Archive for May, 2011

The Mortgage Process

May 28th, 2011

What Happens First?

When you contact a lender, you will be connected to a loan officer to discuss your specific mortgage needs and financial situation, the property type and location, your price range, as well as how long you plan to own the property. Be prepared to answer questions concerning your credit history, assets, and income.
If you are a first time homebuyer, you will be asked additional questions to determine how much you think you can afford for a monthly payment and what type of loan you want. Based on the information you provide, you will be given several loan scenarios to consider.

Pre-qualification

The first step of the process is the pre-qualification. Based on the information you provide, the lender will issue a “pre-qualification letter” stating the amount you’re eligible to borrow in your loan.

My letter is simply a boilerplate with your name, address, etc. “Based on information provided by you concerning your credit profile, income, and assets, you have been pre-qualified for a loan in the amount of X”. Blah blah bla…congrats!

You should get this letter before you begin shopping for a home to demonstrate that you are a serious contender when putting in a bid on a property. It’s a simple way to show that you made an effort to find out how much you can pay and how much you can spend. Since the pre-qualification is a demonstration of your action but not a real mortgage approval, there is not much value to it. You should update your pre-qualification every 60 days, since everyone in the real estate industry knows that although the pre-qualification shows commitment on your part, it is not really worth the paper it is written on.

The lender should never charge a fee for this service nor run a credit report. If they insist on running your credit, hang up and find someone else. Inquiries on your credit report that do not result in a loan can lower your credit rating. Wait until you decide who to do business with. It’s important to remember that this letter is NOT an approval for a loan. The formal application process has not yet begun.

When you receive your pre-qualification letter, you’ll also receive a document checklist. It lists all the supporting documents you’ll need to provide for the loan application. It is a good idea to start a separate folder for these documents and keep it updated through the process.

Pre-approval

In contrast to a pre-qualification, the “pre-approval” happens when you’ve actually completed and signed the loan application and have provided the necessary documents for verification of your income, assets, and credit. At this point, the lender will run your credit report and you will probably have to pay an application fee. In my opinion, any application fee over $300 is too much.

This document is really an approval directly from the lender you’ve chosen. At this point, you don’t need to have a specific property in mind. This is merely considered a credit approval and can be used with any qualified property. The pre-approval is good for up to 120 days. If you haven’t found a home in that time, your lender can update this document for you simply by obtaining your current pay stubs and bank statements. This is still not a commitment letter until the property information is embedded into the approval. For this, you will need a property, a signed contract, a cancelled down payment check, and an appraisal. At this time you will have a full-blown commitment letter from your lender and will be on your way to the closing.

Application

The loan application is a package of several documents (my package has five). You want to work with a loan officer that completes the forms with you, for you, and just tells you where to sign. When clients say, “just send it to me”, I picture them pulling an all-nighter making sure that every item is correct and complete. If I do it, it takes ten minutes of you answering questions.

You can complete them in person or over the phone. I prefer over the phone for speed. Once the application is complete, your loan officer will send the package to you, along with instructions and a list of other documents you’ll still need to send in. The required documents differ from borrower to borrower, based on the individual’s employment situation and personal finances as well as the loan type. Documents may be sent back and forth by email, overnight, or by snail mail.

Processing

Once your lender receives your loan package, your file is “opened.” The documents will be placed in a specific order, the file will be entered into a mortgage-processing program, a credit report will be obtained, and all lender disclosures will be sent to you and other necessary parties. You’ll be contacted if your lender has any questions or if any documents are missing. The processing will continue as you and the lender collect the information needed to present the loan for approval.

Underwriting

The lender’s underwriter will receive a complete file with all necessary documents pertaining to you and the property you are buying. The underwriter has the final review and determination of the loan approval. Typically, if there is a Fannie Mae or lender approval, the underwriter will simply make sure that your file has all the documents and you meet the criteria of the loan agreement. The underwriter may ask for additional information. Each lender has its own “overlays”. Overlays are the list of requirements and criteria to approve your loan for a certain program. Depending on which lender you go to and which person underwrites the loan, different things might be asked of you. If your loan is solid then it can be obtained almost anywhere. If you are borderline, that is when the lender looks a little harder at you. No worry – with a good loan officer, you can get the loan you need.

Once you have an approval with the list of additional items required, you are almost there. Only consider this a commitment letter if you can meet these requirements.

Technology and Your Loan

Over the years, technology has streamlined the mortgage process and sped up the time needed for approval. This is why you can get a commitment letter in two days. Although not necessary, it is nice to know you can! Most lenders have the ability to create a virtual file of your loan application. This is the preferred method to enable the lenders to expedite the process and save thousands of trees. Eventually this will be the only method.

