The Housechick Blog

When a buyer makes an offer to buy a home in Tucson, they must include a form called a Loan Status Report, or LSR for short.  The LSR, among other things, says that the Buyer must lock their interest rate and points by separate written agreement during their inspection period, or the interest rate provision of the loan contingency is waived.

Basically, in the LSR, we set upper limits to the interest rate a Buyer will pay for their loan.  If the Buyer doesn’t lock their rate in their inspection period, and rates go above our stated upper limits, then they can’t walk away from the home purchase with their earnest money, on the basis of the interest rate being to high.

I was writing an offer last night with a Buyer, who was balking at that provision, which I didn’t understand at first.  Then I learn that the last time he got a home loan, six separate loan officers told him that he would have to pay to lock his rate, that the rate he got wasn’t set until the day the loan closed.

Say what?

I talked to a couple of lenders that I use frequently, as a sanity check for myself, to see if they charge a buyer for a 30 day lock.  We’re talking about conventional loans, a 30 day escrow, no buy-down points.  Here’s the responses:

Phaedra Wilson’s office of First Magnus says absolutely not, and asked, incredulously, “People charge for that?”

Mary Maza-Abihai at Long Mortgage says they do not charge for locks up to 45 days, but that in previous loan markets, lenders sometimes charged a fee upfront to keep their customers from jumping ship mid-loan, and then refunded the fee back to them at closing.

Steve Kirkpatrick of Select Mortgage says they will lock for free for 30 days, with a contract and an address.

Tony Whitaker at Wemmer Mortgage says that if my Buyer wants to pay to lock his rate, then he’s got some land in Florida he’s be happy to sell him (that Tony’s a kidder)… and that they don’t charge to lock rates at a 30 day lock.

What can I say?  There’s some crazy lenders out there actually getting away with this stuff.  Shop carefully. 

It’s that time of year again - the monsoons are bringing Tucson some much appreciated rain, and the standing water is bringing back the not at all appreciated mosquitos.

Hundreds of mosquito larvae can develop in areas of standing water that last more than 7 to 10 days, even in small containers.  During this season, I have to empty and refill my dog’s water dish outside every week or so to keep from breeding the little critters.  The larvae look like tiny little wriggling worms, maybe a quarter inch long, just hanging out in the water bowl. 

Other mosquito breeding areas may include:

• uncovered trash containers
• plant and flower pots
• tires and tire swings
• wheelbarrows
• tarps or coverings on outdoor equipment
• bird baths
• wading pools
• fountains
• rain barrels

There are several steps you can take to control the mosquito population in your yard.  First, remove all standing water, or change it more frequently.  If you remove the water saucers from under pots outside, or drill holes in the tire swing, that will help those areas drain and dry better.  See how many standing water areas you can eliminate.

If you do need to keep standing water, consider placing a “mosquito dunk” in the water.  Dunks are widely available at the hardware store, and should provide about a month of protection.  They are made of a garden spray, are targeted at controlling mosquito larvae, and are considered organic controls, harmless to birds, pets, and wildlife.

Brought to you by Dave Brownell of Second Opinion Home Inspections, Tucson Home Inspector Extraordinaire.  Thanks Dave!

Tucson homes have a wide variety of styles and roof types.  One style of roof not commonly seen in other areas of the country are flat roofs.  Flat roofs, like all roofing systems, have benefits and drawbacks.  Since a roof is a major component of a house, it is important to understand your roofing system: how it works, what to watch out for, and how to maintain it.

Dave Says:

Like all roofing systems, flat roofs are designed with the purpose of protecting the home structure from the intrusion of water. Though called flat, they are not really totally flat. Flat roofs are designed with some amount of slope from one edge to the opposite edge in order for water to run off. The slope can be as little as 1 inch per 12 feet, usually not more than 2 inches per 12 feet. Roofs with greater slopes that look like flat roofs are called shed roofs. Both are very similar in design, construction and maintenance.

