Consumer guides for clients

Brokerpreviouslygavenoticeofthepotentialfora designated agency relationship with both buyer and seller inconnectionwithyourreal estate transaction. It was disclosed that a designated agent is a licensee who has been appointed by a broker or salesman to represent a buyerorsellerand,with consentofthat client, anotherlicenseeassociatedwith thesamebrokeris authorizedtorepresenttheotherpartyin the same transaction. Broker now gives notice that a designated agency has occurred and that licensees afiliated with Broker represent both Buyer and Seller in connectionwith property describedas:

Kurt Thompson

MASSACHUSETTSCONSENTTODUALAGENCY

Arealestatebrokerorsalespersonmayactasadualagentwhorepresentsbothprospective buyerandsellerwiththeirinformedwrittenconsent.Adualagentisauthorizedtoassistthebuyer andsellerinatransaction,butshallbeneutralwithregardtoanyconflictinginterestofthebuyer andseller.Consequently,adualagentwillnothavetheabilitytosatisfyfullythedutiesofloyalty, fulldisclosure,reasonablecareandobediencetolawfulinstructions,butshallstillowethedutyof confidentialityofmaterialinformationandthedutytoaccountforfunds.

Buyersandsellersshouldunderstandthatmaterialinformationreceivedfromeitherclientthatis confidentialmaynotbedisclosedbyadualagent,except:(1)ifdisclosureisexpresslyauthorized; (2)ifsuchdisclosureisrequiredbylaw;(3)ifsuchdisclosureisintendedtopreventillegalconduct; or(4)ifsuchdisclosureisnecessarytoprosecuteaclaimagainstapersonrepresentedorto defendaclaimagainstthebrokerorsalesperson.Thisdutyofconfidentialityshallcontinueafter terminationofthebrokeragerelationship.

BUYER/SELLERACKNOWLEDGMENT

Iacknowledgeandagreethat {insertname oflicensee} is(are)authorizedtorepresentboththebuyerandsellerasadualagent.Ihereby consenttodualagency.

Broker previously gave notice of the potential for a dual agency relationship to occur in connection with your real estate transaction. You previously gave your consent to that relationship.

Broker now gives notice that a dual agency has occurred and that Broker and afiliated licensees represent both Buyer and Seller in connection with the property described as _________________________ (the "Property"). A dual agent is authorized to assist the buyer and seller in a transaction, but shall be neutral with regard to any conflicting interest of the buyer and seller. Consequently, a dual agent will not have the ability to satisfy fully the duties of loyalty, full disclosure, reasonable care and obedience to lawful instructions, but shall still owe the duty of confidentiality of material information and the duty to account for funds. Dated

ASBESTOS IN YOUR HOME

ASBESTOS IN YOUR HOME

Protect yourself and your investment. Review this booklet prior to remodeling, repairing, or removing materials that may contain asbestos.

• Before remodeling, ind out whether asbestos materials are present

• Asbestos that is in good condition should be left alone

• Improper sampling of asbestos can increase the risk of iber release

• Sampling should be done by a trained professional

• Asbestos problems may be corrected by either repair (major or minor) or removal

• Generally, any damaged area that is bigger than your hand is considered a major repair

• Major repairs must be done by a trained professional

• Asbestos removal must be done by a trained contractor

• Check the credentials of asbestos professionals before you hire

• Asbestos contractors and consultants licensed in Arkansas are listed on ADEQ’s website

• Rooing, looring, and plumbing contractors may also be licensed to handle asbestos

Oice of Air Quality | Asbestos Section 5301 Northshore Drive North Little Rock , AR 72118-5317 www.adeq.state.ar.us

Produced by the Arkansas Department of Environmental Quality | January 2018

Asbestos in Your Home

The mere presence of asbestos in a home or building is not hazardous. However, asbestos materials may become damaged and release ibers over time which could then become a health hazard.

The best thing to do with asbestos in good condition is to leave it alone. Disturbing it may create a health hazard where none existed before. Read this booklet before you have any asbestos material inspected, removed, or repaired.

What Is Asbestos?

Asbestos is a mineral iber that can be positively identiied only with a special type of microscope. In the past, asbestos was added to provide heat insulation, ire resistance, and strength to a variety of products.

Until the 1970s, many building products and insulation materials used in homes contained asbestos. While most products made today do not contain asbestos, those that continue to be produced are required to be labeled with the potential hazards.

How Can Asbestos

Affect My Health?

Breathing high levels of asbestos ibers can lead to an increased risk of:

• lung cancer

• mesothelioma, a cancer of the lining of the chest and the abdominal cavity

• asbestosis, a chronic lung disease caused by scarring in the lungs

What Should Be Done

About Asbestos in the Home?

If you think asbestos may be in your home, don’t panic. Usually the best thing to do with asbestos material that is in good condition is to leave it alone. There is no danger unless the ibers are released and inhaled into the lungs.

If you suspect materials may contain asbestos, check them regularly. Don’t touch, but look for signs of wear or damage such as tears, abrasions, or water damage. Asbestos ibers may be released if damaged material is disturbed by hitting, rubbing, or handling it, or if it is exposed to extreme vibration or air low. Sanding, scraping, sawing, or simply repairing asbestoscontaining materials increases the potential that harmful ibers will be released.

Slightly damaged material may be dealt with by simply limiting access to the area and not touching or disturbing the material. Discard damaged or worn asbestosgloves,stove-toppads,orironingboardcovers.

If asbestos material is more than slightly damaged or if you are going to make changes in your home that might disturb it, repair or removal by a professional is needed. Before you have your house remodeled, ind out whether asbestos materials are present.

How to Identify Asbestos

Unless it is labeled, you cannot tell whether a material contains asbestos simply by looking at it. If in doubt, treat the material as if it contains asbestos, or have it sampled and analyzed by a qualified professional who knows what to look for and can prevent the release of fibers.

We are all exposed to small amounts of asbestos in our daily lives and most people do not develop these health problems.

The best thing to do with asbestos in good condition is to leave it alone.

Product that may have previously contained asbestos How fibers may be released

Steam pipes, boilers, furnace ducts insulated with an asbestos blanket or paper tape

Resilient loor tiles (vinyl asbestos, asphalt, rubber), backing on vinyl sheet looring, adhesives used for installing loor tile

Cement sheets, millboards, and paper used as insulation around furnaces and wood-burning stoves

• Damaged, repaired, or removed improperly

• Sanding tiles

• Scraping or sanding the backing of looring during removal

• Reparing or removing appliances

• Cutting, tearing, sanding, drilling, or sawing insulation

Door gaskets in furnaces, wood stoves, and coal stoves• Worn seals

Soundprooing or decorative materials sprayed on walls and ceilings

Patching and joint compounds for walls and ceilings, textured paints

• Loose, crumbly, or water-damaged materials

• Sanding, drilling, or scraping

• Sanding, scraping, or drilling

Asbestos cement rooing, shingles, and siding• Unlikely unless sawed, drilled, or cut

Artiicial ashes and embers sold for use in gas-ired ireplaces

Fireproof gloves, stove-top pads, ironing board covers, certain hairdryers

• Air currents created by downdrafts from a ireplace chimney or other activities that stir air

• Long-term use or product age

Automobile brake pads and linings, clutch facings, and gaskets• Damaged or worn

Taking samples yourself is not recommended

If done incorrectly, sampling can be more hazardous than leaving the material alone. Therfore, taking samples yourself is not recommended. Material that is in good condition and will not be disturbed (by remodeling, for example) should be left alone. Only material that is damaged or will be disturbed should be sampled.

Sampling should be done by a trained professional who knows what to look for and who can prevent the release of ibers. Asbestos professionals licensed in Arkansas are listed on ADEQ’s website.

Taking Your Own Samples

If you do choose to take the asbestos samples yourself, which is not recommended, take care not to release asbestos ibers into the air or onto yourself. Anyone who samples asbestos-containing materials should have as much information as possible on the handling of asbestos before sampling, and at a minimum, should

observe the following procedures:

• Ensure no one else is in the room when sampling is conducted

• Wear disposable gloves and wash hands after sampling

• Shut down any heating or cooling systems to minimize the spread of any released ibers

• Disturb the material as little as possible

• Place a plastic sheet on the loor below the area to be sampled

• Wet the material using a ine mist of water containing a few drops of detergent beforetakingthesample

• Carefully cut a piece from the entire depth of the material using a small knife, corer, or

other sharp tool and place the small piece into a clean container (a small glass, plastic vial, or highquality resealable plastic bag, for example)

• Tightly seal the container after inserting the sample

• Carefully dispose of the plastic sheets, use a damp paper towel to clean up any material on the outside of the container or around the area sampled, and dispose of asbestos materials according to state and local procedures

• Label the container with an identiication number, clearly noting when and where the sample was taken

• Patch the sampled area with a piece of duct tape

• Send the sample to an EPA-approved laboratory for analysis

A list of EPA-approved laboratories is available from the National Institute for Standards and Technology’s National Voluntary Laboratory Accreditation Program, NVLAP.

Contact NVLAP by phone, (301) 975-4016; fax, (301) 926-2884; or email, nvlap@nist.gov. A copy of the list may also be requested by mail, 100 Bureau Drive, Stop 2140, Gaithersburg, MD 20899-2140. For more information, visit www.nist.gov/nvlap.

How To Manage an Asbestos Problem

If there is a problem with asbestos material, there are two types of corrections: repair and removal.

Repair usually involves either sealing (encapsulation) or covering (enclosing) asbestos material.

• Encapsulate (or seal) by treating the material with a sealant that either binds the asbestos ibers together or coats the material to prevent iber release. Pipe, furnace, and boiler insulation can sometimes be repaired this way. This should be done only by a professional trained to safely handle asbestos.

• Enclose (or cover) by placing something over or around the material that contains asbestos to prevent release of ibers. Exposed insulated piping may be covered with a protective wrap or jacket.

With any type of repair, the asbestos remains in place. Repair is usually cheaper than removal, but it may make later removal of asbestos, if necessary, more diicult and costly. Repairs can either be major or minor.

Asbestos Dos

• Keep activities to a minimum in any areas with damaged material that may contain asbestos

• Take every precaution to avoid damaging asbestos

• Have removal and major repair done by professionals trained and qualiied in handling asbestos; it is highly recommended that sampling and minor repair be done by professionals as well

• Install new loor covering over asbestos looring that needs to be replaced, when possible

• Clean material tracked in the house with a wet mop

• Call an asbestos professional if the area to be cleaned is large

• Contact ADEQ’s Oice of Air Quality Asbestos Section for information about asbestos training programs and asbestos in general

• Check with your local school district for information about asbestos professionals and training programs for school buildings

Asbestos Don’ts

• Dust, sweep, or vacuum debris suspected of containing asbestos

• Saw, sand, scrape, or drill holes in asbestos materials

• Use abrasive pads or brushes on power strippers to strip wax from asbestos looring; never use a power stripper on a dry loor

• Sand or try to level asbestos looring or its backing

• Track material that could contain asbestos through the house

• Try anything more than minor repairs even if you have completed a training course

Minor Repairs

Before undertaking minor repairs, be sure to follow all the precautions described in this guide and carefully examine the area around the damage to ensure stability. As a general rule, any damaged area bigger than the size of your hand is not a minor repair. Always wet the asbestos material using a ine mist of water containing a few drops of detergent. Commercial products designed to ill holes and seal damaged areas are available. Small areas of material such as pipe insulation can be covered by wrapping a special fabric, such as rewettable glass cloth, around it. These products are available from stores that specialize in safety items.

Asbestos removal is usually the most expensive method and, unless required by state or local regulations, should be the last option considered in most situations. Removal may be required when remodeling or making major changes to your home that will disturb asbestos material or if asbestos material has extensive damage and cannot be repaired. Because removal poses the greatest risk of iber release and is complex, it must be done by a contractor with special training.

Asbestos Professionals: Who Are They and What Can They Do?

If you have a problem that requires the services of asbestosprofessionals,checktheircredentialscarefully.

Hire professionals who are trained, experienced, and reputable. Before hiring, ask for references from previous clients and ind out if the clients were satisied. Ask whether the professional has handled similar situations. Because charges can vary, get cost estimates from several professionals.

The federal government sets standards for asbestos

professionals,andADEQfollowsthesestandards.Each person performing asbestos work in your home should provide proof of his or her certiication in asbestos work and the company’s licensing as an asbestos irm. Check ADEQ’s website for lists of certiied workers and licensed companies.

Asbestos professionals are trained in handling asbestos material. They can conduct home inspections, take samples of suspected material, assess its condition, advisewhatcorrectionsareneeded,andhelpdetermine who is qualiied to make these corrections.

The type of professional will depend on the type of product and what needs to be done to correct the problem. You may hire a general asbestos contractor or, in some cases, a professional irm trained to handle speciic products containing asbestos.

Some irms ofer combinations of inspection, consulting, testing, assessment, abatement, and correction. A professional hired to assess the need for abatement or corrective action should not be connected with an asbestos-abatement irm. It is better to use two diferent irms so there is no conlict of interest. Services vary from one area to another. Though private homes are usually not covered by the asbestos regulations that apply to schools and public buildings, professionals should still use procedures describedduringstate-approvedtraining.Homeowners should be alert to the chance of misleading claims by asbestosconsultantsandcontractors.Therehavebeen reports of irms incorrectly claiming that asbestos materials in homes must be replaced. In other cases, irms have encouraged unnecessary removals or performed them improperly. Unnecessary removals are a waste of money and improper removals may actually increase the health risks to you and your family. To guard against this, know what services are available and what procedures and precautions are needed to do the job properly.

In addition to general asbestos contractors, you may select a rooing, looring, or plumbing contractor licensed to handle asbestos. ADEQ maintains a list of Arkansas-licensed asbestos contractors and consultants at https://www.adeq.state.ar.us/air/ program/asbestos/contractor.aspx. To request a paper copy, call (501) 682-0718.

Asbestos-containing automobile brake pads and

linings, clutch facings, and gaskets should be repaired and replaced only by professionals using special protective equipment. Many of these products are now available without asbestos.

If You Hire a Professional Asbestos Inspector

• Make sure that the inspection will include a complete visual examination and the careful collection and lab analysis of samples. If asbestos is present, the inspector should provide a written evaluation describing its location and extent of damage, and give recommendations for correction, abatement, or risk prevention.

• Make sure an inspecting irm makes frequent site visits to assure that a contractor follows proper procedures and requirements. The inspector may recommendandperformchecksaftertheabatement work to assure the area has been properly cleaned.

For a list of Arkansas-licensed asbestos consultants who employ certiied inspectors, call ADEQ, (501) 682-0718, or go to https://www.adeq.state.ar.us/air/ program/asbestos/licenses.aspx.

If You Hire an Asbestos Abatement Contractor

• Check with the Occupational Health and Safety Administration (www.osha.gov/SLTC/asbestos/) of the U.S. Department of Labor, Little Rock Oice, (501) 224-1841, and the local Better Business Bureau. Ask if the irm has had any safety violations. Find out if there are legal actions iled against it.

• Insist that the contractor use the proper equipment to do the job. The workers must wear approved respirators, gloves, and other protective clothing.

• Beforeworkbegins,getawrittencontractspecifying the work plan, cleanup, and the applicable federal, state, and local regulations which the contractor must follow (such as notiication requirements and asbestos disposal procedures). Contact ADEQ for Arkansas asbestos regulations.

• Be sure the contractor follows asbestos removal

and disposal laws. At the end of the job, get written assurance from the contractor that all procedures have been followed.

• Make sure that the contractor avoids spreading or tracking asbestos dust into other areas of your home. The contractor should seal the work area from the rest of the house using plastic sheeting and duct tape, and turn of the heating and air conditioning system. For some repairs, such as pipe insulation removal, plastic glove bags may be adequate. They must be sealed with tape and properly disposed of when the job is complete.

• Make sure the work site is clearly marked as a hazard area. Do not allow household members or pets into the area until work is completed.

• Insist that the contractor apply a wetting agent to the asbestos material with a hand sprayer that creates a ine mist before removal. Wet ibers do not loat in the air as easily as dry ibers and will be easier to clean up.

• Make sure the contractor does not break removed material into small pieces. This could release asbestos ibers into the air. Pipe insulation was usually installed in preformed blocks and should be removed in complete pieces.

• Upon completion, assure that the contractor cleans the

area well with wet mops, wet rags, sponges, or high eiciency particulate air (HEPA) vacuum cleaners. A regular vacuum cleaner must never be used. Wetting helps reduce the chance of spreading asbestos ibers in the air. All asbestos materials and disposable equipment and clothing used in the job must be placed in sealed, leak-proof, and labeled plastic bags. The work site should be visually free of dust and debris. Air monitoring (to make sure there is no increase of asbestos ibers in the air) may be necessary to ensure that the contractor’s job is done properly. This should be done by a irm not connected with the contractor.

For a list of Arkansas-licensed asbestos contractors, call ADEQ, (501) 682-0718, or go to www.adeq.state. ar.us/air/program/asbestos/contractor.aspx.

Do not dust, sweep, or vacuum debris that may contain asbestos. These steps will disturb tiny asbestos ibers and mayreleasethemintotheair.Removedustbywetmopping or with a special HEPA (high eiciency particulate air) vacuum cleaner used by trained asbestos contractors.

Additional Resources

American Lung Association http://www.lungusa.org/

Arkansas-licensed asbestos xontractors and consultants https://www.adeq.state.ar.us/air/program/asbestos/ contractor.aspx

Arkansas-licensed asbestos inspectors https://www.adeq.state.ar.us/air/program/asbestos/ licenses.aspx

Asbestos information www.ADEQ.state.ar.us/air/asbestos/asbestos.htm

U.S. Consumer Product Safety Commission www.cpsc.gov

U.S. Department of Labor, Occupational Safety and Health Administration (OSHA) http://www.osha.gov/SLTC/asbestos/

U.S. Environmental Protection Agency Information about asbestos, its health efects, training for asbestos professionals, EPA regional and state asbestos contacts, and EPA-approved laboratories http://www.epa.gov/asbestos/pubs/help.html#info

Disclaimer

This document may be reproduced without charge, in whole or in part, without permission, except for use as advertising material or product endorsement. Any such reproduction should credit the American Lung Association, the U.S. Consumer Product Safety Commission, the U.S. Environmental Protection Agency, and the Arkansas Department of Environmental Quality. The use of all or any part of this document in a deceptive or inaccurate manner or for purposes of endorsing a particular product may be subject to appropriate legal action.

Statement by the American Lung Association: The statements in this brochure are based in part upon the results of a workshop concerning asbestos in the home that was sponsored by the U.S. Consumer Product Safety Commission and the American Lung Association (ALA). The sponsors believe that this brochure provides an accurate summary of useful information discussed at the workshop and obtained from other sources. However, ALA did not develop the underlying information used to create the brochure and does not warrant the accuracy and completeness of such information. ALA emphasizes that asbestos should not be handled, sampled, removed, or repaired by anyone other than a qualiied professional.

(WithContingencies) (BindingContract. IfLegalAdviceIsDesired,ConsultAnAttorney.)

From:BUYER(S): To:OWNEROFRECORD("SELLER"):

Name(s):

Name(s): Address: Address:

Theagent isoperatinginthistransactionas: Buyer'sAgent Seller'sAgent Facilitator DualAgent ThisprovisiondoesnoteliminatetherequirementtohaveasignedMandatoryRealEstateLicensee-ConsumerRelationship. ItactstosatisfyStandardofPractice16-10in theREALTOR®CodeofEthics.

TheBUYERoffers topurchasetherealpropertydescribedas

togetherwithallbuildingsandimprovementsthereon(the"Premises")towhichIhavebeenintroducedby uponthefollowingtermsandconditions:

1. PurchasePrice: TheBUYERagreestopaythesumof$ totheSELLERforthepurchaseofthe Premises(the“Offer”),dueasfollows:

i.$ asadeposittobindthisOffer anddeliveredherewithtotheSellerorSeller'sagent ortobedeliveredforthwithuponreceiptofwrittenacceptance ii.$ asanadditionaldeposituponexecutingthePurchaseAndSaleAgreement; iii.Balancebybank's,cashier's,treasurer'sorcertifiedcheckorwiretransferattimeforclosing.

2. DurationOfOffer

.ThisOfferisvaliduntil a.m./p.m.on bywhichtimea copyofthisOffershallbesignedbytheSELLER,acceptingthisOfferandreturnedtotheBUYER,otherwisethis OffershallbedeemedrejectedandthemoneytenderedherewithshallbereturnedtotheBUYER.Uponwrittennotice totheBUYERorBUYER'SagentoftheSELLER'Sacceptance,theacceptedOffershallformabindingagreement.Time isoftheessenceastoeachprovision.

3. PurchaseAndSaleAgreement.TheSELLERandtheBUYERshall,onorbefore a.m./p.m. on executetheStandardPurchaseandSaleAgreementoftheMASSACHUSETTS ASSOCIATIONOFREALTORS®orsubstantialequivalentwhich,whenexecuted,shallbecometheentireagreement betweenthepartiesandthisOffershallhavenofurtherforceandeffect.

4. Closing.TheSELLERagreestodeliveragoodandsufficientdeedconveyinggoodandclearrecordandmarketable titleat a.m./p.m.on atthe CountyRegistry ofDeedsorsuchothertimeorplaceasmaybemutuallyagreeduponbytheparties.

5. Escrow. Thedepositshallbeheldby ,asescrowagent,subjectto thetermshereof.Endorsementornegotiationofthisdepositbytherealestatebrokershallnotbedeemedacceptanceof thetermsoftheOffer.Intheeventofanydisagreementbetweenthepartiesconcerningtowhomescrowedfundsshould bepaid,theescrowagentmayretainsaiddepositpendingwritteninstructionsmutuallygivenbytheBUYERand SELLER.TheescrowagentshallabidebyanyCourtdecisionconcerningtowhomthefundsshallbepaidandshallnot bemadeapartytoapendinglawsuitsolelyasaresultofholdingescrowedfunds.Shouldtheescrowagentbemadea partyinviolationofthisparagraph,theescrowagentshallbedismissedandthepartyassertingaclaimagainstthe escrowagentshallpaytheagent'sreasonableattorneys'feesandcosts.

6. Contingencies. ItisagreedthattheBUYER'SobligationsunderthisOfferandanyPurchaseandSaleAgreement signedpursuanttothisOfferareexpresslyconditioneduponthefollowingtermsandconditions:

a. Mortgage. (DeleteIfWaived)TheBUYER'Sobligationtopurchaseisconditioneduponobtainingawritten commitmentforfinancingintheamountof$ atprevailingrates,termsandconditionsby

.TheBUYERshallhaveanobligationtoactreasonably diligentlytosatisfyanyconditionwithintheBUYER'Scontrol.If,despitereasonableefforts,theBUYERhasbeenunableto obtainsuchwrittencommitmenttheBUYERmayterminatethisagreementbygivingwrittennoticethatisreceivedby5:00 p.m.onthecalendardayafterthedatesetforthabove.Intheeventthatnoticehasnotbeenreceived,thisconditionis deemedwaived.Intheeventthatduenoticehasbeenreceived,theobligationsofthepartiesshallceaseandthis agreementshallbevoid;andallmoniesdepositedbytheBUYERshallbereturned.InnoeventshalltheBUYERbe deemedtohaveusedreasonableeffortstoobtainfinancingunlesstheBUYERhassubmittedoneapplicationby andactedreasonablypromptlyinprovidingadditionalinformationrequestedbythe mortgagelender.

©1999,2000,2001,2002,2007,2010,2012,2013,2014 2017MASSACHUSETTSASSOCIATIONOFREALTORS® 10.22.2014/403031 Phone: Fax: ProducedwithzipForm®byzipLogix18070FifteenMileRoad,Fraser,Michigan48026 www.zipLogix.com

b. Inspections.

(DeleteIfWaived)TheBUYER'Sobligationsunderthisagreementaresubjecttotherighttoobtain inspection(s)ofthePremisesoranyaspectthereof,including,butnotlimitedto,home,pest,radon,leadpaint,energy usage/efficiency,septic/sewer,waterquality,andwaterdrainagebyconsultant(s)regularlyinthebusinessofconductingsaid inspections,ofBUYER'Sownchoosing,andatBUYER'Ssolecostby

, Iftheresultsarenot satisfactorytoBUYER,inBUYER'Ssolediscretion,BUYERshallhavetherighttogivewrittennoticereceivedbythe SELLERorSELLER'Sagentby5:00p.m.onthecalendardayafterthedatesetforthabove,terminatingthisagreement.Upon receiptofsuchnoticethisagreementshallbevoidandallmoniesdepositedbytheBUYERshallbereturned.Failuretoprovide timelynoticeofterminationshallconstituteawaiver.IntheeventthattheBUYERdoesnotexercisetherighttohavesuch inspection(s)ortosoterminate,theSELLERandthelistingbrokerareeachreleasedfromclaimsrelatingtotheconditionofthe PremisesthattheBUYERortheBUYER'Sconsultantscouldreasonablyhavediscovered.

7. Representations/Acknowledgments.

TheBUYERacknowledgesreceiptofanagencydisclosure,leadpaint disclosure(forresidencesbuiltbefore1978),andHomeInspectorsFactsForConsumersbrochure(preparedbythe OfficeofConsumerAffairs).TheBUYERisnotrelyinguponanyrepresentation,verbalorwritten,fromanyrealestate brokerorlicenseeconcerninglegaluse.Anyreferencetothecategory(singlefamily,multi-family,residential,commercial) ortheuseofthispropertyinanyadvertisementorlistingsheet,includingthenumberofunits,numberofroomsorother classificationisnotarepresentationconcerninglegaluseorcompliancewithzoningby-laws,buildingcode,sanitarycode orotherpublicorprivaterestrictionsbythebroker.TheBUYERunderstandsthatifthisinformationisimportanttoBUYER, itisthedutyoftheBUYERtoseekadvicefromanattorneyorwrittenconfirmationfromthemunicipality.Inaddition,the BUYERacknowledgesthattherearenowarrantiesorrepresentationsmadebytheSELLERoranybrokeronwhich BUYERreliesinmakingthisOffer,exceptthosepreviouslymadeinwritingandthefollowing:(ifnone,write“NONE”): 8.

SELLER'SREPLY

INTEGRATED DISCLOSURE ADDENDUM - MORTGAGE (To

Contract To Purchase / Purchase And Sale Agreement)

This Integrated Disclosure Addendum is entered into this ___ day of ________, 20__ and is deemed to amend and supplement a certain agreement between _____________________________ __________________________________ (“SELLER”) and _______________________________ _______________________________ (“BUYER”).

BeginningonOctober3rd,2015,thefederalConsumerFinancialProtectionBureau’s“Closing Disclosure” for mortgage loans is required (the “Integrated Disclosure Rule”). The final Closing Disclosure must be received by the borrower three business days prior to the date of Closing (a/k/a Time For Performance) when a deed to the property is delivered by the seller to the buyer and the purchase price is paid. If, after a buyer receives the Closing Disclosure the annual percentage rate of the buyer’s loan changes by more than one eighth of one percent for a fixed rate loan or changes by more than one quarter of one percent for an adjustable rate loan from the rate that was previously disclosed to the buyer, the loan program is changed, or a prepayment penalty becomes applicable to the mortgage loan then it will become necessary for the Closing to be delayed until at least three business days after a buyer receives a revised Closing Disclosure. To promote compliance with the Integrated Disclosure Rule, the parties agree as follows:

1. BUYER agrees to obtain and provide SELLER the name of the attorney for BUYER’s mortgage lender (“Lender’s Attorney”) as soon as practicable after BUYER receives this information from the Lender, but in any event no less than fourteen business days prior to the scheduled date of closing.

2. No fewer than seven business days in advance of the scheduled closing, SELLER and the BUYER shall provide Lender’s Attorney all information reasonably obtainable by such person neededtocalculatetheadjustments(suchaswater,sewer,taxes,oilintank)specifiedintheapplicable clauses of the Purchase and Sale Agreement or as requested by Lender’s Attorney for the purpose of preparing the Closing Disclosure.

3. The BUYER and SELLER agree that: (a) if necessary to assure full compliance with the Integrated Disclosure Rule; and (b) at the request of Lender’s Attorney, the scheduled date for Closing will be extended up to three business days, or such other time as parties may agree. In such event, BUYER shall promptly give notice to SELLER.

4. No claim, counterclaim or cause of action for any loss or damage resulting from an extension, pursuant to paragraph 3, above, shall be initiated or maintained by SELLER against BUYER or by BUYER against SELLER, unless caused by breach of the terms of this Addendum.

5. Time is of the essence.

©2015 MASSACHUSETTS ASSOCIATION OF REALTORS®

This form is in use by: Use by anyone other than a participant in the transaction is strictly prohibited

Electric and Magnetic Fields

Electromagnetic fields (EMF) are a combination of electric and magnetic fields of energy that surround any electrical device that is plugged in and turned on.



Scientific experiments have not clearly shown whether or not exposure to EMF increases cancer risk. Scientists continue to conduct research on the issue.



The strength of electromagnetic fields fades with distance from the source. Limiting the amount of time spent around a source and increasing the distance from a source reduces exposure.

About Electric and Magnetic Fields

Electromagnetic fields (EMF) are a combination of electric and magnetic fields of energy that surround any electrical device that is plugged in and turned on. Electromagnetic radiation consists of waves of electric and magnetic energy moving together through space. Electric fields are produced by electric charges and magnetic fields are produced by the flow of current through wires or electrical devices.

EMFs are found near power lines and other electronic devices such as smart meters. Electric and magnetic fields become weaker as you move further away from them. The fields from power lines and electrical devices have a much lower frequency than other types of EMF, such as microwaves or radio waves. EMF from power lines is considered to be extremely low frequency. Scientific studies have not clearly shown whether exposure to EMF increases cancer risk. Scientists continue to conduct research on the issue.

Rules and Guidance

Transmission overhead power lines.

In the United States, there are no federal standards limiting electromagnetic fields from power lines and other sources to people at work or home. Some states set standards for the width of right-of-ways under highvoltage transmission lines because of potential for electric shock.

What you can do

There is no clear scientific evidence that electromagnetic fields affect health. However, if you are concerned about possible health risks from electric and magnetic fields you can reduce your exposure by:



Increasing the distance between yourself and the source - The greater the distance between you and the source of EMF, the less your exposure.



Limiting the time spent around the source - The less time you spend near EMF, the lower your exposure.

Where to learn more

You can learn more about electric and magnetic fields by visiting the resources available on the following webpage: http://www3.epa.gov/radtown/electric-magnetic-fields.html#learn-more.

Buildiﾐg a “troﾐg Fouﾐdaioﾐ ヲ

Beginning Your Journey

CoﾐstヴuIioﾐ Cヴe┘

Understanding Your Credit

Ho┘ MuIh Hoﾏe Caﾐ You Afoヴd? Uﾐdeヴstaﾐdiﾐg the T┞pes of Moヴtgages

Understanding Your Costs

Creaiﾐg a “olid “truIture Β “hop Coﾏpaヴe Moヴtgage “hoppiﾐg Woヴksheet A Fe┘ Thiﾐgs to ReﾏeﾏHeヴ

Wiﾐdo┘ “hoppiﾐg: BeIoﾏiﾐg a “a┗┗y Borro┘er ヱヲ A┗oidiﾐg FiﾐaﾐIial Pifalls Pヴedatoヴ┞ Leﾐdiﾐg

Kﾐo┘ Your Rights ヱヴ

It’s the La┘; Kﾐo┘ Youヴ Rights! Pヴiﾏaヴ┞ La┘s Regulaiﾐg the Moヴtgage Iﾐdustヴ┞

Fiﾐal Walkthrough ヱヶ

Loaﾐ Esiﾏate

Closiﾐg DisIlosuヴe Good Faith Esiﾏate ふGFEぶ

Tヴuth Iﾐ Leﾐdiﾐg “tateﾏeﾐt ふTILぶ DisIlosuヴe “uﾏﾏaヴ┞

HUD-ヱ “etleﾏeﾐt “tateﾏeﾐt

Befoヴe “igﾐiﾐg Da┞ Befoヴe You Lea┗e: The Closiﾐg Closiﾐg Costs

WelIoﾏe Hoﾏe ヴヵ

PヴoteIiﾐg Youヴ Hoﾏe Iﾐ┗estﾏeﾐt Pヴe┗eﾐiﾐg/A┗oidiﾐg FoヴeIlosuヴe

“eIuriﾐg a Liﾐe of Credit Ater PurIhase ヴΑ

Is A Hoﾏe Eケuit┞ Cヴedit Liﾐe Foヴ You? Hoﾏe Iﾏpヴo┗eﾏeﾐt Loaﾐ

Geiﾐg A Wヴiteﾐ CoﾐtヴaIt

Keepiﾐg ReIoヴds

Coﾏpleiﾐg The JoH: A CheIklist Re┗eヴse Moヴtgages

Addiioﾐal Tools

Moヴtgage Teヴﾏs

Loaﾐ Coﾏpaヴisoﾐ Woヴksheet

Loaﾐ DoIuﾏeﾐt CheIklist

ヵヰ

YOUR GUIDE TO HOME OWNER“HIP

WelIoﾏe to the Depaヴtﾏeﾐt of FiﾐaﾐIial Iﾐsituioﾐs ふDFIぶ guide to hoﾏe loaﾐs. Whetheヴ ┞ou’ヴe Hu┞iﾐg ┞ouヴ iヴst hoﾏe, Ioﾐsideヴiﾐg a seIoﾐd ﾏoヴtgage, ヴeiﾐaﾐIiﾐg, oヴ Ioﾐsideヴiﾐg a ヴe┗eヴse ﾏoヴtgage the loaﾐ pヴoIess Iaﾐ He Ioﾐfusiﾐg aﾐd IoﾏpliIated. As ┞ou eﾏHaヴk oﾐ oﾐe of the Higgest iﾐaﾐIial deIisioﾐs ┞ou’ll ﾏake iﾐ ┞ouヴ lifeiﾏe, use this guide to uﾐdeヴstaﾐd aﾐd to help ﾐa┗igate this pヴoIess.

Washiﾐgtoﾐ “tate is a leadeヴ ┘heﾐ it Ioﾏes to passiﾐg la┘s aﾐd ヴules that pヴoteIt Ioﾐsuﾏeヴs aﾐd eﾐsuヴe souﾐd Husiﾐess pヴaIiIes iﾐ the ﾏoヴtgage iﾐdustヴ┞. This Hooklet ┘as updated iﾐ Juﾐe ヲヰヱΑ. Visit htp://┘┘┘.di.┘a.go┗/ Ioﾐsuﾏeヴs/eduIaioﾐ/hoﾏe.htﾏ to ┗eヴif┞ ┞ou ha┗e the ﾏost ヴeIeﾐt iﾐfoヴﾏaioﾐ ヴegaヴdiﾐg the ﾏoヴtgage iﾐdustヴ┞.

EduIaiﾐg ┞ouヴself Iaﾐ help ┞ou a┗oid Ioﾏﾏoﾐ pifalls aﾐd assist ┞ou iﾐ deteヴﾏiﾐiﾐg ┘hat t┞pe of hoﾏe loaﾐ is Hest foヴ ┞ou.

ABOUT DFI

The Depaヴtﾏeﾐt of FiﾐaﾐIial Iﾐsituioﾐs liIeﾐses aﾐd ヴegulates a ┗aヴiet┞ of Washiﾐgtoﾐ “tate iﾐaﾐIial seヴ┗iIe pヴo┗ideヴs suIh as Haﾐks, Iヴedit uﾐioﾐs, ﾏoヴtgage Hヴokeヴs, Ioﾐsuﾏeヴ loaﾐ Ioﾏpaﾐies, ﾏoﾐe┞ tヴaﾐsﾏiteヴs, pa┞da┞ leﾐdeヴs, aﾐd seIuヴiies Hヴokeヴ-dealeヴs aﾐd iﾐ┗estﾏeﾐt ad┗isoヴs. DFI also ┘oヴks to pヴoteIt Ioﾐsuﾏeヴs fヴoﾏ iﾐaﾐIial fヴaud.

BUILDING A “TRONG FOUNDATION

Iﾏagiﾐe Huildiﾐg ┞ouヴ house oﾐ saﾐd. Wheﾐ the iヴst ヴaiﾐstoヴﾏ Hlo┘s thヴough, ┞ouヴ ﾐe┘ house ┘ill ﾏost likel┞ He ┘ashed out to sea. Without plaIiﾐg ┞ouヴ house oﾐ a solid fouﾐdaioﾐ ┞ou Iaﾐ ﾐot ┘eatheヴ a disasteヴ. Buildiﾐg a fouﾐdaioﾐ of kﾐo┘ledge aHout the ﾏoヴtgage pヴoIess is eケuall┞ iﾏpoヴtaﾐt. Heヴe aヴe i┗e steps to help ┞ou Hegiﾐ ┞ouヴ jouヴﾐe┞: Begiﾐﾐiﾐg Your Jourﾐey

ヱ. Befoヴe ┞ou Hu┞ a hoﾏe, ateﾐd a fヴee hoﾏeo┘ﾐeヴship eduIaioﾐ Iouヴse ofeヴed H┞ a HUD-appヴo┗ed housiﾐg Iouﾐseliﾐg oヴgaﾐizaioﾐ oヴ ageﾐI┞.

ヲ. Gatheヴ all ┞ouヴ iﾐaﾐIial doIuﾏeﾐts, IheIk ┞ouヴ Iヴedit histoヴ┞ aﾐd i┝ aﾐ┞ Hleﾏishes oﾐ ┞ouヴ Iヴedit Hefoヴe ┞ou appl┞ foヴ a loaﾐ.

ン. Deteヴﾏiﾐe ho┘ ﾏuIh hoﾏe ┞ou Iaﾐ afoヴd.

ヴ. Keep aIIuヴate ﾐotes, ﾏake a ile aﾐd keep all loaﾐ doIuﾏeﾐts aﾐd IoヴヴespoﾐdeﾐIe iﾐ that ile.

ヵ. “hop foヴ a leﾐdeヴ aﾐd Ioﾏpaヴe Iosts. Be suspiIious if aﾐ┞oﾐe tヴies to steeヴ ┞ou to just oﾐe leﾐdeヴ. CoﾐtaIt the Washiﾐgtoﾐ “tate Depaヴtﾏeﾐt of FiﾐaﾐIial Iﾐsituioﾐs to eﾐsuヴe that ┞ou’ヴe ┘oヴkiﾐg ┘ith a liIeﾐsed pヴofessioﾐal.

CoﾐstruIioﾐ Cre┘

Whetheヴ ┞ou’ヴe Hu┞iﾐg a hoﾏe foヴ the iヴst iﾏe oヴ ヴeiﾐaﾐIiﾐg a loaﾐ foヴ the thiヴd iﾏe, it’s iﾏpoヴtaﾐt to kﾐo┘ ┘ho the ﾏaiﾐ pla┞eヴs aヴe aﾐd ┘hat ヴoles the┞ pla┞ iﾐ the tヴaﾐsaIioﾐ.

Heヴe aヴe “oﾏe Iﾐiial IﾐtヴoduIioﾐs: Boヴヴo┘eヴ: a peヴsoﾐ ┘ho has Heeﾐ appヴo┗ed to ヴeIei┗e a loaﾐ aﾐd is theﾐ oHligated to ヴepa┞ the loaﾐ aﾐd aﾐ┞ addiioﾐal fees aIIoヴdiﾐg to the loaﾐ teヴﾏs. “elliﾐg Ageﾐt: the ヴeal estate ageﾐt ヴepヴeseﾐiﾐg the Hu┞eヴ ヴatheヴ thaﾐ lisiﾐg the pヴopeヴt┞. The lisiﾐg aﾐd selliﾐg ageﾐt ﾏa┞ He the saﾏe peヴsoﾐ oヴ Ioﾏpaﾐ┞. Lisiﾐg Ageﾐt: a ヴeal estate ageﾐt ┘ho ヴepヴeseﾐts the selleヴ aﾐd ┘oヴks to sell a pヴopeヴt┞. Moヴtgage Bヴokeヴ: aﾐ┞ peヴsoﾐ ┘ho, foヴ Ioﾏpeﾐsaioﾐ oヴ gaiﾐ, assists a peヴsoﾐ iﾐ oHtaiﾐiﾐg oヴ appl┞iﾐg to oHtaiﾐ a ヴesideﾐial ﾏoヴtgage loaﾐ.

Loaﾐ Oヴigiﾐatoヴ: a liIeﾐsed iﾐdi┗idual ┘oヴkiﾐg foヴ ﾐoﾐ-Haﾐk leﾐdeヴs, oヴ a ﾏoヴtgage Hヴokeヴ ┘ho takes a ヴesideﾐial ﾏoヴtgage loaﾐ appliIaioﾐ oヴ ofeヴs oヴ ﾐegoiates teヴﾏs of a ﾏoヴtgage loaﾐ, foヴ diヴeIt oヴ iﾐdiヴeIt Ioﾏpeﾐsaioﾐ oヴ gaiﾐ.

Leﾐdeヴ ふa Baﾐk, Cヴedit Uﾐioﾐ, oヴ Noﾐ-Baﾐk Leﾐdeヴぶ: any peヴsoﾐ oヴ eﾐit┞ loaﾐiﾐg fuﾐds ┘hiIh aヴe to He ヴepaid.

Loaﾐ OiIeヴ: aﾐ iﾐdi┗idual ┘oヴkiﾐg foヴ a Haﾐk oヴ Iヴedit uﾐioﾐ ┘ho takes a ヴesideﾐial ﾏoヴtgage loaﾐ appliIaioﾐ oヴ ofeヴs oヴ ﾐegoiates teヴﾏs of a ﾏoヴtgage loaﾐ, foヴ Ioﾏpeﾐsaioﾐ oヴ gaiﾐ.

Title Coﾏpaﾐ┞/Title IﾐsuヴaﾐIe Coﾏpaﾐ┞: a Ioﾏpaﾐ┞ that issues aﾐ iﾐsuヴaﾐIe poliI┞ that guaヴaﾐtees aﾐ o┘ﾐeヴ has itle to ヴeal pヴopeヴt┞ aﾐd Iaﾐ legall┞ tヴaﾐsfeヴ it to soﾏeoﾐe else. A itle poliI┞ ﾏa┞ pヴoteIt the ﾏoヴtgage leﾐdeヴ, the hoﾏe Hu┞eヴ, oヴ Hoth.

Appヴaiseヴ: a liIeﾐsed iﾐdi┗idual ┘ho uses his oヴ heヴ e┝peヴieﾐIe aﾐd kﾐo┘ledge to deteヴﾏiﾐe the ┗alue of a hoﾏe aﾐd pヴepaヴe the appヴaisal esiﾏate. IﾐspeItoヴ: a liIeﾐsed iﾐdi┗idual ┘ho iﾐspeIts aﾐd doIuﾏeﾐts the ph┞siIal Ioﾐdiioﾐ of the pヴopeヴt┞ as desIヴiHed aﾐd ┗eヴiied iﾐ aﾐ iﾐspeIioﾐ IeヴiiIate. EsIヴo┘ Ageﾐt/AgeﾐI┞: the peヴsoﾐ oヴ oヴgaﾐizaioﾐ ha┗iﾐg a iduIiaヴ┞ ヴespoﾐsiHilit┞ to Hoth the Hu┞eヴ aﾐd selleヴ to see that the teヴﾏs of the puヴIhase/sale ふoヴ loaﾐぶ aヴe Iaヴヴied out. Oteﾐ ヴefeヴヴed to as さIlosiﾐgざ the loaﾐ, iﾐdepeﾐdeﾐt esIヴo┘ ageﾐts, itle Ioﾏpaﾐies, atoヴﾐe┞s aﾐd e┗eﾐ the leﾐdeヴ ﾏa┞ seヴ┗e iﾐ this ヴole.

Understanding Your Credit Cヴedit pヴo┗ides a ┘a┞ to aIケuiヴe ﾏeヴIhaﾐdise oヴ ﾏoﾐe┞ ┘ith the uﾐdeヴstaﾐdiﾐg that ┞ou ┘ill ヴepa┞ the loaﾐ. Youヴ histoヴ┞ foヴ pa┞iﾐg ┞ouヴ Hills oﾐ iﾏe is IolleIted H┞ Iヴedit Huヴeaus oヴ Iヴedit-ヴepoヴiﾐg ageﾐIies. These Husiﾐesses gatheヴ, ﾏaiﾐtaiﾐ, aﾐd sell iﾐfoヴﾏaioﾐ aHout Ioﾐsuﾏeヴs’ Iヴedit histoヴies. The┞ IolleIt iﾐfoヴﾏaioﾐ aHout ┞ouヴ pa┞ﾏeﾐt haHits fヴoﾏ Haﾐks, Iヴedit uﾐioﾐs, iﾐaﾐIe Ioﾏpaﾐies, oヴ ヴetaileヴs.

Wh┞ is Youヴ Cヴedit Iﾏpoヴtaﾐt?

Geﾐeヴall┞ leﾐdeヴs look at se┗eヴal thiﾐgs: ┞ouヴ iﾐIoﾏe, ┞ouヴ do┘ﾐ pa┞ﾏeﾐt oヴ eケuit┞, ┞ouヴ Iヴedit histoヴ┞, ho┘ ﾏuIh ﾏoﾐe┞ ┞ou’┗e sa┗ed, aﾐd the pヴopeヴt┞ ┞ou plaﾐ to puヴIhase oヴ ヴeiﾐaﾐIe. Wheﾐ stud┞iﾐg ┞ouヴ Iヴedit histoヴ┞, alﾏost all leﾐdeヴs look at ┞ouヴ Iヴedit sIoヴe aﾐd ┞ouヴ deHt-to-iﾐIoﾏe ヴaio. Leﾐdeヴs use Iヴedit sIoヴes, kﾐo┘ﾐ

as FICO sIoヴes oヴ Vaﾐtage“Ioヴe, as aﾐ iﾏpoヴtaﾐt faItoヴ iﾐ the deIisioﾐ ┘hetheヴ oヴ ﾐot to ofeヴ Iヴedit - aﾐd at ┘hat iﾐteヴest ヴate. The sIoヴes Iaﾐ ヴaﾐge fヴoﾏ ンヰヰ to Γヰヰ+ poiﾐts.

Credit ProHleﾏs?

If ┞ou ha┗e a lo┘eヴ Iヴedit sIoヴe, doﾐ’t assuﾏe that ┞ouヴ IhoiIes aヴe liﾏited to high-Iost loaﾐs. If ┞ouヴ Iヴedit ヴepoヴt Ioﾐtaiﾐs ﾐegai┗e iﾐfoヴﾏaioﾐ that is aIIuヴate Hut steﾏﾏiﾐg fヴoﾏ uﾐiケue IiヴIuﾏstaﾐIes suIh as illﾐess oヴ teﾏpoヴaヴ┞ loss of iﾐIoﾏe, He suヴe to e┝plaiﾐ ┞ouヴ situaioﾐ to the leﾐdeヴ oヴ Hヴokeヴ. Take the iﾏe to shop aヴouﾐd aﾐd ﾐegoiate the Hest deal foヴ ┞ou. If ┞ou’ヴe Iuヴヴeﾐtl┞ ha┗iﾐg Iヴedit pヴoHleﾏs, ┞ou should ┘oヴk ┘ith a HUD-appヴo┗ed Iヴedit Iouﾐseliﾐg oヴgaﾐizaioﾐ oヴ ageﾐI┞. Maﾐ┞ ofeヴ Iヴedit Iouﾐseliﾐg fヴee of Ihaヴge oヴ foヴ a ﾐoﾏiﾐal fee. Uﾐdeヴstaﾐd ┞ou ﾏa┞ ﾐot He iﾐ a posiioﾐ to Hu┞ a house uﾐil ┞ouヴ Iヴedit issues aヴe ヴesol┗ed.

The Follo┘iﾐg Coﾐdiioﾐs Will Pla┞ a FaItoヴ iﾐ Youヴ Moヴtgage Leﾐdeヴ’s DeIisioﾐ to Pヴo┗ide You With a Loaﾐ: BaﾐkヴuptI┞: Iﾐ ﾏost Iases, leﾐdeヴs pヴefeヴ that ┞ou ┘ait at least t┘o ┞eaヴs ateヴ a HaﾐkヴuptI┞ is Ilosed Hefoヴe takiﾐg oﾐ aﾐotheヴ laヴge deHt suIh as a hoﾏe loaﾐ. BaﾐkヴuptIies Iaﾐ ヴeﾏaiﾐ oﾐ ┞ouヴ Iヴedit ヴepoヴt foヴ up to ヱヰ ┞eaヴs. It ﾏa┞ He helpful foヴ ┞ou to e┝plaiﾐ the IiヴIuﾏstaﾐIes of the HaﾐkヴuptI┞ to the leﾐdeヴ. FoヴeIlosuヴe: Ha┗iﾐg a foヴeIlosuヴe oﾐ ┞ouヴ ヴeIoヴds doesﾐ’t ﾏeaﾐ that ┞ou Iaﾐ ﾐe┗eヴ Hu┞ aﾐotheヴ house. The ﾏoヴtgage leﾐdeヴ ┘ill, ho┘e┗eヴ, ┘aﾐt to kﾐo┘ the ヴeasoﾐs foヴ ┞ouヴ foヴeIlosuヴe. Most leﾐdeヴs ┘ill e┝peIt ┞ou to ┘ait thヴee ┞eaヴs ateヴ a foヴeIlosuヴe Hefoヴe ┞ou appl┞ foヴ a ﾐe┘ ﾏoヴtgage.

DeHts: Ha┗iﾐg too ﾏuIh deHt ﾏa┞ lo┘eヴ the IhaﾐIes foヴ ┞ou to Hu┞ a hoﾏe oヴ ヴeiﾐaﾐIe a ﾏoヴtgage. Makiﾐg late pa┞ﾏeﾐts oヴ skippiﾐg pa┞ﾏeﾐts ┘ill sho┘ as deヴogatoヴ┞ oヴ ﾐegai┗e iteﾏs oﾐ ┞ouヴ Iヴedit ヴepoヴt. Takiﾐg steps to iﾏpヴo┗e ┞ouヴ Iヴedit ヴeIoヴd is oﾐe of the ﾏost iﾏpoヴtaﾐt thiﾐgs ┞ou Iaﾐ do.

Credit Reports

A Ioﾐsuﾏeヴ Iヴedit ヴepoヴt is a doIuﾏeﾐt that Ioﾐtaiﾐs a ヴeIoヴd of ┞ouヴ Iヴedit pa┞ﾏeﾐt histoヴ┞. The ヴepoヴt Ioﾐtaiﾐs fouヴ t┞pes of iﾐfoヴﾏaioﾐ: ideﾐif┞iﾐg iﾐfoヴﾏaioﾐ, Iヴedit iﾐfoヴﾏaioﾐ, puHliI ヴeIoヴd iﾐfoヴﾏaioﾐ, aﾐd iﾐケuiヴies.

Ideﾐifyiﾐg Iﾐforﾏaioﾐ IﾐIludes:

• Youヴ ﾐaﾏe

• Youヴ Iuヴヴeﾐt aﾐd pヴe┗ious addヴesses

• Youヴ “oIial “eIuヴit┞ ﾐuﾏHeヴ

• Youヴ ┞eaヴ of Hiヴth

• Youヴ Iuヴヴeﾐt aﾐd pヴe┗ious eﾏplo┞eヴs

• If ┞ou’ヴe ﾏaヴヴied, ┞ouヴ spouse’s ﾐaﾏe

• Cヴedit iﾐfoヴﾏaioﾐ iﾐIludes Iヴedit aIIouﾐts oヴ loaﾐs

┞ou ha┗e ┘ith:

• Baﾐks

• Retaileヴs

• Credit card issuers

• Otheヴ leﾐdeヴs

The iﾐfoヴﾏaioﾐ Ioﾐtaiﾐed oﾐ ┞ouヴ Iヴedit ヴepoヴt ヴeﾏaiﾐs foヴ se┗eﾐ ┞eaヴs fヴoﾏ the date it’s iヴst ヴepoヴted, aﾐd theﾐ I┞Iles of autoﾏaiIall┞.

TIP: The Iヴedit Huヴeaus ┘ill gi┗e ┞ou oﾐe fヴee Iop┞ of ┞ouヴ Iヴedit ヴepoヴt aﾐﾐuall┞.

To oヴdeヴ a Iop┞ of ┞ouヴ Iヴedit ヴepoヴt, IoﾐtaIt ┘┘┘.aﾐﾐualIヴeditヴepoヴt.Ioﾏ

or

• Eケuifa┝ ┘┘┘.eケuifa┝.Ioﾏ OR Call ヱ.Βヰヰ.ヶΒヵ.ヱヱヱヱ

• E┝peヴiaﾐ ┘┘┘.e┝peヴiaﾐ.Ioﾏ OR ヱ.ΒΒΒ EXPERIAN ふヱ.ΒΒΒ.ンΓΑ.ンΑヴヲぶ

• TヴaﾐsUﾐioﾐ ┘┘┘.tuI.Ioﾏ OR Call ヱ.Βヰヰ.Γヱヶ.ΒΒヰヰ

TIP: If ┞ou’┗e Heeﾐ deﾐied Iヴedit HeIause of iﾐfoヴﾏaioﾐ oﾐ ┞ouヴ Iヴedit ヴepoヴt, the leﾐdeヴ is ヴeケuiヴed to pヴo┗ide ┞ou ┘ith the Iヴedit Huヴeau’s ﾐaﾏe, addヴess, aﾐd telephoﾐe ﾐuﾏHeヴ – aﾐd ┞ou’ヴe eﾐitled to a fヴee Iop┞ of ┞ouヴ ヴepoヴt fヴoﾏ that Iヴedit Huヴeau. The Iヴedit ヴepoヴiﾐg iﾐdustヴ┞ is ヴegulated H┞ the fedeヴal Faiヴ Cヴedit Repoヴiﾐg AIt, ┘hiIh is adﾏiﾐisteヴed H┞ the Fedeヴal Tヴade Coﾏﾏissioﾐ ふFTCぶ.

