Gold Key Home Inspections

The Home Buyer Tax Credit Extension Has Not Been Passed Into Law (Yet)

2010-06-18T06:03:00.001-07:00

As its June 30, 2010 closing deadline approaches, the federal home buyer tax credit is back in the news.

Unfortunately, the headlines are misleading.

Contrary to what you may have read (or heard), the federal home buyer tax credit has not been extended past June 30, 2010. At least not yet. And here's why there's confusion.

Look at these headlines from earlier this week:

Senate Extends Date On Home-Buying Tax Credit (Philadelphia Inquirer)
U.S. Senate Approves Extension Of Home Buyer Tax Credit (NASDAQ)
Senate Approves Home Tax Credit Extension (Reuters)

Now, nothing above is factually incorrect, but each neglects a key piece of the country's law-making process -- it takes more than the Senate to pass a law. For a bill to become a law, it must pass the Senate and the House of Representatives and then it must be ratified by the President.

To date, we've only cleared just one of those 3 steps.

This means that the federal home buyer tax credit has not been formally extended. As of now, it's still in discussion. Ultimately, though, if the extension does pass, it's expected to extend the closing date deadline for South Bend home buyers beyond the original June 30, 2010 date into September 2010.

Homeowners must still have been in contract as of April 30, 2010 to claim up to $8,000 in federal tax credits.

Good News For Sellers : Housing Starts Fall To 1-Year Low In May 2010

2010-06-17T06:00:00.001-07:00

Single-family housing starts plummeted to a one-year low in May, just 30 days after soaring to a 20-month high. It's no wonder home builders are confused.

Against a revised April figure, Housing Starts fell 97,000 units in May, a figure representing almost one-fifth of the total market size.

It's the worst showing for Housing Starts since May 2009, a surprise to builders and economists alike.

Furthermore, single-family Building Permits plunged in May, too -- down 10 percent from April. A permit is a certification from local government that authorizes home construction.

Housing permits are a precursor to Housing Starts with 82% of homes starting construction within 60 days of permit-issuance. Fewer permits, therefore, directly reduces the number of new homes coming to market in the coming months.

For home buyers in Shipshewana , this should create a sense of urgency.

Home prices are based on supply and demand and supply appears to be falling about the same time that economists predict a surge in home demand. It could spell rising home prices and a complete loss of negotiation power with home sellers.

For now, though, home affordability remains high with properties cheap and mortgage rates near all-time lows. If you plan to buy a home later this year, the May 2010 Housing Starts data may be a reason to move up your timeframe a bit.

Loan Application Alert : Conforming, Interest Only Mortgages Guidelines Change Next Week

2010-06-16T06:03:00.001-07:00

If you plan to finance your Shipshewana home with a conforming interest only mortgage, get your loan application submitted no later than this Friday, June 18.

Starting next week, Fannie Mae is clamping down on the popular loan product.

An "interest only" mortgage is exactly what its name implies -- a mortgage for which the monthly payments consist entirely of interest with no principal reduction. Because there's no amortization, payments are less costly on a month-to-month basis.

For example, assuming principal + interest payments at 5 percent, a $250,000 mortgage carries a monthly payment of $1,342. The payment on a comparable interest only mortgage, however, drops to $1,042.

That's a payment difference of $300 and the size of the cost savings, not surprisingly, is the biggest reason why Fannie Mae is making its changes.

In its official announcement, Fannie Mae says it wants the give the interest only option to "borrowers who are in a position to choose it as a financial management tool" rather than allowing homeowners use it as an affordability tool for their budgets.

Going forward, there are new minimum standards for interest only home loans.

Applicants must have a 720 credit score or better
Applicants must have at least 24 months of reserves
The property type may not be a 2-unit, 3-unit or 4-unit
The property must be a primary residence, or vacation home

Furthermore, only purchase and rate-and-term refinances are eligible. Cash out refinances are prohibited.

Interest only home loans aren't for everyone, but if you plan to finance with a Fannie Mae mortgage and interest only is your preference, get your loan application submitted as soon as possible. Starting Monday, approvals will be tougher to come by.

Shopping And Paying Bills Online? Here's Methods To Protect Your Online Financial Identity

2010-06-15T06:00:00.001-07:00

In May 2010, Retail Sales at non-store retailers -- a category that includes Amazon and eBay -- topped $29 billion, up 16 percent from May 2009. Clearly, Americans are doing an increasing amount of shopping online. And we're paying our bills online, too.

But how well are we protecting our identities?

In this 5-minute piece from NBC's The Today Show, you'll learn the basics of online fraud and methods to minimize the likelihood of identity theft. Furthermore, the tips go beyond the basic "choose a challenging password". For example, you'll hear about:

Why you shouldn't pay bills from a coffee shop
Who might be hiding behind an unprotected public wifi network
The dangers of storing credit card numbers with an online retailer

And, although, at one point, the interviewee goes over the top with respect to spyware and anti-phishing prevention, the point being made is a good one -- you can't be too careful with your online financials and common sense goes a long way.

Change Your Air Filters Monthly (But Don't Go Cheap)

2010-06-14T05:58:00.001-07:00

As the mercury rises into the summer months, don't forget to change your home's air filters regularly. It not only extends the life of your HVAC unit, but can help keep your energy costs down, too.

Not all air filters are created alike, however. Don't go cheap.

Your local hardware store carries a variety of air filters ranging in price from less than a dollar to $20 or more per filter. They're all purported to do the same job, but after watching this 1-minute video, you'll see why cheaper isn't necessarily better.

Airborne particles are smaller than most mesh filters. Pleated filters are recommended instead.

Most high-quality air filters start around $11 and can be purchased in bulk from Amazon at discounts of up to 20 percent. 3M's Filtrete line of products is a popular, well-selling brand and can last up to 3 months.

If your home has shedding pets or is dust-prone, consider changing them monthly.

FHA Mortgage Insurance Premiums Approved To Triple In Cost

2010-06-11T05:58:00.001-07:00

Starting sometime later this year, the monthly cost to carry an FHA-insured mortgage is expected to rise.

In a near-unanimous vote, the House of Representatives gave the FHA power to raise the monthly mortgage insurance premiums it charges to its borrowers.

Currently, monthly mortgage insurance premiums are 0.55% of the unpaid loan balance, divided by 12. The recently approved Federal Housing Administration Reform Act provides for an increase in monthly premium of up to 1.55 percent, among other details of the bill.

Despite the ability to charge 1.55 percent, FHA officials say an increase to 0.90 percent would be sufficient to self-insure its loans.

In everyday terms, assuming a $200,000 mortgage, the math to a homeowner looks as follows:

Current Premium (0.55%) : $91.67 monthly mortgage insurance premium
Expected Increase (0.90%) : $150.00 monthly mortgage insurance premium
Maximum Increase (1.55%) : $258.33 monthly mortgage insurance premium

A increase in monthly mortgage insurance premiums will reduce home affordability for buyers in South Bend and strain household budgets.

The news isn't all terrible, however.