Types of Coverings

These roofs can have several types of coverings: Rolled Asphalt, Built-up-painted (also called built-up-reflect), Foam, and Membrane.

Rolled asphalt roofing material is similar to asphalt shingles, it has granules just like shingles, except it comes in long rolls about 3 feet wide and is laid down with each subsequent row overlapping the previous with sealer between the lap. Rolled asphalt systems can be found on entire homes, but is usually found only on addition and patio roofs. Typical life expectancy is approximately 10 years.

Built up - painted, probably the most common flat roof covering, is a system where each layer of a 3 foot wide roll of heavy roofing tar paper is overlapped by at least one half on each course and “hot mopped” or covered with a hot roofing tar between each layer, totally sealing everything in the tar. This is referred to as the underlayment. Then the entire roof is painted with a special reflective paint, usually white or silver.  Sometimes a desert color may be required by an HOA (home owners association). Typical life expectancy is approximately 15-20 years for the underlayment and 3-5 on the painted roof coating.

Foam roofs are usually installed over a built up roofing system. This is a foam product that is blown onto all roof surfaces and is approximately 1-2 inches thick. It is generally painted with the same roof coating as the built up roof. Care and maintenance is similar to that of a built up roof.

Membrane roofs are a vinyl or rubberized product that is stretched across the entire roof area and folded over the edges to provide a seamless roof, with the exception of where plumbing vents and the like will protrude through. Some more modern versions of this type may be used on very large roofs and may be seamed at several areas across the roof. Typical life expectancy is approximately 15-25 years. Higher claims are being made regarding the newer style, however, not enough time has passed to validate these claims.

Common Problems

Because of the low slope of a flat roof, over time many of the roof surfaces begin to sag and create low spots on the roof where water can settle and can’t run off. This is called ponding. These areas will be the source of most of your maintenance.

To the left is a picture, an example of what ponding looks like on a built up painted roof.

Rolled Asphalt roofs can loose their granules over time. From expansion and contraction, the material itself may buckle or wrinkle causing ridges that can crack and eventually leak. Also, if installed with roofing nails around the edges, the nails can work loose or “pop,” causing a hole for water to intrude.  To the right is a picture of nail pops on the edge of a roof.

The painted roof coatings on built up or foam roofs have a limited life expectancy, typically 3-5 years.  If these roofs are not maintained, damage may be caused to the underlayment of the roof. Besides ponding, blistering and cracking are also to be expected. Cracking can occur on the painted roof surface and expose the black underlayment beneath and promote premature deterioration. Blistering will appear as bubbles on the surface and have a soft airy feel to them, they may even pop when you step on them. As much fun as that may sound, unless you are prepared to reseal them it is best to leave them alone.

Membrane roofs can be affected by the suns ultraviolet rays and can eventually deteriorate and even shrink. They can also get punctured by foreign objects which would be a source for water intrusion.

Maintenance and Care

Rolled Asphalt: Periodically look across the roofing surface for the formation of the buckles or wrinkles and monitor them. Before a crack is visible at the ridge of the wrinkle it should be repaired.  Also, any “popped” nail heads should be sealed and reset.  To the left is a picture of a wrinkle in a rolled asphalt roof.

Built up – painted and Foam Roofs: A painted roof should be inspected annually, especially if areas of ponding are visible. Any loose, cracked paint coating should be removed and repainted as regular maintenance until it is time to recoat the entire roof. Blisters, which appear as a bubble, should be cut out, removed, and the area recoated.

Membrane: Little maintenance is required on membrane roofs, however regular inspections are recommended in case of damage.

All Roofs:  All the systems above should include the inspection of the flashing, which is where the plumbing vents and air condition ducts that come up through the roof surface are sealed. The sealer, usually roof tar, should be inspected for shrinkage, cracking, and peeling. Older, loose material can be cut away and new tar smeared all around the area. Let dry several days then paint. Newer homes will use a rubber flashing material around round plumbing vent pipes and these too should be inspected for dry cracking and shrinking. These should be painted to protect the rubber from the UV rays. If cracked they can be sealed with roofing tar and later painted.

