Whether you’re a young homeowner or a senior retired in your own home, preparing your largest investment for the winter months is important and a good cost-effective preventative measure.  Gold Key Home Inspection’s, Inc. is committed to helping homeowners stay educated on the care of their home with quick tips and money saving advice. This winter, make sure your home is ready for the long cold days to come.
1. Check your Heating System: Have a professional do a routine check before winter sets in. Vacuum vents and other heating components. Replace your furnace filter—depending on your furnace model, you may need to change the filter every 30-60 days. Program your thermostat between 68-72 degrees while at home and 60-65 degrees when away. This is one way to be more economic during the winter months and keep a little extra $ in your pocket. Check your thermostat batteries if you have a battery-powered one…they may need to be changed as well. If you have a propane or oil tank, make sure you have enough to keep everyone warm this winter. If you have a boiler, never cover it or block its air vents and ensure the outside flues aren’t blocked either.

2. Check your doors and windows: Seal or prevent air leaks. Check locks on all windows in the house and do not forget to check the basement windows too. In older homes, install storm windows to add another layer of protection from the cold temperatures. Add or replace worn weather-stripping around doors and windows. Caulk gaps where necessary. Replace worn door sweeps at the bottom of doors. Use caulking and weather-stripping around entry points for all pipes and ducts that travel through exterior walls.

3. Check your fireplace: If you have not used your chimney in a long time, it may be a good idea to have a Chimney Sweep Specialist come and take a look at it if you want to use it this winter. When not in use, keep the damper airtight to keep warm air from escaping your home.

4. Check your roof and gutters: It is always a good idea to take a peek at the condition of your roof during the fall and winter seasons. Replace loose shingles. Make sure the flashing around the chimney or vent pipes is watertight. Check the bricks and mortar for signs of deterioration. Make sure the gutters are still clear of debris and the downspouts are faced away from the house with extensions to move water away from the foundation. Trim tree limbs and bushes so that the house remains free from any moisture caused by foliage. It will also lessen the chance of severe damage caused by limbs due to heavy icing.

5. Check the outdoor care areas: Drain water from outdoor spigots and sprinklers. Bring pumps indoors. Unhook hoses from water faucets. Roll up hoses and store them inside. Give decks an additional coat of sealer (in colder climates, this will need to be done in October or early November. Check foundation and siding for cracks or gaps and repair as necessary. Window AC units should have special attention given to their care. If you take the appliance out of the window, be careful not to bend or damage the cooling fins on the back. Do not store the A/C unit on the garage floor where it might come into contact with corrosive de-icing salts left behind by vehicle tires.

6. Check your insulation levels: The largest amount of heat that escapes from your home leaves through the attic. It is estimated at almost 45% loss. Experts agree that an R-30 rated insulation is the minimum requirement for insulation. Newer homes usually have this standard, but older home may need more.

7. Check your smoke and carbon monoxide detectors: It is a good idea to replace batteries on all your smoke detectors in your house. Test them. Because homes in the winter time are closed up, it is also a good idea to have a working carbon monoxide detector.

8. Senior checklist: For further warmth and comfort during the winter months, place several throw blankets on the couches and chairs in your home where you spend the most time. The soft, easy to use throws help a person to stay warm when the heater shuts down and the room begins to cool. It prevents the constant movement of standing, walking, and constant adjustment of the heat in order to keep the body warm as it ages. In climates where snow is more prolific, make sure you keep a bag of salt and a shovel in an accessible spot for clearing sidewalks, steps and drives, or have a contact person/company available to complete this task for you. It is also a good idea to have a family member or neighbor regularly check up on you during the winter months in case of an emergency or accidental fall.

We hope you find these tips helpful. Have a warm and cozy winter season!

Change is in the air and the Fall season is in full swing.  Temperatures have mellowed and dropped from the hot days of Summer and Winter is just around the corner.  With the holidays approaching and a few days off to get stuff done around the house, you may want to consider some “Fall Maintenance” to keep your home functioning and cutting down on the wear-n-tear on your home.  Here are ten tips to help you save money and take care of your largest investment:

1. Clean your Gutters

The gutter system to a home is important in keeping your home in good working order.  Clogged gutters can lead to roof damage or even basement moisture or flooding.  When your gutters are functioning properly, water will drain away from the house rather than next to the foundation.  Heavier rains could lead to more significant problems with your basement if your gutters are clogged.  As the temperature plummets and Winter is in full swing, freezing water poses a new frustration  and you end up with heavy ice dams on your roof due to a clogged gutter system.  The weight and leaking water can also cause significant roof damage. 

