The Born Solution
prides itself on supporting those looking to buy or sell property. Below you will find helpful resources that will help you on your journey.

If you have any questions, feel free to contact Suzette at
(714) 510-4848
for a no obligation consultation. 
I am here to support you!

2.  Buying at first sight. You may be in love with the place, but does it fit your family’s needs and budget? Make a list of your needs and wants and make sure the house fits your requirements. Check out the neighborhood and the community before you buy by visiting at different times of the day and week to learn about noise and traffic patterns. Even if you don’t have kids, check out the local schools to make sure your resale value will be good.

3.  Not getting pre-qualified and pre-approved. Being pre-qualified gives you a general idea of how much you can afford to borrow. Being pre-approved means a lender has verified your information and credit rating and agreed to provide you with a specific amount of money. You are in a better position to go house hunting knowing exactly how much you can afford and that you have financing.

4.  Overbuying. You may qualify to borrow more, but can you afford to? Analyze your monthly costs: debt, food, transportation, entertainment, and savings. As a general rule, your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Be sure to budget enough to cover closing costs (often two to five percent of the home’s purchase price), plus moving, redecorating and maintenance. Allow for increases in ongoing expenses such as utilities and taxes.

5.  Misplacing your trust. No matter how much you like the agent, sellers, inspector, or the guy down the block who vouches for them, remember this is a business transaction. Your decision is binding. Do your own research and know your support team’s roles and responsibilities.

6.  Relying on oral agreements. Get it right and get it in writing. Written agreements almost always trump oral ones when it comes to contracts. If the offer says the lawnmower is negotiable, but the agent says it’s included, get it in writing.

7.  Skipping the fine print. You need to understand what you’re signing before you pick up a pen. Ask for documents in advance, make time to read them and ask questions. Get copies of your mortgage papers a few days ahead of closing.

8.  Forgetting or betting on resale. Avoid buying a home that costs 50 percent more than neighboring homes and think before buying the most expensive home on the block. Your neighbors’ lower home values will weaken yours. Remember, markets change. If you buy intending to flip your investment and the market falls and you have to sell, your selling price may not be enough to even cover your mortgage.

9.  Making an unconditional offer. Protect yourself with at least two of these contingencies in your offer:

• Mortgage financing -- You’re pre-approved, but is the house? Before a bank will lend you money, it will want a formal appraisal of the property to confirm that there is sufficient equity in it to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.
• Inspection -- never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.
• Insurance -- confirm you can get adequate coverage. In some areas, it’s difficult to get hazard insurance.

10.  Having buyer’s remorse. No place is perfect. There will always be surprises. Don’t let a few initial blips spoil the whole ride....And don’t miss a great house waiting for the perfect one!    

Back to Top

Buying a Starter Home vs. a Forever Home

Buying your first home can be confusing. On the one hand, it can be tempting to stretch your budget to the limit and start off by buying the house of your dreams. On the other, you may be better off settling for something more modest to start with and then trading up in a few years once you’ve become more established financially.

Just because you can get the home you’ve always wanted right away, doesn’t mean you should. To weigh the pros and cons of starter homes and forever homes, and determine which option may be right for you, consider the following:

Immediate affordability
Buying a less-expensive starter home may be less stressful financially if you have only a limited amount saved for a down payment. You may also be able to avoid having to pay for private mortgage insurance if it means you’ll be able to put down at least 20 percent of the purchase price.

If you’re anticipating an increase in your earning power in the coming years, however, paying a little more to buy a home you’ll want to live in for the long-term may be well worth while. You may want to consider a mortgage such as a hybrid ARM that offers a lower initial payment for a fixed number of years before resetting to an adjustable rate mortgage.

Long-term payoff
When housing prices are on the rise, buying a starter home can be a great way to get your foot in the door of the real estate market. It allows you to build up some equity and hopefully resell your home for more than you paid for it. However, if the value of your property drops, you could end up living in your starter home for longer than expected or having to sell it at a loss, thereby reducing your chances of getting the home you really want.

You may be better off paying more for the home you really want now than hoping you’ll be able to squeeze some resale cash out of your starter home later on. Also, housing prices have recently come down a little nationally, and mortgage rates are still low, so now may be a good time to buy that home you’ve been dreaming about.

