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First-Time
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Guide
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The Best Tips for Beginners $8,000! 12 Smart ways to Spend Your windfall
first-time
inspection: Dont Buy a Home without One 1 www.lchomefinder.com h o m e b u y e r s g u i d e A Special Supplementwww.whitmanparadeofhomes.com Parade of Homes to Seaport Homefinder and Whitman County
OF HOMES
&
PARADE
W h i tm a n County
Let Kincaid Real Estate help you find the perfect home in Whitman County
Our website can take you to every listing on the Whitman County Multiple Listing Service. www.kincaidrealestate.com
s now your moment to buy a home? The warm prospect of more affordable home prices, attractive mortgage rates and a stable economy will likely draw more real estate shoppers to the market this spring. But its the opportunity for cash back in their pockets that will turn many shoppers into buyers and quickly.The potential benefit is huge: as much as an $8,000 tax credit for first-time buyers and a $6,500 credit for move-up buyers. First-timers who intend to make a move should act promptly, do their homework and proceed with caution. Review the guidelines closely. Consult a tax professional if you have questions. And use the info in this guide to help clarify steps you need to take on the journey to owning a home.
on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010 a home purchase completed by June 30, 2010 will qualify. For homes purchased after Nov. 6, 2009, and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
CTW Features
TAx CredITS From NAHB Web: www.federalhousingtaxcredit.com Facebook: www.facebook.com/federalhomebuyertaxcredit Twitter: www.twitter.com/FTHBtaxcredit
IrS FIrST-TIme HomeBuyer TAx CredIT INFormATIoN Web: www.irs.gov youTube: www.youtube.com (search iRs homebuyer credit) Hud TIpS oN BuyINg A Home Web: http://portal.hud.gov CTW Features
2 i r s t - t i m e H o m e b u y e r ss -G u i d eh o m e b u y e r s g u i d e A Special Supplement to Seaport Homefinder and Whitman County Parade of Homes fi r t time F
Mission
Provide the highest quality real estate service for every customer
- Mike Werner, Owner
Top, Left to Right: Heather, Gary, Michael, Steve, Melinda, Abbey Bottom, Left to Right: Lori, Bridget, Gail, Xun, Pat
Our Team
Our website is a great tool for locating properties and a great place to learn more about the community of Pullman and surrounding area. We look forward to serving your needs with the quality you expect and deserve!
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www.beasleyrealty.com
515 E. Main Street Pullman, WA 99163 509.332.1511
f i r s t - t i m e h o m e b u y e r s g u i d e A Special Supplement to Seaport Homefinder and Whitman County Parade of Homes 3
Q: Im a first-time buyer. Ive heard that I can use the $8,000 first-time buyer credit in place of cash for a down payment. Ive also heard that I cant. Which is it? A: Both. On May 29, 2009, HUD came out with a revised mortgage letter regarding the tax credit that made two main points: 1. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their down payments via secondary financing provided by the HFA or non-profit. 2.Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of todays announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate.
So if youre a first-time buyer and qualify for the $8,000 credit you can apply the money to the FHA down payment, provided that the credit advance comes from an approved nonprofit or government agency, such as a state housing program. However, if your financing comes from a private lender say a bank then the deal is different. You cannot get an advance on the tax credit to pay the FHA down payment. You must still come up with the 3.5-percent down payment from your own funds or from a gift. However, you can get an advance to pay off other closing costs or to increase your down payment. Q: I want to borrow $150,000, but the lender says I qualify for $175,000. Why is the qualifying amount higher than what I can realistically afford? A: Lenders have traditional guidelines
that suggest whats affordable based on your income, credit and monthly costs. The lender might say that as much as 38 percent of your gross monthly income can go to housing costs and other expenses.Thats fine, and such guidelines likely work for most borrowers. But if youre not comfortable with the level of debt then say so. Look for properties where the maximum loan amount will be no more than $150,000. This is your decision, not the lenders. Q: We have homes in our community that used to cost $500,000 and are now selling for $300,000. Are these houses a good buy? A: What homes used to sell for doesnt count. Instead, ask yourself some questions regarding the properties: If you bought a property for $300,000 could you resell it now at a higher price? Enough to also cover marketing and closing fees? If you bought a $300,000 property could you rent it for enough to pay
4 i r s t - t i m e H o m e b u y e r ss -G u i d eh o m e b u y e r s g u i d e A Special Supplement to Seaport Homefinder and Whitman County Parade of Homes fi r t time F
Trust- Trust in our commitment to you! Expertise-Combined Expertise to serve you well! Attitude- Expect a positive experience! Motivation- We work for you!