Ho┘ MuIh Hoﾏe Caﾐ You Aford? Deteヴﾏiﾐiﾐg ho┘ ﾏuIh ┞ou Iaﾐ afoヴd is aﾐ iﾏpoヴtaﾐt iヴst step iﾐ shoppiﾐg. Ho┘ ﾏuIh ┘ill ┞ouヴ ﾏoﾐthl┞ pa┞ﾏeﾐts He? Take iﾐto Ioﾐsideヴaioﾐ futuヴe Ihaﾐges iﾐ ┞ouヴ household iﾐIoﾏe. Aヴe ┞ou aﾐiIipaiﾐg a pヴoﾏoioﾐ at ┘oヴk that ┘ould iﾐIヴease ┞ouヴ salaヴ┞? Will ┞ou He adjusiﾐg fヴoﾏ a douHle iﾐIoﾏe faﾏil┞ to a siﾐgle iﾐIoﾏe iﾐ the Ioﾏiﾐg ┞eaヴs? If the iﾐteヴest ヴate is adjustaHle - Iaﾐ ┞ou afoヴd the laヴgeヴ pa┞ﾏeﾐt ┘heﾐ the ヴates iﾐIヴease? Youヴ deHt-to-iﾐIoﾏe ヴaio is the aﾏouﾐt of deHt pa┞ﾏeﾐts peヴ ﾏoﾐth di┗ided H┞ the aﾏouﾐt of ┞ouヴ iﾐIoﾏe peヴ ﾏoﾐth. This ヴaio helps leﾐdeヴs deIide ho┘ laヴge a ﾏoﾐthl┞ pa┞ﾏeﾐt ┞ou Iaﾐ afoヴd.

Iﾐ addiioﾐ to the leﾐdeヴ kﾐo┘iﾐg ┘hat ┞ou Iaﾐ afoヴd, ┞ou ﾏust He IoﾏfoヴtaHle ┘ith the size of ┞ouヴ ﾏoﾐthl┞ pa┞ﾏeﾐt. Oﾐe ┘a┞ to do this is to uilize a ﾏoヴtgage IalIulatoヴ. This Iaﾐ He fouﾐd oﾐ-liﾐe, aﾐd is aﾐ eas┞-to-use tool to help ┞ou deteヴﾏiﾐe ho┘ ﾏuIh ┞ou Iaﾐ afoヴd. Geﾐeヴall┞, ┞ouヴ ﾏoﾐthl┞ housiﾐg e┝peﾐses, iﾐIludiﾐg pヴiﾐIipal, iﾐteヴest, pヴopeヴt┞ ta┝es, aﾐd hoﾏeo┘ﾐeヴs iﾐsuヴaﾐIe should ﾐot e┝Ieed ヲΒ peヴIeﾐt of ┞ouヴ gヴoss ﾏoﾐthl┞ iﾐIoﾏe. Youヴ total loﾐg teヴﾏ ﾏoﾐthl┞ oHligaioﾐs ふsuIh as housiﾐg e┝peﾐses, plus Iaヴ pa┞ﾏeﾐts, iﾐsuヴaﾐIe, studeﾐt loaﾐs, Ihild Iaヴe, etI.ぶ should ﾐot e┝Ieed ンヶ peヴIeﾐt of ┞ouヴ gヴoss ﾏoﾐthl┞ iﾐIoﾏe. Uﾐderstaﾐdiﾐg the Types of Mortgages Wheﾐ seaヴIhiﾐg foヴ a ﾏoヴtgage, it’s iﾏpoヴtaﾐt to Ihoose the Hest loaﾐ pヴogヴaﾏ that its ┞ouヴ peヴsoﾐal ┘aﾐts aﾐd ﾐeeds. The ヴight t┞pe of ﾏoヴtgage foヴ ┞ou depeﾐds oﾐ ﾏaﾐ┞ difeヴeﾐt faItoヴs, suIh as:

• Youヴ Iuヴヴeﾐt iﾐaﾐIial piItuヴe.

• Ho┘ ┞ou e┝peIt ┞ouヴ iﾐaﾐIes to Ihaﾐge.

• Ho┘ loﾐg ┞ou iﾐteﾐd to keep ┞ouヴ house.

• Youヴ aHilit┞ to adjust to a Ihaﾐgiﾐg ﾏoヴtgage pa┞ﾏeﾐt.

The Hest ┘a┞ to iﾐd the さヴightざ aﾐs┘eヴ is to disIuss ┞ouヴ Iuヴヴeﾐt iﾐaﾐIes, ┞ouヴ plaﾐs aﾐd iﾐaﾐIial pヴospeIts, aﾐd ┞ouヴ pヴefeヴeﾐIes ┘ith a ヴeal estate oヴ ﾏoヴtgage pヴofessioﾐal.

Coﾏﾏoﾐ T┞pes of Moヴtgages You “hould Kﾐo┘ AHout: Fi┝ed-Rated Moヴtgage: A ﾏoヴtgage oﾐ ┘hiIh the iﾐteヴest ヴate sta┞s the saﾏe foヴ the teヴﾏ of the loaﾐ. AdjustaHle Rate Moヴtgage ふARMぶ: A ﾏoヴtgage iﾐ ┘hiIh the iﾐteヴest ヴate ﾏa┞ peヴiodiIall┞ adjust Hased oﾐ a pヴe-seleIted iﾐde┝ aﾐd a ﾏaヴgiﾐ. The ARM is also kﾐo┘ﾐ as a ┗aヴiaHle ヴate ﾏoヴtgage. These t┞pes of loaﾐs ﾏa┞ ha┗e lo┘eヴ ﾏoﾐthl┞ pa┞ﾏeﾐts iﾐiiall┞, Hut Iaﾐ ヴesult iﾐ ﾐegai┗e aﾏoヴizaioﾐ oヴ higheヴ ﾏoﾐthl┞ pa┞ﾏeﾐts ateヴ a ヴate adjustﾏeﾐt. Negai┗e Aﾏoヴizaioﾐ ふNegAﾏぶ oIIuヴs ┘heﾐ the loaﾐ pa┞ﾏeﾐts duヴiﾐg a peヴiod do ﾐot Io┗eヴ the iﾐteヴest aIIヴued, that o┗eヴ iﾏe, ヴesults iﾐ a higheヴ pヴiﾐIipal HalaﾐIe thaﾐ the aﾏouﾐt of the oヴigiﾐal loaﾐ. Ballooﾐ ふpa┞ﾏeﾐtぶ Moヴtgage: Usuall┞ a shoヴt teヴﾏ i┝ed-ヴate loaﾐ that iﾐ┗ol┗es sﾏalleヴ pa┞ﾏeﾐts foヴ a Ieヴtaiﾐ peヴiod of iﾏe, aﾐd oﾐe laヴge pa┞ﾏeﾐt at the eﾐd of the teヴﾏ of the loaﾐ.

Blaﾐket Moヴtgage: Oﾐe ﾏoヴtgage seIuヴiﾐg se┗eヴal pieIes of ヴeal estate.

Bヴidge Loaﾐ: A ﾏoヴtgage seIuヴiﾐg a pieIe of pヴopeヴt┞

upoﾐ ┘hiIh a house ┘ill He Huilt. The loaﾐ ┘ill He paid of H┞ seIuヴiﾐg iﾐaﾐIiﾐg foヴ the Ioﾏpleted hoﾏe. Coﾐ┗eﾐioﾐal loaﾐ: A ﾏoヴtgage ﾐot iﾐsuヴed H┞ the Fedeヴal Housiﾐg Adﾏiﾐistヴaioﾐ ふFHAぶ oヴ guaヴaﾐteed H┞ the Veteヴaﾐs Adﾏiﾐistヴaioﾐ ふVAぶ.

FHA Loaﾐ: A loaﾐ iﾐsuヴed H┞ the Fedeヴal Housiﾐg Adﾏiﾐistヴaioﾐ, opeﾐ to all ケualiied hoﾏe puヴIhaseヴs, ┘hiIh ヴeケuiヴes a lo┘eヴ do┘ﾐ pa┞ﾏeﾐt – t┞piIall┞ ン peヴIeﾐt – thaﾐ a Ioﾐ┗eﾐioﾐal loaﾐ. This pヴogヴaﾏ allo┘s Hu┞eヴs ┘ho ﾏight ﾐot otheヴ┘ise ケualif┞ foヴ a hoﾏe loaﾐ to oHtaiﾐ oﾐe HeIause the ヴisk is ヴeﾏo┗ed fヴoﾏ the leﾐdeヴ H┞ FHA iﾐsuヴaﾐIe. While theヴe aヴe liﾏits oﾐ the aﾏouﾐt of aﾐ FHA loaﾐ, the┞ aヴe t┞piIall┞ geﾐeヴous eﾐough to haﾐdle ﾏodeヴatel┞ pヴiIed hoﾏes alﾏost aﾐ┞┘heヴe iﾐ the Iouﾐtヴ┞.

Iﾐteヴest Oﾐl┞ Moヴtgage: A t┞pe of ARM iﾐ ┘hiIh the Hoヴヴo┘eヴ pa┞s oﾐl┞ iﾐteヴest oﾐ the pヴiﾐIipal of the loaﾐ foヴ a set peヴiod of iﾏe, follo┘ed H┞ a peヴiod of laヴgeヴ pa┞ﾏeﾐts that iﾐIlude iﾐteヴest aﾐd pヴiﾐIipal, oヴ a Hallooﾐ pa┞ﾏeﾐt.

Re┗eヴse Moヴtgage: A t┞pe of hoﾏe loaﾐ that lets a hoﾏeo┘ﾐeヴ Ioﾐ┗eヴt a poヴioﾐ of the eケuit┞ iﾐ theiヴ hoﾏe to Iash. AIIoヴdiﾐg to the Fedeヴal Tヴade Coﾏﾏissioﾐ, theヴe aヴe thヴee t┞pes of ヴe┗eヴse ﾏoヴtgages:

• siﾐgle-puヴpose ヴe┗eヴse ﾏoヴtgages, ofeヴed H┞ soﾏe state aﾐd loIal go┗eヴﾐﾏeﾐt ageﾐIies aﾐd ﾐoﾐpヴoit oヴgaﾐizaioﾐs.

• Fedeヴall┞-iﾐsuヴed ヴe┗eヴse ﾏoヴtgages, kﾐo┘ﾐ as Hoﾏe Eケuit┞ Coﾐ┗eヴsioﾐ Moヴtgages ふHECMsぶ aﾐd HaIked H┞ the U. “. Depaヴtﾏeﾐt of Housiﾐg aﾐd UヴHaﾐ De┗elopﾏeﾐt ふHUDぶ.

• pヴopヴietaヴ┞ ヴe┗eヴse ﾏoヴtgages, pヴi┗ate loaﾐs that aヴe HaIked H┞ the leﾐdeヴs that de┗elop theﾏ. Uﾐlike a tヴadiioﾐal ﾏoヴtgage loaﾐ, ﾐo ヴepa┞ﾏeﾐt is ヴeケuiヴed uﾐil the Hoヴヴo┘eヴ ﾐo loﾐgeヴ oIIupies the hoﾏe as theiヴ pヴiﾐIipal ヴesideﾐIe. Boヴヴo┘eヴs ﾏust, iﾐ go┗eヴﾐﾏeﾐt-HaIked ヴe┗eヴse ﾏoヴtgage pヴoduIts, He o┗eヴ the age of ヶヲ, aﾐd ﾏust ateﾐd a Iouﾐseliﾐg Ilass aﾐd ヴeIei┗e a IeヴiiIate to ┗eヴif┞ the┞ uﾐdeヴstaﾐd the loaﾐ teヴﾏs.

“uHpヴiﾏe Leﾐdeヴ/Loaﾐs: A leﾐdeヴ that pヴo┗ides Iヴedit to Hoヴヴo┘eヴs ┘ho do ﾐot ﾏeet pヴiﾏe uﾐdeヴ┘ヴiiﾐg guideliﾐes aﾐd oteﾐ Ihaヴges a iﾐaﾐIe ヴate that is higheヴ thaﾐ the さpヴiﾏeざ oヴ ﾐoヴﾏal ヴate ofeヴed to Hoヴヴo┘eヴs ┘ith good Iヴedit. T┞piIall┞, it’s a leﾐdeヴ that appヴo┗es loaﾐs foヴ iﾐdi┗iduals ┘ho ﾏa┞ ha┗e pooヴ

Iヴedit histoヴ┞ oヴ ﾐo Iヴedit histoヴ┞, oヴ ┘ho ha┗e otheヴ IhaヴaIteヴisiIs that jusif┞ a higheヴ ヴate. BeIause ┞ou’ヴe appヴo┗ed foヴ a suHpヴiﾏe loaﾐ doesﾐ’t ﾏeaﾐ that ┞ou Iaﾐﾐot ケualif┞ foヴ a pヴiﾏe ヴate loaﾐ fヴoﾏ aﾐotheヴ leﾐdeヴ. Be suヴe to e┝ploヴe ┞ouヴ opioﾐs. If ┞ou aヴe a iヴst-iﾏe hoﾏe Hu┞eヴ aﾐd the loaﾐ ┞ou aヴe Ioﾐsideヴiﾐg ofeヴs a pa┞ﾏeﾐt sIhedule that Iauses the pヴiﾐIipal HalaﾐIe to iﾐIヴease, ┞ou ﾏa┞ He ヴeケuiヴed to oHtaiﾐ Iouﾐseliﾐg Hefoヴe the loaﾐ Iaﾐ Ilose.

VA Loaﾐ: Loaﾐs ﾏade to ┗eteヴaﾐs that aヴe guaヴaﾐteed H┞ the Depaヴtﾏeﾐt of Veteヴaﾐs Afaiヴs. Uﾐderstaﾐdiﾐg The Costs of Geiﾐg A Mortgage Do┘ﾐ pa┞ﾏeﾐts, ヴates, poiﾐts, aﾐd fees Iaﾐ ﾏake a loaﾐ that looks good at iヴst glaﾐIe Ihaﾐge iﾐto soﾏethiﾐg else oﾐIe all the faIts aヴe kﾐo┘ﾐ. Kﾐo┘iﾐg the aﾏouﾐt of the ﾏoﾐthl┞ pa┞ﾏeﾐt aﾐd the iﾐteヴest ヴate is ﾐot eﾐough. Be suヴe to get iﾐfoヴﾏaioﾐ aHout poteﾐial loaﾐs fヴoﾏ se┗eヴal leﾐdeヴs oヴ ﾏoヴtgage Hヴokeヴs aﾐd iﾐd out all of the Iosts iﾐ┗ol┗ed ┘ith eaIh. Wheﾐ Ioﾏpaヴiﾐg loaﾐs, ﾏake suヴe ┞ou’ヴe ヴe┗ie┘iﾐg the saﾏe iﾐfoヴﾏaioﾐ iﾐ eaIh loaﾐ suIh as loaﾐ aﾏouﾐt, loaﾐ teヴﾏ, t┞pe of loaﾐ, ﾏoﾐthl┞ pa┞ﾏeﾐt, peﾐalies aﾐd featuヴes, aﾐﾐual peヴIeﾐtage ヴate ふAPRぶ, Iost of iﾐaﾐIiﾐg, aﾐd do┘ﾐ pa┞ﾏeﾐt.

TIP: Ask aHout the loaﾐ’s APR. The APR takes iﾐto aIIouﾐt ﾐot oﾐl┞ the iﾐteヴest ヴate Hut also poiﾐts, fees, aﾐd Ieヴtaiﾐ otheヴ Ihaヴges that ┞ou ﾏa┞ He ヴeケuiヴed to pa┞, aﾐd is e┝pヴessed as a ┞eaヴl┞ peヴIeﾐtage ヴate. This ┘ill speIiiIall┞ tell ┞ou the Iost of ┘hat ┞ou’ヴe Hoヴヴo┘iﾐg aﾐd ┘ill allo┘ ┞ou to Ioﾏpaヴe the Iosts of oﾐe loaﾐ to aﾐotheヴ.

TIP: DoIuﾏeﾐt e┗eヴ┞thiﾐg iﾐ ┘ヴiiﾐg. A dail┞ jouヴﾐal of all Ioﾐ┗eヴsaioﾐs Iaﾐ He a po┘eヴful tool iﾐ ヴesol┗iﾐg IoﾐliIts lateヴ.

TIP: Ne┗eヴ take the loaﾐ oヴigiﾐatoヴ’s ┗eヴHal pヴoﾏise oﾐ aﾐ┞ detail oヴ featuヴe of the loaﾐ. Fedeヴal la┘ ヴeケuiヴes the┞ ﾏake Ioﾏﾏitﾏeﾐts iﾐ ┘ヴiiﾐg aﾐd pヴofessioﾐals iﾐ┗ol┗ed should ﾐe┗eヴ hesitate to pヴo┗ide this. If ┞ouヴ loaﾐ oヴigiﾐatoヴ is uﾐ┘illiﾐg to put pヴoﾏises iﾐ ┘ヴiiﾐg shop soﾏe┘heヴe else. You should ﾐot ヴel┞ oﾐ ┗eヴHal pヴoﾏises.

Be “uヴe to OHtaiﾐ aﾐd Coﾏpaヴe the Follo┘iﾐg Iﾐfoヴﾏaioﾐ fヴoﾏ EaIh Leﾐdeヴ aﾐd Moヴtgage Bヴokeヴ: “hop aヴouﾐd foヴ the Hest ヴates aﾐd fees. It is iﾐ ┞ouヴ Hest iﾐteヴest to get at least t┘o oヴ thヴee esiﾏates fヴoﾏ eitheヴ a ﾏoヴtgage Hヴokeヴ oヴ a ﾏoヴtgage leﾐdeヴ. Be suヴe to IheIk to see if ┞ouヴ ﾏoヴtgage loaﾐ oヴigiﾐatoヴ is pヴopeヴl┞ liIeﾐsed to do Husiﾐess ┘ith ┞ou. All ﾏoヴtgage loaﾐ oヴigiﾐatoヴs iﾐ the U.“. ﾐeed to He eitheヴ liIeﾐsed oヴ ヴegisteヴed thヴough the Naioﾐ┘ide Moヴtgage LiIeﾐsiﾐg “┞steﾏ. Theヴe is a lot ┞ou Iaﾐ iﾐd out aHout ┞ouヴ loaﾐ oヴigiﾐatoヴ if ┞ou go to the Coﾐsuﾏeヴ AIIess WeHsite at ┘┘┘.NML“IoﾐsuﾏeヴaIIess.oヴg. Most iﾏpoヴtaﾐtl┞ ┞ou Iaﾐ ┗eヴif┞ that the peヴsoﾐ ┞ou aヴe doiﾐg Husiﾐess ┘ith is pヴopeヴl┞ liIeﾐsed oヴ ヴegisteヴed.

Rates

• Ask eaIh leﾐdeヴ foヴ a list of its Iuヴヴeﾐt ﾏoヴtgage iﾐteヴest ヴates aﾐd ┘hetheヴ the ヴates Heiﾐg ケuoted aヴe the lo┘est foヴ that da┞ oヴ ┘eek.

• Ask ┘hetheヴ the ヴate is i┝ed oヴ adjustaHle. Keep iﾐ ﾏiﾐd that ┘heﾐ iﾐteヴest ヴates foヴ adjustaHle ヴate loaﾐs go up, geﾐeヴall┞ so does the ﾏoﾐthl┞ pa┞ﾏeﾐt.

• If the ヴate ケuoted is foヴ aﾐ adjustaHle-ヴate loaﾐ, ask ho┘ ┞ouヴ ヴate aﾐd loaﾐ pa┞ﾏeﾐt ┘ill ┗aヴ┞, iﾐIludiﾐg ┘hetheヴ ┞ouヴ loaﾐ pa┞ﾏeﾐt ┘ill He ヴeduIed ┘heﾐ ヴates go do┘ﾐ.

• Ask ┘hiIh iﾐde┝ aﾐd ﾏaヴgiﾐ ┘ill He used to deteヴﾏiﾐe the adjusted iﾐteヴest ヴate.

• Fiﾐd out ho┘ fヴeケueﾐtl┞ ┞ouヴ ヴate Iaﾐ adjust ふﾏoﾐthl┞, si┝ ﾏoﾐths, oヴ aﾐﾐuall┞ぶ aﾐd ho┘ ﾏuIh it Iaﾐ Ihaﾐge at eaIh adjustﾏeﾐt ふ┞eaヴl┞ Iaps, lifeiﾏe Iapsぶ.

Poiﾐts

Poiﾐts aヴe aﾐ┞ fees that ┞ou pa┞ that aヴe Hased oﾐ a peヴIeﾐtage of the loaﾐ aﾏouﾐt. DisIouﾐt poiﾐts aヴe fees ┞ou pa┞ to the leﾐdeヴ to ヴeduIe the iﾐteヴest ヴate oﾐ the loaﾐ. Ask to see e┝aItl┞ ho┘ ﾏuIh ┞ouヴ ヴate ┘ill He dヴopped Hased oﾐ the aﾏouﾐt of disIouﾐt poiﾐts ┞ou pa┞. Foヴ e┝aﾏple, pa┞iﾐg ヰ.ヵヰ peヴIeﾐt of the loaﾐ aﾏouﾐt iﾐ disIouﾐt poiﾐts ﾏa┞ adjust the loaﾐ ヴate do┘ﾐ┘aヴd H┞ ヰ.ヲヵ peヴIeﾐt. EaIh pヴogヴaﾏ aﾐd leﾐdeヴ ┘ill use a difeヴeﾐt foヴﾏula aﾐd the aﾏouﾐts of poiﾐts ┘ill Ihaﾐge dail┞ as ﾏaヴket ヴates Ihaﾐge.

• CheIk oﾐliﾐe oヴ iﾐ soﾏe loIal ﾐe┘spapeヴ Husiﾐess seIioﾐs foヴ iﾐfoヴﾏaioﾐ aHout Iuヴヴeﾐt ヴates aﾐd poiﾐts.

• Ask foヴ poiﾐts to He ケuoted to ┞ou as a dollaヴ aﾏouﾐt – ヴatheヴ thaﾐ just as the ﾐuﾏHeヴ of poiﾐts oヴ peヴIeﾐtage – so that ┞ou ┘ill aItuall┞ kﾐo┘ ho┘ ﾏuIh ┞ou ┘ill ha┗e to pa┞. Note the tヴade of Het┘eeﾐ poiﾐts aﾐd ヴates aﾐd Ioﾏpaヴe ┞ouヴ shoヴt-teヴﾏ ﾐeeds agaiﾐst ┞ouヴ loﾐg-teヴﾏ ﾐeeds. Heヴe is aﾐ e┝aﾏple Hased oﾐ a $ヱヰヰ,ヰヰヰ, ンヰ ┞eaヴ i┝ed ヴate ﾏoヴtgage at a ヶ.ヵ peヴIeﾐt iﾐteヴest ヴate:

Iﾐ the aHo┗e e┝aﾏple, it ┘ould Iost ┞ou $ヲヵヰ to sa┗e $ヱヶ a ﾏoﾐth iﾐ ┞ouヴ pa┞ﾏeﾐt. Oﾐl┞ ┞ou Iaﾐ deteヴﾏiﾐe if this is a HeﾐeiIial tヴade of foヴ ┞ou. Ask ┞ouヴself ┘hetheヴ ┞ou

Iaﾐ afoヴd the e┝tヴa Iash up fヴoﾐt ヴight ﾐo┘ aﾐd theﾐ ﾐote the follo┘iﾐg:

ヱ. The $ヲヵヰ ヴepa┞s itself iﾐ appヴo┝iﾏatel┞ ヱヶ ﾏoﾐths ふdi┗idiﾐg $ヲヵヰ H┞ $ヱヶ eケuals ヱヵ.ヶン ﾏoﾐthsぶ. E┗eヴ┞ ﾏoﾐth ┞ou keep the loaﾐ ateヴ this poiﾐt ┞ou ┘ill He さﾏakiﾐgざ aﾐ e┝tヴa $ヱヶ peヴ ﾏoﾐth. O┗eヴ the ﾐe┝t ンヴヴ ﾏoﾐths this eケuates to $ヵ,ヵヰヴ.

ヲ. O┗eヴ the life of the loaﾐ, this $ヲヵヰ iﾐ┗estﾏeﾐt also sa┗es ┞ou appヴo┝iﾏatel┞ $ヵ,ΒΒヶ iﾐ iﾐteヴest.

TIP: CAUTION: You should ﾐot diヴeItl┞ pa┞ a ﾏoヴtgage Hヴokeヴ foヴ disIouﾐt poiﾐts HeIause the┞ doﾐ’t set the ヴate; the leﾐdeヴ does.

Fees

A hoﾏe loaﾐ oteﾐ iﾐ┗ol┗es ﾏaﾐ┞ fees, suIh as loaﾐ oヴigiﾐaioﾐ fees, uﾐdeヴ┘ヴiiﾐg fees, Hヴokeヴ fees, tヴaﾐsaIioﾐ, setleﾏeﾐt, aﾐd thiヴd paヴt┞ Iosts. E┗eヴ┞ leﾐdeヴ oヴ Hヴokeヴ ﾏust gi┗e ┞ou aﾐ esiﾏate of these fees ┘heﾐ ┞ou appl┞ foヴ a ﾏoヴtgage loaﾐ. Maﾐ┞ of these fees aヴe ﾐegoiaHle. “oﾏe fees aヴe paid ┘heﾐ ┞ou appl┞ foヴ a loaﾐ ふsuIh as Iヴedit ヴepoヴt aﾐd appヴaisal feesぶ, aﾐd otheヴs aヴe paid at Ilosiﾐg. Iﾐ soﾏe Iases, ┞ou Iaﾐ iﾐIlude the fees iﾐ ┞ouヴ loaﾐ, Hut doiﾐg so ┘ill iﾐIヴease ┞ouヴ loaﾐ aﾏouﾐt aﾐd total Iosts. さNo Iostざ loaﾐs aヴe soﾏeiﾏes a┗ailaHle, Hut the┞ usuall┞ iﾐ┗ol┗e higheヴ iﾐteヴest ヴates.

• Ask ┘hat eaIh fee Io┗eヴs aﾐd ┘ho ┘ill He ヴeIei┗iﾐg the fee. “e┗eヴal iteﾏs ﾏa┞ He luﾏped iﾐto oﾐe fee

• Ask foヴ aﾐ e┝plaﾐaioﾐ of aﾐ┞ fee ┞ou doﾐ’t uﾐdeヴstaﾐd. “oﾏe Ioﾏﾏoﾐ fees assoIiated ┘ith a hoﾏe loaﾐ Ilosiﾐg aヴe listed oﾐ the Moヴtgage “hoppiﾐg Woヴksheet ふat the HaIk of this ┘oヴkHookぶ.

• Thiヴd paヴt┞ Iosts should He Ihaヴged to ┞ou at the aItual Iost of seヴ┗iIe. Ask to see iﾐ┗oiIes if ┞ou feel ┞ou’ヴe pa┞iﾐg too ﾏuIh.

Do┘ﾐ Pa┞ﾏeﾐts aﾐd Pヴi┗ate Moヴtgage IﾐsuヴaﾐIe “oﾏe leﾐdeヴs ヴeケuiヴe ヲヰ peヴIeﾐt of the hoﾏe’s puヴIhase pヴiIe oヴ ┗alue as a do┘ﾐ pa┞ﾏeﾐt oヴ eケuit┞ iﾐ the loaﾐ. The do┘ﾐ pa┞ﾏeﾐt sets the Loaﾐ to Value oヴ LTV. A ヲヰ peヴIeﾐt do┘ﾐ pa┞ﾏeﾐt eケuates to aﾐ Βヰ peヴIeﾐt LTV. Youヴ leﾐdeヴ ┘ill tell ┞ou theiヴ LTV ヴeケuiヴeﾏeﾐts foヴ eaIh t┞pe of loaﾐ.

Most leﾐdeヴs ofeヴ loaﾐs that ヴeケuiヴe less thaﾐ ヲヰ peヴIeﾐt do┘ﾐ — soﾏeiﾏes as litle as ヰ peヴIeﾐt oﾐ Ioﾐ┗eﾐioﾐal

loaﾐs. If a ヲヰ peヴIeﾐt do┘ﾐ pa┞ﾏeﾐt is ﾐot ﾏade, leﾐdeヴs usuall┞ ヴeケuiヴe the Hoヴヴo┘eヴ to puヴIhase pヴi┗ate ﾏoヴtgage iﾐsuヴaﾐIe ふPMIぶ to pヴoteIt the leﾐdeヴ iﾐ Iase the Hoヴヴo┘eヴ fails to pa┞. Wheﾐ go┗eヴﾐﾏeﾐt-assisted pヴogヴaﾏs suIh as FHA ふFedeヴal Housiﾐg Adﾏiﾐistヴaioﾐぶ, VA ふVeteヴaﾐs Adﾏiﾐistヴaioﾐぶ, oヴ Ruヴal De┗elopﾏeﾐt “eヴ┗iIes aヴe a┗ailaHle, the do┘ﾐ pa┞ﾏeﾐt ヴeケuiヴeﾏeﾐts ﾏa┞ He suHstaﾐiall┞ sﾏalleヴ.

OﾐIe ┞ouヴ LTV ヴeaIhes a Ieヴtaiﾐ thヴeshold ┞ou Iaﾐ ヴeケuest that the leﾐdeヴ disIoﾐiﾐue the PMI.

• Ask aHout the leﾐdeヴ’s ヴeケuiヴeﾏeﾐts foヴ LTV, iﾐIludiﾐg ┘hat ┞ou ﾐeed to do to ┗eヴif┞ that fuﾐds foヴ ┞ouヴ do┘ﾐ pa┞ﾏeﾐt aヴe a┗ailaHle.

• Ask ┞ouヴ leﾐdeヴ aHout speIial pヴogヴaﾏs the┞ ﾏa┞ ofeヴ.

If PMI is Reケuiヴed foヴ Youヴ Loaﾐ:

• Ask ┘hat the total Iost of the iﾐsuヴaﾐIe ┘ill He.

• Ask ho┘ ﾏuIh ┞ouヴ ﾏoﾐthl┞ pa┞ﾏeﾐt ┘ill He ┘heﾐ iﾐIludiﾐg the PMI pヴeﾏiuﾏ.

• Ask ho┘ loﾐg ┞ou ┘ill He ヴeケuiヴed to Iaヴヴ┞ PMI aﾐd ho┘ it Iaﾐ He ヴeﾏo┗ed.

Ta┝es aﾐd IﾐsuヴaﾐIe Maﾐ┞ leﾐdeヴs ┘ill ヴeケuiヴe ┞ouヴ ﾏoﾐthl┞ loaﾐ pa┞ﾏeﾐt to iﾐIlude aﾐ addiioﾐal aﾏouﾐt to Io┗eヴ aﾐﾐual ヴeal estate ta┝es aﾐd hoﾏeo┘ﾐeヴ’s iﾐsuヴaﾐIe. The aﾏouﾐt is deposited iﾐto aﾐ aIIouﾐt Ioﾏﾏoﾐl┞ Ialled a ヴeseヴ┗e oヴ esIヴo┘ aIIouﾐt. You ﾏa┞ also ha┗e to pa┞ a Iushioﾐ aﾏouﾐt iﾐto the esIヴo┘ aIIouﾐt. Be suヴe to ask if the leﾐdeヴ ヴeケuiヴes ta┝es aﾐd iﾐsuヴaﾐIe to He esIヴo┘ed. T┞piIall┞, leﾐdeヴs ┘ill ヴeケuiヴe ﾏoﾐthl┞ ヴeal estate ta┝es aﾐd hoﾏeo┘ﾐeヴ iﾐsuヴaﾐIe pヴeﾏiuﾏs to He esIヴo┘ed if the LTV is gヴeateヴ thaﾐ Βヰ peヴIeﾐt.

Wheﾐ Ioﾏpaヴiﾐg ﾏoﾐthl┞ pa┞ﾏeﾐts fヴoﾏ ┗aヴious leﾐdeヴs, He suヴe to ask if the leﾐdeヴ iﾐIluded ﾏoﾐthl┞ ta┝es aﾐd iﾐsuヴaﾐIe Iosts iﾐ the total pa┞ﾏeﾐt. If it’s iﾐIluded, ask foヴ the Iosts to He Hヴokeﾐ do┘ﾐ iﾐ the follo┘iﾐg ﾏaﾐﾐeヴ:

• PヴiﾐIipal aﾐd iﾐteヴest

• Real estate ta┝es

• Hoﾏeo┘ﾐeヴ’s iﾐsuヴaﾐIe

• Pヴi┗ate ﾏoヴtgage iﾐsuヴaﾐIe

CREATING A “OLID “TRUCTURE

We’┗e talked aHout ho┘ to Huild a stヴoﾐg fouﾐdaioﾐ. Iﾐ this seIioﾐ, ┘e ┘ill Io┗eヴ the ﾐeIessaヴ┞ ヴesouヴIes that ┘ill ﾏake ┞ouヴ jouヴﾐe┞ ﾏoヴe pleasaﾐt aﾐd fヴee of oHstaIles.

Wheﾐ Hu┞iﾐg a hoﾏe oヴ ヴeiﾐaﾐIiﾐg a loaﾐ ヴeﾏeﾏHeヴ to shop aヴouﾐd, Ioﾏpaヴe Iosts aﾐd teヴﾏs, aﾐd ﾐegoiate foヴ the Hest deal.

Shop

The ﾐe┘spapeヴ aﾐd the Iﾐteヴﾐet aヴe good plaIes to staヴt shoppiﾐg foヴ a loaﾐ. Look foヴ iﾐfoヴﾏaioﾐ oﾐ iﾐteヴest ヴates aﾐd poiﾐts fヴoﾏ se┗eヴal leﾐdeヴs oヴ Hヴokeヴs. “iﾐIe ヴates aﾐd poiﾐts Iaﾐ Ihaﾐge dail┞, ┞ou’ll ┘aﾐt to IheIk the loIal Husiﾐess seIioﾐ of the ﾐe┘spapeヴ aﾐd ┗aヴious iﾐaﾐIial WeH sites oteﾐ ┘heﾐ shoppiﾐg foヴ a hoﾏe loaﾐ.

TIP: The pヴoﾏoioﾐal ad┗eヴisiﾐg ﾏa┞ ﾐot list the fees assoIiated ┘ith the loaﾐ, so He suヴe to ask the leﾐdeヴs aHout fees.

TIP: Be┘aヴe of soﾏe ad┗eヴiseﾏeﾐts that ﾏa┞ He foヴﾏated to look like a ﾐe┘s aヴiIle, ヴatheヴ thaﾐ aﾐ ad┗eヴiseﾏeﾐt.

The Moヴtgage “hoppiﾐg Woヴksheet

This ┘oヴksheet, at ヴight oﾐ page Γ, is also a┗ailaHle H┞ ┗isiiﾐg DFI’s WeH site. Please take it ┘ith ┞ou ┘heﾐ ┞ou speak to eaIh leﾐdeヴ oヴ Hヴokeヴ aﾐd He suヴe to ┘ヴite do┘ﾐ all the iﾐfoヴﾏaioﾐ ┞ou oHtaiﾐ. Doﾐ’t He afヴaid to ﾏake leﾐdeヴs aﾐd Hヴokeヴs Ioﾏpete ┘ith eaIh otheヴ foヴ ┞ouヴ Husiﾐess H┞ leiﾐg theﾏ kﾐo┘ that ┞ou’ヴe shoppiﾐg aヴouﾐd. Loaﾐ Pヴe-QualiiIaioﾐ ┗s. Loaﾐ Appヴo┗al

Loaﾐ pヴe-ケualiiIaioﾐ is a Hest guess at ┞ouヴ housiﾐg aﾐd loaﾐ afoヴdaHilit┞. Pヴe-ケualiiIaioﾐ is t┞piIall┞ Hased upoﾐ a ┗eヴHal Ioﾐ┗eヴsaioﾐ Het┘eeﾐ poteﾐial Hoヴヴo┘eヴs aﾐd a leﾐdeヴ aﾐd doesﾐ’t iﾐIlude foヴﾏal uﾐdeヴ┘ヴiiﾐg oヴ suppoヴiﾐg doIuﾏeﾐtaioﾐ. A loaﾐ pヴe-ケualiiIaioﾐ is ﾐot a Ioﾏﾏitﾏeﾐt to leﾐd.

Loaﾐ appヴo┗al Ioﾏes ateヴ a foヴﾏal uﾐdeヴ┘ヴiiﾐg of a Hoヴヴo┘eヴ’s loaﾐ ヴeケuest. Loaﾐ appヴo┗al is aIhie┗ed ┘ith a Ioﾏplete ﾏoヴtgage loaﾐ appliIaioﾐ aﾐd t┞piIall┞ iﾐIludes these HasiI doIuﾏeﾐts:

• Most ヴeIeﾐt pa┞ stuHs ふlast ヲ-ヴ ﾏoﾐthsぶ aﾐd ideﾐiiIaioﾐ of all eﾏplo┞ﾏeﾐt souヴIes.

• Ta┝ Retuヴﾐs: Cuヴヴeﾐt ┞eaヴ aﾐd past ┞eaヴ iﾐIludiﾐg all sIhedules aﾐd ataIhﾏeﾐts suIh as W-ヲ’s, ヱヰΓΓ’s aﾐd ヱヰΓΒ’s.

• VeヴiiIaioﾐ of all assets iﾐIludiﾐg Haﾐkiﾐg, iﾐ┗estﾏeﾐt aﾐd ヴeiヴeﾏeﾐt stateﾏeﾐts.

• Naﾏes, addヴesses, aIIouﾐt ﾐuﾏHeヴs aﾐd aﾏouﾐts o┘ed to all Iヴeditoヴs.

• Pヴoof of do┘ﾐ pa┞ﾏeﾐt iﾐIludiﾐg Iash oヴ gits.

• Leteヴふsぶ of e┝plaﾐaioﾐ oﾐ Iヴedit issues; oﾐ aﾐ┞ gaps iﾐ eﾏplo┞ﾏeﾐt histoヴ┞; aﾐd HaﾐkヴuptI┞.

• CoﾐtaIt iﾐfoヴﾏaioﾐ foヴ all ヴesideﾐIes ┘ithiﾐ the past t┘o ┞eaヴs to iﾐIlude ﾐaﾏes aﾐd phoﾐe ﾐuﾏHeヴs of laﾐdloヴds.

TIP: It’s iﾏpoヴtaﾐt ﾐot to ﾏake aﾐ┞ Ihaﾐges to ┞ouヴ iﾐaﾐIial Ioﾐdiioﾐ duヴiﾐg the loaﾐ pヴoIess, iﾐIludiﾐg aﾐ┞ ﾏajoヴ asset puヴIhases, aﾐ┞ ﾐe┘ deHts oヴ Ihaﾐges iﾐ ┞ouヴ eﾏplo┞ﾏeﾐt. This ┘ill afeIt ┞ouヴ appヴo┗al ヴaiﾐg.

Coﾏpare Usiﾐg the APR ふaﾐﾐual peヴIeﾐtage ヴateぶ:

The APR, ┘hiIh takes iﾐto aIIouﾐt the iﾐteヴest ヴate, poiﾐts, Hヴokeヴ fees, aﾐd Ieヴtaiﾐ Ihaヴges that ┞ou ﾏa┞ He ヴeケuiヴed to pa┞, aﾐd is e┝pヴessed as a ┞eaヴl┞ peヴIeﾐtage ヴate, ┘ill allo┘ ┞ou to Ioﾏpaヴe siﾏilaヴ loaﾐs ふe.g. i┝ed to i┝ed, ARM to ARMぶ fヴoﾏ the saﾏe oヴ difeヴeﾐt leﾐdeヴs ┘ithout aﾐal┞ziﾐg fee aﾐd ヴate iﾐfoヴﾏaioﾐ. The APR is aﾐ iﾐteヴest ヴate that sho┘s the tヴue iﾐteヴest ヴate ┞ou ┘ill pa┞ o┗eヴ the life of the loaﾐ, faItoヴiﾐg iﾐ Ieヴtaiﾐ Iosts ヴelated to the loaﾐ. Heヴe is aﾐ e┝aﾏple: Assuﾏe that ┞ou’ヴe Ioﾏpaヴiﾐg t┘o, i┝ed ヴate ンヰ-┞eaヴ ﾏoヴtgages foヴ $ヱヰヰ,ヰヰヰ ┘ith difeヴeﾐt iﾐteヴest ヴates aﾐd difeヴeﾐt aﾏouﾐts of leﾐdeヴ fees:

#ヱ LOAN #ヲ Iﾐteヴest Rate ヶ.ヰヰ% ヶ.ヲヵ% Pヴepaid FiﾐaﾐIe Chaヴges* $ン,ヰヰヰ $ヲ,ヵヰヰ APR ヶ.ヲΓ% ヶ.ヴΓ%

* Pヴepaid iﾐaﾐIe Ihaヴges iﾐIlude a ┗aヴiet┞ of Iosts oヴ fees paid at Ilosiﾐg of the loaﾐ suIh as: leﾐdeヴ oヴ Hヴokeヴ fees, iﾐteヴiﾏ iﾐteヴest, esIヴo┘ fees aﾐd itle fees.

Iﾐ this e┝aﾏple, ┞ou oﾐl┞ ﾐeed the APR to deteヴﾏiﾐe that Loaﾐ #ヱ is the ﾏost Iost efeIi┗e loaﾐ ofeヴed. Wheﾐ Ioﾏpaヴiﾐg loaﾐs aﾐd leﾐdeヴs, ┞ouヴ leﾐdeヴ oヴ Hヴokeヴ should pヴo┗ide ┞ou ┘ith the APR oﾐ aﾐ┞ loaﾐ disIussed.

may be negotiable.

MORTGAGE TERM“

Aﾐﾐual PeヴIeﾐtage Rate ふAPRぶ: Cost of the Iヴedit, ┘hiIh iﾐIludes the iﾐteヴest aﾐd all otheヴ iﾐaﾐIe Ihaヴges. If APR is ﾏoヴe thaﾐ .Αヵ to ヱ peヴIeﾐtage poiﾐt higheヴ thaﾐ the iﾐteヴest ヴate ┞ou ┘eヴe ケuoted, theヴe aヴe sigﾐiiIaﾐt fees Heiﾐg added to the loaﾐ.

Poiﾐts: Fees paid to the leﾐdeヴ foヴ a lo┘eヴ iﾐteヴest ヴate. Oﾐe poiﾐt is eケual to ヱ% of the loaﾐ aﾏouﾐt. Poiﾐts should He paid at the iﾏe of the loaﾐ. These Iaﾐ also He used to Hu┞ do┘ﾐ the iﾐteヴest ヴate.

Pヴepa┞ﾏeﾐt Peﾐalt┞: Fees ヴeケuiヴed to He paid H┞ ┞ou if the loaﾐ is paid of eaヴl┞. Tヴ┞ to a┗oid aﾐ┞ pヴepa┞ﾏeﾐt peﾐalt┞ uﾐless ┞ou aヴe ┗eヴ┞ suヴe that ┞ou ┘ill hold the loaﾐ foヴ loﾐgeヴ thaﾐ the pヴe-pa┞ﾏeﾐt peﾐalt┞ peヴiod. Iﾐ the “tate of Washiﾐgtoﾐ, pヴe-pa┞ﾏeﾐt peﾐalies aヴe ﾐot allo┘ed oﾐ seIoﾐd ﾏoヴtgages.

Ballooﾐ Pa┞ﾏeﾐt: Laヴge pa┞ﾏeﾐt due at the eﾐd of a loaﾐ. This happeﾐs ┘heﾐ a Hoヴヴo┘eヴ has a lo┘ ﾏoﾐthl┞ pa┞ﾏeﾐt Io┗eヴiﾐg oﾐl┞ iﾐteヴest aﾐd a sﾏall poヴioﾐ of the pヴiﾐIipal, lea┗iﾐg alﾏost the ┘hole loaﾐ aﾏouﾐt due iﾐ oﾐe pa┞ﾏeﾐt at the eﾐd. If ┞ou Iaﾐﾐot ﾏake this pa┞ﾏeﾐt, ┞ou Iould lose ┞ouヴ hoﾏe.

Appヴaisal: A deteヴﾏiﾐaioﾐ of the ┗alue of a hoﾏe H┞ a thiヴd paヴt┞ ┘ho is hiヴed H┞ the leﾐdeヴ to assuヴe the hoﾏe has eﾐough ┗alue to pa┞ of the loaﾐ should the Hoヴヴo┘eヴ default. It is t┞piIall┞ paid foヴ H┞ Hoヴヴo┘eヴ.

Loaﾐ Oヴigiﾐaioﾐ Fees: Fees paid to the leﾐdeヴ foヴ haﾐdliﾐg the papeヴ┘oヴk iﾐ aヴヴaﾐgiﾐg the loaﾐ. These aヴe pヴepaid iﾐaﾐIe Ihaヴges paid at the loaﾐ Ilosiﾐg aﾐd aヴe iﾐIluded iﾐ ┞ouヴ APR IalIulaioﾐ. You Iaﾐ pa┞ theﾏ out of poIket.

Moヴtgage Bヴokeヴ Fees: Fees paid to the ﾏoヴtgage Hヴokeヴ foヴ haﾐdliﾐg the papeヴ┘oヴk foヴ aヴヴaﾐgiﾐg the loaﾐ.

EsIヴo┘: The holdiﾐg of ﾏoﾐe┞ oヴ doIuﾏeﾐts H┞ a ﾐeutヴal thiヴd paヴt┞ pヴioヴ to Ilosiﾐg. It Iaﾐ also He aﾐ aIIouﾐt held H┞ the leﾐdeヴ ふoヴ seヴ┗iIeヴぶ iﾐto ┘hiIh a hoﾏeo┘ﾐeヴ pa┞s ﾏoﾐe┞ foヴ ta┝es aﾐd iﾐsuヴaﾐIe. Iﾐteヴest Rate: is the Iost of Hoヴヴo┘iﾐg ﾏoﾐe┞ e┝pヴessed as a peヴIeﾐtage ヴate.

LoIk-Iﾐ: A ┘ヴiteﾐ agヴeeﾏeﾐt guaヴaﾐteeiﾐg a hoﾏe Hu┞eヴ a speIiiI iﾐteヴest ヴate oﾐ a hoﾏe loaﾐ pヴo┗ided that the loaﾐ is Ilosed ┘ithiﾐ a Ieヴtaiﾐ peヴiod of iﾏe, suIh as ヶヰ oヴ Γヰ da┞s. Oteﾐ the agヴeeﾏeﾐt also speIiies the ﾐuﾏHeヴ of poiﾐts to He paid at Ilosiﾐg.

Pヴi┗ate Moヴtgage IﾐsuヴaﾐIe ふPMIぶ: IﾐsuヴaﾐIe that pヴoteIts the leﾐdeヴ agaiﾐst a loss if a Hoヴヴo┘eヴ defaults oﾐ the loaﾐ. It is usuall┞ ヴeケuiヴed foヴ loaﾐs iﾐ ┘hiIh the do┘ﾐ pa┞ﾏeﾐt is less thaﾐ ヲヰ peヴIeﾐt of the sales pヴiIe oヴ, iﾐ a ヴeiﾐaﾐIiﾐg ┘heﾐ the aﾏouﾐt iﾐaﾐIed is gヴeateヴ thaﾐ Αヵ peヴIeﾐt of the appヴaised ┗alue.

CalIulatoヴs

Moヴtgage IalIulatoヴs aヴe a┗ailaHle oﾐliﾐe fヴoﾏ a ﾐuﾏHeヴ of ヴesouヴIes to help ┞ou Ioﾏpaヴe aﾐd pヴo┗ide ┞ou ┘ith difeヴeﾐt sIeﾐaヴios that Hest it ┞ouヴ ﾐeeds.

Quesioﾐs to Ask Your Broker or Leﾐder:

Wheﾐ “hoppiﾐg foヴ a Loaﾐ, You “hould Ask:

• What is ┞ouヴ Hest iﾐteヴest ヴate toda┞? What is the total of all fees iﾐIludiﾐg the leﾐdeヴ fees, thiヴd-paヴt┞ fees aﾐd tヴaﾐsaIioﾐ fees?

• Is this ヴate i┝ed oヴ adjustaHle? ふA i┝ed iﾐteヴest ヴate sta┞s the saﾏe foヴ the life of the loaﾐ, ┘hile aﾐ adjustaHle ヴate ﾏa┞ Ihaﾐge.ぶ

• If the loaﾐ Iaヴヴies a ヴeHate, ho┘ ﾏuIh it is, aﾐd ┘ho ┘ill ヴeIei┗e it.

• Is theヴe aﾐ appliIaioﾐ deposit? If so, ho┘ ﾏuIh is ヴefuﾐdaHle?

• What is the total ﾏoﾐthl┞ pa┞ﾏeﾐt, iﾐIludiﾐg ta┝es, hoﾏeo┘ﾐeヴs aﾐd ﾏoヴtgage iﾐsuヴaﾐIe?

Wheﾐ You Appl┞ Foヴ Youヴ Loaﾐ Ask:

• If I loIk iﾐ ﾏ┞ iﾐteヴest ヴate toda┞, ┘hat is the Hest ヴate a┗ailaHle? What aヴe the fees?

• Ho┘ loﾐg is the loIk guaヴaﾐteed, aﾐd ┘hat happeﾐs if iﾐteヴest ヴates dヴop Hefoヴe Ilosiﾐg?

• What is the aﾐﾐual peヴIeﾐtage ヴate ふAPRぶ?

• Is theヴe a Hallooﾐ pa┞ﾏeﾐt due oﾐ the loaﾐ?

• Aヴe theヴe aﾐ┞ pヴe-pa┞ﾏeﾐt peﾐalies? What aヴe the┞ aﾐd ho┘ ﾏaﾐ┞ ┞eaヴs aヴe the┞ iﾐ efeIt?

• Does the iﾐteヴest ヴate iﾐIヴease if ﾏ┞ pa┞ﾏeﾐts aヴe late?

• What is the total ﾏoﾐthl┞ pa┞ﾏeﾐt, iﾐIludiﾐg ta┝es, hoﾏeo┘ﾐeヴs aﾐd ﾏoヴtgage iﾐsuヴaﾐIe?

If the Loaﾐ is Aﾐ AdjustaHle Rate Moヴtgage ふARMぶ:

• What is the iﾐiial ヴate? Ho┘ loﾐg ┘ill that ヴate sta┞ iﾐ efeIt?

• What is the iﾐiial ﾏoﾐthl┞ pa┞ﾏeﾐt? Ho┘ loﾐg ┘ill that pa┞ﾏeﾐt sta┞ iﾐ efeIt?

• Ho┘ oteﾐ Iaﾐ the ヴate Ihaﾐge?

• What aヴe the ヴate aﾐd pa┞ﾏeﾐt Iaps eaIh ┞eaヴ, as ┘ell as o┗eヴ the life of the loaﾐ?

• What is the ﾏa┝iﾏuﾏ iﾐteヴest ヴate aﾐd pa┞ﾏeﾐt?

• Caﾐ I Ioﾐ┗eヴt ﾏ┞ adjustaHle ヴate loaﾐ to a i┝ed ヴate ┘ithout ヴeiﾐaﾐIiﾐg?

• Is theヴe a pヴepa┞ﾏeﾐt peﾐalt┞? If so, ho┘ loﾐg does it appl┞?

A Fe┘ Thiﾐgs to ReﾏeﾏHer

ヱ. Wheﾐ ┞ou appl┞ foヴ a ﾏoヴtgage loaﾐ, e┗eヴ┞ pieIe of iﾐfoヴﾏaioﾐ that ┞ou suHﾏit ﾏust He aIIuヴate aﾐd Ioﾏplete. L┞iﾐg oﾐ a ﾏoヴtgage appliIaioﾐ is fヴaud aﾐd ﾏa┞ ヴesult iﾐ Iヴiﾏiﾐal peﾐalies. Doﾐ’t let aﾐ┞oﾐe peヴsuade ┞ou to ﾏake a false stateﾏeﾐt oﾐ ┞ouヴ loaﾐ appliIaioﾐ, suIh as o┗eヴstaiﾐg ┞ouヴ iﾐIoﾏe oヴ the ┗alue of the hoﾏe, the souヴIe of ┞ouヴ do┘ﾐ pa┞ﾏeﾐt, failiﾐg to disIlose the ﾐatuヴe aﾐd aﾏouﾐt of ┞ouヴ deHts, oヴ e┗eﾐ ho┘ loﾐg ┞ou’┗e Heeﾐ eﾏplo┞ed.

ヲ. Fedeヴal la┘ ヴeケuiヴes the leﾐdeヴ to pヴo┗ide loaﾐ doIuﾏeﾐts to ┞ou oﾐe da┞ Hefoヴe Ilosiﾐg. Re┗ie┘ theﾏ Iaヴefull┞ oヴ ask foヴ help fヴoﾏ soﾏeoﾐe ┞ou tヴust oヴ ┘ho is skilled iﾐ ヴeal estate la┘.

ン. Ne┗eヴ sigﾐ a Hlaﾐk doIuﾏeﾐt oヴ a doIuﾏeﾐt Ioﾐtaiﾐiﾐg Hlaﾐks. If soﾏeoﾐe else iﾐseヴts iﾐfoヴﾏaioﾐ ateヴ ┞ou’┗e sigﾐed, ┞ou ﾏa┞ sill He Houﾐd to the teヴﾏs of the IoﾐtヴaIt. Wヴite さN/Aざ ふﾐot appliIaHleぶ oヴ Iヴoss thヴough aﾐ┞ Hlaﾐks.