Because higher monthly insurance premiums are expected to pad the FHA coffers sufficiently, the FHA has said it plans to reduce its upfront mortgage insurance premium paid at closing from 2.25 percent down to 1.000 percent.

On the same $200,000 mortgage, a move like that would reduces closing costs by $2,500.

The bill awaits companion legislation in Senate and final approval into law, but considering the House's lopsided vote Thursday, it could happen rather quickly. If you're planning to buy or refinance a home using an FHA mortgage, you may find that waiting to take the next step could be a costly one, long-term.

The FHA insured close to a quarter of all mortgages made in the first three months of 2010.

Bank Reposessions Reach Record Levels For The Second Straight Month

2010-06-10T05:58:00.001-07:00

According to foreclosure-tracking firm RealtyTrac.com, bank repossessions reached record levels for the second straight month in May, topping 93,000 properties nationwide.

As compared to May 2009, all 50 states now show an increase in annual REO activity.

Data like that won't surprise today's active home buyers in Elkhart. Foreclosed homes are prevalent, available and accounted for one-third of all home resales made in April.

Furthermore, total foreclosure actions -- the sum of REO, default notices, and foreclosure auctions in May -- topped 300,000 for the 15th straight month.

Foreclosures remain a huge influence on the housing market.

However, two interesting trends emerged in the data:

9 of the top 10 metro areas for foreclosure posted annual activity decreases
Each of the top 4 states for Foreclosures per Household posted annual activity decreases

We can infer, therefore, that foreclosure activity may be in permanent decline in the areas hardest hit through 2007, 2008, and 2009. In 2010, the data shows, foreclosures are waning.

This is reason for optimism -- especially as FHA delinquencies slow nationwide. As fewer homeowners go delinquent, the pace of foreclosures will slow further and that should help boost home values on every block in the country.

If you've been considered bank-owned homes for your own purchase, give a look at the RealtyTrac foreclosure report. It's provides insight on a state-by-state level, and in the nation's largest metropolitan areas.

Then, to complement your research, talk to your real estate about the foreclosure market and what opportunities may exist. Competition for bank-owned homes can be fierce at times, but there's plenty of "deals" out there.

You just have to know where to look.

Conforming Loan Costs Are Rising, Says Freddie Mac

2010-06-09T06:05:00.001-07:00

Mortgage rates may be dropping, but mortgage costs are not.

According to Freddie Mac, the average required discount points on a conforming mortgage rate are higher by 0.1 percent since early-May.

A "discount point" is prepaid mortgage interest; an up-front fee paid by a borrower in exchange for a lower mortgage rate. In most cases, discount points are tax-deductible.

Tax-deductible or not, though, rising costs are rising costs and Freddie Mac glosses over it. In its weekly press release, the government group offers mortgage rate comparisons to weeks prior, but doesn't do the same for required points.

The press fails to mention discount points entirely.

An increase of 1/10 percent in discount points costs homebuyers and refinancing households in South Bend an extra $100 per $100,000 borrowed.

The hike reminds us that there's more to a mortgage than just its rate -- costs matter, too. And if you've only been watching the headlines, you would have missed how costs are rising.

Fannie Mae's Loan Quality Initiative : Repulling Your Credit Just Before Closing

2010-06-08T06:16:00.001-07:00

A new loan quality initiative from Fannie Mae is making it harder for Shipshewana home buyers and refinancing homeowners everywhere to close on a mortgage.

Beginning June 1, 2010, with all new applications, Fannie Mae wants lenders to verify that borrowers have not taken on new debt during the underwriting phase of the mortgage.

If new debts are found, the mortgage is subject to a re-underwrite and a possible turndown.

For Fannie Mae, the goal is to reduce the number of loans that go bad because of new, non-disclosed debt. Lenders have the freedom to verify in whatever manner they wish, but in most cases, the verification process will amount to a credit re-pull made just prior to closing.

The underwriters will be looking for 3 things in particular -- even after your loan is approved.

First, your updated credit report will show your current credit card bills and minimum monthly payments. Those numbers will replace your original numbers made at the time of application. If the debts exceed a certain threshold, your loan will be denied.

Second, underwriters will be looking at your updated credit score. If your FICO has dropped below minimum lending standards, your loan will be denied. Or, you may be subject to a new loan-level pricing adjustment.

Loan level pricing adjustments are mandatory loan fee based on your credit score.

And, lastly, underwriters will be looking at your credit report's Credit Inquiry section. The goal is to see if you've been applying for credit elsewhere. Underwriters can use this information at their discretion.

Fannie Mae's Loan Quality Initiative is just one more way that the government-backed group is trying to improve its loan pools. Unfortunately, it'll mean more turndowns for mortgage applicants.

Therefore, take extra care of your credit between the time of application and the time of closing. Don't buy new cars, don't buy new appliances, and -- most definitely -- don't open new credit cards. Be extra safe with your credit because a mortgage application that's supposedly cleared-to-close can be revoked at the eleventh hour.

When in doubt, talk to your loan officer about what may or may not trigger the Loan Quality Initiative. Your loan approval is at stake.

Fannie Mae's Loan Quality Initiative : Repulling Your Credit Just Before Closing

2010-06-08T06:03:00.001-07:00

A new loan quality initiative from Fannie Mae is making it harder for Elkhart home buyers and refinancing homeowners everywhere to close on a mortgage.

Beginning June 1, 2010, with all new applications, Fannie Mae wants lenders to verify that borrowers have not taken on new debt during the underwriting phase of the mortgage.

If new debts are found, the mortgage is subject to a re-underwrite and a possible turndown.

The underwriters will be looking for 3 things in particular -- even after your loan is approved.

Loan level pricing adjustments are mandatory loan fee based on your credit score.

Fannie Mae's Loan Quality Initiative is just one more way that the government-backed group is trying to improve its loan pools. Unfortunately, it'll mean more turndowns for mortgage applicants.

When in doubt, talk to your loan officer about what may or may not trigger the Loan Quality Initiative. Your loan approval is at stake.

May 2010 Jobs Report Gives A Temporary Boost To Home Affordability

2010-06-04T07:15:00.001-07:00

On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls data from the month prior.

The release is more commonly called "the jobs report" -- a major factor in mortgage rates and monthly payments.

Especially now.

With the recession officially over and growth returning to the U.S. economy, the recovery's next frontier is jobs. As job growth increases, home affordability should take a hit. Here's why:

As the number of working Americans increases, so should total consumer spending
As consumer spending increases, so should a return to risk-taking on Wall Street
As risk-taking returns to Wall Street, bond markets should start to lose

Mortgage rates, therefore, should rise.

Furthermore, as the jobs market stabilizes and recovers, renters should be more apt to buy their first home, and homeowners should be apt to up-size. More home buyers in Elkhart means more competition for homes and higher home prices typically follow.

Job growth can be trickle-up for housing.

Today, however, the jobs data was not so strong. According to the government, 431,000 jobs were created in May, but of those new jobs, 95.4% represented temporary staffing for the 2010 Census. The number of private-sector jobs created fell well short of expectations and Wall Street is voting with its dollars right now. Mortgage bonds are gaining so, therefore, rates are falling.

