Southwest Oklahoma Home Builders Blog

Community Services

Thu, 06 Oct 2011 00:00:00 -0500

Utilities

AT&T - Residential Services	800.464.7928
CenterPoint Energy (Natural Gas) centerpointenergy.com	888.275.5265
Public Service Company of Oklahoma (PSO) American Electric Power (AEP) psoklahoma.com	888.216.3523

Services

American Fidelity Cable 811 SW D Ave, Lawton fidelitylawton.com	580.353.2250
City of Lawton Water Department 103 SW 4th St, Lawton	580.581.3401

Counties

CADDO
Anadarko	501 W Virginia	405.247.2481

COMANCHE
Cache	PO Box 486, 404 C Ave	580.429.3354
Elgin	8183 OK -17, Elgin, OK	580.492.5772
Fletcher	301 W Cole Ave	580.549.4786
Sterling	2 N 2nd Ave	580.365.4445
Apache	102 E Evans Ave	580.588.3505
Geronimo	100 W Main St	580.353.5511

COTTON
Walters	129 E Colorado St	580.875.3337

KIOWA
Hobart	111 E 3rd St	580.726.3100

JACKSON
Altus	300 E Commerce St	580.481.2216

STEPHENS
Duncan	800 W Martin Luther King Ave	580.470.2061
Marlow	115 N 2nd St	580.658.5401

TILLMAN
Frederick	200 W Grand Ave	580.335.7581
Grandfield	223 S Main St	580.479.5215

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Wed, 21 Sep 2011 00:00:00 -0500

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New EPA requirements for Home Builders

Thu, 10 Feb 2011 12:00:15 -0600

Builders will be required to have a fully-active partnership with ENERGY STAR, including completed ENERGY STAR Orientation training, to be eligible to label homes under the ENERGY STAR Version 3 guidelines. The self-guided, online ENERGY STAR Orientation training will cover Version 3 guideline information, partner responsibilities, and available resources. This training, estimated to take an hour to complete, is now available at www.energystar.gov/mesa. Builders will be required to complete the online course by the end of 2011 as a condition of continued partnership with the program. Also, beginning in 2011, all new builders seeking to partner with ENERGY STAR will need to complete the training before their partnership is activated. One company representative per builder will be required to complete the course; however, additional representatives are encouraged to also complete the training.

Guide to Buying a New Home

Tue, 22 Jul 2008 11:53:22 -0500

If you are thinking of buying a new home, you must pay close attention to a great many details to ensure that you find one that will suit your needs and preferences. Before you start shopping, you should sit down with the members of your household to discuss the features you would all like in a new home. You should also determine how much you can afford to pay for a new home. Click here to view an Online Mortgage Calculator [Please note: Clicking on the link to the mortgage calculator will take you outside LHBA's HOME page. LHBA is not responsible for the contents of external Web sites].

To organize your thoughts, write each separate feature that you want on a 3X5 card, and arrange the cards in order of their importance to you. For instance, if you like to cook, you may want a home with a large, well-equipped kitchen. Or you may settle for a small kitchen so that you can have extra space for a library, office or computer room. Some home buyers seek large, open interior spaces, while others prefer traditional rooms that afford more privacy. Some choose homes with large yards. Others opt for condominiums where they can avoid yard maintenance entirely.

While looking for a home, consider whether your needs are likely to change over time. If you plan to add rooms, find out if there is enough space on your site for such expansion and whether such additions are permitted by your local jurisdiction.

Housing Glossary

Tue, 08 Jul 2008 22:40:20 -0500

When you start shopping for a new home, you may encounter some words and terms with which you are unfamiliar. The following glossary will help you to be a better informed shopper.

Adjustable Rate Mortgage (ARM). A loan whose interest rate is adjusted according to movements in the financial market.

Amortization. A payment plan by which a borrower reduces a debt gradually through monthly payments of principal and interest.

Annual Percentage Rate (APR). The annual cost off credit over the life of a loan, including interest, service charges, points, loan fees, mortgage insurance, and other items.

Appraisal. An evaluation to determine what a piece of property would sell for in the marketplace.

Appreciation. The increase in the value of a property.

Assessment. A tax levied on a property or a value placed on the worth of property by a taxing authority.

Assumption. A transaction allowing the buyer of a home to assume responsibility for an existing loan on the home instead of getting a new loan.

Balloon. A loan which has a series of monthly payments (often for 5 years or less) with the remaining balance due in a large lump sum payment at the end.

