Modesto, CA

What are My Closing Costs Going to Be? This question can cause much anxiety new Homebuyers. Having an idea of what to expect at closing helps first-time homebuyers get over that anxiety easier. The closing process can be confusing and involve many people, documents, and fees. Understanding the costs associated with buying AND protecting your home helps buyers' to have a smoother transaction AND helps save them money.

With the New Real Estate Settlement Procedures Act (RESPA) that began January 1, 2010, HUD requires that loan originators provide borrowers with a standard Good Faith Estimate that clearly explains the key loan terms and closing costs. The lender is required to give you a "best estimate" of the costs of the loan (including some closing costs) within 3 days. This is good news for the homebuyer because it reduces the unnecessary costs and difficulties that come with purchasing a home.

In this market, it is not uncommon for servicers and investor to pay up to a certain amount of the buyer's closing cost. Buyers are welcomed to negotiate certain costs and fees into the sales contract. My motto is to always ask for what is reasonable and see what is accepted. It is necessary to be familiar with the title, escrow, and closing fees. Closing costs are fees that the buyer is responsible for in addition to the sales price of the home. So, what are the fees that are associated with closing on a single family residence? The first thing that comes to everybody's mind first are the Real Estate Broker Commission Fees. However, the seller is responsible for paying Real Estate Broker, the amount that is paid is determined by the seller and is usually stated as a percentage of the sales price. Here is a compiled list of what the buyer is responsible for paying:

• Downpayment
• Loan Fees:
  • Loan Origination, Loan Discount (points), Appraisal Report, Credit Report, Lender Inspection, Mortgage Insurance Application, and Mortgage Broker fee (if applicable).
• Insurance escrow (Items required by the lender to be paid in advance): Some lenders require that you set aside money in an escrow (reserve) account to pay for property taxes, homeowner's and Private Mortgage Insurance, interest, and flood insurance (if required). Lenders use escrow funds to ensure that these items are paid on time to protect their interest in your home.
• Title and Closing Charges: Fees that cover the administrative costs of a title search.
  • Settlement/Closing Fee, Title Search, Document Preparation, Notary Fee and Title Insurance.
• Recording/Government Fees: property information and the loan information are required to be filed at the county courthouse or other local government recording office
  • Recording Fees and Transfer Taxes/Document or Transaction Stamps.
• Miscellaneous Charges: Depending upon the location and type of property and the extra services requested, the following miscellaneous closing costs may be necessary:
  • Survey and Inspection Fees, and Home Warranty.

As your Real Estate Agent, we will negotiate the terms of your purchase contract that best suits your situation because such costs are usually paid on either a monthly or yearly basis; some of the expenses due at the time of closing are prorated. Some of these expenses may involve large amounts: for example, homeowner's association fees, annual condominium fees, and other lump-sum service charges.

Safeguard Your Home From Burglars

By Nick Gromicko, Rob London, Kenton Shepard, Brian Smith

Some interesting statistics concerning break-ins in the United States:

• Theft makes up more than three-quarters of all reported crime.
• In 2005, law enforcement agencies reported more than 2 million burglary offenses.

According to a survey, burglars enter homes through the following locations:

• 81% enter through the first floor;
• 34% of burglars enter through the front door;
• 23% enter through a first-floor window;
• 22% enter through the back door;
• 9% enter through the garage;
• 4% enter through the basement;
• 4% enter through an unlocked entrance;
• 2% enter through a storage area; and
• 2% enter through anywhere on the second floor.

Some interesting statistics concerning break-ins in Canada (2002):

• The burglary rate in Canada, at 877 per 100,000 people, is seven times higher than that of the country with the fewest break-ins, Norway.
• The burglary rate in Canada is slightly higher than that of the United States (at 746 per 100,000 people), but significantly less than the burglary rate in Australia, at 2,275 per 100,000 people.

