Ali Asi's Blog

15 Common Home Problems Buyers should pay attention to

Mon, 03 Dec 2018 19:03:32 GMT

15 Common Home Problems Buyers Should pay attention to

Once you finish the purchase of a home, you become responsible for everything that comes with it. Unfortunately, this includes any existing issues with the home. Ensuring that any property you may purchase is free of the following fourteen problems may take some extra time and money during the home-hunting and inspection phases, but can save you far more in the long run.

1. Roof Issues

The roof is undoubtedly one of the most important parts of a home. A compromised roof can cause serious damage to the house and to your pockets. Roof repairs can be quite costly, and should be factored into the price of the home. Keep in mind that most sellers won’t replace a roof if there are still a few years of expected life in it.

2. Storm Damage

Extreme weather can cause significant damage to the exterior of the house, both on to the roof and to the siding, or even foundations, in case of flooding and freezing. Hail damage can be quite destructive and easy to miss as it’s often not visible to the naked eye. A good home inspector should be able to spot hail damage by using special gear and can also assess the integrity of the roof and foundation.

3. Old Appliances

It’s highly unlikely that the property you’re buying is equipped with brand new appliances. Be sure you take into consideration the cost of repairing or even replacing them should they stop functioning. Do some research on the brand, model and especially the year of the property’s major appliances to know exactly what to expect.

4. Handrails

You might not think of them as a big deal, but functional handrails are mandatory on staircases and along balconies. A wobbly handrail can be a serious safety issue, so be sure to test all of them.

5. Rotten Wood

Rotten wood may be found anywhere that moisture, mold, or humidity are issues. Check the base of the home, along the roof and especially on the window sills. Finger-jointed materials, used heavily in the 80’s and 90’s, usually rot more quickly due to water penetration. If the home has a wood deck, be sure to check if it was properly maintained and prepared for the cold season.

6. Cooling or Heating Systems

Replacing an HVAC system can be an extensive and costly project. Be sure to check the age and maintenance schedule of any temperature control system already in the home. Regular servicing is crucial for this kind of item, and while a well-maintained boiler can last thirty years or more, the cost and time involved in replacing a boiler or furnace risks turning a profitable investment into a loss.

7. Environmental Issues

Doing a thorough check for any environmental concerns should be on every potential buyer’s to-do list. The last thing you want to discover in your new home is mold or asbestos. These, alongside materials such as radon or lead-based paint, are serious health concerns.

8. Electrical Safety Concerns

The older the home, the most likely it is to have faulty wiring. Current codes require ground fault breaker outlets in bathrooms and kitchens, but you should also consider today’s increased electrical load. People are using more appliances and electronics than ever, so be sure the wiring is up to date and can handle the electrical load in order to avoid frying that new plasma screen TV.

9. Poor Drainage/Roof Water Control

As we’ve established already, water damage along a foundation can kill a sale in a split-second. Poor roof and gutter drainage is another cause for water damage, one that many buyers overlook when making a purchase. Check that the drainage paths direct water away from your foundation on any property you purchase. This should include checking the gutters as well. Clogged or poorly maintained gutters can be a sign that the upkeep of the property hasn’t really been a priority.

10. Pest Control

Pest infestations can be quite a hassle. They are hard to resolve and usually reoccur. Look for signs of previous pest issues both inside and outside the home and be sure that the area was properly sprayed during routine pest control visits.

11. Poor Ventilation

In a lot of homes mold develops because there is not enough airflow in a specific room. Proper ventilation in all areas of the house, including the attic, is a must if you want to avoid mold problems.

12. Plumbing Problems

The plumbing system is another hidden part of the home that is crucial in making the space comfortable and livable. Just as in the case of electrical equipment, homes with older pipes and fixtures may present problems. Unexpected factors, such as tree root growth can also cause serious damage to a plumbing system. Be sure the house has plumbing that works by checking for all the common bathroom problems.

