If you apply for a loan to buy a house, the lender is going to decide whether you are a good or poor credit risk based on your credit report. If the report says that you have a lot of debt, or you don't pay your bills on time, the lender may adjust your interest rate accordingly – or deny you the loan altogether. Thus, a good credit report can be as helpful to the home-buying process as an InterNACHI inspection, so it’s best if you understand how these reports work.

• Where do credit reports come from?
  
  A company that gathers and sells credit information is called a credit bureau. There are more than 1,000 local and regional credit bureaus countrywide that gather information about your credit habits directly from your creditors. These smaller bureaus transfer their data to three large, national credit bureaus: Equifax, Experian and TransUnion.
  
  
  
• Who may want to see your credit report?
  
  Those interested in your credit report include:
  
  • government agencies reviewing your financial status for government benefits; 
  • insurers, while they consider you for an insurance policy;
  • anyone with a legitimate business need for the information, such as a potential landlord;
  • creditors who are considering granting or have granted you credit; and
  • employers considering you for employment, promotion or reassignment (although some states, including Colorado, have introduced legislation to prohibit this practice).
    

Court orders or subpoenas may be filed to gain access to a credit report. Any third party may receive your credit report if you request this in writing.

• What type of information is contained in a credit report?
  
  
  • personal identifying information, including your full name, any known aliases, current and previous addresses, Social Security number, birth date, telephone number, current and previous employers, and, if applicable, similar information about your spouse;
  • credit history, which includes your bill-paying history with banks, utilities, retail stores, finance companies, mortgage companies, and anyone else who has granted you credit. Specifically included is information about when you opened each account, the account type, how much credit was extended, your monthly payment, payment patterns, and missed payments;
  • public records, which may indicate your credit-worthiness, such as tax liens, bankruptcies and court judgments;
  • credit report inquiries, which is a list of all creditors who have requested a copy of your credit report; and
  • dispute statements, which are any statements you've made disputing information on the report.

Note that credit reports don’t include bank account balances, race, religion, health status or history, driving record, income, or criminal record.

• What in the report will make you appear to be a poor credit risk?
  
  
  • maxed-out credit lines. These look bad because they indicate that you may be financially strapped;
  • high debt-to-income ratio. If your credit card debt is greater than 20% of your income, it might scare the prospective lender;
  • missed payments. For obvious reasons, your payment history is a major consideration when you are seeking a loan; and 
  • bankruptcy. Unlike all other credit information, which reaches back seven years, bankruptcies stay on your report for 10 years.
• Might the report contain inaccurate information?
  
  Typos, out-of-date information, and even mistaken identity can crop up on your credit report just as easily as a misspelled address on your mail. Credit report errors can be very serious, since they may unfairly jeopardize your chances of being approved for a loan for a house or another important expense. If you believe you’ve found an error, you should contact the credit bureau immediately, and they will have up to 45 days to fix the error.
  
  
• How do you obtain a copy of your credit report?
  
  Legally, you are entitled to receive one free credit report every 12 months from each of the three nationwide consumer credit-reporting companies. They will need basic personal information in order to verify your identity. Beware of predatory companies -- many of them operated by the major credit bureaus themselves – that charge service fees for credit reports.
  
  
• How is a credit score different from a credit report?
  
  The credit score formula was developed by Fair, Isaac and Company (FICO) in order to easily represent all of the information in your credit report in a single number. This score, which is not included in the credit report, allows lenders to predict the likelihood that you will pay back the loan and make timely payments. FICO’s credit score ranges from 300 to 850, and is calculated using the following formula:
  
  
  • payment history = 35%;
  • debt ratio = 30%;
  • length of credit history = 15%;
  • types of credit = 10%; and 
  • number of credit inquiries = 10%.

Tips for Improving Your Credit Report

• Close the accounts you don't use, as they indicate to a potential lender that you could easily put yourself into financial danger with so much readily available credit. Do not merely destroy the credit card; call or write the card company to cancel the account.
• Don’t close out your oldest card, as it has the longest credit history.
• Get a copy of your report before you apply for a loan to avoid any unwelcome surprises.
• Always make at least the minimum payment each month, or you’ll be haunted by red flags for seven years.
• Reduce your debt-to-income ratio and you'll be able to get better rates on the loans you seek.
• You can move some of the debt from a maxed-out card to other cards, if you have them.