Because I help a lot of people move to the Tucson area from elsewhere around the country, I’m often asked about the schools.

Now, I’m not going to tell you which school is best for your kids.  I don’t know your kids, and I don’t know every school.  You really need to do your own homework in the school-selection arena.  However, let me give you some really good resources, to set you down the right path.

Starting at the top, the Arizona Department of Education is a good first resource.  Arizona schools are rated and have yearly report cards issued to give a comprehensive, yet concise overview of the school’s goals and performance.  You can search report cards here.

The main district in Tucson is Tucson Unified School District.  There’s a boundary map here, so you can see which area serves which TUSD school and how far the boundaries extend.  The last time I checked, TUSD wasn’t open enrollment, unless you are attending a magnet school, but check with the district to get a current answer. 

On the North side of town is District 16, the Catalina Foothills School  District.  Here’s their school boundary map.

On the Northeast side is the Tanque Verde School District.  Here’s their boundary map.

Southeast has the Vail School District.  The boundary map doesn’t appear to be working on their site, so check the main district page.  I believe the high schools in the district are open enrollment, but you should always check for the latest information from the district itself.

South has the Sunnyside Unified School District.  Their boundary map is a PDF file, here.

The Flowing Wells School District is sort of on the Western Central, Western, Northwestern-ish side of town.  Unfortunately, I can’t find a boundary map on their site, they seem to be having some technical difficulties.

Also Northwest and Western Centralish is Amphitheater School District, called Amphi, with a boundary map here.

Finally, there’s the Marana School District, on the Northwest side, with boundary map here. 

Take some time to visit the schools, and consider your options.  There’s a lot of schools out there, with a myriad of pros and cons.  Take the time to visit and find the best one for your child.

Thanks Jay, for the idea!

It’s barbeque time in the Old Pueblo!  Heading into the Coronado National Forest for a cool afternoon with a fire-cooked meal is a popular pastime.  However, the Coronado National Forest has implemented fire restrictions, effective June 30, 2007.  Open fires, and charcoal grills are prohibited except within developed recreation sites, and smoking is prohibited, except within an enclosed vehicle, building, developed recreation site, or while stationary in an area at least 3 feet in diameter that is barren or cleared of all flammable material.

You can read the news release here, and see red flag warnings or fire weather watches from the the National Weather Service Forecast office.

I’m out of town this week, spending 4th of July with my family in New Mexico.  It’s also my father’s birthday this week.  This is my Dad and one of our dogs, Zeki.  Happy birthday Dad!

The traditional Tucson fireworks are seen over A Mountain, also called Sentinel Peak.  Also a Tucson tradition - to set it on fire with the fireworks.

Have a fun and safe 4th of July!

Photos via Flickr, courtesy of saulmora.

The Good Ladies at Long Mortage bring us an explanation of Good Faith Estimates, and how to compare apples to apples using GFEs.

Comparing good faith estimates is a very important step in the mortgage selection process. Knowing a little bit about Good Faith Estimates, or GFEs, can be very beneficial to your success at saving money when purchasing a home.

So what’s a Good Faith Estimate?

The Good Faith Estimate is simple - it shows you how much it is it going to cost you up-front and long term for this mortgage. Sound simple? Well read on. 

I would recommend comparing at least 2-3 Good Faith Estimates. The Lender should be able to ask you a few questions to determine what programs would fit your needs and provide you with a good faith estimate without pulling your credit. These estimates will provide a pretty good average of what it will cost you for your new mortgage.

Some basic principles are that your loan consists of a mortgage program, rate, term, and fees that go along with getting the mortgage.  The mortgage rates, terms and fees may be negotiable.  Keep in mind that when you try to save money in one area than another area could be affected. For example, every thousand dollars you save in costs at the closing could ultimately raise the interest rate you negotiate.  Discuss with your lender to see what works best for you. A good faith estimate should be provided free as well as advice to help you make the right choice for you and your family.