The May 2010 jobs report may not reflect well on the economy, but home affordability in MI and around the country is improving because of it.

Pending Home Sales Data Shows Great Deals On Homes Are Getting Harder To Find

2010-06-03T06:11:00.001-07:00

The Pending Home Sales Index shot higher in April as low mortgage rates and a soon-to-expire federal tax credit spurred home buying in South Bend and across the county.

A "pending home sale" is a home that's under contract to sell but not yet closed.

Region-by-region, April's pending home sales varied versus March's data:

Northeast Region: +29.5%
Midwest Region : +4.1%
South Region : -0.6% (after a +15.9% posting in March)
West Region : +7.5%

On an annual basis, the Pending Home Sales Index is higher by 22 percent.

April marks the third straight month that pending home sales are up and today's buyers should take note. This is because, according to the National Association of Realtors®, 80% of homes under contract close within 60 days.

In other words, May and June's existing home sales data should be similarly strong, causing the Wakarusa real estate market to gently shift in favor of sellers. In fact, already, we're seeing home resales touch multi-year highs while new home supplies fall to multi-year lows.

All of it tends to push home prices higher while simultaneously reducing buyer negotiation leverage. That, coupled with the high probability of higher mortgage rates ahead, means that finding "deals" will get tougher for the average home buyer.

In looking at the housing market data, it appears that the best month in which to have bought a home this year was February. The next best time may be right now.

Talk to your real estate agent if you're planning to buy a home this year. It may be sensible to move up your time frame a few months.

Consumer Confidence Hints At Higher Home Prices And Higher Mortgage Rates, Too

2010-06-02T06:13:00.001-07:00

The Consumer Confidence Index is rising, a potentially double-edged sword for residents of South Bend and for Americans, in general.

According to The Conference Board, economic confidence is as high as it's been since August 2007 -- 4 months before the start of the recession. Americans are optimistic again.

Confidence matters to the economy because as confidence increases, in theory, consumer spending follows. Consumer spending accounts for 70 percent of the U.S. economy.

It's why Wall Street is responsive to confidence data.

When consumer confidence is rising, households start to make big-ticket purchases they may have otherwise put off indefinitely. Maybe it's a replacing old appliances; or, trading in an old automobiles; or, splurging on a vacation.

Rising confidence can also spur real estate sales.

When confidence is rising, a growing family that chose to "make do" in their 3-bedroom, 1.5-bathroom starter home may opt to move-up to a 4-bedroom, 3-bath instead at a slightly higher monthly carrying cost. And there are families in every city in every state making those same decisions.

As a result, the housing market gets a boost -- especially in the mid-to-upper price ranges. Values rise on higher demand for homes.

The downside is that growing confidence tends to push conforming and FHA mortgage rates up. This is because an expanding economy draws investment dollars away from bonds and into stocks -- including mortgage bonds.

The reduced demand for mortgage-backed bonds leads bond prices to fall and mortgage rates to rise. Sometimes by a little, sometimes by lot.

So, if you're buying a home or thinking of a refinance, rising confidence in the economy may be a signal to act sooner rather than later. Talk to your real estate agent and/or your loan officer about next steps and get your plan in place.

How To Replace Your New Home's Deadbolt Locks

2010-06-01T05:49:00.001-07:00

After moving into a new home in Shipshewana , you should immediately replace its deadbolt locks. It's not just the home's former residents that have the key, after all, but so might a relative, a friend, a neighbor, a dog-walker, and others.

You may call a locksmith for the job, but you can save some money if you can do-it-yourself.

In this detailed, 2-minute video, you'll learn how to remove and replace a deadbolt lock using nothing but a Phillips screwdriver and a deadbolt from a hardware store. It's a simple project that requires little mechanical skill.

And one that can make your new home more safe.

The Supply Of New Homes For Sale Just Dropped Off A Cliff

2010-05-28T06:12:00.001-07:00

The supply of newly-built homes for sales plummeted in April, a positive indicator for the Shipshewana housing market as we head into the summer months.

It's no wonder that homebuilders are breaking new ground at the fastest clip in 2 years.

At the current sales pace, the nation's complete supply of new homes would be sold in just 5 month's time. That's more than double the pace of a year ago.

Also, as more good news, in terms of total housing units, the government reports that New Home Sales topped one half-million homes sold for the first time since May 2008.

It's a similar spike as within the Existing Home Sales data released earlier this week.

But before we declare the housing market "repaired in full", we have to consider a few of the reasons why home sales are charting so strongly.

The first reason is the federal homebuyer tax credit's April 30 expiration. In order to claim up to $8,000 in tax credits, home buyers must have been in mutual contract for a property before May 1. There is no doubt this contributed to a run-up in sales, especially among first-time home buyers.

The second reason is that mortgage rates have remained exceptionally low, defying expert predictions. Low rates don't sell homes, but they do make monthly payments easier to manage for households torn between renting or buying.

And, lastly, March and April's new home sales may have been buoyed by aggressive discounting on behalf of homebuilders. As compared to February 2010, April's average new home sale price was lower by 13 percent. That's a sharp drop in a short period of time.

For now, though, homes are selling, supplies are dropping, and buyer interest is high. It's no wonder builder confidence is soaring.

Should You Refinance Your Mortgage?

2010-05-27T06:11:00.001-07:00

Because of strife in Greece, Spain and North Korea, conforming mortgage rates are back to all-time lows. They're at levels not seen in 50 years. For homeowners that missed the Refi Boom of November 2009, it's a second chance.

In this well-presented, 3-minute video from NBC's The Today Show, you'll get tips getting low rates and choosing the best time to lock in.

Some of the topics covered include:

Why were the experts wrong about rates moving higher this summer?
How much money can you save with a 1 point drop in your interest rate?
Should you buy a bigger home now that rates have fallen?

The advice in the piece is matter-of-fact and centered. There is no cheerleading and the message is honest. Mortgage rates are low and they likely won't stay that way. If you've been thinking about a refinance, talk to your loan officer as soon as possible.

Home Price Index Rises 0.3% in March 2010

2010-05-26T06:14:00.001-07:00

Home values rose in March, according to the Federal Home Finance Agency's most recent Home Price Index. Values were reported higher by 0.3 percent, on average, from February.

We use the phrase "on average" because the Home Price Index is broad-reaching, national housing statistic. It ignores the dynamics of neighborhood real estate markets like Wakarusa as well as citywide markets like Elkhart , too.

Instead, the Home Price Index focuses on state and regional statistics.

For example, in March 2010 as compared to February:

Values in the East South Central region rose 2.5%
Values in the Mountain states rose 1.1%
Values in the Middle Atlantic states fell 1.0%

Of course, none of this data is especially helpful for today's home buyers and sellers.

Real estate is a local phenomenon that can't be summarized by state or region. What matters most to buyers and sellers is the economics of a neighborhood and that level of granularity can't be served up by a national housing report like the Home Price Index.

