What is title insurance?

Title insurance protects the named insured against loss because of defects, liens, encumbrances, adverse claims or other matters not shown or disclosed to the new owner that attach before date of policy.

What is a wood-destroying organism inspection report?

A wood-destroying organism inspection report is a written opinion by a qualified state licensed structural pest control inspector based upon what was visible and evident at the time of inspection. The inspection report does not in any way represent or guarantee the structure to be free from wood-destroying organisms or their damage, nor does it represent or guarantee that the total damage or infestation is limited to that disclosed in the report. Wood-destroying organisms include subterranean termites, dampwood termites, carpenter ants, wood boring beetles and wood decay fungus.

What are the hazards of lead-based paint?

All buyers and sellers are required by law to receive and read a pamphlet outlining the hazards of lead-based paint for homes built before 1978. Be sure to ask your real estate agent for a copy.

What are closing costs?

Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate. For sellers, they are usually about 9.5-10% of the total sales prices of a property. Some of the closing costs you might encounter are: discount points, escrow fee, documentation fee, homeowners' association fees, pest/rot inspection, real estate commission and title insurance premium.

What is the difference between "pre-qualified" and "pre-approved"?

If a buyer is "pre-qualified" it has been determined, with a loan officer, what price the buyer can afford based on the down payment, debts and the amount the mortgage company will approve for the mortgage. Being "pre-qualified" is only a determination of probably credit. If "pre-approved", credit, employment and funds have been approved by the lender.

What should a home inspection include?

Every inspection should include, but not be limited to, an evaluation of the following:

1. Foundations
2. Roof
3. Heating and air conditioning systems
4. Ventilation
5. Common areas (for condominiums)
6. Septic tanks, wells or sewer lines*
7. Insulation
8. Plumbing and electrical systems
9. Ceiling, walls and floors
10. Doors
11. Hazardous materials concerns*

*There may be an additional fee for this

What property details are usually included by the Multiple Listing Service?

• Location
• Price
• Amenities
• Current financing (when assumable)
• Photograph
• Utilities
• Annual property tax
• Listing company

What pages are generally included in the Purchase and Sale Agreement?

• Agency Disclosure
• Financing Addendum/Clause
• Earnest Money Receipt
• Inspection/Clause
• Conditions/Disclosures Addendum
• Contingency
• Addendum Outlining Special Conditions
• Lead-Based Paint Notification
• Property Disclosure Form (completed by Sellers)

What is the difference between a REALTOR® and Real Estate Agent?

REALTOR® identifies real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics. Not every real estate agent is a REALTOR®. A REALTOR® may be an appraiser, property manager or involved in some other aspect of the real estate business.

Credit
Owning a home helps you establish financial credibility.

Independence
Owning your own home provides you with independence and more privacy than renting. You are free to paint walls, plant flowers, keep pets and anything else within legal bounds.

Investment
As you make more payments and own more of your home, you add to its investment value. Most improvements you make will also add to its value.

Pride
A home reflects its owner's values and lifestyle. Owning a home can provide you with a source of pride, enjoyment and satisfaction.

Security
A home can provide security against inflation because the value of your home increases as prices go up.

Stability
Being established in a community provides a sense of belonging, stability and security.

Tax Advantages
Interest on your mortgage loan is deductible on your yearly personal income tax return. Many of the closing costs associated with purchasing your home are deductible, as are your property taxes.

Real Estate Agents
You can sit down with a real estate agent and discuss your needs, type of area, style of home, amenities and everything you really want in your next home. Real estate agents can help you by accessing the Multiple Listing Service which covers all properties listed for sale within a specific area. Together, you can select the homes you would like to see, set appointments and preview homes in a short period of time. An agent can guide you through the entire process.

Newspaper Ads/Internet
Many people go through the real estate classified section or browse the Internet to find a home that appeals to them. However, your real estate agent will have many listings available that may not appear in the newspaper or Internet on a continuous basis. New listings come on the market daily.

Multiple Listing Service
Your real estate agent should have access to the multiple listing service if it is available in your area. It usually includes the following details about homes and properties for sale:

• Location
• Price
• Photograph
• Utilities
• Amenities
• Annual property tax
• Current financing (when assumable)
• Listing company

When Previewing A Home...

• Write notes when previewing a home so you will be able to discuss the details later with your real estate agent.
• Ask questions about the home and discuss any objections or concerns you may have.
• Ask about the community - schools, shopping and transportation.
• Ask specific questions about the construction of the home; electrical, plumbing, heating, cooling systems, etc.

Have Fun
Relax. Finding your new home can be a rewarding experience. Have a good time and enjoy the process.

What is an inspection?
There are numerous types of inspections. An inspection is meant to evaluate, at minimum, the structural and mechanical condition of a property. It is not the same as an appraisal which evaluates the market value of a property. Persons involved in real estate transactions need unbiased information about the physical condition of a property they plan to buy or sell and your contract should include a contingency that you obtain a satisfactory inspection report. Talk with your agent about the types of inspection available.

