7 Commandments of Buying a Home – As Told By Memes

7 Commandments of Buying a Home – As Told By Memes

We came across some exciting tips on how to ensure you have a smooth home buying process, we thought are worth sharing. We summarized them to just 7 commandments to bring context back home. Here is a quick read;

According to the article by Fairway, make sure to follow these 7 commandments of buying a home.

Here is a breakdown:

Commandment 1: Thou shalt not change jobs, become self-employed, or quit your job.

Mortgage lenders look for income stability. They want to know that if they approve you for a home loan, you’ll have the ability to meet your mortgage payments. Changing jobs during your mortgage application stage shows instability and can be a red flag for your lender. It leads to questions about why, could it happen again, and whether your new income will be adequate to enable you to meet your financial obligations.

Commandment 2: Thou shalt not use credit cards excessively or let current accounts fall behind.

Credit cards are part of the debt-to-income ratio that mortgage lenders use to determine the amount of home loan you qualify for. The more debt you have (compared to income), generally means the lower mortgage amount you may qualify for. The lower your long-term debt is, the more confidence underwriters have in your ability to repay, and you may qualify for a higher loan amount.

To ensure you maintain a good ratio we suggest holding off on large purchases especially using your credit card, such as buying furniture for your new home, until after your home loan has closed.

Commandment 3: Thou shalt not buy a car, truck, or van (or you may be living in it!)

As mentioned above, hold off on large purchases until after your home loan closes. Mortgage lenders want to know that you’ll be able to meet both the short (closing costs) and long term financial obligations of your home loan. This is not the time to get an upgrade on your car!

Commandment 4: Thou shalt not spend money you have set aside for closing.

If you’ve put away some money towards closing costs, it might be very tempting to dip into it now and then. Please Don’t! Give yourself the peace of mind of knowing the money you need to close on your home loan will be there when you need it. Trust us, you’ll be happier and less stressed when you exercise this kind of self-control.

Commandment 5: Thou shalt not omit debts or liabilities from your loan application.

Always be upfront about your debts and financial liabilities. Either way, technology makes it pretty easy for mortgage lenders to get the full picture of your finances, whether you disclose everything or not. They will have more confidence in you as a potential borrower if you’re upfront about debt and financial liabilities.

Commandment 6: Thou shalt not change bank accounts.

Qualifying for a home loan generally includes providing your lender with copies of your bank accounts for a period of time (such as the past two years). Avoid changing banks during the home loan process to avoid giving underwriters cause for concern.

Commandment 7: Thou shalt not co-sign a loan for anyone.

It might not occur to you that co-signing a loan or lease for someone reflects on your ability to obtain a mortgage – but it does! You may just be trying to be a good friend by co-signing a loan for your buddy, but to underwriters, this shows up as a financial liability or debt as though it belonged to you. Don’t co-sign onto financial obligations during the home buying process.

Source: https://forneretteteam.com/commandments-buying-home-memes

What are your thoughts on these shall nots? Are you a victim of any of these commandments? Share with us your experience below.

Advantages and Disadvantages of Solar Water heating panels

Advantages and Disadvantages of Solar Water heating panels

Heating water can be a very costly affair especially if you have a large family, as it requires a huge amount of energy. Research shows that 18% of domestic energy is used to heat water. In most homes, this energy is generated through gas and oil. Most modern domestic boilers will run on gas and heat water when required. But the majority of people use electricity to heat water, which is the most expensive way to heat water.

We can all agree, life would be pretty miserable without hot water. It sucks to bathe with cold water especially during the cold season. We can try and save energy by implementing some lifestyle changes to use less hot water (for example, running less full baths, using thermostats on our heating system more efficiently), but we all want to live our best life and hot water on tap is top on the list.

Solar water heating systems provide an affordable option to heat water for domestic use. How they work is that the sun’s energy is used to heat water which is stored in a hot water tank and drawn on when required. During the cold season, there is an immersion heater or additional boiler for back-up which can heat the water to the temperature. It can also provide additional water during the hot season.

So, what are the advantages and disadvantages of having a solar water heater in your home? 