In summary, credit reports contain information that can make or break your chances of being approved for a home loan.

by Nick Gromicko, CMI®

​Manufactured homes no longer have to be the simple, rectangular, boxy trailer homes of the past. Depending on the size of your home site, you can choose from single-section or multi-section designs. Homes range in size from 900 to 2,500 square feet and can be customized to meet your needs and preferences. 
Here are some important questions to consider when choosing your manufactured home.


What features are available?
The interior design of your home can include many of the custom features available in a conventional home. Because most manufacturers use computer-assisted design, you'll have flexibility in choosing variations of floor plans and décor. You can also choose from a variety of exterior designs, depending on your taste and budget. Exterior siding comes in an array of colors and materials, including metal, vinyl, wood and cementitious sidings, which are virtually fireproof. Awnings, enclosures around the crawlspace, patio covers, decks and steps also are available.

How much can I expect to pay for a home?
Depending on the size, floor plans and any custom features, a new home can cost anywhere from $15,000 to more than $100,000. This price doesn't include the property on which it sits.  Depending on the site, you may be purchasing it, leasing it or renting it.
 
What financing options are available?
Your retailer usually can provide information about financing. You can also check with lenders in your area. Just as there are choices when you buy a site-built home, there are a variety of financing options when you buy a manufactured home. Down payments and loan terms are similar to conventional loans (5% to 10% of the manufactured home's sales price), and loan terms from 15 to 30 years. Most lenders offer fixed- and variable-rate loans, and most have programs that allow you to "buy the rate down." If you own or plan to purchase the land where you will place your home, traditional mortgage financing can often be arranged.
 
What other costs can I expect to pay?
While your mortgage payment may be your biggest expense, you'll have other regular and periodic payments which will vary with your circumstances. Regular expenses may include utilities, property taxes, land rental fees, insurance, routine maintenance, and other service fees, such as water and sewer. Today's manufactured homes are built to meet new national energy standards set by HUD. The energy-conserving features found in manufactured homes help reduce monthly energy costs.
 
How much maintenance will my home need?
Your homeowner's manual outlines maintenance requirements, and it's important that you follow them. Failure to follow them could void your warranty, as well as erode the value and shorten the lifespan of your home. Additional maintenance, systems and safety information can be provided by an InterNACHI inspector during your next scheduled inspection.
 
What warranty coverage is offered on the home, its transportation, and its installation?
All manufacturers offer a written warranty that should cover:

• structural workmanship;
• factory-installed plumbing, heating and electrical systems; 
• factory-installed appliances, which also may be covered by separate warranty; and 
• appliance manufacturer warranties.

There are important differences among warranties. For example, manufacturer warranties usually do not cover installation (also called "set-up") and transportation of the home, although you may be able to get this coverage through the retailer or installation contractor. Although you may never need such warranty services, it's a good idea to check the coverage on any warranties offered before you buy.
InterNACHI-certified home inspectors know where to look for defective work. Whether you’re buying an existing home or considering a new home, allow the inspector to use his/her special knowledge to help protect you by finding defects while the home is still under warranty, and before they cause damage or injury to you or your family.
 
Where can I locate my home? 
Many homes are placed on privately-owned property. If this option appeals to you, find out about zoning laws, restrictive covenants, and utility connections. Your retailer can give you more information. Another option is to place your home in a land-lease community specifically designed for manufactured homes. Here, you own the home but lease the land. Placing your home in a land-lease community involves fewer siting considerations, such as utility connections. A third option is buying the home and land together in a planned subdivision where siting issues are handled by the developer.
 
May I move my home?
Yes, but it's not a common scenario. The transportation of a home can place considerable stress on its structure and components. Nevertheless, if you do plan to move your home in the future, make sure you check with the appropriate state authorities about transportation and zoning regulations. States have restrictions on weight, size and width that may prevent you from moving your home. If you relocate, make sure you use a professional transporter; never try to move the home yourself. It's also important to check the climate zone maps for your home. These maps tell you the wind, snow and thermal zones for which your home was constructed. Use them to determine whether your home is suitable for the new location you’re considering.


The actual overall costs connected with moving are another consideration. In addition to transport expenses, which include licensing fees to take your home through a state, you'll have to pay for a new foundation, installation, and utility hook-ups.

