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“FICO®” scores are a type of credit score developed by Fair Isaac Corporation.  FICO® scores use credit bureau information to obtain a score which indicates how likely someone is to make their loan payments on time.  Millions of consumers’ credit bureau records were used to develop score cards, and all of the consumer data – not just negative information – was included to develop the system.  FICO® scores range from approximately 350-850.  The higher the score, the lower the probability of default on the loan.

Because each borrower’s credit score is a reflection of his or her unique credit profile, it is not possible to quantify in advance exactly how each item in your credit history impacts your credit score. No one can tell you, for example, how much your credit score will be affected if you pay off a delinquent account or cancel a credit card. We know, however; that there are things you can do to improve your credit profile. Some of these factors include:

Making Timely Payments. Making you payments on time is the best way to increase your score. Delinquencies, foreclosures, bankruptcies and judgments will decrease your score.

The Number of Trade Lines. The number of credit cards, lines of credit and other types of credit (“trade lines”) you have available will affect your score. If you have a lot of trade lines, this may decrease your score because of the risk that you might not be able to pay off all of your accounts, and this may affect your ability to pay off your mortgage loan. You may wish to consider canceling credit cards you do not use regularly or choosing 2-4 cards to use and canceling the rest. If you close or cancel an account voluntarily, it will not have a negative effect on your credit score. You may wish to reconsider accepting “pre-approved” offers of credit cards, or if you accept an offer, perhaps you should cancel another credit card. On the other hand, if you have no trade lines, this will likely decrease your score. Lenders generally want to see that you have some available credit and that you can handle your credit wisely.

How You Use Credit. The amount outstanding on each of your credit cards will also affect your score. In general, the lower the amount outstanding, the more likely it is that your score will be higher.

Do Not Apply For Credit You Do Not Need. Whenever you apply for credit, the creditor will obtain a credit report from one or more of the three credit bureaus. Each credit inquiry will stay on your record and will affect your credit score. Even if you are turned down for the credit or change your mind and withdraw your application, your credit score will be affected. This is because each inquiry suggests that you are increasing the amount of credit available to you. Before you give your Social Security number to someone, make certain you know how they are going to use it. A Social Security number is almost always required to run a credit report. But don’t let the fear of inquires stop you from shopping for the best deal when you need auto or home financing. Recently, the credit bureaus have recognized that borrowers may apply for credit at more than one place for the same transaction. Generally, the credit scoring companies will consider all auto or mortgage loan inquires received within 14 day period as one inquiry so the additional inquires will not affect your credit score.

We encourage you to obtain a copy of your credit report and to review it for accuracy before submitting your loan application. If you find any errors, correcting them prior to submitting your loan application may result in a better likelihood your application will be approved and also that the time for approval will be lessened. And remember when you order a copy of your credit report to make sure it’s accurate, this will NOT show up as an inquiry on your record.

Learn what a Condo is. Learn the advantages and disadvantages of living in a Condo.

Mold is everywhere. You can’t eliminate it. If you could we’d all be in trouble as nothing would ever decay and we’d all be so buried in junk and debris that nothing could grow on the earth. But we don’t much like to see mold indoors and certainly not on our walls, ceilings, or furniture.

There we remove it or clean it off. Because there are potential health risks involved, especially for some people, and because there are significant costs involved in large mold remediation projects, home buyers often contact mold inspectors to ask about testing a home for mold during the home buying process.

A thorough building investigation for problematic mold needs to address hidden mold reservoirs, for which mold inspectors approach is to complete a detailed inspection and building (leak) history as well as to record occupant observations and complaints.

A low-cost superficial test for mold (such as an “air test for mold”, a “home test kit for mold” or a “culture”) is likely be a waste of money since those approaches to screening a building for mold contamination are unreliable. Certainly if problem mold is visible that’s unambiguous. But superficial visual inspections and grab-tests for mold in air or on surfaces, performed without being accompanied by a very thorough building inspection, history taking, and occupant interview, have a high risk of missing important reservoirs of problem mold in a building.

Some “mold inspectors” may charge as much as a true expert to examine your building ($750 to $2000) but in fact may be doing little more than a quick inspection for visible mold and a few superficial tests. This is also an unreliable approach.

Since water and moisture are gating factors for indoor mold contamination we recommend that you start with a thorough inspection of the building for conditions likely to produce a mold problem – leaks, moisture traps, bad ventilation, history of flooding, etc.