Advantages of Solar Water Heating

  • Zero Cost – Ideally, a solar panel uses energy from the sun. In essence, this means that you won’t be paying a cent to use power. You will be enjoying free energy! even in cloudy weather.
  • Efficiency – One of the primary reasons solar panels far outweigh any other form of energy when it comes to heating water is the efficiency they bring forth. More specifically, solar panels convert approximately 80% radiation into heat energy.
  • You save money on fuel bills.
  • Safe for the Environment – The world is going green, and there is no greener energy than the one from solar panels. It has zero emissions and a lower carbon footprint. The solar panels will lower your carbon footprint making it a good way to protect the environment.

Disadvantages of Solar Water Heating

  • Annual maintenance is recommended. This is because there are a few parts to the system like the pump and antifreeze which need to be checked to ensure that they are performing optimally. Remember, failure to carry out maintenance procedures on your solar panels may lead to a breakdown of your entire water heating system.

Homebuyers enjoy good benefits when they choose homes with pre-installed solar water heating systems. So, we recommend adding solar water heating on your must-have list when hunting for a home. 

At Nakuru Meadows, each home comes with a solar water heating system already installed. Residents enjoy hot baths while saving money. You can too, by taking advantage of our discount prices today!

Learn about our current prices and offers:

To visit please contact us at 0708 822 583 or 0715 856 848. You can also email us at sale@nakurumeadows.co.ke

9 Red flags to watch out for when buying a Home

9 Red flags to watch out for when buying a Home

During an open house, the main goal for many prospective buyers is usually to try and get a sense of how well a house will fit their needs. What they often forget to check is the defects in a house. Sometimes due to excitement or lack of expertise they may miss them. The seller may not, however, be aware of all the defects, and some sellers may intentionally omit problems, hoping you won’t notice them. Therefore, avoid unexpected repair costs by learning about some common red flags that should make you think twice before you buy.

Here are the top red flags to look for when buying a home?

1. Foundation Cracks

When looking at homes, it’s important to be aware of the foundation.  Minor cracking can signal settling in the home, however, large cracks can be a sign of structural problems within the foundation.

If a home doesn’t have a basement where you can look at the foundation, you can tell a home probably has structural problems by looking at the door frames throughout the home.  If the door frames seem not to be square or the doors seem to have difficulty closing, it’s possible there could be some problems with the structure of the home.

The best way to determine whether a home has a foundation or structural problems is by hiring a structural engineer to conduct an inspection on the home.  There are many home inspectors who can determine whether a home seems to be experiencing some problems, however, it’s unlikely they will be 100% certain whether there are problems or not.

2. Moldy Smell

A moldy smell is not only unpleasant but it may also indicate a problem with the house. It may also pose a health hazard contributing to respiratory symptoms, headaches, and other illnesses, and. If you smell mold, check beneath sinks, around windows for leaks.

3. Active Insect Infestations

The presence of live termites is also alarming as they may cause so much damage to your home. One indication is small piles of tiny brown droppings on a floor near a wall. Another way to know if a house is infested especially with termites is checking for a hollow sound when you knock on a wood surface and the presence of mud tubes on a foundation since they are known to construct tiny tunnels of mud along foundations and walls to protect them from sunlight as they travel back and forth between the wood they’re munching and their below-ground nests.

4. Water Stains

Water and construction materials don’t mix. Water trickling from a leaky roof or window can over time rot away structural wood members. If water stains are yellowish or brownish, they may be evidence of a plumbing problem on an upper floor. Until you know where a leak is coming from and how much damage it’s caused, don’t make an offer.

If a seller has not attempted to cover up stains on a wall or ceiling with paint, this should still be viewed as a red flag when buying a home. If there are stains on a wall or ceiling in the home, first find out what has caused these stains. It’s possible the stains are from a prior problem that has been corrected.  Not investigating a stain on a wall or ceiling can cost a buyer thousands of dollars in repairs in the future.

5. Saggy Ceiling

No matter how lovely and cozy the house, if the ceiling sags, it’s a red flag. A saggy ceiling—even if the sag is only slight—can be the result of roof leaks, a structural movement that’s causing the ceiling drywall to work loose from the ceiling joists, or an insect infestation that’s eating away at the joists. Whatever the cause, fixing it could be expensive.

6. Fresh Paint

Not all fresh paint indicates a problem. In fact, the first thing sellers will do before adding a listing is to add a new coat of paint on the walls. However, when it seems out of place, such as when only one wall in a room has been painted it indicates that the seller is trying to cover up a defect on the wall, such as a water stain.