So how do you compare Good Faith Estimates?

Let’s start with the loan program, loan terms and interest rate.  After you have determined what loan program is right for you, (30 or 15 year mortgage, Fixed/Adjustable rate, Full Doc, stated income, etc.) then a rate can be determined.  Each lender, knowing these facts, should provide you with their interest rate, fees and costs. Now you have something to compare.

The fees are where mortgage lenders and mortgage brokers become creative.  If you are dealing with an honest and reputable mortgage company, then your comparison job is very easy.  Honest companies follow guidelines when they create Good Faith Estimates, so if everyone follows the guidelines, comparing fees side by side is simple and quick.

Each section of a Good Faith Estimate is numbered. Looking closely at the 800 section of the good faith estimate, it’s a great starting place to compare.  This section is at the top and is called “Items payable in connection with loan”.  These fees can and sometimes should be negotiated.  When comparing good faith estimates, add up what you see in this section and compare them against others, because this is about the only area you have after the interest rate is determined.   

The rest of the good faith estimates are fees that will be the same no matter what financial institution you use. Section 1100 includes Title charges and Section 900 & 1000 includes Items required by lender to be paid in advance and Escrow reserve deposited with lender.

Just beware, apply this bit of knowledge and good luck comparing Good Faith Estimates. AND don’t ever hesitate to ask questions. 

Today, we explore the Blenman Elm Neighborhood, in central Tucson.

Blenman Elm sits in mid-town Tucson, bordered by Country Club, Speedway, Grant, and Campbell, excluding the Northwest corner of that area, where Catalina Vista sits.

This puts Blenman Elm anywhere from next door to two miles from the University of Arizona and University Medical Center, depending on what section of Blenman you live in - and therefore makes the neighborhood generally highly desired.  There are retail and commercial businesses along the borders at both Speedway and Grant, with nice little restaurants, video stores, and other local businesses within close walking distance.

Blenman Elm is also home to the Blenman Elementary School.  Residents are part of the Tucson Unified School District, and would also attend Doolen Middle School, or Catalina High School.

Blenman is one of those classic Central Tucson neighborhoods - it’s charming, there’s always people out walking dogs or cycling down the streets, and the houses, while sometimes quirky, are of a variety of architectural styles.  You’ll see lots of personality expressed in the resident’s homes.

In general, the area is well maintained.  Homes tend to be from the mid 1900s, and sit on long rectangular lots.  Some of the homes have guest houses on the back portion, but not every lot is zoned to allow this.

There are several reasons I like Blenman: I like the character of the houses, the location is convenient, and it feels like a friendly place to me.  There’s always someone to wave at as I ride my bike through the neighborhood.

Prices in the area range widely, according to size of the house, updates made, and lot size.  Today, that range is from $125,000 to $1,100,000, with the median house weighing in at $315,000.  The typical size is 3 bedrooms, 2 baths, around 1500 square feet, but this can also vary widely.  Click here and here to see houses for sale in Blenman Elm currently.

So that’s Blenman Elm!  Just another reason to love real estate in Tucson.  If you’re interested in a place like this, I’d be happy to help you.  There are plenty of special neighborhoods in Tucson, I’m sure we can find just the right one.  Email me, and let’s talk.

Question:  The carpet is _______ (gross, stained, dirty, ripped, smelly, non-existent): Should I offer a carpet allowance when I sell my home?

Answer:  No.  Replace the carpets.

Buyers almost always overestimate the cost of replacing the flooring.  Have it replaced yourself before you put the house on the market.  Yes, it’s a hassle, especially if you still live there.  Do it anyway.  Trust me on this one, I work with people buying and selling real estate here in Tucson every day.  Oh, and replace it with something simple and neutral.  My buddy Andy over at Castle Flooring has a series he calls “Realtor Beige.”  A smart man, that Andy.