Buyer FAQs

Sonotube in floor duct systems

September 14, 2011 by Michael Dunn

Sonotube is a cellulose/cardboard based material with a mylar coating which was used in many floor duct systems throughout the Albuquerque market. In a perfect installation, Sonotube is incased in concrete when the slab is poured. However this type of product has been susceptible to damage through water infiltration likely due to inadequate drainage conditions, overwatering of irrigation and evaporative cooler operation and leaks) and installation problems as well. Furthermore, due to its cellulose make-up, this product has also been prone to damage from termites.

Since the majority of the ducting system is not accessible or visible, and because damage to the in-floor ducting system can in some cases be an expensive repair, having the ducts scoped/inspected by a qualified professional with a fiber-optic camera is always advised

***Obviously the picture is of a toilet paper roll and this is because I like to think of sonotube ducting as a bigger thicker toilet paper roll lined on the inside with aluminum foil.

LTV & DTI

August 25, 2011 by Michael Dunn

I often get the question of what DTI and LTV are so here it is:

DTI– means Debt to Income and is used by lenders to determine whether you make enough money to be able to make your mortgage and other debt obligations on a monthly basis. A lot of details go into the calculations of debt to income. Debt is defined as any revolving and installment debt you have as well as any other obligations you may be required to pay on a monthly basis. Things like utilities and insurance payments for cars or life insurance are not counted as monthly debt. Calculating income can be tricky when income comes from being self employed or commission, or from part-time income.

LTV– stands for Loan to Value and is used by a lender to determine the equity in a property. On a purchase, the value is always the sales price, unless the appraisal comes in lower than the value of the accepted contract. On a refinance, the appraisal determines the market value of a home and then the current balance on the mortgage loan is divided by the value to determine how much equity is in the home. Whether you buy or sell, the loan to value is used to determine what type of loan programs are available for you.

Lead Based Painted Marked “yes”

August 22, 2011 by Michael Dunn

There is a category on the MLS printout that says “Lead Based Paint” and it either says yes or no. This is not a question as to if the home has lead based paint or not. It is a question as to if the home is subject to Lead Based Paint Disclosure or not. Homes built prior to 1978 are subject to the lead based paint disclosure from the seller disclosing if the seller has any knowledge of lead based paint hazards in the home or not. Just because “yes” is marked does not mean that there is lead based paint in the home it just means that the home was built prior to 1978 and is subject to the seller disclosing. Lead paint inspections are always encourage. You can goo to EPA Lead Paint for more info or contact me with any questions.

What is PMI??

August 13, 2011 by Michael Dunn

PMI is private mortgage insurance and all loans that don’t have at least 20% down are required to carry PMI. PMI is insurance that a lender puts in place to reduce the risk of the loan going into foreclosure. There is a monthly premium that is paid just like your homeowners insurance. The good news is that PMI allows many borrowers to qualify for a loan when they don’t have 20% to put down. In today’s economy it is hard to save that much money for many people. Each loan type, FHA, conventional and VA have some type of fee that is used to help lenders lend money without too much risk. The good news is that now PMI may be able to be deducted on your income taxes. Talk to a tax preparation specialist to find out if your PMI is deductible and stay tuned to this station for more information on loan types. Stay tuned to this station for more information on the best programs to use to purchase a home.

Difference between a full home inspection and a mechanical inspection

August 12, 2011 by Michael Dunn

As a home inspector of 16 years, one of the most frequently asked questions I get is “What is the difference between a Full Home Inspection and a Mechanical Inspection?”

Simply stated, a Full Home Inspection encompasses a visual examination of the structure including, but not limited to, the exterior cladding/siding, grading around the dwelling, roof covering, windows and doors, walls and ceilings, crawl spaces/attics and garages. Also included in the Full Home Inspection is an inspection of the mechanical systems including the plumbing, electrical systems, heating/cooling systems, built-in appliances and fireplaces as well.

In contrast, a Mechanical (also referred to as a Warranty Inspection) only covers the basic mechanical systems including the plumbing and electrical systems, heating and cooling systems, built-in appliances and roof covering.

In most cases, the best value for the client is a Full Home Inspection. This type of inspection truly does provide the most amount of information to a perspective buyer and allows them to make an informed and educated decision regarding the homes’ purchase.

Joseph Lebron

General Inspectors

505.261.0351 call/text

generalinspectors@yahoo.com

2 things I hate about being a Realtor

July 30, 2011 by Michael Dunn

There are only 2 things I really don’t like about being a Realtor.

1. Fumbling around with all the keys! Does anyone else get annoyed when there are numerous keys, darn things don’t work correctly and who knows what works what. Then to top it off you have your own keys in your hand, your lock box key, probably a cell phone and the mls sheets fumbling around. Maybe I just need a purse.

I was showing homes yesterday and ran across this house that had the keys color coded. That made my day!

2. Can anyone guess what the 2nd thing is I don’t like about being a realtor? 🙂