Consider the following safety measures:

Exterior Doors

• Doors should be made of steel or solid-core wood construction. Hollow-core wood doors are more easily broken than heavy, solid-core doors.
• Doors should be free of signs of rot, cracks and warping.
• Doors should be protected by quality deadbolt locks. Chain locks are not adequate substitutes for deadbolt locks, although chain locks may be used as additional protection.
• If a mail slot is present, it should be equipped with a cage or box. Mailslots that are not equipped with cages or boxes have been used by burglers to enter homes. If no box or cage is present, burglars can insert a contraption made of wire and cord into the mail slot and use it to open the lock from the inside.
• If a door is equipped with glass panes, they should be installed far from the lock. Otherwise, burglars can smash the glass and reach through the door to unlock the door.
• Spare keys should not be hidden in obvious locations. Burglars are very good at finding keys you believe are cleverly hidden. The best place for a spare key is in the house of a trusted neighbor. If keys must be hidden near the door, don't place them in obvious locations, such as under a doormat, rock or planter.
• Install a peephole in doors so you can see who is on the doorstep before you open the door.
• Consider installing bump-resistant locks. "Bumping" is a technique developed recently that can open almost any standard lock with less effort than is required by lock-picking. This technique uses "bump keys," which are normal keys with slight modifications. Lock companies such as Schlage Primus and Medeco manufacture a number of locks that offer some bump-resistance.

Pet Doors:

• Pet doors can be used by burglars to enter homes. Some burglars have reached through pet doors in order to unlock the door. Don't install a pet door, but if one is necessary, it should be as small as possible and installed far from the lock.
• Another reason to forgo pet doors is that a crafty burglar may convince or coerce a small child to crawl through a pet door and unlock the door. Also, some burglars are children.
• Electronic pet doors are available that open only when the pet, equipped with a signaling device in their collar, approaches the door. These doors are designed to keep stray animals out of the home, and may provide protection against burglars, as well.

Sliding Glass Doors:

• They should be equipped with locks on their tops and bottoms.
• They should not be able to be lifted from their frames.
• A cut-off broom handle, or a similar device, can be laid into the door track to prevent it from being opened.

Illumination:

• Lights should be installed on the exterior of all four sides of the house. Burglars prefer darkness so they cannot be seen by neighbors or passersby.
• When you are not home, a few lights should be left on.
• It is helpful to install exterior lights that are activated by motion sensors. Burglars that are suddenly illuminated may flee.

Windows:

• All windows should be composed of strong glass, such as laminated glass, and be in good operating order.
• Consider installing bars, grilles, grates or heavy-duty wire screening. Be aware that barred windows must be equipped with a quick-release mechanism so occupants can quickly escape during a fire.
• Windows should not be hidden by landscaping or structures. If landscaping or structures cannot be moved, lighting can be installed around the windows.

Landscape and Yard:

• Shrubs and trees should not obscure the view of entrances. Shielded entrances can provide cover for burglars while they attempt to enter the residence.
• Fences are helpful burglar deterrents, although they should not be difficult to see through.

While the House is Vacant:

• A loud radio can be used to make burglars think someone is home. Timers can be used to activate radios and lights to make the home appear occupied.
• A car should always be parked in the driveway. A neighbor's car can be parked there so that it appears as if someone is home.
• The lawn should be cut regularly. Uncut grass is a clue that no one is home.

Other Tips:

• Dogs are excellent burglar deterrents. If you don't own a dog, place "Beware of Dog" signs around the yard for nearly the same effect.
• If no security system is installed, you can post security alarm stickers around the yard anyway.

In summary, there are plenty of things you can do to reduce the chance that your home will be burglarized. Ask an InterNACHI inspector if they think your home is unsafe during your next home inspection.

House Numbers

Ever wonder about your house number? Often, the previous owner installed the number and the new owner never had to think about it, leaving them clueless as to why it was placed where it is or why a particular color or size was chosen. These numbers are more important than you probably realize, and a lot of thought goes into making sure they are visible.