The Home Price Index data is additionally unhelpful to buyers and sellers in that it reports on a 2-month delay.

In other words, Home Price Index is not even a fair reflection of today's market -- it highlights the real estate market as it existed 60 days ago.

So why is the Home Price Index even published? Because government, business and banks rely on the reports. As a national indicator, the Home Price Index helps governments make policy, businesses make decisions, and banks make guidelines. This, in turn, trickles down to Main Street where it impacts every one of us -- and eventually influences real estate.

Since peaking in April 2007, the Home Price Index is off 13.44 percent.

Home Supplies Tick Higher, Creating An Opening For Today's Home Buyers

2010-05-25T06:10:00.001-07:00

Sales of existing homes rose in April, buoyed by an expiring home buyer tax credit and exceptionally low mortgage rates.

As compared to March, April's Existing Home Sales rose by 410,000 units nationwide -- the second straight month of large gains. An "existing home" is a home resold by a prior owner (i.e. not new construction).

It's a solid report for housing overall, with rising sales suggesting that the real estate market's recovery is ongoing. However, the data presented a mixed message.

According to the National Association of Realtors®, although the number of homes sold ticked higher in April, so did the supply of existing homes for sale, too.

Sellers are now listing homes faster than buyers can buy them.

After adding another 0.3 months of supply in April, resale home supply is nearly two full months larger than at November 2009's low-point. This put downward pressure on home prices.

Furthermore, because 49% of April's buyers were first-time buyers and the tax credit has since ended, we can expect that sellers will continue to outweigh buyers in the months ahead.

It presents an interesting opportunity for June's home buyers. Mortgage rates are still at their lowest levels of the year -- despite expert predictions to the contrary -- and homes remain affordable. Plus, in a lot of markets, home values have started to creep higher.

There's good values and good rates but neither should last long. For the next few weeks, real estate may be in its 2010 sweet spot.

If you were thinking of moving in September of this year or later, consider moving up your timeframe.

Video : The Right Way To Water A Garden

2010-05-24T05:51:00.001-07:00

From one pot to a lush garden, we all have plants for which to care in our lives. But are they getting the right amount of water? Too little water and the plant dies. Too much water and root rot sets in.

In general, plants want 1 inch of water per week but Mother Nature doesn't always provide. It's up to us to make up the difference.

In this short video from ExpertVillage, Doug Smiddy shows us how to make sure our plants get the right amount of water they need to survive. He answers questions including:

How do you know if your plants need water right now?
What is best time of day to water outdoor plants?
What is the proper way to water a plant?

The video runs a little bit over 2 minutes and is stocked with helpful tips. If you care for any plants in your life, it's a must-watch video.

Home Opportunity Index Ranks 225 Metro Areas For Affordability

2010-05-21T06:07:00.001-07:00

With home prices still relatively low and mortgage rates trolling near their all-time best levels, it's no surprise that home affordability is extraordinarily high in Shipshewana and most U.S. markets.

According to the quarterly Home Opportunity Index as published by the National Association of Home Builders, more than 72 percent of all new and existing homes sold between January-March 2010 were affordable to families earning the national median income.

It's the second highest reading in the survey's history.

Of course, on a city-by-city basis, home affordability varies.

In the first quarter of 2010, for example, 98.7% of homes sold in Bay City, Michigan were affordable for families earning the area's median income and in Indianapolis, the percentage was almost 95 percent.

Indianapolis has held the top quarterly ranking for close to 5 years now.

On the opposite end of the spectrum, the New York-White Plains, NY-Wayne, NJ region earned the "least affordable" metropolitan area for the 8th consecutive quarter. Just 20.9% of homes are affordable to families earning the local median income.

The rankings for all 225 metro areas are available on the NAHB website but regardless of where your town ranks, home affordability remains high as compared to historical values but it likely won't last long. Home values are recovering in many markets and mortgage rates won't stay this low forever.

All things equal, buying a home may never come this cheap again. If you were planning to buy later this year, consider moving up your timeframe.

The Fed's April Minutes Push Mortgage Rates Even Lower

2010-05-20T06:08:00.001-07:00

After starting the day in the red, mortgage rates rebounded Wednesday afternoon after the Federal Reserve released its April 27-28, 2010 meeting minutes.

It's good news for home buyers and would-be refinancers in Shipshewana. Mortgage rates continue to troll along multi-year lows.

"Fed Minutes" are lengthy, detailed recaps of Federal Open Market Committee meetings, not unlike the minutes you'd see after a corporate conference, or condo association gathering. The Federal Reserve publishes Fed Minutes 3 weeks after each respective FOMC get-together.

The Fed meets 8 times annually.

Because of the minutes' content and density, it's of tremendous value to Wall Street and investors. Fed Minutes provide a glimpse into the conversations and debates that shape the country's monetary policy.

The broad scope of the published meeting minutes are in sharp contrast to the more well-known, post-meeting press release which reads more like a policy summary.

And the extra words matter.

Here's some of what the Fed discussed last month:

On Greece : A crisis in Greece could slow U.S. domestic growth
On housing : Despite government support, growth appears to have stalled
On its mortgage buyback program : There's little reason to sell mortgage bonds right now

When the markets saw the Fed Minutes, what had been a down day for bond markets turned positive. The less-than-sunny outlook for the near-term U.S. economy sparked bond sales, pushing prices higher.

Mortgage rates move opposite mortgage bond prices.

Wall Street is always in search of clues from inside the Fed about what's next for the economy and post-FOMC minutes usually give good fodder. April's meeting was no different.

For now, mortgage rates remain near all-time lows but once the Eurozone issues are settled, rates are likely to rise. If you haven't locked a mortgage rate, your window may be closing. Once the economy is turning around for certain, mortgage bonds will be among the first of the casualties.

The Right Way To Take A Cash Gift For Downpayment

2010-05-19T05:50:00.001-07:00

As lenders tighten mortgage guidelines for South Bend home buyers, minimum downpayment requirements are increasing. Several years ago, you could finance a home with nothing down. Today, most conventional mortgages require at least 10 percent.

Anecdotally, guideline changes have led to an increase in the number of home buyers accepting cash gifts from family.

Gifts are allowed in most cases but the problem is, if you don't accept the gift in a "lender-friendly" way, the mortgage underwriter could reject it, and negate it.

You can't just deposit a cash gift into your bank account. You have to follow a series of steps and keep records.

Provide an acceptable gift letter signed by all parties
Provide documentation of the gifter's withdrawal of funds via teller receipts
Provide documentation of the giftee's deposit of funds via teller receipts

Lenders require these 3 steps for two basic reasons. First, they want to make sure that the cash gift is "clean" (i.e. not laundered). Second, they want to make sure the gift is really a gift and not a loan-in-disguise.

It's why lenders typically require that the loan application be accompanied by a signed, dated letter.

For example:

I am the [relationship to recipient] of [name of recipient] and this letter serves as evidence that I am gifting [name of recipient] [amount of gift] to be used for the purchase of the home at [complete address of property].

