can be a very awkward situation for both you and the hostess.

Lastly, and I believe most importantly, don’t over indulge. Be it over eating or over drinking, this can put a lot of people in a really weird position. You don’t want to be that person hanging out at the buffet table all night. It may be a good idea to eat something before attending the party if you think you might over eat. Same goes with consuming alcohol.Not only does this make you look bad but it makes everyone else feel bad. It’s ok to not drink at all. If you feel that you need a drink in your hand to feel comfortable, drink a soda water and lime or something else non alcoholic. It is totally fine to not drink at all and if you choose so, you don’t need to advertise it.

Unfortuntely, a festive party can sometimes make or break relationships, either professionally or personally. It’s great to “Eat, Drink and Be Merry” during the Holidays but don’t forget your manners and common courtesy.

Tradition Homes wants to wish everyone a safe and happy Holiday season! As always we welcome any questions or comments. Contact us.