House numbers should be clear enough so that police, the fire department, paramedics, etc., can quickly locate properties in an emergency. Numbers are often the only way that first-responders can identify their intended destinations. Your city might even have laws requiring your house number to be of a certain size or color. Also, think of the poor pizza delivery guy who runs late because he can't find your house, or frustrated party guests who have to knock on neighbors' doors before they find yours.

Consider the following recommendations:

• The numbers should be large, within reason. Try to make them at least 5 or 6 inches tall. Smaller numbers may not be visible from the street if you have a large front yard. Replacement house numbers can be purchased from hardware stores and online.
• The numbers should be of a color that contrasts with their background. Reflective numbers are great because they are easier to see at night. Brown on black or white on yellow may look swanky but are bad choices for the purpose.
• Try not to put house numbers behind any trees, shrubs, or anything else that may obscure their view from the street.
• Make sure that the number faces the street that is listed in the house's address. It does emergency workers no good if the house number faces a different street than the one the workers are traveling on.
• Is your house not visible from the road? Then the number should be placed at the driveway's entrance.
• The next time you hire an InterNACHI inspector, ask him whether your numbers are adequate. Inspectors should know the laws in your area and be able to offer you a professional opinion.

Keep in mind that you may need to make adjustments.

Even if your house number is currently adequate, InterNACHI believes that it might need adjustment in the future. The following are common reasons why you may need to adjust your number in the future:

• The addresses assigned to houses by the city occasionally change, and you must adjust your numbers accordingly.
• The trees or shrubs in front of your house have grown so much that the number is no longer visible.
• House numbers installed in the winter may be visible during that season, but become blocked by budding vegetation by spring or summer.

Maintain your house numbers, along with the rest of your home's exterior.

• Keep your numbers clean. They may not be reflective or contrasting if they are covered in mud.
• Trim back vegetation as needed.
• Don't let piles of snow obscure the numbers. If this happens, raise the number so this situation does not happen again.

In summary, house numbers serve a critical function for emergency personnel and should be clearly displayed.

10 Easy Ways to Save Energy in Your Home

By Nick Gromicko, Ben Gromicko, Rob London, Kenton Shepard , and Brian Smith

Most people don't know how easy it is to make their homes run on less energy, and here at InterNACHI, we want to change that. Drastic reductions in heating, cooling and electricity costs can be accomplished through very simple changes, most of which homeowners can do themselves. Of course, for homeowners who want their homes to take advantage of the most up-to-date knowledge and systems in home energy-efficiency, InterNACHI energy auditors can perform in-depth testing to find the best energy solutions for your particular home.

Why make your home more energy efficient? Here are a few good reasons:

• Federal, state, utility and local jurisdictions' financial incentives, such as tax breaks, are very advantageous in most parts of the U.S.
• It saves money. It costs less to power a home that has been converted to be more energy-efficient.
• It increases indoor comfort levels.
• It reduces our impact on climate change. Many scientists now believe that excessive energy consumption contributes significantly to global warming.
• It reduces pollution. Conventional power production introduces pollutants that find their way into the air, soil and water supplies.

1. Find better ways to heat and cool your house.

As much as half of the energy used in homes goes toward heating and cooling. The following are a few ways that energy bills can be reduced through adjustments to the heating and cooling systems:

• Install a ceiling fan. Ceiling fans can be used in place of air conditioners, which require a large amount of energy.
• Periodically replace air filters in air conditioners and heaters.
• Set thermostats to an appropriate temperature. Specifically, they should be turned down at night and when no one is home. In most homes, about 2% of the heating bill will be saved for each degree that the thermostat is lowered for at least eight hours each day. Turning down the thermostat from 75° F to 70°F, for example, saves about 10% on heating costs.
• Install a programmable thermostat. A programmable thermostat saves money by allowing heating and cooling appliances to be automatically turned down during times that no one is home and at night. Programmable thermostats contain no mercury and, in some climate zones, can save up to $150 per year in energy costs.
• Install a wood stove or a pellet stove. These are more efficient sources of heat than furnaces.
• At night, curtains drawn over windows will better insulate the room.