Future renovations
If you don’t plan on staying in your starter home for more than a few years, renovations may end up costing you in the long run. Small improvements such as a new deck or landscaping may add to your home’s resale value. But spending a great deal on major improvements may make it harder to recoup all the money you’ve invested. And if you end up listing your home for a few thousand dollars more than a similar home down the street, it may make it harder to sell.

If you do decide that you want to stay in your starter home for a long period of time, then it may make perfect sense to renovate. Over time, you can remodel it to suit your family’s evolving needs, eventually creating the house you wanted all along.

Family growth
Starter homes are typically small houses that don’t leave much room for an expanding family. But what if your situation changes suddenly before you can afford a new home? You may be forced to sell and move before you are ready to do so.

Purchasing a larger home to start off with may work well if you’re planning to have kids within a few years. The downside is that if you pay significantly more up-front and have higher mortgage payments, you may find it more difficult to support a growing family on less disposable income.

Cost of Living
Many first-time homeowners focus only on the down payment and underestimate how much it actually costs to live in a home. Some of the benefits of a starter home include lower utilities, maintenance bills and property taxes, and after a few years of coping with them, you will have a greater understanding of what living in a larger home will cost.

Buying a larger, forever home usually means all these cost-of-living expenses will be higher. However, purchasing one home, instead of two, will also mean paying only one set of closing costs, and being able to reap all the benefits of any money invested back into renovations or additions.

There’s no one right home-buying decision. The important thing is to take your time and consider all of the various available options. Buying a home is a serious financial commitment. You want it to also be one that will bring you joy for many years to come.

Back to Top

Ten Important Questions To Ask Your Home Inspector  
             
1. What does your inspection cover?
The inspector should ensure that their inspection and inspection report will meet all applicable requirements in your state if applicable and will comply with a well-recognized standard of practice and code of ethics. You should be able to request and see a copy of these items ahead of time and ask any questions you may have. If there are any areas you want to make sure are inspected, be sure to identify them upfront.

2. How long have you been practicing in the home inspection profession and how many inspections have you completed?
The inspector should be able to provide his or her history in the profession and perhaps even a few names as referrals. Newer inspectors can be very qualified, and many work with a partner or have access to more experienced inspectors to assist them in the inspection.

3. Are you specifically experienced in residential inspection?
Related experience in construction or engineering is helpful, but is no substitute for training and experience in the unique discipline of home inspection. If the inspection is for a commercial property, then this should be asked about as well.

4. Do you offer to do repairs or improvements based on the inspection?
Some inspector associations and state regulations allow the inspector to perform repair work on problems uncovered in the inspection. Other associations and regulations strictly forbid this as a conflict of interest.

5. How long will the inspection take?
The average on-site inspection time for a single inspector is two to three hours for a typical single-family house; anything significantly less may not be enough time to perform a thorough inspection. Additional inspectors may be brought in for very large properties and buildings.

6. How much will it cost?
Costs vary dramatically, depending on the region, size and age of the house, scope of services and other factors. A typical range might be $400-$500, but consider the value of the home inspection in terms of the investment being made. Cost does not necessarily reflect quality. HUD Does not regulate home inspection fees.

7. What type of inspection report do you provide and how long will it take to receive the report?
Ask to see samples and determine whether or not you can understand the inspector's reporting style and if the time parameters fulfill your needs. Most inspectors provide their full report within 24 hours of the inspection.

8. Will I be able to attend the inspection?
This is a valuable educational opportunity, and an inspector's refusal to allow this should raise a red flag. Never pass up this opportunity to see your prospective home through the eyes of an expert.

9. Do you maintain membership in a professional home inspector association?
There are many state and national associations for home inspectors. Request to see their membership ID, and perform whatever due diligence you deem appropriate.

10. Do you participate in continuing education programs to keep your expertise up to date?
One can never know it all, and the inspector's commitment to continuing education is a good measure of his or her professionalism and service to the consumer. This is especially important in cases where the home is much older or includes unique elements requiring additional or updated training.

Back to Top