Home Winterizationby Nick Gromicko, CMI® and Kenton Shepard
 Winterization is the process of preparing a home for the harsh conditions of winter. It is usually performed in the fall before snow and excessive cold have arrived. Winterization protects against damage due to bursting water pipes, and from heat loss due to openings in the building envelope. Inspectors should know how winterization works and be able to pass this information on to their clients
Plumbing System 
Water damage caused by bursting pipes during cold weather can be devastating. A ruptured pipe will release water and not stop until someone shuts off the water. If no one is home to do this, an enormous quantity of water can flood a house and cause thousands of dollars' worth of damage. Even during very small ruptures or ruptures that are stopped quickly, water leakage can result in mold and property damage. Broken water pipes can be costly to repair.

• All exposed water pipes in cold areas, such as attics, garages, and crawlspaces, should be insulated. Foam or fiberglass insulation can be purchased at most hardware stores.  Insulation should cover the entirety of a pipe.
• Plastic is more tolerant of cold expansion than copper or steel. Houses in colder climates might benefit from the exclusive use of approved plastic plumbing. 
• Water supply for exterior pipes should be shut off from inside the house and then drained.
• Sprinkler systems are particularly vulnerable to cracking due to cold-weather expansion. In addition to turning them, it helps to purge the system of any remaining water with compressed air.
• Homeowners should be aware that much of the plumbing system travels through areas that are significantly colder than the rest of the house. Because it is impossible to monitor the temperature of every portion of the plumbing system, indoor air temperature should be kept high enough throughout the winter to keep pipes in any unheated places from freezing.

Leaks in the Building Envelope
Leaky window frames, door frames, and electrical outlets can allow warm air to escape into the outdoors.

• Windows that leak will allow cold air into the home. Feeling for drafts with a hand or watching for horizontal smoke from an incense stick are a few easy ways to inspect for leaks. They can be repaired with tape or caulk.
• On a breezy day, a homeowner can walk through the house and find far more leaks than they knew existed. Leaks are most likely in areas where a seam exists between two or more building materials.

Insulation

• Because hot air rises into the attic, a disproportionately larger amount of heat is lost there than in other parts of the house. Like a winter hat that keeps a head warm, adequate attic insulation will prevent warm indoor air from escaping. Attic insulation should be 12 inches thick in cold climates.
• Storm doors and windows should be installed to insulate the house and protect against bad weather.

Heating Systems
The heating system is used most during the winter so it’s a good idea to make sure that it works before it’s desperately needed. The following inspection and maintenance tips can be of some help to homeowners:

• Test the furnace by raising the temperature on the thermostat. If it does not respond to the adjustment quickly it might be broken.
• Replace the air filter if it’s dirty.
• If the furnace is equipped with an oil or propane tank, the tank should be full.

Cooling Systems

• Use a hose to remove leaves and other debris from the outdoor condensing unit, if the home is equipped with one. Protect the unit with a breathable waterproof cover to prevent rusting and freezing of its components.
• Remove and store window air conditioners when they are no longer needed. Cold air can damage their components and enter the house through openings between the air conditioner and the windowpane.
• Ceiling fans can be reversed in order to warm air trapped beneath the ceiling to recirculate. A fan has been reversed if it spins clockwise.

Chimneys and Fireplaces

• The chimney should be inspected for nesting animals trying to escape the cold. Squirrels and raccoons have been known to enter chimneys for this reason.
• The damper should open and close with ease. Smoke should rise up the chimney when the damper is open. If it doesn't, this means that there is an obstruction in the chimney that must be cleared before the fireplace can be used.
• A chimney-cleaning service professional should clean the chimney if it has not been cleaned for several years.
• The damper should be closed when the fireplace is not in use. An open damper might not be as obvious to the homeowner as an open window, but it can allow a significant amount of warm air to escape.
• Glass doors can be installed in fireplaces and wood stoves to provide an extra layer of insulation.

Roofs

• If debris is left in gutters, it can get wet and freeze, permitting the formation of ice dams that prevent water from draining. This added weight has the potential to cause damage to gutters. Also, trapped water in the gutter can enter the house and lead to the growth of mold. For these reasons, leaves, pine needles, and all other debris must be cleared from gutters. This can be done by hand or with a hose.
• Missing shingles should be replaced.

Landscape

• Patio furniture should be covered.
• If there is a deck, it might need an extra coat of sealer.