Binder. A receipt for a deposit paid to secure the right to purchase a home at terms agreed upon by the buyer and seller.

Buydown. A subsidy (usually paid by a builder or developer) to reduce the monthly payments on a mortgage loan.

Cap. A limit to the amount an interest rate or a monthly payment can increase for an adjustable rate loan either during an adjustment period or over the life of the loan.

Certificate of Occupancy. A document from an official agency stating that the property meets the requirements of local codes, ordinances, and regulations.

Closing. A meeting to sign documents which transfer property from a seller to a buyer. (Also called settlement)

Closing Costs. Charges paid at settlement for obtaining a mortgage loan and transferring real estate title.

Conditions, Covenants, and Restrictions (CC and Rs). The standards that define how a property may be used and the protections the developer has made for the benefit of all owners in a subdivision.

Condominium. A home in a multi-unit complex; each purchaser owns an individual unit, and all the purchasers jointly own the common areas, such as the surrounding land, hallways, etc.

Conventional Loan. A mortgage loan not insured by a government agency (such as FHA or VA).

Convertibility. The ability to change a loan from an adjustable rate schedule to a fixed rate schedule.

Cooperative. A form of ownership in a multi-unit complex; the purchasers own shares of the entire complex rather than owning individual units.

Credit Rating. A report ordered by a lender from a credit bureau to determine if the borrower is a good credit risk.

Default. A breach of a mortgage contract (such as not making monthly payments).

Density. The number of homes built on a particular acre of land. Allowable densities are usually determined by local jurisdictions.

Down payment. The difference between the sales price and the mortgage amount on a home. The down payment is usually paid at closing.

Due-on-Sale. A clause in a mortgage contract requiring the borrower to pay the entire outstanding balance upon sale or transfer of the property. A mortgage with a due-on-sale clause is not assumable.

Earnest Money. A sum paid to the seller to show that a potential purchaser is serious about buying.

Easement. Right-of-way granted to a person or company authorizing access to the owner’s land; for example, a utility company may be grated an easement to install pipes or wires. An owner may voluntarily grant an easement, or in some cases, be compelled to grant one by a local jurisdiction.

Equity. The difference between the value of a home and what is owed on it.

Escrow. The handling of funds or documents by a third party on behalf of the buyer and/or seller.

Federal Housing Administration (FHA). A federal agency which insures mortgages that have lower down payment requirements than conventional loans.

Fixed Rate Mortgage. A mortgage whose interest rate remains constant over the life of the loan. The payments are not necessarily level. (See Graduated Payment Mortgage and Growing Equity Mortgage).

Fixed Schedule Mortgage. A mortgage whose payment schedule for the life of the loan is established at closing. The payments and interest rate are not necessarily level.

Graduated Payment Mortgage (GPM). A fixed-rate, fixed-schedule loan which starts with lower payments than a level payment loan; the payments rise annually over the first 5 to 10 years and then remain constant for the remainder of the loan. GPMs involve negative amortization.

Growing Equity Mortgage (Rapid Payoff Mortgage). A fixed-rate, fixed-schedule loan which starts with the same payments as a level payment loan; the payments rise annually, with the entire increase being used to reduce the outstanding balance. No negative amortization occurs, and the increase in payments may enable the borrower to pay off a 30-year loan in 15 to 20 years, or less.

Hazard Insurance. Protection against damage caused by fire, windstorm, or other common hazards. Many lenders require borrowers to carry it in an amount at least equal to the mortgage.

Housing Finance Agency. A state agency which offers a limited amount of below-market-rate home financing for low-and moderate-income households.

Index. The interest rate or adjustment standard which determines the changes in monthly payments for an adjustable rate loan.

Infrastructure. The public facilities and services needed to support residential development, including highways, bridges, schools, and sewer and water systems

Interest. The cost paid to a lender for the use of borrowed money.

Joint Tenancy. A form of ownership by which the tenants own a property equally. If one dies, the other would automatically inherit the entire property.

Level Payment Mortgage. A mortgage whose payments are identical for each month over the life of the loan.

Mortgage Broker. A broker who represents numerous lenders and helps consumers find affordable mortgages; the broker charges a fee only if the consumer fins a loan.

Mortgage Commitment. A formal written communication by a lender, agreeing to make a mortgage loan on a specific property, specifying the loan amount, length of time and conditions.

Mortgage Company (Mortgage Banker). A company that borrows money from a bank, lends it to consumers who want to buy homes, then sells the loans to investors.