2. Repair Driveway and Sidewalk Cracks.

Living in an area where the temperature tends to fluctuate below freezing frequently in the Winter, you should look to repair cracks in cement or asphalt of your sidewalks and driveways to prevent further cracking.  When water gets into these cracks and feezes, it expands and can only make the crack worse as well as produce more cracks.  Your local hardware store can advise you on various sealers to apply to the cracks and it is usually a quick and cheap fix.

3. Inspect your Chimney.

If you have a wood stove or fireplace, it is a good idea to inspect it or have it inspected by a professional before using it this Winter.  A clogged or dirty chimney or flue can be a dangerous situation.  Hazardous gases can fill up your house and may have the potential of starting a fire.

4. Remove Hoses and clutter from your Yard.

Less time outside is the norm during the colder months of the year.  Make sure your yard doesn’t have any surprises that will show themselves with the first hard freeze.  Check all your outside faucets to make sure they are completely off and disconnect your hoses.This will ensure that you will not have to purchase a new hose or deal with a busted pipe due to freezing.  Also, check the yard for fallen debris and retrieve any tools that may have been left outside accidentally.

5. Test Smoke Alarms and Carbon Monoxide Detectors.

This is a cheap but essential way you can keep your family safe while you are couped up during these colder months.  Basic detectors are as little as $20 and worth the investment.

6. Clean out the dryer vent.

It is estimated that dirty dryer vents are responsible for at least 15000-16000 home fires each year, according to the US Fire Administration.  Making sure the vent in the dryer as well as the venting system to the outside is free of debris, is another way you can ensure your family’s safety this season.  While you are checking, make a note of  the seal on the vented area that exits the house to see if there are any large gaps that need to be addressed…heat loss in these areas can be significantly reduced, thus making a difference in your heating bill.

7. Check and replace your furnace filters.

Regular inspections of your furnace filters will prolong the life of your furnace.  Air flows less freely through dirty furnace filters, thus the efficacy of your furnace is compromised when the filters are not checked regularly.  Take note of the kind of filter you have in your furnace.  Some filters need to be changed monthly, some seasonally, and still others biannually.  Seek a professional heating and cooling expert if you have any questions about your system.

8. Inspect and or Flush the Hot Water Heater.

Sediment collects in your water heater over time.  This sediment forces your wter heater to work even harder and hinder its efficiency and lifespan.  It is a good idea to drain it every so often. 

9. Check the house for Energy Leaks.

When was the last time you peeked into your attic?  Check the amount of insulation.  Check the R-value and see if it is sufficient for your needs.  Heat-loss through the roof of your home is the number one source of heat-loss and can be remedied easily.  Check out www.energy.gov for the R-values most effective in your climate (http://www.energysavers.gov/your_home/insulation_airsealing/index.cfm/mytopic=11220).  You may also want to inspect for air leaks around all doors and windows.  Over time, weatherstripping can wear down and create gaps creating drafts.

10.  Consider a Programmable Thermostat

Check out http://www.energysavers.gov/tips/thermostats.cfm for valuable information on how these thermostats can help save you money.

“HUD is committed to providing healthy and safe homes as part of our mission to help make the nation’s housing more healthy and sustainable,” said HUD Secretary Shaun Donovan. “These grants will help communities to protect families and children from significant health and safety hazards.”

The funding announced today will go to cities, counties, states and universities to eliminate dangerous health and other safety hazards in thousands of privately-owned, low-income housing units. These funds are provided through HUD’s Healthy Homes Production, (HHP) Lead and Healthy Homes Technical Studies (LTS, HHTS), and Asthma Interventions in Public and Assisted Multifamily Housing (AIPAMH) grant programs.

State Grantees

*Grant program abbreviations are as follows:
AIPAMH: Asthma Interventions in Public and Assisted Multifamily Housing
LTS: Lead Technical Studies
HHP: Healthy Homes Production
HHTS: Healthy Homes Technical Studies

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the
need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build
inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
More information about HUD and its programs is available on the Internet at www.hud.gov and
http://espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at
www.facebook.com/HUD, or sign up for news alerts on HUD’s News Listserv.