Why to Hire a Good Home Inspector to Check for Mold-Producing Conditions in a Building

If your “mold inspector” is simply going to enter the building, collect a few air, surface, or culture samples, and perhaps report on obvious visible mold in the living space, you’re not receiving a very professional nor very reliable service.

An experienced, thorough, detailed, qualified home inspector will be much better at recognizing those (mold-conducive)conditions than a typical “mold inspector” or a typical industrial hygienist who does not know building science and who lacks experience in identifying where and why mold problems occur in buildings.

Home inspection standards, training, and experience teach inspectors where water, leaks, and moisture problems occur in buildings. Here are some examples of water or leak history problems that can create a hidden mold problem in a building:

A one-time basement flood due to a burst pipe, sewer backup, or area flooding – the basement may now look clean and dry but significant mold contamination may be present in basement walls, under carpeted floors, or in building insulation.

An older home with poor under-roof ventilation may have experienced condensation and moisture-related mold contamination of the attic insulation, roof sheathing, or hidden side of ceiling drywall; in northern climates such a home may have had ice dam leaks into wall cavities, producing hidden mold in building walls.

A home where plumbing leaks from an overflowing bath tub, leaky fixture traps, or supply piping leaks may have had leaks into wall and ceiling or floor cavities, leading to hidden mold contamination A home with a history of recurrent a damp or wet crawl space is at extra risk of moldy crawl space insulation, producing mold species whose spores move upwards into the occupied space by riding normal air leaks and air convection currents.

A home inspector is expected to recognize these leak and moisture problems even though they are not performing an environmental inspection.

Wells and septic systems are big ticket items. Wells can cost as much as $6,000.00 to install. Septic systems as much as $15,000.00. This is a very important inspection.

The Well Inspection:


Because the well is underground it is impossible to see and know exactly what is going on there. The inspection does not include removing the well pump which is at the bottom of the well and sending it to a well technician for testing. However, there are things that can be inspected for, that will give them clues about the condition of the well pump, such as the pipe coming from the well pump.

Is it noisy or vibrating? What is the reading on the well pressure tank gauge when the water is running? Does the well pressure tank recover quickly or is it sluggish and slow? They will recommend that a water sample be taken with every well inspection. Not only do you need to know if the well equipment is operating properly, you need to know that the well is producing healthy, clean water that will not make you sick.

The Septic Inspection:

When a septic inspection is done for you, it will also include literature about septic systems and how to maintain a septic system. It is important to have the septic pumped during the inspection. Only by pumping the septic system can the inspector see the baffles inside the tank that separate the solids from the waste water. If the baffles are deteriorated it will allow the solids to clog up the drain field. Drain fields are very expensive to replace. The inspector also needs to examine the inside of the septic tank for cracks or tree roots that can cause problems with the septic system.

The inspector will also evaluate the location and the condition of the drain field. Sometimes a long rod will be placed down inside of the view ports on the drain field to check for standing water. We will evaluate the system based on how many people will be living in the home. If the septic is working with one person living in the home and a family of 4 or 5 move in this can affect the septic system drastically.

The average home plumbing system represents approximately 8% of a home’s overall value, meaning that the plumbing in a $200,000 home is valued at $16,000. To help avoid unexpected and costly plumbing problems, plumbing inspectors recommend home buyers watch for telltale plumbing clues when shopping for a home.

Check for Toilet Plumbing Problems

•    A soft floor around the base of a toilet is a sign of water damage. Straddle the toilet and rock back and forth on each foot. If the floor feels spongy, it has probably experienced water damage.
•    Check for toilet flushing problems. See how fast each toilet flushes. Slow toilets may indicate water pressure problems or partially clogged pipes.

Inspect Bathtub Plumbing

•    Check for loose tiles that may indicate a water leak behind the wall or beneath a floor.
•    Press on the walls where they meet the tub. If they’re soft, water damage has occurred.

Check Water Supply Pipes

•    Test water pressure by turning on the water in the bathtub then the kitchen sink. If there is a noticeable reduction in volume, the pipes may need to be replaced because of calcium and mineral buildup.
•    If the house has a basement or crawl space, check for rot or mildew around exposed pipes and signs of leaks or recent repairs.
•    Be sure the house has a main sewer line “cleanout” port and that it is accessible.

Water Heater Troubleshooting Tips

•    Check the date on the water heater (the first four digits of the heater’s serial number are the month and year it was built). Any gas or electric water heater over 15 years old should be replaced to avoid potential water heater problems.
•    If the gas water heater vent ties into the home’s chimney, verify that the chimney is lined, indicated by a metal liner sticking out of the top.