Home Inspectors vs. Engineers
Home Inspector: A person who examines any component of a building, through visual means and through normal user controls, without the use of mathematical sciences.
Engineering: Analysis or design work requireing extensive preparation and experience in the use of mathematics, physics, chemistry and the engineering sciences.

Finding a qualified Inspector

• Referrals from satisfied customers
• Referral from a local real estate agent or mortgage company
• Local consumer affairs office
• Yellow Pages under "Building Inspection Services"

As if she/he is a member of the American Society of Home Inspectors (ASHI). The ASHI has established standards of practice which include the specific services, limitations and exclusions that can be expected from private home inspectors.

What the inspection, at minimum, includes
Every inspection should include, but not be limited to, an evaluation of at least the following:

• Foundation
• Doors
• Roof
• Heating and air conditioning systems
• Insulation
• Plumbing and electrical systems
• Ceiling, walls and floors
• Hazardous materials concerns
• Common areas (in condominiums)
• Ventilation

Remember, unless you're buying new construction, the home is older & has been used. You should expect some normal wear and tear in reasonable areas.

What is the difference between "pre-qualified" and "pre-approved"?
If a buyer is "pre-qualified" it has been determined, by a loan officer, what loan amount the buyer can afford based on the down payment, debts, income, and the amount the mortgage company will approve for the mortgage. Being "pre-qualified" is only an educated guess at what you will qualify for. If "pre-approved", credit, employment, income and funds have been approved by the lender.

What are closing costs?
Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate. For sellers, they are usually about 9.5-10% of the total sales prices of a property. Some of the closing costs you might encounter are: discount points, escrow fee, documentation fee, homeowners' association fees, pest/rot inspection, excise tax, real estate commission and title insurance premium.

What is a point?
One point is equal to 1% of the new loan amount. Whenever government regulation, state usury laws and/or competitive practices prohibit the lender from charging a rate of interest that would make the real estate loan competitive with other fields of investments, the lender must seek some method of increasing the yield for the investors. By charging "points", the lender can bring the real estate loan up to those other investments.

What is earnest money?
When you make an offer, you will need to put up an earnest money deposit as a sign of good faith that you are seriously interested in buying a home. That deposit is held in a trust account until the sale is ready to close. At this point it becomes part of your down payment. Typically, an earnest money is 3-5% of the offer amount.

What is title insurance?
Title insurance protects the named insured against loss because of defects, liens, encumbrances, adverse claims or other matters not shown or disclosed to the new owner that attach before date of policy.

Is VA or FHA financing unfair to sellers?
FHA and VA loans provide purchases the opportunity to buy homes with minimal cash investment and at lower interest rates. The result is a larger market for sellers, who also benefit by receiving all cash for their equity.

Moving Tips

Moving Overview Checklist

One Month Before Moving

• Fill out change of address order form for post office.
• Fill out an IRS change of address form.
• Make arrangements with moving company or reserve a rental truck.
• Make travel arrangements, if necessary, with airlines, buses, car rental agencies and hotels.
• Transfer memberships in churches, clubs and civic organizations.
• Obtain medical and dental records, x-rays and prescription histories. Ask doctor and dentist for referrals and transfer prescriptions.
• Set up a checking account in your new city.
• Check into the laws and requirements of your new city regarding home-based businesses, professional tests, business licenses and any special laws that might be applicable to you.
• Take inventory of your belongings before they're packed, in the event you need to file an insurance claim later. If possible, take pictures or video tape your belongings. Record serial numbers of electronic equipment.
• Make arrangements for transporting pets.
• Start using up food items, so that there is less left to pack and possibly spoil.

One To Two Weeks Before Moving

• Switch utility services to new address. Inform electric, disposal, water, newspaper, magazine subscriptions, telephone and cable companies of your move.
• Arrange for help on moving day.
• Confirm travel reservations.
• Reserve elevator if moving from an apartment.
• Have appliances serviced for moving.
• Clean rugs and clothing and have them wrapped for moving.
• Plan ahead for special needs of infants.
• Close bank accounts and have your funds wired to your new bank. Before closing, be sure there are no outstanding checks or automatic payments that haven't been processed.
• Collect valuables from safe-deposit box. Make copies of any important documents before mailing or hand carrying them to your new address.
• Check with your insurance agent to ensure you'll be covered through your homeowner's or renter's policy during the move.
• Defrost freezer and refrigerator. Place deodorizer inside to control odors.
• Give a close friend or relative your travel route and schedule so you may be reached if needed.

On Moving Day

• Double check closets, drawers, shelves, attic and garage to be sure they are empty.
• Carry important documents, currency and jewelry yourself, or use registered mail.
• Carry travelers checks for quick, available funds.

After Arriving At New Home

• Renew your dirver's license, auto registration and tags.
• Shop around for new insurance policies, especially auto coverage.
• Revise your will and other legal papers to avoid longer probate and higher legal fees.
• Locate the hospitals, police stations, veterinarian and fire stations near your home.