Call or stop by our offices today and ask about our custom tailored Real Estate services just for you! Buyers & Sellers welcome!
Beasley Realty 515 East Main St. Pullman, WA 99163 www.beasleyrealty.com teamgatk@pullman.com
Realtor is obligated by law to protect your interests. Retaining a Realtor usually requires no out-of-pocket expense on the part of the buyer, says Brady Moore, a Dallas-based Realtor with Dave Perry-Miller & Associates.An agents commission will depend upon the listing and the contract. To find a licensed broker or real estate agent, your best bet is to start with referrals from friends or family, says Minnis, especially if they are located where you are looking. If new to a city, use the Find a REALTOR function at Realtor.org. Sometimes new buyers are tempted to call listing agents for properties they like, but be cautious.Working with an agent who represents the seller may not be in your best interest. Consider finding a buyers agent and have that person help you find properties, Moore says. To ensure this process goes smoothly, the experts agree that its important to find someone who is a good personality fit.Buying a house is probably the big-
gest financial transaction most people will make in their lives, says Moore.You should do it with someone you can trust [and] enjoy spending time with. A good way to gauge if you will get along is by interviewing potential agents in person.Ask about their areas of expertise, the neighborhoods in which the majority of their sales occur, if they own any real estate themselves and how long theyve been in the business. Keep in mind that many (not all) agents may require you to sign an exclusive-representation agreement, says Moore, the details of which can vary. In addition to reading over the contract, have a friend who understands real estate also read it over. Keep in mind that a good agent will work hard to meet your needs.They may put in a lot of time helping you search, and they wont get paid until the sale. When they see you are committed, they know they can dedicate their effort to your search. CTW Features
(509) 330-0086
COMMITMENT TO EXCELLENCE
www.MyPullmanHome.com www.MyMoscowHome.com
T.R. Wilson
Results
Realty
931 Sixth Street Clarkston, WA 509.758.8500 888.243.7400
Steve Knight
Blake Harrington
"We have bought and sold 4 other homes during our married life, and never have we had such complete confidence and trust in a Realtor. Lori was not only patient and quick to respond to our questions, but she always acted with integrity and honesty. She explained all the details along the way and was willing to go the extra mile to provide the most optimal exposure in print, on the web and in person for our home, in order to attract potential buyers. Lori is not just an exceptional Realtor, she is an exceptional person. It has truly been a pleasure to work with her." J. & V. DOTY S E RV I N G
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THE COMMUNITY FOR
Tammy Brown-Thomason
Smiley Hatcher
40
YEARS
Galeon Knight
Tom Scher
5 1 5 E A S T M A I N S T R E E T P U L L M A N , WA 9 9 1 6 3
First-time Homebuyers Guide
www.ResultsRealty.net
E x p E r i E n c E
i n t E g r i t y
Clarkston, WA
Paula L. Earl
208.305.6760
paula@lewiston.com www.re-tp.com/Paula
Kevin Hoene
208.816.1500
khoene@cableone.net www.re-tp.com/Kevin
Robin Meacham
208.305.3125
robinsayshi@ymail.com www.re-tp.com/Robin
509.780.2434
jjarvisrealty@yahoo.com www.re-tp.com/Jim
Jim Jarvis
Cam Bickford
cambickford@cableone.net www.re-tp.com/Cam
509.254.1877
cappybickford@realtyexecutives.com www.re-tp.com/Cappy
Cappy Bickford
208.790.3602
Linda Joyner-Jones
208.305.7400
joyner@clearwire.net www.re-tp.com/Linda
Justin Adams
208.790.4202
adamsj@cableone.net www.re-tp.com/Justin
FEATURING: Browse all Valley listings on an interactive satellite mappowered by Google Maps!