For instance, this is how we do it. You send us your signed “hardcopy” loan papers with all the supporting documents requested. Using the information in the pay stubs, W-2 forms and bank statements you submitted, we enter the data into our mortgage processing software, run your credit report, and upload it into the system showing your liabilities and monthly payments. We make sure the loan programs are what you requested, the numbers and data are all correct, and that it looks pretty perfect.

At this point, we have a complete file and can upload it to any major lender or directly to Fannie Mae for approval. By upload, I mean literally go into (using a partnership password) their mortgage system and transfer our data file into it. In less than 60 seconds, the computer will spit out an approval (we hope) with a list of documents the lender wants to see and questions they have. We go through the itemized list, gather the requested documents to scan and upload into the virtual file. We will answer any questions or correct anything that might be an error in the system. (After all, it is a computer we are working with!)

Within a day or so, a real person at the bank will receive the virtual file via internal email and download it to their computer. Using their computer monitor, they will review all of the documents, make sure everything is in order, and issue the final approval. Loose ends will be put together and you will receive a written commitment letter from the bank. Still, the only people in this chain that have touched the actual papers are you and my office. Here is the key: you want your loan to go to a lender that does everything electronically to speed up the process considerably. If you go to a mortgage broker or banker, you want them to be able to send your loan package electronically to several lenders simultaneously. This will ensure you receive more than one approval to choose from. It will also allow you to have backups in case one approval does not work out. Lastly, if you are approved at a few banks, you can sit back and see which one will give you the best rate, and at the press of a button your loan can be completed and closed there!

With the press of a button, your loan can be processed, approved, locked in, and closed. Of course, there will still be phone calls, emails, and paperwork, but this lightens the load for all.
How can your mortgage be approved so quickly? The system used by the lenders read the information in the virtual file and do a risk assessment of the income, assets, FICO score, liabilities, and loan to value. The computer will decide based on these factors whether the loan is doable and layer the risk. The riskier your loan assessment, the more documents the bank will ask for.

Credit Report

Your lender obtains a “tri-merge” credit report from an authorized credit agency. A tri-merge is a combination of the three major credit bureau reports, showing your payment history and FICO score from each. The lender will use the middle (numerical) score as your rating. The credit report is valid for 120 days. If you haven’t purchased a property by then, your lender will obtain a more current report. If nothing has changed, your FICO score should be the same, so do not be concerned.

Each time you go to a different lender, they will run your credit report for their own file, so you will have multiple inquiries. If you go to a mortgage broker or banker, they will usually run your credit report once and assign it over to the lender with your loan. Therefore, you have one inquiry, which will have less effect on your FICO score. This is not to say that the ultimate lender will not run your credit or rerun it right before the loan closes. So try not to do anything big until the closing, such as buy a new car.

Did I say this before? Do not let anybody run your credit report until you are ready to do business with them!

Appraisal

An appraisal determines the market value of your home by comparing the property you want to purchase or refinance to three similar properties that have sold in the past 6 months within a 1-mile radius, preferably in the same neighborhood. Your loan amount is determined by the contract price or the home’s appraised value, whichever is lower. Therefore, you want the appraised value to be at least the contract price.

The lender will order the appraisal on your behalf as part of the mortgage application process. If you go to separate banks yourself, they will each want to order their own. If you go to a mortgage banker or broker, they will be able to order one appraisal and transfer it to any lender they do business with. If you have an old appraisal, they will not use it unless it is less than four months old and they approve the appraiser. You are entitled, by law, to receive a copy of your appraisal. Ask for it. I send mine out as part of a post-closing thank you package.

Engineer Report and Other Inspections

After you find a home, you should have various inspections done including engineering, roof, termite, asbestos, mold, radon, water, and septic. The most important test is the engineering inspection, which examines structural items such as the foundation, roof, exterior, windows, and heating and cooling systems – expensive things to fix.

Depending on the area, either you get the inspections before you sign or you sign and have a few days to get them. Either way, you need to get your inspections quickly. You should line up an inspector while shopping for a home, so you have one on standby to use. This way you will know in advance how much the fee is, what it includes, and how much time they need to schedule an appointment.

The realtor will give you a few names of inspectors to call. This is too close for comfort for me. (Sorry- to all my realtor friends out there!) This is the only place in this book where I will tell you to find a service out of the local listings. When you look under Home Inspection, you will see some large franchise companies as well as a few independents. Call a few and interview them.

I recommend you use an engineer to do the inspections rather than a licensed home inspector, simply because of experience and education. The tests typically cost between $400 and $800. If damage is found, you and your realtor can negotiate repairs with the seller. I also recommend taking a reduction in price and then having it fixed yourself to ensure a quality repair. In a hot market, it is harder to negotiate the price down. When the market is soft, sellers are more apt to shave dollars off for repairs to keep a buyer happy.

These tests are not necessary if you’re buying a condo or co-op, unless it’s in a small building under 8 units. In that case, you have a larger interest in ownership and it will be easier to get the engineer into the nooks and crannies of the building.