ヴ. Read e┗eヴ┞thiﾐg Iaヴefull┞ aﾐd ask ケuesioﾐs. Doﾐ’t sigﾐ aﾐ┞thiﾐg that ┞ou doﾐ’t uﾐdeヴstaﾐd. Ne┗eヴ let aﾐ┞oﾐe pヴessuヴe ┞ou iﾐto sigﾐiﾐg Hefoヴe ┞ou’┗e ヴead e┗eヴ┞thiﾐg Ioﾏpletel┞.

ヵ. Doﾐ’t let aﾐ┞oﾐe Ioﾐ┗iﾐIe ┞ou to Hoヴヴo┘ ﾏoヴe ﾏoﾐe┞ thaﾐ ┞ou kﾐo┘ ┞ou Iaﾐ afoヴd to ヴepa┞. If ┞ou get Hehiﾐd oﾐ ┞ouヴ pa┞ﾏeﾐts, ┞ou ヴisk a poteﾐial ﾐegai┗e iﾏpaIt oﾐ ┞ouヴ Iヴedit sIoヴe, aﾐd losiﾐg ┞ouヴ house aﾐd all of the ﾏoﾐe┞ ┞ou’┗e put iﾐto the pヴopeヴt┞.

ヶ. If ┞ou use the seヴ┗iIes of a Moヴtgage Bヴokeヴ, the Hヴokeヴ has a iduIiaヴ┞ ヴelaioﾐship ┘ith ┞ou. This ﾏeaﾐs that, H┞ la┘, the Hヴokeヴ ﾏust aIt iﾐ ┞ouヴ Hest iﾐteヴest aﾐd iﾐ the utﾏost good faith to┘aヴd ┞ou, aﾐd ﾏust disIlose aﾐ┞ aﾐd all Husiﾐess ヴelaioﾐships to ┞ou iﾐIludiﾐg, Hut ﾐot liﾏited to, ヴelaioﾐships ┘ith the leﾐdeヴ ┘ho is uﾐdeヴ┘ヴiiﾐg ┞ouヴ loaﾐ. Also, a Hヴokeヴ ﾏa┞ ﾐot aIIept, pヴo┗ide, oヴ Ihaヴge aﾐ┞ uﾐdisIlosed Ioﾏpeﾐsaioﾐ to aﾐotheヴ paヴt┞ iﾐ┗ol┗ed iﾐ the loaﾐ tヴaﾐsaIioﾐ.

Α. Did ┞ouヴ leﾐdeヴ gi┗e ┞ou a Good Faith Esiﾏate ふGFEぶ aﾐd a Iop┞ of the fedeヴal Hooklet oﾐ setleﾏeﾐt Iosts? Fedeヴal la┘ ヴeケuiヴes that ┞ou get a Iop┞ of this doIuﾏeﾐt ┘ithiﾐ ン da┞s of ┞ouヴ loaﾐ appliIaioﾐ.

WINDOW “HOPPING – BECOMING A “AVVY BORROWER

E┗eヴ┞ ┞eaヴ ﾏisiﾐfoヴﾏed Ioﾐsuﾏeヴs HeIoﾏe ┗iIiﾏs of pヴedatoヴ┞ leﾐdiﾐg oヴ loaﾐ fヴaud. Doﾐ’t let this happeﾐ to ┞ou! Iﾐ this seIioﾐ ┘e ┘ill ┘aヴﾐ ┞ou aHout the Ioﾏﾏoﾐ iﾐaﾐIial pifalls, ho┘ to a┗oid theﾏ aﾐd pヴo┗ide ┞ou ┘ith soﾏe alteヴﾐai┗es.

A┗oidiﾐg FiﾐaﾐIial Pifalls

Wheﾐ ┞ou Hu┞ a house, ┞ou eﾐteヴ iﾐto a loﾐg-teヴﾏ iﾐaﾐIial oHligaioﾐ. You ill out papeヴs aﾐd sigﾐ legal doIuﾏeﾐts Hased oﾐ those papeヴs. It’s iﾏpoヴtaﾐt that ┞ou uﾐdeヴstaﾐd ┞ouヴ ヴespoﾐsiHiliies so that ┞ou ┘oﾐ’t He a ┗iIiﾏ oヴ a paヴiIipaﾐt iﾐ fヴaud.

Wheﾐ ┞ou appl┞ foヴ a ﾏoヴtgage loaﾐ, e┗eヴ┞ pieIe of iﾐfoヴﾏaioﾐ ┞ou suHﾏit ﾏust He aIIuヴate aﾐd Ioﾏplete. Aﾐ┞thiﾐg less is Ioﾐsideヴed loaﾐ fヴaud. Uﾐfoヴtuﾐatel┞, theヴe aヴe people ┘ho ﾏa┞ tヴ┞ to Ioﾐ┗iﾐIe ┞ou to lie aHout ┞ouヴ ケualiiIaioﾐs so the┞ Iaﾐ illegall┞ ﾏake ﾏoﾐe┞ at ┞ouヴ e┝peﾐse. These people ┘ill appeaヴ to He ┞ouヴ fヴieﾐds, sa┞iﾐg the┞’ヴe tヴ┞iﾐg to help ┞ou. The┞ ﾏa┞ do┘ﾐpla┞ oヴ deﾐ┞ the iﾏpoヴtaﾐIe of Ioﾏpl┞iﾐg ┘ith the la┘ aﾐd suggest that it’s all just さヴed tapeざ that e┗eヴ┞oﾐe igﾐoヴes. Doﾐ’t allo┘ ┞ouヴself to He fooled.

BE “MART

• Befoヴe ┞ou sigﾐ aﾐ┞thiﾐg, ヴead aﾐd ﾏake suヴe ┞ou uﾐdeヴstaﾐd it.

• Refuse to sigﾐ aﾐ┞ Hlaﾐk doIuﾏeﾐts.

• AIIuヴatel┞ ヴepoヴt ┞ouヴ iﾐIoﾏe, ┞ouヴ eﾏplo┞ﾏeﾐt, ┞ouヴ assets, aﾐd ┞ouヴ deHts.

• Doﾐ’t Hu┞ pヴopeヴt┞ oヴ Hoヴヴo┘ ﾏoﾐe┞ foヴ soﾏeoﾐe else.

• DisIlosuヴe of loaﾐ teヴﾏs is ﾐot just a foヴﾏalit┞. It’s the la┘ aﾐd ┞ou ha┗e the ヴight to kﾐo┘.

BE HONE“T

• Doﾐ’t Ihaﾐge ┞ouヴ iﾐIoﾏe ta┝ ヴetuヴﾐs foヴ aﾐ┞ ヴeasoﾐ.

• Tell the ┘hole tヴuth aHout ﾏoﾐe┞ gits.

• Doﾐ’t list fake Io-Hoヴヴo┘eヴs oﾐ ┞ouヴ loaﾐ appliIaioﾐ.

• Be tヴuthful aHout ┞ouヴ Iヴedit pヴoHleﾏs, past aﾐd pヴeseﾐt.

• Be hoﾐest aHout ┞ouヴ iﾐteﾐioﾐ to oIIup┞ the house.

• Doﾐ’t pヴo┗ide false suppoヴiﾐg doIuﾏeﾐtaioﾐ.

DON’T BE DI“COURAGED

If ┞ouヴ loaﾐ is deﾐied, the leﾐdeヴ ┘ill tell ┞ou ┘h┞. Ma┞He ┞ou ﾐeed to look foヴ a less e┝peﾐsi┗e house, oヴ sa┗e ﾏoヴe ﾏoﾐe┞. CheIk to see if theヴe is ﾏoヴe afoヴdaHle housiﾐg oヴ Ioﾏﾏuﾐit┞ pヴogヴaﾏs ┞ou ﾏight He eligiHle foヴ to help ┞ou thヴough ┞ouヴ hoﾏe Hu┞iﾐg pヴoIess.

Predatory Leﾐdiﾐg

Youヴ Hest defeﾐse agaiﾐst illegal oヴ uﾐethiIal pヴaIiIes is to He iﾐfoヴﾏed.

Pヴedatoヴ┞ loaﾐs aヴe usuall┞ Hased oﾐ dishoﾐest┞. Pヴedatoヴ┞ leﾐdeヴs ofeヴ eas┞ aIIess to ﾏoﾐe┞, Hut oteﾐ use high-pヴessuヴe sales taIiIs, iﾐlated iﾐteヴest ヴates, outヴageous fees, uﾐafoヴdaHle ヴepa┞ﾏeﾐt teヴﾏs, aﾐd haヴassiﾐg IolleIioﾐ taIiIs. Pヴedatoヴ┞ leﾐdeヴs taヴget those ┘ho ha┗e liﾏited aIIess to ﾏaiﾐstヴeaﾏ souヴIes of Iヴedit. The eldeヴl┞, ﾏilitaヴ┞ peヴsoﾐﾐel aﾐd hoﾏeo┘ﾐeヴs iﾐ lo┘-iﾐIoﾏe ﾐeighHoヴhoods aヴe oteﾐ ┗iIiﾏs of pヴedatoヴ┞ leﾐdiﾐg. But aﾐ┞oﾐe Iaﾐ He a ┗iIiﾏ of a pヴedatoヴ. Ho┘ to A┗oid a Pヴedatoヴ┞ Loaﾐ: Fiﾐdiﾐg the Hest loaﾐ is ﾐo difeヴeﾐt thaﾐ ﾏakiﾐg aﾐ┞ otheヴ puヴIhase. Be a sﾏaヴt shoppeヴ! Talk ┘ith a ﾐuﾏHeヴ of difeヴeﾐt leﾐdeヴs. Coﾏpaヴe theiヴ ofeヴs. Ask ケuesioﾐs aﾐd doﾐ’t let aﾐ┞oﾐe pヴessuヴe ┞ou iﾐto ﾏakiﾐg a deal that ┞ou doﾐ’t feel IoﾏfoヴtaHle ┘ith. If ┞ou doﾐ’t agヴee ┘ith the teヴﾏs of the ofeヴ ┞ou al┘a┞s ha┗e the ヴight to ┘alk a┘a┞. Ask ケuesioﾐs uﾐil ┞ou uﾐdeヴstaﾐd the loaﾐ teヴﾏs – e┗eﾐ if ┞ou feel eﾏHaヴヴassed foヴ ﾐot kﾐo┘iﾐg the aﾐs┘eヴ.

TIP: Iﾐ a ヴeiﾐaﾐIe loaﾐ oヴ seIoﾐd ﾏoヴtgage ┞ou ha┗e the ヴight to IaﾐIel the loaﾐ. This is kﾐo┘ﾐ as the Right of ResIissioﾐ. The leﾐdeヴ ﾏust allo┘ ┞ou thヴee da┞s ateヴ the Ilosiﾐg of ┞ouヴ loaﾐ to Ihaﾐge ┞ouヴ ﾏiﾐd. Use that thヴee da┞s ┘isel┞ if the loaﾐ is ﾐot foヴ ┞ou, IaﾐIel it.

Coﾏﾏoﾐ Pヴedatoヴ┞ Leﾐdiﾐg PヴaIiIes:

• Eケuit┞ “tヴippiﾐg: The leﾐdeヴ ﾏakes a loaﾐ Hased upoﾐ the eケuit┞ iﾐ ┞ouヴ hoﾏe, ┘hetheヴ oヴ ﾐot ┞ou Iaﾐ ﾏake the pa┞ﾏeﾐts. If ┞ou Iaﾐﾐot ﾏake pa┞ﾏeﾐts, ┞ou Iould lose ┞ouヴ hoﾏe thヴough foヴeIlosuヴe.

• Bait-aﾐd-s┘itIh sIheﾏes: The leﾐdeヴ ﾏa┞ pヴoﾏise oﾐe t┞pe of loaﾐ, iﾐteヴest ヴate, oヴ Iosts, Hut s┘itIh ┞ou to soﾏethiﾐg difeヴeﾐt at Ilosiﾐg. “oﾏeiﾏes a higheヴ ふaﾐd uﾐafoヴdaHleぶ iﾐteヴest ヴate doesﾐ’t kiIk iﾐ uﾐil ﾏoﾐths ateヴ ┞ou’┗e Heguﾐ to pa┞ oﾐ ┞ouヴ

loaﾐ. “Iヴuiﾐize ┞ouヴ doIuﾏeﾐts Ilosel┞ aﾐd ﾏake suヴe the loaﾐ ┞ou sigﾐ is the loaﾐ ┞ou agヴeed to.

• Loaﾐ Flippiﾐg: A leﾐdeヴ ヴeiﾐaﾐIes ┞ouヴ loaﾐ ﾏoヴe thaﾐ oﾐIe ┘ith a ﾐe┘ loﾐg-teヴﾏ, high Iost loaﾐ. EaIh iﾏe the leﾐdeヴ さlipsざ the e┝isiﾐg loaﾐ, ┞ou ﾏust pa┞ poiﾐts aﾐd assoヴted fees.

• PaIkiﾐg: You ヴeIei┗e a loaﾐ that Ioﾐtaiﾐs Ihaヴges foヴ seヴ┗iIes ┞ou did ﾐot ヴeケuest oヴ ﾐeed. さPaIkiﾐgざ ﾏost oteﾐ iﾐ┗ol┗es ﾏakiﾐg ┞ou Helie┗e that Iヴedit iﾐsuヴaﾐIe oヴ soﾏe otheヴ Iostl┞ pヴoduIt ﾏust He puヴIhased aﾐd iﾐaﾐIed iﾐto the loaﾐ iﾐ oヴdeヴ to ケualif┞. “oﾏeiﾏes the Iosts of these seヴ┗iIes ﾏa┞ siﾏpl┞ He hiddeﾐ altogetheヴ.

• Hiddeﾐ Ballooﾐ Pa┞ﾏeﾐts: You Helie┗e that ┞ou’┗e applied foヴ a lo┘ ヴate loaﾐ ヴeケuiヴiﾐg lo┘ ﾏoﾐthl┞ pa┞ﾏeﾐts oﾐl┞ to leaヴﾐ at Ilosiﾐg that it’s a shoヴt-teヴﾏ loaﾐ that ┞ou ┘ill ha┗e to ヴeiﾐaﾐIe ┘ithiﾐ a fe┘ ┞eaヴs.

• Hidiﾐg oヴ L┞iﾐg AHout Pヴe-Pa┞ﾏeﾐt Peﾐalies: You aヴe led to Helie┗e that theヴe ┘ill He ﾐo peﾐalt┞ if ┞ou deIide to pa┞ ┞ouヴ loaﾐ of eaヴl┞.

• Hoﾏe Iﾏpヴo┗eﾏeﾐt “Iaﾏs: A IoﾐtヴaItoヴ talks ┞ou iﾐto Iostl┞ oヴ uﾐﾐeIessaヴ┞ ヴepaiヴs, steeヴs ┞ou to a high-Iost ﾏoヴtgage leﾐdeヴ to iﾐaﾐIe the joH, aﾐd aヴヴaﾐges foヴ the loaﾐ pヴoIeeds to He seﾐt diヴeItl┞ to the IoﾐtヴaItoヴ. Iﾐ soﾏe Iases, the IoﾐtヴaItoヴ peヴfoヴﾏs shodd┞ oヴ iﾐIoﾏplete ┘oヴk, aﾐd ┞ou aヴe stuIk pa┞iﾐg of a loﾐg-teヴﾏ loaﾐ ┘heヴe the house is at ヴisk.

• Moﾐthl┞ Pa┞ﾏeﾐt “Iaﾏs: Doﾐ’t He tヴiIked H┞ deIepi┗e pa┞ﾏeﾐt Ioﾏpaヴisoﾐs. Be paヴiIulaヴl┞ a┘aヴe ┘heﾐ Ioﾏpaヴiﾐg the ﾐe┘ ﾏoﾐthl┞ pa┞ﾏeﾐt to ┞ouヴ e┝isiﾐg ﾏoﾐthl┞ pa┞ﾏeﾐt. Does the ﾐe┘ pa┞ﾏeﾐt Ioﾐtaiﾐ aﾏouﾐts foヴ ta┝es aﾐd iﾐsuヴaﾐIe? Will the lo┘eヴ pa┞ﾏeﾐt adjust up┘aヴd ateヴ a shoヴt iﾏe?

• Pigg┞ BaIk “eIoﾐd Loaﾐs: Be ┗eヴ┞ a┘aヴe of addiioﾐal loaﾐs ofeヴed oヴ さsﾐuIkざ iﾐto ┞ouヴ loaﾐ tヴaﾐsaIioﾐ at the iﾏe of Ilosiﾐg. If ┞ou did ﾐot ask foヴ a seIoﾐd ﾏoヴtgage, hoﾏe eケuit┞ liﾐe of Iヴedit oヴ Iヴedit Iaヴd seIuヴed H┞ ┞ouヴ hoﾏe, oﾐe shouldﾐ’t He iﾐIluded iﾐ ┞ouヴ Ilosiﾐg papeヴs. As ┘ith aﾐ┞ loaﾐ oppoヴtuﾐit┞ ┞ou’ヴe Ioﾐsideヴiﾐg, IoﾐtaIt the Washiﾐgtoﾐ “tate Depaヴtﾏeﾐt of FiﾐaﾐIial Iﾐsituioﾐs ふDFIぶ to eﾐsuヴe ┞ou’ヴe ┘oヴkiﾐg ┘ith a liIeﾐsed pヴofessioﾐal.

KNOW YOUR RIGHT“

Befoヴe sigﾐiﾐg aﾐ┞ doIuﾏeﾐt oヴ pa┞iﾐg aﾐ┞ ﾏoﾐe┞, ┞ou should Iaヴefull┞ e┝aﾏiﾐe ┞ouヴ ヴeケuiヴeﾏeﾐts, ヴesouヴIes a┗ailaHle aﾐd the ﾐeed foヴ pヴofessioﾐal help. Iﾐ this seIioﾐ ┘e ┘ill pヴo┗ide ┞ou ┘ith a lisiﾐg of Iuヴヴeﾐt la┘s ヴegulaiﾐg the ﾏoヴtgage iﾐdustヴ┞. It’s al┘a┞s ヴeIoﾏﾏeﾐded that ┞ou IoﾐtaIt aﾐ atoヴﾐe┞ foヴ aﾐ┞ legal ad┗iIe.

It’s The La┘: Kﾐo┘ Youヴ Rights!

If A Loaﾐ:

• Just doesﾐ’t seeﾏ faiヴ,

• “eeﾏs iﾐoヴdiﾐatel┞ e┝peﾐsi┗e, oヴ

• Coﾐtaiﾐs uﾐpleasaﾐt suヴpヴises that ┞ou oﾐl┞ iﾐd out at oヴ ateヴ Ilosiﾐg, CoﾐtaIt the Washiﾐgtoﾐ “tate Depaヴtﾏeﾐt of FiﾐaﾐIial Iﾐsituioﾐs.

Priﾏary La┘s Regulaiﾐg the Mortgage Iﾐdustry

Fedeヴal La┘s:

• Eケual Cヴedit Oppoヴtuﾐit┞ AIt ふECOAぶ PヴohiHits disIヴiﾏiﾐaioﾐ iﾐ leﾐdiﾐg. ECOA pヴohiHits aﾐ┞ Iヴeditoヴ fヴoﾏ disIヴiﾏiﾐaiﾐg agaiﾐst aﾐ appliIaﾐt ┘ith ヴespeIt to aﾐ┞ aspeIt of a Iヴedit tヴaﾐsaIioﾐ Hased oﾐ se┝, ヴaIe, Ioloヴ, ヴeligioﾐ, ﾐaioﾐal oヴigiﾐ, disaHilit┞ oヴ paヴeﾐtal status.

• Faiヴ Cヴedit Repoヴiﾐg AIt ふFCRAぶ “ipulates the ヴeケuiヴeﾏeﾐts of useヴs of Iヴedit ヴepoヴts aﾐd disIlosuヴe to Ioﾐsuﾏeヴs.

• Faiヴ Housiﾐg AIt Pヴo┗ides pヴoteIioﾐ agaiﾐst housiﾐg-ヴelated disIヴiﾏiﾐatoヴ┞ pヴaIiIes Hased oﾐ se┝, ヴaIe, Ioloヴ, ヴeligioﾐ, ﾐaioﾐal oヴigiﾐ, disaHilit┞ oヴ paヴeﾐtal status.

• Hoﾏe O┘ﾐeヴship aﾐd Eケuit┞ PヴoteIioﾐ AIt ふHOEPAぶ Reケuiヴes addiioﾐal disIlosuヴes foヴ Ieヴtaiﾐ t┞pes of high Iost loaﾐs.

• Real Estate “etleﾏeﾐt PヴoIeduヴes AIt ふRE“PAぶ

PヴohiHits aHusi┗e pヴaIiIes suIh as kiIkHaIks aﾐd ヴefeヴヴal fees, aﾐd ヴeケuiヴes ad┗aﾐIe disIlosuヴe of setleﾏeﾐt seヴ┗iIe Iosts ﾏaﾐdates the use of a Good Faith Esiﾏate ふGFEぶ iﾐ Ieヴtaiﾐ iﾐstaﾐIes, ┘hiIh is a good faith esiﾏate of seヴ┗iIe Iosts assoIiated ┘ith the ﾏoヴtgage loaﾐ, aﾐd the setleﾏeﾐt stateﾏeﾐt

ふHUD-ヱぶ iﾐ soﾏe iﾐstaﾐIes, ┘hiIh sho┘s e┗eヴ┞ Iost the Hoヴヴo┘eヴ ┘ill pa┞ iﾐ IoﾐjuﾐIioﾐ ┘ith ヴeIei┗iﾐg the loaﾐ.

• Tヴuth-iﾐ-Leﾐdiﾐg AIt ふTILAぶ Reケuiヴes disIlosuヴe of the Iost of Iヴedit to the Ioﾐsuﾏeヴ aﾐd the teヴﾏs of ヴepa┞ﾏeﾐt thヴough the loaﾐ esiﾏate aﾐd Ilosiﾐg details.

• “eIuヴe aﾐd Faiヴ EﾐfoヴIeﾏeﾐt foヴ Moヴtgage LiIeﾐsiﾐg AIt of ヲヰヰ8 ふ“AFE AItぶ EstaHlishes a Naioﾐal Moヴtgage LiIeﾐsiﾐg “┞steﾏ aﾐd ヴeケuiヴes all ヴesideﾐial ﾏoヴtgage loaﾐ oヴigiﾐatoヴs to He liIeﾐsed. Washiﾐgtoﾐ “tate La┘s:

• Moヴtgage Bヴokeヴs PヴaIiIes AIt ふRCW ヱΓ.ヱヴヶぶ Desigﾐed to pヴoﾏote hoﾐest aﾐd faiヴ dealiﾐgs aﾐd to pヴeseヴ┗e puHliI IoﾐideﾐIe iﾐ the leﾐdiﾐg iﾐdustヴ┞ H┞ pヴe┗eﾐiﾐg fヴauduleﾐt pヴaIiIes H┞ ﾏoヴtgage Hヴokeヴs aﾐd loaﾐ oヴigiﾐatoヴs.

• The Coﾐsuﾏeヴ Loaﾐ AIt ふRCW ンヱ.ヰヴぶ Regulates ﾐoﾐHaﾐk leﾐdeヴs aﾐd ヴesideﾐial ﾏoヴtgage loaﾐ seヴ┗iIeヴs.

• The Coﾐsuﾏeヴ PヴoteIioﾐ AIt ふRCW ヱΓ.Βヶぶ PヴohiHits uﾐfaiヴ aﾐd deIepi┗e aIts oヴ pヴaIiIes iﾐ tヴade oヴ IoﾏﾏeヴIe.

• EsIヴo┘ Ageﾐt Registヴaioﾐ AIt ふRCW ヱΒ.ヴヴぶ Regulates the Ilosiﾐg pヴoIess of ┞ouヴ loaﾐ.

• Resideﾐial Moヴtgage Loaﾐ DisIlosuヴe ふRCW Γ.ヱヴヴ.ヰヲヰぶ Reケuiヴes that Hoヴヴo┘eヴs aヴe pヴo┗ided ┘ith a oﾐe page suﾏﾏaヴ┞ of all ﾏateヴial teヴﾏs of the loaﾐ if ﾐot pヴo┗ided ┘ith the Good Faith Esiﾏate ヴeケuiヴed uﾐdeヴ RE“PA.

The Regulatoヴ┞ AgeﾐIies:

• Coﾐsuﾏeヴ FiﾐaﾐIial PヴoteIioﾐ Buヴeau

• Depaヴtﾏeﾐt of Housiﾐg aﾐd UヴHaﾐ De┗elopﾏeﾐt

• Fedeヴal Deposit IﾐsuヴaﾐIe Coヴpoヴaioﾐ

• Fedeヴal Housiﾐg FiﾐaﾐIe Boaヴd

• Fedeヴal Reseヴ┗e Boaヴd

• Fedeヴal Tヴade Coﾏﾏissioﾐ

• Naioﾐal Cヴedit Uﾐioﾐ Adﾏiﾐistヴaioﾐ

• OiIe of Fedeヴal Housiﾐg Eﾐteヴpヴise O┗eヴsight

• OiIe of the Coﾏptヴolleヴ of the CuヴヴeﾐI┞

• Washiﾐgtoﾐ “tate Atoヴﾐe┞ Geﾐeヴal

• Washiﾐgtoﾐ “tate Depaヴtﾏeﾐt of FiﾐaﾐIial Iﾐsituioﾐs

• Washiﾐgtoﾐ “tate Depaヴtﾏeﾐt of LiIeﾐsiﾐg - Real Estate

• Washiﾐgtoﾐ “tate Housiﾐg FiﾐaﾐIe Coﾏﾏissioﾐ

• Washiﾐgtoﾐ “tate OiIe of IﾐsuヴaﾐIe Coﾏﾏissioﾐeヴ

FINAL WALKTHROUGH

Uﾐdeヴstaﾐdiﾐg disIlosuヴes duヴiﾐg the hoﾏe loaﾐ pヴoIess is IヴiiIal. Iﾐ this seIioﾐ, the ﾏost iﾏpoヴtaﾐt aspeIts of the ﾏaiﾐ disIlosuヴes that ┞ou ┘ill He ヴeIei┗iﾐg duヴiﾐg this pヴoIess aヴe ヴe┗ie┘ed.

Take the iﾏe to uﾐdeヴstaﾐd ┘hat ┞ou’ヴe Ioﾏﾏiiﾐg to Hefoヴe sigﾐiﾐg the loaﾐ papeヴs. Be suヴe to ask ┞ouヴ loaﾐ oiIeヴ to e┝plaiﾐ aﾐ┞thiﾐg Ioﾐfusiﾐg oヴ uﾐIleaヴ. Doﾐ’t hesitate to ask ケuesioﾐs aHout aﾐ┞ paヴt of the loaﾐ pヴoIess.

Withiﾐ thヴee da┞s of takiﾐg ┞ouヴ loaﾐ appliIaioﾐ, the leﾐdeヴ oヴ Hヴokeヴ is ヴeケuiヴed to pヴo┗ide ┞ou ┘ith ふdepeﾐdiﾐg oﾐ the tヴaﾐsaIioﾐぶ eitheヴ:

ヱ. Loaﾐ Esiﾏate oヴ

ヲ. Iﾐiial Good Faith Esiﾏate ふGFEぶ aﾐd Iﾐiial Tヴuth iﾐ Leﾐdiﾐg “tateﾏeﾐt ふTILぶ

Theﾐ, as the Ilosiﾐg date appヴoaIhes, oヴ sooﾐeヴ if aﾐ┞ of the teヴﾏs of the loaﾐ Ihaﾐge, ┞ou ┘ill ヴeIei┗e ふdepeﾐdiﾐg oﾐ the tヴaﾐsaIioﾐぶ eitheヴ:

ヱ. Closiﾐg DisIlosuヴe, oヴ

ヱ. Fiﾐal Good Faith Esiﾏate, Fiﾐal Tヴuth iﾐ Leﾐdiﾐg “tateﾏeﾐt ふTILぶ, aﾐd HUD-ヱ “etleﾏeﾐt “tateﾏeﾐt

The ヴeﾏaiﾐdeヴ of this seIioﾐ ┘ill He de┗oted to illustヴaiﾐg aﾐd e┝plaiﾐiﾐg these iﾏpoヴtaﾐt doIuﾏeﾐts.

Foヴ ﾏoヴe thaﾐ ンヰ ┞eaヴs Fedeヴal la┘ has ヴeケuiヴed leﾐdeヴs to pヴo┗ide t┘o difeヴeﾐt disIlosuヴe foヴﾏs to Ioﾐsuﾏeヴs appl┞iﾐg foヴ a ﾏoヴtgage aﾐd t┘o difeヴeﾐt foヴﾏs at oヴ shoヴtl┞ Hefoヴe Ilosiﾐg oﾐ the loaﾐ. “iﾐIe OIt. ン, ヲヰヱヵ, ﾐe┘ foヴﾏs ふLoaﾐ Esiﾏate aﾐd Closiﾐg DisIlosuヴeぶ aヴe used H┞ leﾐdeヴs iﾐ plaIe of the old foヴﾏs. The ﾐe┘ foヴﾏs ふLoaﾐ Esiﾏate - oﾐ pages ヱΓ-ヲン of this Hook, aﾐd Closiﾐg DisIlosuヴe - oﾐ pages ヲヴ-ヲΓ of this Hookぶ aヴe used foヴ ﾏost hoﾏe puヴIhases aﾐd ヴeiﾐaﾐIes; ho┘e┗eヴ, iﾐ ﾏost iﾐstaﾐIes, the old foヴﾏs ふiﾐIludiﾐg the Good Faith Esiﾏate ふGFEぶ oﾐ pages ンヱ-ンン of this guide, Tヴuth-iﾐLeﾐdiﾐg DisIlosuヴe ふTILぶ oﾐ page ンヵ of this guide, aﾐd HUD-ヱ oヴ HUD-ヱA “etleﾏeﾐt “tateﾏeﾐt ふHUD-ヱぶ oﾐ pages ンΓ, ヴヱ aﾐd ヴヲ of this guideぶ ﾏa┞ sill He used foヴ soﾏe tヴaﾐsaIioﾐs, suIh as hoﾏe eケuit┞ liﾐes of Iヴedit, ヴe┗eヴse ﾏoヴtgages, oヴ ﾏoヴtgages seIuヴed H┞ ﾏoHile hoﾏe oヴ a d┘elliﾐg that is ﾐot ataIhed to ヴeal pヴopeヴt┞.

Withiﾐ thヴee da┞s of ┞ouヴ appliIaioﾐ, the leﾐdeヴ is ヴeケuiヴed to pヴo┗ide ┞ou ┘ith a Loaﾐ Esiﾏate. If theヴe aヴe Ihaﾐges iﾐ ┞ouヴ appliIaioﾐ – iﾐIludiﾐg ┞ouヴ loaﾐ aﾏouﾐt, Iヴedit sIoヴe, oヴ ┗eヴiied iﾐIoﾏe – ┞ouヴ ヴate aﾐd teヴﾏs ┘ill likel┞ Ihaﾐge aﾐd the leﾐdeヴ ┘ill gi┗e ┞ou a ヴe┗ised Loaﾐ Esiﾏate. At least thヴee da┞s Hefoヴe ┞ouヴ Ilosiﾐg, ┞ou ┘ill get a Closiﾐg DisIlosuヴe.

Foヴ ﾏoヴe iﾐfoヴﾏaioﾐ aHout the ﾐe┘ disIlosuヴes please ┗isit the Coﾐsuﾏeヴ FiﾐaﾐIial PヴoteIioﾐ Buヴeau ふCFPBぶ at htp://┘┘┘.IoﾐsuﾏeヴiﾐaﾐIe.go┗/kﾐo┘Hefoヴe┞ouo┘e, iﾐIludiﾐg the foヴﾏ IheIklist ﾐoiﾐg iteﾏs pヴospeIi┗e hoﾏeo┘ﾐeヴs should uﾐdeヴstaﾐd.

LOAN ESTIMATE

The Loaﾐ Esiﾏate sho┘s the ke┞ featuヴes aﾐd Iosts of the ﾏoヴtgage loaﾐ foヴ ┘hiIh ┞ou aヴe appl┞iﾐg. It pヴo┗ides the iﾐteヴest ヴate, teヴﾏ, loaﾐ aﾏouﾐt, setleﾏeﾐt Iosts, e┝peIted pa┞ﾏeﾐts, aﾐd otheヴ sigﾐiiIaﾐt featuヴes of a paヴiIulaヴ loaﾐ.

Page ヱ of the Loaﾐ Esiﾏate forﾏ ふat ヴight, page ヱΓぶ iﾐIludes soﾏe of the ﾏoヴe iﾏpoヴtaﾐt featuヴes of ┞ouヴ loaﾐ.

• The top iﾐIludes ┞ouヴ ﾐaﾏe aﾐd addヴess, the pヴopeヴt┞ addヴess, the sale pヴiIe, the loaﾐ teヴﾏ, aﾐd ┘hetheヴ the ヴate is loIked ふaﾐd if so, ho┘ loﾐg the ヴate loIk is ┗alidぶ.

• The Ho┝ itled さLoaﾐ Teヴﾏsざ lists ┞ouヴ loaﾐ’s iﾏpoヴtaﾐt teヴﾏs suIh as the aﾏouﾐt of the loaﾐ, iﾐteヴest ヴate, aﾐd esiﾏated ﾏoﾐthl┞ pa┞ﾏeﾐt, aﾐd ┘hetheヴ aﾐ┞ of the aﾏouﾐts Iaﾐ iﾐIヴease ateヴ Ilosiﾐg, aﾐd ┘hetheヴ theヴe is a pヴepa┞ﾏeﾐt peﾐalt┞ oヴ Hallooﾐ pa┞ﾏeﾐt.

• The Ho┝ itled さPヴojeIted Pa┞ﾏeﾐtsざ pヴo┗ides a Hヴeakdo┘ﾐ of possiHle pa┞ﾏeﾐts foヴ the life of ┞ouヴ loaﾐ, sho┘iﾐg the aﾏouﾐts ┞ou ┘ill pa┞ eaIh ﾏoﾐth iﾐ pヴiﾐIipal aﾐd iﾐteヴest, ﾏoヴtgage iﾐsuヴaﾐIe, aﾐd the esiﾏated esIヴo┘ aﾏouﾐt.

• The Ho┝ itled さCosts at Closiﾐgざ pヴo┗ides the esiﾏated Ilosiﾐg Iosts aﾐd the esiﾏated aﾏouﾐt of Iash ┞ou ﾐeed to Hヴiﾐg to Ilosiﾐg ふﾏoヴe detail Iaﾐ He fouﾐd oﾐ page ヲヱぶ.

Page ヲ of the Loaﾐ Esiﾏate forﾏ ふat ヴight page, ヲヱぶ lists the details of the Ilosiﾐg Iosts:

• “eIioﾐ A lists fees that the leﾐdeヴ has Ioﾏplete Ioﾐtヴol o┗eヴ, suIh as oヴigiﾐaioﾐ aﾐd disIouﾐt poiﾐts, appliIaioﾐ fee, aﾐd uﾐdeヴ┘ヴiiﾐg fee. If this fee is higheヴ thaﾐ the fee ┞ou ┘eヴe iヴst ケuoted, iﾐd out ┘h┞ aﾐd ﾐegoiate a Heteヴ fee if possiHle.

• “eIioﾐ B lists fees that aヴe Ihaヴged H┞ thiヴd paヴies suIh as the appヴaisal, Iヴedit ヴepoヴt, aﾐd iﾐspeIioﾐ. These fees should He passed oﾐ to ┞ou ┘ithout aﾐ┞ ﾏaヴkup.

• “eIioﾐ C lists fees foヴ seヴ┗iIes pヴo┗ided H┞ thiヴd paヴies that ┞ou ﾏa┞ Ihoose ┞ouヴself. These aﾏouﾐts ﾏa┞ ┗aヴ┞ depeﾐdiﾐg oﾐ the seヴ┗iIe pヴo┗ideヴ ┞ou Ihoose.

• “eIioﾐ E lists ta┝es aﾐd otheヴ go┗eヴﾐﾏeﾐt fees suIh as ヴeIoヴdiﾐg fees oヴ otheヴ ta┝es.

• “eIioﾐ F aﾐd G list the iﾐteヴest, ta┝es, aﾐd pヴeﾏiuﾏs foヴ ﾏoヴtgage, lood, aﾐd hazaヴd iﾐsuヴaﾐIe. These ┘ill ┗aヴ┞ depeﾐdiﾐg oﾐ ┞ouヴ Ilosiﾐg date aﾐd aヴe ﾐot ﾐegoiaHle. If ┞ou Ilose iﾐ the staヴt of the ﾏoﾐth, ┞ou ┘ill He pヴepa┞iﾐg ﾏoヴe iﾐteヴest thaﾐ if ┞ou Ilose at the eﾐd of the ﾏoﾐth. These iteﾏs ﾏust He paid up fヴoﾐt oヴ deposited iﾐto aﾐ esIヴo┘ aIIouﾐt.

• “eIioﾐ J lists the total Ilosiﾐg Iosts H┞ addiﾐg up all the iteﾏs iﾐ seIioﾐs A-C aﾐd E-H aﾐd deduIiﾐg leﾐdeヴ Iヴedits ふif aﾐ┞ぶ.

Page ン of the Loaﾐ Esiﾏate forﾏ ふat ヴight, oﾐ page ヲンぶ pヴo┗ides addiioﾐal iﾐfoヴﾏaioﾐ aHout ┞ouヴ loaﾐ.

• The Ho┝ itled さCoﾏpaヴisoﾐsざ is a good tool ┘heﾐ Ioﾏpaヴiﾐg loaﾐ ofeヴs. It pヴo┗ides the total ┞ou ┘ill ha┗e paid iﾐ pヴiﾐIipal, iﾐteヴest, ﾏoヴtgage iﾐsuヴaﾐIe, aﾐd loaﾐ Iosts ateヴ i┗e ┞eaヴs as ┘ell as the aﾏouﾐt of pヴiﾐIipal ┞ou ┘ill ha┗e paid. Iﾐ addiioﾐ, it pヴo┗ides ┞ouヴ Aﾐﾐual PeヴIeﾐtage Rate ふAPRぶ ┘hiIh sho┘s ┞ouヴ Iosts o┗eヴ the loaﾐ teヴﾏ as a ヴate aﾐd ┞ouヴ Total Iﾐteヴest PeヴIeﾐtage ふTIPぶ ┘hiIh sho┘s the total aﾏouﾐt of iﾐteヴest that ┞ou pa┞ o┗eヴ the loaﾐ teヴﾏ as a peヴIeﾐtage of ┞ouヴ loaﾐ aﾏouﾐt.

• The Ho┝ itled さOtheヴ Coﾐsideヴaioﾐsざ pヴo┗ides iﾐfoヴﾏaioﾐ aHout appヴaisals, hoﾏeo┘ﾐeヴ’s iﾐsuヴaﾐIe, late pa┞ﾏeﾐts, aﾐd seヴ┗iIiﾐg.

CLO“ING DI“CLO“URE

The Closing Disclosure form sums up the terms of your loan and what you pay at closing. Typically, the closing ageﾐt gathers the periﾐeﾐt iﾐforﾏaioﾐ, Ioﾏpletes the Closing Disclosure, and disperses the required funds oﾐIe the Hu┞er aﾐd seller ha┗e Ieriied the aIIuraI┞ of the statement by signing it. The Closing Disclosure has a similar format and the same numbering system as the Loan Esiﾏate to easil┞ Ioﾏpare the ﾐuﾏHers oﾐ ┞our Closiﾐg DisIlosure to ┞our ﾏost reIeﾐt Loaﾐ Esiﾏate. There should ﾐot He aﾐ┞ sigﾐiiIaﾐt Ihaﾐges other thaﾐ those to which you have already agreed.

Page ヱ of the Closiﾐg DisIlosure forﾏ (at right) should be alﾏost ideﾐiIal to ┞our ﾏost reIeﾐt Loaﾐ Esiﾏate forﾏ. Iﾐ addiioﾐ to a stateﾏeﾐt of the traﾐsaIioﾐ aﾐd loaﾐ iﾐforﾏaioﾐ it ┘ill also iﾐIlude Ilosiﾐg iﾐforﾏaioﾐ suIh as the Ilosiﾐg date, disHurseﾏeﾐt date, aﾐd setleﾏeﾐt ageﾐt. You should then compare the “Loan Terms”, “Projected Payments”, and “Costs at Closing” boxes for any changes froﾏ the ﾏost reIeﾐt Loaﾐ Esiﾏate.

Page ヲ of the Closiﾐg DisIlosure forﾏ (on page 26) lists the details of the closing costs and is broken down iﾐto a suﾏﾏar┞ of eaIh part┞’s side of the traﾐsaIioﾐ Borro┘er-paid oﾐ the let side, “eller-paid iﾐ the ﾏiddle, aﾐd paid H┞ others oﾐ the right side. It is ideﾐiIal to page t┘o of the Loaﾐ “uﾏﾏar┞ e┝Iept the liﾐe iteﾏs are numbered and a majority of line items indicate to whom the money was paid.

Page ン of the Closiﾐg DisIlosure forﾏ (on page 27) includes two tables that will help you review your traﾐsaIioﾐ.

• A taHle eﾐitled さCalIulaiﾐg Cash to Closeざ ┘ill help ┞ou easil┞ see ┘hat Ihaﾐged froﾏ ┞our Loaﾐ Esiﾏate. The let Ioluﾏﾐ lists the aﾏouﾐt froﾏ the Loaﾐ Esiﾏate, the ﾏiddle Ioluﾏﾐ lists the aﾏouﾐts froﾏ the Closing Disclosure, and the right column tells you where the amounts changed and where to look on the Closiﾐg DisIlosure for aﾐ e┝plaﾐaioﾐ as to ┘h┞ the amounts changed.

• The さ“uﾏﾏaries of TraﾐsaIioﾐsざ taHle sho┘s aﾐ aHHre┗iated suﾏﾏar┞ of ┞our traﾐsaIioﾐ. The let Ioluﾏﾐ is ┞our traﾐsaIioﾐ ┘hile the right Ioluﾏﾐ is the seller’s traﾐsaIioﾐ. The ┗er┞ Hotoﾏ of the sheet provides the amount the borrower needs to provide

(or will receive) as well as the cash the seller will receive (or will need to provide) at closing.

Page ヴ of the Closiﾐg DisIlosure forﾏ (on page 28) pro┗ides addiioﾐal loaﾐ disIlosures. It iﾐIludes iﾐforﾏaioﾐ such as whether your loan is assumable, has a demand feature, Iaﾐ ﾐegai┗el┞ aﾏorize, aﾐd ┘hat ┞our leﾐder ┘ill do ┘ith parial pa┞ﾏeﾐts. Iﾐ addiioﾐ, it pro┗ides iﾐforﾏaioﾐ aHout ┞our esIro┘ aIIouﾐt. It iﾐIludes aﾐ esiﾏate of ┞our propert┞ Iosts o┗er ┞ear oﾐe ふsuIh as homeowner’s insurance, property taxes and homeowner’s assoIiaioﾐ dues. It also pro┗ides the aﾏouﾐt of ┞our monthly escrow payment.

Page ヵ of the Closiﾐg DisIlosure forﾏ (on page 29) provides a breakdown of your total payments (amount you ┘ill ha┗e paid ater ﾏakiﾐg all pa┞ﾏeﾐtsぶ, iﾐaﾐIe Iharge ふthe dollar aﾏouﾐt the loaﾐ Iosts ┞ouぶ, aﾏouﾐt iﾐaﾐIed ふthe loaﾐ aﾏouﾐt ater pa┞iﾐg the up-froﾐt iﾐaﾐIe Ihargeぶ, APR (your costs over the loan term expressed as a rate), and TIP (the total amount of interest you will pay over the loan terms as a percentage of your loan amount). It also iﾐIludes addiioﾐal loaﾐ disIlosures aﾐd IoﾐtaIt iﾐforﾏaioﾐ for ┞our leﾐder, ﾏortgage Hroker ふif ┞ou used one), buyer’s real estate broker, seller’s real estate broker, aﾐd the setleﾏeﾐt ageﾐt.

GOOD FAITH E“TIMATE みGFEむ

“iﾏilaヴ to the Loaﾐ Esiﾏate, Hut oﾐl┞ used iﾐ Ieヴtaiﾐ iﾐstaﾐIes, the Good Faith Esiﾏate ふGFEぶ, oﾐ the ﾐe┝t thヴee pages, sho┘s the iﾐteヴest ヴate, teヴﾏ, loaﾐ aﾏouﾐt, aﾐd all setleﾏeﾐt Iosts oﾐ a paヴiIulaヴ loaﾐ. If ┞ou’ヴe usiﾐg a GFE to Ioﾏpaヴe leﾐdeヴs aﾐd Hヴokeヴs, the ﾏost sigﾐiiIaﾐt fees aヴe those Ihaヴged H┞ thiヴd paヴies suIh as ふHut ﾐot liﾏited toぶ appヴaisal, Iヴedit ヴepoヴt, iﾐspeIioﾐ, assuﾏpioﾐ, ta┝ seヴ┗iIe aﾐd lood IeヴiiIaioﾐ. These fees should He passed oﾐ to the Hoヴヴo┘eヴ ┘ithout aﾐ┞ ﾏaヴkup. A leﾐdeヴ has Ioﾏplete Ioﾐtヴol o┗eヴ fees suIh as oヴigiﾐaioﾐ aﾐd disIouﾐt poiﾐts, pヴoIessiﾐg, uﾐdeヴ┘ヴiiﾐg aﾐd adﾏiﾐistヴai┗e fees. If this fee is higheヴ theﾐ ┞ou ┘eヴe iヴst ケuoted, iﾐd out ┘h┞ aﾐd ﾐegoiate a Heteヴ fee if possiHle.

Iﾐteヴest, ta┝es aﾐd pヴeﾏiuﾏs foヴ ﾏoヴtgage, lood aﾐd hazaヴd iﾐsuヴaﾐIe ┘ill ┗aヴ┞ depeﾐdiﾐg oﾐ ┞ouヴ Ilosiﾐg date aﾐd aヴe ﾐot ﾐegoiaHle. If ┞ou Ilose iﾐ the Hegiﾐﾐiﾐg of the ﾏoﾐth, ┞ou ┘ill He pヴepa┞iﾐg ﾏoヴe iﾐteヴest thaﾐ if ┞ou ┘eヴe to Ilose at the eﾐd of the ﾏoﾐth. These iteﾏs ﾏust He paid up fヴoﾐt oヴ deposited iﾐto aﾐ EsIヴo┘ aIIouﾐt. Youヴ EsIヴo┘ fees ﾏa┞ He ﾐegoiaHle if ┞ou plaﾐ eaヴl┞ ┘ith the leﾐdeヴ to kﾐo┘ ┘ho ┘as seleIted as ┞ouヴ setleﾏeﾐt ageﾐt. You Iaﾐ also Ihoose the setleﾏeﾐt ageﾐt ┞ouヴself. OﾐIe ┞ou kﾐo┘ the ideﾐit┞ of the setleﾏeﾐt ageﾐt, ┞ou Iaﾐ IoﾐtaIt the setleﾏeﾐt ageﾐt aﾐd ﾐegoiate ┞ouヴ Ilosiﾐg fees. Iﾐ aﾐ┞ Iase, it is sill a good idea to ask foヴ lo┘eヴ fees.

Aﾐd iﾐall┞, theヴe aヴe ┞ouヴ go┗eヴﾐﾏeﾐt fees suIh as the Iit┞ aﾐd Iouﾐt┞ ta┝ staﾏps, ヴeIoヴdiﾐg fees aﾐd pest iﾐspeIioﾐs.

TIP: “oﾏeiﾏes the fees listed oﾐ the Good Faith Esiﾏate Iaﾐ Ihaﾐge Hefoヴe Ilosiﾐg. “oﾏe ヴeasoﾐs iﾐIlude:

• Youヴ ﾏoヴtgage Hヴokeヴ ﾏa┞ ha┗e to suHﾏit ┞ouヴ loaﾐ appliIaioﾐ to a difeヴeﾐt leﾐdeヴ, eitheヴ to get a Heteヴ ヴate oヴ HeIause the uﾐdeヴ┘ヴiteヴ at the iヴst leﾐdeヴ didﾐ’t appヴo┗e ┞ouヴ loaﾐ. Difeヴeﾐt leﾐdeヴs ha┗e difeヴeﾐt fees.

• If ┞ouヴ appヴaisal is seﾐt to appヴaisal ヴe┗ie┘ H┞ the leﾐdeヴ, soﾏe leﾐdeヴs Ihaヴge a fee foヴ that.

• You deIide to use a difeヴeﾐt loaﾐ pヴogヴaﾏ oヴ a difeヴeﾐt loaﾐ aﾏouﾐt.

• You Ilose eaヴlieヴ oヴ lateヴ iﾐ the ﾏoﾐth thaﾐ esiﾏated.

• You deIide to use a difeヴeﾐt hoﾏe o┘ﾐeヴ’s iﾐsuヴaﾐIe Ioﾏpaﾐ┞, poliI┞, oヴ deduIiHle aﾏouﾐt.

Ha┗e eaIh ﾏoヴtgage pヴofessioﾐal go o┗eヴ the Good Faith Esiﾏates ┘ith ┞ou. Coﾏpaヴe the iteﾏs liﾐe H┞ liﾐe. If ┞ou ﾐoiIe the Iost of aﾐ┞ iteﾏ oﾐ a GFE is sigﾐiiIaﾐtl┞ higheヴ oヴ lo┘eヴ thaﾐ that of the saﾏe iteﾏ oﾐ otheヴ GFE’s, ask the loaﾐ oヴigiﾐatoヴ to e┝plaiﾐ the difeヴeﾐIe. “oﾏe dishoﾐest loaﾐ oヴigiﾐatoヴs ﾏight さlo┘ Hallざ theiヴ setleﾏeﾐt Iosts to gaiﾐ ┞ouヴ Husiﾐess. “tate aﾐd Fedeヴal la┘ ヴeケuiヴes leﾐdeヴs aﾐd Hヴokeヴs to pヴo┗ide a ┘ヴiteﾐ good faith esiﾏate ┘ithiﾐ thヴee da┞s ateヴ takiﾐg a loaﾐ appliIaioﾐ fヴoﾏ a Hoヴヴo┘eヴ.

The Tヴuth-Iﾐ-Leﾐdiﾐg ふTILぶ DisIlosuヴe “tateﾏeﾐt is sho┘ﾐ at ヴight. The puヴpose of the TIL is to sho┘ ┞ou the esiﾏated total Iosts of Hoヴヴo┘iﾐg, the e┝peIted pa┞ﾏeﾐt aﾏouﾐts o┗eヴ the life of the loaﾐ, ┘hetheヴ the loaﾐ has a pヴe-pa┞ﾏeﾐt peﾐalt┞, aﾐd otheヴ sigﾐiiIaﾐt featuヴes of ┞ouヴ loaﾐ.

No┘ Let’s Look at “oﾏe of Ke┞ “eIioﾐs of the Tヴuth Iﾐ Leﾐdiﾐg DisIlosuヴe “tateﾏeﾐt:

Aﾐﾐual PerIeﾐtage Rate ふAPRぶ

The APR is the aﾐﾐual Iost of the loaﾐ iﾐ peヴIeﾐtage teヴﾏs that take iﾐto aIIouﾐt ┗aヴious Ihaヴges paid H┞ the Hoヴヴo┘eヴ ┘heヴeiﾐ iﾐteヴest oﾐ the loaﾐ is oﾐl┞ a paヴt of the Ihaヴges.

The puヴpose of aﾐ APR is to allo┘ ┞ou to ケuiIkl┞ Ioﾏpaヴe the total Iosts Het┘eeﾐ Ioﾏpeiﾐg loaﾐs ┘ithout ha┗iﾐg to aﾐal┞ze all of the iﾐdi┗idual Iosts ┘ithiﾐ eaIh loaﾐ.

Foヴ E┝aﾏple:

a. A $ヱヰヰ,ヰヰヰ ンヰ-┞eaヴ i┝ed ヴate loaﾐ at Α% iﾐteヴest ヴate ┘ith iﾐaﾐIe Iosts of $ヵ,ヰヰヰ ヴesults iﾐ aﾐ APR of Α.ヵヲ%.

H. While the saﾏe loaﾐ at Β% iﾐteヴest ヴate ┘ith iﾐaﾐIe Iosts of $ヴ,ヰヰヰ ヴesults iﾐ aﾐ APR of Β.ヴヴ%.

B┞ Ioﾏpaヴiﾐg the APRs ふΑ.ヵヲ% aﾐd Β.ヴヴ%ぶ aloﾐe, ┘e Iaﾐ see fヴoﾏ ouヴ e┝aﾏple that the iヴst loaﾐ ふΑ.ヵヲ%ぶ iﾐiiall┞ seeﾏs to ha┗e a higheヴ Iost ho┘e┗eヴ, HeIause the APR is lo┘eヴ it ┘ill pヴo┗ide a lo┘eヴ total Iost to ┞ou iﾐ the loﾐg ヴuﾐ. Coﾏpaヴiﾐg APR’s oﾐ loaﾐs is a ケuiIk ┘a┞ to deteヴﾏiﾐe the Iost of eaIh loaﾐ.

FiﾐaﾐIe Charge

This is the suﾏ of the leﾐdeヴ Ihaヴges that aヴe iﾐIuヴヴed at the iﾏe the loaﾐ is ┘ヴiteﾐ. The gヴeateヴ these Ihaヴges, the higheヴ the APR oﾐ the loaﾐ.