Mortgagee. The lender who makes a mortgage loan.

Mortgage Loan. A contract in which the borrower’s property is pledged a s collateral and which can be repaid in installments over a long period. The mortgagor (buyer) promises to repay principal and interest, to keep the home insured, to pay all taxes, and to keep the property in good condition.

Mortgage Origination Fee. A charge by a lender for the work involved in preparing and servicing a mortgage application (usually 1 percent of the loan amount).

Negative Amortization. An increase in the outstanding balance of a loan when a monthly payment is not large enough to cover all of the interest due.

Note. A formal document showing the existence of a debt and stating the terms of repayment.

PITI. Principal, interest, taxes, and insurance (the 4 major components of monthly housing payments).

Point. A charge of 1 percent of the mortgage amount. Points are a one-time charge assessed by the lender at closing to increase the interest yield on a mortgage loan.

Prepayment. Payment of all or part of a debt prior to its maturity.

Principal. The amount borrowed in a loan, excluding interest and other charges.

Property Survey. A survey to determine the boundaries of your property. The cost will depend on the complexity of the survey.

Rapid Payoff Mortgage. (See Growing Equity Mortgage).

Recording Fee. A charge for recording the transfer of a property, paid to a city, county, or other appropriate branch of government.

Real Estate Settlement Procedures Act (RESPA). A federal law requiring lenders to provide home buyers with information about known or estimated settlement costs. The act also regulates other aspects of settlement procedures.

R-Value. The resistance of insulation material (including windows) to heat passing through it. The higher the number, the greater the insulating value.

Sales Contract. A contract between a buyer and seller which should explain, in detail, exactly what the purchase includes, what guarantees there are, when the buyer can move in, what the closing costs are, and what recourse the parties have if the contract is not fulfilled or if the buyer cannot get a mortgage commitment at the agreed-upon terms.

Settlement. (See Closing).

Shared Appreciation Mortgage. A loan in which partners agree to share specified portions of the down payment, monthly payment, and appreciation.

Tenancy in Common. A form of ownership in which the tenants own separate but equal parts. To inherit the property, a surviving tenant would either have to be mentioned in the will or, in the absence of a will, be eligible through state inheritance laws.

Title. Evidence (usually in the form of a certificate or deed) of a person’s legal right to ownership of a property.

Transfer Taxes. Taxes levied on the transfer of property or on real estate loans by state and/or local jurisdictions.

Veterans Administration (VA). A federal agency which insures mortgage loans with very liberal downpayment requirements for honorably discharged veterans and their surviving spouses.

Walk-Through. A final inspection of a home before settlement to search for problems that need to be corrected before ownership changes hands.

Warranty. A promise, either written or implied, that the material and workmanship of a product is defect-free or will meet a specified level of performance over a specified period of time. Written warranties on new homes are either backed by insurance companies or by the builders themselves.

Zoning. Regulations established by local governments regarding the location, height, and use for any given piece of property within a specific area.

What You Should Know About Infrastructure

Tue, 08 Jul 2008 22:39:55 -0500

Most people don't find infrastructure to be a very exciting subject. However, were it not for infrastructure, you probably would have trouble living in the home you currently occupy. Infrastructure includes all of the basic public services and facilities that a community needs to function. Some of these services directly serve each individual property, such as water, sewer, roads, storm water management, gas, electric, telephone and other facilities. Other types of infrastructure benefit the general public within a community, such as schools, parks, landfills, water plants, wastewater treatment plants, libraries, fire and police service, hospitals, arterial and interstate roads, mass transit, courts and other similar facilities.

The United States has developed serious infrastructure problems, and these problems have significantly worsened in recent years. Deteriorating roads and bridges create safety problems and impede the movement of traffic and commerce. Water supply delivery systems are proving to be inadequate and/or inefficient to meet the growing needs for residential, agricultural, and commercial uses.

Money needs to be found to meet transportation needs while addressing environmental concerns over automobile usage. Investment in infrastructure in the U.S. peaked in the mid- to late 1970s. Since the early 1980s, federal funding of infrastructure has been declining. State and local governments have been left to seek new sources to build and maintain infrastructure.

Experts say that hundreds of billions of dollars must be spent to solve America's infrastructure problems.

Infrastructure construction has traditionally been funded out of local tax revenues. However, in recent years, local governments have increasingly shifted the burden of financing these facilities onto new homes in the form of fees that are paid during the development process. As a result, new homes have become less affordable, and potential first-time buyers are having increasing difficulties entering the market.