Building Information: Co-ops and Condos

A condo/co-op is an apartment purchased in a building owned and/or managed by a company. The ownership of the apartment includes use and occupancy of the public areas. Occupants pay a monthly fee to a management company for all services provided and possible charges associated with the common ownership. So, you want to make sure you are not buying into a bad situation and neither does your lender! Go to the chapter on Property Types to see more information.

The lender will require information on the building and managing corporation, such as financial stability and occupancy. When refinancing an existing co-op loan, as an owner you already have most of the information handy or can get it directly from the management company. If you are purchasing, there will be a slew of paperwork your realtor, attorney, and lender will review. Your realtor will be able to answer questions on subletting, pets, and what type of people live there. Your attorney will receive copies of the financial statements and by-laws and make sure the building is financially sound and stable.

The bank will do a more extensive review of the financials as well as other items. They will look at number of owner-occupied units, insurance, mortgage on the building itself, and cash amount in reserves. If the lender rejects the building, you may want to consider living elsewhere.

There is such a thing called the “Renegade Theory”, especially in large urban cities. A renegade – we will define – as one of the first on the scene. So, if the building is in bad shape financially and has a large investor ownership, it might be harder to get good financing. If it is hard to get financing, the units will be priced lower to entice buyers that can come up with alternative financing. Alternatives are higher interest rates on private loans, lenders that specialize in these buildings, or paying all cash. The building could be in an up-and-coming area. This is what my Mother calls a “diamond in the rough.” I say if you have the tolerance for risk, go for it. Do your research and it just might pay off for you.

Commitment Letter

Once you’re approved for the loan, you’ll receive an actual commitment letter from the lender with a loan amount, expiration date, term, locked-in rate (if desired), and property address. Any outstanding conditions required by the underwriter will be listed in the commitment letter. Send this letter to your attorney for their review. Your loan officer and your attorney will go through the details with you. Make sure you can meet all the conditions required by the underwriter because the lender will not give you the money unless you can give the underwriter everything they ask for first. This loan commitment is good for at least 3-4 months and can be updated simply by faxing your current asset and income information to your loan officer…assuming your financial profile remains the same.

Clearing Conditions

You’ll need to provide any additional items requested by the lender and listed in the commitment letter prior to closing. Make sure you know exactly what you need to get to the bank in order to “clear” (that’s what they call it!) your loan to close. You might need to bring something to the closing also, like proof you sold your house or certified funds from a 401k. There might be impossible requests that you cannot provide and need to work around or you will have to go to another lender.

Your attorney also needs to get some stuff over to the bank, which you do not have to worry about. Remember to shop for insurance a few weeks before the closing, because this is another big thing to comparison shop for.

This is the stressful part, because lenders usually wait until the last minute to do final reviews and request things at the eleventh hour. All parties will work together to smooth out the organized chaos, and you’ll close on the property. Although the whole process can be stressful, once you close, you will forget all about it! I promise!

Closing for a Purchase

Once the lender is ready to close, they will begin coordinating the closing date and time with you and all parties involved. Depending on the state you live in, there can be as little as one other person in the room or as many as ten. In New York State, I can count at least four suits in the room! Your lawyer, seller’s lawyer, bank attorney, title company representative, realtors ….oh and you!

If you have a mortgage broker or banker, they should serve as the point person for all parties, ordering your closing documents, and arranging for proceeds transferred from your lender. Your attorney will tell you how much money in certified checks you’ll need to bring to the closing, typically the day before closing. Don’t forget to bring a government-issued, active photo ID to the closing (i.e., driver’s license or passport) or you won’t be able to sign the required paperwork. Although this whole process can be stressful, once you close, you will forget all about it! Did I say that before?

Closing for Refinances

The closing is more flexible with a refinance because there are usually no time constraints and fewer people involved. Even if the bank is ready to close, you can wait until you’re ready or locked in at the lowest rate available.

Depending on the state, the lender will have an attorney, a title company agent, or an escrow agent represent them at the closing and arrange for the money to be dispersed. You are not required to have an attorney represent you at a refinance closing. I think it is neurotic and a waste of money, but so be it if you feel the need! Don’t be afraid to ask questions. It is your money and your life! (PS: The closing agent is not paid unless the loan closes, so they will patiently make sure it does.)

At the closing they will pay off your existing mortgage, any second mortgage and any other obligations you wish to pay off directly from the proceeds of the new mortgage. Your final closing costs are itemized and taken directly from your new mortgage proceeds at the closing. Therefore, unless you’re taking out less money than you owe, there’s no need to bring a check to the closing, but don’t forget to bring along your government-issued active photo ID (i.e., driver’s license or passport).