This is a gift -- not a loan -- and there is no expectation of repayment.

Signed,
[Signature of gifter]

As an additional step, home buyers receiving cash gifts should make sure that gifted funds are not commingled at the time of deposit. If the cash gift is for $10,000, therefore, the bank's deposit slip should indicate that a $10,000 deposit was made -- nothing more, nothing less. Don't add a random $100 deposit to the transaction, in other words. The $100 deposit should be a separate transaction.

It's also worth noting that gifting funds between family members can create both legal and tax liabilities. If you're unsure about how donating or receiving a gift may impact you, call or email me directly. If I can't help you with your questions, I can refer you to somebody that can.

A Dual-Edged Roller Knife To Make Your Chopped Salads Easier

2010-05-17T05:52:00.001-07:00

With the Oxo Salad Chopper, making chopped salad for the family and/or friends is both faster and safer.

Using a dual-blade roller knife similar to a pizza cutter, the ergonomic Salad Chopper cuts lettuce, vegetables, fruits, meats and nuts with just a few rolls. There's no need for a separate cutting board (and no worries of slicing a finger).

Made from stainless steel, the angle-handled roller is built to trace the curves of the accompanying Oxo bowl. The blades remain in constant contact with the plastic and the rim has a built-on grip to help you get a handle on your work.

The 5.5-quart bowl is big enough for 6 servings and is dishwasher-safe. Oxo says you can serve in it, too, but that's up to you.

Trade in store-bought salad bags and opt for something fresher. Oxo's Salad Chopper sells on Amazon.com for $25.

Your Mortgage Approval Isn't Final Until It's Funded

2010-05-14T06:08:00.001-07:00

A mortgage approval is never final until it's funded.

A host of things can "go wrong" while your home loan is underway. Some are in your control, many more are not. And just being aware of some potential pitfalls could help save your loan down the road, and your peace of mind today.

MSN Money ran a summary piece on the topic titled "10 Things That Can Kill A Home Loan".

It's an excellent article because, unlike most "get approved" articles that advise against things like buying a car before closing, or opening a bunch of new credit cards, the MSN Money piece addresses more uncommon factors that can lead to a similar loan turndown.

For example, a home may be unfundable if it's unsuitable for human habitation -- a condition you may not discover until after a thorough home inspection's been made. Broken windows, lack of plumbing, and/or major foundation damage are all deal-breakers with a lender.

Either fix the home prior to closing, or don't close at all.

Homes in "declining markets" have danger spots, too. Especially for conforming mortgage applicants with less than 20% equity.

Because of how private mortgage insurers operate, some homes carry tougher, ZIP code-based PMI eligibility requirements. As a mortgage applicant, it's important to understand this because you may be PMI-eligible in one neighborhood, but not in another.

There's others ways in which a mortgage approval can go bad, too:

You're self-employed and your income was lower last year versus the year prior
Your tax return shows large amounts of unreimbursed employee expenses
You failed to return required paperwork to the lender within a reasonable time frame

Mortgage approvals are delicate and, despite an improving economy, lenders still operate with caution. Talk with your real estate agent and your loan officer and put together a game plan.

The best way to beat the mortgage system is to know the rules before you start to play.

Foreclosure Activity Slows For The First Time In Several Years

2010-05-13T06:08:00.001-07:00

The national foreclosure rate is finally falling.

According to foreclosure-tracking firm RealtyTrac.com, the number of foreclosure notices dropped 2 percent between April 2009 and April 2010.

2 percent may not seem like much, but it's the first time in the history of the RealtyTrac report that the annual foreclosure rate has dropped.

To be sure, foreclosure rates remain elevated -- more than 300,000 were reported last month, but default notices appear to be approaching a plateau.

The RealtyTrac report shows some other interesting statistics, too:

6 states accounted for more than half of April's bank repossessions nationwide
For the 40th month in a row, Nevada topped the nation's foreclosure rate
Foreclosure rates dropped in both California and Arizona, 2 foreclosure hot-spots through 2009

The good news for housing doesn't stop there. 9 of the top 10 leading metropolitan areas for foreclosure-related activity showed a drop in annual activity. Only Reno, Nevada showed an increase.

Buying distressed homes is big business, according to the National Association of Realtors®, accounting for 35 percent of all home resales with a typical discount ranging near 15 percent on value.

But with the discount comes some caution. You need to know how buying a foreclosed can be different from buying a non-foreclosed home.

For example, distressed properties are often sold as-is and may have defects that render them "un-lendable". Secondly, "quick closings" aren't usually possible with bank-owned homes -- you're often at the bank's schedule and mercy.

And, lastly, not all foreclosed homes are searchable online. You'll usually find more stock if you work with a real estate agent versus searching online.

The RealtyTrac foreclosure report is thorough and can help you gauge what's happening on a state-by-state level, and in the nation's largest metropolitan areas. Once you've done your research, talk to your real estate agent about what to do next.

There's still good deals in the foreclosure market — you just have to know where to find them.

Relocate America's Top 100 Places To Live (2010 Edition)

2010-05-12T06:51:00.001-07:00

Relocate America recently released its 2010 list of Top 100 Places To Live In America. The rankings are topped by some cities you may expect, and some you may not.

According to Relocate America, the rankings highlight communities "moving in the right direction", defined as having a combination of strong leadership, job opportunities, improving real estate markets, recreational options and a good quality of life.

It's not a bad formula and topping the list of Top 100 Places To Live In America is Huntsville, Alabama. Huntsville was chosen for its low levels of unemployment, stable housing stock, and low cost of living. Last year, Huntsville placed fifth on the Relocate America list.

The Top 10 cities in which to live, as selected by Relocate America are:

Huntsville, AL
Washington, DC
Austin, TX
San Diego, CA
San Antonio, TX
Tulsa, OK
Charlotte, NC
Raleigh, NC
Boulder, CO
Minneapolis, MN

View the complete Top 100 Places To Live In America 2010 list at the Relocate America website.

Relocate America's Top 100 Places To Live (2010 Edition)

2010-05-12T06:44:00.001-07:00

Relocate America recently released its 2010 list of Top 100 Places To Live In America. The rankings are topped by some cities you may expect, and some you may not.

The Top 10 cities in which to live, as selected by Relocate America are:

Huntsville, AL
Washington, DC
Austin, TX
San Diego, CA
San Antonio, TX
Tulsa, OK
Charlotte, NC
Raleigh, NC
Boulder, CO
Minneapolis, MN

View the complete Top 100 Places To Live In America 2010 list at the Relocate America website.

Shopping For Mortgage Rates Is Part Research Skills, Part Luck

2010-05-11T06:09:00.001-07:00

Shopping multiple lenders for a "good mortgage rate" can sometimes save you 1/8 percent on your rate and/or a few hundred dollars in fees. However, when it comes to getting the best mortgage rate, you're going to more than good research skills.

You're going to need some luck.

Mortgage rates for people in IN or anywhere else, for that matter, are unpredictable, ever-changing, and rarely change as expected.