7. Strong Air Fresheners

If you walk into a home and you are immediately hit by the strong scent of air or essential oil diffusers in every room, this could indicate that the homeowner is trying to cloak the smell of something else, such as mold smells. If you’re interested in the house, visit again later and request the seller not to use air freshener before you arrive.

When looking for a home, pleasant odors and foul odors can both be red flags.

8. Standing Water in the Yard

Always drive by the house you like after a rain. If you find puddles of standing water, the yard may have a drainage problem. Puddles near the foundation are the most concerning because water that drains along a foundation wall can cause structural problems in future.

9. Electrical System Issues

Depending on the age of a home, it’s possible there are issues with the electrical systems. Inadequate or electrical issues need to be viewed as a red flag for a buyer. 

As a homebuyer, you may know very little about the electric system but there are simple things that can tell you if something is wrong or not. Such as turning on light switches, checking for flickering lights, and checking outlets are all good ways to tell if the electrical seems to be working properly.  Most home inspectors will inspect the electrical panel and test the outlets to ensure the electrical systems are not a safety concern.

Two of the most common home inspection findings are issues with the electrical raiser cable as well as improper wiring throughout a home.

Final Thought

Buying a home is a huge event in anyone’s life, whether it’s a first time home buyer or an experienced home buyer.  It’s critical that when buying a home, buyers are on the lookout for these red flags.

While many of these red flags may not be found while viewing a home, many of these red flags are likely to be found during a home inspection, which is why it’s extremely important to have a home inspection when buying a home.

6 TIPS FOR SAVING MONEY WHILE MOVING HOMES

6 TIPS FOR SAVING MONEY WHILE MOVING HOMES

Moving into a new home can be costly, therefore you would want to save as much as you can.

Here a few tips on how to save some money:

1. Pack your stuff.

Moving companies charge for both the packing materials and labor. Save some money by packing up everything yourself. Just make sure you pack everything properly so that things don’t get broken because the moving company won’t be responsible for your mistakes. If you need help call a friend you can count on, catch up with a glass of wine, after the job is done, and have a nice talk with them. It will be time well spent especially if you won’t see them often anymore.

2. Ask for help from your friends with trucks or vans.

Check within your circles for friends with personal trucks or vans and ask if they can help you move. This will surely save you some good money. Still, it would be very kind of you to offer to pay for gas and a meal or two as appreciation for their help.

3. Get rid of useless stuff.

Of course, it’s a no-brainer, that most of us tend to be hoarders and collect lots of stuff, and we often don’t even realize how much useless things we’ve managed to collect or hold on to. As you pack, put away anything that you don’t want or don’t use regularly. Remember the less you have to pack, the less money you have to spend on packing materials such as bubble wrap. It would also be a good initiative to donate some of those things to more deserving people.

4. Reuse things to pack.

When moving remember you will need places to pack all your items into to keep them safe and organized. Collect as many carton boxes, bubble wrap, or old newspapers as you can. Borrow some large carton boxes from work or your local wholesale shops. They make wonderful packing boxes because of their size and when you label the items you pack in them it will make your unpacking process a whole lot easier.

5. Cancel your subscription bills in advance.

There is no doubt moving is a time-consuming and stressful experience for most of us. It’s possible while you’ve been busy planning and packing things you haven’t thought about your billing cycle. Avoid paying an extra month of subscription bills by checking if they fall in line with your moving date, if not cut them off in advance. Most households now have internet connection in their homes, if you are moving far perhaps to a different town, your internet provider may not be in that town, therefore you may need to cut them off in advance and avoid losing money through penalties or automatic subscriptions.

6. Try to exercise.

Although this one will not save you money, it will help you get in shape body and spirit for moving. When planning a move, exercising is one of the last things you will want to do, but it’s a good idea to make time for it. Exercising will boost your mood, reduce stress and anxiety, and help you stay stress-free during your move.

Although moving into a new home or neighborhood can be tough, these tips combined with a reputable estate and friendly community like the one at Nakuru Meadows can relieve stress and help you settle in easily.

In case you are looking to move to Nakuru, we have a beautiful gated community of 70 homes for rent and sale. They consist of two-story 3 bedroom Maisonettes and 4 bedroom Townhouses. They are not only spacious enough for a large family but also packed with amazing amenities like solar water heating, private gardens, ready internet connection, 24/7 security guarding, children and adult playgrounds and so much more.