re-tp.com
Debbie Ledgerwood
dledgerwood8@hotmail.com www.re-tp.com/Debbie
208.791.1945
Jeanne Medley
208.816.0050
jmedley@clearwire.net www.re-tp.com/Jeanne
Caroline Crothers
carolineswanlc@yahoo.com www.re-tp.com/Caroline
509.254.4633
We have the easiest way to look up a listing! Just type into your browser: re-tp.com/ followed by any MLS number from the Lewis-Clark Valley! You don't even need the "www"!
example:
and
ure, youll be the one unpacking the boxes, grilling on the patio and hanging portraits on the walls, but buying a home is a team effort. Here are the key players youll work with throughout the process:
talking to at least three lenders, choosing the ones you think you could work with the best and asking each for a Good Faith estimate. Once youve made a final selection based on which lender has the best annual percentage rate, youll fill out a formal application, and the lender will run your credit.The lender then comes back with a figure of how much you can afford. Be careful though, warns davis.even though lenders will let you borrow more than you can afford, you have to take some responsibility and know your own limitations, he says.
national Association of realtors. A realtor can help you speak with mortgage lenders, recommend home inspectors and act on your behalf when dealing with the sellers broker. But the realtors most important job, says davis, is to sit down with you and listen to your needs, and then find you a good deal on a great home.This is where the agents expertise really becomes important, davis says.
inspector, davis recommends going with him or her during the inspection. You want to have him explain what the problem is, how serious it is, how much itll cost you to fix it and what you can do with it, davis says.
THe ApprAISer
Hired by your lender, the appraiser assesses the homes value to be sure youre not overpaying. If the appraisers value comes in at or above the sale price, youre on your way to closing.
THe Lender
The mortgage lender is the first person you should seek, says Sid davis, author of A Survival Guide for Buying a Home (AMACOM, 2009). davis suggests
THe reALTOr
The realtor is there to guide you through the process from end to end, says Stephanie Singer, manager of media communications for the
With your new home comes new responsibilities like protecting your new investment with the right amount of homeowners insurance. Thats where I can help. Like a good neighbor, State Farm is there. Call me today!
dave@davechristyinsurance.com
www.davechristyinsurance.com
State Farm Fire and Casualty Company, State Farm General Insurance Company, Bloomington, IL.
8 i r s t - t i m e H o m e b u y e r ss -G u i d eh o m e b u y e r s g u i d e A Special Supplement to Seaport Homefinder and Whitman County Parade of Homes fi r t time F
Whispering Hills homes are part of a well designed neighborhood next to Sunnyside Park in Pullman, Washington. Features include front yard landscaping with automatic sprinklers, gas forced air heating, brick exterior accents, vaulted ceilings and a GE appliance package for starters! Call or visit our website for a full list of standard features, upgrades, floor plans, pricing and information to guide you through the process on your way to homeownership. Model home hours: M-F 10-5, S&S 12- 5.
At Copper Basin and Windermere our goal is to provide home buyers the most value possible while helping them better understand and get through the home building process.
Model Home & Sales Office 1015 Lost Trail Drive = Pullman, WA 99163
509-334-4287 = copperbasin.com
Windermere, C-K Real Estate
f i r s t - t i m e h o m e b u y e r s g u i d e A Special Supplement to Seaport Homefinder and Whitman County Parade of Homes 9
B
Leonard Ferrigno
208.791.6168
Marie Ferrigno
208.791.8994
Kathy Hollingshead
Derek Fred
208.413.1738
509.254.1977
uying a house is a purchase every individual and family wants to make. But buyers should realize that their first home may not be the home theyre going to live in forever. A first home is just that a first home. One of the best steps you can make on the road to homeownership is to search for a house to live in not a project to take on, like the handyman specials on HGTV. Know when to draw the line when purchasing a home that needs renovations, says Linda Kepple of the Kepple Team at Keller Williams Realty, Peoria, Ill. Of course there are going to be things they can do, but sometimes they take on more than they actually can, Kepple says. Brenda Bonello, also of the Kepple team, suggests not being afraid to buy a house thats a little more expensive up-front. Paying $50 more a month in mortgage is much easier on a first-time homebuyer than having to take $10,000 out of their pocket to update major systems, Bonello says.
fORGeT fLIPPInG IT
www.LCSELLS.com
Specializing in first time homebuyers in Lewiston & Clarkston.