2. Install a tankless water heater.

Demand water heaters (tankless or instantaneous) provide hot water only as it is needed. They don't produce the standby energy losses associated with storage water heaters, which will save on energy costs. Demand water heaters heat water directly without the use of a storage tank. Therefore, they avoid the standby heat losses required by traditional storage water heaters. When a hot water tap is turned on, cold water travels through a pipe into the unit. Either a gas burner or an electric element heats the water. As a result, demand water heaters deliver a constant supply of hot water. You don't need to wait for a storage tank to fill up with enough hot water.

3. Replace incandescent lights.

The average household dedicates 11% of its energy budget to lighting. Traditional incandescent lights convert approximately only 10% of the energy they consume into light, while the rest becomes heat. The use of new lighting technologies, such as light-emitting diodes (LEDs) and compact fluorescent lamps (CFL), can reduce energy use required by lighting by 50% to 75%. Advances in lighting controls offer further energy savings by reducing the amount of time lights are on but not being used. Here are some facts about CFLs and LEDs:

• CFLs use 75% less energy and last about 10 times longer than traditional incandescent bulbs.
• LEDs last even longer than CFLs and consume less energy.
• LEDs have no moving parts and, unlike CFLs, they contain no mercury.

4. Seal and insulate your home.

Sealing and insulating your home is one of the most cost-effective ways to make a home more comfortable and energy efficient -- and you can do it yourself. A tightly sealed home can improve comfort and indoor air quality while reducing utility bills. An InterNACHI energy auditor can be hired to assess envelope leakage and recommend fixes that will dramatically increase comfort and energy savings.

The following are some common places where leakage may occur:

• electrical outlets;
• mail slots;
• around pipes and wires;
• wall- or window-mounted air conditioners;
• attic hatches;
• fireplace dampers;
• weatherstripping around doors;
• baseboards;
• window frames; and
• switch plates.

Because hot air rises, air leaks are most likely to occur in the attic. Homeowners can perform a variety of repairs and maintenance to their attics that save them money on cooling and heating, such as:

• Plug the large holes. Locations in the attic where leakage is most likely to be the greatest are where walls meet the attic floor, behind and under attic knee walls, and in dropped-ceiling areas.
• Seal the small holes. You can easily do this by looking for areas where the insulation is darkened. Darkened insulation is a result of dusty interior air being filtered by insulation before leaking through small holes in the building envelope. In cold weather, you may see frosty areas in the insulation caused by warm, moist air condensing and then freezing as it hits the cold attic air. In warmer weather, you'll find water staining in these same areas. Use expanding foam or caulk to seal the openings around plumbing vent pipes and electrical wires. Cover the areas with insulation after the caulk is dry.
• Seal up the attic access panel with weatherstripping. You can cut a piece of fiberglass or rigid foam board insulation the same size as the attic hatch and glue it to the back of the attic access panel. If you have pull-down attic stairs or an attic door, these should be sealed in a similar manner.

5. Install efficient shower heads and toilets.

The following systems can be installed to conserve water usage in homes:

• low-flow shower heads. They are available in different flow rates, and some have a pause button which shuts off the water while the bather lathers up;
• low-flow toilets. Toilets consume 30% to 40% of the total water used in homes, making them the biggest water users. Replacing an older 3.5-gallon toilet with a modern, low-flow 1.6-gallon toilet can reduce usage an average of two gallons-per-flush (GPF), saving 12,000 gallons of water per year. Low-flow toilets usually have "1.6 GPF" marked on the bowl behind the seat or inside the tank;
• vacuum-assist toilets. These types of toilets have a vacuum chamber which uses a siphon action to suck air from the trap beneath the bowl, allowing it to quickly fill with water to clear waste. Vacuum toilets are relatively quiet; and
• dual-flush toilets. Dual-flush toilets have been used in Europe and Australia for years, and are now gaining in popularity in the U.S. Dual-flush toilets let you choose between a 1-gallon (or less) flush for liquid waste, and a 1.6-gallon flush for solid waste. Dual-flush 1.6-GPF toilets reduce water consumption by an additional 30%.