Before we can solve our infrastructure problems, we must first acknowledge that the problem exists and dedicate ourselves to finding creative and constructive solutions. Various economic studies have shown a direct link between infrastructure spending and economic growth and productivity. By improving our infrastructure, everyone in the community can benefit.

What You Should Know About Trees and Landscaping

Tue, 08 Jul 2008 22:39:09 -0500

After you have bought the new home of your dreams from your builder, you will probably immediately start thinking about personal decorating touches that you can add. When considering these personal touches, don't think just about the interior of the house.

The landscaping around it will also be very important. Trees can affect everything from your heating and cooling bills to your resale value -- some surveys have put this increased value in the range of 10 to 15 percent. Trees can produce shade, food, firewood or just a beautiful scene. They can also attract birds and other wildlife.

Before planting trees, it is important to choose species that will thrive under local conditions. For instance, in areas with high temperatures and little water, plant trees that are drought tolerant. In areas with high rainfall, try to plant trees that demand large amounts of moisture. By planting trees that grow naturally in your area, you can be pretty sure they will be successful. Consult a local nursery for suggestions on trees that will thrive where you live.

Location on your property is another important consideration. Choose spots with adequate sunlight and water, and make sure the trees are protected from possible pests. A mesh fence can do much to prevent animals from injuring your saplings. Try to estimate how long the tree will take to become fully grown and what the tree will look like at full size.

Trees are most vulnerable in their first years of life and should be tended with special care. Newly planted trees should be watered deeply and on a regular basis. Allowing a hose to drip at the base of a tree for several hours will permit the water to soak deep into the soil and encourage deep rooting. This will give the tree a better chance of surviving drought.

Many personal decisions go into tree planting. In areas with hot summers and cold winters it is best to plant deciduous trees. These trees will provide shade in the summer but will allow desired sunlight to pass through in the colder months. Some trees are better than others for providing a buffer against noise and unwanted views. Also, personal expectations should be considered.

What You Should Know About Recycling

Tue, 08 Jul 2008 22:38:54 -0500

Americans are recycling more than ever before, and with good reason. Recycling saves energy, natural resources and landfill space

Aluminum is a material for which a strong recycling market exists. Recycling aluminum cans saves 95 percent of the energy that it takes to manufacture a new can. Throwing away a 12-ounce can is the energy equivalent of throwing away six ounces of gasoline. Aluminum cans are just one example of how important recycling is. Recycling of newspapers, used motor oil, non-aluminum beverage containers and yard clippings is equally important to our environment and our economy.

Recycling is truly a cause in which every individual makes a great difference. The way you shop for, use and dispose of the products that you buy seriously affects the environment. So, purchase and consume according to the 3 "R"s: Reduce, Reuse, and Recycle.

Reduce the amount of garbage you generate by buying and using products wisely.

"Precycle" by purchasing products in recyclable containers.
Purchase foods in bulk or concentrate.
Avoid products that are neither reusable nor easily recyclable.
At work, make two-sided photocopies.
Use cloth towels in the kitchen rather than paper towels.
Stop unwanted junk mail by removing your name from mailing lists.

Reuse products whenever possible.

Start a compost pile with your leaves and grass clippings.
Leave a coffee mug or two at work and avoid using disposable cups.
Use blank back sides of used paper for scratch work.
Look into purchasing quality used items instead of new ones.
Take your grocery bags back to the market and reuse them.
Mend clothes and repair broken items.
Take care of your belongings to help them last longer. In particular, try to keep your car on a regular maintenance and tune-up schedule.
Use products that are made to be reused, such as cloth towels, sponges, glass dishes and metal eating utensils (rather than paper and plastic), rechargeable batteries, etc.
Drop off your used motor oil, antifreeze, and car batteries at places that recycle automotive wastes.
Donate clothing, books, toys, appliances and furniture to charitable organizations.

Water Conservation Makes Dollars and Sense

Tue, 08 Jul 2008 22:37:23 -0500

Reducing water use in your home may save you a few extra dollars on your water bill, but there are far more important reasons to conserve water. Water conservation has many positive environmental effects, including preserving fresh water habitats and saving energy. A great deal of energy goes into transporting water to your residence, and more is used to heat water for your kitchen and bathrooms.