HBG-10-395224
(509) 751-5555
Another common mistake is putting more into the home than you can get out of it when it comes time to sell. first-time buyers often think that if they make major improvements to the house they will get those expenses back at resale. But the wheeling and dealing of the boom years have passed. You only recoup a percentage of any remodeling project or updating project, Bonello says.
Adam Dawson
L e w i s t o n , i D A H o FREE Home Inspection for Buyers. Call for details!
www.AdamDawsonHomes.com
I can show all Valley listings from any real estate office!
HBG-10-395219
(208) 790-1162
Tomlinson
Johns Manville Insulation TREX Decking & Others Atlas Pellets Valspar Paint Cabot Stains Sikkens Stain Atwood Rope
Quality & Service You Can Build On Clarkston 15th & Fleshman Way GranGEVIllE 322 north D st (509) 758-3333 (208) 983-5333
LOAN RATES ARE STIL L LOW. We off er fix ed rate and variable rate loans * * * * * * * * Home Loans Free Pre-Quali fi catio n FHA, VA, IHA Commercial Investment Propertie s Constructio n Loans Home Equit y Lines of Credit
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We have first time homebuyer and other great programs available Give Us A Call! shopthebanks.com
Jonathan Hughes Branch Manager WA License #510-LO-33077 NMLS # 7347
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208.743.1005
Great Expectations
Buying a home doesnt have to be hard. Heres a guide to the ins and outs of the process so you can start your dream-home search on the right foot
By Dawn Klingensmith CTW Features
I think everyone should have to take a little class so they know what theyre getting themselves into, says mortgage banker Mary Ann McGarry, adding that such classes are widely available free through various organizations. Here, we offer a sort of CliffsNotes study guide in homebuying, from setting a budget to signing on the dotted line.
f you do not own a home, you might as well buy one because youre already contributing to a mortgage your landlords. Thats one case for homeownership Seattle-based broker Carolyn Warren
Track your fixed living expenses, discretionary expenses and miscellaneous purchases for 60 days to establish a target monthly mortgage payment based on your income relative to your expenses. At the same time, look into programs that offer down payment assistance to first-time buyers. on top of a down payment, a buyer should have a home expense fund totaling 2 percent of the projected purchase price. So if youre looking at homes in the $200,000 range, you should have $6,000 squirreled away for the ongoing costs of home ownership, including upkeep, emergency repairs and household purchases, such as a lawn mower and window blinds, says personal finance expert Lynnette Khalfani-Cox, Mountainside, N.J.,
13
GeT INSPeCTed
Get a home inspection even if youre buying new construction. You
SoMeTIMeS when sizing up a house, people are so charmed by features or get so caught up picturing themselves decorating and entertaining that they dont notice flaws both large and small, like a lack of closet space. other times, they focus on things that dont matter in the grand scheme of a home purchase. To avoid buyers remorse, heed these dos and donts. do Visit the house at different times of day, as traffic, noise level and neighbor behavior may vary, says real estate broker diane Saatchi of the Corcoran Group, east Hampton, N.Y. Take a measuring tape to make sure your fur14
niture and other items fit in the new space. See to it that utility costs are verified and adjusted for your use. For example, the sellers heating costs may be low because they stay down South all winter. Compromise, when necessary, on things that can be switched out, updated or fixed most easily. For example, if both a basement and a garage are on your wish list, its best to go with the basement, knowing a garage can be added later, Saatchi says. Avoid buying homes in areas that are economically depressed, crime-ridden or poorly situated. Think about
the prospect of selling the home down the road, Khalfani-Cox says. You might not be bothered living by train tracks or a busy highway, but a poor location is a turnoff for prospective buyers. doNT Be so concerned about resale that you forget your needs. Be seduced by trims and trappings; youre not buying the dcor. dont let emotions cause you to pay for what you will not be getting. Sellers stage because buyers pay more for well-dressed homes, Saatchi says. Quibble over little things like mismatched switch plates espe-
cially if its a ploy to downplay your interest. Some sellers agents say they love it when you fuss over details because it means you are picturing yourself there, Khalfani-Cox says. Allow the home inspectors report to shatter your confidence and resolve if no major defects turn up. The document will be long and detailed, including such minor flaws as a missing cabinet knob. Overlook the quality of the school district even if you dont have kids. Its often a big selling point for a home, elika says, so its a factor to consider, as it may impact your homes resale value.