Come visit us, we bet you will fall in love with these magnificent homes. Contact us at 0708 822 583 or 0715 856 848.

You can also email us at sale@nakurumeadows.co.ke to schedule a visit.  

HOME BUYING MISTAKES YOU SHOULD AVOID

HOME BUYING MISTAKES YOU SHOULD AVOID

You’re thinking of buying a home! Yaaay! It must be an exciting feeling. But before you do, you need to beware of a few home-buying mistakes people make and avoid them.

Buying a home is one of the largest purchases you’ll ever make, and doing it wrong will cripple you with stress and rob you of your other financial goals. So protect yourself by knowing what not to do.

Here’s a list of typical home-buying mistakes and how to avoid them.

Mistake 1: Buying a House You Can’t Afford

This seems like an obvious red-flag, but you’d be surprised how many people make this mistake. They say, “Sure, this 4 bedroom Townhouse costs more than I planned to spend. But it’s so spacious and perfect for my large family, unlike the 3-bed Maisonette! I’ll just take out a bigger mortgage.” That’s a bad idea. Taking on more mortgage than you can afford is a recipe for disaster. Doing this will mean sacrificing money that would have gone to other financial goals and may leave you struggling just to pay simple bills.

So before you go looking for your dream home, figure out how much house you can afford. Use a mortgage calculator to enter your down payment amount and try out different home prices within your budget.

Mistake 2: Buying a House When You Have Debt

“Trying to buy a house when you’re in debt is like trying to run a marathon with a bunch of weights chained to your legs,”- Dave Ramsey. You should never pile a mortgage to other debts like car loans, credit cards, or student loans. These debts are already weighing down your monthly budget that would have otherwise been spent on saving for this 3 bedroom Maisonette in Nakuru.

Mistake 3: Not Saving Enough for a Down Payment

If you’re getting a mortgage, one of the worst home-buying mistakes you can make is not saving enough for a down payment. Any amount less than 10% is way too low! While some banks are making it easier to buy a house with little to nothing down. The problem is that you’ll be charged so much extra in interest and fees that you’ll feel like you’ll never pay off your home.

We recommend saving at least 20% of the total house price to avoid paying PMI—a type of insurance that protects your lender from losing money in case you can’t make your mortgage payments. If you are struggling to save check out a few tips we shared on Saving for a Down Payment.

Mistake 4: Forgetting About Closing Costs and Moving Expenses

Another common mistake is to focus so much on saving for the down payment that you forget about other home-buying expenses such as closing costs and moving expenses. Closing costs, generally include the appraisal fee, home inspection fee, legal fees, etc. To fully understand what closing costs are and why you should budget for them check out this article we wrote on hidden home-buying costs to expect.

Mistake 5: Not Getting Preapproved

Imagine, you’ve finally found the perfect house for your family, that actually fits your budget! Your heart races with excitement as you make an offer. Too late! The seller goes with another buyer. Why? Because the other buyer included a mortgage preapproval letter with their offer. Getting preapproved, not just prequalified gives you an advantage over other buyers competing for the same house.

A mortgage preapproval letter not only tells the seller you’re a serious buyer, but it also says choosing you means the paperwork process will move faster.

Mistake 6: Taking on Credit While Closing

While taking a mortgage with debt is a terrible decision, taking on new debt while you’re buying a house is no different! This actually creates a delay in the closing process. If you borrow money, it changes your credit score and it’ll send your mortgage approval back to the drawing board.

Save yourself the trouble and maintain your finances from preapproval to closing. Don’t do anything that could change your credit history. And while you’re at it, make sure you’re up-front with your lender about all your payment obligations. Otherwise, these issues could change your debt-to-income ratio, which means it will take much longer for you to buy a house.

Mistake 7: Focusing on Style Over Structure

Let’s face it, you will never find a home that ticks off everything on your list. Some things can be easily amended to suit your personal style. Therefore, do not pass by a good home over minor things.

Instead of worrying about appearances, pay attention to things that aren’t so easy to fix—like structure. Does the floor plan fit your family? How old is the roof? Are there any problems with the foundation? Are there any signs of issues with the electrical or plumbing systems?