Other Vital Home Plumbing Inspection Tips

•    Make sure the garbage disposer, dishwasher and washing machine connections work properly and supply hoses aren’t
cracked or bulging.
•    Use a flashlight to check for signs of water damage inside cabinets around sinks and in the laundry room. Turn water
supply valves on and off to test for leaks.
•    Marshy spots or areas of especially green grass in the front yard indicate possible breaks in water supply pipes or sewer
mains.
•    A professional video camera inspection of a sewer main before the sale, could save a buyer thousands of dollars in
underground sewer repairs.

One of the more effective measures in roof maintenance is frequent roof inspection. This comprehensive inspection should be undertaken by an experienced professional roofing contractor, or a licensed home inspector. Generally, a roof inspection is carried out with a visual inspection of all aspects of the roofing construction, from both the interior and exterior of the structure.

Proper roof installation is, of course, one of the most critical aspects of building construction. A well-constructed roof assures the longevity of the structure, as well as the comfort of the structure’s occupants. It is also the most exposed aspect of any building, and competent roofers are well aware of the construction techniques and materials necessary for a roof to stand up to weather and abuse. Part of any roofing project involves the implication that frequent and competent roof inspections will be undertaken on a regular basis.

As a rule, a roofing inspector will begin the roof inspection by locating the various dormers, chimneys, crickets, gutters, and any flashing points needing special attention. A closer inspection may be made, especially of the condition of the roof surfacing material — with binoculars for a difficult, higher pitched roof — or by actually accessing a lower pitched, or a flat roof. Obviously the exterior inspection will focus on the condition of the roof surface, exposed flashing, gutters, and chimney construction.

A proper roof inspection is also undertaken from inside the structure, as well. Inspection of eves, interior chimney surfaces, fasteners, roof braces, and support materials, such as the condition of the plywood sheathing for a wood roof, is often an indication where closer exterior inspection is needed. A proper roof inspection will take from three-quarters of an hour to several hours, depending on the size and complexity of the roof.

Some common problems addressed in a roof inspection are blistering due to trapped water vapor, open laps around flashing due to poor adhesion of membrane to metal flashing, splitting of roof surface material, deteriorating or loose flashing, and fastener issues. Older roofs are inspected for brittleness and surface deterioration, while newer roofs are notable for showing settlement problems that are easily corrected.
Crumbling chimneys and loose or defective gutters are also included in the issues to be addressed in a roof inspection.

The FHA loan insurance program was created to help first-time buyers get into homes. However, first-time buyers usually don’t have 20% down payments and may have a spottier credit history. In order to provide and protect taxpayers from paying for defaulted FHA mortgages, the loans include mortgage insurance premiums (MIP).


The FHA Mortgage Insurance Premium

FHA mortgage insurance is similar to the private mortgage insurance (PMI) required for conventional mortgages with down payments below 20%, but there are some key differences.

Up-front fees: Unlike the traditional PMI, the FHA MIP includes a 1.75% up-front fee at time of closing. The fee is usually included in the loan, so you pay it over the life of the loan.

Rate: The FHA MIP is also mandated at .55% of the loan amount per year, divided over 12 months. PMI rates are also usually .55% divided over 12 months.

Removal: Unlike PMI, the FHA MIP is mandatory for the first five years of loans with terms of more than 15 years, even if your loan balance reaches 78% of the original home value or sales price. PMI premiums can often be removed if the loan balance is below 80% of the current market value. Conventional lenders are required to automatically remove PMI when the loan balance falls to 78% of the original loan amount.

Exceptions: There are some exceptions to the mandated FHA mortgage insurance premium. If you have a loan term of 15 years or less AND put down 10% or more, the MIP will be cancelled when the loan balance is 78% of the original appraised value or original sales price, whichever is less. If you pay 20% down on a 15-year loan, you won’t be required to pay the MIP.

How the MIP Affects Your Loan Decision

Most people want to avoid paying mortgage insurance because it adds no value to the home and doesn’t go towards the principal. If you don’t have a 20% down payment, then you will most likely have to pay it for any loan, whether it’s from the FHA or a Conventional Lender. In that case, carefully compare the costs of each loan.

If you’ve saved a 20% down payment and have a good credit history, then a conventional mortgage is probably better for you because you won’t have to pay PMI on a 30-year mortgage, as you would with an FHA loan. However, if your down payment is a family loan or gift, you may not qualify for a conventional loan even with 20% down. In that case, an FHA loan with MIP may be your only option. If you can afford the higher payments for a 15-year mortgage, that may be the best option.