Conserving water can prevent some of the pollution caused by excessive energy use while allowing you to save on your energy bill. When we use too much water, the result can also be detrimental to the environment. Much of the water that we consume comes from underground reserves. If this water is used faster than it is replenished, the land above the water reserves can sink. Once subsidence occurs, the underground aquifers where water was stored cannot be reformed and area that relied on the aquifer will have to find other sources of water.

Following are some suggestions on ways to save water.

In the bathroom (where 70% of indoor household water is used):
Take showers rather than baths. Showers use about a third as much water.
Take shorter showers.
Avoid leaving the water running while shaving and brushing teeth.
Don't use the toilet as a trash can.
Kitchen and Laundry:
Use the dishwasher and washing machine only with full loads.
Don't run water continuously for vegetable and dish washing.

Watering:

Water lawns in the morning to avoid evaporation.
Keep grass at least two inches high to shade roots.
Use mulch or ground covering plants to prevent excessive evaporation.
Use waste water from the house to water your garden.
Plant native or drought tolerant plants.
Water trees slowly, deeply and infrequently to encourage deep rooting. A slow drip for an hour once a week should be sufficient for most trees.

Outdoor Cleaning:

Use a broom rather than the hose to clean off walkways, patios and other outdoor areas.
When washing your car, use a bucket of water or a hose with an automatic shut-off nozzle instead of letting the hose run.

Conserving Energy, Water And Other Resources

Tue, 08 Jul 2008 22:36:03 -0500

High energy use not only has environmental impacts but can hit you personally in the pocketbook. Here is a list of helpful suggestions that may allow you to reduce energy consumption in your household.

Minimize hot water use by taking shorter showers and washing your clothes in cold water.

Use your dishwasher and washing machine only with full loads.

Dry clothes in the sun (check your covenants, clotheslines are prohibited in some communities).

Try setting your water heater at 120 degrees.

Close doors to seldom used rooms and turn off heat or air conditioning in these areas.

Clean or replace heater and air conditioner filters regularly. Keep outside vents free of leaves or debris that may clog vents.

Use kitchen, bath, and other exhaust fans sparingly. These fans can blow away a house full of heated or cooled air in an hour.

Keep your fireplace damper closed unless you have a fire going. An open damper can let as much as 8 percent of your heat go out the chimney.The warmth from a fire on the hearth generally doesn't radiate through the house; the heat gain is confined to the room with the fireplace. In fact, a considerable amount of heated air from other parts of the house can go wastefully up the chimney when a fire is going.

To lessen heat loss when you use your fireplace and the furnace is on, lower the thermostat setting to 50 or 55 degrees. Some warmed air will still be lost, but the furnace won't have to use as much fuel to keep the rest of the house at its usual temperature

Close all doors and warm air ducts to the room with the fireplace, and open a window near the fireplace half an inch to an inch. Air needed by the fire will be provided through the open window, and the amount of heated air drawn from the rest of the house will be reduced.

When the heat is on, set your thermostat at as low a level as you feel comfortable. You save for each degree you lower the average temperature of your home.

Keep windows near your thermostat tightly closed; otherwise it will keep your furnace working after the rest of the house is heated to the desired temperature.

If you have oil heat, have the firing rate checked periodically.

Dust and vacuum radiator surfaces frequently. Dust and grime impede the flow of heat.

Keep draperies and shades open in sunny windows; close them at night.

For comfort in cooler indoor temperatures, use the best insulation of all--warm clothing.

Keep your cooling system well-tuned by a professional service person.

Set your air conditioner thermostat as high as you still feel reasonably comfortable.

Don't set the thermostat at a colder setting than normal when you turn on your air conditioner. Your house will not cool any faster.

If you have window air conditioners, turn them off when a room will be vacant for a few hours. You'll use less energy cooling the room down later than if you had left the unit running.

Use a fan in conjunction with your window air conditioner.

Don't place lamps or TV sets near your air-conditioning thermostat. Heat from these items is sensed by the thermostat and could cause the air conditioner to run longer than necessary.

Keep out daytime sun with blinds or shades.

Keep lights off in vacant rooms.

Use large appliances in the early morning and late evening.

Open the windows and use a fan on cooler days.

Dress appropriately for the warmer indoor temperatures.

Use cold water rather than hot when running the garbage disposal.

Boil water in a covered pan; the water boils faster when the pan is covered.

Keep range top burners and reflectors clean so your stove operates at peak efficiency.

When using an oven or an electric burner, turn it off a little while before the cooking is done. The oven or element will stay hot after you turn it off.