Post-closing

After the closing, you’ll receive a post-closing package from your lender with a copy of your appraisal and other important documents. Your attorney will also give you a package with copies of all documents signed at closing. Keep these documents in a safe place, and give a copy of your closing statement to your accountant to use for tax purposes. Also, make sure that you receive a copy of your recorded deed and mortgage. This can take up to 6 months, depending on the county the property is in. You need this stuff to sell or refinance later on and will not want to deal with it then.

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Pre-Heated Warning Sequence May Help Us Predict Major Earthquakes

May 26th, 2011

Major Earthquakes and Pre-Heated Warning Sequence May Help Us Predict Over the years there have been reports of strange weather prior to Earth Quakes, and much has been called nothing more than part of the the post traumatic mental fatigue which goes along with such black swan major Earthquake events. There have been claims of blue, green, pink, and other colors on the horizon near sun set, and other totally baffling and strange anomalies and phenomena. Most folks chocked it off to crazy people.

But now the scientific community is moving the other way and embracing these concepts, and perhaps wants to use such anomalies to help predict Earthquakes a few days ahead of time. Is that possible? I’ve always believed so, but you have to watch out discussing these things or someone might accuse you of staying up late at night and tuning into the Coast-to-Coast Am late night conspiracy theory and alien abduction programming.

Nevertheless, now there is proof of the release of gases, and heat, even radon a few days prior to a major earthquake. Sure, enough, it seems we have caught it all on camera, or by satellite rather. These anomalies do exist and some Russian Scientists are now saying; we told you so.

In fact, there was a very interesting article recently on the MIT Technology Review’s blog network “The Physics arXiv Blog” titled Atmosphere Above Japan Heated Rapidly Before M9 Earthquake – Infrared Emissions Above The Epicenter Increased Dramatically in the Days Before the Devastating Earthquake in Japan, Say Scientists” posted by the Famous KFC on May 18, 2011. The article stated;

“Before the M9 earthquake, the total electron content of the ionosphere increased dramatically over the epicentre, reaching a maximum three days before the quake struck. Satellite observations showed a big increase in infrared emissions from above the epicentre, which peaked in the hours before the quake -the atmosphere was heating up.”

Could it have been radon gas leaking, asked some of the observers pouring over the data, and the answer is sure, that is a possibility, and this is not the first observation of this type, as some Russian Researcher have been talking about precursory earthquake information, and findings for quite some time now. There have also been some observations by Cal Tech and others on this topic over the years, as well as some reputable presenters at a 2005 conference in California.

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Cellar and Basement Waterproofing by the Drainage Method – Part 1 – The Drainage Channel

May 24th, 2011

Underfloor drainage channels have been used for centuries but until the early 1990′s they consisted of no more than a perforated pipe based on the Victorian idea of the porous clay pipe (or drain tile) often known as the French Drain after Henry French who took the idea from the UK to new England in 1856.

Modern derivative of the French drain involve different profiles for the pipe many are flattened which allow them to be place under the floor but above the footing which protects them from silting a d clogging, a common problem that affects old fashioned drain tile systems. It is generally considered a good idea to keep the drain system at this level for this very reason. It is also considered good practice to include inspection ports for servicing and maintenance. For an inspection port to be effective it should be more than just a 50mm diameter pipe connecting into the system. Ports around 150mm long and 50mm wide are better as they allow one to see inside the drainage channel and to effectively use a hose pipe to clean out if necessary. Some designers have included a special ‘corner port’ which allows access in two directions, i.e. along two walls from the one spot thus combining the functionality of one corner and two ports which would be necessary in a less imaginative system. The ‘telescopic port’ also allows the top of the port to be levelled flush with the floor which can be a problem with static height ports.

The drainage channels invariably have holes to let water into them. It is critical to ensure that the holes are smaller than the size of the stones that normally surround the channel otherwise the stones will enter and restrict the flow of water. Some new designs have replaced circular or oval holes with narrow slits in order to prevent this problem.

The outlet from the drainage channel should be sufficiently sized to not restrict the flow of water as it leaves the channel and enters the sump chamber. It is a mistake to use a 50mm diameter pipe as the outlet for a channel system that can deliver as much water as a 4″ diameter pipe. This seems like common sense yet it is a common mistake.

Many modern systems include a vertical flange to allow any surface water on the wall to drain down into the system. In order for this to be effective the back of the flange has to remain open, however there is a growing body of opinion against this practice. Open backed flanges allow moisture vapour and microbial odours and spores to vent up into the room together with Radon gas if the property is in an areas affected by Radon. Also, having a wet wall draining down into the system is unhealthy as it contributes to mould and humidity to the atmosphere in the basement and the house above. It is considered better practice to have a sealed flange and if there is water running down the wall to conceal this with a suitable vapour-proof membrane.

Finally, a plastic channel that is constantly wet can develop a microbial slime which is unhealthy and can result in a restriction of water-flow. It is therefore a good idea to incorporate an anti-microbial additive such as Silver Nitrate into the plastic at the manufacturing stage.