Aﾏouﾐt FiﾐaﾐIed

This is the aﾏouﾐt pヴo┗ided to the Hoヴヴo┘eヴ oヴ used oﾐ the Hoヴヴo┘eヴ’s Hehalf. This is the pヴiﾐIipal loaﾐ aﾏouﾐt less the pヴepaid iﾐaﾐIe Ihaヴges.

Total of Payﾏeﾐts

Total of pa┞ﾏeﾐts to He ﾏade to┘aヴd pヴiﾐIipal, iﾐteヴest, pヴepaid iﾐaﾐIe Ihaヴges, aﾐd ﾏoヴtgage iﾐsuヴaﾐIe ふif appliIaHleぶ, o┗eヴ the life of the loaﾐ. The total of pa┞ﾏeﾐts iﾐ the pa┞ﾏeﾐt sIhedule ┘ill also eケual this aﾏouﾐt.

Payﾏeﾐt “Ihedule

This is the Hヴeak do┘ﾐ of the ﾐuﾏHeヴ aﾐd aﾏouﾐts of pa┞ﾏeﾐts that ┘ill He due uﾐdeヴ the stated Ioﾐdiioﾐs of the loaﾐ at the iﾏe the loaﾐ is ﾏade.

VariaHle Rate Feature

A loaﾐ ┘ith a ┗aヴiaHle ヴate featuヴe, also kﾐo┘ﾐ as aﾐ AdjustaHle Rate Moヴtgage ふARMぶ, ┘ill ha┗e pa┞ﾏeﾐt adjustﾏeﾐts that ┘ill oIIuヴ peヴ the teヴﾏs agヴeed oﾐ iﾐ the ﾐote.

IﾐsuraﾐIe

The iﾐsuヴaﾐIe seIioﾐ ┘ill ideﾐif┞ aﾐ┞ iﾐsuヴaﾐIe ヴeケuiヴed ふhoﾏe o┘ﾐeヴ pヴopeヴt┞ iﾐsuヴaﾐIe oヴ lood iﾐsuヴaﾐIeぶ oヴ aﾐ┞ Iヴedit life aﾐd Iヴedit disaHilit┞ iﾐsuヴaﾐIe the Hoヴヴo┘eヴ has iﾐdiIated a desiヴe to puヴIhase. Cヴedit life aﾐd Iヴedit disaHilit┞ aヴe aﾐ addiioﾐal Iost to the Hoヴヴo┘eヴ aﾐd Iaﾐﾐot e┗eヴ He a ヴeケuiヴeﾏeﾐt foヴ oHtaiﾐiﾐg a loaﾐ.

Prepayﾏeﾐt

The pヴepa┞ﾏeﾐt seIioﾐ iﾐdiIates if the Hoヴヴo┘eヴ has to pa┞ oヴ does ﾐot ha┗e to pa┞ a peﾐalt┞ foヴ pa┞iﾐg of the pヴiﾐIipal HalaﾐIe of the loaﾐ pヴioヴ to a stated peヴiod of iﾏe iﾐ the ﾐote agヴeeﾏeﾐt. This seIioﾐ also ideﾐiies if the Hoヴヴo┘eヴ ┘ill ヴeIei┗e a ヴefuﾐd of aﾐ┞ of the iﾐaﾐIe Ihaヴges if the loaﾐ is paid of eaヴl┞.

The Washiﾐgtoﾐ “tate DisIlosuヴe “uﾏﾏaヴ┞ is sho┘ﾐ at ヴight. This doIuﾏeﾐt ﾏust He used if the GFE is ﾐot, uﾐless the Loaﾐ Esiﾏate is pヴo┗ided. This foヴﾏ Hヴiﾐgs togetheヴ iﾐfoヴﾏaioﾐ fヴoﾏ the Good Faith Esiﾏate ふGFEぶ aﾐd the Tヴuth iﾐ Leﾐdiﾐg ふTILぶ doIuﾏeﾐts. Youヴ leﾐdeヴ oヴ Hヴokeヴ is ヴeケuiヴed to pヴo┗ide ┞ou a Iop┞ of this disIlosuヴe ┘ithiﾐ thヴee da┞s of ヴeIei┗iﾐg ┞ouヴ loaﾐ appliIaioﾐ if the┞ do ﾐot pヴo┗ide ┞ou the GFE.

The oﾐe-page disIlosuヴe suﾏﾏaヴ┞ ﾏa┞ He aヴヴaﾐged difeヴeﾐtl┞ fヴoﾏ the e┝aﾏple to the ヴight, Hut ﾏust Ioﾐtaiﾐ the saﾏe eleﾏeﾐts iﾐ suIh a ┘a┞ that is eas┞ to ヴead aﾐd uﾐdeヴstaﾐd.

Fiヴst ﾏake suヴe ┞ou ha┗e the ヴight disIlosuヴe. Theヴe is oﾐe foヴ i┝ed ヴate loaﾐs aﾐd oﾐe foヴ adjustaHle ヴate loaﾐs. Youヴ ﾐaﾏe aﾐd pヴopeヴt┞ addヴess should He at the top of the foヴﾏ, aﾐd Helo┘ this should He the teヴﾏs of ┞ouヴ loaﾐ. This seIioﾐ ﾏust iﾐIlude the leﾐgth of the loaﾐ iﾐ ┞eaヴs, the loaﾐ aﾏouﾐt, the iﾐteヴest ヴate aﾐd pa┞ﾏeﾐt aﾏouﾐt. Moﾐthl┞ ヴeseヴ┗es aヴe iteﾏs added to ┞ouヴ ﾏoﾐthl┞ pa┞ﾏeﾐt ┘hiIh ┞ouヴ leﾐdeヴ holds iﾐ a sepaヴate aIIouﾐt, aﾐ esIヴo┘ aIIouﾐt, to pa┞ iteﾏs suIh as ヴeal estate ta┝es, hoﾏeo┘ﾐeヴs iﾐsuヴaﾐIe, ﾏoヴtgage iﾐsuヴaﾐIe, aﾐd/oヴ hoﾏeo┘ﾐeヴ’s assoIiaioﾐ dues. The foヴﾏ should ヴeleIt ┘hiIh oﾐes aヴe iﾐIluded aﾐd ┘hiIh oﾐes aヴe ﾐot.

Tip: Not all leﾐdeヴs ofeヴ to hold ┞ouヴ ﾏoﾐe┞ iﾐ aﾐ esIヴo┘ aIIouﾐt. You ﾏa┞ ha┗e to pa┞ theﾏ oﾐ ┞ouヴ o┘ﾐ.

All fees Ihaヴged H┞ the leﾐdeヴ oヴ Hヴokeヴ ﾏust He oﾐ this foヴﾏ. Uﾐdeヴ┘ヴiiﾐg, pヴoIessiﾐg aﾐd otheヴ fees paid to the leﾐdeヴ ┘ill He disIlosed as さOtheヴ Fees.ざ Fees paid foヴ seヴ┗iIes otheヴ thaﾐ to the leﾐdeヴ oヴ the Hヴokeヴ, suIh as appヴaisal oヴ iﾐspeIioﾐ fees, ┘ill ﾐot He iﾐIluded iﾐ this iguヴe.

The disIlosuヴe also ﾏust tell ┞ou if theヴe is pヴepa┞ﾏeﾐt peﾐalt┞, a luﾏp suﾏ Hallooﾐ pa┞ﾏeﾐt due at the eﾐd, if ┞ouヴ iﾐteヴest ヴate is loIked, ┘hetheヴ ┞ouヴ ヴate oヴ fees aヴe higheヴ due to ヴeduIed doIuﾏeﾐtaioﾐ aﾐd if ┞ouヴ Hヴokeヴ

“UMMARY

is ヴeIei┗iﾐg a Y“P.

If aﾐ┞ of the iﾐfoヴﾏaioﾐ oﾐ this page has さ“igﾐiiIaﾐt Chaﾐgesざ theﾐ ヴedisIlosuヴe is ヴeケuiヴed. さ“igﾐiiIaﾐt Chaﾐgesざ iﾐIlude a Ihaﾐge iﾐ:

• Whetheヴ the loaﾐ Ioﾐtaiﾐs a pヴepa┞ﾏeﾐt peﾐalt┞.

• Whetheヴ the loaﾐ Ioﾐtaiﾐs a Hallooﾐ pa┞ﾏeﾐt.

• Whetheヴ the pヴopeヴt┞ ta┝es aﾐd iﾐsuヴaﾐIe aヴe iﾐIluded iﾐ the loaﾐ pa┞ﾏeﾐt.

• Whetheヴ the loaﾐ Iost oヴ ヴate is Hased oﾐ ヴeduIed doIuﾏeﾐtaioﾐ.

• Aﾐ┞ iﾐIヴease iﾐ the pヴiﾐIipal loaﾐ aﾏouﾐt H┞ i┗e peヴIeﾐt oヴ ﾏoヴe.

• Aﾐ┞ iﾐIヴease iﾐ the iﾐteヴest ヴate gヴeateヴ thaﾐ oﾐeeighth of oﾐe peヴIeﾐt.

• A Ihaﾐge iﾐ the loaﾐ t┞pe ふi┝ed to adjustaHle oヴ adjustaHle to i┝ed.

• Aﾐ┞ iﾐIヴease of the disIlosed fees H┞ i┗e huﾐdヴed dollaヴs oヴ ﾏoヴe.

If ┞ou ﾐeed help uﾐdeヴstaﾐdiﾐg ┞ouヴ loaﾐ IoﾐtaIt DFI at ヱ-ΒΑΑ-Αヴヶ-ヴンンヴ

Page ヱ of the HUD-ヱ “etleﾏeﾐt “tateﾏeﾐt is sho┘ﾐ at ヴight. This stateﾏeﾐt is like a ヴeIeipt foヴ ┞ouヴ hoﾏe puヴIhase oヴ ヴeiﾐaﾐIe. It sho┘s ┞ou ┘hat ┞ou Hought, aﾐd ┘ho ┞ou Hought it fヴoﾏ. T┞piIall┞, the Ilosiﾐg ageﾐt gatheヴs the peヴiﾐeﾐt iﾐfoヴﾏaioﾐ, Ioﾏpletes the “etleﾏeﾐt “tateﾏeﾐt aﾐd dispeヴses the ヴeケuiヴed fuﾐds oﾐIe the Hu┞eヴ aﾐd selleヴ ha┗e Ieヴiied the aIIuヴaI┞ of the stateﾏeﾐt H┞ sigﾐiﾐg it. The “etleﾏeﾐt “tateﾏeﾐt has the saﾏe ﾐuﾏHeヴiﾐg s┞steﾏ as ┞ouヴ Good Faith Esiﾏate to keep it uﾐifoヴﾏ aﾐd eas┞ to uﾐdeヴstaﾐd.

TIP: It’s ┗eヴ┞ iﾏpoヴtaﾐt that ┞ou ┗eヴif┞ all the loaﾐ Iosts assoIiated ┘ith the tヴaﾐsaIioﾐ iﾐ the ΒヰヱΒヱヱ seIioﾐ of the “etleﾏeﾐt “tateﾏeﾐt. If ┞ouヴ loaﾐ oヴigiﾐaioﾐ fee oヴ otheヴ Hヴokeヴ/leﾐdeヴ fee has iﾐIヴeased fヴoﾏ the iﾐal Good Faith Esiﾏate, iﾐd out ┘h┞ it ┘as ﾐot disIlosed to ┞ou uﾐil Ilosiﾐg da┞.

The iヴst page of the “etleﾏeﾐt sheet is Hヴokeﾐ do┘ﾐ iﾐto a suﾏﾏaヴ┞ of the Hoヴヴo┘eヴ’s ふHu┞eヴぶ tヴaﾐsaIioﾐ oﾐ the let side aﾐd a suﾏﾏaヴ┞ of the selleヴ’s tヴaﾐsaIioﾐ oﾐ the ヴight. The seIoﾐd page is di┗ided iﾐto those Iosts that aヴe さpaid fヴoﾏ Hoヴヴo┘eヴ’s fuﾐds at setleﾏeﾐtざ aﾐd those Iosts that aヴe さpaid fヴoﾏ selleヴ’s fuﾐds at setleﾏeﾐtざ. If Hu┞eヴ, selleヴ, aﾐd itle ageﾐt agヴee that the stateﾏeﾐt is tヴue aﾐd aIIuヴate, all paヴies sigﾐ aﾐd date the sheet to┘aヴd the Hotoﾏ of page t┘o. The follo┘iﾐg ke┞ seIioﾐs of the HUD-ヱ, sho┘ﾐ at ヴight, should He thoヴoughl┞ ヴe┗ie┘ed H┞ ┞ou pヴioヴ to sigﾐiﾐg aﾐ┞ papeヴ┘oヴk at Ilosiﾐg: Boヴヴo┘eヴ’s/“elleヴ’s TヴaﾐsaIioﾐ:

Liﾐe ヱヰヱ – Lists the IoﾐtヴaIt pヴiIe as stated iﾐ the PuヴIhase aﾐd “ale Agヴeeﾏeﾐt.

Liﾐe ヱヰン – Total setleﾏeﾐt Ihaヴges to the Hoヴヴo┘eヴs; this is oHtaiﾐed fヴoﾏ addiﾐg up all of the Iosts oﾐ the seIoﾐd page aﾐd is sho┘ﾐ as a suHtotal oﾐ Liﾐe ヱヴヰヰ.

Liﾐe ヱヲヰ – This is the total aﾏouﾐt due fヴoﾏ the Hoヴヴo┘eヴ iﾐIlusi┗e of the IoﾐtヴaIt pヴiIe, Iosts listed oﾐ page t┘o of the sheet aﾐd adjustﾏeﾐts foヴ ta┝es aﾐd otheヴ iteﾏs pad H┞ selleヴ iﾐ ad┗aﾐIe.

Liﾐe ヲヲヰ – “tates the total aﾏouﾐt paid H┞ oヴ foヴ Hoヴヴo┘eヴs iﾐIludiﾐg deposit ﾏoﾐies, pヴiﾐIipal loaﾐsふsぶ aﾐd “elleヴ AssistaﾐIe.

Liﾐe ンヰン – The iguヴe heヴe is the total aﾏouﾐt of fuﾐds ふiﾐ Iash oヴ Ieヴiied IheIkぶ that Hoヴヴo┘eヴ ﾐeeds to Hヴiﾐg to setleﾏeﾐt iﾐ oヴdeヴ to Ilose the tヴaﾐsaIioﾐ. If ┞ouヴ tヴaﾐsaIioﾐ is a ヴeiﾐaﾐIe to get Iash out, ┞ou ┘ill iﾐd the aﾏouﾐt ┞ou aヴe to ヴeIei┗e heヴe.

Liﾐes Αヰヱ – Αヰン – “tates the total Ioﾏﾏissioﾐ to selliﾐg ageﾐt oヴ Hヴokeヴ.

Liﾐes Βヰヱ-Βヱヱ – All of the Iosts assoIiated ┘ith the loaﾐ suIh as oヴigiﾐaioﾐ fees, appヴaisal fee, Iヴedit ヴepoヴt fee, ┗aヴious leﾐdeヴ aﾐd Hヴokeヴ fees, adﾏiﾐistヴaioﾐ fees, aﾐd lood IeヴiiIaioﾐ fee aヴe listed.

Liﾐes Γヰヱ – Γヰヵ – Aﾐ┞ aﾏouﾐts that aヴe ヴeケuiヴed H┞ the leﾐdeヴ to He paid iﾐ ad┗aﾐIe, suIh as dail┞ iﾐteヴest, aヴe set foヴth heヴe. Foヴ e┝aﾏple, if Bu┞eヴ setles oﾐ Ma┞ ヲヰ, ヲヰヱヴ, the leﾐdeヴ ┘ill likel┞ ヴeケuiヴe that the Bu┞eヴ pa┞ iﾐ ad┗aﾐIe dail┞ iﾐteヴest oﾐ the loaﾐ uﾐil Juﾐe ヱ, ヲヰヱヴ. Liﾐes ヱヰヰヱ-ヱヰヰΓ – All ヴeseヴ┗es that the leﾐdeヴ ヴeケuiヴes to He set aside iﾐ aﾐ esIヴo┘ aIIouﾐt suIh as hazaヴd iﾐsuヴaﾐIe, Iouﾐt┞ ta┝es, aﾐd sIhool ta┝es aヴe set foヴth. Liﾐes ヱヱヰヱ – ヱヱヱン – IﾐIludes all Ihaヴges assoIiated ┘ith the Bu┞eヴ’s itle iﾐsuヴaﾐIe suIh as the iﾐsuヴaﾐIe pヴeﾏiuﾏ aﾐd o┗eヴﾐight ┘iヴe fee. Liﾐes ヱヲヰヱ – ヱヲヰン – Details the ヴeIoヴdiﾐg fees Ihaヴged H┞ the Iouﾐt┞ to ヴeIoヴd the deed aﾐd ﾏoヴtgage aﾐd sets foヴth the pヴopoヴioﾐate shaヴe of the ヴeal estate tヴaﾐsfeヴ ta┝es foヴ Bu┞eヴ aﾐd “elleヴ.

Adjustﾏeﾐts to Costs “hared By Buyer aﾐd “eller At setleﾏeﾐt it is usuall┞ ﾐeIessaヴ┞ to ﾏake aﾐ adjustﾏeﾐt Het┘eeﾐ Hu┞eヴ aﾐd selleヴ foヴ pヴopeヴt┞ ta┝es aﾐd otheヴ e┝peﾐses. The adjustﾏeﾐts Het┘eeﾐ Hu┞eヴ aﾐd selleヴ aヴe sho┘ﾐ oﾐ the let aﾐd ヴight side of page ヱ oﾐ the “etleﾏeﾐt “tateﾏeﾐt. “iﾏilaヴ adjustﾏeﾐts aヴe ﾏade foヴ hoﾏeo┘ﾐeヴ’s assoIiaioﾐ dues, speIial assessﾏeﾐts, aﾐd uiliies. Be suヴe ┞ou ┘oヴk out these Iost shaヴiﾐg aヴヴaﾐgeﾏeﾐts oヴ さpヴo-ヴaioﾐsざ ┘ith the selleヴ aﾐd setleﾏeﾐt ageﾐt Hefoヴe the aItual da┞ of setleﾏeﾐt. T┞piIall┞ these fees aヴe agヴeed upoﾐ iﾐ ┘ヴiiﾐg thヴough the ﾐegoiaioﾐ of ┞ouヴ PuヴIhase & “ales Agヴeeﾏeﾐt.

FINAL CON“IDERATION“

The deIisioﾐs ┞ou ﾏake at Ilosiﾐg ﾏa┞ He ┘ith ┞ou foヴ the life of the loaﾐ. E┗eﾐ at this late date ┞ou Iaﾐ ﾐegoiate teヴﾏs oヴ seek ad┗iIe fヴoﾏ ┞ouヴ ヴealtoヴ, aﾐ atoヴﾐe┞ oヴ ┞ouヴ loIal housiﾐg authoヴit┞ iﾐ ﾏakiﾐg a iﾐal deIisioﾐ. The Hotoﾏ liﾐe is the iﾐal deIisioﾐ lies ┘ith ┞ou.

Heヴe aヴe se┗eヴal thiﾐgs to Ioﾐsideヴ Hefoヴe ┞ouヴ sigﾐiﾐg da┞.

Befoヴe “igﾐiﾐg Da┞:

• CoﾐtaIt the leﾐdeヴ oヴ EsIヴo┘ Ageﾐt aﾐd ヴeケuest Iopies of ┞ouヴ Ioﾏpleted doIuﾏeﾐts – suIh as the Closiﾐg DisIlosuヴe,setleﾏeﾐt stateﾏeﾐt ふHUD-ヱぶ, Deed of Tヴust, Note, aﾐd all Addeﾐduﾏs aﾐd Rideヴs –at least oﾐe da┞ Hefoヴe ┞ouヴ appoiﾐtﾏeﾐt to sigﾐ ┞ouヴ loaﾐ.

• Visit a loIal housiﾐg Iouﾐseloヴ, aﾐ atoヴﾐe┞ oヴ a tヴusted faﾏil┞ ﾏeﾏHeヴ oヴ fヴieﾐd to ヴe┗ie┘ all doIuﾏeﾐts. Make suヴe that ┞ou uﾐdeヴstaﾐd all the teヴﾏs of the loaﾐ.

• CheIk ┞ouヴ Pヴoﾏissoヴ┞ Note: Is the iﾐteヴest ヴate IoヴヴeIt?

• Is the pa┞ﾏeﾐt ┘hat ┞ou e┝peIted aﾐd ┘ill it iﾐIlude ta┝es aﾐd iﾐsuヴaﾐIe?

• What is the teヴﾏ of the loaﾐ? ンヰ ┞eaヴs? ヲヰ ┞eaヴs? ヱヵ ┞eaヴs? oヴ e┗eﾐ ヴヰ ┞eaヴs oヴ loﾐgeヴ?

• Is theヴe a pヴepa┞ﾏeﾐt peﾐalt┞? Is theヴe a Hallooﾐ pa┞ﾏeﾐt? If ┞ou aヴe uﾐsuヴe of the iﾏpaIt of these featuヴes, IoﾐtaIt a ﾐoﾐ-pヴoit housiﾐg ageﾐI┞ oヴ a la┘┞eヴ.

• If ┞ouヴ loaﾐ is aﾐ AdjustaHle Rate Moヴtgage, ┞ou should ヴeIei┗e aﾐ ARM DisIlosuヴe oヴ Rideヴ. Re┗ie┘ this doIuﾏeﾐt. Make suヴe ┞ou uﾐdeヴstaﾐd ho┘ oteﾐ ┞ouヴ ヴate Iaﾐ iﾐIヴease, ho┘ ﾏuIh ┞ouヴ pa┞ﾏeﾐt Iaﾐ iﾐIヴease, ┘heﾐ the ヴate ┘ill go up, aﾐd ┘hat the ﾏa┝iﾏuﾏ iﾐteヴest ヴate aﾐd the ﾏa┝iﾏuﾏ ﾏoﾐthl┞ pa┞ﾏeﾐts ┘ill He.

• If a ﾏoヴtgage Hヴokeヴ is iﾐ┗ol┗ed, is the Hヴokeヴ Ihaヴgiﾐg aﾐ┞thiﾐg otheヴ thaﾐ a ﾏoヴtgage Hヴokeヴ fee? Foヴ e┝aﾏple, aヴe the┞ also Ihaヴgiﾐg a pヴoIessiﾐg fee, aﾐ uﾐdeヴ┘ヴiiﾐg fee, oヴ soﾏe otheヴ kiﾐd of fee of

┘hiIh ┞ou ┘eヴe uﾐa┘aヴe?

TIP: Be suヴe to ヴeケuest a Iop┞ of ┞ouヴ pヴopeヴt┞ appヴaisal fヴoﾏ ┞ouヴ Hヴokeヴ, fedeヴal la┘ gi┗es ┞ou a ヴight to ヴeIei┗e a Iop┞.

All these doIuﾏeﾐts plus otheヴs ┞ou ヴeIei┗ed at Ilosiﾐg ﾏake up ┞ouヴ peヴsoﾐal loaﾐ ile.

Keep these togetheヴ ┘ith all otheヴ iteﾏs ヴelaiﾐg to ┞ouヴ hoﾏe iﾐ a safe plaIe.

Befoヴe ┞ou Lea┗e the Closiﾐg, Be “uヴe You ReIei┗e Copies of:

• Youヴ Pヴoﾏissoヴ┞ Note

• The Deed of Tヴust

• Closiﾐg DisIlosuヴe, oヴ Esiﾏated HUD-ヱ “etleﾏeﾐt “tateﾏeﾐt

• The Tヴuth iﾐ Leﾐdiﾐg DisIlosuヴe “tateﾏeﾐt

• The “eヴ┗iIiﾐg DisIlosuヴe aﾐd

• Aﾐ┞ IﾐsuヴaﾐIe DisIlosuヴes.

If ┞ou’ヴe ヴeiﾐaﾐIiﾐg oヴ geiﾐg aﾐ eケuit┞ liﾐe of Iヴedit, ┞ou ha┗e thヴee da┞s to Ihaﾐge ┞ouヴ ﾏiﾐd ateヴ ┞ou sigﾐ the loaﾐ doIuﾏeﾐts. If ┞ou deIide ┞ou doﾐ’t ┘aﾐt the loaﾐ ┘ithiﾐ this ン-da┞ さヴesIissioﾐざ peヴiod, ┞ou ┘ill pヴo┗ide the leﾐdeヴ ┘ith ┘ヴiteﾐ ﾐoiiIaioﾐ. Pヴo┗ide a sigﾐed Iop┞ of the さNoiIe to CaﾐIelざ to ┞ouヴ leﾐdeヴ. You Iaﾐ iﾐd this doIuﾏeﾐt aﾏoﾐg ┞ouヴ Ilosiﾐg papeヴs. If ┞ou do ヴesIiﾐd the loaﾐ, the leﾐdeヴ ﾏust gi┗e ┞ou HaIk aﾐ┞ ﾏoﾐe┞ ┞ou paid out iﾐ the tヴaﾐsaIioﾐ, e┗eﾐ ﾏoﾐe┞ ┞ou paid to otheヴ paヴies. Withiﾐ oﾐe-┘eek of sigﾐiﾐg ┞ouヴ loaﾐ doIuﾏeﾐts, ┞ou should ヴeIei┗e a iﾐal Closiﾐg DisIlosuヴe oヴ HUD-ヱ setleﾏeﾐt stateﾏeﾐt iﾐ the ﾏail. If ┞ou doﾐ’t ヴeIei┗e this iﾐfoヴﾏaioﾐ, IoﾐtaIt ┞ouヴ leﾐdeヴ oヴ esIヴo┘ ageﾐt iﾏﾏediatel┞. This doIuﾏeﾐt is ┞ouヴ oiIial aIIouﾐiﾐg of all ﾏoﾐe┞ paid. Re┗ie┘ this iﾐal stateﾏeﾐt Ilosel┞ aﾐd ﾏake suヴe ﾐothiﾐg has Ihaﾐged.

Closing Costs

Closiﾐg Iosts aヴe all the difeヴeﾐt Ihaヴges that ┞ou’ll He ヴeケuiヴed to pa┞ at oヴ Hefoヴe the Ilosiﾐg. The┞ iﾐIlude Ihaヴges ヴelated to the puヴIhase of ┞ouヴ hoﾏe, aﾐd Ihaヴges ヴelated to geiﾐg a ﾏoヴtgage. Depeﾐdiﾐg oﾐ the speIiiI IiヴIuﾏstaﾐIes of ┞ouヴ paヴiIulaヴ loaﾐ, Ilosiﾐg Iosts t┞piIall┞ ヴuﾐ Het┘eeﾐ thヴee aﾐd i┗e peヴIeﾐt of the loaﾐ aﾏouﾐt.

Chaヴges H┞ the Leﾐdeヴ Ma┞ IﾐIlude:

• AppliIaioﾐ fees

• Poiﾐts aﾐd oヴigiﾐaioﾐ fees

• Chaヴges foヴ appヴaisals aﾐd Iヴedit ヴepoヴts

Chaヴges ColleIted H┞ the Title Coﾏpaﾐ┞ oヴ “etleﾏeﾐt

Ageﾐt IﾐIlude:

• Title iﾐsuヴaﾐIe fees

• Real estate ta┝ oﾐ the ﾏoヴtgage

• Hoﾏeo┘ﾐeヴ’s iﾐsuヴaﾐIe ヴeseヴ┗es

• Chaヴges foヴ iliﾐg doIuﾏeﾐts ┘ith the Iouﾐt┞ Ileヴk

• Aﾐd a setleﾏeﾐt fee foヴ haﾐdliﾐg all the papeヴ┘oヴk to Ilose ┞ouヴ loaﾐ. Iﾐ a puヴIhase, soﾏe of these Iosts

ﾏa┞ He shaヴed ┘ith the selleヴ.

Theヴe ﾏa┞ He otheヴ Ihaヴges foヴ seヴ┗iIes pヴo┗ided H┞ eitheヴ ┞ouヴ leﾐdeヴ oヴ the Ilosiﾐg Ioﾏpaﾐ┞. Youヴ leﾐdeヴ oヴ ﾏoヴtgage Hヴokeヴ Iaﾐ gi┗e ┞ou ﾏoヴe speIiiI iﾐfoヴﾏaioﾐ oﾐ these Iosts. ReﾏeﾏHeヴ, ┘heﾐ ┞ou Hudget foヴ ┞ouヴ puヴIhase, ┞ou should iﾐIlude the pヴepaid aﾐd iﾐaﾐIed Ilosiﾐg Iosts, iﾐ addiioﾐ to the puヴIhase pヴiIe, so that ┞ou Iaﾐ He suヴe that ┞ou Iaﾐ afoヴd the house.

TIP: To deIヴease the aﾏouﾐt of ﾏoﾐe┞ ┞ou’ll ﾐeed to pa┞ at Ilosiﾐg, ask to sIhedule the Ilosiﾐg at the eﾐd of the ﾏoﾐth.

Foヴ e┝aﾏple: If ┞ou Ilose oﾐ Jaﾐuaヴ┞ ンヱst, ┞ouヴ iヴst pa┞ﾏeﾐt ┘ill sill He MaヴIh ヱst, Hut ┞ou’ll oﾐl┞ ﾐeed to pa┞ the iﾐteヴest foヴ that oﾐe da┞ at the iﾏe of Ilosiﾐg. Youヴ iヴst pa┞ﾏeﾐt ┘ill oﾐl┞ He a ﾏoﾐth aﾐd a da┞ a┘a┞, iﾐstead of alﾏost t┘o ﾏoﾐths a┘a┞, Hut ┞ou’ll ﾐeed less ﾏoﾐe┞ at the Ilosiﾐg.

WELCOME HOME

Coﾐgヴatulaioﾐs oﾐ the puヴIhase of ┞ouヴ ﾐe┘ hoﾏe!

No┘ it’s iﾏe to ┘elIoﾏe ┞ouヴ faﾏil┞ aﾐd pヴepaヴe foヴ the house ┘aヴﾏiﾐg paヴt┞.

ProteIiﾐg Your Hoﾏe Iﾐ┗estﾏeﾐt

ヱ. Liﾏit ┞ouヴ use of Ioﾐsuﾏeヴ Iヴedit Iaヴds. A┗oid high Iost puヴIhases. Li┗e ┘ithiﾐ ┞ouヴ ﾏeaﾐs.

ヲ. If ┞ou fall iﾐto deHt, talk to a ﾏoヴtgage Iouﾐseloヴ Hefoヴe ┞ou appl┞ foヴ a loaﾐ. A┗oid addiﾐg Iヴedit Iaヴd deHt to ┞ouヴ ﾏoヴtgage.

ン. Thiﾐk t┘iIe aHout iﾐIludiﾐg a Iaヴ pa┞ﾏeﾐt iﾐ a ﾏoヴtgage ヴeiﾐaﾐIe. Do ┞ou ┘aﾐt to ﾏake pa┞ﾏeﾐts oﾐ ┞ouヴ Iaヴ o┗eヴ ンヰ ┞eaヴs?

ヴ. Coﾐsideヴiﾐg life iﾐsuヴaﾐIe? Talk to a iﾐaﾐIial plaﾐﾐeヴ. “oﾏe Moヴtgage Life IﾐsuヴaﾐIe pヴoduIts pa┞ ┞ouヴ leﾐdeヴ Hut ┞ouヴ lo┗ed oﾐes doﾐ’t ヴeIei┗e a peﾐﾐ┞

ヵ. Thiﾐkiﾐg aHout ヴeiﾐaﾐIiﾐg? Doﾐ’t just look at ┞ouヴ loaﾐ pa┞ﾏeﾐts – look at the life of ┞ouヴ loaﾐ. Foヴ e┝aﾏple, ヴeiﾐaﾐIiﾐg ┘ith aﾐotheヴ ンヰ-┞eaヴ ﾏoヴtgage ﾏa┞ lo┘eヴ ┞ouヴ ﾏoﾐthl┞ pa┞ﾏeﾐt Hut it also ﾏeaﾐs aﾐotheヴ ンヰ ┞eaヴs of pa┞ﾏeﾐts. Peヴhaps a ヱヵ-┞eaヴ loaﾐ ┘ould Hest ﾏeet ┞ouヴ ﾐeeds.

ヶ. No┘ that ┞ou’┗e HeIoﾏe a hoﾏeo┘ﾐeヴ, ┞ou ┘ill He HoﾏHaヴded ┘ith Iヴedit ofeヴs. Choose ┞ouヴ Iヴedit aIIouﾐts ┘isel┞. Al┘a┞s ヴead the iﾐe pヴiﾐt. Theヴe is ﾐo fヴee ﾏoﾐe┞ – just Ile┗eヴ ad┗eヴisiﾐg.

Α. Hoﾏeo┘ﾐeヴ’s iﾐsuヴaﾐIe Iaﾐ Io┗eヴ ﾏoヴe thaﾐ hoﾏe ヴeplaIeﾏeﾐt. Coﾐsult aﾐ iﾐsuヴaﾐIe speIialist aHout Io┗eヴage foヴ ┞ouヴ hoﾏe’s Ioﾐteﾐts, ヴeplaIeﾏeﾐt Iosts, aﾐd liaHilit┞ iﾐsuヴaﾐIe.

Pre┗eﾐiﾐg ForeIlosure

If ┞ou fall Hehiﾐd iﾐ ┞ouヴ ﾏoﾐthl┞ house pa┞ﾏeﾐts, the leﾐdeヴ ﾏa┞ tヴ┞ to take the house HaIk. This is geﾐeヴall┞ Ialled foヴeIlosuヴe. If a house is foヴeIlosed, ┞ou ﾏa┞ lose ﾐot oﾐl┞ ┞ouヴ house, Hut also all of the ﾏoﾐe┞ ┞ou’┗e iﾐ┗ested. A foヴeIlosuヴe oヴ a deiIieﾐI┞ judgﾏeﾐt Iould seヴiousl┞ afeIt ┞ouヴ aHilit┞ to ケualif┞ foヴ Iヴedit iﾐ the futuヴe. A┗oid this if at all possiHle.

Wa┞s That You Caﾐ PREVENT FoヴeIlosuヴe:

• Eaヴl┞ iﾐteヴ┗eﾐioﾐ is the ke┞! If ┞ou’ヴe ha┗iﾐg tヴouHle ﾏakiﾐg ┞ouヴ ﾏoﾐthl┞ ﾏoヴtgage pa┞ﾏeﾐts, IoﾐtaIt ┞ouヴ leﾐdeヴ iﾏﾏediatel┞. Doﾐ’t ┘ait!

• Doﾐ’t igﾐoヴe leteヴs fヴoﾏ ┞ouヴ leﾐdeヴ.

• Cleaヴl┞ e┝plaiﾐ ┞ouヴ situaioﾐ. Wヴite do┘ﾐ ┘ho ┞ou spoke to, the date, aﾐd ┘hat ┘as said.

• Be pヴepaヴed to pヴo┗ide ┞ouヴ leﾐdeヴ ┘ith ┞ouヴ Iuヴヴeﾐt iﾐaﾐIial iﾐfoヴﾏaioﾐ, suIh as ┞ouヴ ﾏoﾐthl┞ iﾐIoﾏe aﾐd e┝peﾐses.

• You Iaﾐ stop the foヴeIlosuヴe H┞ ﾏakiﾐg up aﾐ┞ deliﾐケueﾐt pa┞ﾏeﾐts plus aﾐ┞ Iosts ヴelated to the foヴeIlosuヴe.

• ReﾏeﾏHeヴ to use ヴegisteヴed oヴ Ieヴiied ﾏail iﾐ all ┞ouヴ IoヴヴespoﾐdeﾐIe oﾐ legal ﾏateヴs.

What Aヴe Youヴ Alteヴﾐai┗es?

• “peIial FoヴHeaヴaﾐIe. Youヴ leﾐdeヴ ﾏa┞ He aHle to aヴヴaﾐge a ヴepa┞ﾏeﾐt plaﾐ that ┘ould He Hased upoﾐ ┞ouヴ Iuヴヴeﾐt iﾐaﾐIial situaioﾐ aﾐd ﾏa┞ e┗eﾐ pヴo┗ide foヴ a teﾏpoヴaヴ┞ ヴeduIioﾐ oヴ suspeﾐsioﾐ of ┞ouヴ pa┞ﾏeﾐts. You ﾏa┞ ケualif┞ foヴ this if ┞ou’┗e ヴeIeﾐtl┞ e┝peヴieﾐIed aﾐ iﾐ┗oluﾐtaヴ┞ ヴeduIioﾐ iﾐ iﾐIoﾏe oヴ aﾐ iﾐIヴease iﾐ li┗iﾐg e┝peﾐses.

• Moヴtgage ModiiIaioﾐ. You ﾏa┞ He aHle to ヴeiﾐaﾐIe the deHt aﾐd e┝teﾐd the teヴﾏ of ┞ouヴ ﾏoヴtgage loaﾐ. This ┘ill help ┞ou IatIh up H┞ possiHl┞ ヴeduIiﾐg the ﾏoﾐthl┞ pa┞ﾏeﾐts to a ﾏoヴe afoヴdaHle le┗el. You ﾏa┞ ケualif┞ if ┞ou’┗e ヴeIo┗eヴed fヴoﾏ a iﾐaﾐIial pヴoHleﾏ Hut ┞ouヴ ﾐet iﾐIoﾏe is less thaﾐ it ┘as Hefoヴe the default.

• Paヴial Claiﾏ. Youヴ leﾐdeヴ ﾏa┞ He aHle to ┘oヴk ┘ith ┞ou to oHtaiﾐ aﾐ iﾐteヴest-fヴee FHA loaﾐ fヴoﾏ HUD to Hヴiﾐg ┞ouヴ ﾏoヴtgage Iuヴヴeﾐt, if ┞ou ケualif┞.

• Pヴe-FoヴeIlosuヴe “ale. This ┘ill allo┘ ┞ou to sell ┞ouヴ pヴopeヴt┞ aﾐd pa┞ of ┞ouヴ ﾏoヴtgage loaﾐ to a┗oid foヴeIlosuヴe aﾐd daﾏage to ┞ouヴ Iヴedit ヴaiﾐg. If ┞ou’ヴe uﾐaHle to afoヴd the house loﾐg-teヴﾏ, ┞ou ﾏa┞ sell the house ┞ouヴself Hefoヴe the foヴeIlosuヴe sale aﾐd sa┗e soﾏe of ┞ouヴ eケuit┞.

• “hoヴt “ale. A sale iﾐ ┘hiIh the leﾐdeヴ agヴees to aIIept a sale pヴiIe less thaﾐ the outstaﾐdiﾐg HalaﾐIe of the loaﾐ.

• Deed-iﾐ-lieu of FoヴeIlosuヴe. As a last ヴesoヴt, ┞ou ﾏa┞ He aHle to ┗oluﾐtaヴil┞ さgi┗e HaIkざ ┞ouヴ pヴopeヴt┞ to the leﾐdeヴ. This ┘oﾐ’t sa┗e ┞ouヴ house, Hut ﾏa┞ help ┞ouヴ IhaﾐIes of geiﾐg aﾐotheヴ ﾏoヴtgage loaﾐ iﾐ the futuヴe.

TIP: If ┞ou’ヴe a seﾐioヴ Iiizeﾐ oヴ aヴe disaHled aﾐd aヴe faIiﾐg a foヴeIlosuヴe aIioﾐ HeIause of uﾐpaid pヴopeヴt┞ ta┝es oヴ speIial assessﾏeﾐts, ┞ou ﾏa┞ He eligiHle to postpoﾐe pa┞ﾏeﾐt of ┞ouヴ pヴopeヴt┞ ta┝es oヴ speIial assessﾏeﾐts uﾐdeヴ t┘o pヴogヴaﾏs iﾐ Washiﾐgtoﾐ. CoﾐtaIt ┞ouヴ loIal Couﾐt┞ Assessoヴ’s OiIe oヴ aﾐ atoヴﾐe┞ foヴ ﾏoヴe iﾐfoヴﾏaioﾐ.

TIP: Leﾐdeヴs doﾐ’t ha┗e to aIIept all pヴoposals aﾐd aヴe ﾐot oHligated to do so. “o doﾐ’t ┘ait ill the last ﾏiﾐute to IoﾐtaIt ┞ouヴ leﾐdeヴ.

TIP: If the leﾐdeヴ ヴefuses to take paヴial pa┞ﾏeﾐts, ┞ou should put this ﾏoﾐe┞ aside to help ﾐegoiate ┘ith the leﾐdeヴ lateヴ.

TIP: The foヴeIlosuヴe pヴoIess ﾏa┞ Ioﾐiﾐue despite the possiHilit┞ of a ┘oヴkout agヴeeﾏeﾐt. Theヴefoヴe, ┞ou should ﾐot ┘ait to heaヴ HaIk fヴoﾏ the leﾐdeヴ. You should IoﾐtaIt the leﾐdeヴ eaヴl┞ aﾐd tヴ┞ aﾐd Ioﾏe up ┘ith a soluioﾐ as sooﾐ as possiHle.

Ho┘ Do You Kﾐo┘ If You Qualif┞ Foヴ Aﾐ┞ Of These Alteヴﾐai┗es?

CoﾐtaIt ┞ouヴ loIal housiﾐg Iouﾐseliﾐg ageﾐI┞ foヴ help iﾐ deteヴﾏiﾐiﾐg ┘hiIh, if aﾐ┞, of these opioﾐs ﾏa┞ ﾏeet ┞ouヴ ﾐeeds. You should also disIuss the situaioﾐ ┘ith ┞ouヴ leﾐdeヴ.

“hould You Be A┘aヴe Of Aﾐ┞thiﾐg Else? Be┘aヴe of sIaﾏs! “oluioﾐs that souﾐd too siﾏple oヴ too good to He tヴue usuall┞ aヴe. If ┞ou’ヴe selliﾐg ┞ouヴ hoﾏe ┘ithout pヴofessioﾐal guidaﾐIe, He┘aヴe of Hu┞eヴs ┘ho tヴ┞ to ヴush ┞ou thヴough the pヴoIess. Uﾐfoヴtuﾐatel┞, theヴe aヴe people ┘ho ﾏa┞ tヴ┞ to take ad┗aﾐtage of ┞ouヴ iﾐaﾐIial diiIult┞. Be espeIiall┞ aleヴt to the follo┘iﾐg: • Eケuit┞ skiﾏﾏiﾐg. This t┞pe of sIaﾏ iﾐ┗ol┗es a さHu┞eヴざ appヴoaIhiﾐg ┞ou aﾐd ofeヴiﾐg to pa┞ of ┞ouヴ ﾏoヴtgage oヴ gi┗e ┞ou a suﾏ of ﾏoﾐe┞ ┘heﾐ the pヴopeヴt┞ is sold. The さHu┞eヴざ ﾏa┞ suggest that ┞ou ﾏo┗e out ケuiIkl┞ aﾐd deed the pヴopeヴt┞ to hiﾏ oヴ heヴ. The さHu┞eヴざ theﾐ IolleIts ヴeﾐt foヴ a iﾏe, doesﾐ’t ﾏake aﾐ┞ ﾏoヴtgage pa┞ﾏeﾐts, aﾐd allo┘s the leﾐdeヴ to foヴeIlose. ReﾏeﾏHeヴ that sigﾐiﾐg o┗eヴ ┞ouヴ deed to soﾏeoﾐe else doesﾐ’t ﾐeIessaヴil┞ ヴelie┗e ┞ou of ┞ouヴ oHligaioﾐ oﾐ ┞ouヴ loaﾐ.

• Phoﾐ┞ Couﾐseliﾐg AgeﾐIies. “oﾏe gヴoups Ialliﾐg theﾏsel┗es さIouﾐseliﾐg ageﾐIiesざ ﾏa┞ appヴoaIh ┞ou aﾐd ofeヴ to peヴfoヴﾏ Ieヴtaiﾐ seヴ┗iIes foヴ a fee. These Iould ┘ell He seヴ┗iIes ┞ou Iould do foヴ ┞ouヴself, foヴ fヴee, suIh as ﾐegoiaiﾐg a ﾐe┘ pa┞ﾏeﾐt plaﾐ ┘ith ┞ouヴ leﾐdeヴ, oヴ puヴsuiﾐg a pヴe-foヴeIlosuヴe sale. If ┞ou ha┗e aﾐ┞ douHt aHout pa┞iﾐg foヴ suIh seヴ┗iIes, Iall a HUD-appヴo┗ed housiﾐg Iouﾐseliﾐg ageﾐI┞. Do this BEFORE ┞ou pa┞ aﾐ┞oﾐe oヴ sigﾐ aﾐ┞thiﾐg.

PreIauioﾐs You Caﾐ Take Take PヴeIauioﾐs to A┗oid Beiﾐg さTakeﾐざ B┞ a “Iaﾏ Aヴist:

• Doﾐ’t sigﾐ aﾐ┞ papeヴs ┞ou doﾐ’t full┞ uﾐdeヴstaﾐd.

• Make suヴe ┞ou get all the さpヴoﾏisesざ iﾐ ┘ヴiiﾐg.

• “igﾐiﾐg o┗eヴ the deed to soﾏeoﾐe else doesﾐ’t ﾐeIessaヴil┞ ヴelie┗e ┞ou of ┞ouヴ loaﾐ oHligaioﾐ. If ┞ouヴ ﾐaﾏe is sill iﾐIluded oﾐ the doIuﾏeﾐts, ┞ou’ヴe sill liaHle foヴ ヴepa┞iﾐg the loaﾐ.

• CheIk ┘ith ┞ouヴ la┘┞eヴ oヴ ┞ouヴ leﾐdeヴ Hefoヴe eﾐteヴiﾐg iﾐto aﾐ┞ deal iﾐ┗ol┗iﾐg ┞ouヴ hoﾏe.

• CheIk to see if theヴe aヴe aﾐ┞ Ioﾏplaiﾐts agaiﾐst the pヴospeIi┗e Hu┞eヴ if ┞ou’ヴe selliﾐg ┞ouヴ house. You Iaﾐ IoﾐtaIt Washiﾐgtoﾐ “tate’s Atoヴﾐe┞ Geﾐeヴal’s OiIe oヴ the Real Estate Coﾏﾏissioﾐ foヴ this t┞pe of iﾐfoヴﾏaioﾐ.

Poiﾐts

You “hould ReﾏeﾏHer

• If ┞ou get Hehiﾐd oﾐ ┞ouヴ pa┞ﾏeﾐts, Iall oヴ ┘ヴite ┞ouヴ ﾏoヴtgage leﾐdeヴ iﾏﾏediatel┞.

• “ta┞ iﾐ ┞ouヴ hoﾏe to ﾏake suヴe ┞ou ケualif┞ foヴ assistaﾐIe.

• Aヴヴaﾐge aﾐ appoiﾐtﾏeﾐt ┘ith a housiﾐg Iouﾐseloヴ to e┝ploヴe ┞ouヴ opioﾐs.

• Coopeヴate ┘ith the Iouﾐseloヴ oヴ leﾐdeヴ tヴ┞iﾐg to help ┞ou.

• E┝ploヴe e┗eヴ┞ alteヴﾐai┗e to losiﾐg ┞ouヴ hoﾏe.

• Be┘aヴe of sIaﾏs.

“ECURING A LINE OF CREDIT AFTER PURCHA“E

Heヴe is a heads up oﾐ ┘hat Iaﾐ He doﾐe ateヴ the puヴIhase of ┞ouヴ hoﾏe ヴelai┗e to iﾐaﾐIiﾐg, ヴeiﾐaﾐIiﾐg, oヴ oHtaiﾐiﾐg aﾐ eケuit┞ liﾐe of Iヴedit. It’s iﾏpoヴtaﾐt foヴ ┞ou to uﾐdeヴstaﾐd that ┞ouヴ hoﾏe iﾐ┗estﾏeﾐt Iaﾐ Heaヴ ┞ou fヴuits foヴ a futuヴe e┝paﾐsioﾐ, ヴeﾏodel, a Ioﾐsolidaioﾐ loaﾐ oヴ loﾐg a┘aited ┗aIaioﾐ. Let’s see ho┘ it ┘oヴks:

Is A Hoﾏe Eケuit┞ Cヴedit Liﾐe foヴ You?

If ┞ou ﾐeed to Hoヴヴo┘ ﾏoﾐe┞, hoﾏe eケuit┞ liﾐes ﾏa┞ He oﾐe useful souヴIe of Iヴedit. Iﾐiiall┞, the┞ ﾏa┞ pヴo┗ide ┞ou ┘ith laヴge aﾏouﾐts of Iash at ヴelai┗el┞ lo┘ iﾐteヴest ヴates Aﾐd the┞ ﾏa┞ pヴo┗ide ┞ou ┘ith Ieヴtaiﾐ ta┝ ad┗aﾐtages uﾐa┗ailaHle ┘ith otheヴ kiﾐds of loaﾐs.

At the saﾏe iﾏe, hoﾏe eケuit┞ liﾐes of Iヴedit ヴeケuiヴe ┞ou to use ┞ouヴ hoﾏe as Iollateヴal foヴ the loaﾐ. This ﾏa┞ put ┞ouヴ hoﾏe at ヴisk if ┞ou’ヴe late oヴ Iaﾐﾐot ﾏake ┞ouヴ ﾏoﾐthl┞ pa┞ﾏeﾐts. Those loaﾐs ﾏa┞ put ┞ouヴ hoﾏe iﾐ jeopaヴd┞ if ┞ou Iaﾐ’t ケualif┞ foヴ ヴeiﾐaﾐIiﾐg. Aﾐd, if ┞ou sell ┞ouヴ hoﾏe, ﾏost plaﾐs ヴeケuiヴe ┞ou to pa┞ of ┞ouヴ Iヴedit liﾐe at that iﾏe. Iﾐ addiioﾐ, HeIause hoﾏe eケuit┞ loaﾐs gi┗e ┞ou ヴelai┗el┞ eas┞ aIIess to Iash, ┞ou ﾏight iﾐd ┞ou Hoヴヴo┘ ﾏoﾐe┞ too fヴeel┞. • Ho┘ ﾏuIh ﾏoﾐe┞ Iaﾐ ┞ou Hoヴヴo┘ oﾐ a hoﾏe eケuit┞ liﾐe of Iヴedit ふHELOCぶ? Depeﾐdiﾐg oﾐ ┞ouヴ Iヴedit┘oヴthiﾐess aﾐd the aﾏouﾐt of ┞ouヴ outstaﾐdiﾐg deHt, hoﾏe eケuit┞ leﾐdeヴs ﾏa┞ let ┞ou Hoヴヴo┘ up to ヱヰヰ peヴIeﾐt of the appヴaised ┗alue of ┞ouヴ hoﾏe ﾏiﾐus the aﾏouﾐt ┞ou sill o┘e oﾐ ┞ouヴ iヴst ﾏoヴtgage. Ask the leﾐdeヴ aHout the leﾐgth of the hoﾏe eケuit┞ loaﾐ, ┘hetheヴ theヴe is a ﾏiﾐiﾏuﾏ ┘ithdヴa┘al ヴeケuiヴeﾏeﾐt ┘heﾐ ┞ou opeﾐ ┞ouヴ aIIouﾐt, aﾐd ┘hetheヴ theヴe aヴe ﾏiﾐiﾏuﾏ oヴ ﾏa┝iﾏuﾏ ┘ithdヴa┘al ヴeケuiヴeﾏeﾐts ateヴ ┞ouヴ aIIouﾐt is opeﾐed. Iﾐケuiヴe ho┘ ┞ou Iaﾐ gaiﾐ aIIess to ┞ouヴ Iヴedit liﾐe – ┘ith IheIks, Iヴedit Iaヴds, oヴ Hoth. Also, iﾐd out if ┞ouヴ hoﾏe eケuit┞ plaﾐ sets a i┝ed iﾏe – a dヴa┘ peヴiod – ┘heﾐ ┞ou Iaﾐ ﾏake ┘ithdヴa┘als fヴoﾏ ┞ouヴ aIIouﾐt. OﾐIe the dヴa┘ peヴiod e┝piヴes, ┞ou ﾏa┞ He aHle to ヴeﾐe┘ ┞ouヴ Iヴedit liﾐe. If ┞ou Iaﾐ’t, ┞ou ┘oﾐ’t He peヴﾏited to Hoヴヴo┘ addiioﾐal fuﾐds. Also, iﾐ soﾏe plaﾐs, ┞ou ﾏa┞ ha┗e to pa┞ ┞ouヴ full outstaﾐdiﾐg HalaﾐIe. Iﾐ otheヴs, ┞ou ﾏa┞ He aHle to ヴepa┞ the HalaﾐIe o┗eヴ a i┝ed iﾏe.

• What safeguaヴds aヴe Huilt iﾐto the loaﾐ? Oﾐe of the Hest pヴoteIioﾐs ┞ou ha┗e is the Fedeヴal Tヴuth iﾐ Leﾐdiﾐg AIt disIussed eaヴlieヴ, ┘hiIh ヴeケuiヴes leﾐdeヴs to iﾐfoヴﾏ ┞ou aHout the teヴﾏs aﾐd Iosts of the plaﾐ at the iﾏe ┞ou’ヴe gi┗eﾐ aﾐ appliIaioﾐ. Leﾐdeヴs ﾏust disIlose the APR aﾐd pa┞ﾏeﾐt teヴﾏs aﾐd ﾏust iﾐfoヴﾏ ┞ou of Ihaヴges to opeﾐ oヴ use the aIIouﾐt, suIh as aﾐ appヴaisal, a Iヴedit ヴepoヴt, oヴ atoヴﾐe┞s’ fees. Leﾐdeヴs also ﾏust tell ┞ou aHout aﾐ┞ ┗aヴiaHle ヴate featuヴe aﾐd gi┗e ┞ou a HヴoIhuヴe desIヴiHiﾐg the geﾐeヴal featuヴes of hoﾏe eケuit┞ plaﾐs.