For example, when the Federal Reserve left the mortgage market March 31, 2010, analysts said that mortgage rates would rise by a half-percent or more. It was practically stated as fact on TV. When April 1 came around, though, rates didn't rise.

Instead, a volcano erupted and mortgage rates dropped on safe haven buying.

Then, a week later, as the volcano ash cleared, mortgage rates were supposed to resume their rise. Only they didn't. Instead, a debt crisis emerged in the Eurozone and mortgage rates dropped.

Since March 31, conforming mortgage rates are lower by roughly 0.125 percent, according to Freddie Mac's weekly mortgage rate survey. At today's rates, the savings are roughly $20 per month per $200,000 borrowed -- or $100 per month based on their original, post-March 31 forecast.

It brings us to one of the most important axioms in rate shopping: You can't shop for good luck.

On some days, rates go higher
On some days, rates go lower
On some days, rates stay the same

Occasionally, there are days when rates do all three.

As a home buyer or would-be refinancer, what rate you get depends on at what time of day you do your shopping.

You can't predict what will happen next in mortgage markets -- even just an hour from now. Therefore, the smartest move, sometimes, is just lock your rate now. At least that way, you've got a guarantee.

Your Microwave Wastes $70 Per Year And Other Vampire Energy Facts

2010-05-10T06:14:00.001-07:00

Even when they're not "on", a multitude of everyday home appliances continue to draw power from the grid, raising home energy bills and increasing atmospheric emissions. These so-called "Energy Vampires" cost U.S. homeowners $4 billion, collectively, in 2005.

In 2010, that figure is likely higher.

In the video above, some of the more common Energy Vampires are highlighted. As an example of how costly standby power can be, researchers show that idle microwave ovens consume enough energy each day to pop an entire bag of microwave popcorn. Annually, the kind of energy consumption wastes close to $70 per household.

Other household Energy Vampires include:

Idle battery chargers
Computers in "standby" mode
Remote control sensors

Simply being aware of home energy-suckers is one easy way to reduce your electricity bill and do something good for the environment. The video shows you how you can both.

Markets Ignore The April Jobs Report And It's Good News For Mortgage Rates

2010-05-07T07:10:00.001-07:00

On the first Friday of every month, the U.S. government releases its Non-Farm Payrolls report.

More commonly called "the jobs report", Non-Farm Payrolls is a major market mover. The number of working Americans is directly tied to the health of the economy which, in turn, drives the stock and bond markets.

In general, when jobs numbers improve, it's good for stocks and bad for mortgage bonds. It follows, therefore, that conforming mortgage rates in IN rise because rates always move opposite of mortgage bond prices.

Conversely, when jobs numbers worsen, it tends to be bad for stocks and good for mortgage bonds. Mortgage rates fall.

Today, markets are behaving a bit differently.

Despite 290,000 jobs created in April 2010 -- nearly twice the expected amount -- and a 40 percent upward revision of March's numbers, mortgage rates are essentially unchanged.

In a normal environment, rates would be higher. Today is not normal.

Today is a departure because, for all of the jobs report's import to Wall Street, it's less important to markets than what's happening in Greece right now.

Greece is struggling to meet its debt obligations and its citizens are rioting.

Until a debt solution for Greece is made that sticks, unrest in the region will drive safe haven buying both domestically and abroad. U.S. mortgage bonds will gain on that movement because mortgage bonds are "safe", and mortgage rates will fall.

Indeed, this is exactly what's been happening since the start of April. Mortgage markets have been rallying for 5 weeks.

So, today's jobs news is terrific for the economy and mortgage rates should be rising because of it. But, they're not. Consider taking advantage -- lock in a rate.

1 In 8 Banks Tightened Prime Mortgage Standards Last Quarter

2010-05-06T06:08:00.001-07:00

The Federal Reserve says that financial markets "remain supportive of economic growth". Residential mortgage guidelines, however, continue to tighten.

If you've applied for a home loan recently, you probably felt it; extra scrutiny on income, assets and credit scores, among other things. The hard proof of the changes, however, can be found in the Federal Reserve's quarterly survey of its member banks.

Every 3 months, the Federal Reserve asks senior bank loan officers around the country whether their respective banks' "prime" residential mortgage guidelines tightened since the last survey.

For the period January-March 2010, 1 in 8 banks surveyed toughened their qualification standards.

Only 4% loosened them.

When we account for the Fed's survey in conjunction with new underwriting standards from Fannie Mae and FHA, it's clear that getting approved for a mortgage in 2010 is more difficult than at any time in recent memory.

Today's homeowners and home buyers in South Bend have taller hurdles to leap:

Minimum FICO scores are higher
Downpayment/equity requirements are larger
Debt-to-Income thresholds are smaller

In other words, mortgage rates may stay low throughout 2010, but that won't matter to homeowners failing to meet the new, minimum eligibility standards as set forth by the lenders.

If you're among the many people wondering if now is the right time to buy or refinance a home, remember that -- along with a probable increase in mortgage rates -- mortgage approvals are getting more scarce.

The best home price or mortgage rate in the world won't matter if you're ineligible for financing.

March Pending Home Sales Point To Stronger Spring Market

2010-05-05T05:59:00.001-07:00

The Pending Home Sales Index moved higher in March as home sales were spurred by low mortgage rates and an expiring tax credit.

A "pending home" is a property that is under contract to sell, but not yet closed.

March marks the second straight month in which the Pending Home Sales Index improved after a series of weak showings this past winter.

March showed a 5 percent increase over the month, but the Pending Home Sales Index is still off its October 2009's peak. October 2009 is a comparable period to March 2010 in that it marked the 1-month deadline before the home buyer tax credit's initial expiration date. The credit was later extended to April 2010, of course.

That said, March's surge in sales is being felt on the street.

Home buyers in South Bend no doubt noticed the change in activity. Around the country, anecdotally, multiple offer situations were more common last month and "right-priced" homes tended to go under contract quickly.

The increase in March's Pending Home Sales is diminishing the nation's home supply which, in turn, should cause prices to rise in most markets -- including Mishawaka.

Today's buyers should consider making an offer sooner rather than later. Looking at the data, it appears the best time to have found a "deal" on a home may have been in February.

March Madness...where did it come from?

2010-03-31T05:35:00.000-07:00

Have you ever wondered where the “March Madness” term for the NCAA Basketball Tournament came from? Amazingly enough, March Madness has its roots in the Illinois High School Association and in the words of a gifted writer by the name of H. V. Porter. Porter was an official with the IHSA and later a member of the Basketball Hall of Fame. He was the first person to use March Madness to describe a basketball tournament in an essay entitled March Madness in 1939 and he used it again in a poem in 1942 titled, Basketball Ides of March. This talented writer coined the term that would later be fought over in court battles to become the trademark of both the IHSA and NCAA Championship Tournaments.
The NCAA Men’s’ Division I Basketball Championship is a single elimination tournament held each spring during the month of March and into April. It features 64/65 college basketball teams that include both conference champions and at-large selections. The tournament is organized by the NCAA and was created in 1939 by the National Association of Basketball Coaches. The tournament was the brainchild of the Kansas Coach Phog Allen. The tournament is known as March Madness or the Big Dance and has become one of the nations’ most prominent sporting events. We will soon find out this year’s 2010 champions of the Big Dance as March Madness winds down to the Final Four weekend: Butler, Michigan St., West VA, and Duke. Who are you picking for this year’s winner? Email us your pick at: goldkey@centurylink.net.