Adequate winterization is especially crucial for homes that are left unoccupied during the winter. This sometimes happens when homeowners who own multiple properties leave one home vacant for months at a time while they occupy their summer homes. Foreclosed homes are sometimes left unoccupied, as well. The heat may be shut off in vacant homes in order to save money. Such homes must be winterized in order to prevent catastrophic building damage.
In addition to the information above, InterNACHI advises the following measures to prepare an unoccupied home for the winter:

• Winterize toilets by emptying them completely. Antifreeze can be poured into toilets and other plumbing fixtures.    
• Winterize faucets by opening them and leaving them open.
• Water tanks and pumps need to be drained completely. 
• Drain all water from indoor and outdoor plumbing. 
• Unplug all non-essential electrical appliances, especially the refrigerator. If no electrical appliances are needed, electricity can be shut off at the main breaker.  

In summary, home winterization is a collection of preventative measures designed to protect homes against damage caused by cold temperatures. These measures should be performed in the fall, before it gets cold enough for damage to occur. Indoor plumbing is probably the most critical area to consider when preparing a home for winter, although other systems should not be ignored. ​

Choosing the Right Home Inspector 
Buying a home? It's probably the most expensive purchase you'll ever make. This is no time to shop for a cheap inspection. The cost of a home inspection is very small relative to the value of the home being inspected. The additional cost of hiring an InterNACHI-Certified Professional Inspector® is almost insignificant.  
You have recently been crunching the numbers, negotiating offers, adding up closing costs, shopping for mortgages, and trying to get the best deals. Don't stop now. Don't let your real estate agent, a "patty-cake" inspector, or anyone else talk you into skimping here.  InterNACHI-certified inspectors  perform the best inspections by far. 
InterNACHI-certified inspectors earn their fees many times over. They do more, they deserve more, and -- yes -- they generally charge a little more. Do yourself a favor... and pay a little more for the quality inspection you deserve.The licensing of home inspectors only sets a minimum standard. Much like being up to code, any less would be illegal.  Imaginary people, children, psychics (who claim to "sense" if a house is OK) and even pets can theoretically be home inspectors.  InterNACHI, the International Association of Certified Home Inspectors, front-ends its membership requirements.
InterNACHI inspectors:

• have to pass InterNACHI's Online Inspector Examination, and re-take and pass it every three years (it's free and open to everyone, and free to re-take);
• have to complete InterNACHI's online Code of Ethics Course (free to take after joining, and self-paced);
• have to take InterNACHI's online Standards of Practice Course (free to take after joining, and self-paced);
• must submit a signed Membership Affidavit;
• substantially adhere to InterNACHI's Standards of Practice;
• abide by InterNACHI's Code of Ethics;
• have to submit four mock inspection reports to InterNACHI's Report Review Committee (for free) before performing their first paid home inspection for a client if the candidate has never performed a fee-paid home inspection previously;
• within the first year of membership, have to successfully pass the following free online, accredited, and self-paced courses and exams:
  • InterNACHI’s "Safe Practices for the Home Inspector" course,
  • InterNACHI’s "25 Standards Every Inspector Should Know" course,
  • InterNACHI’s "Residential Plumbing Overview for Inspectors" course,
  • InterNACHI’s "How to Perform Residential Electrical Inspections" course,
  • InterNACHI’s "How to Perform Roof Inspections" course,
  • InterNACHI’s "How to Inspect HVAC Systems" course,
  • InterNACHI’s "Structural Issues for Home Inspectors" course,
  • InterNACHI’s "How to Perform Exterior Inspections" course,
  • InterNACHI’s "How to Inspect the Attic, Insulation, Ventilation and Interior" course,
  • InterNACHI’s "How to Perform Deck Inspections" course,
  • InterNACHI’s "How to Inspect for Moisture Intrusion" course, and
  • InterNACHI’s "How to Inspect Fireplaces, Stoves, and Chimneys" course.
• have to pursue inspection-related training by taking 24 hours of additional accredited Continuing Education each year;
• have to maintain their Online Continuing Education Log (free), per InterNACHI's rigorous Continuing Education policy;
• have access to InterNACHI's Message Board for exchanging information and tips with colleagues and experts;
• have access to InterNACHI's "What's New" section so that they can keep up with the latest news and events in the inspection industry;
• have access to InterNACHI's time-tested Inspection Agreement, which keeps them (and you) away from lawsuits;
• have access to InterNACHI's Report Review/Mentoring Service;
• have to carry E&O Insurance (if their state requires it);
• have access to a real estate agent Hold-Harmless Clause;
• and have access to many other benefits, training, marketing tools and information to help themselves, as well as consumers and real estate professionals, provided for free by the world's largest inspector association.

So, the next time you need a home inspector (or need to refer your clients to one), make sure that inspector is a member of InterNACHI.