The Tヴuth iﾐ Leﾐdiﾐg AIt also pヴoteIts ┞ou fヴoﾏ Ihaﾐges iﾐ the teヴﾏs of the aIIouﾐt Hefoヴe the plaﾐ is opeﾐed. BeIause ┞ouヴ hoﾏe is at ヴisk ┘heﾐ ┞ou opeﾐ a hoﾏe eケuit┞ Iヴedit aIIouﾐt, ┞ou ha┗e thヴee da┞s ateヴ ┞ou ヴeIei┗e the Ilosiﾐg papeヴs to IaﾐIel the tヴaﾐsaIioﾐ, foヴ aﾐ┞ ヴeasoﾐ. To IaﾐIel, ┞ou ﾏust iﾐfoヴﾏ the leﾐdeヴ iﾐ ┘ヴiiﾐg. Upoﾐ iﾏel┞ IaﾐIellaioﾐ, ┞ouヴ Iヴedit liﾐe ﾏust He IaﾐIelled aﾐd all fees ┞ou’┗e paid ﾏust He ヴetuヴﾐed. Quesioﾐs to Ask Befoヴe You “igﾐ the Doted Liﾐe:

• What is the iﾐteヴest ヴate oﾐ the HELOC?

• What is the iﾐde┝ aﾐd ﾏaヴgiﾐ that afeIt the iﾐteヴest ヴate?

• What aヴe the up fヴoﾐt Ilosiﾐg Iosts?

• Is theヴe aﾐ aﾐﾐual fee?

• What aヴe the ヴepa┞ﾏeﾐt teヴﾏs duヴiﾐg the loaﾐ? Hoﾏe Iﾏpro┗eﾏeﾐt Loaﾐ Uﾐdeヴstaﾐdiﾐg Youヴ Pa┞ﾏeﾐt Opioﾐs

You ha┗e se┗eヴal pa┞ﾏeﾐt opioﾐs foヴ ﾏost hoﾏe iﾏpヴo┗eﾏeﾐt aﾐd ﾏaiﾐteﾐaﾐIe aﾐd ヴepaiヴ pヴojeIts. Foヴ e┝aﾏple, ┞ou Iaﾐ get ┞ouヴ o┘ﾐ loaﾐ oヴ ask the IoﾐtヴaItoヴ to aヴヴaﾐge iﾐaﾐIiﾐg foヴ laヴgeヴ pヴojeIts. Foヴ sﾏalleヴ pヴojeIts, ┞ou ﾏa┞ ┘aﾐt to pa┞ H┞ IheIk oヴ Iヴedit Iaヴd. A┗oid pa┞iﾐg Iash. Whate┗eヴ opioﾐ ┞ou Ihoose, He suヴe ┞ou ha┗e a ヴeasoﾐaHle pa┞ﾏeﾐt sIhedule aﾐd a faiヴ iﾐteヴest ヴate. Heヴe aヴe soﾏe addiioﾐal ips:

• Tヴ┞ to liﾏit ┞ouヴ do┘ﾐ pa┞ﾏeﾐt. “oﾏe state la┘s liﾏit the aﾏouﾐt of ﾏoﾐe┞ a IoﾐtヴaItoヴ Iaﾐ ヴeケuest as a do┘ﾐ pa┞ﾏeﾐt.

• Tヴ┞ to ﾏake pa┞ﾏeﾐts duヴiﾐg the pヴojeIt Ioﾐiﾐgeﾐt upoﾐ saisfaItoヴ┞ Ioﾏpleioﾐ of a deiﾐed aﾏouﾐt of ┘oヴk. This ┘a┞, if the ┘oヴk is ﾐot pヴoIeediﾐg aIIoヴdiﾐg to sIhedule, the pa┞ﾏeﾐt is also dela┞ed.

• Lieﾐ la┘s ﾏa┞ allo┘ suHIoﾐtヴaItoヴs oヴ supplieヴs to ile a ﾏeIhaﾐiI’s lieﾐ agaiﾐst ┞ouヴ hoﾏe to saisf┞ theiヴ uﾐpaid Hills. Doﾐ’t ﾏake the iﾐal pa┞ﾏeﾐt oヴ sigﾐ aﾐ aida┗it of iﾐal ヴelease uﾐil ┞ou’ヴe saisied ┘ith the ┘oヴk aﾐd kﾐo┘ that the suHIoﾐtヴaItoヴs aﾐd supplieヴs ha┗e Heeﾐ paid.

• “oﾏe state oヴ loIal la┘s liﾏit the aﾏouﾐt H┞ ┘hiIh the iﾐal Hill Iaﾐ e┝Ieed the esiﾏate, uﾐless ┞ou’┗e appヴo┗ed the iﾐIヴease.

• If ┞ou ha┗e a pヴoHleﾏ ┘ith ﾏeヴIhaﾐdise oヴ seヴ┗iIes that ┞ou Ihaヴged to a Iヴedit Iaヴd, aﾐd ┞ou’┗e ﾏade a good faith efoヴt to ┘oヴk out the pヴoHleﾏ ┘ith the selleヴ, ┞ou ha┗e the ヴight to ┘ithhold pa┞ﾏeﾐt foヴ the ﾏeヴIhaﾐdise oヴ seヴ┗iIes. CoﾐtaIt ┞ouヴ Iaヴd issueヴ foヴ details oﾐ ho┘ this seヴ┗iIe is adﾏiﾐisteヴed. You ﾏa┞ He aHle to ┘ithhold pa┞ﾏeﾐt up to the aﾏouﾐt of Iヴedit outstaﾐdiﾐg foヴ the puヴIhase, plus aﾐ┞ iﾐaﾐIe oヴ ヴelated Ihaヴges.

The さHoﾏe Iﾏpro┗eﾏeﾐtざ Loaﾐ “Iaﾏ

A IoﾐtヴaItoヴ Ialls oヴ kﾐoIks oﾐ ┞ouヴ dooヴ aﾐd ofeヴs to iﾐstall a ﾐe┘ ヴoof oヴ ヴeﾏodel ┞ouヴ kitIheﾐ at a pヴiIe that souﾐds ヴeasoﾐaHle. You tell hiﾏ ┞ou’ヴe iﾐteヴested, Hut Iaﾐ’t afoヴd it. He tells ┞ou it’s ﾐo pヴoHleﾏ — he Iaﾐ aヴヴaﾐge iﾐaﾐIiﾐg thヴough a leﾐdeヴ he kﾐo┘s. You agヴee to the pヴojeIt, aﾐd the IoﾐtヴaItoヴ Hegiﾐs ┘oヴk. At soﾏe poiﾐt ateヴ the IoﾐtヴaItoヴ Hegiﾐs, ┞ou’ヴe asked to sigﾐ a lot of papeヴs. The papeヴs ﾏa┞ He Hlaﾐk oヴ the leﾐdeヴ ﾏa┞ ヴush ┞ou to sigﾐ Hefoヴe ┞ou ha┗e had iﾏe to ヴead ┘hat ┞ou ha┗e Heeﾐ gi┗eﾐ to sigﾐ. You sigﾐ the papeヴs. Lateヴ, ┞ou ヴealize that the papeヴs ┞ou sigﾐed aヴe a hoﾏe eケuit┞ loaﾐ. The iﾐteヴest ヴate, poiﾐts aﾐd fees seeﾏ ┗eヴ┞ high. To ﾏake ﾏateヴs ┘oヴse, the ┘oヴk oﾐ ┞ouヴ hoﾏe isﾐ’t doﾐe ヴight oヴ hasﾐ’t Heeﾐ Ioﾏpleted, aﾐd the IoﾐtヴaItoヴ, ┘ho ﾏa┞ ha┗e Heeﾐ paid H┞ the leﾐdeヴ, has litle iﾐteヴest iﾐ Ioﾏpleiﾐg the ┘oヴk to ┞ouヴ saisfaIioﾐ. You Iaﾐ pヴoteIt ┞ouヴself fヴoﾏ iﾐappヴopヴiate leﾐdiﾐg pヴaIiIes. Heヴe’s ho┘.

Doﾐ’t:

• Agヴee to a hoﾏe eケuit┞ loaﾐ if ┞ou doﾐ’t ha┗e eﾐough ﾏoﾐe┞ to ﾏake the ﾏoﾐthl┞ pa┞ﾏeﾐts.

• “igﾐ aﾐ┞ doIuﾏeﾐt ┞ou ha┗eﾐ’t ヴead oヴ aﾐ┞ doIuﾏeﾐt that has Hlaﾐk spaIes to He illed iﾐ ateヴ ┞ou sigﾐ.

• Deed ┞ouヴ pヴopeヴt┞ to aﾐ┞oﾐe. Fiヴst Ioﾐsult aﾐ atoヴﾐe┞, a kﾐo┘ledgeaHle faﾏil┞ ﾏeﾏHeヴ, oヴ soﾏeoﾐe else that ┞ou tヴust.

• Agヴee to iﾐaﾐIe thヴough ┞ouヴ IoﾐtヴaItoヴ ┘ithout shoppiﾐg aヴouﾐd aﾐd Ioﾏpaヴiﾐg loaﾐ teヴﾏs.

Geiﾐg a Writeﾐ CoﾐtraIt

A IoﾐtヴaIt spells out the さ┘ho, ┘hat, ┘heヴe, ┘heﾐざ aﾐd Iost of ┞ouヴ pヴojeIt. The agヴeeﾏeﾐt should He Ileaヴ, IoﾐIise aﾐd Ioﾏplete.

Befoヴe You “igﾐ a CoﾐtヴaIt, Make “uヴe it Coﾐtaiﾐs:

• The IoﾐtヴaItoヴ’s ﾐaﾏe, addヴess, phoﾐe, aﾐd liIeﾐse ﾐuﾏHeヴ.

• The pa┞ﾏeﾐt sIhedule foヴ the IoﾐtヴaItoヴ, suHIoﾐtヴaItoヴs aﾐd supplieヴs.

• Aﾐ esiﾏated staヴt aﾐd Ioﾏpleioﾐ date.

• The IoﾐtヴaItoヴ’s oHligaioﾐ to oHtaiﾐ all ﾐeIessaヴ┞ peヴﾏits.

• Ho┘ Ihaﾐge oヴdeヴs ┘ill He haﾐdled. A Ihaﾐge oヴdeヴ – Ioﾏﾏoﾐ oﾐ ﾏost ヴeﾏodeliﾐg joHs – is a ┘ヴiteﾐ authoヴizaioﾐ to the IoﾐtヴaItoヴ to ﾏake a Ihaﾐge oヴ addiioﾐ to the ┘oヴk desIヴiHed iﾐ the oヴigiﾐal IoﾐtヴaIt. It Iould afeIt the pヴojeIt’s Iost aﾐd sIhedule. A ヴeﾏodel oteﾐ ヴeケuiヴes pa┞ﾏeﾐt foヴ Ihaﾐge oヴdeヴs Hefoヴe ┘oヴk Hegiﾐs.

• A detailed list of all ﾏateヴials iﾐIludiﾐg Ioloヴ, ﾏodel, size, Hヴaﾐd ﾐaﾏe, aﾐd pヴoduIt.

• Waヴヴaﾐies Io┗eヴiﾐg ﾏateヴials aﾐd ┘oヴkﾏaﾐship. The ﾐaﾏes aﾐd addヴesses of the paヴies hoﾐoヴiﾐg the ┘aヴヴaﾐies – IoﾐtヴaItoヴ, distヴiHutoヴ oヴ ﾏaﾐufaItuヴeヴ – ﾏust He ideﾐiied. The leﾐgth of the ┘aヴヴaﾐt┞ peヴiod aﾐd aﾐ┞ liﾏitaioﾐs also should He spelled out.

• What the IoﾐtヴaItoヴ ┘ill aﾐd ┘ill ﾐot do. Foヴ e┝aﾏple, is site Ileaﾐ up aﾐd tヴash hauliﾐg iﾐIluded iﾐ the pヴiIe? Ask foヴ a さHヴooﾏ Ilause.ざ It ﾏakes the IoﾐtヴaItoヴ ヴespoﾐsiHle foヴ all Ileaﾐ-up ┘oヴk, iﾐIludiﾐg spills aﾐd staiﾐs.

• Oヴal pヴoﾏises also should He added to the ┘ヴiteﾐ IoﾐtヴaIt.

• A ┘ヴiteﾐ stateﾏeﾐt of ┞ouヴ ヴight to IaﾐIel the IoﾐtヴaIt ┘ithiﾐ thヴee Husiﾐess da┞s if ┞ou sigﾐed it iﾐ ┞ouヴ hoﾏe oヴ at a loIaioﾐ otheヴ thaﾐ the selleヴ’s peヴﾏaﾐeﾐt plaIe of Husiﾐess. Duヴiﾐg the sales tヴaﾐsaIioﾐ, the salespeヴsoﾐ ふIoﾐtヴaItoヴぶ ﾏust gi┗e ┞ou t┘o Iopies of a IaﾐIellaioﾐ foヴﾏ ふoﾐe to keep aﾐd oﾐe to seﾐd HaIk to the Ioﾏpaﾐ┞ぶ aﾐd a Iop┞ of ┞ouヴ IoﾐtヴaIt oヴ ヴeIeipt. The IoﾐtヴaIt oヴ ヴeIeipt ﾏust He dated, sho┘ the ﾐaﾏe aﾐd addヴess of the selleヴ, aﾐd e┝plaiﾐ ┞ouヴ ヴight to IaﾐIel.

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Know before you close.

Your CFPB readiness partner - every step of the way.

As a seller

You’re protected while your home is on the market. Mechanical system failures are covered during the listing period for up to one year – you simply pay a low deductible.

You have a marketing edge. An HSA Home Warranty can help sell your home faster and closer to your asking price. The warranty enhances your home’s value to prospective buyers and helps secure the best possible price for your home.

You’re helping prevent post-sale disputes. If an unexpected failure occurs in your home after the sale, the buyer turns to HSAfor the resolution instead of you.

Whether you’re selling or buying, you’re covered with an HSAHome Warranty.

As a buyer

You’re prepared for the unexpected. The cost of repairing or replacing appliances and systems in your home can be budget-breaking, especially when you’ve just purchased a new home. You know they can’t last forever, so you need to plan ahead.

You save yourself time and keep it simple. An HSAHome Warranty provides the convenience of one source for most repair needs. Prompt, reliable service is available 24 hours a day, 7 days a week.

You’re protected year after year. An HSAHome Warranty is renewable annually, so you’re always prepared for the unexpected.

Most homes experience at least two mechanical failures each year. Without HSA Home Warranty protection, typical repair/replacement costs* would be:

ItemRepairReplacement

Heating system$95 - $600$1,325 - $3,700

Central air$200 - $1,100$1,475 - $4,200

Water heater$85 - $210$420 - $705

Plumbing$100 - $1,200$480 - $2,225

Refrigerator$80 - $515$525 - $2,100

Oven/Range$80 - $310$415 - $1,600

above. Costs may vary in your geographic area.

Quality service is our top priority.

Whether you’re working with one of the HSAcustomer service representatives over the phone, or relying on a service contractor to make a repair in your home, HSA ensures prompt, convenient and reliable service.

When a problem arises in your home, you simply make one call to HSA. Service representatives are available 24 hours a day, 7 days a week to help you.

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Vendor Network that arrive promptly and invoice HSAdirectly for covered repairs. If an HSAauthorized service provider cannot respond in a timely manner, HSAwill approve the use of a contractor outside of its network to ensure the convenience of fast service.

The HSA Home Warranty is a contractual guarantee that should certain appliances or mechanical systems fail due to normal wear and tear during the coverage period, those items will be repaired or replaced, subject to a small deductible.

COVERAGESELLERBUYER

Central heat, central air and heat pump

UNDERSTANDING YOUR HSA HOME WARRANTY

With HSA Home Warranty you get extensive coverage on your mechanical systems and appliances; however, not all services and failures are covered. HSA wants to help you understand the coverage so you see the value in having the HSA Home Warranty. For a complete understanding of your HSA Home Warranty, read the Sample Contract portion of this brochure.

Some of the following services:

...may not be covered:

Normal maintenance/cleaning

Drain line stoppages due to tree roots

Coolant evacuation and recovery

...may not qualify for repair:

Improper maintenance

Improper installation

Code violations

...may incur additional cost: Disposal of the replaced item

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Code violations

Permit fees

Coolant evacuation and recovery

Coverage is available on some of the above items for additional premium. Please read the sample contract and application for options that will save you even more money.

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Toilet tank and bowl (builder’s standard); wax ring seals

Plumbing parts and faucets

Polybutylene leaks

Water, gas, drain and waste lines

Routing of drain line stoppages

Water heater, instant hot water dispenser and sump pump

Whirlpool bathtub

Electrical system

Attic fans, exhaust fans and ceiling fans

Garage door opener

Home freezer

Trash compactor, dishwasher & garbage disposal

Oven, stove top/range & built-in microwave oven

Water well pump, septic system and water softener

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Refrigerator and clothes washer and dryer

Roof leaks

BUYER OPTIONS

Electronic air cleaner $40

Hot tub $150

Swimming pool $150

Pool/hot tub combination (must share common mechanicals)$175

BUYER 5 STAR UPGRADE $50

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Central air: freon recovery and non-ducted window or wall air conditioner

Water heater sediment & toilets replaced with like quality

Smoke alarms

Garage door opener: hinges, springs, keypad and remote transmitter

Refrigerator: freon recovery and ice maker/beverage dispenser

Trash compactor lock/key assembly & bucket

Dishwasher racks, baskets & rollers

Built-in microwave interior lining, door glass, clock and shelves

Oven/range interior lining, clocks, rotisseries, racks, handles, knobs and dials

BUYER 7 STAR UPGRADE

Filing a Claim

40"JUC"yknn"rtqxkfg"c"swcnkÝgf."rtguetggpgf"eqpvtcevqt"yjq"yknn"cttkxg"rtqorvn{"cpf"kpxqkeg"JUC"fktgevn{"hqt"eqxgtgf"tgrcktu0,"Kh"JUCÓu"cwvjqtk¦gf service provider cannot respond in a timely manner, HSAwill approve the use of a contractor outside of its network to ensure the convenience of fast service. It’s guaranteed.

3. Contractor must call HSAfor approval before initiating the repair. Homeowner is required to pay the service contractor for all charges incurred in the event that no “Operational Failure” is discovered.

* If the approved failure was serviced by an HSAservice provider, that provider will bill us directly. The contract holder will be responsible for the deductible and any charges not covered by the HSAHome Warranty. If the approved failure was serviced by a contractor outside of the HSAnetwork and that provider is not willing to bill us directly, simply fax the paid invoice to HSA(fax 877-638-1741), and HSAwill reimburse the contract holder.

HSA Home Warranty / 1861 Ludden Dr., Cross Plains, WI 53528 / 800-367-1448 / fax 877-638-1741 /

Sample Contract

PLEASE READ THIS DOCUMENT CAREFULLY. YOU MUST NOTIFY HOME SECURITY OF AMERICA, INC. (HSA) PRIOR TO ACTUAL COMMENCEMENT OF REPAIR OR REPLACEMENT.

TO REPORT ALL CLAIMS: CALL HSA AT 1-800-367-1448. FAX SERVICE INVOICES TO 1-877-638-1741.

The aggregate coverage under this agreement is limited to $25,000.00; with a $5,000.00 per mechanical system subnkokv."wpnguu"c"nqygt"rgt"qeewttgpeg"uwd/nkokv"qt"nqygt"ciitgicvg"uwd/nkokv"ku"urgekÝecnn{"gpwogtcvgf"gnugyjgtg"kp"vjku" agreement.

Certain items and events are not covered by this contract. Please refer to section F. Limitations of Liability and to the exclusions listed in each applicable section of this contract.

A. Coverage

1. HSA will provide home protection coverage for authorized repair or replacement of “Component Parts” mentioned as covered in accordance with the terms and conditions of this contract that fail due to “Operational Failure”. HSA will cover “Loss” so long as the “Component Parts”:

A. Are located within the “Interior” of the main foundation of the home or attached or detached garage (except for the exterior well pump, septic system, condensing unit and pool/spa equipment); and

B. Become inoperative due to normal wear and tear; and

C. Are in “Proper Working Order” on the effective date of this contract; and

D. Are properly installed throughout the term of this contract for proper diagnosis.

2. This contract covers single-family resale homes and condominium or town house units. Multi-family homes up to and including eight (8) family dwelling units may be covered if applied for and the appropriate fee is paid. Multiple-family homes qualify for listing coverage; however, coverage is limited to the owner-occupied unit. Tenant occupied properties are not eligible for coverage during the listing period. Coverage is for owned or rented residential property and excludes commercial property or residences used as businesses, including but not limited to, day care centers, fraternity/sorority houses and nursing/care homes.

3. Coverage includes only the items stated as covered and excludes all others. Coverage is subject to limitations and conditions speci Ýgf"kp"vjku"eqpvtcev0"Rngcug"tgcf"vjg"eqpvtcev"ectghwnn{0

1. “Component Parts” - the constituent elements of mechanical items as covered by this contract.

2. “Operational Failure” - the mechanical breakdown of “Component Parts”.

3. “Proper Working Order” - functioning as intended and expected for its age, and within the safety standards as established by the system manufacturer.

4. “Loss” – the reasonable market cost or the actual cost HSA can contract for the required services, whichever is less, for the repair or replacement of “Component Parts”.

5. “Interior” - the space within the external surface area which constitutes the perimeter of the residence’s exterior walls; wpfgt"vjg"tqqÝpi"ocvgtkcnu="cdqxg"qt"gpecugf"kp"vjg"dcugogpv"Þqqt"qt"jqogÓu"uncd."qt"cdqxg"vjg"itqwpf"uwthceg"kp"c" crawl space.

C. Coverage Period

Home seller: coverage begins on the date HSA issues a contract number and continues for twelve (12) months, until close of sale or vgtokpcvkqp"qh"nkuvkpi."yjkejgxgt"qeewtu"Ýtuv0

Home buyer: for properties involved in a real estate transaction, coverage begins at the close of sale and continues for twelve (12) months from that date. Payment is due at the close of sale.

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Length of coverage is determined by the premium paid. Payment is due at the close of sale.

Buyer direct: for properties not involved in a real estate transaction, coverage begins 15 days after payment is received by HSA and continues for twelve (12) months from that date. Visit www.myhomewarranty.com for pricing.

D. Customer Service

1. YOU MUST NOTIFY US PRIOR TO REPAIR OR REPLACEMENT. When service is needed due to an “Operational Failure”, including emergency situations, you are to telephone HSA at 1-800-367-1448, twenty-four (24) hours per day, and seven (7) days per week. This telephone contact shall initiate the service process without the requirement of a claim hqto"qt"ugtxkeg"crrnkecvkqp0"Vjku"pqvkÝecvkqp"kpenwfgu"vjg"tgswktgogpv"vjcv"yg"jcxg"vjg"qrrqtvwpkv{"vq"urgcm"ykvj"vjg" service contractor prior to the implementation of any repairs. Failure to do so may result in our denial of reimbursement for the expenses you incurred.

HSA shall not be liable for a “Loss” unless notice is given to HSA prior to the expiration of your coverage and the reported “Operational Failure” is professionally diagnosed and the diagnosis is reported to HSA within 15 days after the expiration of your coverage, regardless of when the “Operational Failure” occurred.

2. You shall take every precaution to protect the property giving rise to the “Operational Failure” until the necessary repair or replacement is authorized by HSA and made. Repair or replacement shall be performed within forty-eight (48) hours, under normal circumstances, of an approved claim by a service contractor chosen by HSA, unless a service contractor of your choice is approved by HSA when you report the malfunction or “Operational Failure” by telephone. HSA selected service contractors must be used on all claims. (Please notify HSA if you have a complaint about an HSA selected service contractor.) If HSA cannot provide a contractor for you, HSA will approve the use of a contractor outside of its pgvyqtm0"Yg"jcxg"vjg"uqng"tkijv"vq"fgvgtokpg"kh"kvgou"yknn"dg"tgrcktgf"qt"tgrncegf0"Wpnguu"urgekÝecnn{"kfgpvkÝgf"gnugyjgtg" kp"vjku"eqpvtcev."tgrncegogpv"ujcnn"dg"ykvj"u{uvgou"eqorctcdng"kp"hgcvwtgu."ecrcekv{"cpf"ghÝekgpe{="JUC"ku"pqv"tgurqpukdng" for matching dimensions, color or brand. The use of non-original manufacturer “Component Parts” is permitted in making repairs under this contract. We will use original manufacturer “Component Parts” when non-original manufacturer “Component Parts” are unavailable. HSA reserves the right to obtain additional opinions at our expense. HSA reserves the right to offer cash in lieu of repair or replacement based on what HSA can expect to pay to repair the failure (parts and labor); this amount may be less than retail or less than your actual cost. Once a failure has been diagnosed, subsequent failures to the same system will be exempt from coverage unless and until proof of repair is submitted to HSA. Proof shall include, but is not limited to, receipts verifying repair and/or replacement.

3. DEDUCTIBLE: you will pay the $75.00 or $100.00 deductible for each separate trade call. Deductible amount is determined by the contract price selected. If multiple visits are required for the same repair you will not be charged an additional deductible. Trade call means each visit by an authorized repair contractor. The deductible shall apply to all approved costs including service call charges. If service work performed under this contract should fail, then HSA will make the necessary repairs without an additional deductible for a period of 90 days on parts and 30 days on labor. In the event that the failure is not covered, you are responsible for all charges incurred.

4. When you select the service contractor, you may be required to pay them directly and seek reimbursement from HSA if the service contractor will not bill us. HSA is not responsible for overtime service rates unless we determine a life threatening or property damaging “Operational Failure” has occurred. HSA will reimburse you for your approved coverage, subject to applicable deductible(s) within 30 days of receipt of a paid invoice from the service contractor or other proof of payment acceptable to HSA. Claim documentation and any correspondence can be faxed to HSA at 1-877-638-1741 or mailed to 1861 Ludden Dr., Cross Plains, WI 53528.

5. You are required to pay the service contractor directly for the service call fee and any non-covered charges. In the event that no covered “Operational Failure” is discovered, you are required to pay the service contractor directly for all charges incurred, including access and diagnosis. HSA will not respond to a new service request when any previous deductible(s) or fees are outstanding. HSA reserves the right to recover any outstanding deductible(s) and fees directly from the contract holder.

E. Covered “Component Parts”

Seller & Buyer Coverage

In accordance with the terms and conditions of the warranty contract, HSA will repair or replace systems and appliances urgekÝecnn{"ogpvkqpgf"cu"eqxgtgf="cnn"qvjgtu"ctg"gzenwfgf0"Rngcug"tghgtgpeg"Ugevkqp"H0"Nkokvcvkqpu"qh"Nkcdknkv{"hqt"igpgtcn" exclusions and limitations.

NOTE FOR SELLER: items 1. and 2. in Section E. are limited to a combined $1,500 aggregate maximum during the listing period.

1. CENTRAL HEAT - COVERED: (up to 2 units) includes forced air furnace; radiant electric including wiring, heat lines installed in electrical baseboards, or ceiling cables; radiant hot water/steam boilers, self-contained heating systems and oil systems are covered up to $1,500 aggregate including radiant heating lines, circulating rworu"cpf"rkrkpi="uqnct"jgcvkpi"wpkvu"kpenwfkpi"uqnct"eqnngevqtu."tgÞgevqtu"cpf"Ýdgtincuu"qt"icnxcpk¦gf"jqnfkpi"vcpmu"vjcv" are used for storage of water for a solar heating system; heat exchangers, wall furnaces if they are the main source of heat to the residence; thermostats, ductwork from heating unit to point of attachment at registers or grills; ductwork-attached jwokfkÞgtu0"PQV"EQXGTGF<"eqnngevqt"dqz."eqcn"cpf"yqqf"dwtpkpi"gswkrogpv."ejkopg{u."Ýtgrncegu."Þwg"nkpgtu."u{uvgou" ykvj"eqortguuqtu"nctigt"vjcp"Ýxg"vqpu="qkn"uvqtcig"vcpmu."htgg"uvcpfkpi"qt"rqtvcdng"urceg"jgcvgtu."jgcv"qt"gpgti{"tgeqxgt{" wpkvu="ckt"engcpgtu1Ýnvgtu."eqpfgpucvg"nkpg"engctkpi."etcpg"ejctigu."jgcv"ncoru."Ýnvgtu."tgikuvgtu."itknnu."kpuwncvkqp."kortqrgtn{" sized ductwork.

2. CENTRAL AIR - COVERED: (up to 2 units) electric units, refrigerated or evaporative units, packaged systems, heat pumps; geothermal system and water source heat pump system “Component Parts” located within the “Interior” of the residence; glycol systems, water source and geothermal heat pump systems are covered up to $1,500 aggregate; thermostats, ductwork from cooling unit to point of attachment at registers or grills. For eqxgtgf"ckt"eqpfkvkqpkpi"cpf"jgcv"rwor"hcknwtgu."yjgp"tgrckt"ku"pqv"rquukdng"cpf"nkmg"UGGT"*Ugcuqpcn"Gpgti{"GhÝekgpe{" Ratio) or HSPF (Heating Seasonal Performance Factor) equipment is not readily available, HSA will replace with 13 SEER or 7.7 HSPF equipment. HSA will also install a TX valve or will replace the evaporator coil/air handler and line set to match vjg"UGGT1JURH"tcvkpi"vq"vjg"tgrncegf"gswkrogpv0"OqfkÝecvkqpu."kpenwfkpi"dwv"pqv"nkokvgf"vq."c"tgrncegogpv"rcf"hqt"vjg" condensing unit, relocation of existing equipment to accommodate larger sized equipment, ductwork fabrication or plenum work that is necessary to install the new coil in the existing space, will be the responsibility of the homeowner; if the 7 Star Writcfg"ku"rwtejcugf."JUC"yknn"rc{"oqfkÝecvkqp"ejctigu"wr"vq"&522"kp"vjg"ciitgicvg"hqt"vjg"dw{gt0"NOT COVERED: gas wpkvu."u{uvgou"ykvj"eqortguuqtu"nctigt"vjcp"Ýxg"vqpu="qwvukfg1wpfgtitqwpf"rkrkpi."ygnn"rwor"cpf"ÐEqorqpgpv"RctvuÑ"hqt" geothermal and/or water source heat pumps; heat or energy recovery units; non-ducted air conditioners, condensate line engctkpi."etcpg"ejctigu."Ýnvgtu."tgikuvgtu."itknnu."kpuwncvkqp."kortqrgtn{"uk¦gf"fwevyqtm0

3. DOMESTIC WATER HEATER - COVERED:"vcpm."jgcv"gngogpvu."vjgtoquvcv."xcnxgu."Þwg"rkrkpi."gngevtkecn"qt" gas connections. NOT COVERED: solar/solar-assisted water heating units, circulating pumps, expansion tanks, ugfkogpv"dwknf/wr."gpgti{"eqpugtxcvkqp"Þwgu"cpf"xgpvu0"

4. “INTERIOR” PLUMBING SYSTEM - COVERED: leaks and breaks of water supply lines, gas lines, drain and waste lines; leaks in polybutylene piping are covered up to $500 aggregate per contract period; drain line routing with rotary machinery (excludes camera diagnosis and hydro-jetting to clear the line) through an ceeguukdng"engcpqwv."r/vtcr."ftckp"qt"qxgtÞqy"ceeguu"rqkpvu="faucet and shower head assemblies and their respective “Component Parts” including valve for shower/tub diverter, trip levers, tub stopper assembly and sink pop-up assembly; rtguuwtg"tgiwncvqtu."ycz"tkpi"ugcnu."vqkngv"Ýzvwtg"cpf"ycvgt"vcpm"*tgrncegf"ykvj"dwknfgtÓu"uvcpfctf"cu"pgeguuct{+="rctvu"ykvjkp" the toilet tank, in-line shut-off valves, risers leading into: sinks, tubs and toilet; primary sump pump for pumping water only; single-point instant hot water dispenser including casing, element, wiring and valve; whirlpool bathtub pump and motor assembly. Buyer only: water well pump, septic system and water softener. NOT COVERED: ejector/lift pumps; basket strainers, shower base pans, shower enclosures or doors, sinks, tubs, drain tile/French drains, sprinkler systems; water Ýnvgt1rwtkÝgt."dkfgvu."hcknwtgu"fwg"vq"ucnv."okpgtcn"dgfu"qt"fgrqukvu="ecwnmkpi."itqwvkpi."qt"vkngu="nkpgu"qt"rctvu"n{kpi"ykvjkp"cp" unheated area; drain line stoppages caused by roots; HSA is not responsible for installing a clean-out or pulling/re-setting a toilet to access a drain line stoppage; routing through roof vents is not covered.

5. “INTERIOR” ELECTRIC - COVERED: wiring, main service panels, sub-panels, receptacles or outlets, switches, fuse boxes, electric wiring to all major electrical equipment; outside outlets attached to the primary residential structure and garage; garage door opener (2 systems maximum) must meet current safety standards; includes track assembly and carriage unit if part of the opener unit; permanently installed “Interior” attic and exhaust fans"wugf"hqt"vjg"kpvcmg"cpf"qwvrwv"qh"ckt"gzenwfkpi"dgnvu."ujwvvgtu"cpf"Ýnvgtu="ceiling fans. Buyer only: central xcewwo."fqqt"dgnn"u{uvgo."nkijvkpi"Ýzvwtgu."dwtinct"cncto"cpf"Ýtg"cncto0"NOT COVERED: any failure in the central electrical system caused by non-covered electrical wiring or components; telephone wiring; garage door: cables, rollers, hinges, springs, keypads, remote transmitter units or door replacement; chandeliers, smoke alarms, intercom systems; exhaust equipment mounted on the roof (i.e. ridge-a-lators).

6. KITCHEN APPLIANCES - COVERED: all “Component Parts” including timers that affect the primary function of the appliance; except for clothes washer and dryer all appliances must be located in the primary kitchen unless additional units have been approved by HSA and premium has been received by HSA; includes oven/range, dishwasher, garbage disposal, built-in microwave oven, trash compactor and home freezer. HSA will pay up to $2,000 aggregate for the life of the contract toward repair/replacement of Professional series or ultra-premium appliances, including, but not limited to, Sub-Zero, Viking or Jenn-Air (individual trademarks are owned by the brand name company). Buyer only: refrigerator, clothes washer and dryer. NOT COVERED: condensate line clearing, self-cleaning mechanisms; ice maker/crusher, beverage dispenser and their respective “Component Parts”; any failures to the door other than appliance controls located within the door; clocks, knobs, handles, dials, springs, hinges, tubs, liners, baskets, shelves, drains, glass breakage, probes, rotisseries, racks, rollers, light bulbs, lock/key assemblies, buckets, televisions, computer screens or computers that are part of an appliance but do not affect the primary function of the appliance; walk-in freezers.

Buyer Only Coverage

7. WATER WELL PUMP - COVERED: “Operational Failures” occurring more than thirty (30) days after the inception date of buyer/buyer direct coverage are covered up to $1500 aggregate including access, diagnosis, repair and/or replacement; must be primary water source to residence. NOT COVERED: digging new or deeper wells; co-op/shared wells, irrigation/sprinkler wells, windmills, curing water quality, failures from lack of water, drop pipe, tank, electrical supply line, exterior piping or any part of the well that is not the pump.

8. SEPTIC SYSTEM - COVERED: “Operational Failures” occurring more than thirty (30) days after the inception date of buyer/buyer direct coverage; includes ejector/lift pump; failures to the septic system electrical wiring, lines, tank, and dry (refuse) well are limited to $300 per occurrence including access, diagnosis, repair and/or replacement. NOT COVERED: ftckp"Ýgnfu."ngcej"dgfu."cgtcvqt1cgtcvqt"u{uvgou"cpf"gngevtkecn"uwrrn{"nkpgu="eguu"rqqnu." cess pool cave-ins; upgrading system such as to city or municipal sewage system; septic tank pumping.

9. WATER SOFTENER - COVERED: all “Component Parts” including electrical wiring. NOT COVERED: rental or leased equipment; repair or replacement of water softener necessitated by mineral beds or deposits; cleaning.

10. ELECTRICAL ITEMS - COVERED: central vacuum motor and relay switches; we do not cover clogged lines or conditions of inadequate capacity; door bell systems which are not part of an intercom system; lighting Þzvwtgu."dwtinct"cnctou"cpf"Þtg"cnctou0"PQV"EQXGTGF< central vacuum hoses or accessories; chandeliers, smoke alarms and intercom systems.

11. KITCHEN REFRIGERATOR - COVERED: compressor, coil, fan motor, thermostat and wiring. HSA will pay up to $2000 aggregate for the life of the contract toward repair/replacement of Professional series or ultrapremium appliances, including, but not limited to, Sub-Zero, Viking or Jenn-Air (individual trademarks

are owned by the brand name company). NOT COVERED: ice maker/beverage dispenser, self-cleaning mechanisms, condensate line clearing; any failures to the door other than appliance controls located within the door; clocks, knobs, dials, springs, hinges, liners, glass breakage, baskets, racks, rollers, handles, shelves, light bulbs; televisions, computer screens or computers that are part of an appliance but do not affect the primary function of the appliance.

12. CLOTHES WASHER AND DRYER - COVERED: all “Component Parts” including control timers, except: HSA will pay up to $2000 aggregate for the life of the contract toward repair/replacement of Professional series or ultra-premium appliances, including, but not limited to, Sub-Zero, Viking or Jenn-Air (individual trademarks are owned by the brand name company). NOT COVERED: any failures to the door other than appliance controls located within the door; clocks, knobs, handles, dials, springs, hinges, tubs, liners, baskets, shelves, drains, glass breakage, racks, rollers, light bulbs, buckets.

13. ROOF LEAKS - COVERED: we will pay up to $750 aggregate to repair roof leaks only; includes shingles *egfct"qt"curjcnv+."dwknv"wr"tqqÝpi."uncvg"cpf"vkng0"FGHKPKVKQP<"vjg"gzvgtkqt"uwthceg"vjcv"eqpuvkvwvgu"vjg"vqr" of the residence, excluding any skylights. NOT COVERED: condominium or townhouse roofs; leaking of an existing roof that has not been properly installed or attached; damage done by ice, mud, snow or wind and any acts of Iqf="ugeqpfct{"fcocig"htqo"cp{"v{rg"qh"ngcm"qt"tg/tqqÝpi"qh"vjg"tgukfgpeg="ejkopg{u."iwvvgtu"qt"fqypurqwvu."um{nkijv"qt" um{nkijv"Þcujkpi"tgrcktu"hqt"ngcmu"qt"cp{"qvjgt"fcocig0

Buyer Options

Optional coverage may be purchased up to 30 days after the effective date of buyer/buyer direct coverage; however, coverage shall commence upon receipt of payment by HSA and will expire one year after the effective date of the contract.

14. PERMANENTLY MOUNTED ELECTRONIC AIR CLEANER - COVERED: transformer, power pack, switches, wires and elements. NOT COVERED: htgg"uvcpfkpi"wpkvu."oguj"Ýnvgtu."dcem"Þwuj"ogejcpkuou"cpf" self-cleaning units.

15. HOT TUB - COVERED:"owuv"jcxg"lgvu."korgnngtu."xcnxgu."dg"cdng"vq"Ýnn"ykvj"ycvgt"vq"swcnkh{"hqt"eqxgtcig=" kpenwfgu"Ýnvgt."jgcvgt."rwor."oqvqt."icumgvu."tgnc{u."lgvu."korgnngtu."xcnxgu"kh"uvcpf/cnqpg"jqv"vwd"*nkokvgf"vq" $1,000 per occurrence of “Operational Failure” when hot tub shares mechanicals with swimming pool). Note: if pool/hot tub combination option is selected the two systems must share mechanical equipment. NOT COVERED: cleaning equipment, skimmer equipment or secondary or booster type pumps used for cleaning pools; timers, lights, main body, nkpgtu."uvtwevwtcn"fghgevu."eqxgtu."Ýnvgt"itkfu."eqpetgvg/gpecugf"qt"wpfgtitqwpf"rnwodkpi."gngevtkecn"qt"hwgn"nkpgu="igqvjgtocn."

solar or solar-assisted water heaters and their respective plumbing and equipment; wood encased or otherwise inaccessible parts; any unit with an independent boiler system; “habitat spa” or similar type unit.

16. SWIMMING POOL - COVERED: we will pay up to $1,000 per occurrence of “Operational Failure”; includes jgcvgtu"yjkej"fq"pqv"jcxg"c"eqortguuqt"cu"c"eqorqpgpv="Ýnvgt."rwor."oqvqt."icumgvu."tgnc{u."korgnngtu."dcem" Þwuj"xcnxg"cpf"cdqxg"itqwpf"rnwodkpi"nkpgu"ngcfkpi"vq"cpf"htqo"vjg"uykookpi"rqqn="owuv"dg"hqt"c"ukping" family, commercially built and properly installed. NOT COVERED: cleaning equipment, skimmer equipment or secondary qt"dqquvgt"v{rg"rworu"wugf"hqt"engcpkpi"rqqnu="vkogtu."nkijvu."ockp"dqf{."nkpgtu."uvtwevwtcn"fghgevu."eqxgtu."Ýnvgt"itkfu."

concrete-encased or underground plumbing, electrical or fuel lines; geothermal, solar or solar-assisted water heaters and their respective plumbing and equipment; wood encased or otherwise inaccessible parts; any unit with an independent boiler system; “habitat spa” or similar type unit.

Buyer 5 Star Upgrade

Central Heat: adds"/"tgikuvgtu."itknnu."Ýnvgtu"cpf"jgcv"ncoru0 Central Air: adds - freon recovery, non-ducted ckt"eqpfkvkqpgtu."tgikuvgtu."itknnu"cpf"Ýnvgtu0" Plumbing: adds - toilets replaced with like quality up to $600 per occurrence of “Operational Failure”. Water heater: adds - sediment build-up. Electrical: adds - smoke alarms; garage door opener hinges, springs, keypads and remote transmitters. Appliances: adds - refrigerator freon recovery; ice maker and ice/beverage dispenser and their respective equipment; trash compactor lock and key assemblies, bucket; dishwasher racks, baskets and rollers; built-in microwave interior lining, door glass, clock and shelves; oven/range interior lining, clocks, rotisseries, racks, handles, knobs and dials.

Code violations: when the correction of code violation(s) is required to affect a covered repair or replacement of a heating, plumbing or electrical “Component Part”, HSA will pay up to $250 aggregate to correct the code violation(s). If there is only a code violation and no related covered repair or replacement, HSA will not pay simply to remove the violation. OqfkÞecvkqp"ejctigu<"if HSA has authorized the replacement of a water heater, central heat or central air system and metal fabrication, plenum work or installation of a new pad for a condensing unit are necessary to complete the covered tgrncegogpv."JUC"yknn"rc{"&522"ciitgicvg"vqyctf"oqfkÝecvkqp"ejctigu0" Permits: HSA will pay the cost for obtaining permits for HSA-approved repairs and replacements up to $250 per occurrence. Removal and disposal of replaced equipment: when HSA replaces a covered system we will also pay the cost to dispose of the defective equipment. Lack of maintenance: HSA will cover a defect or mechanical failure of a system that was not properly maintained, if the defect or mechanical failure would have otherwise been covered. Mismatched heating and cooling systems: HSA will cover c"fghgev"qt"ogejcpkecn"hcknwtg"qh"c"u{uvgo"vjcv"ycu"pqv"rtqrgtn{"ocvejgf"kp"uk¦g"qt"ghÝekgpe{."kh"vjg"fghgev"qt"ogejcpkecn" failure would have otherwise been covered. If the mismatched system is a code violation, coverage will be limited to $250 aggregate. Kortqrgt"kpuvcnncvkqp."oqfkÞecvkqpu"cpf1qt"tgrckt< HSA will cover a defect or mechanical failure of a system vjcv"ycu"pqv"rtqrgtn{"kpuvcnngf."oqfkÝgf"cpf1qt"tgrcktgf."kh"vjg"fghgev"qt"ogejcpkecn"hcknwtg"yqwnf"jcxg"qvjgtykug"dggp" eqxgtgf0"Kh"vjg"kortqrgt"kpuvcnncvkqp."oqfkÝecvkqp"qt"tgrckt"ku"c"eqfg"xkqncvkqp."eqxgtcig"yknn"dg"nkokvgf"vq"&472"ciitgicvg0

F. Limitations of Liability

Coverage does not apply in these instances:

1. Fgvgevcdng"rtg/gzkuvkpi"fghgevu"qt"fgÝekgpekgu."yjgp"vjg"ÐEqorqpgpv"RctvuÑ"ygtg"pqv"kp"ÐRtqrgt"Yqtmkpi"QtfgtÑ"qp"vjg" inception date of coverage, are not covered by HSA. If, on the Buyer’s effective date of this contract, the defect or malfunction of the covered “Component Parts” would not have been detectable by either visual inspection and/or simple mechanical test and/ qt"uchgv{"vguv"rgthqtogf"d{"c"swcnkÝgf"rtqhguukqpcn."vjg"fghgev"qt"ocnhwpevkqp"oc{"swcnkh{"hqt"eqxgtcig0"Hqt"gzcorng<"c"ukorng test would be a visual inspection of a heat exchanger for cracks or a carbon-monoxide test. 2. Cdwug."okuwug."Ýtg."nkijvpkpi." freezing, ice, storms, smoke, water damage, acts of God, accident, earthquake, soil movement, mud, chemical or sediment build-up, fungus, rot, mold, power failure, power shortage or power outage, insect or rodent damage, pet damage, insurable peril. 3. “Operational Failures” due to rust or corrosion are excluded during seller coverage. Subject to all other terms and conditions of coverage, “Operational Failures” due to rust or corrosion are covered effective 30 days after the inception date of buyer/buyer direct coverage. “Operational Failures” due to rust or corrosion that occurred prior to the 30th day after the inception date of buyer/buyer direct coverage, but are reported after the 30th day, are excluded from coverage. 4. HSA will not contract to perform service nor pay costs involving hazardous or toxic materials or asbestos, nor will it pay costs related to freon recapture, evacuation or disposal of refrigerants or contaminants. If the 5 Star Upgrade is purchased for/by the buyer HSA will pay costs associated with freon recovery. 5. OqfkÝecvkqp"ejctigu"qt"equvu"hqt"ogvcn"hcdtkecvkqp."rngpwo"yqtm."qt"gngevtkecn"ejcpigu" necessary to satisfy the installation requirements of a new replacement unit. If the 7 Star Upgrade is purchased for/by the buyer, JUC"yknn"rc{"wr"vq"&522"ciitgicvg"vqyctfu"oqfkÝecvkqp"ejctigu"cuuqekcvgf"ykvj"cp"crrtqxgf"jgcvkpi."ckt"eqpfkvkqpkpi"qt"ycvgt" heater repair or replacement as outlined under Section E. Buyer 7 Star Upgrade. 6. Providing access to a covered component or system other than plumbing or ductwork systems. HSA will pay to provide access to plumbing and ductwork systems through wpqduvtwevgf"ycnnu."egknkpiu"qt"Þqqtu"qpn{."cpf"yknn"tgvwtp"vjg"ceeguu"qrgpkpi"vq"c"tqwij"Ýpkuj"eqpfkvkqp0"JUC"ku"pqv"tgurqpukdng" hqt"oqxkpi"qduvtwevkqpu"kpenwfkpi."dwv"pqv"nkokvgf"vq."dwknv/kp"crrnkcpegu."u{uvgou."ecdkpgvu."vkng"cpf"Þqqt"eqxgtkpiu"qt"rwnnkpi"cpf" re-setting a sink, shower or bathtub to access a failure. Any plumbing or ductwork failure requiring access through concrete, stone, rock or brick is limited to $500 aggregate for total repair including access, diagnosis, repair and/or replacement, even if the primary failure is not located within the concrete, stone, rock or brick. 7. Excessive or inadequate water pressure, electrical uwtig."gzeguukxg"qt"kpcfgswcvg"xqnvcig."gngevtkecn"ewttgpvu"ctvkÝekcnn{"igpgtcvgf"qt"kpcfgswcvg"corgtcig."ycvgt"gpvt{"cnqpi"vjg" service cable. 8. Lack of maintenance or lack of capacity; normal maintenance, cleaning, adjustments, lubrication services, line

bleeding, capacity increases, licenses or inspection fees; failure to maintain the temperature in the residence above freezing; improper use; contamination of fuel or energy. You are responsible for providing maintenance and cleaning on covered items as urgekÝgf"d{"vjg"ocpwhcevwtgt0"Hqt"gzcorng<"jgcvkpi"cpf"ckt"eqpfkvkqpkpi"u{uvgou"tgswktg"rgtkqfke"engcpkpi"cpf1qt"tgrncegogpv" qh"Ýnvgtu"cpf"engcpkpi"qh"gxcrqtcvqt"cpf"eqpfgpugt"eqknu0"Ycvgt"jgcvgtu"tgswktg"rgtkqfke"Þwujkpi0"Kh"vjg"9"Uvct"Writcfg"ku" purchased for/by the buyer, HSA will pay costs associated with covered systems that fail due to lack of maintenance if the defect or mechanical failure would have otherwise been covered. 9. Faulty workmanship by any person including a contractor or tradeperson selected and hired. Improper installation or connection of any system, appliance or component part by a contractor/ trade-person or any other person, including improper conversions of heating systems and additions of air conditioning systems to an existing heating system. If the 7 Star Upgrade is purchased for/by the buyer, HSA will pay costs associated with covered u{uvgou"vjcv"hckn"fwg"vq"hcwnv{"yqtmocpujkr"qt"kortqrgt"kpuvcnncvkqp"qt"oqfkÝecvkqp"kh"vjg"fghgev"qt"ogejcpkecn"hcknwtg"yqwnf"jcxg" otherwise been covered. If the failure is a code violation HSA will pay up to $250 aggregate per the terms outlined under Section G. Building Codes. 10. Secondary damage, consequential damage or any damage caused by or resulting from the failure or malfunction of covered or non-covered “Component Parts”. Any damage resulting from the actual repair or replacement itself. Eqpfkvkqpu"dg{qpf"qwt"eqpvtqn"kpenwfkpi"fgnc{u"kp"qdvckpkpi"rctvu."tgnqecvkqp"qh"gswkrogpv"qt"ncdqt"fkhÝewnvkgu"kpenwfkpi."dwv"pqv" limited to, additional costs associated with repair or replacement of a covered mechanical system due to space restrictions or location of the covered equipment. Any damage alleged to be caused directly or indirectly by the services or the timeliness of the services provided by us. 11. Any remote control transmitting/receiving items. If the 5 Star Upgrade package is purchased for/by the buyer, the remote transmitter for the garage door opener will be covered for the buyer only. Electronic, computerized or energy management systems or devices, or lighting and appliance management systems are not covered; home computers, computer systems, leased or rental equipment and/or components. 12. Damage to the physical structure of the residence kpenwfkpi."dwv"pqv"nkokvgf"vq."nqcf"dgctkpi"ycnnu."ycnnu."tqqh."tqqh"uwrrqtvu."uvtwevwtcn"Þqqt"dcug."hqwpfcvkqp"qt"uncdu."cpf"egknkpiu" gzegrv"yjgtg"urgekÝecnn{"kfgpvkÝgf"cu"eqxgtgf0"13. Cosmetic repairs and non-”Operational Failures” including, but not limited to: Ýpkujgu."ecdkpgvt{."rcpgnu."vtko."dwvvqpu."ejkrrkpi."fgpvu"qt"uetcvejgu0"14. You may be charged an additional fee by the service contractor to dispose of an old appliance, system or component. HSA is not responsible for these charges. If the 7 Star Upgrade package is purchased for/by the buyer HSA will pay the cost to dispose of defective equipment on HSA approved system replacement. 15. Equipment, items or systems that are owned by a condominium association or designated as common area in condominium declarations, plats or plans. 16. More than two central heating units, central air conditioning units or garage fqqt"qrgpgtu"wpnguu"urgekÝecnn{"nkuvgf"cpf"crrtqxgf"d{"JUC0"Oqtg"vjcp"qpg"qh"cp{"crrnkcpeg"wpnguu"urgekÝecnn{"nkuvgf"cpf" approved by HSA. 17. Repairs related to manufacturer recall or defects. In the event that there is other collectible insurance, manufacturer warranty or in-house warranty or guarantee coverage available to you covering an “Operational Failure” that is also covered by this contract, our coverage shall be in excess of, and we will not contribute with, any other insurance, warranty or guarantee. 18. JUC"ku"pqv"tgurqpukdng"hqt"tgrckt"qt"tgrncegogpv"qh"u{uvgou"qt"crrnkcpegu"encuukÝgf"d{"vjg"ocpwhcevwtgt"cu" commercial. HSA will pay up to $2,000 aggregate for the life of the contract toward repair/replacement of Professional series or ultra-premium appliances, including, but not limited to, Sub-Zero, Viking or Jenn-Air (individual trademarks are owned by the brand name company). 19. All else not listed as covered.

G. Building Codes

HSA is not responsible for any upgrades, work or costs required to comply with any federal, state or local laws, regulations or ordinances or utility regulations, or to meet current building or zoning code requirements, or to correct for code violations. If the 7 Star Upgrade package is purchased for/by the buyer and the correction of code violation(s) is required to affect a covered repair or replacement of a heating, plumbing or electrical “Component Part”, HSA will pay up to $250 aggregate to correct the code violation(s). If there is only a code violation and no related covered repair or replacement, HSA will not pay simply to remove the violation. Rngcug"tghgtgpeg"Ugevkqp"G0"4"/"Egpvtcn"ckt"hqt"urgekÝe"kphqtocvkqp"tgictfkpi"ckt"eqpfkvkqpkpi"eqxgtcig"cpf"hgfgtcn" regulations. HSA is not responsible for service when permits cannot be obtained, nor will it pay any costs relating to permits. If the 7 Star Upgrade package is purchased for/by the buyer HSA will pay the cost for obtaining permits for HSA-approved repairs and replacements up to $250 per occurrence.