publisHer
We Are
National Association of Realtors Members Lewis-Clark Association of Realtors Members, Officers & Volunteers Lewis-Clark Building and Contractors Association Members, Volunteers & Sponsors Tri-State Foundation Volunteers and Sponsors Clarkston Chamber Members and Board of Directors Volunteers
Lewiston Chamber Members St. Josephs Regional Medical Center Volunteers, Sponsors and Donors Founders of 6th Street Trick or Treat Friends of Parks and Recreation of Asotin County Board Members and Various Committee Volunteers Twin County United Way Board Member, Volunteers and Donors
selling, we will get the job done right! Our door is always open and we encourage you to contact us today. Youll find we care about our community, we know Real Estate, and we enjoy working for you! Contact us today and dont forget to visit us at www.PriceRightRealEstate.com
Price Right Realtors are professional, dedicated and fun Realtors helping to build this community. Whether youre buying or
15
FINDING AN AGENT
Real estate agents work on commission and are responsible for researching available homes, finding comps (comparable home sales in the area) to help you figure out an offer and presenting your offer to the seller. You want an agent with many years experience in the areas youre searching, but you dont want an agent
ARRANGE FINANCING
If you want to buy a house, you need to know what you can afford and what the bank will loan you. Down payments can range from 3.5 percent for an FHA loan to 20 percent or higher, if buyers are looking to avoid potential mortgage insurance.The remaining funds to purchase the house must come from a bank, credit union or other lender. A mortgage broker may also help
who may also be getting a commission from the home seller to get you to buy that home, says Bruce Hahn, president of the American Homeowners Foundation, Arlington, Va. What you really want to do is interview the agent, says Ron Phipps, president-elect of the National Association of Realtors. Talk to the person and see if you relate to them. Go online and get evaluations, talk to people who have worked with the agent and look at their professional experience. FINDING THE RIGHT HOME
INSPECTION
Buyers are often expected to pay for a professional inspection of the home, usually between $150 and $300. Some real estate experts suggest inspecting
THE OFFER
Once youve decided upon a home, you make the offer, which includes putting in skin in the game money according to Alethea Smock, a broker
Two new homes are available in Colfax. Both homes have 3 bedroom, 2 bath, and attached 2 car garage. One home has over 1,500 sq ft and the other has 1,400 sq ft.
350 SE Fairmont Road Pullman, WA 99163
p u b l i s H1 7 er
the bank has the information, adds Jim linnane, senior vice president of Wells Fargo Home mortgage, Chicago. do a little comparison shopping before you walk in, suggests Barry zigas, director of housing policy for the Consumer Federation of America. study mortgage ads in the newspaper, says zigas, or call a few firms and ask what their best rate on a mortgage of a certain size, and ask about fees.
if you have limited funds for a down payment, you may only qualify for a government-insured FHA loan. Find FHA-approved lenders at www. hud.gov. moreover, first-time buyers with limited incomes may qualify for mortgages backed by states or localities, says linfield. many of these programs also are listed on the Hud site.
ave you ever checked off every item on your to-do list Friday, so that you can relax all weekend? its smart to apply the same strategy to homebuying. First, you worry about what you can afford and whether you qualify for a mortgage. Then, comes the fun part: touring homes and envisioning yourself living there. in the wake of the credit crisis, however, the business end of buying has taken a more serious turn. lenders are asking borrowers to fully expose their financial life and are tougher on credit and other factors before they lend out mortgage money. it can be intimidating, especially for first-time buyers who are unfamiliar with the process. Here, a look at your to-do list, a step-by-step guide to finessing financing:
make sure the lender passes your test. Although seeking a mortgage may feel akin to asking for a favor, lenders are in the service business. They should be attentive to your questions, keep you informed about the status of your application and keep the loan on track for a timely closing. Ask for the name of a loan officer at a lending or banking firm from a real estate agent who sells a lot of homes, suggests david reed, author of decoding the new mortgage market (AmACOm, 2009). good loan officers rely on steady referrals from top agents and they know that if they mess up a transaction they no longer get that agents business, reed says. if youre already banking with an institution youre happy with, apply for a mortgage there, suggests leslie linfield, executive director of the institute for Financial literacy, Portland, maine. Applying where you bank often means you dont have to gather records showing your savings, since
A mortgage lender takes a snapshot of your finances. Youll want to ensure that your money matters are pictured in the most favorable light:
OrgAnize YOur PAPers Youll need to put your hands on banking and brokerage statements, tax returns, pay stubs and W2 forms.
