Buyers Tips
Home Inspection Checklist
Mechanical Systems
- Heating
- Cooling
- Electrical
- Adequacy of service _______________________________
- Light switches _______________________________
- Door bells _______________________________
- Exterior lighting _______________________________
- Plumbing
- Overall _______________________________
- Water heater _______________________________
- Waste (Sewers or Septic)
- Flush toilets _______________________________
- Consult owners on condition _______________________________
- Obtain service record _______________________________
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Interior Spaces
- Walls, Ceilings, and Floors
- Overall condition _______________________________
- Water stains _______________________________
- Cracks _______________________________
- Settlement _______________________________
- Decay _______________________________
- Basement and Crawl Spaces
- Walls _______________________________
- Floor _______________________________
- Water penetration _______________________________
- Kitchen
- Cabinets _______________________________
- Countertop _______________________________
- Floor _______________________________
- Bathroom(s)
- Toilets (tank and operation) _______________________________
- Floor (around tub, shower, and toilet) _______________________________
- Shower (check controls) _______________________________
- Tub (check controls) _______________________________
- Tile _______________________________
- Garage
- Doors _______________________________
- Floor _______________________________
- Walls _______________________________
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Appliances
- Range _______________________________
- Oven (all controls) _______________________________
- Dishwasher (run full cycle) _______________________________
- Refridgerator/Freezer _______________________________
- Compactor _______________________________
- Disposal _______________________________
- Washing Machine _______________________________
- Dryer _______________________________
- Other _______________________________
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Exterior Conditions
- Roof _______________________________
- Siding _______________________________
- Windows/Doors _______________________________
- Steps and stairs _______________________________
- Decks/Porches _______________________________
- Pool and accessories _______________________________
- Sprinkler _______________________________
- Landscaping _______________________________
- Drainage _______________________________
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What Can You Afford?
Before you begin your house hunting it is wise to determine the price
range that is realistic for you. To be considered for a mortgage, you
generally have to meet two conditions before there's even a credit check.
- Must be able to handle monthly payments of principal, interest, taxes,
and insurance (PITI)
- Must have an adequate down payment (standard is 20% but can vary depending
on the lender)
Annual income before taxes (gross)
Divide by number of Months:
Monthly gross income:
*(record in both columns)
Many lenders will not allow you to spend more than 28% of your monthly
gross income on housing expense: (Column B)
Maximum monthly housing expense allowance (column B)
Many lenders will allow 36% of monthly gross income for long-term
debt
Long-term monthly expense allowance:
Figure out your monthly long-term obligations below, and subtract
it from the allowance:
- Child support.................$________
- Auto loan.....................+________
- Credit cards..................+________
- Association fees..............+________
- Other.........................+________
- total long-term obligations...=________
Monthly housing expense allowance:
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$____________
_____+12 _____
=____________
.
.
.
.
_____x.36 _____
=____________
.
-____________
.
.
.
.
.
.
.
.
= ____________
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.
.
= ____________
.
.
_____x.28 _____
=____________
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Look at the last amount in columns A and B. Record
the smaller amount:
About 20% of the housing expense allowance is for taxes and insurance,
leaving 80% for payment of mortgage (principal and interest):
Allowable monthly principal and interest expense:
Divide by estimated monthly payment
.
Multiply by 1000
Affordable mortgage amount (what the lender will lend)
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$ ____________
.
_____x.80_____
= ____________
? ____________
= ____________
.