Many agents and VA Loan applicants wonder what sort of necessary preconditions they must meet in order to satisfy VA Loan Inspection requirements. According to the article, Home Appraisals and Inspections for Your VA Loan (http://www.valoans.com/va_article.cfm?id=113), “When you apply for a VA mortgage, an appraisal/inspection of the home is a common requirement. In these cases, before your VA home loan can be finalized, both the VA and the buyer should know about the specific condition of the property whether it’s a brand new home or one that’s stood the test of time for many years. These inspections or appraisals do provide a valuable service, but they don’t act as a guarantee that the home is completely free of defects. As the buyer, you owe it to yourself to completely examine the property yourself before you commit to your VA mortgage. If a VA fee appraiser comes to an existing home and certifies it so you can move forward with your VA guaranteed home loan, there are plenty of areas you’ll need to inspect yourself. Did you know a fee appraiser doesn’t necessarily state whether the plumbing works properly or perform a roof inspection? Those are just two of the areas where ‘hidden’ problems could be lurking. In addition to less obvious problems, a VA fee appraiser isn’t obligated to recommend cosmetic repairs, and while the appraiser may be a trained observer, it’s not possible to find every potential problem. You’ll need to provide your own input on the condition of the property and make sure it’s up to your standards before signing the VA loan agreement. If it’s not, you’ll need to negotiate further before agreeing to purchase the property.”

VA Loans have other requirements besides the VA Appraisal which only deems a property “safe, sound, and sanitary.” A termite inspection is necessary with this loan also. Well testing or water testing is another component that is required, though checking with the lender of the VA loan will be necessary in order to clarify the types of water tests needed to satisfy their loan requirements. These test choices range from Bacteria/ecoli, Nitrates, Nitrites, Lead, Mercury, Cooper, Fluoride, and Arsenic which will test the potability of the water. You need to make sure you are using a water testing facility that is APA approved.

In speaking with Mrs. Simpson from the VA office in Indianapolis, she also encourages all VA loan approved applicants to get their own whole house inspection completed on the home they are purchasing with the VA loan. The inspection report will give a more detailed report on the home’s condition to the buyer. She states there is a big difference between what the VA Apraisal report and the inspection report from a home inspector. Make sure you hire a certified/licensed home inspector in the state of Indiana as it is a requirement that they carry such licensure in order to do business in this state; and as always, make sure you check with your VA Loan officer for any changes or specifics about your VA loan.

Radon is the chemical element (Rn) of atomic number 86, a rare radioactive gas belonging to the noble gas category [odorless, colorless, monatomic gases, with very low chemical reactivity...the six noble gases that occur naturally are helium (He), neon (Ne), argon (Ar), krypton (Kr), xenon (Xe), and the radioactive radon (Rn).]
It is an element formed by the decay of radium that seeps into some homes through sump pumps, cracks in the foundation and other inlets. Radon is known as the heaviest of the inert gasses and occurs naturally (especially in areas over granite) and is considered a hazard to health. The EPA links it to an estimated 22,000 deaths a year.

The only way to know if your home has an elevated radon level (4.0pCi/l or higher from the EPA needs mitigation system) is to have your home tested.

Based on some 21,000 residential property valuations, about 45 per cent of the total market, e.surv estimate that approvals were up 6.7 per cent between May and June, with banks anxious to meet their planned lending targets, making up for depressed activity earlier in the year.
But first-time buyers are making up a steadily shrinking proportion of total lending, as banks remain cautious about risk. Those getting their first foot on the housing ladder accounted for only 22 per cent of approvals in June, down from 23 per cent in May. This contrasts to early 2008 when they accounted for 30 per cent of all approvals. Approvals rose fastest in London, which saw a 12.3 per cent increase, reinforcing the capital’s increasing disconnect from the rest of the UK market.
Restrictive criteria on some new high loan-to-value mortgage products meant few low-income first- time buyers were actually able to qualify, e.surv said.
Richard Sexton, the business development director of e.surv, said: “Lenders still have to deal with significant risks to their balance sheets so, after a concerted effort to meet lending targets for the first half of the year, the next few months could see a return to a lower level of activity as they ration funds cautiously in the third quarter.”
For more about this article, The Independent: http://www.independent.co.uk/money/mortgages/firsttime-buyers-see-no-letup-in-home-loan-drought-2313980.html.  (Written by Sean O’Grady, Economics Editor)

[http://www.goldkeyinspect.com] Inspectors from Gold Key Home Inspections inspect homes for health and safety hazards, structural issues, systems that are broken or not functioning properly (electrical, plumbing, heating/cooling, roof/attic, foundation, water penetration and damage), and perform a RecallChek on appliances in the home. When preparing your home for an inspector to inspect it, make sure you have removed items or vehicles from the attic access panel or crawlspace as well as secure pets. If a radon test is being performed, make sure windows are closed and you are aware of the protocol to follow during the the testing process.