Packing Tips

• Keep the following supplies handy for packing:
-Boxes
-Marking pen
-Bubble wrap, newspaper, tissue
-Tape and scissors
-Tape Measure

• Use strong boxes and containers that can be secured tightly. Purchase special boxes for dishes, wardrobe and other special items.

• Pack audio-video equipment in their original boxes. Label cables and tighten transit scres. If removing screws, tape them to the objects they are removed from.

• Avoid loading more than 50 pounds into one box.

• Label each box and indicate the following:
-Which room it should go in
-Whether it is fragile
-If it should be loaded last so it will be unloaded first

• Cushion contents with packing material such as bubble wrap, newspaper or tissue. Save room by using towels and blankets to wrap fragile items.

• Pack books tightly on end in small boxes. If musty smelling, sprinkle talcum powder between the pages and wrap the book before packing. Leave stored for a couple of months to eliminate the smell.

• Have rugs and draperies cleaned before moving and leave them in wrappings for the move.

• Pack medicines in a leakproof container.

• Carry all valuables with you.

House Plants And Garden

Check with your local U.S. Department of Agriculture for regulations regarding moving plants from one state to another. Many states have restrictions on certain plants to prevent importing bugs or pests that can destroy valuable cash crops.

House Plants

• A Couple Of Weeks Before You Move
Prune plants to facilitate packing. Consult a florist or a plant book for instructions.

• A Week Before Your Move
Place your plants in a black plastic bag, along with a bug/pest strip, conventional flea collar or bug powder. Close the bag and place in a cool area overnight to kill any pests on the plant or in the soil.

• The Day Before Your Move
Place the plants in cardboard containers. Hold them in place with dampened newspaper or packing paper. Use paper to cushion the leaves and place a final layer of wet paper on top to keep them moist. If you must leave your plants behind, then take cuttings. Put them in a plastic bag with wet paper towels around them.

• On The Day Of Your Move
Set the boxes aside and mark "DO NOT LOAD" so they won't be taken on the moving van. Close the boxes and punch air holes in the top before loading into your car.

• When Moving
Park your car in a shaded area in the summer and a sunny spot in the winter.

• Upon Arrival
Unpack the plants as soon as possible after arrival. Remove plants through the bottom of the box to avoid breaking the stems. Do not expose the plants to much sunlight at first. Let them get gradually accustomed to more light.

Garden

• Research climate and soils of new home.

• Seeds - gather and store in an airtight container.

• Bulbs - dig up during their natural dormant season. Pack in a mixture of loose dry peat moss and vermiculite to provide a lightweight and protective transport medium.

• Garden tools - sharpen blades of clippers, lawn mowers and shears and apply a thin coating of household or motor oil to protect the paint and metal parts. Clean and disinfect rakes, hoes and sprinklers. Household bleach can be used to disinfect a variety of items.

• Plants - some plants can be dug up and transplanted.

Pets

Following are tips for moving your pets to their new home.

Cats and Dogs

Cats and dogs can be taken in your car. If so, remember to take along the following items:
-Food
-Water
-A leash for letting your pet out of the car
-Newspaper or sheets to keep you car clean

Animals can get car-sick and will require frequent stops along the way. Also, check ahead to see if the hotel where you are staying allows pets. Depending on the animal's temperament and size, it might be better to have it shipped by air. Be sure to check if your destination has any local requirements or restrictions on animals.

To have your pet shipped by air, make sure someone can meet your pet at the destination airport and take care of it until you arrive. A kennel can do this for you and keep your pet until you have completed your move, if necessary.

If you are flying to your new destination, your cat or dog can ride in the baggage compartment. You may need the following items:
-Health certificate. Obtain this from your veterinarian.
-Pet container. The airline might have a special container available or you can use your own as long as it complies with airline regulations.
-Tranquilizers. Your vet can provide tranquilizers to be given to your pet immediately before going to the airport.
-Your scent. Your pet can be comforted by having a piece of cloth with your scent on it.

Smaller Animals

Hamsters, birds and other small animals can easily be transported in your car. To help keep the animals calm and quiet, cover cages with a cloth. Also, make sure they have food and water available.

Fish

It can be very impractical and risky to move fish. Check with your local pet store for recommendations on moving your specific type of fish.

Moving Companies

Consumer complaints against moving companies have been rising. Following are some tips that can help your move go smoothly.

• Get a binding estimate from the moving company. Make sure the amount is written in the contract.
• Inquire about their on-time record and other complaints with the local Better Business Bureau or consumer complaints department.
• Movers are limited by law regarding what they can give you for lost or damaged goods. To cover potential damage, check existing homeowner's or renter's policy.
• Ask about expected gratuities and write into contract.
• Have the contract include a guarantee of how many hours the job will take, allowing an overrun of no more than 10%.
• Be sure all charges are listed on contract.
• Inform the moving company of how many stairs are at your new home.
• Watch loading and unloading and examine all items carefully before signing a receipt.
• Document an inventory of your belongings before you pack.

Title Companies

Banks and Lenders

Windermere Mortgage Services Series LLC / Skagit Valley can work with you online, by phone, in person, or through any combination of these methods that works best for you.

Home Inspectors