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A Closed, Sealed Crawlspace – What a Really Bad Idea

May 22nd, 2011

First, it might be quite costly (several thousands of dollars). Second, and much more importantly, the sealing of a crawlspace is likely to degrade the IAQ (Indoor Air Quality) in your living space.

Rather than sealing a crawl space and creating an IAQ problem in the home’s living space, there are less expensive methods to manage crawl space humidity. In the United States, the number of those with allergies is rising about 25% per decade, and asthma cases alone have doubled in the last 20 years.

The rise in those having allergies is more common in developed countries, and it is suggested there “must be something in modern, urban life that promotes allergy”. Some studies indicate a direct link to the increase in air conditioning and tighter homes. People may save a hundred dollars per year in energy, yet spend thousands on medication and life style change, so, there is no question that the home’s IAQ is, by far, the overriding, single most important issue.

Proponents of sealing and not ventilating a crawl space have stated , “venting a crawl space will either add moisture to, or remove moisture from, a crawlspace depending on the moisture content of the ventilation air compared to the desired conditions of the crawl space. Venting with dry air reduces the moisture levels in the crawl space, while venting with moist air contributes moisture”. In this respect, such proponents are absolutely right-on correct!

So, even though it might cost a homeowner $6000-$8000, they suggest a closed, sealed crawl space because the possibility of venting with moist air can make the crawl space wetter.

An optimum alternative that might achieve the best outcome could be to ventilate the crawl space but with a ventilation strategy that would know how much water vapor is in the outdoor air and know how much water vapor is in the crawl space air. Armed with that knowledge the ventilator will be able to make an informed decision whether or not ventilation is going to be helpful or hurtful.

It is evident a strategy like this would permit a crawl space to be ventilated, to dilute and replace stagnant air, odors and gases such as radon, yet not bring in wetter air into the crawl space. A strategy like this will be more effective than other ventilation strategies (like a timer or dehumidistat) because it is selective about not bringing in wetter outdoor air, whereas the timer or dehumidistat is not selective.

Returning to the question of sealing the crawl space and using a dehumidifier to control moisture, there is no question that sealing a crawl space and using a sizable dehumidifier will reduce humidity in the crawl space, but, if sealing the crawl space can compromise the home’s IAQ, you ought to reconsider.

Here’s why.

1. Even if you are able to seal the crawl space well, you will need a sizable dehumidifier. It will need to be set well below a mold threshold limit because other surfaces may be colder. The lower setting is needed to prevent those colder surfaces from exceeding the mold threshold in the now stagnant crawl space.

2. A dehumidifier mentioned in article requires 30 times the power of other technologies.

3. A dehumidifier will need occasional maintenance.

4. When sealing walls and piers, how do you seal completely without creating a hidden path for termites? It means, of course, you can’t completely seal it.

5: The crawl space has become a stagnant area, which, of course, is never cleaned, so odors and gases will be there and they will migrate into the living space of the home.

6: Under the vapor barrier it is always 100% relative humidity, so mold and bacteria is going to grow. And the mold and bacteria spores will migrate into the home.

With the home IAQ in mind, it becomes apparent that some sort of ventilation is needed in a crawl space. The ICC code for the usual passive ventilation setup required one sqft of opening for each 150 sqft of crawl space. Further, the ICC code stated that if a vapor barrier was installed over the ground surface only 10% of the venting area was required (ICC 1804.6.3.1). This would mean that only 1 sqft of opening would be needed for a 1500sqft of crawl space. Clearly this code wasn’t working, so the ventilation rate was arbitrarily increased, and, now, today some state codes recognize the strategy of comparing inside/outside water vapor.

So, with IAQ being so important, we can define our goal in a crawl space project: remove/replace stagnant crawl space air and extract moisture from the wood mass in the crawl space. This makes a case for mechanical equipment.

Dilution and replacement of crawl space air with fresh, outdoor air is easily understood, but how do you extract moisture from the wood mass in the crawl space? You must reduce the vapor pressure at the surface of the wood, and you may do this by either of two ways. One is by dehumidification, another is to blow air across the wood’s surface, better yet, blow drier air across the wood’s surface.

So let’s get down to the quick of things. From the home’s IAQ perspective you should ventilate your crawl space, but using a dehumidifier and venting would be like setting a dehumidifier out on your front lawn, and then paying the electric bills.

A better system would use an intelligent mechanical ventilation system that, (1) keeps the crawl space closed during unfavorable conditions, (2) opens whenever the outdoor air water vapor content will lower humidity in the crawl space, (3) moves a lot of the lower humidity air to extract moisture from the wood mass. The result is, that as you are diluting & replacing stagnant odors & gases, and radon in the crawl space with fresh, outdoor air, you are also extracting moisture from the wood mass.