Home Inspection Experience Case Study

2010-03-11T09:08:00.000-08:00

Hayley Boling gives her perspective on her home inspection experience with Jamie and Gold Key Home inspections, Inc.

If you are looking for a home inspector that will be your building consultant for life, visit our website: www.goldkeyinspect.com or give us a call: 1-877-GOLD-806 (1-877-465-3806).

2010 Sports Extravaganza

2010-02-06T19:25:00.000-08:00

Sports fans have a big treat in 2010: The Olympic Winter Games in Vancouver that run from February 12‐28, the FIFA World Cup in South Africa four months later, and tomorrow's Superbowl XLIV. It should be an exciting game: Colts verses Saints. We will see tomorrow who comes out on top! Check out http://www.nfl.com/superbowl/44 and http://bubble20snarkgroup.com/super-bowl-kickoff-time-2010/ for more information.
Going global with sports, we find that the Olympics feature 86 events spanning seven sports around Vancouver and at the Whistle ski area, a two‐hour drive north. According to the U.S. Olympic committee (USOC), ticket sales have been great, as you would expect with the games right across the U.S. and Canadian border. For tickets or for more information about the Winter Olympics, go to www.vancouver2010.com. World Cup Soccer is the second big event of 2010 at the FIFA World Cup in South Africa. Hundreds of soccer teams worldwide compete for an opportunity to play in the World Cup The 19 th edition of the World Cup kicks off in June 11 th in Johannesburg, South Africa. It will be winter there, and winters are generally mild, but temperatures can dip to about 28 degrees Fahrenheit at night. Players say they like the cool temperatures. Visit www.fifa.com/worldcup.

2010-02-04T16:40:00.000-08:00

February News of the month
The newsletter highlights issues that homeowners or renters are sometimes concerned about: Mold and relative humidity in a home. Other articles of interest span from heart-healthy news to the history of Valentine's Day. For all the sports fans, there is an article highlighting the double-header coming up in the sports arena: The Oympic Winter Games and the FIFA World Cup in South Africa. This month's recipe is a special version of hot wings and it is just in time for the Superbowl and other sporting events.

Hot Wings
Breading Chicken:
4 1/2 LB – 5 LB. Chicken Wings
2 C. Whole Wheat Flour
1 C. All Purpose Flour
2 1/2 tsp. salt
1 tsp. Paprika
1/4 tsp. Cayenne Pepper (Optional if you want the Hot spice in the breading as well as the sauce)

***In large mixing bowl mix flours, salt, paprika (and cayenne pepper together) and blend well. Cut chicken wings into drumettes and flappers. Wash and drain chicken. Coat chicken in flour mixture, refrigerate chicken wings for 90 minutes.When ready, deep fry chicken wings heat oil to 375. Place chicken pieces in hot oil, do not crowd. Fry chicken wings until golden brown, remove from oil and drain. When all wings have been fried, place in a large bowl. Add Hot Sauce mixture and mix completely. Use a fork or tongs to place chicken pieces on a serving platter. Serve immediately and with lots of paper towels.To save fat content, bake in oven @ 350 for 40 minutes and then cover with sauce.

Sauce:
1 1/2 C. butter (3 Sticks Butter)(softened)
1/2 C. + 2 Tbs. Tabasco Sauce
3 Tbsp. Brown Sugar
3/4 tsp. Paprika
3/4 tsp. Salt
1 Tbsp. Balsamic Vinegar
3/8 tsp. Cayenne Pepper
2 Tbs. Chili Sauce

***Mix all ingredients together. This will store well in the refrigerator for up to 2 weeks. Pour over top of baked/fried chicken and serve.

December Newsletter now available

2009-12-03T14:48:00.000-08:00

In this month's issue we are highlighting how to properly prepare your home for winter.

Clean and repair all downspouts and gutters
Seal gaps and cracks around the foundation
Add insulation
Fill all cracks and gaps in concrete driveway
Paint all deteriorated surfaces

Some other articles of interest are:

Safety news: heating safety this winter
Tip of the month: Septic systems
Recipe: Grandma's Cranberry Sauce
Creation Minute: Salt Sneezing Lizards?
Picture of the Month
Treasures from the Attic: Cool quotes
Word of the Month: affability

You can read this month's newsletter in it's entirety at http://www.goldkeyinspect.com/newsletter .

To learn more about GoldKey and its services, visit our website at www.goldkeyinspect.com .

Keeping your basement dry

2009-06-16T15:57:00.000-07:00

Keeping your basement dry is easier than you think

The types of foundations found in homes today are basements, crawlspaces, and slabs. The most common of these, at least in the local area, are basements. Basements have progressed from the days where it was simply a large dirt lined hole dug under a house to provide access to the mechanical parts of a home. They are used as recreation rooms, workshops, TV lounges, movie theatres, and primary living quarters. Regardless of the use, all homeowners want to have a dry basement. I have vivid childhood memories of coming home from vacations and finding several inches of water in the basement because the sump pump had malfunctioned. (Usually it was at that time that my father also malfunctioned-so to speak).

Most of us have had experiences with wet basements at one time or another. Moisture issues can be anything from a musty smell to running water. I inspected a house once with 5 sumps running continuously-and water was still seeping in through the basement floor. Thousands of dollars have been spent on “waterproofing systems”, deluxe sump pumps “with battery backup”, and moisture blocking paints. However, these techniques do not solve the basic issue of water entering the area in the first place. It is estimated that over 60% of basements nationwide have wetness issues below grade. Block foundations, as opposed to poured concrete, have an 80-90% chance of water problems in the first 20 years of existence.(1) These statistics are really not surprising when you consider that most basements are nothing more that a hole in the ground. If there is water anywhere, it will fill in these holes. However, before you get ready to scrap your basement remodeling plans, there are some simple measures you can take that will solve many of the causes of wet basements.

Begin the process of basement salvage by starting outside. Examine the ground adjacent to the foundation. It should slope away from the house at ½-1” per linear foot. For example, the ground 6 feet away from the house should be 3-6 inches lower than the soil level against the house. Improper grading combined with yard and roof run-off are the most frequent causes of moisture intrusion.

Adding or repaired gutters and downspouts is another crucial step in the battle against water. The gutter system plays an important role in diverting water away from the house. The downspouts should have extenders at the bottom that discharge rainwater at least 6 feet away from the foundation. A downspout that discharges directly at the foundation is a sure way to create water and foundation problems.

Another way to test the property drainage is to run water from a garden to hose into your underground drain pipes. This will help you determine if there are any blockages, breaks, or improper sloping. If underground tiles get clogged, water will often back up and be forced through the foundation wall or footers. Underground drain tiles should have an area where they discharge that can be clearly seen. Terminating the tiles underground and relying on slow diffusion into the ground is a bad idea.