PAY Bills On Time late payments sink your credit score. With that, dont open new credit accounts, or seeks new loans before getting a mortgage.
limiT YOur mAx Keep credit card accounts from being maxed out, since this also lowers your credit score.
VieW YOur CrediT rePOrT Order a free report. review and take steps to fix any errors you may find. CTW Features
1 8r s t - t i m e H o m e b u y e r ss -G u i d eh o m e b u y e r s g u i d e A Special Supplement to Seaport Homefinder and Whitman County Parade of Homes fi r t time Fi
in the wake of the credit crisis, the business end of buying has taken a more serious turn. Lenders are asking borrowers to fully expose their financial life and are tougher on credit and other factors before they lend out mortgage money.
before business, today some real estate agents wont take you out to look at homes unless youre preapproved for a mortgage of a certain amount and can submit a purchase offer with confidence, explains Brian seibert, president of the michigan Association of mortgage Professionals. Often, a pre-approval is free or available for a minimal fee. A lender will take your financial vital signs credit score, income and savings and then provide a preliminary idea of the amount youll be able to borrow. some potential borrowers will be advised that they need to improve their credit standing or other factors before pre-approval. A lender should be able to give some guidance on how to boost your financial profile in order to eventually qualify. even if youre easily pre-approved, youll want to be on your best financial behavior to ensure that you do actually qualify for the loan when you formally apply after finding a home.
HBG-10-394596
Keith P. Dimeler
p u b l i s H1 9 er
morTGaGe InsuranCe
mortgage protection insurance shields a homeowners spouse from financial responsibility in the event that the owner passes away before paying off the mortgage. according to walters, mortgage insurance is one of the biggest things insurers like to sneak in that buyers are sometimes not aware of. essentially you can achieve same thing by getting plain old term insurance, she says. Its enough coverage to pay off the house, as well as whatever else. Private mortgage insurance is a different type of coverage that is connected with conventional loans. lenders require it for anyone who makes a down payment of less than 20 percent in order to protect their investment in the event that the homeowner defaults.
he topic of insurance can be daunting even for the most seasoned homebuyer. But dont wait until its time to sign for your home to think about it the more research you do in advance, the more comfortable you will feel the day you move in. Consider the following choices below before buying to avoid the wasted money and unnecessary heartache that can result from overpaying on your policy or paying out-of-pocket in an emergency.
Homeowners InsuranCe
as the most basic form of house insurance, homeowners insurance is
required for anyone who takes out a mortgage. It covers the home, any ancillary buildings (such as garages or sheds) and personal property. even for those paying with cash, homeowners insurance is important to cover investments in the case of serious circumstances. It provides basic financial protection against a variety of losses, such as theft, fire, hail, tornado or that dump truck now parked in your living room, says andrew wallingford, author of The Claim Game (Quarter sawn Books, 2009). This protection shields homeowners from potentially crippling financial loss. while most insurers include full
replacement cost coverage for the home and its contents, some require additional endorsements to cover personal property. Though it may be tempting to just sign the dotted line to move along the buying process, dont immediately settle with the first package the insurer presents. melissa walters, co-author of make no mistakes about Buying real estate (mill City Press, 2009), says the biggest mistake first-time homebuyers make is to not read through their homeowners insurance contract carefully to determine what is and is not covered. Think critically about whether you need personalized additions; for instance, if you have a home office, you need an additional endorsement for business pursuits. also remember to document all your personal property through video recording to ensure you have proof of what you covered.