When you have a choice, use the range top instead of the oven.

Scrape dishes before loading them into the dishwasher so you won't have to rinse them.

Let your dishes air dry.

Don't use the "rinse hold" on your dishwasher for just a few soiled dishes.

Routine Maintenance

Tue, 08 Jul 2008 22:35:38 -0500

So you've just moved into your brand new home. You shopped around and did a lot of research to find the home that was just right for you. You signed a big pile of documents at closing, the moving trucks have left, all the boxes are unpacked, and all your belongings are in their proper places. What should you do now?

One of the most important things to remember is that you are responsible for certain routine maintenance items to keep your house functioning properly. These tasks tend to be relatively simple. For instance, many types of heating and air conditioning systems contain filters to remove dirt and dust from the air. A home owner should change these filters when necessary.

Cleanliness is a factor that will make your home last longer and work better. Dust and dirt, if allowed to accumulate, can harm the finishes on blinds, cabinets, countertops, floors, sinks, tubs, toilets, walls, tiles and other items. If dirt does accumulate, make sure to clean it with a substance that does not scratch or damage the finishes.

On the outside of your home, make sure that gutters and downspouts do not get clogged with leaves or other objects. The exterior of your house is built to withstand exposure to the elements, but a periodic cleaning will improve the appearance and, in many instances, prolong the life of siding and other exterior products.

When you bought your home, you probably received a warranty from the builder on workmanship and materials. This warranty applies to problems related to the construction of the home, but it does not apply to problems that arise because of failure to perform routine maintenance. For example, if your roof begins to leak after six months because of faulty workmanship, your warranty would cover that. If you develop a problem because water backed up in clogged gutters that you should have cleaned, the builder is not responsible for repairs.

Also, some items, such as appliances, may be covered by manufacturers' warranties and are not the responsibility of the builder. You should fully familiarize yourself with the terms of your warranty soon after you move into your home. With all the excitement surrounding a move into a new home, most people have little desire to curl up in front of the fireplace and read a legal document. Nonetheless, you should not wait to read your warranty until a problem arises. Set aside an hour to learn what your rights and responsibilities are from the outset.

The Moving Process

Tue, 08 Jul 2008 22:35:18 -0500

Organization is the key to an easy move. Plan your move carefully. If you hire a professional mover, choose one with a good performance record. Seek written estimates from several moving companies.

Ask your mover about the company policy on breakage. Standard moving company insurance may pay only a percentage of the cash value of broken items. Full value protection will cost more but may be worth the added expense if you are moving fragile and valuable items.

Tell your moving company about any special requirements your move will involve.

The actual cost of your move is determined by weighing your belongings after they have been loaded into the van, plus charges for packing, insurance and other items. If the cost turns out to be higher than the estimate, the company will notify you.

Packing takes place one or two days before the van is loaded. Supervise this and all phases of the move. Do not expect to pack plants, firewood or flammable items. You can save money by packing items yourself. You may be able to buy packing boxes from the moving company. However, the boxes you pack may not be covered by the mover's insurance.

Work out a floor plan for your new home so that the mover can place beds, tables and other heavy items where you want them. Movers will follow your directions on furniture placement. However, this is not the time to experiment. Do not keep changing your mind about where you want the piano to go.

If you do not hire a professional mover and prefer to move yourself, do a great deal of careful planning. Before you rent a truck and call your friends, figure out approximately how much you have to move, where you are going to put it in your new home and if any items will require special attention.

Pay careful attention to details. You don't want damaged belongings to dampen the excitement of moving into your new home. Moving can be very tiring, so don't feel you must unpack every box the minute the truck leaves.

Before you move, pack for your family as if you were going to stay in a hotel for a few nights. Also pack a box with some bedding, eating utensils and cooking items. With careful planning, you should be able to survive comfortably amid the clutter for an evening or two.

Eventually all of the boxes will be unpacked, all of your belongings will be in their proper places, and you will be able to relax and enjoy your new home.

How To Resolve Problems That May Arise With Your Builder

Tue, 08 Jul 2008 22:34:54 -0500

The typical house contains more than 3,000 different parts. These components must be assembled with skill to form the new product you will call home. It would be unrealistic to expect your new home to be perfect. Even the best built homes are likely need a few corrections. Most problems are corrected routinely by the builder. However, if a non-routine problem should arise, you should follow certain procedures to correct the situation.