Further, an intelligent system might perform other functions, such as to not ventilate when it’s freezing outside, and, if the crawl space gets too dry, the ventilator could also automatically reverse its strategy to pump moisture into the crawl space to further stabilize wood floors by maintaining the wood in an acceptable range.

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Home Inspector Questions – Top 10 Questions to Ask When Buying Your Dream Home

May 20th, 2011

First and foremost, have your realtor give you at least 3 names of reputable inspectors that he/she has used in the past. With names in tow, it is now time to do your due diligence to find the perfect home inspector for you.

Before you begin, keep in mind that the kind of home you purchased will also help determine the questions you want to ask your inspector when you call them.

How old is the house? Is it historical? Has it been renovated? In what area is it?

Here are some of the questions you should ask the inspector before you hire him.

1. Are you licensed? If the home inspector isn’t licensed, don’t bother asking more questions. This is an immediate sign not to employ this contractor. Please make sure they are licensed. Also ask if they are a member of a professional home inspector association and how long. Don’t be afraid to ask for credentials.

2. How long have you been in business? All inspectors should provide a work history. Newer inspectors can be very knowledgeable and may even bring another inspector to the walk through.

3. What areas have you worked in the most? Make sure the inspector is familiar with the residential homes in your area.

4. Do you specialize in any particular type of house? This refers to residential or commercial real estate. Since you’re purchasing a new home, make sure the inspector is familiar and has experience with residential home.

5. Is a termite inspection included? Do you do it yourself or do you bring in a termite inspector? The home inspector should be able to tell you if your home has termite damage or not. He can then refer you to a professional termite exterminator. The home inspector does not handle the termite inspection.

6. Do you do a radon test and can you explain to me what that is? Yes, a home inspector will run a radon test and provide you with results when the test is complete. This usually last up to 1 to 2 days.

7. Do I need to be present during the inspection? Do not miss the opportunity to be present at this home inspection. This is valuable information you need when purchasing your home.

8. How much do you charge? Most home inspectors do charge a fee for services. The fee is based primarily on the location of the home as well as the size. A basic fee should range from $200 to $500

9. Do you take pictures during the inspection? It is very important to make sure you have camera handy during your walk through. Take as much pictures as you want. These pictures may come in handy when you resell them home in the future.

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Is Visqueen Right For Your Project?

May 16th, 2011

Visqueen has become the generic name for plastic sheeting, just as Kleenex has become the generic name for tissue. When someone asks for Visqueen, they are referring to a lesser grade of plastic sheeting. The plastic sheeting known as Visqueen has become a generic name for Construction and Agricultural Grade Polyethylene sheeting (C&A film)? Did you know that Visqueen is actually a company in the UK? C&A film contains up to 25% post consumer recycled content, and is made from the least expensive resins available at any given time. While it is excellent for use in many projects, we do not feel it is ideal for any use that requires sustained strenght such as a tarp or for use as a vapor/moisture barrier or retarder. Our choice is to recommend engineered films that are designed for this purpose, to block as much of the moisture, radon, methane and VOC’s as possible. On a microscopic level, the cell structure of the plastic films/liners varies. For liners that are going to be used to block deadly gases such as Radon, you want to insure that you get a liner that has a tight cell structure.

The engineered films are designed to last forever buried in the soil, where C&A film often completely breaks down within a couple of years. Have you ever dug up some old black plastic? Remember how torn and crusty it was?

It’s important that today’s vapor/moisture barriers or retarders should pass the ASTM E1745 Class A, B and C (standard for underslab vapor retarders in contact with soil or granular fill), especially since most homeowner’s insurance coverage for mold is very limited today. Builders are experiencing a much higher level of mold related repair costs and lawsuits since the time when most insurance companies changed their mold coverage to active leaks only.

Ask yourself how long the plastic needs to last. Does it need to hold up in the sun, high winds, or snow? Does is need to be fire retardant? Do you want string (Scrim) reinforced or not and why? How thick should the film be for your job? Do you want it to be padded, or self-adhesive? Is it going to be used in a high heat or humidity climate?
Learn about your choices for your job, and make an informed choice.

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Polonium – 210 – The Smoking Gun

May 14th, 2011

The deafening silence about Polonium-210 from organizations such as Cancer Research UK has prompted me to have another think about a Very Strange Thing that happened six months ago. More on that in a moment but first we need to take a look at the lucrative and ever expanding chemical fertilizer industry.

The rock mineral apatite, which US farmers are by law obliged to use in the form of phosphate fertilizer, contains radon. One of the resulting products of radon decay is polonium-210, a radioactive substance which ends up on the fine hairs of the tobacco plant and is subsequently inhaled by smokers. Not naturally occurring in tobacco, but it is a deliberately added by-product of the phosphate mining industry.

Any of the many substances found in cigarette smoke can be shown to cause poor health and lead to disease, but laboratory trials consistently and repeatedly demonstrate that the only component that causes lung cancer tumours is polonium-210. The tobacco industry has been fully aware since the 1960′s that cigarettes contain significant levels of polonium-210.