13. Poor Caulking

Check around the windows and doors for proper caulking and weather stripping. These items wear out in time, but they are relatively easy to repair or replace. This will ensure that water or air doesn’t come in around the doors and windows.

14. Bad Insulation

Good insulation is vital everywhere, but especially north of the 49th. If you’re viewing a home in summer, it may not be until winter that you fully appreciate the cost of poor insulation. Get a specialist to verify that the home has good quality insulation in the walls and attic.

15. Foundation Cracks

This could prove one of the most expensive repairs a home owner may encounter. Of particular importance are the craks are larger than 1 cm accompanied with a lateral shift on the two sides of the crack. Normally, if the creack is only a few mililimetres, with no lateral surface dispalcemenets, it could just be a normal wear and tear.

Final Advice

If you are not worried about spending a few hundred dollars on a professional home inspection, it is always adviseable to get your house professionally inspected prior to your purchasing it. But, exceptionally, under the following circumstances, you may be able to get away with a professional home inspection, even though it is not adviseable.

If you are buying a brand new property.
If you are buying an apartment under 1,000 SQFT and no older than 10 years old.
If you are buying a property mainly because of the land value. The examples of these properties are detached houses with large lots with the ratio of [Assessed value of the land] over [Assessed value of the building] over 5 or more.

Ali Asi | 604-785-8900 | info@aliasi.ca | Royalty Group Realty

How long does it take to have a credit good enough to buy a home?

Thu, 29 Nov 2018 04:34:00 GMT

How long does it take to improve your credit score? If you're hoping to buy a home, having a good credit score is key, since it helps you qualify for a mortgage. So if your credit score is low, knowing how long it takes to raise it to home-buying range can help you plan. While raising a credit score can't happen overnight, it is possible to raise your credit score within one to two months. However, it could take longer, depending on what's dragging down your score and how you handle it. Here's what you need to know.

How long does it take to raise a credit score?

What's considered a good score versus a poor one? Gernerraly speaking credit score is a number between 300 to 900. And, these are the range of numbers and their interpretations:

Perfect credit score: 850-900
Excellent score: 760-849
Good credit score: 700-759
Fair score: 650-699
Low score: 600-650
Very poor score: 300-600

While it varies by area and type of loan, generally lenders will look for a score of 660 or higher to grant a mortgage.

If you’re looking to boost your credit score fast, here are some actions you can take.

How to get your credit report and score

There are in total 3 main credit report agenecies: EquiFax, TransUnion and Experian. You can go to the websites of any of these agencies and order your credit report to be mailed to you, free of charge. Howver, if you want to get a copy of your credit score, in addition to your credit report, you have to pay a nominal fee, ranging from $14-$30.

Fortuntely, there are two alternative free ways to do this:

- CreditKarma is providing an excellent free servce which gives you access to your credit report and score. The caveat is that you have to put up with some advtersiment banners around your screen. Also, I have found the report formatting is not as organized as the one you can get from Equifax, but it will still do the job. In addition to being free, this site has couple of additional advantges. First of all, it will update your score once a week. Secondly, it has an amzing mobile app, which is something always missing from the other agencies.

- Royal Bank of Canada and Bank of Nova Scotia have recently added this free complementary service to their clients which will give them the same free access as CreditKarma does.

Once you have received your cresit report, try to read each item very carefully and try to identify any errors or even accounts which you do not recognize.

Correct errors on your credit report

Correcting errors on your credit report is a relatively quick way to improve your credit score. If it’s a simple identity error, like a credit card that’s not yours showing up, you can get that corrected within one to two months. If it’s an error on one of your accounts, though, it could take longer, because you need to involve your creditor as well as the credit bureau. The entire process typically takes 30 to 90 days. If there’s a lot of back-and-forth between you, the credit bureau, and your creditor, it could take longer.