TITle InsuranCe
Title insurance protects a homebuyer from other individuals making a claim on the property. The policy is paid for by the seller but can be negotiated by the buyer. For example, if a relative of the past owner later insists he has ownership of the land, title insurance protects the buyer against the legal costs associated with the investigation and research. In most states, it is required; however, if you choose to buy in cash then you must insist on getting a title policy that guarantees you against fraud and problems that could later arise. CTw Features
anCIllary InsuranCes
ancillary insurances, such as flood insurance or earthquake insurance, are add-ons that are often missed by firsttime homebuyers if not required. But even for homes outside zone requirements (for instance, if it isnt located in a flood zone), investing in the poli-
HBG-10-395227
The next time you buy a home, buy some peace of mind. Purchase an Owners Policy. Its an important way that First American is working to help you relax in your home for years to come.
LEWISTON CLARKSTON 1428 g street 330 diagonal lewiston, id clarkston, Wa 208.746.2323 509.758.5571
www.firstamholding.com
For your mortgage financing needs... Look no further than U.S. Bank Home Mortgage!
Conventional Mortgages Government FHA & VA Mortgages New Construction & Lot Loan Financing First Time Homebuyer Programs Home Equity Line of Credit And many more options
Gina.Marshall@usbank.com
Good Neighbor Agent since 1976 493 N Grand Avenue Pullman, WA 99163 Bus (509) 334-0407 gary.pickelsimer.b7v8@statefarm.com
Victoria.Rodriguez@usbank.com
www.garypickelsimer.com
Loan approval is subject to program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. 62909100520 Member FDIC
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InSPeCtoR gAdgetS
A more general way to assess an inspector it to look at the inspectors business as a whole. If an inspector is willing to invest a lot of money in their business, theyre serious about what they do, says Ramos, who says he has invested between $20,000 and $25,000 in tech equipment for his business.It helps me find more potential issues for my clients, he adds. Infrared meters, for instance, can detect moisture by variances in wall and ceiling temperatures, in addition to finding missing insulation and potential problems with heating and cooling systems. An inspection can uncover problems or major repairs needed on big-tickets items, such as roofs or the exterior of the structure, which can run anywhere from a few thousand dollars to more than $10,000, according to Ramos. on the safety side, old electrical panels are a concern. Ground-fault circuit interrupters outlets with the little turn-off button should be anywhere people, water and electricity come together says Ramos, such as the kitchen and garage.
2 2r s t - t i m e H o m e b u y e r ss -G u i d eh o m e b u y e r s g u i d e A Special Supplement to Seaport Homefinder and Whitman County Parade of Homes fi r t time Fi
4.
5. The Home: Ceilings, walls, floors, windows, doors, siding, crawlspace, driveways, garage, carport The Electrical: Main panel, branch wiring, outlets, switches, lighting, GFCI's, fans The HVAC System: Operation and description of heating and AC units, ductwork, thermostat The Plumbing: Main shut off, hot water tank, flow lines, drain lines, fixtures, floor drains The Insulation: Attic, crawlspace, walls, vapor barrier And More: Appliances, fire places, smoke detectors, garage door openers Shops and Outbuildings
Almost 30 years ago I started in construction with my Dad's drywall business and since then have worked on several homes in the LC Valley. My wife and I experienced the consequences of not hiring a home inspector in 1979 with the purchase of our first home. Unfortunately, due to a severe plumbing leak, we spent our first night in a hotel room. In 1995, as the general contractor for our current home, I became familiar with all aspects of construction and the importance of quality work. I found the process to be very interesting, and that interest ultimately resulted in the development of HHI. While working with me, not only will you be working with someone who loves what he does but also a name associated with quality.
doughavens@yahoo.com www.havenshomeinspections.com
f i r s t - t i m e h o m e b u y e r s g u i d e A Special Supplement to Seaport Homefinder and Whitman County Parade of Homes 23
The closing table is the final step before a buyer takes possession of a home. Heres how to stay calm, cool and collected
By Jeff Schnaufer CTW Features
i
How to Survive the Mad Dash to Closing
availab ome Buyers. Time H
f you ask Bruce Hahn for tips on how to survive the happy chaos of closing a home purchase, one thing the president of the American Homeowners Foundation in Arlington, Va., will jokingly advise is to take Valium, lots of Valium. The anxiety many buyers feel at closing time is no joke, with mountains of documents to prepare and sign, moving dates to arrange, unexpected costs and other complications. There are dozens of pitfalls in closing the deal, says Robert Irwin, author Tips and Traps When Buying A Home (McGraw-Hill, 2008). In general, closing a home purchase comes after the home seller has accept-
ed the buyers offer. Depending on what state you live in, the deal might go into escrow, where a title company holds the deed and funds, checks for liens, secures necessary documents and ensures the orderly transfer of the property. Lawyers and settlement agents also might be required to be present at closing. While each states requirements may be different, many of the pitfalls are the same. Here, experts highlight a few common problems in trying to close in todays market, with suggestions for making the deal go smoothly.