6. Use appliances and electronics responsibly.

Appliances and electronics account for about 20% of household energy bills in a typical U.S. home. The following are tips that will reduce the required energy of electronics and appliances:

• Refrigerators and freezers should not be located near the stove, dishwasher or heat vents, or exposed to direct sunlight. Exposure to warm areas will force them to use more energy to remain cool.
• Computers should be shut off when not in use. If unattended computers must be left on, their monitors should be shut off. According to some studies, computers account for approximately 3% of all energy consumption in the United States.
• Use efficient "Energy Star"-rated appliances and electronics. These devices, approved by the DOE and the EPA's Energy Star Program, include TVs, home theater systems, DVD players, CD players, receivers, speakers and more. According to the EPA, if just 10% of homes used energy-efficient appliances, it would reduce carbon emissions by the equivalent of 1.7 million acres of trees.
• Chargers, such as those for laptops and cell phones, consume energy when they are plugged in. When they are not connected to electronics, chargers should be unplugged.
• Laptop computers consume considerably less electricity than desktop computers.

7. Install daylighting as an alternative to electrical lighting.

Daylighting is the practice of using natural light to illuminate the home's interior. It can be achieved using the following approaches:

• skylights. It's important that they be double-pane or they may not be cost-effective. Flashing skylights correctly is key to avoiding leaks;
• lightshelves. Light shelves are passive devices designed to bounce light deep into a building. They may be interior or exterior. Light shelves can introduce light into a space up to 2½ times the distance from the floor to the top of the window, and advanced light shelves may introduce four times that amount;
• clerestory windows. Clerestory windows are short, wide windows set high on the wall. Protected from the summer sun by the roof overhang, they allow winter sun to shine through for natural lighting and warmth; and
• light tubes. Light tubes use a special lens designed to amplify low-level light and reduce light intensity from the midday sun. Sunlight is channeled through a tube coated with a highly reflective material, then enters the living space through a diffuser designed to distribute light evenly.

8. Insulate windows and doors.

About one-third of the home's total heat loss usually occurs through windows and doors. The following are ways to reduce energy lost through windows and doors:

• Seal all window edges and cracks with rope caulk. This is the cheapest and simplest option.
• Windows can be weatherstripped with a special lining that is inserted between the window and the frame. For doors, weatherstrip around the whole perimeter to ensure a tight seal when closed. Install quality door sweeps on the bottom of the doors, if they aren't already in place.
• Install storm windows at windows with only single panes. A removable glass frame can be installed over an existing window.
• If existing windows have rotted or damaged wood, cracked glass, missing putty, poorly fitting sashes, or locks that don't work, they should be repaired or replaced.

9. Cook smart.

An enormous amount of energy is wasted while cooking. The following recommendations and statistics illustrate less wasteful ways of cooking:

• Convection ovens are more efficient that conventional ovens. They use fans to force hot air to circulate more evenly, thereby allowing food to be cooked at a lower temperature. Convection ovens use approximately 20% less electricity than conventional ovens.
• Microwave ovens consume approximately 80% less energy than conventional ovens.
• Pans should be placed on the correctly-sized heating element or flame.
• Lids make food heat more quickly than pans that do not have lids.
• Pressure cookers reduce cooking time dramatically.
• When using conventional ovens, food should be placed on the top rack. The top rack is hotter and will cook food faster.