Mistake 8: Buying Without a Home Inspection

One way to focus on the structure of a home rather than its style is through a home inspection. While a professional inspection will cost you some extra money it’s definitely money well-spent if it helps you to avoid potential disasters after closing. An inspection includes a thorough review of the home’s structural elements and electrical, plumbing, heating, and cooling systems. The inspector’s report gives you the information you need to decide to buy the home as-is or to negotiate with the seller to fix the problems or reduce the price.

Mistake 9: Not Walking Away From a Bad Deal

The home-buying process has many moving parts, and each one has the potential to turn a sweet deal into a disaster. For example, your home inspection could turn up problems that should reduce the seller’s asking price. If the seller isn’t willing to negotiate, you have to decide whether you want to live with (and pay for) those problems or back out of buying the home altogether.

That can be a tough choice if you’ve already decided this is the one and only perfect home for you. Don’t wind up regretting the choice to overpay for a house with problems. Maintain your power to walk away.

 

There are a ton of home-buying mistakes to watch out for. And each mistake could cost you thousands of money—or thousands of headaches. Hopefully, by reading this blog you have learned what to avoid in your home purchase.

If you are looking for a home outside Nairobi or the city you live in, consider these beautiful homes in Nakuru for sale and rent. Nakuru Meadows is a gated community just 15 mins away from Nakuru town. It has a total of 70 homes that include Maisonettes, townhouses, and semi-detached townhouses. Living in Nakuru will be a mix of modern and country, a harmonized blend you wouldn’t want to miss on.

To visit please contact us at 0708 822 583 or 0715 856 848. You can also email us at sale@nakurumeadows.co.ke

The Hidden Costs of Buying a Home

The Hidden Costs of Buying a Home

There are several additional costs associated with buying a home that many people aren’t aware of. These are often called closing costs. Many first-time homebuyers are surprised to find out how much they have to spend in addition to their down payment.

It’s best to know all these potential costs so you won’t be caught off guard when you’re about to close. In some cases, you may be able to get your broker or lender to waive some of the expenses described below.

Stamp Duty.

Stamp duty is an amount of money imposed on leases, transfer of properties, and securities. It is basically tax which is applied on property documents when you’re either buying or selling a house.

The amount of stamp duty paid is dependent on the location and price of the house. The more the property is worth, the higher you pay. For the transfer of immovable property in urban areas, the stamp duty rate is 4%.

Legal Fees.

Land buying is not a process that you can do on your own, so it is advisable to engage a lawyer who will guide you, and even carry out some tasks on your behalf like carrying out background checks and searches which are meant to confirm that indeed the land that you intend to buy actually does exist.

Valuation Fees.

Valuation is the practice of analyzing real properties developing an opinion on their value using tested and proven scientific process

A valuation is an assessment of what your home is worth, calculated by a professional valuer. A valuation report is typically required whenever a property is bought, sold or refinanced. The valuation fee is paid to cover the cost of preparing a valuation report.

Registration & Transfer Fees.

A fee is charged for Consent to Transfer from commissioner of lands and for registration of transfers.

Appraisal Fees.

An appraisal fee is a payment made to someone to evaluate how much a home is worth. It is essentially a fee to estimate the value of a property.

An appraisal is also usually needed so that your lender can justify the money it’s lending you for your property

Home inspection fee.

A home inspection is a wise investment. The cost of getting one done could be small compared to potential repair costs after the sale is closed. The price of a home inspection will vary depending on the size of the house, and some lenders will require one before they issue a mortgage.

When you’re about to make a purchase, a home inspector can help uncover any issues with the property. This can allow you to negotiate with the seller if there are problems found. Some sellers may already have a home inspection done ahead of time to save potential buyers from having to hire their own inspectors.

A home inspector will go through the home to see if there are any problems. They’ll check the plumbing, electrical, heating, and air conditioning, windows, walls, floors, ceilings, and other parts of the home to make sure everything is in good condition. They’ll also check out the exterior if you’re buying a house.

Moving costs.

The cost of moving can vary. If you rent a truck, get free boxes from work, pack everything yourself and have a few friends help out, the costs will be lower. Hiring a moving company will cost more, depending on the level of service you want. You could have them pack and move everything or just move your belongings.

Other costs.

Many other costs may apply to your situation, such as electricity meter connection costs, water meter connection costs, purchaser’s share of reversionary transfer, cost of purchase of share in the management company, advance service charge which ranges from 3-6 months plus one (1) month’s service charge.

×

Powered by WhatsApp Chat

× Hello, how can I help you?