Prior to 1930 and the advent of chemical fertilizers lung cancer was virtually unknown whereas today the incidence is greater than that for heart disease. Between 1938 and 1960, the level of polonium-210 in US grown tobacco tripled as the use of chemical fertilizers increased. The US Surgeon General, C Everett Koop is on record in 1990 stating publicly that tobacco radiation is probably responsible for 90% of tobacco-related cancer.

An awkward discrepancy exists in explaining the increased lung cancer rate from 4 per 100,000 in 1930 to 72 per 100,000 today and rising, despite the 20 percent reduction in tobacco use.

There are four thousand or so substances variously found in different brands of cigarettes. Some of them are added and some occur as a result of burning but the general public is not allowed to know what is added to tobacco despite a 1984 law obliging cigarette manufacturers to release this information.

Health Authority departments may request a list of additives but are forbidden to show this to anyone else.

In December 2006 an anti-smoking campaign funded by the UK Department of Health and promoted by Cancer Research UK was to be shown as a series of advertisements on national television. Programmed to run concurrently with a targeted display of posters across the country and the distribution of beer mats in bar venues, it was suddenly and inexplicably curtailed. Someone made a decision to drop all mention of polonium-210 but to proceed with the remaining material. Why?

When questioned the Department of Health’s response was ‘It would be inappropriate’.

The remaining ads have hard-hitting messages about the dangers of cigarette smoke and the poisonous substances it contains

Department of Health spokeswoman

We are surely entitled to ask why the Department of Health, without a valid explanation would think it ‘inappropriate’ to share information about the single most deadly substance to be found in cigarette smoke.

Could it be that the hitherto rarely mentioned and largely unheard of, but highly radioactive polonium-210 had overnight become worldwide headline news? The graphic illustrations of a painfully slow death by polonium-210 poisoning of the unfortunate Mr Alexander Litvinenko in London was the number one news item in the UK for several days. Would the passive information fed television audience of millions be able to make the connection between the inexorable rise in lung cancer and the polonium-210 content in cigarettes?

Were the tobacco industry chiefs quaking in their boots? Maybe they were – but only for a moment or two. Because our compliant Department of Health obliged and in collaboration with Cancer Research UK deleted all mention of the offending word ‘polonium-210′ from their upcoming anti-smoking campaign.

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When it Rains it Pours – Money For Job Seekers Who Learn Basement Waterproofing Skills

May 10th, 2011

For recession-weary job seekers or other people ready for a career change, here’s a hint: There has always been a shortage of skilled basement waterproofing contractors. The best in the business often have long waiting lists following a rain storm. This leaves millions of homeowners nationwide searching for someone who might help repair leaky concrete cracks and drain tile problems. When it rains it pours dollars for those unemployed workers who take to heart that old adage, go where the money is.

But don’t take my word for it. Begin by taking a casual survey of friends, family, business acquaintances and neighbors. Ask each of them if they believe they might benefit from a basement inspection. If they ask why, simply say that most homes have indoor air quality problems they are not even aware of; contamination by invisible radon gas or airborne mold spores are the cause of a long list of chronic respiratory heath issues. The solution is to rid that damp, dark basement of moisture.

Now don’t be surprised if one or two debate you. Every neighborhood has a couple know-it-alls. So if anyone doubts the veracity of your information, or they insist that all basements have a little water, ask this question: Where does 50 percent of the air we breathe in our homes originate?

They won’t know the answer. Only trained basement waterproofing contractors and crawl space sealing and installation professionals have this information. Don’t toy with them, and don’t be smug. But before you give the correct answer you might add, “By any chance is someone in your home suffering from nasal and sinus congestion, coughing, wheezing, sore throat, headaches, fatigue or eye irritation? Oh, and do you have musty odors in the basement?”

You may think I’m training you to be a physician, not a basement waterproofing expert. I’m pushing the issue because most homeowners do not understand how critical a dry basement is to their health and safety. Also, if you provide something valuable that is free, these people might begin to trust you. After all, would you kick someone out of your basement if he could actually help you fix a water seepage or smelly odor problem? No. And neither will your friends and neighbors, because suddenly you’re an expert. You know a little more than they know. And your information could be enormously helpful.

By the way, the correct answer to my question is the basement, where critters and insects and natural but poisonous gases like radon enter the home.

Now if you’ve done a good job with your survey, you might get a few requests to fix basements. Your first jobs in a new field! There is just one problem. Do you know how to waterproof a basement?

No problem. I can teach you how. Go to my website and watch free study course videos. Learning this task should not be a great challenge for people already in the trades. After you have completed your education, which won’t take long, grab a starter-kit and before you know it, you’ll have money in your pocket.

If you have done a good job, don’t be surprised if friends, family, business acquaintances and neighbors give your name to their friends. In fact, ask them to do so – it’s free marketing.

