Flagship Realty - Specializing in REO's and Foreclosures for over 30 years

Goals
When purchasing a home, it is important to identify your goals so that you can understand what is to be expected from the home purchasing experience. Contacting an agent at Flagship Realty should be your first step toward developing a plan to ensure that your home purchasing experience is both easy and enjoyable.

Identifying Your Goals
To identify your goals, you should consider the purpose of buying this new home. The goal may be because your family is growing and you need a larger house or simply because you would like to increase your quality of living by upgrading to a new community. All your goals should be identified so that the financing of the home can be structured to achieve your objective.

Meeting Your Goals
A Flagship agent will assess what you want in a new home, analyze your financial budget, find you a property that meets your expectations, and make sure that you stay informed throughout the process.

Affordability
To determine how much home you can afford, you need to calculate your expected monthly payment

.Principle & Interest (P+I)
Typically your payment will go toward loan principal and interest, also called P+I. However, your monthly payment may also include amounts for property taxes and homeowner's insurance. Because of these extra payments, your monthly P+I payment is sometimes called your P+I+T+I payment.

Loan-to-Value (LTV)
If you plan to make a down payment of less than 20% of the home purchase price, the lender might also require the payment of private mortgage insurance (PMI) which will increase your monthly payment. Lenders require PMI to insure against the higher risk of default that occurs with loan-to-value (LTV) ratios greater than 80%. (An LTV of 80% is equal to a down payment of 20%.)The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a mortgage lender or financial adviser. You can contact Fulcrum Financial, Inc. at 626.332.3186 for more information.

Inspections
A home inspection determines if anything needs to be repaired or replaced. Flagship Realty will help to arrange the inspection for you. Your Flagship Agent will make sure the contract indicates who pays for the inspection and whether you or the seller is responsible for any necessary work. The contract should also include a contingency in case the inspection reveals any repairs that cannot be resolved with the seller. Typical inspections may include...

Termites - signs of termites in the home or foundation.
Plumbing - checks for leaks, dripping faucets, toilet tank leaks, etc..
Electrical - up to code? Checks that all light switches and wall sockets are working properly
Exterior - settling cracks, paint peeling
Interior - signs of leaks in walls or ceilings, structure and general condition
The Roof - checks for leaks or damage
Windows- good condition and sealed
Insulation - up to code?
Appliances - checks that they work along with heating and air conditioning units
Radon Gas - an odorless and colorless gas that is sometimes found in the earth's rock and soil
Lead-Based Paint - some older homes may still have lead-based paint that can be hazardous if ingested
Asbestos - homes built in the early 1970s and before often had asbestos tile floors and asbestos ceiling tiles. This substance poses a health risk and must be removed

The home inspector will write up an inspection report with all minor and major defects itemized. Good inspectors will find minor flaws in nearly any home. It's up to you to decide how important they are. It is also helpful to be present during the inspection.