Gold Key inspects homes and business in northeast Indiana (South Bend, Mishawaka, Osceola, Elkhart, Goshen, Nappanee, LaGrange, Ligonier, Warsaw, Syracuse, Kendallville, Fort Wayne, Angola) and the southern counties of Michigan. Check us out on Facebook and at our website. [http://www.goldkeyinspect.com]

[http://www.goldkeyinspect.com] Inspector Jamie from Gold Key Home Inspections discusses several unsafe conditions involving the vent pipe, draft hood, temperature and pressure relief pipe or valve, and distance from combustibles. Gold Key inspects homes and business in northeast Indiana (South Bend, Mishawaka, Osceola, Elkhart, Goshen, Nappanee, LaGrange, Ligonier, Warsaw, Syracuse, Kendallville, Fort Wayne, Angola) and the southern counties of Michigan. Check us out on Facebook and at our website. [http://www.goldkeyinspect.com]

• In 2009, the agencies lifted the minimum credit score that borrowers must have from 580 to 620. That’s probably for the best.  But they’ve pushed through a host of other requirements as well, and that means real estate deals don’t get done, even for some relatively low-risk borrowers.

“You can have one Fannie/Freddie guideline you violate and that gets you rejected,” said Alan Rosenbaum of GuardHill Financial.

A quarter of all mortgage loan applicants get denied for loans, according to the Federal Reserve. Many other potential homebuyers never even try to get loans, said Jerry Howard, president of the National Association of Home Builders.

“The pendulum has swung too far in the other direction,” Howard said. “This overreaction is retarding the housing market recovery.” (Homes: What a million bucks buys)

Here are some of the reasons that banks must turn down borrowers for mortgages:

• Too few of the condos in your association have been sold

For Fannie/Freddie lenders to approve a mortgage to finance purchase of a condo, a large majority of the units — 70% — have to be already sold or under contract to individuals. Before 2009, the threshold was 51%.

If more than 30% are still owned by the company that built the complex or sponsored its conversion from rental units, the mortgage will be denied, no matter how qualified the buyer is.

Vulture investors flipping their way to big profits

The reasoning is that condo developments where the builders or sponsors still own a large share of the units are more likely to get into financial difficulty. If the builder or sponsor runs out of funds before it can sell off the units, it may stop paying the common charges and property taxes.

Struggling sponsors have also lost unsold units to creditors, which resold them off at bargain basement prices. That jeopardizes the values of all the condo units, sending borrowers underwater and making them more likely to default.

The agencies also refuse to fund condo loans if buildings face some pending legal liability, if more than 15% of owners are behind on homeowner dues or if more than 10% of units are owned by a single entity.

• Your debt is too high

Fannie and Freddie have also increased their emphasis on income relative to debt.

If someone’s total debt payments exceed 45% of income, the mortgage will be denied. In 2009, the limit was 55%.

Using that as a hard and fast rule can penalize very qualified buyers, ones who should be able to meet their debt obligations.

Take, for example, a couple that wants to buy a second home as a rental. Two mortgage payments could easily push them past the 45% threshold, even though they’ll have rental income and home equity.

The 45% rule can also hurt small business owners who have had a couple of bad years. Their incomes may be down relative to their debt, but they may have plenty of cash to keep from defaulting on a mortgage.

• The wait after foreclosure is extended to seven years from five

Some borrowers lost homes to foreclosure but then diligently rebuilt their financial health. Despite high credit scores, ample assets and income and steady employment, lenders are not allowed to finance their Fannie/Freddie mortgages if their foreclosures happened any time within the past seven years.

Before spring last year, the wait time was five years.

• Missed payments on credit card debt

Fannie and Freddie also have gotten stricter in how they factor in missed payments on credit cards, auto loans and other debts in which the balances do not have to be paid off every month.

They used to be okay with a missed payment or two. Now, one missed payment will hit your debt-to-income ratio, because banks will add 5% of your outstanding loan balance to the debt part of the calculation.

That would be an extra $1,000 on a $20,000 student loan balance, for example.

• Where to go

“Portfolio lenders will look at the entire credit history and see a blemish and say, ‘This has no impact on credit worthiness,’” said Rosenbaum.

They may offer rates and terms competitive with agency loans but if there are serious risk factors, loans can be more expensive, according to Bob Moulton, a mortgage broker with Americana Mortgage on Long Island.

“It’s a tough environment,” he said “For people like the self-employed, mortgages can get pricey.”

He recently arranged a mortgage for a private businessman through a savings bank. His client paid a rate of 7.9%, about three points higher than the average 30-year fixed. The rate is only good for three years, after which it resets and can rise by as much as two points annually and go as high as 13.9%.