Keep improving your sales skills, and you’ll have more work than you’ll know what to do with. Remember, there is a shortage of basement waterproofing contractors nationwide. Go where the money is and claim your piece of the market.

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Is There an Effective Well Water Filter?

May 10th, 2011

Bringing well water into your house puts lots of responsibility on the home owner. With the number of contaminants that may be in the water supply it is a necessity to do comprehensive research on well water filters.

The first step before you go out and look at any well water filters is to get a chemical analysis done on your water. This is easily done by taking a water sample down to the nearest certified water testing laboratory in your area. Just by searching on the internet you can find your state certification officer by visiting the U.S. EPA Web site.

If you’re lucky, in some areas your local health department may do the testing for free. Now armed with information you can now make some informed decisions about well water filters.

One of the most common naturally occurring kinds of pollution found in well water were organisms such as viruses, bacteria and other microorganisms. The good news is that these creatures only typically occur after flooding and during the spring runoff. So they are not present in the well water throughout the year

The bad news is that these organism can cause a variety of physical illnesses. Diarrhea and nausea are the most typical reactions that a person drinking one of these microorganisms would have. The effects are usually short lived but quite acute.

To remove these microorganisms, it’s important to have a well water filter that uses a sub micron filter for removing these and other microscopic organisms that may be in the well. It’s hard to believe but another commonly occurring element in the water supply is radon. Radon is a by product of decaying uranium. This element occurs as a gas but some areas may find this in their well water.

There is no need to panic if radon does turn up in the water supply. The main concern if it is inhaled into the lungs. A carbon based water filter is the simplest solution for removing this substance from the water supply.

So you can see that by simply investigating in systems that have both a sub micron and carbon based filters associated with them, you will be assured of purchasing an effective filtration system.

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What Must be Disclosed in a Real Estate Transaction?

May 8th, 2011

On the surface, disclosure might seem very basic. A potential buyer is entitled to know when the house was originally built, what materials the roof is made out of and how many square feet the house and property are. Though these are all important facts to know regarding your purchase of a home, there is much more information that must be disclosed.

A buyer is entitled to seller disclosures, including material facts, deaths on the property and recent repairs. In addition, there are Property Disclosure Statements required by law in most states. This is a statement the seller must complete. In California, the Property Disclosure Statement is required by Civil Code and is called a Transfer Disclosure Statement.

A home buyer is also entitled to paperwork called he HUD-1. This is a settlement statement showing line item charges. The HUD-1 was created in an effort to simplify the disclosure of closing costs and it does so line by line so that the parties to the transaction are aware of all charges.

There should be a disclosure regarding any homeowner’ association before your client makes the purchase. Aside from the disclosure, help your client ask the right questions, such as what the association’s policies are and how stable they are financially.

There is also a Preliminary Title Report or Title Commitment, which should contain any information regarding easements. In the event that anyone plans to put a pool in the back yard, it is important that you find out about any easements or rights of way, as an easement can stop the plans to build the pool, a fence, and various other additions.

In addition, it is important that any covenants, conditions and restrictions (CC&Rs) be disclosed. CC&Rs are a matter of public record and affect the way the property can be used. It is important that these be researched and that you are aware of the ramifications regarding the house/property you are planning to purchase.

Another group of disclosures involve protecting you from various substances and hazards. There is a lead-based paint disclosure, which gives the buyer 10 days to inspect for lead-based paint unless both parties agree to waive this right. Lead-based paint was banned in 1978; however, even though a property was built after 1978 does not mean that it is lead-free.

Two other disclosures that are important are the radon gas test and toxic mold test. Radon gas has been linked to deaths from cancer and can contaminate the property’s water sources. There are websites that describe radon testing in depth and explain how and why the test should be conducted. Toxic mold is another very important matter. Toxic mold is insidious – it is often not seen and there is not always an odor to it. Testing is usually simple and reasonably inexpensive. It is extremely important that these tests be performed and disclosed, since some issues with mold can be excluded from your homeowner’s insurance policy, and even worse, pre-existing mold can keep you from getting homeowner’s insurance in many cases.

Three more items that should be disclosed are termite inspections, powder post beetle inspections and fumigation tent facts. Termite inspections are a normal part of the process of buying a home. Power post beetles are not as well known. These are a specific type of beetle that eats wood. It is important to get the information about termite and post beetle inspections and how to inspect for damage before the deal is finalized.

The last item is extremely important. Natural Hazard reports disclose various conditions that could affect the property, such as whether the property is subject to shifting sands, fires, flooding or lies on a fault line. It is important to be aware of all this information before you finalize the purchase.

Whether you are closing a conventional sale or a short sale, make sure you have the reports and information you need to make a good decision that will put money in your pocket rather than cost you expenses that can turn a good moneymaking deal into an unnecessary loss.

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