Next, review them for errors. If it’s an error on one of your accounts, you must refute that error with the bureau by providing documentation arguing otherwise. For example, if you paid a credit card on time and the card issuer is reporting a late payment, find a bank statement showing that you paid on time. Credit bureaus typically have 30 days to investigate the error. If they agree that it’s an error, they will remove the item. The credit bureau may also ask for additional information or ask you to discuss the information with the creditor involved. If that’s the case, stay on top of communications with your creditor so you can get things resolved as quickly as possible.

Deal with delinquent accounts

Bringing delinquent accounts current and settling accounts that are in collections can also boost your score fairly quickly. Once the creditor or collection agency reports your account update, you should see a positive bump in your score. Keep in mind, though, that your late payment history will remain on your credit report for seven years. If you have bad accounts that have been on your report for six years or more, you may not want to worry about settling them or bringing them up to date. This can re-age the account, and if you fall behind again, it will stay on your credit report for another seven years. Make sure you don’t re-age these accounts, because they’re going to drop off soon. Negative information typically “falls off” your credit report after seven years, so if you're close, it’s best to just wait it out.

Lower your credit utilization

Credit utilization refers to how much you owe compared with the amount of credit you have available. For example, if you have a $10,000 credit limit across all your credit cards and you have balances totaling $9,000, you’ve utilized 90% of your credit. This drags down your credit score. What you need to do is pay down the balances on your existing credit accounts, which can be a challenge if you've allowed the balances to creep up over time. The ratio of what's owed to the amount of credit available represents 30% of your score, so rapid improvement is possible if there's a large amount of money available to pay down balances.

Next, try paying down balances to below one-third of your credit line. Any payments you make will be reflected on your credit report as soon as your creditors report your payment to the credit bureaus. Credit scores are updated on an ongoing basis, and creditors typically report once per month, so if you make a payment that lowers your credit utilization, that should be reflected on your credit score within two months.

If you’re regularly using your credit card but you want to keep your utilization low so you can apply for a mortgage, you may want to pay down your credit-card balance on a weekly or biweekly basis. This ensures that your balance is as low as possible whenever your creditor reports your payment history to the credit bureaus.

You can also decrease your card utilization by getting more credit, but this approach can backfire. Consumers sometimes assume that by getting more credit, their credit score will improve. If you have a $3,000 balance on a card with a $4,000 credit limit and you're approved for a new credit card with a $1,000 limit, you now have $5,000 in total credit lines. Instead of using 75% of your available credit, you're now using 60%. That's better, right? Not necessarily. Just applying for credit lowers your credit score, and that effect lasts for months. For the first few months after you apply for credit, your credit score may actually go down.

You can try getting around this by asking a credit limit increase on a card you already have. Be sure to ask whether they do a “soft” credit pull rather than a “hard” credit pull, though, since hard credit inquiries are the ones that impact your credit. A creditor may be willing to give you a credit line increase with a “soft” pull, which will not hurt your credit score.

Soft inquiries are for background purposes only. For example, a credit card company may do a soft pull to see if you're eligible for certain credit card offers, or an employer may do a soft pull before offering you a job. Soft pulls can be done without your permission and do not impact your credit score. Hard pulls require your permission, and are done when lenders or credit card companies are assessing whether to grant you a loan or line of credit.

How to raise your credit score for the long haul

Once you’ve corrected errors, settled your delinquent accounts, and brought your credit utilization under control, the only other things that will improve your score are time and developing good payment habits. For example, if you tend to forget to make payments, you can set up automatic payments so you don’t forget.

And here's some good news for people with bad credit: Generally, people with the lowest scores will see the biggest gains the fastest. Improving your credit score, is a lot like dieting. For instance, if your score is 550, you could probably get it up 30 points in a matter of a couple months, if you’re really dedicated and really careful. On the other hand, If your credit score is already a 750 and you’re trying to get it to 780, that can take double or more the time. Still, it's worth doing whatever you can to get the best interest rate possible.

Ali Asi | 604-785-8900 | info@aliasi.ca | Royalty Group Realty