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2 4r s t - t i m e H o m e b u y e r ss -G u i d eh o m e b u y e r s g u i d e A Special Supplement to Seaport Homefinder and Whitman County Parade of Homes fi r t time Fi
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says. Appraisers unfamiliar with local neighborhoods may too heavily rely on data from foreclosures to make their assessment. As a result, the appraisal on which the loan is based may be significantly lower than the selling price [and] the property may not qualify for the needed financing, Irwin says.
low even though their scores down payment,and income have not changed since the application was made. Potential remedies include paying a higher interest rate, although Irwin says it could mean the buyer no longer qualifies because of a higher monthly payment.
wont get fixed in a day. Impatience can actually cost a buyer, adds Issamar Ginzberg, a licensed agent based in Brooklyn, N.Y. This can create a situation where you get taken for a ride, he says. When the other party sees you being too impatient to close, it may mean to them that they have an opportunity to get more out of you.
CREDIT CRUNCH?
In November, Congress extended this years deadline for the first-time homebuyer tax credit you must enter into a binding contract to buy the home before May 1, 2010, and close before July 1, 2010. Some wonder if the new deadline will lead to a closing crunch that prevents some homebuyers from getting in on the deal, although experts are doubtful. With the extension of the credit, Novembers deadline didnt create the mad dash that we expected, DeBord says.The July 2010 deadline shouldnt create much of a crunch for two reasons: First, there is now a perception that the government may continue extending credits. Secondly, most buyers have to be under contract at least two months before that July deadline.The vast majority of those transactions will be closed long before the deadline. CTW Features
p u b l i s H2 5 er
Furniture Center
12 bright ideas for spending your tax rebate on your new home
By Christopher AdAmson CTW Features
2 6r s t - t i m e H o m e b u y e r ss -G u i d eh o m e b u y e r s g u i d e A Special Supplement to Seaport Homefinder and Whitman County Parade of Homes fi r t time Fi
o, youve closed on a home and that federal first-time homebuyers tax credit should be coming your way
soon. Now what? First of all, realize it might take several weeks for the tax-credit form to get processed. Even then, some homeowners will only see the credit as savings on their taxes, so dont necessarily expect a check in the mail. Also, remember that the first-time buyer credits maximum is $8,000 it is equal to 10 percent of the purchase price of the house. With this is mind, there are still many smart ways to spend or save the governments gift. Here are some
Call the Realtors who work with people... not just houses!
SAvE IT SAFE
6. Put It In the Bank I think saving the money is a fabulous alternative, especially for buyers who have exhausted all their ... savings just to scrape up the down payment or closing costs, says TaraNicholle Nelson, a real estate broker and attorney, oakland, Calif. 7. Pay Down Credit Card Debt This will [free] up so much money on a monthly basis, allowing buyers to make their mortgage payments with more ease, Nelson says.
Andrea Abbott
Realtor
332-4567 x13
motleywilly@aol.com
ak.abbott@hotmail.com
332-4567 x14
Tom Hood
Realtor
Rene Diesso
Realtor
332-4567 x11
Rudy84@hotmail.com
332-4567 x12
Rene4205@aol.com
Carmel Travis
Associate Broker
Christal Rainey
Realtor
carmel@completebbs.com
332-4567 x18
332-4567 x15
Christalrainey@yahoo. com
Dan R. Antoni
Broker, GRI
332-4567 x24
DRA@turbonet.com
509-332-4567 800-342-7356
Pufferbelly Depot 330 N. Grand Ave.
www.pullmanrealty.com
p u b l i s H2 7 er
lg
509-332-2255
HBG-10-394604
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