H. Cancellation, Transfer, Renewal

The warranty is non-cancelable by either party except for the following: A. The contract fees are not paid. B. Fraud or misrepresentation of facts material to the issuance of this contract. C. If the contract provides coverage for the seller during the listing period and the listing is withdrawn or expires. Should the contract be cancelable under the laws of the state where the contract holder resides, an allowable administrative fee will be charged upon cancellation.

In the event of a transfer of the legal title and ownership of the covered residence during buyers’ coverage, the remaining term may be assigned to the new homeowner. The assignee takes the warranty on the same terms, conditions, and expiration date as the assignor.

The warranty is renewable, by mutual consent, at prevailing rates for an additional 12 month period from the date of the contract expiration. HSA may, at its option, decline to issue any renewal or cancel any contract, if the contract fees are not paid within 10 days of the due date. Note: if you have selected a monthly payment plan, your contract will automatically renew at the expiration of this contract period. (Renewal customers: rc{ogpv"qh"vjg"Ýtuv"kpuvcnnogpv"qp"vjg"tgpgycn"{gct"rtgokwo" constitutes your consent.)

I. Agency

Pgkvjgt"vjg"tgcn"guvcvg"dtqmgt"pqt"vjg"dtqmgtÓu"ucngu"tgrtgugpvcvkxg"ku"cp"cigpv"qh"JUC0"Eqxgtcig"ku"uvtkevn{"fgvgtokpgf"d{" the warranty contract and not the representations of the real estate professional.

J. HSA’s Rights of Recovery

In the event of any payment under this contract, HSA shall be subrogated to all of contract holder’s rights of recovery against any person or organization. You shall do nothing after loss to prejudice such rights. The company shall not be bound to pay any loss if you have impaired any right of recovery for loss.

K. State Disclosures

Vgtou"qh"vjku"eqpvtcev"vjcv"ctg"kp"eqpÞkev"ykvj"vjg"uvcvwvgu"qh"vjg"uvcvgu"kp"yjkej"vjku"eqpvtcev"ku"kuuwgf"ctg"cogpfgf"vq"uwej" statutes. ARKANSAS RESIDENTS: obligations of the provider under this service contract are backed only by the full faith and credit of the provider (issuer) and are not guaranteed under a service contract reimbursement insurance policy. Free Look Provision - If no claim has been made, and you return this contract to us within 20 days of the date the contract was mailed to you by us or within 10 days of the delivery of the contract, if delivered to you at the time of sale, the contract is void and we will refund you the full purchase price of the contract. A 10% penalty per month shall be added to the refund that is not paid or credited within 45 days after the return of this contract to us. The right to void the contract is not transferable and applies only to the original contract purchaser. ILLINOIS RESIDENTS: the purchaser of this contract may within 30 calendar days of delivery of the warranty contract, provided there has been no service, cancel this contract for a full refund less a cancellation fee of 10% of the contract price or may cancel at any time and receive a pro-rata refund for the unexpired term of coverage, less the value of any service provided and less the cancellation fee. The cancellation fee will not exceed $50. Any person who, with intent to defraud qt"mpqykpi"vjcv"jg"ku"hceknkvcvkpi"c"htcwf"cickpuv"cp"kpuwtgt."uwdokvu"cp"crrnkecvkqp"qt"Ýngu"c"encko"eqpvckpkpi"c"hcnug"qt"fgegrvkxg" statement is guilty of insurance fraud. WISCOSIN RESIDENTS: THIS WARRANTY IS SUBJECT TO LIMITED REGULATION BY THE OFFICE OF THE COMMISSIONER OF INSURANCE. Cancellation: The purchaser of this warranty may, within 15 calendar days of the delivery of the warranty contract, reject and return the warranty contract for a full refund less actual costs or charges needed to issue and service the warranty contract. Any person who, with intent to defraud or knowing that he is hceknkvcvkpi"c"htcwf"cickpuv"cp"kpuwtgt."uwdokvu"cp"crrnkecvkqp"qt"Ýngu"c"encko"eqpvckpkpi"c"hcnug"qt"fgegrvkxg"uvcvgogpv"ku"iwknv{" of insurance fraud. Rights of Recovery: you will be made whole before the company may seek recovery of any subrogation interest. Notice of loss: per Wis. Statute 631.81, operational failures that have occurred on or before expiration of this contract may be reported to HSA after the expiration of the contract so long as: 1. notice of the operational failure is given to HSA as soon as reasonably possible; 2. the failure to provide notice prior to the expiration of the contract does not prejudice HSA; and 3. it was not reasonably possible to provide notice prior to the expiration of the contract. HSA will determine if this notice meets these criteria based on individual circumstances presented to HSA. In Illinois, Iowa, Maine, Massachusetts, Texas, Utah & Wisconsin: HSA operates through its subsidiary Home Security Association, Inc.

OCKNKPI"CFFTGUU"*Kh"fkhhgtgpv"htqo"ycttcpvgf"rtqrgtv{+

FAX(Required) TELEPHONE OFFICESTREETADDRESS

Buyer Information

PCOG

E-MAILADDRESS

OCKNKPI"CFFTGUU"*kh"fkhhgtgpv"htqo"ycttcpvgf"rtqrgtv{+

CITY STATE ZIP

Purchase Agreement: Whensellercoverageisselected,selleragreestopaythefeeshownonthedate legaltitletransferstothebuyer.Thisagreementisbindingandmaynotbecancelled.Ifsellerfailstopaythespecified fee,sellershallbeliableforallattorneyfeesandcourtcostsincurredbyHSAtocollectthefee. Byapplicationforthis contract,sellerand/orbuyerrepresentthat,tothebestoftheirknowledge,allitemsareingoodworkingorderonthedate ofapplicationforthiscoverage.Further,sellerand/orbuyeragreethatfailuretonotifyHSApriortorepairorreplacementof anycovereditemmayresultinarefusalofcoverageonthatitem.

HSAdisclosestothepurchaserofthiswarranty,andthepurchaserconsentsandacknowledgesbyhis/hersignature thattheemployingbrokermayreceiveaminimalfeeforservicesrenderedinmarketingoradministeringthesaleofthis warrantyplan.

SampleContractsectionofthisbrochurefordetails. Pleasesendwarrantyconfirmationby: Fax E-mail Mail F Pleasesendwarrantyconfirmationby: Fax E-mail Mail F

Coverage CLOSEDATE

CONTRACT NUMBER DATE ASSIGNED Pcog"cu"qp"etgfkv"ectf Cardholder’ssignature Date

Select coverage desired: ̌$75 Deductible Single family residence ̌ $439 Condominium ̌ $409 Multiple family ($439 + $160 each additional unit) ̌ $ ̌$100 Deductible Single family residence ̌ $419 Condominium ̌ $389 Multiple family ($419 + $150 each additional unit) ̌ $ HSA New Construction Year 2 ̌ $439 Year 2 through 4 ̌ $539 Optional Coverage For Buyer: Electronic air cleaner ̌ $40 Hot tub ̌ $150 Swimming pool ̌ $150 Pool/hot tub combination (must share common mechanicals) ̌ $175 New Construction: Call for optional coverage pricing 1-800-367-1448 Buyer 5 Star Upgrade* ̌ $50 Buyer 7 Star Upgrade* ̌ $149 Total $

Payment Due At Closing Home Security of America, Inc. 1861 Ludden Drive Cross Plains, WI 53528 www.onlinehsa.com 1-800-367-1448

Check is enclosed (payable to HSA) Charge my credit card Discover MasterCard Visa American Express

$75.00 deductible Coverage begins one year after closing *If upgrade(s) have been selected and the property is a multiple family dwelling, the upgrade package(s) must be purchased for each unit. page 84

Homeowner Oil Heating System Upgrade and Insurance Law

By September 30, 2011, you must upgrade your home heating systemequipment to prevent leaks fromtanks and pipes that connect to your furnace.

This fact sheet contains important information for those who heat their homes with oil.By September 30, 2011, you must upgrade your home heating system equipment to prevent leaks from tanks and pipes that connect to your furnace. By making a relatively small expenditure now, you can prevent a much greater expense in the future.

line with aprotective sleeve, as shown in the diagram.These devices must be installed bya licensed oil burner technician. Technicians are employed by companies that deliver home heating oil or are self-employed. It is important to note that heating oil systems installed on or after January 1, 1990 most likely are already in compliance because state fire codes implemented these requirements on new installations at that time.

Who is exempt?

property to state environmental standards. Leaks that affect another property or impact drinking water supply wells can complicate the cleanup and increase the expense. Each year, several hundred Massachusetts families experience some kind of leak.

What will an upgrade cost?

Massachusetts has a new law to address oil leaks from home heating systems (seeChapter 453 of the Acts of 2008, as most recently amended in 2010). This law has two major provisions that require:

the installation of either an oil safety valve or an oil supply line with protective sleeve on systems that do not currentlyhave these devices; and insurancecompanies that write homeowner policies to offercoverage for leaksfrom heating systems that use oil.

Most homeowner policies do not currently include such coverage, leaving many to pay for costly cleanups out of their own pocket. Although it is mandatory that insurance companies make thiscoverageavailable by July 1, 2010 to homeowners whose systems are upgraded, the insurance isan optional purchase.

Who must take action?

Owners of 1-to 4-unit residences that are heated with oil must already have or install an oil safety valve or an oil supply

Homeownersare exempt from taking these leak prevention steps if:

the oil burner is located above the oil storage tank and the entire oil supply line is connected to and above the top of the tank OR

an oil safety valve or oil supply line with protective sleeve wasinstalled on or after January 1, 1990, AND those changes comply with the oil burning equipment regulations; a copy of the oil burner permit from the local fire department may be used to demonstrate compliance.

Why comply?

Not only is complying with the new law required, it makes good financial and environmental sense. Homeowners who take these preventive measures can avoid the disruption and expense that can be caused by heating oil leaks. A leak may result in exposure to petroleum vapors in your home. If the leak reaches the soil or groundwater beneath your house, then a cleanup must be performed to restore your

The typical cost of installing either an oil safety valve oroil supply line with a protective sleeve ranges from$150$350 (including labor, parts, and local permit fees).

What could it cost to cleanup a leak?

The cleanup cost for a “simple” leak can be as much as $15,000. In cases where the leak affects the groundwater or is more extensive, the cleanup costs can reach $250,000 or more.

What kind of insurance is available?

To be eligible for the new insurance coverage, homeowners must ensure that their oil heating systemsare in compliancewith the new law.

Homeowners who have been certified to be in compliance with (or exempt from) the leak prevention measures qualify to purchase insurance that: provides “first party coverage” of at least $50,000 for the cost of cleaning up a leak to soil, indoor air, or other

environmental media from a home heating system atthe residence itself and reimbursement for personal property damage, AND provides “third party coverage” of at least $200,000 for the cost of dealing with conditions on and off the insured’s property because the leak from this system has or is likely to affect groundwater or someone else’s property. The coverage also includes costs incurred for legal defense, subject to a deductible not to exceed $1,000 per claim.

What should I do next?

Determine whether you have had an oil safety valve or oil supplyline

!

with protective sleeve installed since January 1, 1990.If you have, your permit from the fire department for the installation can be used to document your compliance. You can request a copy from the fire department if the permit is on file, or a licensed oil burner technician can certify that status on a form.

If you do not have an oil safety valve or oil supply line with protective sleeve in place, have one or the other installed and certified.Either contact your oil delivery company to ask ifthey employ a licensed oil burner technician or findone in your area.

" Consider buying insurance coverage for the cleanup of a leak.

Determine whether your existing policy provides oil leak coverage.

If it does not, consider calling your homeowner insurance agent to amend the policy to include this coverage.

The Commonwealth of Massachusetts

Executive Office of Health and Human Services

Department of Public Health Bureau of Environmental Health 250 Washington Street, 7th Floor Boston, MA 02108 (800) 532-9571 / (617)-624-5757

CHILDHOOD LEAD POISONING PREVENTION PROGRAM (CLPPP) PROPERTY TRANSFER LEAD PAINT NOTIFICATION

Under Massachusetts and federal law, this notification package must be given to prospective purchasers of homes built before 1978. This package must be given in full to meet state and federal requirements. It may be copied, as long as the type size is not made smaller. Every seller and any real estate agent involved in the sale must give this package before the signing of a purchase and sale agreement, a lease with an option to purchase, or, under state law, a memorandum of agreement used in foreclosure sales. Sellers and agents must also tell the prospective purchaser any information they know about lead in the home. They must also give a copy of any lead inspection report, risk assessment report, Letter of Compliance or Letter of Interim Control. This package is for compliance with both state and federal lead notification requirements.

Real estate agents must also tell prospective purchasers that under the state Lead Law, a new owner of a home built before 1978 in which a child under six will live or continue to live must have it either deleaded or brought under interim control within 90 days of taking title. This package includes a check list to certify that the prospective purchaser has been fully notified by the real estate agent. This certification should be filled out and signed by the prospective purchaser before the signing of a purchase and sale agreement, a lease with an option to purchase or a memorandum of agreement used in a foreclosure sale. It should be kept in the real estate agent's files. After getting notice, the prospective purchaser has at least 10 days, or longer if agreed to by the seller and buyer, to have a lead inspection or risk assessment if he or she chooses to have one, except in cases of foreclosure sales. There is no requirement for a lead inspection or risk assessment before a sale. A list of private lead inspectors and risk assessors licensed by the Department of Public Health is attached and can also be found on the Childhood Lead Poisoning Prevention Program’s website at www.mass.gov/dph/clppp.

Sellers and real estate agents who do not meet these requirements can face a civil penalty of up to $1,000 under state law; a civil penalty of up to $10,000 and possible criminal sanctions under federal law, as well as liability for resulting damages. In addition, a real estate agent who fails to meet these requirements may be liable under the Massachusetts Consumer Protection Act.

The property transfer notification program began in 1988 and has been very successful. It provides information you need to protect your child, or your tenants' child, from lead poisoning. Massachusetts has a tax credit of up to $1,500 for each unit deleaded. There are also a number of grants and no-interest or lowinterest loans available for deleading. It's up to you to do your part toward ending lead poisoning.

PLEASE TAKE THE TIME TO READ THIS DOCUMENT. LEAD POISONING IS THE NATION'S LEADING ENVIRONMENTAL HAZARD AFFECTING CHILDREN. DON'T GAMBLE WITH YOUR CHILD'S FUTURE.

CLPPP Form 94-2, 6/30/94, Rev. 2/03, Rev. 10/09

What is lead poisoning? How do children become lead poisoned?

Lead poisoning is caused by exposure to lead in the environment. It is most dangerous for children under six years old. In young children, too much lead in the body can cause permanent harm to the brain, kidneys, nervous system and red blood cells. Even at low levels, lead in children's bodies can slow growth and cause learning and behavioral problems. The main way children get lead poisoned is by swallowing lead paint dust. They do not have to chew on leaded surfaces or eat paint chips to become poisoned. Most childhood lead poisoning is caused by children's normal behavior of putting their hands or other things, such as toys, in their mouths. If their hands or these objects have touched lead dust, this may add lead to their bodies. Children can also be exposed to lead from such other sources as lead-contaminated soil or water, but these sources alone rarely cause lead poisoning. Lead can be found in soil near old, lead-painted houses. If children play in bare, leaded soil, or eat vegetables or fruit grown in such soil, or if leaded soil is tracked into the home and gets on children's hands or toys, lead may enter their bodies.

What are the symptoms of lead poisoning? How is it detected?

Most lead poisoned children have no special symptoms. The only way to find out if a child is lead poisoned is to have his or her blood tested. The Massachusetts Lead Law requires all children between 9 months and 3 years old to be screened annually for lead, and again at age 4 if living in a high-risk community If your child has been exposed to lead, or if you do not know if your child under age six has been screened for lead, ask your child's doctor, other health care provider or your local board of health for a simple screening test of your child.

What is the treatment for lead poisoning?

Treatment of a lead poisoned child starts with finding and removing the lead hazards to which the child is exposed. This will include a lead inspection of the child's home, and if lead hazards are identified, deleading of the home. Medical treatment depends on the child's blood lead level and the child's response to the removal of the lead source. Parents will be taught about protecting their child from lead exposure. They will need to watch the child's progress through frequent blood tests. If necessary, the child may receive special drugs to help rid his body of excess lead. With this treatment, drugs are given daily for as long as several weeks. Sometimes this must be done more than once. A child who has been lead poisoned will need a lot of blood tests for a year or more. He or she should be tested for learning problems before starting school.

Are children under six years old the only ones at risk of lead poisoning?

No. Young children are usually more easily and seriously poisoned than older children or adults, but lead is harmful to everyone. Lead in the body of a pregnant woman can hurt her baby before birth. Older children and adults who live in older housing with lead paint hazards may become exposed to lead and could potentially develop lead poisoning through home renovation. Most lead poisoning in adults is caused by work-related exposure or home renovation. Even hobby supplies, such as stained glass, bullets and fishing sinkers, can expose people to lead. Lead poisoning in adults can cause high blood pressure, problems having children for both men and women, digestive problems, nerve disorders, memory loss and problems concentrating, and muscle and joint pain. Adults who have any of these symptoms and who have been exposed to lead should consider being screened for lead. Those

who are regularly exposed to lead through their work are required by law to have their blood tested once a year for lead.

What are the dangers of lead paint in homes, and when was it used?

Lead paint in homes causes almost all childhood lead poisoning. Lead is so harmful that even a small amount of fine lead dust that cannot be seen can poison a child. Lead paint covered by layers of nonleaded paint can still poison children, especially when it is disturbed, such as through normal wear and tear, or home repair work. When such lead paint is on moving surfaces, such as windows, fine lead dust is released through normal use. This dust settles, where it can be easily picked up on children's toys and fingers. Household paint with poisonous (now illegal) levels of lead was in use in Massachusetts from the 1690s until 1978. In 1978, the U.S. government banned lead from house paint. Lead can be found in all types of pre-1978 homes: homes in cities, suburbs or the countryside; private housing and state or federal public housing; single-family and multi-family homes. The older the house, the more likely it is to contain lead paint. The older the paint, the higher the likely lead content.

Can routine home repairs cause lead poisoning?

There can be a danger of lead poisoning whenever painted surfaces inside or outside the home are scraped for repainting, or woodwork is stripped or removed, or windows or walls are removed. This is because lead paint is found in almost all Massachusetts homes built before 1978, and so many of Massachusetts' homes are old. Do not use power sanders, propane torches or heat guns to remove leaded paint, as these methods create a lot of lead dust and fumes. Temporarily move your family (especially children and pregnant women) out of the home while the work is being done and cleaned up, or at a minimum, tape up plastic sheets to completely seal off the work area. Get a lead inspection done, so that you will know which surfaces have lead paint and need extra care when preparing for and doing home repair work, and during cleanup afterwards. Do not do repairs in older homes without learning about safe ways to do the work to reduce the danger of lead dust. Hundreds of cases of childhood and adult lead poisoning result each year from do-it-yourself home projects.

How does the owner of a home built before 1978 in which a child under six years old lives meet the requirements of the Massachusetts Lead Law?

The first step is to have a lead inspection or risk assessment done. A licensed lead inspector will test the surfaces of the home for lead and give the owner a written report that states where there is lead in amounts considered a violation by state law, and record any lead hazards that must be corrected. A risk assessor, who is a specially licensed lead inspector, will do a lead inspection plus a risk assessment, during which he or she checks the home for the most serious lead hazards that must be fixed for interim control. (See question about interim control, below.) Only a licensed deleader may do high-risk work, such as removing lead paint or repairing chipping and peeling lead paint. Either a deleader, the owner or someone who works for the owner (an agent) can do certain other deleading and interim control tasks. (See next question.) An owner or agent must get special training to perform the deleading tasks they may do. After the work is done, the lead inspector or risk assessor returns to check the home. He or she may take dust samples to test for lead and makes sure the home has been properly cleaned up. If everything is fine, he or she gives the owner a Letter of Compliance or a Letter of Interim Control. After getting one of these letters, the owner must take reasonable care of the property, mainly by making sure there is no peeling lead paint.

Can I do some of the deleading myself?

In Massachusetts, the owner or someone who works for the owner (an agent) can do certain deleading activities. These include covering surfaces with certain materials; removing certain building parts; capping baseboards; installing vinyl siding on the exterior, and applying encapsulants. Encapsulants are special liquid coatings made to be long-lasting barriers over lead paint. Before any of these deleading tasks are done, the owner must first have a lead inspection done and whoever is going to do the work must get special training. Contact CLPPP for information about this training. In addition, owners or their agents can perform structural repairs and lead dust cleaning for interim control. Before doing this work, owners and agents should get and read CLPPP's interim control booklet.

Is there financial help for deleading?

There is a state income tax credit of up to $1,500 per unit for full deleading. A credit of up to $500 per unit is available for interim control work that also contributes to full deleading. There are also grants and no-interest, deferred loans, or low-interest loans available to eligible property owners. These funds are available through the U.S. Department of Housing and Urban Development, the Massachusetts Executive Office of Communities and Development, the Massachusetts Housing Finance Authority, local city and town community development planning departments, and banks.

Does deleading improve the value of my property?

Many homeowners have found that the benefits of deleading are not unlike the benefits of other home improvement projects. Replacement windows and doors can save the homeowner money because they are more energy efficient. Having a legally deleaded home, whether it is a single-family or multi-family, owner-occupied or rental unit, can make it easier to sell or rent, often at a better price.

What surfaces must be deleaded for full compliance with the Massachusetts Lead Law?

Owners of homes built before 1978 where children under six years of age live must have the following lead hazards corrected to get a Letter of Compliance:

* any peeling, chipping or flaking lead paint, plaster or putty;

* intact lead paint, other coating or putty on moveable parts of windows with sills five feet or less from the floor or ground and those surfaces that come in contact with moveable parts;

* intact lead paint or other coating on "accessible mouthable surfaces." These surfaces generally include woodwork, such as doors, door jambs, stairs and stair rails, and window casings.

What is interim control?

Interim control is a set of temporary measures that property owners can take to correct urgent lead hazards, especially peeling or chipping lead paint and lead dust. These steps protect residents from lead poisoning until the home is fully deleaded. Homes in good condition may need little or no work to get interim control status. Owners then have up to two years before they have to fully delead the home. For that period, they are protected from strict liability under the state Lead Law should a child become lead poisoned in the home, as long as the home is maintained and the conditions for

interim control are met. In addition to the repair of peeling and chipping lead paint and the cleaning of lead dust, other work may be necessary for interim control. This includes fixing water leaks or other damage that makes lead paint peel and chip; making window wells smooth and easy to clean; making windows work properly and deleading any badly chipping and peeling lead-painted surfaces.

Property owners interested in interim control must hire a licensed risk assessor. He or she will then decide what work, if any, needs to be done to get a Letter of Interim Control. The original Letter of Interim Control is good for one year. The property owner can have the home reinspected before the end of that year, and if all conditions are met, the home can be recertified for another year. By the end of the second year, the home must be deleaded, if a child under six still lives there, for the owner to remain free of strict liability.

Does my family have to be out of the house during deleading or interim control work?

Residents must be out of the house for the entire time that a deleader is doing deleading work inside a home, and for some of the deleading work by owners and their agents. Residents may stay at home, but out of the work area, while a deleader, property owner or owner's agent without a deleader's license does certain other deleading tasks, or such interim control work as structural repairs or lead dust cleaning. Residents who have been out of the house may not return until the deleading work that made it necessary for them to leave is complete, the home is cleaned up, and a lead inspector or risk assessor has checked and found this work has been properly done and dust samples have passed. For complete details, contact CLPPP.

Are there any exemptions to the Massachusetts Lead Law?

The Lead Law applies only to homes built before 1978 in which a child under six lives. Any home or apartment having fewer than 250 square feet of living space, or which is in a rooming house, is exempt, as long as no child under age six is living there. Finally, homes rented for 31 days or less for vacation or recreational purposes are also exempt, as long as there is no chipping or peeling lead paint in the home and the renter has received the Short-Term Vacation Rental Notification.

What are the requirements of the state Lead Law if there is a lease with an option to buy?

When there is a lease with an option to buy a home built before 1978 in effect, the owner of the property must have it deleaded or brought under interim control if a child under six lives there. If the tenant with an option to buy such a home proceeds to purchase it, he or she becomes responsible for meeting the requirements of the Lead Law if a child under six lives there after the purchase.

How can I find out about how lead inspections, risk assessments and deleading should be done?

All lead inspections, risk assessments and deleading must be done according to the Regulations for Lead Poisoning Prevention and Control, 105 Code of Massachusetts Regulations 460.000 and the Deleading Regulations, 454 CMR 22.00. For full information, homeowners may get these regulations at the State House Book Store, State House, Boston, MA 02133. The phone number is (617) 727-2834. Lead inspectors and risk assessors licensed by the Department of Public Health have been trained and are experienced in using the state-approved methods for testing for lead paint. These methods are the following: use of a solution of sodium sulfide, a portable x-ray fluorescence machine or lab tests of paint samples removed from the home. Deleaders licensed by the Department of Labor and Workforce Development have been trained to use safe methods to prepare for and do deleading work, and clean up afterwards. They may delead using any of the following methods: removing paint, removing building parts, covering and encapsulating. When removing paint, they cannot use certain

very dangerous methods, such as open flame burning, dry abrasive blasting or power sanding without a special vacuum attachment.

How do I get a lead inspection or risk assessment?

Included as part of this notification package is a listing of private licensed lead inspectors organized alphabetically, and private licensed risk assessors, similarly organized. Ask to see the inspector or risk assessor's license, to make sure it is current. You should arrange for the inspection or risk assessment as quickly as possible after deciding you want one. If you do have an inspection or risk assessment, you must give the seller a copy of the report.

What is the best time to delead or undertake interim control?

The best time to delead a home or bring it under interim control is when the home is vacant, so that residents will not be exposed to lead and household furnishings will not be contaminated with lead. In addition, it often is efficient, and reduces costs, to combine deleading with other repair work being done to a vacant home.

What is a Letter of Compliance and a Letter of Interim Control?

Under the state Lead Law, a Letter of Compliance is a legal letter that says either that there are no lead paint hazards or that the home has been deleaded. The letter is signed and dated by a licensed lead inspector. A Letter of Interim Control is a legal letter that says work necessary to make a home temporarily safe from lead hazards has been done. It is signed and dated by a licensed risk assessor. A Letter of Interim Control is good for one year, but can be renewed for one more year. The owner must fully delead the home and get a Letter of Compliance by the end of the second year if a child under six still lives there. The Lead Law does not require the removal of all lead paint from a home. An owner who gets a Letter of Compliance or Letter of Interim Control must take reasonable care to keep up the home, mainly by making sure there is no chipping or peeling lead paint. If an owner fails to take reasonable steps to maintain the home, he or she may become liable for damages to a child lead poisoned as a result of the owner's breach of that duty of reasonable care.

RENTAL PROPERTY INFORMATION

What liability do rental property owners have if they don't comply with the state Lead Law?

If a property owner of a home built before 1978 in which a child under six lives fails to delead or bring the home under interim control, and a child is lead poisoned as a result, the property owner is strictly liable for all damages. An owner is not strictly liable for lead poisoning if a Letter of Compliance or Letter of Interim Control is in effect. Strict liability means owners may be liable even if they did not know lead paint was in the home. Since harm to the kidneys and blood cells, delays in growth, learning disabilities and emotional and behavioral disturbances resulting from lead poisoning can have life-long effects, monetary damages awarded against an owner responsible for a child's lead poisoning can be substantial. Failing to delead or bring under interim control a home to which the Lead Law applies is also an emergency public health matter, and can carry criminal penalties. An owner who is notified by a public agency of Lead Law violation in a property he or she owns, and who willfully fails to correct the dangerous conditions, is also subject to punitive damages, which are three times the actual damages found. These provisions are in addition to any other legal rights the leadpoisoned child may have.

The Massachusetts Lead Law makes it illegal to refuse to rent to families with children under six, or evicting or refusing to renew the lease of families with children under six, because of lead paint. Discrimination against families with young children is also a violation of the U.S. Fair Housing Act and the Massachusetts anti-discrimination statute. Parents cannot waive the rights of their children to live in lead-safe housing or agree to assume to risks of lead exposure. Owners who violate these laws face heavy penalties. The Massachusetts Commission Against Discrimination investigates and prosecutes cases of discrimination against families with children because of lead paint

It is also illegal for lenders to deny financing because a home has lead paint, or because financing could trigger future duties under the Lead Law. This does not restrict the right of a lender to process or deny a mortgage application in accordance with accepted underwriting practices and criteria.

If I am considering buying a pre-1978 house to rent out, and a child under six lives in one of the apartments, should I have at least that unit and common areas inspected for lead now?

Yes. If there are children under six living in such an apartment and the apartment does not have a Letter of Compliance or Letter of Interim Control, buyers should find out whether or not the apartment has lead hazards and will have to be brought into compliance with the state Lead Law. This information will be important in deciding whether to buy the property and at what price. As noted above, new owners have 90 days from the date of taking title to have such an apartment deleaded or brought under interim control. Therefore, they should arrange deleading or interim control work to begin as soon as possible after taking title, to be sure the work is done within 90 days.

A landlord who will be deleading a home or bringing it under interim control may delay the start of the tenancy up to 30 days. This can be done as long as a lease between the landlord and the new tenant does not exist. During this delay period, the new tenants are responsible for their living expenses. If there is a signed lease, however, the landlord is responsible for temporary housing during relocation necessary for deleading work.

Must a landlord arrange temporary housing for a tenant while a rental home is being deleaded?

Under the state Lead Law, tenants have to be relocated for the time that certain deleading work is taking place inside the home. They may not return until that work is done, the home is cleaned up, and a licensed lead inspector or risk assessor checks and finds it is fine for residents to move back in. The landlord and tenant are responsible for working out an acceptable plan for alternative housing if it is necessary. The landlord may move the tenant to another place to live, which may be another house, apartment, motel or hotel. The landlord is responsible for paying the tenant's reasonable moving costs and any temporary housing costs over and above the rent of the home being deleaded. During the time the home is being deleaded, the tenant remains responsible for paying the normal rent they would pay for this period as their share of the cost of temporary housing. The Lead Law states the temporary housing must not cause undue economic or personal hardship to the tenant.

Can I avoid state Lead Law requirements by not renting to a family with children under six?

Can a landlord delay a tenancy to bring a home into compliance with the state Lead Law?

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Are You Planning to Buy or Rent a Home Built Before 1978?

Did you know that many homes built before 1978 have lead-based paint? Lead from paint, chips, and dust can pose serious health hazards.

Read this entire brochure to learn:

• How lead gets into the body

• How lead afects health

• What you can do to protect your family

• Where to go for more information

Before renting or buying a pre-1978 home or apartment, federal law requires:

• Sellers must disclose known information on lead-based paint or leadbased paint hazards before selling a house.

• Real estate sales contracts must include a speciic warning statement about lead-based paint. Buyers have up to 10 days to check for lead.

• Landlords must disclose known information on lead-based paint and lead-based paint hazards before leases take efect. Leases must include a speciic warning statement about lead-based paint.

If undertaking renovations, repairs, or painting (RRP) projects in your pre-1978 home or apartment:

• Read EPA’s pamphlet, The Lead-Safe Certiied Guide to Renovate Right, to learn about the lead-safe work practices that contractors are required to follow when working in your home (see page 12).

Simple Steps to Protect Your Family from Lead Hazards

If you think your home has lead-based paint:

• Don’t try to remove lead-based paint yourself.

• Always keep painted surfaces in good condition to minimize deterioration.

• Get your home checked for lead hazards. Find a certiied inspector or risk assessor at epa.gov/lead

• Talk to your landlord about ixing surfaces with peeling or chipping paint.

• Regularly clean loors, window sills, and other surfaces.

• Take precautions to avoid exposure to lead dust when remodeling.

• When renovating, repairing, or painting, hire only EPA- or stateapproved Lead-Safe certiied renovation irms.

• Before buying, renting, or renovating your home, have it checked for lead-based paint.

• Consult your health care provider about testing your children for lead. Your pediatrician can check for lead with a simple blood test.

• Wash children’s hands, bottles, paciiers, and toys often.

• Make sure children eat healthy, low-fat foods high in iron, calcium, and vitamin C.

• Remove shoes or wipe soil of shoes before entering your house.

Lead Gets into the Body in Many Ways

Adults and children can get lead into their bodies if they:

• Breathe in lead dust (especially during activities such as renovations, repairs, or painting that disturb painted surfaces).

• Swallow lead dust that has settled on food, food preparation surfaces, and other places.

• Eat paint chips or soil that contains lead.

Lead is especially dangerous to children under the age of 6.

• At this age, children’s brains and nervous systems are more sensitive to the damaging efects of lead.

• Children’s growing bodies absorb more lead.

• Babies and young children often put their hands and other objects in their mouths. These objects can have lead dust on them.

Women of childbearing age should know that lead is dangerous to a developing fetus.

• Women with a high lead level in their system before or during pregnancy risk exposing the fetus to lead through the placenta during fetal development.

Health Efects of Lead

Lead afects the body in many ways. It is important to know that even exposure to low levels of lead can severely harm children.

In children, exposure to lead can cause:

• Nervous system and kidney damage

• Learning disabilities, attention-deicit disorder, and decreased intelligence

• Speech, language, and behavior problems

• Poor muscle coordination

• Decreased muscle and bone growth

• Hearing damage

Digestive Problems

While low-lead exposure is most common, exposure to high amounts of lead can have devastating efects on children, including seizures, unconsciousness, and in some cases, death.

Although children are especially susceptible to lead exposure, lead can be dangerous for adults, too.

In adults, exposure to lead can cause:

• Harm to a developing fetus

• Increased chance of high blood pressure during pregnancy

• Fertility problems (in men and women)

• High blood pressure

• Digestive problems

• Nerve disorders

• Memory and concentration problems

• Muscle and joint pain

Hearing Problems

Brain Nerve Damage Slowed Growth

Check Your Family for Lead

Get your children and home tested if you think your home has lead.

Children’s blood lead levels tend to increase rapidly from 6 to 12 months of age, and tend to peak at 18 to 24 months of age.

Consult your doctor for advice on testing your children. A simple blood test can detect lead. Blood lead tests are usually recommended for:

• Children at ages 1 and 2

• Children or other family members who have been exposed to high levels of lead

• Children who should be tested under your state or local health screening plan

Your doctor can explain what the test results mean and if more testing will be needed.

2

Where Lead-Based Paint Is Found

In general, the older your home or childcare facility, the more likely it has lead-based paint.1

Many homes, including private, federally-assisted, federallyowned housing, and childcare facilities built before 1978 have lead-based paint. In 1978, the federal government banned consumer uses of lead-containing paint.2

Learn how to determine if paint is lead-based paint on page 7.

Lead can be found:

• In homes and childcare facilities in the city, country, or suburbs,

• In private and public single-family homes and apartments,

• On surfaces inside and outside of the house, and

• In soil around a home. (Soil can pick up lead from exterior paint or other sources, such as past use of leaded gas in cars.)

Learn more about where lead is found at epa.gov/lead.

1 “Lead-based paint” is currently deined by the federal government as paint with lead levels greater than or equal to 1.0 milligram per square centimeter (mg/cm), or more than 0.5% by weight.

“Lead-containing paint” is currently deined by the federal government as lead in new dried paint in excess of 90 parts per million (ppm) by weight.

Identifying Lead-Based Paint and Lead-Based Paint Hazards

Deteriorating lead-based paint (peeling, chipping, chalking, cracking, or damaged paint) is a hazard and needs immediate attention. Lead-based paint may also be a hazard when found on surfaces that children can chew or that get a lot of wear and tear, such as:

• On windows and window sills

• Doors and door frames

• Stairs, railings, banisters, and porches

Lead-based paint is usually not a hazard if it is in good condition and if it is not on an impact or friction surface like a window.

Lead dust can form when lead-based paint is scraped, sanded, or heated. Lead dust also forms when painted surfaces containing lead bump or rub together. Lead paint chips and dust can get on surfaces and objects that people touch. Settled lead dust can reenter the air when the home is vacuumed or swept, or when people walk through it. EPA currently deines the following levels of lead in dust as hazardous:

• 40 micrograms per square foot (μg/ft2) and higher for loors, including carpeted loors

• 250 μg/ft2 and higher for interior window sills

Lead in soil can be a hazard when children play in bare soil or when people bring soil into the house on their shoes. EPA currently deines the following levels of lead in soil as hazardous:

• 400 parts per million (ppm) and higher in play areas of bare soil

• 1,200 ppm (average) and higher in bare soil in the remainder of the yard

Remember, lead from paint chips—which you can see—and lead dust—which you may not be able to see—both can be hazards.

The only way to ind out if paint, dust, or soil lead hazards exist is to test for them. The next page describes how to do this. 6 rcig"33:

Checking Your Home for Lead

You can get your home tested for lead in several diferent ways:

• A lead-based paint inspection tells you if your home has leadbased paint and where it is located. It won’t tell you whether your home currently has lead hazards. A trained and certiied testing professional, called a lead-based paint inspector, will conduct a paint inspection using methods, such as:

• Portable x-ray luorescence (XRF) machine

• Lab tests of paint samples

• A risk assessment tells you if your home currently has any lead hazards from lead in paint, dust, or soil. It also tells you what actions to take to address any hazards. A trained and certiied testing professional, called a risk assessor, will:

• Sample paint that is deteriorated on doors, windows, loors, stairs, and walls

• Sample dust near painted surfaces and sample bare soil in the yard

• Get lab tests of paint, dust, and soil samples

• A combination inspection and risk assessment tells you if your home has any lead-based paint and if your home has any lead hazards, and where both are located.

Be sure to read the report provided to you after your inspection or risk assessment is completed, and ask questions about anything you do not understand.

Checking Your Home for Lead, continued

In preparing for renovation, repair, or painting work in a pre-1978 home, Lead-Safe Certiied renovators (see page 12) may:

• Take paint chip samples to determine if lead-based paint is present in the area planned for renovation and send them to an EPA-recognized lead lab for analysis. In housing receiving federal assistance, the person collecting these samples must be a certiied lead-based paint inspector or risk assessor

• Use EPA-recognized tests kits to determine if lead-based paint is absent (but not in housing receiving federal assistance)

• Presume that lead-based paint is present and use lead-safe work practices

There are state and federal programs in place to ensure that testing is done safely, reliably, and efectively. Contact your state or local agency for more information, visit epa.gov/lead, or call 1-800-424-LEAD (5323) for a list of contacts in your area.3

3 Hearing- or speech-challenged individuals may access this number through TTY by calling the Federal Relay Service at 1-800-877-8339.

What You Can Do Now to Protect Your Family

If you suspect that your house has lead-based paint hazards, you can take some immediate steps to reduce your family’s risk:

• If you rent, notify your landlord of peeling or chipping paint.

• Keep painted surfaces clean and free of dust. Clean loors, window frames, window sills, and other surfaces weekly. Use a mop or sponge with warm water and a general all-purpose cleaner. (Remember: never mix ammonia and bleach products together because they can form a dangerous gas.)

• Carefully clean up paint chips immediately without creating dust.

• Thoroughly rinse sponges and mop heads often during cleaning of dirty or dusty areas, and again afterward.

• Wash your hands and your children’s hands often, especially before they eat and before nap time and bed time.

• Keep play areas clean. Wash bottles, paciiers, toys, and stufed animals regularly.

• Keep children from chewing window sills or other painted surfaces, or eating soil.

• When renovating, repairing, or painting, hire only EPA- or stateapproved Lead-Safe Certiied renovation irms (see page 12).

• Clean or remove shoes before entering your home to avoid tracking in lead from soil.

• Make sure children eat nutritious, low-fat meals high in iron, and calcium, such as spinach and dairy products. Children with good diets absorb less lead.

Reducing Lead Hazards

Disturbing lead-based paint or removing lead improperly can increase the hazard to your family by spreading even more lead dust around the house.

• In addition to day-to-day cleaning and good nutrition, you can temporarily reduce lead-based paint hazards by taking actions, such as repairing damaged painted surfaces and planting grass to cover leadcontaminated soil. These actions are not permanent solutions and will need ongoing attention.

• You can minimize exposure to lead when renovating, repairing, or painting by hiring an EPA- or statecertiied renovator who is trained in the use of lead-safe work practices. If you are a do-it-yourselfer, learn how to use lead–safe work practices in your home.

• To remove lead hazards permanently, you should hire a certiied lead abatement contractor. Abatement (or permanent hazard elimination) methods include removing, sealing, or enclosing lead-based paint with special materials. Just painting over the hazard with regular paint is not permanent control.

Always use a certiied contractor who is trained to address lead hazards safely.

• Hire a Lead-Safe Certiied irm (see page 12) to perform renovation, repair, or painting (RRP) projects that disturb painted surfaces.

• To correct lead hazards permanently, hire a certiied lead abatement professional. This will ensure your contractor knows how to work safely and has the proper equipment to clean up thoroughly.

Certiied contractors will employ qualiied workers and follow strict safety rules as set by their state or by the federal government.

Reducing Lead Hazards, continued

If your home has had lead abatement work done or if the housing is receiving federal assistance, once the work is completed, dust cleanup activities must be conducted until clearance testing indicates that lead dust levels are below the following levels:

• 40 micrograms per square foot (μg/ft2) for loors, including carpeted loors

• 250 μg/ft2 for interior windows sills

• 400 μg/ft2 for window troughs

For help in locating certiied lead abatement professionals in your area, call your state or local agency (see pages 14 and 15), or visit epa.gov/lead, or call 1-800-424-LEAD.

Renovating, Repairing or Painting a Home with Lead-Based Paint

If you hire a contractor to conduct renovation, repair, or painting (RRP) projects in your pre-1978 home or childcare facility (such as pre-school and kindergarten), your contractor must:

• Be a Lead-Safe Certiied irm approved by EPA or an EPA-authorized state program

• Use qualiied trained individuals (Lead-Safe Certiied renovators) who follow speciic lead-safe work practices to prevent lead contamination

• Provide a copy of EPA’s lead hazard information document, The Lead-Safe Certiied Guide to Renovate Right

RRP contractors working in pre-1978 homes and childcare facilities must follow lead-safe work practices that:

• Contain the work area. The area must be contained so that dust and debris do not escape from the work area. Warning signs must be put up, and plastic or other impermeable material and tape must be used.

• Avoid renovation methods that generate large amounts of lead-contaminated dust. Some methods generate so much leadcontaminated dust that their use is prohibited. They are:

• Open-lame burning or torching

• Sanding, grinding, planing, needle gunning, or blasting with power tools and equipment not equipped with a shroud and HEPA vacuum attachment

• Using a heat gun at temperatures greater than 1100°F

• Clean up thoroughly. The work area should be cleaned up daily. When all the work is done, the area must be cleaned up using special cleaning methods.

• Dispose of waste properly. Collect and seal waste in a heavy duty bag or sheeting. When transported, ensure that waste is contained to prevent release of dust and debris.

To learn more about EPA’s requirements for RRP projects, visit epa.gov/getleadsafe, or read The Lead-Safe Certiied Guide to Renovate Right. 12 rcig"346

Other Sources of Lead

Lead in Drinking Water

The most common sources of lead in drinking water are lead pipes, faucets, and ixtures.

Lead pipes are more likely to be found in older cities and homes built before 1986.

You can’t smell or taste lead in drinking water.

To ind out for certain if you have lead in drinking water, have your water tested.

Remember older homes with a private well can also have plumbing materials that contain lead.

Important Steps You Can Take to Reduce Lead in Drinking Water

• Use only cold water for drinking, cooking and making baby formula. Remember, boiling water does not remove lead from water.

• Before drinking, lush your home’s pipes by running the tap, taking a shower, doing laundry, or doing a load of dishes.

• Regularly clean your faucet’s screen (also known as an aerator).

• If you use a ilter certiied to remove lead, don’t forget to read the directions to learn when to change the cartridge. Using a ilter after it has expired can make it less efective at removing lead.

Contact your water company to determine if the pipe that connects your home to the water main (called a service line) is made from lead. Your area’s water company can also provide information about the lead levels in your system’s drinking water.

For more information about lead in drinking water, please contact EPA’s Safe Drinking Water Hotline at 1-800-426-4791. If you have other questions about lead poisoning prevention, call 1-800 424-LEAD.*

Call your local health department or water company to ind out about testing your water, or visit epa.gov/safewater for EPA’s lead in drinking water information. Some states or utilities ofer programs to pay for water testing for residents. Contact your state or local water company to learn more.

* Hearing- or speech-challenged individuals may access this number through TTY by calling the Federal Relay Service at 1-800-877-8339. rckf"347

Other Sources of Lead, continued

• Lead smelters or other industries that release lead into the air.

• Your job. If you work with lead, you could bring it home on your body or clothes. Shower and change clothes before coming home. Launder your work clothes separately from the rest of your family’s clothes.

• Hobbies that use lead, such as making pottery or stained glass, or reinishing furniture. Call your local health department for information about hobbies that may use lead.

• Old toys and furniture may have been painted with lead-containing paint. Older toys and other children’s products may have parts that contain lead.4

• Food and liquids cooked or stored in lead crystal or lead-glazed pottery or porcelain may contain lead.

• Folk remedies, such as “greta” and “azarcon,” used to treat an upset stomach.

4 In 1978, the federal government banned toys, other children’s products, and furniture with lead-containing paint. In 2008, the federal government banned lead in most children’s products. The federal government currently bans lead in excess of 100 ppm by weight in most children’s products.

For More Information

The National Lead Information Center

Learn how to protect children from lead poisoning and get other information about lead hazards on the Web at epa.gov/lead and hud.gov/lead, or call 1-800-424-LEAD (5323).

EPA’s Safe Drinking Water Hotline

For information about lead in drinking water, call 1-800-426-4791, or visit epa.gov/safewater for information about lead in drinking water.

Consumer Product Safety Commission (CPSC) Hotline

For information on lead in toys and other consumer products, or to report an unsafe consumer product or a product-related injury, call 1-800-638-2772, or visit CPSC’s website at cpsc.gov or saferproducts.gov

State and Local Health and Environmental Agencies

Some states, tribes, and cities have their own rules related to leadbased paint. Check with your local agency to see which laws apply to you. Most agencies can also provide information on inding a lead abatement irm in your area, and on possible sources of inancial aid for reducing lead hazards. Receive up-to-date address and phone information for your state or local contacts on the Web at epa.gov/lead, or contact the National Lead Information Center at 1-800-424-LEAD.

Hearing- or speech-challenged individuals may access any of the phone numbers in this brochure through TTY by calling the tollfree Federal Relay Service at 1-800-877-8339.

U. S. Environmental Protection Agency (EPA) Regional Oices

The mission of EPA is to protect human health and the environment. Your Regional EPA Oice can provide further information regarding regulations and lead protection programs.

Region 1 (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, Vermont)

Regional Lead Contact

U.S. EPA Region 1

5 Post Oice Square, Suite 100, OES 05-4 Boston, MA 02109-3912 (888) 372-7341

Region 2 (New Jersey, New York, Puerto Rico, Virgin Islands)

Regional Lead Contact

U.S. EPA Region 2 2890 Woodbridge Avenue Building 205, Mail Stop 225 Edison, NJ 08837-3679 (732) 321-6671

Region 3 (Delaware, Maryland, Pennsylvania, Virginia, DC, West Virginia)

Regional Lead Contact U.S. EPA Region 3 1650 Arch Street Philadelphia, PA 19103 (215) 814-2088

Region 4 (Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee)

Regional Lead Contact U.S. EPA Region 4

AFC Tower, 12th Floor, Air, Pesticides & Toxics 61 Forsyth Street, SW Atlanta, GA 30303 (404) 562-8998

Region 5 (Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin)

Regional Lead Contact

U.S. EPA Region 5 (DT-8J)

77 West Jackson Boulevard Chicago, IL 60604-3666 (312) 886-7836

Region 6 (Arkansas, Louisiana, New Mexico, Oklahoma, Texas, and 66 Tribes)

Regional Lead Contact

U.S. EPA Region 6 1445 Ross Avenue, 12th Floor Dallas, TX 75202-2733 (214) 665-2704

Region 7 (Iowa, Kansas, Missouri, Nebraska)

Regional Lead Contact U.S. EPA Region 7 11201 Renner Blvd. WWPD/TOPE Lenexa, KS 66219 (800) 223-0425

Region 8 (Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming)

Regional Lead Contact U.S. EPA Region 8 1595 Wynkoop St. Denver, CO 80202 (303) 312-6966

Region 9 (Arizona, California, Hawaii, Nevada)

Regional Lead Contact U.S. EPA Region 9 (CMD-4-2) 75 Hawthorne Street San Francisco, CA 94105 (415) 947-4280

Region 10 (Alaska, Idaho, Oregon, Washington)

Regional Lead Contact

U.S. EPA Region 10 Solid Waste & Toxics Unit (WCM-128) 1200 Sixth Avenue, Suite 900 Seattle, WA 98101 (206) 553-1200 16 rcig"34:

Consumer Product Safety Commission (CPSC)

The CPSC protects the public against unreasonable risk of injury from consumer products through education, safety standards activities, and enforcement. Contact CPSC for further information regarding consumer product safety and regulations.

CPSC 4330 East West Highway Bethesda, MD 20814-4421 1-800-638-2772 cpsc.gov or saferproducts.gov

U. S. Department of Housing and Urban Development (HUD)

HUD’s mission is to create strong, sustainable, inclusive communities and quality afordable homes for all. Contact

HUD’s Oice of Healthy Homes and Lead Hazard Control for further information regarding the Lead Safe Housing Rule, which protects families in pre-1978 assisted housing, and for the lead hazard control and research grant programs.

HUD

451 Seventh Street, SW, Room 8236 Washington, DC 20410-3000 (202) 402-7698 hud.gov/oices/lead/ June 2017

This document is in the public domain. It may be produced by an individual or organization without permission. Information provided in this booklet is based upon current scientiic and technical understanding of the issues presented and is relective of the jurisdictional boundaries established by the statutes governing the co-authoring agencies. Following the advice given will not necessarily provide complete protection in all situations or against all health hazards that can be caused by lead exposure.

U. S. EPA Washington DC 20460 U. S. CPSC Bethesda MD 20814 U. S. HUD Washington DC 20410

EPA-747-K-12-001

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IMPORTANT!

Lead From Paint, Dust, and Soil in and Around Your Home Can Be Dangerous if Not Managed Properly

• Children under 6 years old are most at risk for lead poisoning in your home.

• Lead exposure can harm young children and babies even before they are born.

• Homes, schools, and child care facilities built before 1978 are likely to contain lead-based paint.

• Even children who seem healthy may have dangerous levels of lead in their bodies.

• Disturbing surfaces with lead-based paint or removing lead-based paint improperly can increase the danger to your family.

• People can get lead into their bodies by breathing or swallowing lead dust, or by eating soil or paint chips containing lead.

• People have many options for reducing lead hazards. Generally, lead-based paint that is in good condition is not a hazard (see page 10).

United States Environmental Protection Agency

Office of Pollution Prevention and Toxics(7404)

Lead Poisoning Fight

EPA-747-F-01-004 November 2001 with a Healthy Diet

Lead Poisoning Prevention Tips for Families

Lead and a Healthy Diet

WhatYouCanDotoProtectYourChild

Lead’sEffectsontheBody

Lead is a poisonous metal that our bodies cannot use. Lead poisoning can cause learning, hearing, and behavioral problems, and can harm your child’s brain, kidneys, and other organs. Lead in the body stops good minerals such as iron and calcium from working right. Some of these effects may be permanent.

LeadAwarenessand YourChild

Children with lead poisoning usually do not look or act sick. The only way to know if your child has lead poisoning is by getting a blood test.

Ask your doctor or health care provider to test your child under six years of age at least once a year.

Lead Hazards

WhereisLeadFound?

MainSourcesofLead

Lead-based paint is a hazard if it is peeling, chipping, chalking, or cracking. Even lead-based paint that appears to be undisturbed can be a problem if it is on surfaces that children chew or that get a lot of wear and tear. The older your home is, the more likely it is to contain lead-based paint.

Contaminated dust forms when lead paint is dryscraped or sanded. Dust can also become contaminated when painted surfaces bump or rub together. Lead chips and dust can gather on surfaces and objects that people touch or that children put into their mouths.

Contaminated soil occurs when exterior lead-based paint from houses, buildings, or other structures flakes or peels and gets into the soil. Soil near roadways may also be contaminated from past use of leaded gasoline in cars. Avoid these areas when planting vegetable gardens.

OtherSourcesofLead

Contaminated drinking water from older plumbing fixtures

Lead-based painted toys and household furniture Imported lead-glazed pottery and leaded crystal

Lead smelters

Hobbies

Folk remedies like azarcon and pay-loo-ah Cosmetics like kohl and kajal

Meal and Snack Ideas

Oatmeal Swirlers

· Makes 4–6 servings

1 1/2 cups of quick cooking oats

1/3 cup of peanut butter

1/3 cup of fruit jelly or jam

Steps:

• Follow the package directions to cook oats.

• Spoon peanut butter and jelly on top of cooked oatmeal.

• Stir and spoon into bowls.

• Serve with low-fat milk.

Cheese Omelet · Makes 2–3 servings

3 eggs

1 tablespoon of low-fat milk

Vegetable oil

3 tablespoons of cheese

Steps:

• Mix eggs and milk in a bowl.

• Lightly coat pan with vegetable oil. Use medium heat.

• Add egg mixture and cook.

• When omelet is cooked on the bottom, add cheese.

• When cheese is melted, fold omelet in half.

• Top with salsa if you like.

• Serve with toast, fruit, and low-fat milk.