10. Change the way you wash your clothes.

• Do not use the "half load" setting on your washer. Wait until you have a full load of clothes, as the "half load" setting saves less than half of the water and energy.
• Avoid using high-temperature settings when clothes are not that dirty. Water that is 140 degrees uses far more energy than 103 degrees for a "warm" setting, but 140 degrees isn't that much better for washing purposes.
• Clean the lint trap before you use the dryer, every time. Not only is excess lint a fire hazard, but it will prolong the amount of time required for your clothes to dry.
• If possible, air-dry your clothes on lines and racks.
• Spin-dry or wring clothes out before putting them into a dryer.

Homeowners who take the initiative to make these changes usually discover that the energy savings are more than worth the effort. However, you should consider that inspectors can make this process much easier and perform a more comprehensive assessment of energy saving potential than you can. For a qualified inspector, visit www.InspectorSeek.com. Ask the inspector if they are trained in performing energy inspections.

In March 2009, President Obama Administration introduced the Home Affordable Modification Program (HAMP). HAMP was designed to assist 3 to 4 million homeowners that are facing foreclosure. This program was to allow home owners to have their mortgage interest reduced considerably for a five year time period. Under HAMP, the homeowner would have to meet the following eligibility requirements:

1. Homeowner must be delinquent on their mortgage or faces imminent risk of default.
2. Property is occupied as borrower's primary residence
3. Mortgage was originated on or before January 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties.

According to the Associated Press online news article title, Gov't increases pressure on mortgage industry, "the Treasury Department is cracking down on the 71 companies participating in the government's $75 billion effort to stem the foreclosure crises." According to the article, the reason that the mortgage companies have not been able to help the homeowners is because they have a hard time getting borrowers to turn in the completed paperwork in a timely manner. Which is interesting, about two weeks ago, I went to Short Sale Seminar and in the midst of the Real Estate Agents talking the consensus was that the homeowners are not getting complete information or returned phone calls to know what paperwork they really should be turning in and when.The problem remained that homeowners are not receiving any REAL assistance with this growing foreclosure problem. The main problem that got the country into this BIG foreclosure problem to begin with....nobody wants to be ACCOUNTABLE for their actions.

The great thing about the Obama Administration is that once a program is announced and put into action...it doesn't end there. The President has a mission and I believe that he is planning to see it through. I can tell through his actions! The Administration went back to the participating companies, reviewed their accomplishments and short fallings, and decided that more needs to be done.

Hence, the birth of Home Affordable Foreclosure Alternative Program (HAFA). HAFA gives additional options to avoid costly foreclosures and also offers incentives to borrowers, servicers, and investor who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures. If a borrower makes a good faith efort to sell the property, but is not successful, a servicer may consider a DIL. With a DIL, the borrower voluntarily transfers ownership of the property to the servicer provided title is free and clear of mortgages, liens, and encumbrances. All homeowners MUST go through HAMP first before consideration for HAFA is taken by servicers and investors. HAFA, alternative to all HAMP-eligible homeowners who:

1. Do not qualify for a trial period plan
2. Do not successfully complete a Trial Period plan
3. Miss at least two consecutive payments during HAMP modification
4. Request a short sale or deed-in-lieu

The Second Lien Modification Program (2MP) is expected to reach 1 to 1.5 million responsible homeowners who are struggling to afford their mortgage. 2MP is a complimentary program to the HAMP and coordinates with HAMPs first modification program to lower payments on the second mortgage and offer comprehensive affordability solutions for homeowners.

The Home Affordable Modification Program and the Home Affordable Foreclosure Alternative Program both include paid incentives for the servicers and the homeowners. Homeowners it is better to go through short sale than foreclosure...it is better for all parties involved. HAFA is schedule to begin in 2010!

I, personally, am elated...I feel that we FINALLY have some REAL solutions for the homeowners. Is it going to run as smooth as it sounds...we will soon find out!

Homeowners who may be eligible for assistance can call 888-995-HOPE, or visit http://www.makinghomeaffordable.gov.