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Don't Skip Home Inspections
With so many vacant and foreclosed properties on the market, Rhode Island Housing is reminding homebuyers of the importance of insisting upon a home inspection.
“The temptation of getting a great deal has many buyers jumping at the opportunity to purchase ‘as is’ homes – and to do so without a complete home inspection. Yet, home inspections are critical on foreclosed and vacant properties,” warns Richard Godfrey, executive director of Rhode Island Housing. “It is important to remember that most of the more serious and expensive problems cannot be seen with a ‘visual’ inspection or an appraisal.”
Godfrey says that skipping the inspection can lead to a new wave of buyers who are stuck in homes they cannot afford to fix.
“Then the houses end up back in foreclosure – a continuation of the current crisis. While we encourage people to take advantage of the real estate deals that are available right now, we also want to underscore the need now, more than ever, to buy smart,” he said.
“Our loan center and Help Center have been receiving calls from many homebuyers who decided to forego a home inspection, only to find out that the home has no hot water or heat or needs a new roof,” added Cathleen Paniccia, director of homeownership. “Some customers are being sent to Rhode Island Housing by their lenders in the hopes of getting another loan to fix the problem after purchasing their home, however it is not always possible. We are working with them to explore options to try to save the home. This is definitely a situation you want to avoid if possible.”
In response to this concern, Rhode Island Housing has announced a loan package that incorporates the funds to purchase and repair the home, in one low, fixed-rate mortgage. Rhode Island Housing encourages all buyers to request a full home inspection and requires one on all vacant or foreclosed properties. The new product, called FirstHomes100 , provides all the benefits of FirstHomes100 mortgages – including 100 percent financing – plus the money needed to complete essential repairs and upgrades, all together in one fixed, 30-year loan. Rhode Island Housing services the loan and provides free counseling, education and support for the life of the loan.
“Buying smart is about looking at all the factors – know what you are buying and know what you can safely afford,” adds Godfrey. “Yes, there are a lot of bargain-priced homes out there and now could be an ideal time for you to buy but you want to do everything in your power to avoid unpleasant and costly surprises.”
Rhode Island Housing has also just released a public service campaign encouraging homebuyers to visit their Web site at www.rhodeislandhousing.org for a list of “100 Things To Know Before You Buy a Home.”
For more information on FirstHomes100 and 100 mortgages, call 401-457-1234 or visit www.rhodeislandhousing.org.
May 1, 2009 Warwick Beacon