_____x1000____
$ ____________
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Estimate Your Mortgage Payment
Interest
Rate |
Monthly Payment
Per Thousand Dollars |
| 4.25% |
$7.53 |
$6.21 |
$4.93 |
| 4.5% |
$7.65 |
$6.34 |
$5.08 |
| 4.75% |
$7.78 |
$6.48 |
$5.22 |
| 5.0% |
$7.91 |
$6.60 |
$5.37 |
| 5.25% |
$8.04 |
$6.74 |
$5.53 |
| 5.5% |
$8.18 |
$6.89 |
$5.69 |
| 5.75% |
$8.31 |
$7.03 |
$5.84 |
| 6.0% |
$8.44 |
$7.17 |
$6.00 |
| 6.25% |
$8.58 |
$7.32 |
$6.16 |
| 6.5% |
$8.72 |
$7.46 |
$6.33 |
| 6.75% |
$8.85 |
$7.61 |
$6.49 |
| 7.0% |
$8.99 |
$7.75 |
$6.65 |
| 7.25% |
$9.13 |
$7.90 |
$6.82 |
| 7.5% |
$9.27 |
$8.06 |
$6.99 |
| 7.75% |
$9.41 |
$8.21 |
$7.16 |
| 8.0% |
$9.56 |
$8.36 |
$7.34 |
| 8.25% |
$9.70 |
$8.52 |
$7.51 |
| 8.5% |
$9.85 |
$8.68 |
$7.69 |
| 8.75% |
$9.99 |
$8.84 |
$7.87 |
| 9.0% |
$10.14 |
$9.00 |
$8.05 |
|
Interest
Rate |
Monthly Payment
Per Thousand Dollars |
| 9.25% |
$10.29 |
$9.16 |
$8.23 |
| 9.5% |
$10.44 |
$9.32 |
$8.41 |
| 9.75% |
$10.60 |
$9.49 |
$8.60 |
| 10.0% |
$10.75 |
$9.66 |
$8.78 |
| 10.25% |
$10.91 |
$9.82 |
$8.97 |
| 10.5% |
$11.06 |
$9.99 |
$9.15 |
| 10.75% |
$11.22 |
$10.16 |
$9.34 |
| 11.0% |
$11.37 |
$10.33 |
$9.53 |
| 11.25% |
$11.53 |
$10.50 |
$9.72 |
| 11.5% |
$11.69 |
$10.67 |
$9.91 |
| 11.75% |
$11.85 |
$10.84 |
$10.10 |
| 12.0% |
$12.01 |
$11.02 |
$10.29 |
| 12.25% |
$12.17 |
$11.19 |
$10.48 |
| 12.5% |
$12.33 |
$11.37 |
$10.68 |
| 12.75% |
$12.49 |
$11.54 |
$10.87 |
| 13.0% |
$12.66 |
$11.72 |
$11.07 |
| 13.25% |
$12.82 |
$11.90 |
$11.26 |
| 13.5% |
$12.99 |
$12.08 |
$11.46 |
| 13.75% |
$13.16 |
$12.26 |
$11.66 |
| 14.0% |
$13.32 |
$12.44 |
$11.85 |
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Closing Costs Checklist
Each mortgage lender structures his/her charges to the borrower differently.
No buyer will have to pay all the charges listed, and every buyer will
probably have to pay something that may not be listed. Request a "good
faith estimate of closing costs- called a RESPA statement-".
| Common Charges |
Date |
Estimate |
Cost |
Comments |
Earnest money or deposit..........................
Interest points charged by the lender.............
Loan assumption fee...............................
Loan origination or discount fee..................
Prepaid mortgage insurance........................
Credit report.....................................
Appraisal.........................................
Property survey...................................
Initial mortgage payment..........................
Inspections of property...........................
Recording fees....................................
Prepaid homeowner's insurance for first year.......
Prorated property taxes...........................
Attorney's fees...................................
Title search and insurance........................
State and local closing taxes and fees............
Down payment......................................
Prorated maintenance for remainder of month.......
Other closing costs...............................
Amount needed at closing..........................
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Preparing for a closing
- Hire an attorney
- Make financial arrangements (mortgage, transfer funds, etc.)
- Purchase homeowner's insurance
- Have property surveyed unless mortgage lender has arranged this
- Arrange for termite or other inspection
- Make a final walk through
- Know your closing costs (RESPA statement)
- Have bank check prepared for closing, as required
- Make sure deed is recorded after closing
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