First, identify the exact nature of the problem. Then you should put it into writing and send it to the builder. Many builders require all complaints to be in writing and will respond to telephone complaints only in emergencies.

Use the following guidelines when you write your letter:

Include your name, address, and home and work telephone numbers.
Type your letter if possible. If not, use printing or handwriting that is easy to read.
Keep your letter brief and to the point, but include all relevant details.
State exactly what you want done and how soon you expect the problem to be resolved. Be reasonable.
Include all relevant documents regarding the problem. Send copies, not originals.
Keep a copy of the letter for your files.

Before you write your letter, familiarize yourself with your warranty coverage. If a problem develops after the warranty has expired, the builder is not required to fix it under the terms of the written warranty. Some items, such as appliances, may be covered by manufacturers' warranties and are not the responsibility of the builder.

Always go directly to the builder with your complaints. Do not send letters to lawyers, government agencies, home builders associations or any other third parties before you have given your builder a reasonable chance to correct the problem. Interference from outsiders may impede the handling of your complaint. Also, sending angry, sarcastic or threatening letters is not likely to expedite your case. Such letters usually do more harm than good.

Contact outsiders only if you have reached an impasse with your builder. Try to avoid legal proceedings. Lawsuits are expensive and time consuming and should be attempted only as a last resort. Most standard new home purchase agreements (sales contract) provides for binding arbitration between the purchaser and builder. Also, most insured builder warranty programs provide for binding arbitration between the purchaser and builder.

In the event of an impasse, contact your local home builders association. If your builder is a member, the local association may have a system for examining and resolving construction complaints without going to court. The builders association may be able to bring both sides together to reach an agreement. However, keep in mind that a builders association does not have the legal authority to compel either side in a dispute to do anything.

Remember that most builders are seeking customer referrals and repeat buyers. They want you to be satisfied. If a problem develops, remain calm and approach your builder in a reasonable manner. By following the procedures described above, chances are that you will be able to resolve the problems.

The Secondary Mortgage Market

Tue, 08 Jul 2008 22:33:57 -0500

At settlement or shortly after you close on your loan, the lender may notify you that your mortgage is being sold to a secondary mortgage market investor. This will have no effect on you, your mortgage, or your monthly mortgage payments. The secondary mortgage market consists of investors such as Fannie Mae and Freddie Mac that buy mortgages from primary lenders such as mortgage bankers, banks and savings and loan associations, thus providing them with the cash required to make new loans. Because of the long-term nature of mortgages, the secondary market is an essential factor in maintaining lender liquidity. The secondary market also provides a significant means of redistributing funds nationwide, moving them from areas where there are surpluses to areas where additional funds are needed.

Most primary lenders make mortgage loans and sell them to secondary market investors to maintain a steady stream of funds for future loans. Primary lenders that generally keep their loans in portfolio, such as commercial banks and thrifts, also use the secondary market to maintain liquidity and restructure portfolios.

The Closing or Settlement Process

Tue, 08 Jul 2008 22:33:38 -0500

Settlement (or closing) is the process which passes ownership of a property from seller to purchaser. Going to settlement on a new home can be bewildering. Home buyers are usually required to sign a seemingly endless pile of documents, most of which are written in legalese. Before you go to settlement, there are certain important items you should know about so that you can achieve the best possible terms for yourself in the transaction.

Ask a lender for a copy of the HUD pamphlet, Settlement Costs. Most lenders are required to provide their loan applicants with a copy of this document under the Real Estate Settlement Procedures Act (RESPA), but you will be able to shop more wisely for settlement services if you have read the pamphlet before you apply. It provides a good description of the settlement process and explains most of the expenses you will encounter.

When you apply for a loan, the lender is required by law to provide you with a good faith estimate of settlement costs. Shortly before settlement, you will be told exactly how much you owe so that you can get a bank check. A personal check is generally not acceptable. In some instances, you may have money returned to you instead of having to pay.

Before you go to settlement, familiarize yourself with the following terms:

Appraisal Fee. An appraisal is an estimate of the fair market value of your home. Appraisals help both the lender and the buyer to determine if the sales price is consistent with the actual value. An appraiser inspects the house and the neighborhood and makes an estimate based on the price of comparable houses and other factors.The appraisal provides no guarantee that the property is free of defects. Lenders insist on an appraisal to see how much they could recover by selling your house if you default. The fee for this service may vary considerably depending on the specific characteristics of your house.

