Frequently Asked Questions

Betta Inspect it

Jeff East

027 480 5638

[email protected]

 

Peace of Mind Building Inspections

Damon Schubert

0800 766 463

[email protected] 

 

ABS Builders & House Inspections Limited

Andrew Smith

021 429 829

Betta Inspect It have produced a useful booklet providing information on things to look out for or to explain further what might be highlighted in their report.

It can be beneficial to get a building inspection prior to selling your home so that there are no surprises when a buyer does one.  You can choose to share this with the agent and/or the buyer or just use it as a guide for repairs you could make prior or disclosures you may need to make.  Here are some case studies showing the benefits.

Getting a building inspection (also known as a pre-purchase building report) done on a house you want to buy  has several important advantages:

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1. Identify Hidden Issues

A building inspection can uncover structural problems, leaks, weather-tightness issues (e.g. leaky homes), dampness, rot, pests, or poor workmanship that may not be visible during a viewing.

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2. Budget for Repairs

An inspection report helps you estimate the cost of repairs or maintenance that may be required in the short or long term. This is crucial for financial planning and could influence your offer.

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3. Strengthen Negotiation Power

If the report identifies issues, you can:

• Renegotiate the price,

• Request that repairs be completed before settlement,

• Or even walk away from the deal (if your offer is conditional).

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4. Peace of Mind

Knowing the actual condition of the property reduces risk and anxiety. It helps you make a confident, informed decision, especially when making what could be your biggest investment.

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5. Insurance and Lending Requirements

Some banks and insurers may ask for a building inspection before they approve a mortgage or insurance policy—especially if the property is older or has suspected issues.

 

Most mortgages originated today calculate interest in arrears, unlike consumer loans which calculate interest to the date of payment receipt. As an example, when borrowers pay their February mortgage payments, they are paying the January interest. This method of calculating interest is based on a 360 day year in which each month has 30 days.

Most mortgages originated today calculate interest in arrears, unlike consumer loans which calculate interest to the date of payment receipt. As an example, when borrowers pay their February mortgage payments, they are paying the January interest. This method of calculating interest is based on a 360 day year in which each month has 30 days.

The easiest way to avoid PMI is by putting 20% down payment; however, PMI can also be avoided if you only have 5% or 10% for the down payment. The way to accomplish this is via a first and second mortgage combination commonly referred to as 80/10/10^s or 80/15/5^s.

These two methods combine a first mortgage lien for 80% of the home price with a second mortgage lien for either 10% or 15% of the home price leaving the remaining 5% or 10% as the down payment. Because the first lien is at the magical 80% loan=to-value, there is no PMI required, even though a second mortgage is being |piggybacked| onto the financing thus allowing for the lessor down payment.

While the second lien terms are not as attractive as first lien rates, the second mortgage is still home mortgage interest and thus deductible as such on your federal tax return where PMI is insurance and offers no deduction.

Many tax authorities will mail an informational copy of the real estate tax statement to the homeowner in addition to the Credit Union.  However, there are some statements tax authorities do not forward to the credit union, and in special cases we will need your assistance in obtaining the bill. If you receive a statement for any of the following, please forward it to our office by mail or fax.

• delinquent real estate taxes
• supplemental or additional real estate taxes
• special assessments
• if the tax authority will not honor a bill request from another party.

Title insurance is insurance that protects the lender and buyer against any losses incurred from disputes over the title of a property.

Most mortgages originated today calculate interest in arrears, unlike consumer loans which calculate interest to the date of payment receipt. As an example, when borrowers pay their February mortgage payments, they are paying the January interest. This method of calculating interest is based on a 360 day year in which each month has 30 days.

Generally, real property never depreciates in value, or more so, it is not very common for property to depreciate.  This is why it’s a great investment. Make sure you carefully consider location and community when choosing a home, it can effect the homes future value greatly.

If you are in a newly developed area, do some research on the construction of the surrounding areas being developed to determine if they may effect your homes value.

This is really just a matter of preference, but both newer and older homes offer distinct advantages, depending upon your unique taste and lifestyle.

Older homes can generally cost less than new homes, however, there are many cases where new homes can also cost less then older homes. Most new homes will not have any backyard landscaping and some don”t include any front landscaping either. With an older home, the landscaping is normally already completed and could have 10”s of thousands of dollars in landscaping done, which is included in the purchase price.

Taxes on some older homes may also be lower. Some people are charmed by the elegance of an older home but shy away because they”re concerned about potential maintenance costs. Consider a home warranty to get the peace of mind you deserve. A good Home Warranty plan protects you against unexpected repairs on many home systems and appliances for a full year or more after you move in.

In a new house, you can pick your own color schemes, flooring, kitchen cabinets, appliances, custom wiring for TV”s, electrical, computers, phones and speakers, etc., as well as have more upgrade options. Modern features like media rooms, extra-large closets and extra-large bathrooms and tubs are also more attainable in ground-up construction. In a used home, you rely largely on the previous resident”s tastes and technological whims, unless you plan to farm thousands into a remodeling and rewiring.

New-home designers can use new building materials such as glazed Energy Star windows, thicker insulation and other technology that will lower future energy costs for the owner. Most states now have minimum energy-efficiency requirements for new construction. Kitchens and laundry areas in new homes are designed to house more efficient energy-saving appliances. Older homes, unless they have undergone an energy retrofit, usually cost much more per square foot to air-condition and heat.

Builders have to follow very strict guidelines in new-homes and additions, especially in the West and Northwest, where earthquake safety standards must be observed. In general, new homes are usually more fire-safe and better accommodating of new security and garage-door systems.

Older homes can be better judged for their quality and timeless beauty. New homes that now possess a smooth veneer might reveal the use of substandard building materials or shoddy workmanship over time.

As you can see there are advantages and dis-advantages to each, but it really comes down to what fits you and what you are looking for in a home.

An agent who is authorized to open and run his/her own agency. All real estate offices have one principal broker.

If you’re prequalified it means that you POTENTIALLY could get a loan for the amount stated to you, assuming that all of the information you provide to the bank is accurate and true. This is not as strong as a preapproval.

If you’re preapproved, it means that you have undergone the extensive financial background check, which includes looking at your credit history, previous tax returns and verifying your employment – and the lender is willing to give you a loan, basically meaning you’re approved!

You will usually be provided an accurate figure which shows the maximum amount that you are approved for.  Most sellers prefer buyers that have been preapproved because they know that there will not be any problems with the purchase of their home.

Title insurance is insurance that protects the lender and buyer against any losses incurred from disputes over the title of a property.

When a loan is originated, the mortgage documents specify the escrow conditions. This has become a standard practice for all mortgages, including FHA, VA and conventional mortgages.  Occasionally on conventional loans, FRFCU waives the collection of escrow requirement at closing if the member has a minimum 20% equity position in the property.

Title insurance is insurance that protects the lender and buyer against any losses incurred from disputes over the title of a property.