Five Home Repairs To Budget For

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You’re going to have to do some regular repairs and maintenance on your home—it’s just a fact of home ownership. So that you’re not caught unprepared, it’s a good idea to keep a budget and set aside some funds for when the following repairs inevitably come up.

Light switches: Beyond your typical light bulb replacements, the wiring can occasionally go bad in a light fixture, causing it to be unresponsive when you turn the light on. An electrician can fix it quickly for around $100.

Gutter maintenance: Over time, the weight and weather will be too much for your gutters, causing them break away from the home and require fixing. It’s possible to fix them yourself, but it will typically cost up to $400 to have them fixed professionally.

Drywall repairs: It’s easier than you’d think to put a hole in your walls, especially if you bump them when moving furniture. It can cost up to $300 for professional repairs.

Running toilet: The moving parts and valves in a toilet can wear out over the years, and you’ll want to get it fixed quickly to save on water bills and keep your bathrooms usable. It’s about a two-hour job to fix for professional plumbers, and they charge up to $150 an hour, depending on your market.

Tile repairs: Tile goes through a lot of abuse, and it’s not just impact from heavy objects that can damage individual tiles—years of foot traffic will also cause damage. Repair costs can vary greatly because of the cost of individual tiles, but it’s good to set aside around $200.

The Ins And Outs Of Home Inspection

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Home inspection is a crucial step in the homebuying process. After finding the perfect house, you will want to ensure that there are no hidden faults that may require lengthy and expensive repairs or renovations down the line.

To prepare you for this process, here are the top four things you need to know.

The buyer is responsible for the inspection. Make sure you give yourself ample time to find a reputable, certified home inspector by asking for referrals from your real estate agent, friends, and family and do your research online. Plus, don’t forget to factor in the cost of the inspection into your budget.

Home inspectors are usually generalists. They will evaluate most areas of your home, such as the foundation, basement, plumbing, electrical systems, heating and cooling systems, walls, floors, ceilings, and attics. But, if your home is equipped with special features, like a pool or chimney, you may need to hire a specialist.

Buyers can attend the inspection. In fact, a lot of inspectors suggest it! This is an opportunity for you to get any outstanding questions regarding the condition of the house you are purchasing answered.

You have options if the inspection uncovers a problem. If the problems discovered are serious, like structural damage or safety issues, the seller is legally required to fix them. You also have the option to back out of the purchase without facing any consequences. If the problems are smaller, you can submit a formal request for repairs and negotiate for them to cover some or all of the cost.

How Do HOAs Work?

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When you purchase a home, there’s a good chance you’ll have to pay a homeowners association fee, especially in gated communities, townhouses, condominiums, and other similar planned neighborhoods. The idea is to keep common areas clean and maintained, and there’s usually an HOA board that is responsible for setting the rules and regulations.

Each HOA is different, but most have the same core elements. You’ll typically pay your HOA fees either monthly or annually, and it’s an important factor to consider when you’re weighing your options for a new home. So what is typically included in your HOA fees?

First, the fun stuff
Amenities are typically the big perk of living in a community with an HOA. While you lose out on some of the freedom of living without an HOA, you instead get community amenities like a maintained pool, gym, clubhouse, tennis courts, and other amenities. The HOA fees pay for cleaning and maintenance, so—in theory—you’ll always have a clean pool whenever you want to use it.

Protecting the community
HOA fees often contribute to insurance for the community amenities, as well as a fund for unexpected repairs to damaged community property—think damage from weather or accidents.

General maintenance
Your HOA fees will go toward maintaining the general safety and upkeep of the community. This means things like elevator maintenance for condominiums, snow removal, and trash/recycling services.

Be active in the association
There may be a board of directors, but homeowners associations exist for the betterment of the entire community, and every voice matters. HOA meetings—and the amenities they support—provide great opportunities to meet your neighbors and make your community a better place.

Five Ways You Can Get Earnest Money Back

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Earnest money is a deposit you pay when you make an offer on a home—it’s a way to show the seller that you mean business. Usually you can’t get it back, but there are several circumstances that allow you to recover your earnest money.

Appraisal contingency: With an appraisal contingency, you can recover your earnest money if the home is appraised for less than your offer. This gives you a better negotiating position—if the seller doesn’t agree to a lower price, you can get your earnest money back and walk away from the deal.

Major problems with the home: It may be your dream home at the surface level, but an inspection could reveal major, major problems—such as issues with the foundation, or flood damage. In that case, you can get your money back if the seller doesn’t agree to a lower price.

The seller backs out: Obviously, if the seller changes their mind about the transaction—maybe they decide not to sell, or accept a higher offer—you get your earnest money back.

Your house hasn’t sold: Many buyers can’t afford a new home if they’re still financially responsible for their old one. In this case, you can work a sale contingency into the contract, and get your earnest money back if the home doesn’t sell soon enough.

Financing issues: Though there are some limits on financing contingencies, you can get your money back if you’re unable to get a loan.

What You Need To Know About Refinancing Your Mortgage

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Refinancing your mortgage can have many financial benefits when done at the right time in the right way. Here’s what you need to know about this type of transaction.

What is refinancing your mortgage?

When you refinance your loan, you essentially pay off your remaining mortgage with funds from a new one. The process is fairly simple and similar to when you applied for your initial mortgage. You’ll gather quotes from multiple lenders, file an application, gather and provide financial documentation, like paystubs, bank statements, etc., then close like you did when you first purchased.

Why should you refinance?

Refinancing your home loan is an option available to most homeowners. This decision can allow a homeowner to reduce their monthly mortgage payments, negotiate a shorter payment term, switch to a different type of loan, cash out on home equity, and consolidate debt.

When should you refinance?

Timing is key when it comes to refinancing your home. The best time to take this step is when interest rates drop lower than the rate you closed at. Another good time to consider refinancing is if your current credit score could allow you to qualify for better interest rates than your time of purchase.

What are the costs to refinance?

Unfortunately, refinancing isn’t free. Your refinanced mortgage will come with similar fees to your original, such as appraisal, title insurance, closing costs, and more. Because of this, when deciding to refinance, make sure the money saved outweighs the fees your will incur.