Attorney’s Fees. If the lender requires an attorney to draw up any of the settlement documents, you may be charged a fee – a flat amount or a percentage of the loan. If you hire a lawyer to assist with the settlement, you will have to pay an additional fee at or immediately following settlement.

Credit Report. The lender may charge a fee for investigating your credit history.

Earnest Money. Earnest money is a deposit paid to a seller to show you are serious about buying a house. Your receipt for this payment is called a binder. If you later buy the home, the earnest money is applied to your down payment. If not, the earnest money is returned, minus expenses for processing. Be sure that you understand the refund procedures before you make a deposit.

Escrow Fees and Accounts. Escrow involves having a third party hold funds and/or documents until you and the seller complete settlement. Depending on the circumstances of your loan, you may be asked to make monthly payments to an escrow account after you purchase your home. Money in the account may be used to pay taxes, insurance, and any other regular assessments as they fall due. Such accounts serve a similar purpose to withholding income tax from your paycheck; by putting aside money each month, you avoid large annual or semiannual payments. You may be charged a fee for the service. In some states, escrow accounts draw interest. Sometimes, escrow agents handle settlements. Rather than you and the lender meeting to sign all of the documents and transfer money, the agent works with you and the lender separately to ensure that everything is done properly. Once again, a fee is required for this service.

Loan Origination Fee. A lender will charge a fee for the cost of processing the loan, usually calculated as percentage of the loan amount.

Loan Discount (Points). The largest of your settlement cost may be the "points" lenders require to make the yield on your loan more profitable. A point is one percent on your loan amount. If you are borrowing $50,000, one point equals $500. Points are tax deductible if they are paid separately and not deducted from the loan amount. For VA loans, you can be charged a maximum of one point, but the number of points can be higher for FHA and conventional loans.

On a 30-year loan, each point that you pay reduces your interest rate by roughly 1/8 of a percent. You may be faced with a choice between two mortgages in which one has lower monthly payments but involves paying more points up front. Annual percentage rate calculation include buyers’ points, so ask for the APR to help you make your assessment. Keep in mind that an APR is calculated on the basis of the total life of the loan. For a 30-year loan, the APR is a 30-year composite figure. If you sell your new home after a few years, the average annual cost of your points will be much higher than is reflected in the APR. If you plan to move soon, you might be better off with a loan that has a slightly higher rate but fewer points.

Property Survey Fee. You may have to pay to have your lot surveyed, especially if there is a question about the boundaries. The cost will depend on the complexity of the survey.

Recording Fee. Because title is changing hands, the transaction must be recorded with your city, county, or other appropriate branch of government. The fee covers administrative costs.

State and Local Transfer Taxes. Some jurisdictions levy taxes on the transfer of property or on real estate loans.

Settlement Costs Between Buyer and Seller. Your builder may have already paid the annual property taxes on your new home or filled up your fuel tank. When title changes hands, you must reimburse the builder for a proportional share of the taxes, any fuel that remains in the tank, and any other prepaid costs.

Title Search and Insurance. A title search involves having someone look through public records to see if anyone else has a claim to your property. A lender does not want to lend you money only to learn in the event of foreclosure that somebody other than you has a prior claim to the property.

You will normally be required to purchase lenders’ title insurance to guard against a faulty title search as well as hazards that even the most thorough search will not reveal – such as a forged deed that does not transfer title, a claim by a previously undisclosed relative of a former owner, or a mistake in the records. For a one-time premium at closing, title insurance will clear up title problems, pay the lender’s legal expenses for defending against an attack on title, or pay claims on property the lender may lose.

Lenders’ title insurance does not compensate buyers for any legal expenses they might incur, or the value of property they might lose. A separate owners’ title insurance is available to safeguard the buyer. Whether the seller or the buyer pays for owners’ title insurance depends on local custom.

This list of settlement terms is not all-inclusive. You may also be charged fees for notarizing documents and other miscellaneous items.

Once all the forms have been signed, you can move into your new home. But before ending the settlement session, make sure that you have received or will be sent copies of all the important documents, including:

Sales contract.
Land survey.
Warranties and instruction booklets from manufacturers for equipment in the house.
All tax payment receipts.
Certificate of occupancy (required in some areas).
Certificates from the health department for plumbing and sewer installations (required in most areas).
Other certificates of code compliance (required in most areas).
All insurance polices (some might be sent later after they have been properly endorsed).

The note and deed to your property (which will probably be mailed to you after being placed on record in your local registry of deeds office).

Home maintenance and care instructions from your builder.