French Toast · Makes 4–6 servings

3 eggs, beaten 1/2 cup of low-fat milk

Vegetable oil 6 slices of bread Cinnamon 2 bananas, sliced Steps:

• Mix eggs and milk.

• Lightly coat pan with vegetable oil. Use medium heat.

• Dip bread into egg mixture, so that bread is covered.

• Brown one side of bread in pan.

• Sprinkle top with cinnamon.

• Turn over bread and brown the other side. Top with sliced banana.

• Serve with low-fat milk.

Grilled Cheese & Tomato

Sandwich · Makes 1 serving

2 slices of bread

2 slices of American cheese

1 slice of tomato

Vegetable oil

Steps:

• Make sandwich using bread, cheese, and tomato.

• Lightly coat pan with vegetable oil.

• Brown sandwich on both sides over low heat to melt the cheese.

• Serve with low-fat milk or fruit juice.

Tuna Salad Sandwich · Makes 2 servings

4 slices of bread

1 can of water packed tuna

4 teaspoons of low-fat mayonnaise Onion and celery, chopped

Steps:

• Mix tuna with low-fat mayonnaise, onion, and celery.

• Try your sandwich with cheese and tomato.

• Serve with low-fat milk.

Pizza Bagels · Makes 2–3 servings

1 bagel

2 tablespoons of tomato sauce Garlic, basil, or oregano

2 tablespoons of cheddar cheese or part-skim mozzarella

Steps:

• Preheat oven to 400 degrees.

• Slice open a bagel and place on a flat pan.

• Add tomato sauce, seasonings, and cheese.

• Bake for 3 minutes or until cheese melts.

• Serve with fruit juice.

Sloppy

Joes

· Makes 4–6 servings

1 pound of lean ground beef, turkey, or chicken

1 small onion, chopped 1/2 green pepper, chopped

1 cup of tomato sauce

Your choice of seasonings 5 hamburger buns or pita pocket breads

Steps:

• In a pan, cook lean ground meat, onion, and green pepper until meat is well done.

• Drain fat.

• Stir in tomato sauce and seasonings.

• Cook for 5 to 10 minutes.

• Spoon into hamburger bun or pita.

• Serve with fruit juice.

Baked Macaroni

and Cheese· Makes 3–5 servings

4 cups of cooked macaroni 3 cups of grated cheddar cheeseVegetable oil 2 tablespoons of margarine2 cups of low-fat milk 2 tablespoons of flourSalt and pepper

Steps:

• Preheat oven to 375 degrees. Lightly coat casserole dish with vegetable oil.

• Mix cooked macaroni with grated cheese and pour into casserole.

• Melt margarine in a pan. Remove from heat, stir in flour. Return to heat.

• Add low-fat milk slowly, stirring until smooth.

• Season with salt and pepper to taste.

• Pour over macaroni. Stir.

• Cover. Bake for 30 minutes.

• Uncover and bake for another 15 minutes.

RegularlyEatHealthyFoods

Children with empty stomachs absorb more lead than children with full stomachs. Provide your child with four to six small meals during the day. The following nutrients can help protect your child from lead poisoning:

Iron-Rich Foods

Normal levels of iron work to protect the body from the harmful effects of lead. Good sources of dietary iron include:

Lean red meats, fish, and chicken

Iron-fortified cereals

Dried fruits (raisins, prunes)

Calcium-Rich Foods

Calcium reduces lead absorption and also helps make teeth and bones strong. Good sources of dietary calcium include: Milk

Yogurt

Cheese

Green leafy vegetables (spinach, kale, collard greens)

Vitamin C-Rich Foods

Vitamin C and iron-rich foods work together to reduce lead absorption. Good sources of vitamin C include:

Oranges, orange juice

Grapefruits, grapefruit juice

Tomatoes, tomato juice

Green peppers

Simple Steps You Can Take toProtectYourFamilyfromLeadHazards

Ifyouthinkyourhomehashighlevelsoflead:

• Make sure your children eat healthy, low-fat foods high in iron, calcium, and vitamin C.

• Get your children tested for lead, even if they seem healthy.

• Get your home tested for lead if it was built before 1978. Call 1-800-424-LEAD for more information.

• Always wash your hands before eating.

• Wash children’s hands, bottles, pacifiers, and toys.

• Do not use imported pottery to store or serve food.

• Let tap water run for one minute before using.

• Use only cold water for making your baby’s formula, drinking, and cooking.

• Regularly clean floors, windowsills, and other surfaces using wet methods that control dust.

• Wipe or remove shoes before entering your house.

• If you rent, it is your landlord’s job to keep paint in good shape. Report peeling or chipping paint to your landlord and call your health department if the paint is not repaired safely.

• Take precautions to avoid exposure to lead dust when remodeling or renovating.

• Don’t try to remove paint yourself!

Call

• Your child’s pediatrician

• The National Lead Information Center 1-800-424-LEAD (424-5323)

• U.S. Environmental Protection Agency’s (EPA) Safe Drinking Water Hotline 1-800-426-4791

Visit

• EPA Lead Program Web site www.epa.gov/lead

• U.S. Centers for Disease Control and Prevention (CDC) Web site www.cdc.gov/nceh/lead

• U.S. Department of Housing and Urban Development (HUD) Web site www.hud.gov/offices/lead

EPA 402-K-02-003 (Reprinted 09/201 )

This Guide provides information and guidance for homeowners and renters on how to clean up residential mold problems and how to prevent mold growth.

U.S. Environmental Protection Agency Office of Air and Radiation Indoor Environments Division 1200 Pennsylvania Avenue, N. W. Mailcode: 6609J Washington, DC 20460 www.epa.gov/iaq

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A BRIEF GUIDE TO MOLD, MOISTURE, AND YOUR HOME

Contents Page

Mold Basics

Whyismoldgrowinginmyhome? 2 Canmoldcausehealthproblems? 2 HowdoIgetridofmold? 3

Mold Cleanup

Whoshoulddothecleanup? 4

Mold Cleanup Guidelines 6

What to Wear When Cleaning Moldy Areas 8 How Do I Know When the Remediation or Cleanup is Finished? 9

Moisture and Mold Prevention and Control Tips 10 Actionsthatwillhelptoreducehumidity 11 Actionsthatwillhelppreventcondensation 12 Testingorsamplingformold 13

Hidden Mold 14

Cleanup and Biocides 15

Additional Resources 16

MOLD BASICS

p"""The key to mold control is moisture control.

p If mold is a problem in your home, you should clean up the mold promptly and fix the water problem.

p It is important to dry water-damaged areas and items within 24-48 hours to prevent mold growth.

Y"""

Mold growing outdoors on firewood. Molds come in many colors; both white and black molds are shown here.

hy is mold growing in my home? Molds are part of the natural environment. Outdoors, molds play a part in nature by breaking down dead organic matter such as fallen leaves and dead trees, but indoors, mold growth should be avoided. Molds reproduce by means of tiny spores; the spores are invisible to the naked eye and float through outdoor and indoor air. Mold may begin growing indoors when mold spores land on surfaces that are wet. There are many types of mold, and none of them will grow without water or moisture.

Can mold cause health problems? Molds are usually not a problem indoors, unless mold spores land on a wet or damp spot and begin growing. Molds have the potential to cause health problems. Molds produce allergens (substances that can cause allergic reactions), irritants, and in some cases, potentially toxic substances (mycotoxins).

Inhaling or touching mold or mold spores may cause allergic reactions in sensitive individuals. Allergic responses include hay fever-type symptoms, such as sneezing, runny nose, red eyes, and skin rash (dermatitis). Allergic reactions to mold are common. They can be immediate or delayed. Molds can also cause asthma attacks in people with asthma who are allergic to mold. In addition, mold exposure can irritate the eyes, skin, nose, throat, and lungs of both mold-

allergic and non-allergic people. Symptoms other than the allergic and irritant types are not commonly reported as a result of inhaling mold.

Research on mold and health effects is ongoing. This brochure provides a brief overview; it does not describe all potential health effects related to mold exposure. For more detailed information consult a health professional. You may also wish to consult your state or local health department.

How do I get rid of mold? It is impossible to get rid of all mold and mold spores indoors; some mold spores will be found floating through the air and in house dust. The mold spores will not grow if moisture is not present. Indoor mold growth can and should be prevented or controlled by controlling moisture indoors. If there is mold growth in your home, you must clean up the mold and fix the water problem. If you clean up the mold, but don’t fix the water problem, then, most likely, the mold problem will come back.

Magnified mold spores.

Molds can gradually destroy the things they grow on. You can prevent damage to your home and furnishings, save money, and avoid potential health problems by controlling moisture and eliminating mold growth.

Mold

cleaNuP

Leaky window – mold is beginning to rot the wooden frame and windowsill.

do the

depends on a number of factors. One consideration is the size of the mold problem. If the moldy area is less than about 10 square feet (less than roughly a 3 ft. by 3 ft. patch), in most cases, you can handle the job yourself, following the guidelines below. However:

■ If there has been a lot of water damage, and/or mold growth covers more than 10 square feet, consult the U.S. Environmental Protection Agency (EPA) guide: Mold Remediation in Schools and Commercial Buildings. Although focused on schools and commercial

Who should do the cleanup? Who should

cleanup

If you already have a mold problem –act QuicKlY. Mold damages what it grows on. The longer it grows, the more damage it can cause.

buildings, this document is applicable to other building types. It is available on the Internet at: www. epa.gov/mold.

■ If you choose to hire a contractor (or other professional service provider) to do the cleanup, make sure the contractor has experience cleaning up mold. Check references and ask the contractor to follow the recommendations in EPA’s Mold Remediation in Schools and Commercial Buildings, the guidelines of the American Conference of Governmental Industrial Hygenists (ACGIH), or other guidelines from professional or government organizations.

■ If you suspect that the heating/ventilation/air conditioning (HVAC) system may be contaminated with mold (it is part of an identiied moisture problem, for instance, or there is mold near the intake to the system), consult EPA’s guide Should You Have the Air Ducts in Your Home Cleaned? before taking further action. Do not run the HVAC system if you know or suspect that it is contaminated with mold - it could spread mold throughout the building. Visit www.epa. gov/iaq/pubs to download a copy of the EPA guide.

■ If the water and/or mold damage was caused by sewage or other contaminated water, then call in a professional who has experience cleaning and ixing buildings damaged by contaminated water.

■ If you have health concerns, consult a health professional before starting cleanup.

Mold cleaNuP Guidelines

Bathroom Tip

Places that are often or always damp can be hard to maintain completely free of mold. If there’s some mold in the shower or elsewhere in the bathroom that seems to reappear, increasing the ventilation (running a fan or opening a window) and cleaning more frequently will usually prevent mold from recurring, or at least keep the mold to a minimum.

tips and techniques The tips and techniques presented in this section will help you clean up your mold problem. Professional cleaners or remediators may use methods not covered in this publication. Please note that mold may cause staining and cosmetic damage. It may not be possible to clean an item so that its original appearance is restored.

■ Fix plumbing leaks and other water problems as soon as possible. Dry all items completely.

■ Scrub mold of hard surfaces with detergent and water, and dry completely.

Mold growing on the underside of a plastic lawnchair in an area where rainwater drips through and deposits organic material.

Mold growing on a piece of ceiling tile.

■ Absorbent or porous materials, such as ceiling tiles and carpet, may have to be thrown away if they become moldy. Mold can grow on or ill in the empty spaces and crevices of porous materials, so the mold may be diicult or impossible to remove completely.

■ Avoid exposing yourself or others to mold (see discussions: What to Wear When Cleaning Moldy Areas and Hidden Mold.)

■ Do not paint or caulk moldy surfaces. Clean up the mold and dry the surfaces before painting. Paint applied over moldy surfaces is likely to peel.

■ If you are unsure about how to clean an item, or if the item is expensive or of sentimental value, you may wish to consult a specialist. Specialists in furniture repair, restoration, painting, art restoration and conservation, carpet and rug cleaning, water damage, and ire or water restoration are commonly listed in phone books. Be sure to ask for and check references. Look for specialists who are ailiated with professional organizations.

What to Wear When cleaNiNG

Moldy areas

Mold growing on a suitcase stored in a humid basement.

■ Avoid breathing in mold or mold spores. In order to limit your exposure to airborne mold, you may want to wear an N-95 respirator, available at many hardware stores and from companies that advertise on the Internet. (They cost about $12 to $25.) Some N-95 respirators resemble a paper dust mask with a nozzle on the front, others are made primarily of plastic or rubber and have removable cartridges that trap most of the mold spores from entering. In order to be efective, the respirator or mask must it properly, so carefully follow the instructions supplied with the respirator. Please note that the Occupational Safety and Health Administration (OSHA) requires that respirators it properly (it testing) when used in an occupational setting; consult OSHA for more information (800-321-OSHA or osha.gov/).

It is important to take precautions to liMit Your eXPosure to mold and mold spores.

■ Wear gloves. Long gloves that extend to the middle of the forearm are recommended. When working with water and a mild detergent, ordinary household rubber gloves may be used. If you are using a disinfectant, a biocide such as chlorine bleach, or a strong cleaning solution, you should select gloves made from natural rubber, neoprene, nitrile, polyurethane, or PVC (see Cleanup and Biocides). Avoid touching mold or moldy items with your bare hands.

■ Wear goggles. Goggles that do not have ventilation holes are recommended. Avoid getting mold or mold spores in your eyes.

Cleaning while wearing N-95 respirator, gloves, and goggles.

How do i know when the remediation or cleanup is inished? You must have completely ixed the water or moisture problem before the cleanup or remediation can be considered inished.

■ You should have completed mold removal. Visible mold and moldy odors should not be present. Please note that mold may cause staining and cosmetic damage.

■ You should have revisited the site(s) shortly after cleanup and it should show no signs of water damage or mold growth.

■ People should have been able to occupy or re-occupy the area without health complaints or physical symptoms.

■ Ultimately, this is a judgment call; there is no easy answer.

Moisture and Mold PreVeNtioN and control tips Moisture Control is the Key to Mold Control

■ When water leaks or spills occur indoors - ACT QUICKLY.

If wet or damp materials or areas are dried 24-48 hours after a leak or spill happens, in most cases mold will not grow.

Mold growing on the surface of a unit ventilator.

■ Clean and repair roof gutters regularly.

■ Make sure the ground slopes away from the building foundation, so that water does not enter or collect around the foundation.

■ Keep air conditioning drip pans clean and the drain lines unobstructed and lowing properly.

Condensation on the inside of a windowpane.

■ Keep indoor humidity low. If possible, keep indoor humidity below 60 percent (ideally between 30 and 50 percent) relative humidity. Relative humidity can be measured with a moisture or humidity meter, a small, inexpensive ($10-$50) instrument available at many hardware stores.

■ If you see condensation or moisture collecting on windows, walls or pipes - ACT QUICKLY to dry the wet surface and reduce the moisture/water source. Condensation can be a sign of high humidity.

Actions that will help to reduce humidity:

 Vent appliances that produce moisture, such as clothes dryers, stoves, and kerosene heaters to the outside where possible. (Combustion appliances such as stoves and kerosene heaters produce water vapor and will increase the humidity unless vented to the outside.)

 Use air conditioners and/or de-humidiiers when needed.

 Run the bathroom fan or open the window when showering. Use exhaust fans or open windows whenever cooking, running the dishwasher or dishwashing, etc.

Actions that will help prevent condensation:

 Reduce the humidity (see preceeding page).

 Increase ventilation or air movement by opening doors and/or windows, when practical. Use fans as needed.

 Cover cold surfaces, such as cold water pipes, with insulation.

 Increase air temperature.

Mold growing on a wooden headboard in a room with high humidity.

renters: Report all plumbing leaks and moisture problems immediately to your building owner, manager, or superintendent. In cases where persistent water problems are not addressed, you may want to contact local, state, or federal health or housing authorities.

Rust is an indicator that condensation occurs on this drainpipe. The pipe should be insulated to prevent condensation.

testing or sampling for mold Is sampling for mold needed? In most cases, if visible mold growth is present, sampling is unnecessary. Since no EPA or other federal limits have been set for mold or mold spores, sampling cannot be used to check a building’s compliance with federal mold standards. Surface sampling may be useful to determine if an area has been adequately cleaned or remediated. Sampling for mold should be conducted by professionals who have speciic experience in designing mold sampling protocols, sampling methods, and interpreting results. Sample analysis should follow analytical methods recommended by the American Industrial Hygiene Association (AIHA), the American Conference of Governmental Industrial Hygienists (ACGIH), or other professional organizations.

hidden Mold

Mold growing on the back side of wallpaper.

suspicion of hidden mold You may suspect hidden mold if a building smells moldy, but you cannot see the source, or if you know there has been water damage and residents are reporting health problems. Mold may be hidden in places such as the back side of dry wall, wallpaper, or paneling, the top side of ceiling tiles, the underside of carpets and pads, etc. Other possible locations of hidden mold include areas inside walls around pipes (with leaking or condensing pipes), the surface of walls behind furniture (where condensation forms), inside ductwork, and in roof materials above ceiling tiles (due to roof leaks or insuicient insulation).

investigating hidden mold problems

Investigating hidden mold problems may be diicult and will require caution when the investigation involves disturbing potential sites of mold growth. For example, removal of wallpaper can lead to a massive release of spores if there is mold growing on the underside of the paper. If you believe that you may have a hidden mold problem, consider hiring an experienced professional.

cleanup

and Biocides

Biocides are substances that can destroy living organisms. The use of a chemical or biocide that kills organisms such as mold (chlorine bleach, for example) is not recommended as a routine practice during mold cleanup. There may be instances, however, when professional judgment may indicate its use (for example, when immune-compromised individuals are present). In most cases, it is not possible or desirable to sterilize an area; a background level of mold spores will remain - these spores will not grow if the moisture problem has been resolved. If you choose to use disinfectants or biocides, always ventilate the area and exhaust the air to the outdoors. Never mix chlorine bleach solution with other cleaning solutions or detergents that contain ammonia because toxic fumes could be produced.

Please note: Dead mold may still cause allergic reactions in some people, so it is not enough to simply kill the mold, it must also be removed.

Water stain on a basement wall — locate and ix the source of the water promptly.

additional resources

For more information on mold related issues including mold cleanup and moisture control/condensation/ humidity issues, visit: www.epa.gov/mold

Mold growing on fallen leaves.

This document is available on the Environmental Protection Agency, Indoor Environments Division website at: www.epa.gov/mold

OVERVIEW

Radonis a cancer-causing,radioactive gas.

You can’t see radon. And you can’t smell it or taste it. But it may be a problem in your home.

Radon is estimated to cause many thousands of deaths each year. That’s because when you breathe air containing radon, you can get lung cancer. In fact, the Surgeon General has warned that radon is the second leading cause of lung cancer in the United States today. Only smoking causes more lung cancer deaths. If you smoke and your home has high radon levels, your risk of lung cancer is especially high.

Radon can be found all over the U.S.

Radon comes from the natural (radioactive) breakdown of uranium in soil, rock and water and gets into the air you breathe. Radon can be found all over the U.S. It can get into any type of building homes, offices, and schools and result in a high indoor radon level. But you and your family are most likely to get your greatest exposure at home, where you spend most of your time.

Youshouldtestforradon.

Testing is the only way to know if you and your family are at risk from radon. EPA and the Surgeon General recommend testing all homes below the third floor for radon. EPA also recommends testing in schools. Testing is inexpensive and easy it should only take a few minutes of your time. Millions of Americans have already tested their homes for radon (see page 5).

Radon reduction systems work and they are not too costly. Some radon reduction systems can reduce radon levels in your home by up to 99%. Even very high levels can be reduced to acceptable levels.

New homes can be built with radon-resistant features.

Radon resistant construction techniques can be effective in preventing radon entry. When installed properly and completely, these simple and inexpensive techniques can help reduce indoor radon levels in homes. In addition, installing them at the time of construction makes it easier and less expensive to reduce radon levels further if these passive techniques don’t reduce radon levels to below 4 pCi/L. Every new home should be tested after occupancy, even if it was built radonresistant. If radon levels are still in excess of 4 pCi/L, the passive system should be activated by having a qualified mitigator install a vent fan. For more explanation of radon resistant construction techniques, refer to EPA publication, Building Radon Out: A Step by Step Guide on How to Build Radon Resistant Homes (see page 15).

Youcan fix a radon problem.

Anyhomemay have a radon problem.

Radon is a radioactive gas. It comes from the natural decay of uranium that is found in nearly all soils. It typically moves up through the ground to the air above and into your home through cracks and other holes in the foundation. Your home traps radon inside, where it can build up. Any home may have a radon problem. This means new and old homes, wellsealed and drafty homes, and homes with or without basements.

Radon from soil gas is the main cause of radon problems. Sometimes radon enters the home through well water (see page 8). In a small number of homes, the building materials can give off radon, too. However, building

materials rarely cause radon problems by themselves.

Nearly 1 out of every 15 homes in the U.S. is estimated to have elevated radon levels. Elevated levels of radon gas have been found in homes in your state. Contact your state radon office (https://www.epa.gov/radon/findinformation about local radon zones and state contact information) for general information about radon in your area. While radon problems may be more common in some areas, any home may have a problem. The only way to know about your home is to test.

Radon can also be a problem in schools and workplaces. Ask your state radon office (www.epa.gov/radon/whereyoulive.html) about radon problems in schools, daycare and childcare facilities, and workplaces in your area (also visit https://www.epa.gov/radon).

HOWTOTESTYOURHOME

You can’t see radon, but it’s not hard to find out if you have a radon problem in your home. All you need to do is test for radon. Testing is easy and should only take a few minutes of your time. The amount of radon in the air is measured in “picocuries per liter of air,” or “pCi/L.” There are many kinds of low cost “do it yourself” radon test kits you can get through the mail and in some hardware stores and other retail outlets. If you prefer, or if you are buying or selling a home, you can hire a qualified tester to do the testing for you. You should first contact your state radon office about obtaining a list of qualified testers. You can also contact a private radon proficiency program for lists of privately certified radon professionals serving your area. For links and more information, visit https://www.epa.gov/radon/find-radon test kit or measurement and mitigation professional.

ThereareTwoGeneralWaystoTestforRadon:

SHORT-TERM TESTING:

The quickest way to test is with short term tests. Short term tests remain in your homefortwodaysto90days,depending onthedevice. “Charcoal canisters,”“alpha track,”“electretionchamber,”“continuous monitors,”and“charcoalliquidscintillation” detectors are most commonly used for short-term testing. Because radonlevelstend tovary from dayto day and season to season,ashort term test is less likely than a long term test totell you your year round average radon level. Ifyou needresults quickly,however,ashort termtestfollowedbyasecondshort termtest maybeused todecidewhethertofix your home (see alsopage 7under Home Sales).

LONG-TERM TESTING:

Long term tests remain in your home for more than 90 days. “Alpha track” and “electret” detectors are commonly used for this type of testing. A long term test will giveyouareadingthatismorelikelytotellyouyour home’syear roundaverageradon levelthanashort termtest.

HowToUseaTestKit:

Follow the instructions that come with your test kit. If you are doing a short term test, close your windows and outside doors and keep them closed as much as possible during the test. Heating and air conditioning system fans that re circulate air may be operated. Do not operate fans or other machines which bring in air from outside. Fans that are part of a radon reduction system or small exhaust fans operating only for short periods of time may run during the test. If you are doing a short term test lasting just 2 or 3 days, be sure to close your windows and outside doors at least 12 hours before beginning the test, too. You should not conduct

Testingiseasy and should only take a few minutes of your time.

HOW TO TEST YOUR HOME continued

short term tests lasting just 2 or 3 days during unusually severe storms or periods of unusually high winds. The test kit should be placed in the lowest lived in level of the home (for example, the basement if it is frequently used, otherwise the first floor). It should be put in a room that is used regularly (like a living room, playroom, den, or bedroom) but not your kitchen or bathroom. Place the kit at least 20 inches above the floor in a location where it won’t be disturbed—away from drafts, high heat, high humidity, and exterior walls. Leave the kit in place for as long as the package says. Once you’ve finished the test, reseal the package and send it to the lab specified on the package right away for analysis. You should receive your test results within a few weeks.

EPA Recommends the Following Testing Steps:

Step 1. Takeashort-termtest. Ifyourresultis4pCi/Lorhigher,takeafollowuptest(Step2)tobesure.

Step 2. Follow up with either a long-term test or a second short-term test:

• For a better understanding of your year-round average radon level, take a long-term test.

• If you need results quickly, take a second short-term test.

The higher your initial short-term test result, the more certain you can be that you should take a short-term rather than a long-term follow up test. If your first short term test result is more than twice EPA’s4 pCi/L actionlevel,youshouldtakeasecondshort-termtestimmediately.

Step 3.

• If you followed up with a long-term test: Fix your home if your longtermtestresultis4pCi/Lormore.

• If you followed up with a second short-term test: The higher your short-term results, the more certain you can be that you should fix your home. Consider fixing your home if the average of your first and second test is 4 pCi/L or higher (see also page 7 under Home Sales).

WHATYOURTESTRESULTSMEAN

The average indoor radon level is estimated to be about 1.3 pCi/L, and about 0.4 pCi/L of radon is normally found in the outside air. The U.S. Congress has set a long term goal that indoor radon levels be no more than outdoor levels. While this goal is not yet technologically achievable in all cases, most homes today can be reduced to 2 pCi/L or below. Sometimes short term tests are less definitive about whether or not your home is above 4 pCi/L. This can happen when your results are close to 4 pCi/L. For example, if the average of your two short term test results is 4.1 pCi/L, there is about a 50% chance that your year round average is somewhat below 4 pCi/L. However, EPA believes that any radon exposure carries some risk no level of radon is safe. Even radon levels below 4 pCi/L pose some risk, and you can reduce your risk of lung cancer by lowering your radon level.

If your living patterns change and you begin occupying a lower level of your home (such as a basement) you should retest your home on that level. Even if your test result is below 4 pCi/L, you may want to test again sometime in the future.

RADON AND HOME SALES

More and more,home buyers and renters are asking about radon levels before they buy or rent ahome. Because real estate sales happen quickly,there is often little timeto deal with radon and other issues. The bestthingtodoistotestforradonNOWandsavetheresultsincasethebuyerisinterestedinthem. Fixa problem if it exists so it won’t complicate your home sale. If you are planning to move, review EPA’spamphlet “Home Buyer’s and Seller’s Guide to Radon,” which addresses some common questions (https://www.epa.gov/radon/home buyers and sellers guide radon). Youcanalsousetheresultsoftwo short-termtestsdoneside-by-side(fourinches apart) to decide whether to fix your home.

During home sales:

• Buyers often ask if a home has been tested, and if elevated levels were reduced.

• Buyers frequently want tests made by someone who is not involved in the home sale. Your state radon office https://www.epa.gov/radon/find-information-about-local-radon-zones-and-state-contactinformation) can assist you in identifying a qualified tester.

• Buyers might want to know the radon levels in areas of the home (like a basement they plan to finish that the seller might not otherwise test.

Today many homes are built to help prevent radon from coming in. Building codes in your state or local area may require these radon resistant constructionfeatures. Ifyou are buying or renting anew home,askthe owner orbuilderifithasradon-resistantfeatures. TheEPArecommends building newhomes withradonresistantfeaturesinhighradonpotential(Zone1)areas. Evenifbuiltradon resistant,everynewhomeshould be tested for radon after occupancy. If you have a test result of 4 pCi/L or more, consult a qualified mitigator (http://www. epa.gov/radon/find-radon-test-kit-or-measurement-and-mitigation-professional#who) to estimate the cost of upgrading to an active system by adding a vent fan to reduce the radon level. In an existing home, the cost to install a radon mitigation system is about thesameasforothercommon homerepairs.

Test your home now and save your results. If you find high radon levels,fix your home before youdecideto sellit.

If you’ve tested theairinyour homeandfound aradon problem, and your water

comes from a well, have your water tested.

RADON INWATER

There are two main sources for the radon in your home’s indoor air, the soil and the water supply. Compared to radon entering the home through water, radon entering your home through the soil is usually a much larger risk.

The radon in your water supply poses an inhalation risk and an ingestion risk. Research has shown that your risk of lung cancer from breathing radon in air is much larger than your risk of stomach cancer from swallowing water with radon in it. Most of your risk from radon in water comes from radon released into the air when water is used for showering and other household purposes.

Radon in your home’s water is not usually a problem when its source is surface water. A radon in water problem is more likely when its source is ground water, e.g., a private well or a public water supply system that uses ground water. If you are concerned that radon may be entering your home through the water and your water comes from a public water supply, contact your water supplier.

If you’ve tested your private well and have a radon in water problem, it can be fixed. Your home’s water supply can be treated in two ways. Pointof entry treatment can effectively remove radon from the water before it

enters your home. Point of use treatment devices remove radon from your water at the tap, but only treat a small portion of the water you use and are not effective in reducing the risk from breathing radon released into the air from all water used in the home.

For more information, call EPA’s Drinking Water Hotline at (800) 426-4791

If your water comes from a private well, you can also contact your state radon office.

HOWTO LOWERTHERADONLEVELINYOURHOME

Since there is no known safe level of radon, there can always be some risk. But the risk can be reduced by lowering the radon level in your home.

There are several proven methods to reduce radon in your home, but the one primarily used is a vent pipe system and fan, which pulls radon from beneath the house and vents it to the outside. This system, known

as a soil suction radon reduction system, does not require major changes to your home. Sealing foundation cracks and other openings makes this kind of system more effective and cost efficient. Similar systems can also be installed in houses with crawl spaces. Radon contractors can use other methods that may also work in your home. The right system depends on the design of your home and other factors.

Ways to reduce radon in your home are discussed in EPA’s Consumer’s Guide to Radon Reduction. You can get a copy at –about-radon https://www.epa.gov/radon/publications-about radon.

The cost of reducing radon in your home depends on how your home was built and the extent of the radon problem. Most homes can be fixed for about the same cost as other common home repairs. The cost to fix can vary widely; consult with your state radon office or get one or more estimates from qualified mitigators. The cost is much less if a passive system was installed during construction.

RADON AND HOME RENOVATIONS

Ifyouareplanning any major structural renovation, such as converting an unfin ished basement area into living space, it is especially important to testtheareaforradon before you begin the renovation. Ifyour testresultsindicatea radon problem, radonresistant techniques can be inexpensively includedas part of the renovation. Because major renovations can changethelevelof radoninanyhome, alwaystestagainafter work is completed.

HOW TO LOWER THE RADON LEVEL IN YOUR HOME continued

Lowering high radon levels requires technical knowledge and special skills. You should use a contractor who is trained to fix radon problems. A qualified contractor can study the radon problem in your home and help you pick the right treatment method.

Most homes can be fixed for about the same cost as other common home repairs.

Check with your state radon office for names of qualified or state certified radon contractors in your area. You can also contact private radon proficiency programs for lists of privately certified radon professionals in your area. For more information on private radon proficiency programs, visit https://www.epa.gov/radon/find-radon test kit or measurement and mitigation professional. Picking someone to fix your radon problem is much like choosing a contractor for other home repairs you may want to get references and more than one estimate.

If you are considering fixing your home’s radon problem yourself, you should first contact your state radon office for guidance and assistance https://www.epa.gov /radon/find information about local radon zones and state contact information).

You should also test your home again after it is fixed to be sure that adon levels have been reduced. Most soil suction radon reduction systems include a monitor that will indicate whether the system is operating properly. In addition, it’s a good idea to retest your home every two years to be sure radon levels remain low.

Note: This diagram is a composite view of several mitigation options. The typical mitigation system usually has only one pipe penetration through the basement floor; the pipe may also be installed on the outside ohe house.

THE RISK OF LIVINGWITH RADON

Radon gas decays into radioactive particles that can get trapped in your lungs when you breathe. As they break down further, these particles release small bursts of energy. This can damage lung tissue and lead to lung cancer over the course of your lifetime. Not everyone exposed to elevated levels of radon will develop lung cancer. And the amount of time between exposure and the onset of the disease may be many years.

Like other environmental pollutants, there is some uncertainty about the magnitude of radon health risks. However, we know more about radon risks than risks from most other cancer causing substances. This is because estimates of radon risks are based on studies of cancer in humans (underground miners).

Smoking combined with radon is an especially serious health risk. Stop smoking and lower your radon level to reduce your lung cancer risk.

Children have been reported to have greater risk than adults of certain types of cancer from radiation, but there are currently no conclusive data on whether children are at greater risk than adults from radon.

• How much radon is in your home

• The amount of time you spend in your home

• Whether you are a smoker or have ever smoked

Yourchancesofgettinglungcancerfromradondependmostlyon:

Scientists are morecertain aboutradonrisks than risks from most other cancer-causing substances.

THERISKOFLIVINGWITHRADON continued

RADON RISK IFYOU SMOKE

Radon Level If 1,000 people who smoked were exposed to this level over a lifetime*...

Theriskofcancerfrom radonexposurecomparesto**.

WHAT TO DO: StopSmokingand.

It’s never too late to reduce your risk of lung cancer. Don’t wait to test and fixaradon problem. If you are a smoker, stop smoking.

20 pCi/L 10 pCi/L 8 pCi/L 4 pCi/L 2 pCi/L 1.3 pCi/L 0.4 pCi/L

About 260 people could get lung cancer

About 150 people could get lung cancer

About 120 people could get lung cancer

About 62 people could get lung cancer

About 32 people could get lung cancer

About 20 people could get lung cancer

250 times the risk of drowning 200 times the risk of dyingina home fire 30timestheriskof dyinginafall 5 times the risk of dying in a car crash 6 times the risk of dying frompoison

(Average indoor radon level)

(Average outdoor radon level)

Fix your home

Fix your home

Fix your home

Fix your home

Consider fixing between 2 and 4 pCi/L

(Reducing radon levels below 2 pCi/L is difficult)

Note:Ifyouareaformersmoker,yourriskmaybelower.

RADON RISK IFYOU’VE NEVER SMOKED

Radon Level If 1,000 people who neversmokedwereex posedtothislevel overalifetime*.

About 36 people could get lung cancer

About 18 people could get lung cancer

About 15 people could get lung cancer

About 7 people could get lung cancer

About 4 people could get lung cancer

About 2 people could get lung cancer

35 times the risk of drowning 20 times the risk of dying in a home fire 4timestheriskof dyinginafall The risk of dying in a car crash Theriskofdying frompoison (Average indoor radon level)

(Average outdoor radon level)

Note:Ifyouareaformersmoker,yourriskmaybehigher.

*Lifetimeriskoflungcancerdeathsfrom EPAAssessment of Risks from Radon in Homes (EPA402-R-03 003).

Fix your home Fix your home Fix your home Fix your home

Theriskofcancerfrom radonexposurecomparesto**... WHAT TO DO: 20 pCi/L 10 pCi/L 8 pCi/L 4 pCi/L 2 pCi/L 1.3 pCi/L 0.4 pCi/L

Consider fixing between 2 and 4 pCi/L

(Reducing radon levels below 2 pCi/Lis difficult)

**ComparisondatacalculatedusingtheCentersforDiseaseControlandPrevention’s1999 2001NationalCenterforInjuryPreventionandControlReports.

RADON MYTHS AND FACTS continued

MYTH: Everyone should test their water for radon.

FACT: Although radon gets into some homes through water, it is importantto firsttest theairin thehomefor radon. If your water comes from a public water system that uses ground water,callyourwatersupplier. Ifhighradonlevelsare found and the home has a private well, call the Safe Drinking Water Hotline at (800) 426-4791 for information on testing your water.

MYTH: It’sdifficultto sell homes where radon problemshavebeen discovered.

FACT: Where radon problems have been fixed,home sales have not been blocked or frustrated. The added protection is sometimes a good selling point.

MYTH: I’velivedinmy homeforsolong,it doesn’t make sense totakeactionnow.

MYTH: Short termtests can’tbeusedfor making a decision aboutwhethertofix yourhome.

FACT: You will reduce your risk of lung cancer when you reduce radon levels, even if you’ve lived with a radon problem for a long time.

FACT: A short-term test followed by a second short-term test* can be used to decide whether to fix your home. However, the closertheaverageofyourtwoshort-termtestsisto4pCi/L, the less certain you can be about whether your year-round averageisaboveorbelowthatlevel. Keepinmindthatradon levels below 4 pCi/L still pose some risk. Radon levels canbereducedinmosthomesto2pCi/Lorbelow.

*If the radon test is part of a real estate transaction, the result of two short term tests can be used in deciding whether to mitigate. Formore information,see EPA’s “Home Buyer’s and Seller’s Guide to Radon.”

EPARadonWebsite

https://www.epa.gov/radon EPA’sradon page includes links to publications, hotlines, private proficiency programsandmore.

Frequent Questions: https://iaq.zendesk.com/hc/en us/sections/202349927

Radon Hotlines

1-800-SOS-RADON(767-7236)* Purchase radon test kits by phone.

1-800-55RADON (557-2366)* Getlivehelpforyourradonquestions.

1-800-644-6999*

Radon Fix-It Hotline. For general information onfi orreducingtheradon level inyour home.

1-866-528-3187*

Línea Directa de Información sobre Radón en Español. Hayoperadoresdisponibles desde las9:00AMhastalas5:00PMpara darle información sobre radón y como ordenar unkitparahacerlapruebade radónensu hogar.

1-800-426-4791

Safe Drinking Water Hotline. For general informationondrinkingwater,radonin water, testing and treatment, and standards forradonindrinkingwater. Operatedundera contractwith EPA.

*OperatedbyKansasStateUniversity in partnership with EPA.

EPARegionalOffices

https://www.epa.gov/radon/findinformation-about-local-radon-zones-andstate-contact-information Checkthe abovewebsiteforalisting of your EPA regional office.

Ordering Radon Publications

Many EPA radon publications are available from https://www.epa.gov /radon/ publications about radon

Radon publications may be ordered throughthe National Service Center forEnvironmentalPublications (NSCEP) by calling 1-800 490 9198, by visiting the NSCEP website at https://www.epa.gov/nscep or by email atnscep@lmsolas.com.

Surgeon General Health Advisory

“Indoor radon is the second leading cause of lung cancer in the United States and breathing it over prolonged periods can present a significant health risk to families all over the country. It’s important to know that this threat is completely preventable. Radon can be detected with a simple test and fixed through well established venting techniques.”

U.S. EPA Assessment of

Risks

from Radon in Homes

In June 2003, the EPA revised its risk estimates for radon exposure in homes. EPA estimates that about 21,000 annual lung cancer deaths are radon related. EPA also concluded that the effects of radon and cigarette smoking are synergistic, so that smokers are at higher risk from radon. EPA’s revised estimates are based on the National Academy of Sciences 1998 BEIR VI (Biological Effects of Ionizing Radiation) Report which concluded that radon is the second leading cause of lung cancer after smoking.

Title 5 Overview

Homes that are not connected to a sewer system use septic systems or cesspools, both of which are regulated by the state Department of Environmental Protection (DEP) and local boards of health. A septic system has a tank, a distribution box, and soil absorption system commonly known as a "leach field." A cesspool has a pipe carrying waste from the home to a pit which distributes liquid waste.

Improperly functioning sewage systems and cesspools are a major cause of the pollution of our coastal waters, rivers, and water supplies. As of March 31, 1995, the state environmental code governing septic systems, commonly referred to as Title 5 regulations, requires inspections of septic systems and cesspools prior to a home being sold or enlarged. In most instances, systems that fail inspection must be repaired within 2 years. After January 1, 1996, most septic system replacements or upgrades will also require that the soil evaluation test be performed by a DEP approved soil evaluator. On November 3, 1995, Title 5 was again revised to encourage increased compliance with the regulations and to minimize financial hardships and delays for homeowners.

Relevant Law: Massachusetts Septic System Inspection Regulation, 310 CMR 15.00.

Important Issues: Because compliance with Title 5 is complex and potentially lengthy and costly, it is imperative that Realtors familiarize themselves with the general requirements of Title 5. Quick and thorough discussion of Title 5 to a seller and buyer can help to prevent delays in a pending sale. This is especially true since many mortgage lenders may require any septic system or cesspool repair or upgrade to be completed before closing or that funds for the cost of the repair be placed in escrow before closing. Although Title 5 is a state regulation, it is a minimum code therefore permitting local boards of health to adopt ordinances that are more stringent than Title 5. As with any regulation or law, there are many nuances and details that must be carefully followed to ensure compliance. Careful instruction will help prevent any unnecessary delays or expenses. Informational brochures on Title 5 are available for purchase from the Massachusetts Association of Realtors.

Frequently Asked Questions: (Note: All answers are subject to additional local requirements, if any.)

Q: When are septic system and cesspool inspections required under Title 5?

A: Septic system and cesspool inspections are required in the following circumstances:

Within 2 years before the sale of a home or transfer of title;

In certain inheritance situations; (e.g. - when a child inherits a house from his/her parents);

In certain insolvency proceedings (e.g. - bankruptcy, tax taking or foreclosure);

When the use of the home is changed (e.g. - from residential to commercial use);

When the footprint of the house is enlarged;

When the home is expanded and a building, or occupancy permit is required (e.g. - adding a bedroom)

Q: When are septic system and cesspool inspections NOT required under Title 5?

A: Septic system and cesspool inspections are not required in the following circumstances:

When a mortgage is refinanced;

When the system was inspected within 3 years before the sale and you have records proving that your system was pumped annually since the inspection;

Title to the house is transferred from one spouse to another or placed in certain family trusts;

When the local board of health issued a certificate of compliance within 2 years before the time of transfer of title;

When the community has adopted a comprehensive plan approved by DEP requiring periodic inspections and the system was inspected at the most recent time required by the plan; or

When the homeowner has entered into an enforceable agreement, binding on subsequent buyers, with the board of health requiring an upgrade of the system or connection to the municipal sewer system within 2 years of transfer or sale.

Q: How much does the average inspection and replacement or upgrade, if required, cost?

A: The average cost of a septic system or cesspool inspection ranges between $300 to $500. The cost of repairs or upgrades vary depending on the nature of the problem; the location of the system, the size of the system, soil conditions; and site restrictions. A simple repair may only cost $500 while more extensive repairs may cost up to $12,000 or more. Contact your local board of health to inquire about typical costs in your community.

Q: If a septic system or cesspool inspection is required at what point in time must the inspection be performed?

A: The inspection must be performed within 2 years prior to the sale or transfer of the home or 6

months after the sale if weather conditions preclude prior inspection. If the system fails inspection, the system must be upgraded or replaced within 2 years of the inspection regardless whether the house is actually sold or transferred. However, voluntary inspections, inspections not performed because of an intent to sell the property, may be performed just to assess the system’s condition. The results of a voluntary inspection are not reported to the local board of health or DEP.

Q: Who is allowed to perform septic system or cesspool inspections?

A: Only inspectors and soil evaluators approved under the regulations can perform required system inspections and soil tests. A list of DEP-approved soil evaluators and inspectors is available from your local board of health. Certified health officers, registered sanitarians and professional engineers qualify automatically as system inspectors under the regulations, and their names may or may not appear on the DEP-approved list. Consult with your local board of health to ensure that the system is inspected by a qualified individual.

Q: What happens with the results of a septic system or cesspool inspection?

A: If a system passes, the inspector is required to submit an approved system inspection form to the local board of health within 30 days, and the homeowner must provide a copy to the buyer. Prospective buyers and lending institutions may also require a copy of the approved inspection form.

If the systems fails a required inspection, the inspector is required to submit the form to the local board of health within 30 days, and the homeowner must provide a copy to the buyer. The system must be repaired or upgraded within 2 years following the inspection, regardless whether the property is sold.

Q: Is there any state financial assistance available to homeowners faced with the financial burden of replacing or upgrading their septic system?

A: With the support of the Massachusetts Association of Realtors, the Massachusetts legislature passed a Title 5 tax credit which will provide eligible homeowners with a tax credit equal to 40 percent of the design and construction costs incurred to upgrade or repair a septic system. The tax credit relief measure provides credits of up to $1,500 per year for qualified homeowners with a maximum credit of $6,000 over a four-year period. This tax credit is available for all septic system and cesspool upgrade and repairs which occurred on or after January 1, 1997.

Additional financial assistance is available in the form of low interest loans through the Massachusetts Housing Finance Agency and the Rural Economic Development Service Loan program. In addition, eligible municipalities can make low-interest 20-year loans to low-to moderate income homeowners, repaid by adding an annual "betterment" to their tax bill. Contact your local board of health to see if your community participates in the Betterment Fund Program.

For more information please contact the following:

Massachusetts Association of REALTORS ® at (800) 370-LEGAL

Massachusetts Department of Environmental Protection, Title 5 Hotline at (617) 292-5886 or (800) 266-1122.

Office of the Attorney General, Consumer Complaint and Information Line at (617) 7278400

Massachusetts Better Business Bureau at (413) 734-3114 or (508) 755-2548 or (617) 4269000

Massachusetts Housing Finance Agency (HILP Loans) at (617) 854-1020

Rural Economic Development Service Loans at (413) 253-4330

This publication is provided as a service to members of the Massachusetts Association of REALTORS ® and is intended for educational use only. Opinion or suggestions in this publication do not necessarily represent the official policies or positions of the Massachusetts Association of REALTORS ® . The Massachusetts Association of REALTORS ® does not accept responsibility for any misinterpretation or misapplication by the reader of the information contained in this article. The publishing of this material does not constitute the practice of law nor does it attempt to provide legal advice concerning any specific factual situation. FOR ADVICE ON SPECIFIC LEGAL PROBLEMS CONSULT LEGAL COUNSEL.

Peter J. Ostroskey • State Fire Marshal

M.G.L. c 148 s. 26F - The Law

Massachusetts General Law, chapter 148 section 26F mandates that upon the sale or transfer of certain homes, the seller must install approved smoke alarms. These requirements apply to residences that were built or modiied prior to creation of the Massachusetts State Building Code (January 1, 1975). If a building was built or has undergone renovation, addition or modiication after Jan. 1, 1975, the date the building permit was issued determines the smoke alarms requirements of the building code.

Although the transfer law applies to residences with ive or less residential units, this pamphlet will focus only on oneand two-family homes.

Veriication

After a successful inspection for smoke alarm compliance, the local ire department will issue a Certiicate of Compliance indicating that the residence meets the smoke alarm requirements.

Although the law applies to homes built prior to the date of the building code (Jan. 1975), it is industry practice that most purchase and sales agreements, and many mortgage companies require that the seller, as a condition to sell or transfer, obtain a Certiicate of Compliance issued by the local ire department, even if the home was permitted or modiied after 1975.

Smoke Detector Requirements

All homes are required to have smoke alarms. In general, the requirements for smoke alarms vary depending on when the residence was constructed or underwent renovation, addition or modiication.

Photoelectric vs. Ionization Technologies

Photoelectric smoke alarms

• Use light to detect smoke.

• More effective in detecting smoldering ires, which have been attributed to more ires involving death.

• Household ire warning systems (low voltage or wireless low voltage systems) only use photoelectric detectors.

Ionization smoke detectors

• Use radiation to detect smoke.

• More effective in detecting laming ires.

• Increase the risk of nuisance alarms caused by steam or cooking smoke.

Carbon Monoxide Alarms

Massachusetts General Law, chapter 148 section 26F½ and 527 CMR 1.00:13.7.6 mandates that upon the sale or transfer of any residence, the local ire department must inspect the residence for carbon monoxide alarm compliance. After a successful inspection, the local ire department will issue a Certiicate of Compliance indicating that the residence meets the carbon monoxide alarm requirements. Smoke alarm and CO alarm inspections can be conducted in the same visit.

Carbon Monoxide Alarm Requirements

Since March 31, 2006, carbon monoxide alarms have been required in all residences that have either: fossil fuel burning equipment or an attached enclosed garage. This law applied to all such residences whether or not the residence is being sold or transferred.

What is Fossil Fuel Burning Equipment?

Fossil fuel burning equipment is any device, apparatus or appliance that is designed or used to consume fuel of any kind which emits carbon monoxide as a by-product of combustion. Some examples of fossil fuel burning equipment are: gas water heaters, oil or gas furnaces, wood or gas ireplaces, wood pellet stoves, gas clothes dryers, or gas cooking stoves.

How Will I Know What I Need?

The word “typical” is used in the following guidelines only for purposes of illustration. The speciic requirements may depend on when the building permit for the residence was issued and if there have been any major renovations, additions or modiications. It is best to check with your local building or ire department for detailed guidance.

Typical one- and two-family residences built before January 1, 1975:

• Smoke alarms are required as follows:

–

On every habitable level of the residence.

– In the basement.

–

On the ceiling at the base of each stairway leading to a loor above including the basement (but not within stairways).

– On the ceiling outside each separate sleeping area.

– Must be photoelectric. (Can be in combination with ionization or carbon monoxide.)

– May be battery-powered, hardwired, or a combination of both.

– Smoke alarms cannot be more than 10 years old or exceed the manufacturer’s recommended life, whichever comes irst.

– In two-family dwellings, smoke alarms are required in common areas shared by residents.

• New or Replacement alarms:

– Must be photoelectric. (Can be in combination with ionization or carbon monoxide.)

– Must contain a hush feature to silence nuisance alarms.

–

Battery-powered alarms must have 10-year, sealed, nonrechargeable, non-replaceable batteries.

• Carbon monoxide alarms are required as follows:

– On every level of the residence, including habitable portions of basements and attics and must be located within 10 feet of each bedroom door.

– Combination alarms (photoelectric smoke and carbon monoxide alarm) may be used.

–

Combination alarms must have both a tone and simulated voice alarm to distinguish the type of emergency.

– May be either: battery powered, plug-in with battery backup, hardwired with battery backup, or system type.

–

Follow the manufacturer’s instructions for placement.

Typical one- and two-family residences permitted between 1975 and August 27, 1997:

• Smoke alarms are required as follows:

– One smoke alarm on every habitable level of the residence.

– One smoke alarm on the ceiling at the base of each stairway.

– One smoke alarm on the ceiling outside of each separate sleeping area.

–

A minimum of one smoke alarm must be installed for every 1,200 square feet of living space per level.

– Must be hardwired interconnected smoke alarms.

• Carbon monoxide alarms are required as follows:

–

On every level of the residence, including habitable portions of basements and attics and must be located within 10 feet of each bedroom door.

– Combination alarms (photoelectric smoke and carbon monoxide alarm) may be used anywhere.

– Combination alarms (ionization smoke and carbon monoxide alarm) may be used if the alarm is more than 20 feet from a kitchen or bathroom (containing a bathtub or shower).

–

Combination alarms must have both a tone and simulated voice alarm to distinguish the type of emergency.

– May be either: battery powered, plug-in with battery backup, hardwired with battery backup, or system type.

– Follow the manufacturer’s instructions for placement.

Typical one- and two-family residences permitted after August 27, 1997:

• Smoke alarms are required as follows:

–

One smoke alarm on every habitable level of the residence.

–

–

One smoke alarm at the base of each stairway.

One smoke alarm outside of each separate sleeping area.

–

–

One smoke alarm inside every bedroom.

A minimum of one smoke alarm must be installed for every 1,200 square feet of living space per level.

– Must be hardwired and interconnected smoke alarms with battery backup.

–

If the smoke alarm is within 20 feet of a kitchen or bathroom (containing a bathtub or shower), the smoke alarm is required to be a photoelectric alarm.

• Carbon monoxide alarms are required as follows:

– On every level of the residence, including habitable portions of basements and attics and must be located within 10 feet of each bedroom door.

–

Combination alarms (photoelectric smoke and carbon monoxide alarm) may be used anywhere.

–

Combination alarms (ionization smoke and carbon monoxide alarm) may be used if the alarm is more than 20 feet from a kitchen or bathroom (containing a bathtub or shower).

–

Combination alarms must have both a tone and simulated voice alarm to distinguish the type of emergency.

– May be either: battery powered, plug-in with battery backup, hardwired with battery backup, or system type.

– Follow the manufacturer’s instructions for placement.

Typical one- and two-family residences permitted on or after January 1, 2008:

• Smoke alarms are required as follows:

–

One smoke alarm on every habitable level of the residence.

–

One smoke alarm at the base of each stairway.

– One smoke alarm outside of each separate sleeping area.

–

–

One smoke alarm inside every bedroom.

A minimum of one smoke alarm must be installed for every 1,200 square feet of living space per level.

– Must be hardwired and interconnected smoke alarms with battery backup.

–

If the smoke alarm is within 20 feet of a kitchen or bathroom (containing a bathtub or shower), the smoke alarm is required to be a photoelectric alarm.

–

If the smoke alarm is more than 20 feet from a kitchen or a bathroom (containing a bathtub or shower), the

smoke alarm is required to be either a photoelectric alarm or a dual alarm (containing both ionization and photoelectric technologies).

• Carbon monoxide alarms are required as follows:

–

On every level of the residence, including habitable portions of basements and attics and located within 10 feet of each bedroom door.

– Combination alarms (photoelectric smoke and carbon monoxide alarm) may be used.

– Must be hardwired and interconnected with battery backup. (May be separately wired from the existing smoke detection system.)

–

Follow the manufacturer’s instructions for placement

• Heat alarms are required as follows:

– Must have a single heat alarm in any garage attached to or under the residence.

– Must be hardwired and interconnected with or without battery backup to the existing smoke detection system.

– Heat alarms are not required in garages of older homes unless renovation, addition or modiication occurs after Jan. 1, 2008.

Typical one- and two-family residences permitted on or after February 4, 2011:

• Smoke alarms are required as follows:

–

One smoke alarm on every habitable level of the residence.

–

–

One smoke alarm at the base of each stairway.

One smoke alarm outside of each separate sleeping area.

–

–

One smoke alarm inside every sleeping area.

A minimum of one smoke alarm must be installed for every 1,200 square feet of living space per level.

– Must be hardwired and interconnected with battery backup.

– All smoke alarms must be photoelectric.

• Carbon monoxide alarms are required as follows:

– On every level of the residence, including basements and habitable portions of attics, and must be located within 10 feet of each bedroom door.