Window wells are important for basement exits or light, but often provide a pathway for water directly into the basement windows. Be sure to keep the ground level at least 4 inches below
the top of the window well. If installed correctly, every window well should have a drain tile visible that will help keep the well from filling up with water. Make sure these drains are kept free of leaves or any other debris that could clog the drain. Installing plastic covers over the well will also help to keep water out.

If you have automatic sprinklers, adjust water times to water only when needed. Ensure that sprinklers do not spray against exterior walls. You should also check to see that none of the underground pipes are leaking and allowing large quantities of water to pool against the foundation walls.

Seal all cracks between concrete surfaces and the foundation, such as where driveways and sidewalks connect to the walls, with a flexible outdoor caulk. They should also slope away from the foundation.

Now that the outside has been conquered, you should focus on the inside. First seal any minor cracks in the foundation walls with a flexible caulk to prevent seepage. Any crack over ¼” will probably need professional help. It could indicate a large issue than water problems. These cracks can be filled with epoxy type filler installed by a waterproofing company.

If you unfortunate enough to have a dirt floor in the basement (or crawlspace), install plastic sheeting over it to help eliminate moisture and humidity emanating from the ground. Also, insulate all cold water pipes, well pressure tanks, and air conditioning ducts to prevent condensation. A dehumidifier can also be helpful if is it emptied consistently.

Finished kitchens and bathrooms in the basement should have exhaust vents extended to the exterior to lower the amount of moisture being injected into the basement.

If the tips offered do not solve the water issues in your basement, professional help is probably needed-and not only for the basement! Last resort solutions are usually effective and expensive. They generally require French or curtain drains which involve excavation and the installation of a waterproofing barrier. Unfortunately, these systems help control a large amount of water, but will not help to solve the humidity problems caused by moisture vapors that easily migrate through concrete.

If moisture laden basements concern you, it is a great idea to have any future home purchases inspected by a qualified home inspector. If you are buying a lake house with a crawlspace, it is imperative that you have it inspected. Lake House foundations are not always bad, but due to the surrounding environment, have an extremely high probability of some type of moisture damage. To read or discuss this topic, go to www.goldkeyinspect.com/blogspot.

1-information provide by ASHI (American Society of Home Inspectors)

Deck Safety 101

2009-05-13T17:02:00.000-07:00

Deck Safety 101

Decks are one of the most enjoyable outdoor arenas for parties, meals, family gatherings, and relaxation. Perhaps we enjoy our time outside more around here because days suitable for lounging around on the deck are fewer than in other regions of the country. Whatever the reason for enjoyment, decks are found on millions of home across the country. However, statistics show that decks are actually one of the most dangerous places in or around your home. Since 1999, more than 850 injuries and 20 deaths have resulted from decks collapsing.

Wooden decks have an average lifespan of 10-15 years. However, proper care and maintenance can extend that to 25-30 years. It is estimated by various housing study groups, that 50% of all decks in the United States are unsafe and need repairs ranging from minor adjustments to major reconstruction.

It is important to regularly inspect your deck. Of course you can always call a professional inspector to perform a complete inspection and make recommendations for improvement. If you want to do it yourself, here are a few guidelines: (Guidelines are from Simpson Strong Tie, Inc.)

1. Missing connections. Look at the fasteners on the deck. If there are only nails, you do not have proper support. The framing structure and connectors should provide a continuous load path. There should be joist hangers under every joist that is face nailed to a ledger board. Nails alone are not enough.

2. Loose connections. Weather, gravity, and use cause fasteners to loosen over time. Replace nail, screws, and brackets that are worn or damaged. Pay special attention to the areas that connect to the house and on railings.

3. Corrosion. Higher percentages of copper in treated lumber have led to increased fastener corrosion. Look for green, black, or rust colored corrosion on and around fasteners. If it is corroded, repairs should be made with compatible fasteners.

4. Rot. Wood rot is most prevalent around the base of posts, which tend to be very important in keeping the deck upright. If the base of a post starts to rot, it must be replaced. Another area is where the ledger board attached to the house. Improper flashings allow water to seep in and rot the ledger board, or the box sill on the house itself. This is where dangerous conditions can exists without obvious visual problems.

5. Cracks. Small drying cracks are OK. Large cracks, or a serious of bigger cracks, indicate problems and will contribute to the deck weakening. Replace small problem areas before major problems are created.

Decks are built so we can enjoy the outdoors, minus a few zillion mosquitoes, with family and friends. Please make deck safety a priority, and take the responsibility to ensure that it is safe. If you think it might be unsafe, please call for more information @ 260-463-6558, or go to our website at www.goldkeyinspect.com .

For deck framing and fastening guideline go to www.stongtie.com

Winter troubles

2009-02-06T12:16:00.000-08:00

Ice damming

Ice damming occurs frequently in the northern hemisphere during the winter months when ice and
snow combine to form a nasty little party on the roof of an unsuspecting house. While this,
fortunately, doesn’t happen on every roof, it does wreak havoc on a relatively high percentage of
homes.
It occurs when heat rises from the primary living area through the attic and melts the snow which
is innocently sitting on the roof. As the snow melts, it runs down the shingles. However, the
snow at the eaves, or bottom of the roof, is not subject to the same melting because it does not
have the same heat rising to melt it.
As a result, the melting snow runs to the edge of the roof, cools down and refreezes, and
combines with the snow at the edge of the roof. This forms an icy barrier that eliminates the
chance for any water to run off the roof.
This snow/ice barrier forms a nasty but effective dam that forces further melting snow to stop
and back up under the shingles. Asphalt shingles are not designed to seal the water out of a
house. They are designed to shed water off the roof. When the ice dam forces water to back up,
the shingles are simply not engineered to stop it from entering the house’s envelope.
Houses with low slope roofs are more susceptible to this phenomenon due to the lower rate of
runoff.
They also typically have more overhang than steep roofs and provide more of a surface
for ice dams.
There are some things homeowners can do to help reduce the possibility of this happening. The
best thing is to make sure the attic has proper insulation to reduce the possibility of heat melting
the snow on the roof. In some jurisdictions, new building codes call for an insulating value of R50
in attics, which is about 15 inches of blown cellulose insulation.
It is also helpful to ensure the attic has proper ventilation. Adequate soffit and ridge vents help to
keep the attic dry in the event that some water does leak in under the shingles.
Another effective step is to install ice and water shield on the roof sheathing for the first 35
feet.
This is a highly durable material that sticks to the sheathing under the shingles and prevents
stopped up water from going any further into the building envelope. It is thicker and tougher than
simple tar paper. This is easiest to put on when installing a new roof. However, if the current
roof has severe problems with water seepage and the roof sheathing is rotted, this may be a
necessary step.
Attempts to put heat tapes on the bottom part of the roof areas to prevent this ice buildup are well
intentioned, but sometimes cause more problems than they solve.