– Combination alarms (photoelectric smoke and carbon monoxide alarm) may be used.

– Must be hardwired and interconnected with battery backup. (May be separately wired from the existing smoke detection system.)

• Heat alarms are required as follows:

– Must have a single heat alarm in any garage attached to or under the residence.

– Must be hardwired and interconnected with or without battery backup to the existing smoke detection system.

– Heat alarms are not required in garages of older homes unless renovation, addition or modiication occurs after Jan. 1, 2008.

How Will I Get a Certiicate of Compliance?

After you have a closing date:

• Contact the local ire department to schedule an inspection of your smoke and carbon monoxide detectors right away. Don’t wait until the last minute!

• Fees are determined by each city/town.

Prior to the arrival of the ire department:

• Make sure that your posted street number is visible from the street (MGL c.148 § 59);

• Make sure that you have the proper type of alarms.

– The local ire department may require that they be taken down for compliance veriication.

– Make sure that all detectors are installed in the proper locations.

– Make sure that all alarms are working properly.

• After passing the inspection, the local ire department will issue your Certiicate of Compliance.

– This document will probably be required at the closing.

How Do I Know if my Smoke Alarm is More than 10 Years Old or Expired?

The manufacturer’s date is located on the back of the smoke alarm. Carefully remove the alarm from its mounting bracket to check the date.

If there is no date marked, then the alarm is more than 10 years old. If the date indicates it was manufactured more than 10 years ago, replace it with a new alarm that meets the requirements identiied in this guide.

How Do I Know Which Kind of Smoke Alarm I Have?

A new alarm should be marked on the outside of the package to indicate if it uses ionization or photoelectric technology.

For older or existing alarms you will need to remove the smoke alarm and look on the backside.

• It is an ionization smoke alarm if the word “AMERICIUM” or the following symbol is on the back:

Can I Use New Wireless Technology?

Yes you can use new wireless technology.

• In homes built before 1975, alarms can be wirelessly interconnected and can have a replaceable battery as long as the battery lasts for at least one year.

• In homes built or modiied after 1975, they may be wirelessly interconnected, but cannot be wirelessly powered; they must be hard-wired per the State Building Code.

• Wireless devices are always allowed with household ire warning systems.

Household Fire Warning Systems

If you have a household ire warning system, the speciic requirements may be different than those listed here. Contact your local ire department.

• Alarms must comply with Underwriter’s Laboratory Standard 268.

Are There Other Recommendations?

The State Fire Marshal’s Ofice recommends:

• Test your smoke and CO alarms monthly and replace alkaline batteries twice a year. REMEMBER, when you change the clocks, change the batteries.

• Unless otherwise recommended by the manufacturer’s published instructions, no smoke alarms (battery operated or hard-wired) shall remain in service after 10 years from the date of manufacture. Combination CO and smoke alarms may need to be replaced sooner.

• Additional replaceable battery-powered smoke alarms can be installed. Strongly consider a smoke alarm on the ceiling of each bedroom.

• Additional non-required smoke alarms may be photoelectric, ionization or both.

• People who are deaf or hard of hearing should install bed shaking devices in the bedroom that connect to the smoke alarms and strobe alarms in living areas.

• Consider selecting a carbon monoxide alarm with a digital display.

70 AND 1 WAY TO STOP IT

There are many title issues that could cause you to lose your property or your mortgage investments. Even the most careful search of public records may not disclose the most dangerous threat: hidden risks. These issues may not be uncovered until years later.

Without title insurance from a reputable and financially secure company, your title could be worthless. With the proper insurance, your rights will be defended in court.

Here are some of the issues that occur most frequently:

1. Forged deeds, mortgages, satisfactions or releases.

2. Deed by person who is insane or mentally incompetent.

3. Deed by minor (may be disavowed).

4. Deed from corporation, unauthorized under corporate bylaws or given under falsified corporate resolution.

5. Deed from partnership, unauthorized under partnership agreement.

6. Deed from purported trustee, unauthorized under trust agreement.

7. Deed to or from a “corporation” before incorporation, or after loss of corporate charter.

8. Deed from a legal non-entity (styled, for example, as a church, charity or club).

9. Deed by person in a foreign country, vulnerable to challenge as incompetent, unauthorized or defective under foreign laws.

10. Claims resulting from use of “alias” or fictitious name style by a predecessor in title.

11. Deed challenged as being given under fraud, undue influence or duress.

12. Deed following non-judicial foreclosure, where required

procedure was not followed.

13. Deed affecting land in judicial proceedings (bankruptcy, receivership, probate, conservatorship, dissolution of marriage), unauthorized by court.

14. Deed following judicial proceedings, subject to appeal or further court order.

15. Deed following judicial proceedings, where all necessary parties were not joined.

16. Lack of jurisdiction over persons or property in judicial proceedings.

17. Deed signed by mistake (grantor did not know what was signed).

18. Deed executed under falsified power of attorney.

19. Deed executed under expired power or attorney (death, disability or insanity of principal).

20. Deed apparently valid, but actually delivered after death of grantor or grantee, or without consent of grantor.

21. Deed affecting property purported to be separate property of grantor, which is in fact community or jointly-owned property.

22. Undisclosed divorce of one who conveys as sole heir of a deceased former spouse.

70-Something Ways

You Could Lose Your Home continued

23. Deed affecting property of deceased person, not joining all heirs.

24. Deed following administration of estate of missing person, who later re-appears.

25. Conveyance by heir or survivor of a joint estate, who murdered the decedent.

26. Conveyances and proceedings affecting rights of service-member protected by the Soldiers and Sailors Civil Relief Act.

27. Conveyance void as in violation of public policy (payment of gambling debt, payment for contract to commit crime, or conveyance made in restraint of trade).

28. Deed to land including “wetlands” subject to public trust (vesting title in government to protect public interest in navigation, commerce, fishing and recreation).

29. Deed from government entity, vulnerable to challenge and is unauthorized or unlawful.

30. Ineffective release of prior satisfied mortgage due to acquisition of note by bona fide purchaser (without notice of satisfaction).

31. Ineffective release of prior satisfied mortgage due to bankruptcy of creditor prior to recording of release (avoiding powers in bankruptcy).

32. Ineffective release of prior mortgage of lien, as fraudulently obtained by predecessor in title.

33. Disputed release of prior mortgage or lien, as given under mistake or misunderstanding.

34. Ineffective subordination agreement, causing junior interest to be reinstated to priority.

35. Deed recorded, but not properly indexed so as to be locatable in the land records.

36. Undisclosed but recorded federal or state tax lien. 37. Undisclosed but recorded judgment or spousal/child support lien.

38. Undisclosed but recorded prior mortgage. 39. Undisclosed but recorded notice of pending lawsuit affecting land.

40. Undisclosed but recorded environmental lien.

41. Undisclosed but recorded option, or right of first refusal, to purchase property.

42. Undisclosed but recorded covenants or restrictions, with (or without) rights of reverter.

43. Undisclosed but recorded easements (for access, utilities, drainage, airspace, views) benefiting neighboring land. 44. Undisclosed but recorded boundary, party wall or setback agreements.

45. Errors in tax records (mailing tax bill to wrong party resulting in tax sale, or crediting payment to wrong property).

46. Erroneous release of tax or assessment liens, which are later reinstated to the tax rolls. 47. Erroneous reports furnished by tax officials (not binding local government).

48. Special assessments which become liens upon passage of a law or ordinance, but before recorded notice or commencement of improvements for which assessment is made.

49. Adverse claim of vendor’s lien.

50. Adverse claim of equitable lien.

51. Ambiguous covenants or restrictions in ancient documents.

52. Misinterpretation of wills, deeds and other instruments.

53. Discovery of will of supposed intestate individual, after probate.

54. Discovery of later will after probate of first will.

55. Erroneous or inadequate legal descriptions.

56. Deed to land without a right of access to a public street or road.

57. Deed to land with legal access subject to undisclosed but recorded conditions or restrictions.

58. Right of access wiped out by foreclosure on neighboring land.

59. Patent defects in recorded instruments (for example, failure to attach notarial acknowledgment or a legal description).

60. Defective acknowledgment due to lack of authority of notary (acknowledgment taken before commission or after expiration of commission).

61. Forged notarization or witness acknowledgment.

62. Deed not properly recorded (wrong county, missing pages or other contents, or without required payment).

63. Deed from grantor who is claimed to have acquired title through fraud upon creditors of a prior owner

In certain states, an extended coverage policy may be requested to protect against such additional defects as:

64. Deed to a purchaser from one who has previously sold or leased the same land to a third party under an unrecorded contract, where the third party is in possession of the premises.

65. Claimed prescriptive rights, not of record and not disclosed by survey.

66. Physical location of easement (underground pipe or sewer line) which does not conform with easement of record.

67. Deed to land with improvements encroaching upon land of another.

68. Incorrect survey (misstating location, dimensions, area, easements or improvements upon land).

69. “Mechanics’ lien” claims (securing payment of contractors and material suppliers for improvements) which may attach without recorded notice.

70. Federal estate or state inheritance tax liens (may attach without recorded notice).

71. Pre-existing violation of subdivision mapping laws.

72. Pre-existing violation of zoning ordinances.

73. Pre-existing violation of conditions, covenants and restrictions affecting the land.

74. Post-policy forgery against the insured interest.

75. Forced removal of residential improvements due to lack of an appropriate building permit (subject to deductible).

76. Post-policy construction of improvements by a neighbor onto insured land.

77. Damage to residential structures from use of the surface of insured land for extraction or development of minerals.

First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.

Home Water Testing

Should I Have My Water Tested?

The answer to this question depends on several factors. It concerns your health and the health of your family, so you need to know some basic facts.

In addition to illness, a variety of less serious problems such as taste, color, odor and staining of clothes or fixtures are signs of possible water quality problems. Other things to think about include the nearness of your water well to septic systems and the composition of your home’s plumbing materials.

This fact sheet provides information to help you decide whether or not to have your water tested, and if so, suggested tests for your situation.

Public Water Systems

When you turn on the tap, where does the water come from? If you pay a water bill, you are purchasing water from a public water system, where your water is monitored, tested and the results reported to the federal, state or tribal drinking water agencies responsible for making sure it meets the National Primary Drinking Water Standards. Your water company must notify you when contaminants are in the water they provide that may cause illness or other problems.

Regardless of your water source, here are two situations that may require testing:

Do you suspect lead may be in some of your household plumbing materials and water service lines?

Most water systems test for lead as a regular part of water monitoring. These tests give a system-wide picture, but do not reflect conditions at a specific household faucet.

If you want to know if your home’s drinking water contains unsafe levels of lead, have your water tested. Testing is the only way to confirm if lead is present or absent.

Some faucet and pitcher filters can remove lead from drinking water. If you use a filter to remove lead, be sure you get one that is certified to remove lead by NSF International.

For more information, visit www.epa.gov/safewater/ lead, or call the Safe Drinking Water Hotline at 1-800-426-4791.

Are you considering a home water treatment unit?

Find out what is in your water and what you might want to remove before contacting potential dealers. Be informed so you can make the right decisions. To help you, please visit: www.epa.gov/safewater/faq/faq.html#hwtu and www.epa.gov/safewater/wot.

Most people in the United States receive water from a community water system that provides its customers with an annual water quality report, also known as a Consumer Confidence Report. Normally, you will receive it with your water bill once a year in July. The report contains information on contaminants found, possible health effects, and the water’s source. If you do not receive a report, contact your water company for this information.

Private Water Supplies

If your drinking water does not come from a public water system, or you get your drinking water from a household well, you alone are responsible for assuring that it is safe.

For this reason, routine testing for a few of the most common contaminants is highly recommended. Even if you currently have a safe, pure water supply, regular testing can be valuable because it establishes a record of water quality. This record is helpful in solving any future problems and in obtaining compensation if someone damages your water supply.

The following items will help you determine when to test your private drinking water supply.

How frequently should I test?

Test water every year for total coliform bacteria, nitrates, total dissolved solids and pH levels, especially if you have a new well, or have replaced or repaired pipes, pumps or the well casing.

Do you expect to have a new baby in the household?

Test for nitrate in the early months of a pregnancy, before bringing an infant home, and again during the first six months of the baby’s life. It is best to test for nitrate during the spring or summer following a rainy period.

Do you have taste, odor and staining issues?

Test for sulfate, chloride, iron, manganese, hardness and corrosion, and every three years. If you suspect other contaminants, test for these also.

Have you had a chemical or fuel spill or leak near your water supply?

Test your well for chemical contaminants, such as volatile organic compounds. Tests can be expensive; limit them to possible problems specific to your situation. Local experts can tell you about possible impurities in your area.

Is someone in your household pregnant or nursing an infant? Are there unexplained illnesses in your family?

Do you notice a change in water taste, odor, color or clarity? You may need to test more than once a year.

Do you know who can test your water?

Often county health departments will help you test for bacteria or nitrates. If not, you can have your water tested by a state certified laboratory. You can find one in your area by calling the Safe Drinking Water Hotline at 800-426-4791 or visiting www.epa.gov/safewater/labs

Collecting Samples

Most testing laboratories or services supply their own sample containers. Use the containers provided and carefully follow the instructions given for collecting, preserving and handling water samples. Samples for coliform bacteria testing must be collected using sterile containers and under sterile conditions. Some procedures require that water runs from an outside tap for several minutes before filling the sample containers. Laboratories may sometimes send a trained technician to collect the sample or to analyze the sample directly in your home. Ask if this service is available, since you may obtain better samples and more reliable test results.

WHEN TO TEST YOUR WATER

Conditions or nearby activitiesRecommended Test

Recurrent gastro-intestinal illnessColiform bacteria

Household plumbing contains lead pH, lead, copper

Radon in indoor air or region is radon rich Radon

Scaly residues, soaps don’t latherHardness

Water softener needed to treat hardness Manganese, iron

Stained plumbing fixtures, laundry iron, copper, manganese

Objectionable taste or smellHydrogen sulfide, corrosion, metals

Water appears cloudy, frothy or colored Color, detergents

Corrosion of pipes, plumbingCorrosion, pH, lead

Rapid wear of water treatment equipment pH, corrosion

Nearby areas of intensive agriculture Nitrate, pesticides, coliform bacteria

Coal or other mining operation nearby Metals, pH, corrosion

Gas drilling operation nearbyChloride, sodium, barium, strontium

Odor of gasoline or fuel oil, and near gas station or buried fuel tanks

Volatile organic compounds (VOC)

Dump, junkyard, landfill, factory or dry-cleaning operation nearby VOC, Total disolved solids (TDS), pH, sulfate, chloride, metals

Salty taste and seawater, or a heavily salted roadway nearby

Chloride, TDS, sodium

WATER ON TAP what you need to know

Table of Contents

Chapter Page No. 1. A Consumer’s Guide To The Nation’s Drinking Water .........................1 2. How Safe Is My Drinking Water? .........................................2 3. Where Does My Drinking Water Come From And How Is It Treated?.............7 4. How Do We Use Drinking Water In Our Homes? ............................10 5. What’s Being Done To Improve Water Security?.............................13 6. What Can I Do If There Is A Problem With My Drinking Water?................15 7. How Safe Is The Drinking Water In My Household Well? .....................18 8. What You Can Do To Protect Your Drinking Water...........................21

Appendix A: National Primary Drinking Water Standards as of 10/03.......................23

Appendix B: References 28

Appendix C: Sources of Additional Information ........................................29

Appendix D: Glossary.............................................................31

Office of Water (4601) EPA 816-K-09-002

1. A Consumer’s Guide To The Nation’s Drinking Water

The United States enjoys one of the best supplies of drinking water in the world. Nevertheless, many of us who once gave little or no thought to the water that comes from our taps are now asking the question: “Is my water safe to drink?” While tap water that meets federal and state standards is generally safe to drink, threats to drinking water are increasing. Short-term disease outbreaks and water restrictions during droughts have demonstrated that we can no longer take our drinking water for granted.

This booklet provides the answers to these and other frequently asked questions.

This booklet also directs you to more detailed sources of information. Often, you will be directed to a page on the EPA website. Additionally, the Safe Drinking Water Hotline is available to answer your questions. Please also see Appendix C for more resources. Refer to the Glossary (Appendix D) for definitions of words in bold font.

done to improve security of public water systems? Where does my drinking water come from, and how is it treated? Do private wells receive the same protection as public water systems? What can I do to help protect my drinking water?

Sensitive Subpopulations

Some people may be more vulnerable to contaminants in drinking water than the general population. People undergoing chemotherapy or living with HIV/AIDS, transplant patients, children and infants, the frail elderly, and pregnant women and their fetuses can be particularly at risk for infections.

If you have special health care needs, consider taking additional precautions with your drinking water, and seek advice from your health care provider. For more information, see www.epa.gov/safewater/healthcare/ special.html

You will find information on bottled water and home water treatment units on page 16 of this booklet. You may also contact NSF International, Underwriter’s Laboratory, or the Water Quality Association. Contact information is located in Appendix C.

Safe Drinking Water Hotline: 800-426-4791

What you need to know to protect your family

2. How Safe Is My Drinking Water?

What Law Keeps My Drinking Water Safe?

Congress passed the Safe Drinking Water Act (SDWA) in 1974 to protect public health by regulating the nation’s public drinking water supply and protecting sources of drinking water. SDWA is administered by the U.S. Environmental Protection Agency (EPA) and its state partners.

Highlights of the Safe Drinking Water Act

• Authorizes EPA to set enforceable health standards for contaminants in drinking water

• Requires public notification of water systems violations and annual reports (Consumer Confidence Reports) to customers on contaminants found in their drinking waterwww.epa.gov/safewater/ccr

• Establishes a federal-state partnership for regu lation enforcement

• Includes provisions specifically designed to protect underground sources of drinking water - www.epa.gov/safewater/uic

• Requires disinfection of surface water supplies, except those with pristine, protected sources

• Establishes a multi-billion-dollar state revolv ing loan fund for water system upgradeswww.epa.gov/safewater/dwsrf

• Requires an assessment of the vulnerability of all drinking water sources to contaminationwww.epa.gov/safewater/protect

— Drinking Water: Past, Present, and Future EPA-816-F-00-002

What Is A Public Water System?

The Safe Drinking Water Act (SDWA) defines a public water system (PWS) as one that serves piped water to at least 25 persons or 15 service connections for at least 60 days each year. There are approximately 161,000 public water systems in the United States.1 Such systems may be publicly or privately owned. Community water systems (CWSs) are public water systems that serve people year-round in their homes. Most people in the U.S. (268 million) get their water from a community water system. EPA also regulates other kinds of public water systems,

Public Water Systems

Community Water System (54,000 systems)— A public water system that serves the same people year-round. Most residences are served by Community Water Systems.

Non-Community Water System (approximately 108,000 systems)—A public water system that does not serve the same people year-round. There are two types of non-community systems:

• Non-Transient Non-Community Water System (almost 19,000 systems)—A noncommunity water system that serves the same people more than six months of the year, but not year-round. For example, a school with its own water supply is considered a non-transient system.

• Transient Non-Community Water System (more than 89,000 systems)—A noncommunity water system that serves the public but not the same individuals for more than six months. For example, a rest area or a campground may be considered a transient system.

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

such as those at schools, campgrounds, factories, and restaurants. Private water supplies, such as household wells that serve one or a few homes, are not regulated by EPA. For information on household wells, see “How Safe Is The Drinking Water In My Household Well?” on page 18 of this booklet.

Cost of Making Water Safe Continues to Rise

Much of the existing water infrastructure (underground pipes, treatment plants, and other facilities) was built many years ago. In 1999, EPA conducted the second Drinking Water Infrastructure Needs Survey, and found that drinking water systems will need to invest $150 billion over a 20-year period to ensure clean and safe drinking water.

in the drinking water, possible health effects, and the water’s source. Some Consumer Confidence Reports are available at www.epa.gov/safewater/dwinfo.htm.

Water suppliers must promptly inform you if your water has become contaminated by something that can cause immediate illness. Water suppliers have 24 hours to inform their customers of violations of EPA standards “that have the potential to have serious adverse effects on human health as a result of short-term exposure.” If such a violation occurs, the water system will announce it through the media, and must provide information about the potential adverse effects on human health, steps the system is taking to correct the violation, and the need to use alternative water supplies (such as boiled or bottled water) until the problem is corrected.

Will Water Systems Have Adequate Funding In The Future?

Nationwide, drinking water systems have spent hundreds of billions of dollars to build drinking water treatment and distribution systems. From 1995 to 2000, more than $50 billion was spent on capital investments to fund water quality improvements.2

With the aging of the nation’s infrastructure, the clean water and drinking water industries face a significant challenge to sustain and advance their achievements in protecting public health. EPA’s Clean Water & Drinking Water Infrastructure Gap Analysis3 has found that if present levels of spending do not increase, there will be a significant funding gap by the year 2019.

Where Can I Find Information About My Local Water System?

Since 1999, water suppliers have been required to provide annual Consumer Confidence Reports to their customers. These reports are due by July 1 each year, and contain information on contaminants found

Systems will inform customers about violations of less immediate concern in the first water bill sent after the violation, in a Consumer Confidence Report, or by mail within a year. In 1998, states began compiling information on individual systems, so you can evaluate the overall quality of drinking water in your state. Additionally, EPA must compile and summarize the state reports into an annual report on the condition of the nation’s drinking water. To view the most recent annual report, see www.epa.gov/safewater/annual.

How Often Is My Water Supply Tested?

EPA has established pollutant-specific minimum testing schedules for public water systems. To find out how frequently your drinking water is tested, contact your water system or the agency in your state in charge of drinking water.

If a problem is detected, immediate retesting requirements go into effect along with strict instructions about how the system informs the public. Until the system can reliably demonstrate that it is free of problems, the retesting is continued.

In 2001, one out of every four community water systems did not conduct testing or report the results for all of the monitoring required to verify the safety

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

of their drinking water.4 Although failure to monitor does not necessarily suggest safety problems, conducting the required reporting is crucial to ensure that problems will be detected. Consumers can help make sure certain monitoring and reporting requirements are met by first contacting their state drinking water agency to determine if their water supplier is in compliance. If the water system is not meeting the requirements, consumers can work with local and state officials and the water supplier to make sure the required monitoring and reporting occurs.

A network of government agencies monitor tap water suppliers and enforce drinking water standards to ensure the safety of public water supplies. These agencies include EPA, state departments of health and environment, and local public health departments.

Common Sources of Pollution

Naturally Occurring: microorganisms (wildlife and soils), radionuclides (underlying rock), nitrates and nitrites (nitrogen compounds in the soil), heavy metals (underground rocks containing arsenic, cadmium, chromium, lead, and selenium), fluoride.

Human Activities: bacteria and nitrates (human and animal wastes—septic tanks and large farms), heavy metals (mining construction, older fruit orchards), fertilizers and pesticides (used by you and others (anywhere crops or lawns are maintained)), industrial products and wastes (local factories, industrial plants, gas stations, dry cleaners, leaking underground storage tanks, landfills, and waste dumps), household wastes (cleaning solvents, used motor oil, paint, paint thinner), lead and copper (household plumbing materials), water treatment chemicals (wastewater treatment plants).

Reported Community Water Systems Violating Maximum Contaminant Levels or Treatment Standards in FY 2002

Nevertheless, problems with local drinking water can, and do, occur.

What Problems Can Occur?

Actual events of drinking water contamination are rare, and typically do not occur at levels likely to pose health concerns. However, as development in our modern society increases, there are growing numbers of activities that can contaminate our drinking water. Improperly disposed-of chemicals, animal and human wastes, wastes injected underground, and naturally occurring substances have the potential to contaminate drinking water. Likewise, drinking water that is not properly treated or disinfected, or that travels through an improperly maintained distribution system, may also pose a health risk. Greater vigilance by you, your water supplier, and your government can help prevent such events in your water supply.

Contaminants can enter water supplies either as a result of human and animal activities, or because they occur naturally in the environment. Threats to your drinking water may exist in your neighborhood, or may occur many miles away. For more information on drinking water threats, see www.epa.gov/safewater/

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

District of Columbia

0% - 6% of Systems 6% - 11% of Systems 11+% of Systems

publicoutreach/landscapeposter.html. Some typical examples are microbial contamination, chemical contamination from fertilizers, and lead contamination.

Boil Water Notices for Microbial Contaminants

When microorganisms such as those that indicate fecal contamination are found in drinking water, water suppliers are required to issue “Boil Water Notices.” Boiling water for one minute kills the microorganisms that cause disease. Therefore, these notices serve as a precaution to the public. www.epa.gov/safewater/ faq/emerg.htm l

Chemical Contamination From Fertilizers:

Microbial Contamination:

The potential for health problems from microbialcontaminated drinking water is demonstrated by localized outbreaks of waterborne disease. Many of these outbreaks have been linked to contamination by bacteria or viruses, probably from human or animal wastes. For example, in 1999 and 2000, there were 39 reported disease outbreaks associated with drinking water, some of which were linked to public drinking water supplies.5

Certain pathogens (disease-causing microorganisms), such as Cryptosporidium, may occasionally pass through water filtration and disinfection processes in numbers high enough to cause health problems, particularly in vulnerable members of the population. Cryptosporidium causes the gastrointestinal disease, cryptosporidiosis, and can cause serious, sometimes fatal, symptoms, especially among sensitive members of the population. (See box on Sensitive Subpopulations on page 1.) A serious outbreak of cryptosporidiosis occurred in 1993 in Milwaukee, Wisconsin, causing more than 400,000 persons to be infected with the disease, and resulting in at least 50 deaths. This was the largest recorded outbreak of waterborne disease in United States history.6

Nitrate, a chemical most commonly used as a fertilizer, poses an immediate threat to infants when it is found in drinking water at levels above the national standard. Nitrates are converted to nitrites in the intestines. Once absorbed into the bloodstream, nitrites prevent hemoglobin from transporting oxygen. (Older children have an enzyme that restores hemoglobin.) Excessive levels can cause “blue baby syndrome,” which can be fatal without immediate medical attention. Infants most at risk for blue baby syndrome are those who are already sick, and while they are sick, consume food that is high in nitrates or drink water or formula mixed with water that is high in nitrates. Avoid using water with high nitrate levels for drinking. This is especially important for infants and young children, nursing mothers, pregnant women and certain elderly people.

Nitrates: Do NOT Boil

Do NOT boil water to attempt to reduce nitrates. Boiling water contaminated with nitrates increases its concentration and potential risk. If you are concerned about nitrates, talk to your health care provider about alternatives to boiling water for baby formula.

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

Excessive levels of nitrates can cause

“blue baby syndrome,” which can be fatal without immediate medical attention.

Lead Contamination:

Lead, a metal found in natural deposits, is commonly used in household plumbing materials and water service lines. The greatest exposure to lead is swallowing lead paint chips or breathing in lead dust. But lead in drinking water can also cause a variety of adverse health effects. In babies and children, exposure to lead in drinking water above the action level of lead (0.015 milligram per liter) can result in delays in physical and mental development, along with slight deficits in attention span and learning abilities. Adults who drink this water over many years could develop kidney problems or high blood pressure. Lead is rarely found in source water, but enters tap water through corrosion of plumbing materials. Very old and poorly maintained homes may be more likely to have lead pipes, joints, and solder. However, new homes are also at risk: pipes legally considered to be “lead-free” may contain up to eight percent lead. These pipes can leach significant amounts of lead in the water for the first several months after their installation. For more information on lead contamination, see www.epa.gov/safewater/contaminants/dw_contamfs/lead.html.

Lead: Do NOT Boil

Do NOT boil water to attempt to reduce lead. Boiling water increases lead concentration. Always use water from the cold tap for preparing baby formula, cooking, and drinking. Flush pipes first by running the water before using it. Allow the water to run until it’s cold. If you have high lead levels in your tap water, talk to your health care provider about alternatives to using boiled water in baby formula.

For more information on drinking water contaminants that are regulated by EPA, see Appendix A, or visit www.epa.gov/safewater/mcl.html.

Where Can I Find More Information About My Drinking Water?

Drinking water varies from place to place, depending on the water’s source and the treatment it receives. If your drinking water comes from a community water system, the system will deliver to its customers annual drinking water quality reports (or Consumer Confidence Reports). These reports will tell consumers what contaminants have been detected in their drinking water, how these detection levels compare to drinking water standards, and where their water comes from. The reports must be provided annually before July 1, and, in most cases, are mailed directly to customers’ homes. Contact your water supplier to get a copy of your report, or see if your report is posted online at www.epa.gov/safewater/dwinfo.htm. Your state’s department of health or environment can also be a valuable source of information. For help in locating these agencies, call the Safe Drinking Water Hotline. Further resources can be found in Appendix C. Information on testing household wells is on page 19.

1 Factoids: Drinking Water & Ground Water Statistics for 2002, 2003.

2 Community Water Systems Survey 2000, Volume I, 2001.

3 The Clean Water and Drinking Water Infrastructure Gap Analysis, EPA 816-R-02-020.

4 Factoids: Drinking Water and Ground Water Statistics for 2001, EPA 816-K-02-004.

5 Morbidity and Mortality Weekly Report: Surveillance for Waterborne Disease Outbreaks, United States 1999-2000, 2002.

6 25 Years of the Safe Drinking Water Act, 1999.

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

3. Where Does My Drinking Water Come From And How Is It Treated?

Your drinking water comes from surface water or ground water. The water that systems pump and treat from sources open to the atmosphere, such as rivers, lakes, and reservoirs is known as surface water. Water pumped from wells drilled into underground aquifers, geologic formations containing water, is called ground water. The quantity of water produced by a well depends on the nature of the rock, sand, or soil in the aquifer from which the water is drawn. Drinking water wells may be shallow (50 feet or less) or deep (more than 1,000 feet). More water systems have ground water than surface water as a source (approx. 147,000 v. 14,500), but more people drink from a surface water system (195 million v. 101,400). Large-scale water supply systems tend to rely on surface water resources, while smaller water systems tend to use ground water. Your water utility or public works department can tell you the source of your public water supply.

How Does Water Get To My Faucet?

An underground network of pipes typically delivers drinking water to the homes and businesses served by the water system. Small systems serving just a handful of households may be relatively simple, while large metropolitan systems can be extremely complex—sometimes consisting of thousands of miles of pipes serving millions of people. Drinking water must meet required health standards when it leaves the treatment plant. After treated water leaves the plant, it is monitored within the distribution system to identify and remedy any problems such as water main breaks, pressure variations, or growth of microorganisms.

How Is My Water Treated To Make It Safe?

Water utilities treat nearly 34 billion gallons of water every day.1 The amount and type of treatment applied varies with the source and quality of the water. Generally, surface water systems require more treatment than ground water systems because they are directly exposed to the atmosphere and runoff from rain and melting snow.

Water suppliers use a variety of treatment processes to remove contaminants from drinking water. These individual processes can be arranged in a “treatment train” (a series of processes applied in a sequence). The most commonly used processes include coagulation (flocculation and sedimentation), filtration, and disinfection. Some water systems also use ion exchange and adsorption. Water utilities select the treatment combination most appropriate to treat the contaminants found in the source water of that particular system.

Coagulation (Flocculation & Sedimentation):

Flocculation: This step removes dirt and other particles suspended in the water. Alum and iron salts or synthetic organic polymers are added to the water to form tiny sticky particles called “floc,” which attract the dirt particles.

All sources of drinking water contain some naturally occurring contaminants. At low levels, these contaminants generally are not harmful in our drinking water. Removing all contaminants would be extremely expensive, and in most cases, would not provide increased protection of public health. A few naturally occurring minerals may actually improve the taste of drinking water and may even have nutritional value at low levels.

Sedimentation: The flocculated particles then settle naturally out of the water.

Filtration: Many water treatment facilities use filtration to remove all particles from the water. Those particles

Water Treatment Plant

include clays and silts, natural organic matter, precipitates from other treatment processes in the facility, iron and manganese, and microorganisms. Filtration clarifies the water and enhances the effectiveness of disinfection.

Follow a drop of water from the source through the treatment process. Water may be treated differently in different communities depending on the quality of the water which enters the plant. Groundwater i s located underground and typically requires less treatment than water from lakes, rivers, and streams .

Sedimentation: The heavy particles (floc) settle to the bottom and the clear water moves to filtration.

Coagulation removes dirt and other particles suspended in water. Alum and other chemicals are added to water to form tiny sticky particles called “floc” which attract the dirt particles. The combined weight of the dirt and the alum (floc) become heavy enough to sink to the bottom during sedimentation.

Disinfection: A small amount of chlorine is added or some other disinfection method is used to kill any bacteria or microorganisms that may be in the water.

Storage: Water is placed in a closed tank or reservoir for disinfection to take place. The water then flows through pipes to homes and businesses in the community.

Filtration: The water passes through filters, some made of layers of sand, gravel, and charcoal that help remove even smaller particles.

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

Source: AWWA Drinking Water Week Blue Thumb Kit

Lake or Reservoir

Disinfection:

Disinfection of drinking water is considered to be one of the major public health advances of the 20th century. Water is often disinfected before it enters the distribution system to ensure that dangerous microbial contaminants are killed. Chlorine, chlorinates, or chlorine dioxides are most often used because they are very effective disinfectants, and residual concentrations can be maintained in the water system.

Disinfection Byproducts

Disinfection of drinking water is one of the major public health advances of the 20th century. However, sometimes the disinfectants themselves can react with naturally occurring materials in the water to form unintended byproducts, which may pose health risks. EPA recognizes the importance of removing microbial contaminants while simultaneously protecting the public from disinfection byproducts, and has developed regulations to limit the presence of these byproducts. For more information, see www.epa.gov/safewater/mdbp.html.

Water System Filtration Tank

Why Is My Water Bill Rising?

The cost of drinking water is rising as suppliers meet the needs of aging infrastructure, comply with public health standards, and expand service areas. In most cases, these increasing costs have caused water suppliers to raise their rates. However, despite rate increases, water is generally still a bargain compared to other utilities, such as electricity and phone service. In fact, in the United States, combined water and sewer bills average only about 0.5 percent of household income.2

1 Protect Your Drinking Water, 2002.

2 Congressional Budget Office Study: Future Investment in Drinking Water & Wastewater Infrastructure, 2002.

Water passes through charcoal, sand, and gravel layers in a water system’s filtration tank.

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

4. How Do We Use Drinking Water In Our Homes?

We take our water supplies for granted, yet they are limited. Only one percent of all the world’s water can be used for drinking. Nearly 97 percent of the world’s water is salty or otherwise undrinkable, and the other two percent is locked away in ice caps and glaciers. There is no “new” water: whether our source water is a stream, river, lake, spring, or well, we are using the same water the dinosaurs used mil lions of years ago.

How Much Water Do Homes In The U.S. Use Compared To Other Countries?

Americans use much more water each day than individuals in both developed and undeveloped countries: For example, the average European uses 53 gallons; the average Sub-Saharan citizen, 3-5 gallons.4

Common Household Uses of Drinking Water*

(*Gallons per Capita per Day)

Bathing, 20 gpcd

Toilet Flushing, 24 gpcd

DrinkingandCooking,2gpcd Garbage Disposal, 1 gpcd Dishwasher, 4 gpcd

Laundry 8.5 gpcd

Car Washing 2.5 gpcd

Water efficiency plays an important role in protecting water sources and improving water quality. By using water wisely, we can save money and help the environment. Water efficiency means using less water to provide the same benefit. Using water-saving techniques could save you hundreds of dollars each year, while also reducing the amount of pollutants entering our waterways.

How Do Drinking Water Utilities

Lawn Watering and Pools, 25 gpcd Source: Van Der Leeden, F., F. L. Troise, and D. K. Todd. The Water Encyclopedia. Lewis Publishers, Inc. Second Edition, 1990.

The average American uses about 90 gallons of water each day in the home, and each American household uses approximately 107,000 gallons of water each year.1 For the most part, we use water treated to meet drinking water standards to flush toilets, water lawns, and wash dishes, clothes, and cars. In fact, 50-70 percent of home water is used for watering lawns and gardens.2 Nearly 14 percent of the water a typical homeowner pays for is never even used—it leaks down the drain.3

Conserve Water?

Water utilities forecast water source availability, growth in population, and water demand to ensure adequate future water supplies during normal conditions, as well as periods of drought. When water shortages are predicted or experienced, water utilities have many options for conserving water. Temporary cutbacks or permanent operating adjustments can help conserve water.

Temporary cutbacks may include:

• Reduction of system-wide operating pressure, and • Water use bans, restrictions, and rationing.

www.epa.gov/safewater

Safe Drinking Water Hotline: 800-426-4791

Permanent conservation measures may include:

• Subsidizing use of water-efficient faucets, toilets, and showerheads,

• Public education and voluntary use reduction,

• Billing practices that impose higher rates for high er amounts of water use,

• Building codes that require water-efficient fixtures and appliances,

• Leak detection surveys and meter testing, repair, and replacement, and

• Reduction in use and increase in recycling of industrial water.

How Can Businesses Conserve Water?

The industrial and commercial sectors can conserve water through recycling and waste reduction. Industry has implemented conservation measures to comply with state and federal water pollution con-

trols. Evaluation of industrial plant data may show that a particular process or manufacturing step uses the most water or causes the greatest contamination. Such areas can be targeted for water conservation. Also, water that is contaminated by one process may be usable in other plant processes that do not require high-quality water.

How Can I Conserve Water?

The national average cost of water is $2.00 per 1,000 gallons. The average American family spends about $474 each year on water and sewage charges.5 American households spend an additional $230 per year on water heating costs.6 By replacing appliances such as the dishwasher and inefficient fixtures such as toilets and showerheads, you can save a substantial amount each year in water, sewage, and energy costs.

There are many ways to save water in and around your home. Here are the five that might get the best results:

Ways To Save Water At Home*

(*Water Savings as Percent of Total Interior Water Use)

Low-Flow Showerheads (or Flow Restrictors), 12 percent

Low-Water Use Clothes Washers, 5 percent

Source: Corbitt, Robert A.

Standard Handbook of Environmental Engineering. McGraw-Hill, Inc. 1989.

www.epa.gov/safewater

Low-Water Use Toilets (or Plastic Bottles or Water Dams in Toilet Reservoir), 18 percent

11

Low-Flow Aerators on Faucets (or Replacement Faucets), 2 percent

Low-Water Use Dishwasher, 4 percent

Insulation on Hot Water Lines, 4 percent

Safe Drinking Water Hotline: 800-426-4791

• Stop Leaks.

• Replace Old Toilets with models that use 1.6 gallons or less per flush.

• Replace Old Clothes Washers with EPA Energy Star certified models.

• Plant the Right Kind of Garden that requires less water.

• Provide Only the Water Plants Need.

For more information on ways to conserve water in the home, see www.epa.gov/water/waterefficiency.html or www.h2ouse.org.

1 Water Trivia Facts, EPA 80-F-95-001.

2 AWWA Stats on Tap.

3 Using Water Wisely in the Home, 2002.

4 The Use of Water Today, World Water Council.

5 Investing in America’s Water Infrastructure, 2002.

6 Using Water Wisely in the Home, 2002.

Using Water Wisely in the Home, 2002

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

Nearly 14 percent of the water a typical homeowner pays for is never even used— it leaks down the drain.

5. What’s Being Done To Improve Water Security?

What Security Measures Are In Place To Protect Water Systems?

Drinking water utilities today find themselves facing new responsibilities due to concerns over water system security and counter-terrorism. EPA is committed to the safety of public drinking water supplies and has taken numerous steps to work with utilities, other government agencies, and law enforcement to minimize threats.

The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 requires that all community water systems serving more than 3,300 people evaluate their susceptibility to potential threats and identify corrective actions. EPA has provided assistance to help utilities with these Vulnerability Assessments by giving direct grants to large systems, supporting self-assessment tools, and providing technical help and training to small and medium utilities. For more information on water system security, see www.epa.gov/safewater/security.

How Can I Help Protect My Drinking Water?

Local drinking water and wastewater systems may be targets for terrorists and other would-be criminals

wishing to disrupt and cause harm to your community

drinking water sources and wastewater collection systems may cover large areas that are difficult to secure and patrol. Residents can be educated to notice and report any suspicious activity in and around local water utilities. Any residents interested in protecting their water resources and community as a whole can join together with law enforcement, neighborhood watch groups, water suppliers, wastewater operators, and other local public health officials. If you witness suspicious activities, report them to your local law enforcement authorities.

Examples of suspicious activity might include:

• People climbing or cutting a utility fence

• People dumping or discharging material to a water reservoir

• State the nature of the incident

• Identify yourself and your location

• Identify location of activity

• Describe any vehicle involved (color, make, model, plate number)

• Describe the participants (how many, sex, race, color of hair, height, weight, clothing) For more information on water security, visit: www.epa.gov/safewater/security

6. What Can I Do If There Is A Problem With My Drinking Water?

Local incidents, such as spills and treatment problems, can lead to short-term needs for alternative water supplies or in-home water treatment. In isolated cases, individuals may need to rely on alternative sources for the long term, due to their individual health needs or problems with obtaining new drinking water supplies.

What Alternative Sources Of Water Are Available?

Bottled water is sold in supermarkets and convenience stores. Some companies lease or sell water dispensers or bubblers and regularly deliver large bottles of water to homes and businesses. It is expensive compared to water from a public water system. The bottled water quality varies among brands, because of the variations in the source water used, costs, and company practices.

The U.S. Food and Drug Administration (FDA) regulates bottled water used for drinking. While most consumers assume that bottled water is at least as safe as tap water, there are still potential risks. Although required to meet the same safety standards as public water supplies, bottled water does not undergo the same testing and reporting as water from a treatment

state may not be subject to any federal standards at all. Those with compromised immune systems may want to read bottled water labels to make sure more stringent treatments have been used, such as reverse osmosis, distillation, UV radiation, or filtration by an absolute 1 micron filter.

Check with NSF International to see if your bottled water adheres to FDA and international drinking water standards. The International Bottled Water Association can also provide information on which brands adhere to even more stringent requirements. Contact information is listed in Appendix C.

Can I Do Anything In My House To Improve The Safety Of My Drinking Water?

Most people do not need to treat drinking water in their home to make it safe. However, a home water treatment unit can improve water’s taste, or provide a factor of safety for those people more vulnerable to waterborne disease. There are different options for home treatment systems. Point-of-use (POU) systems treat water at a single tap. Point-of-entry (POE) systems treat water used throughout the house. POU systems can be installed in various places in the home, including the counter top, the faucet itself, or under the sink. POE systems are installed where the water line enters the house.

POU and POE devices are based on various contaminant removal technologies. Filtration, ion exchange, reverse osmosis, and distillation are some of the treatment methods used. All types of units are generally available from retailers, or by mail order. Prices can reach well into the hundreds and sometimes thousands of dollars, and depending on the method and location of installation, plumbing can also add to the cost.

Safe Drinking Water Hotline: 800-426-4791

TREATMENT DEVICEWHAT IT DOES TO WATERTREATMENT LIMITATIONS

Activated Carbon Filter (includes mixed media that remove heavy metals)

Adsorbs organic contaminants that cause taste and odor problems.

Somedesigns remove chlorination byproducts;

Some types remove cleaning solvents and pesticides

Is efficient in removing metals such as lead and copper

Does not remove nitrate, bacteria or dissolved minerals

Ion Exchange Unit (with activated alumina)

Reverse Osmosis Unit (with carbon)

Removes minerals, particularly calcium and magnesium that make water “hard”

Some designs remove radium and barium

Removes fluoride

Removes nitrates, sodium, other dissolved inorganics and organic compounds

Removes foul tastes, smells or colors

May also reduce the level of some pesticides, dioxins and chloroform and petrochemicals

Distillation Unit

Removes nitrates, bacteria, sodium, hardness, dissolved solids, most organic compounds, heavy metals, and radionucleides

Kills bacteria

Activated carbon filters adsorb organic contaminants that cause taste and odor problems. Depending on their design, some units can remove chlorination byproducts, some cleaning solvents, and pesticides.

To maintain the effectiveness of these units, the carbon canisters must be replaced periodically. Activated carbon filters are efficient in removing metals such as lead and copper if they are designed to absorb or remove lead.

Because ion exchange units can be used to remove minerals from your water, particularly calcium and magnesium, they are sold for water softening. Some ion exchange softening units remove radium and barium from water. Ion exchange systems that employ activated alumina are used to remove fluoride and

If water has oxidized iron or iron bacteria, the ion-exchange resin will become coated or clogged and lose its softening ability

Does not remove all inorganic and organic contaminants

Does not remove some volatile organic contaminants, certain pesticides and volatile solvents

Bacteria may recolonize on the cooling coils during inactive periods

arsenate from water. These units must be regenerated periodically with salt.

Reverse osmosis treatment units generally remove a more diverse list of contaminants than other systems. They can remove nitrates, sodium, other dissolved inorganics, and organic compounds.

Distillation units boil water and condense the resulting steam to create distilled water. Depending on their design, some of these units may allow vaporized organic contaminants to condense back into the product water, thus minimizing the removal of organics.

You may choose to boil your water to remove microbial contaminants. Keep in mind that boiling reduces

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the volume of water by about 20 percent, thus concentrating those contaminants not affected by the temperature of boiling water, such as nitrates and

Maintaining Treatment Devices

All POU and POE treatment units need maintenance to operate effectively. If they are not maintained properly, contaminants may accumulate in the units and actually make your water worse. In addition, some vendors may make claims about their effectiveness that have no merit. Units are tested for their safety and effectiveness by two organizations, NSF International and Underwriters Laboratory. In addition, the Water Quality Association represents the household, commercial, industrial and small community treatment industry and can help you locate a professional that meets their code of ethics. EPA does not test or certify these treatment units.

pesticides. For more information on boiling water, see page 5 of this booklet.

No one unit can remove everything. Have your water tested by a certified laboratory prior to purchasing any device. Do not rely on the tests conducted by salespeople that want to sell you their product.

Where Can I Learn More About Home Treatment Systems?

Your local library has articles, such as those found in consumer magazines, on the effectiveness of these devices.

The U.S. General Accounting Office published a booklet called Drinking Water: Inadequate Regulation of Home Treatment Units Leaves Consumers At Risk (December 1991). To read this booklet, visit www.gao.gov and search for document number RCED-92-34, or call (202) 512-6000.

Safe Drinking Water Hotline: 800-426-4791

7. How Safe Is The Drinking Water In My Household Well?

EPA regulates public water systems; it does not have the authority to regulate private wells. Approximately 15 percent of Americans rely on their own private drinking water supplies (Drinking Water from Household Wells, 2002), and these supplies are not subject to EPA standards. Unlike public drinking water systems serving many people, they do not have experts regularly checking the water’s source and its quality before it is sent to the tap. These households must take special precautions to ensure the protection and maintenance of their drinking water supplies.

Drinking Water from Household Wells is an EPA publication available to specifically address special concerns of a private drinking water supply. To learn more, or to obtain a copy, visit www.epa.gov/safewater/ privatewells, or call the Safe Drinking Water Hotline.

How Much Risk Can I Expect?

The risk of having problems depends on how good your well is—how well it was built and located, and how well you maintain it. It also depends on your local environment. That includes the quality of the aquifer from which your water is drawn and the human activities going on in your area that can affect your well.

Several sources of pollution are easy to spot by sight, taste, or smell. However, many serious problems can be found only by testing your water. Knowing the possible threats in your area will help you decide the kind of tests you may need.

What Should I Do?

There are six basic steps you can take to help protect your private drinking water supply:

1. Identify potential problem sources.

2. Talk with local experts.

3. Have your water tested periodically.

4. Have the test results interpreted and explained clearly.

5. Set and follow a regular maintenance schedule for your well, and keep up-to-date records.

6. Immediately remedy any problems.

Identify Potential Problem Sources

Understanding and spotting possible pollution sources is the first step to safeguarding your drinking water. If your drinking water comes from a well, you may also have a septic system. Septic systems and other on-site wastewater disposal systems are major potential sources of contamination of private water supplies if they are poorly maintained or located improperly, or if they are used for disposal of toxic chemicals. Information on septic systems is available from local health departments, state agencies, and the National Small Flows Clearinghouse (www.epa.gov/owm/ mab/smcomm/nsfc.htm) at (800) 624-8301. A septic system design manual and guidance on system maintenance are available from EPA (www.epa.gov/ OW-OWM.html/mtb/decent/homeowner.htm).

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

Talk With Local Experts

Ground water conditions vary greatly from place to place, and local experts can give you the best information about your drinking water supply. Some examples are your health department’s “sanitarian,” local water-well contractors, public water system officials, county extension agents of the Natural Resources Conservation Service (NRCS), local or county planning commissions, and your local library.

Have Your Water Tested Periodically

Test your water every year for total coliform bacteria, nitrates, total dissolved solids, and pH levels. If you suspect other contaminants, test for these as well. As the tests can be expensive, limit them to possible problems specific to your situation. Local experts can help you identify these contaminants. You should also test your water after replacing or repairing any part of the system, or if you notice any change in your water’s look, taste, or smell.

Often, county health departments perform tests for bacteria and nitrates. For other substances, health departments, environmental offices, or county governments should have a list of state-certified laboratories. Your State Laboratory Certification Officer can also provide you with this list. Call the Safe Drinking Water Hotline for the name and number of your state’s certification officer. Any laboratory you use should be certified to do drinking water testing.

Have Your Test Results Interpreted And Explained Clearly

Compare your well’s test results to federal and state drinking water standards (see Appendix A, or visit www.epa.gov/safewater/mcl.html or call the Safe Drinking Water Hotline). You may need to consult experts to aid you in understanding your results, such as the state agency that licenses water well contractors, your local health department, or your state’s drinking water program.

Protecting Your Ground Water Supply

• Periodically inspect exposed parts of the well for problems such as: - Cracked, corroded, or damaged well casing

- Broken or missing well cap - Settling and cracking of surface seals.

• Slope the area around the well to drain sur face runoff away from the well.

• Install a well cap or sanitary seal to prevent unauthorized use of, or entry into, the well.

• Disinfect drinking water wells at least once per year with bleach or hypochlorite granules, according to the manufacturer’s directions.

• Have the well tested once a year for coli form bacteria, nitrates, and other constituents of concern.

• Keep accurate records of any well main tenance, such as disinfection or sediment removal, that may require the use of chem icals in the well.

• Hire a certified well driller for any new well construction, modification, or abandonment and closure.

• Avoid mixing or using pesticides, fertilizers, herbicides, degreasers, fuels, and other pollutants near the well.

• Do not dispose of wastes in dry wells or in abandoned wells.

• Do not cut off the well casing below the land surface.

• Pump and inspect septic systems as often as recommended by your local health department.

• Never dispose of hazardous materials in a septic system.

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

Set A Regular Maintenance Schedule For Your Well And Your Septic System

Proper well and septic system construction and continued maintenance are keys to the safety of your water supply. Your state water well and septic system contractor licensing agency, local health department, or local public water system professional can provide information on well construction. Make certain your contractors are licensed by the state, if required, or certified by the National Ground Water Association.

Maintain your well, fixing problems before they reach crisis levels, and keep up-to-date records of well installation and repairs, as well as plumbing and water costs. Protect your own well area from contamination.

Immediately Remedy Any Problems

If you find that your well water is contaminated, fix the problem as soon as possible. Consider connecting into a nearby community water system, if one is available. You may want to install a water treatment device to remove impurities. Information on these devices is provided

on page 16. If you connect to a public water system, remember to close your well properly.

After A Flood-Concerns And Advisories

• Stay away from well pump to avoid electric shock.

• Do not drink or wash from a flooded well.

• Pump the well until water runs clear.

• If water does not run clear, contact the county or state health department or extension service for advice.

8. What You Can Do To Protect Your Drinking Water

Drinking water protection is a shared responsibility. Many actions are underway to protect our nation’s drinking water, and there are many opportunities for citizens to become involved.

Be Involved!

EPA activities to protect drinking water include setting drinking water standards and overseeing the work of states that enforce federal standards—or stricter ones set by the individual state. EPA holds many public meetings on issues ranging from proposed drinking water standards to the development of databases. You can also comment on proposed drafts of other upcoming EPA documents. A list of public meetings and regulations open for comment can be found at www.epa.gov/safewater/pubinput/html.

Be Informed!

• Read the annual Consumer Confidence Report provided by your water supplier. Some Consumer Confidence Reports are available at www.epa.gov/ safewater/dwinfo.htm.

• Use information from your state’s Source Water Assessment to learn about potential threats to your water source.

• If you are one of the 15 percent of Americans who uses a private source of drinking water—such as a well, cistern, or spring—find out what activities are taking place in your watershed that may impact your drinking water; talk to local experts/ test your water periodically; and maintain your well properly.

• Find out if the Clean Water Act standards for your drinking water source are intended to protect water for drinking, in addition to fishing and swimming.

Be Observant!

• Look around your watershed and look for announcements in the local media about activities that may pollute your drinking water.

• Form and operate a citizens watch network within your community to communicate regularly with law enforcement, your public water supplier and wastewater operator. Communication is key to a safer community!

• Be alert. Get to know your water/wastewater utilities, their vehicles, routines and their personnel.

• Become aware of your surroundings. This will help you to recognize suspicious activity as opposed to normal daily activities.

Other Ways To Get Involved

• Attend public hearings on new construc tion, storm water permitting, and town planning.

• Keep your public officials accountable by asking to see their environmental impact statements.

• Ask questions about any issue that may affect your water source.

• Participate with your government and your water system as they make funding decisions.

• Volunteer or help recruit volunteers to par ticipate in your community’s contaminant monitoring activities.

• Help ensure that local utilities that protect your water have adequate resources to do their job.

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

• If you see any suspicious activities in or around your water supply, please notify local authorities or call 9-1-1 immediately to report the incident.

Stormwater runoff threatens our sources of drinking water. As this water washes over roofs, pavement, farms and grassy areas, it picks up fertilizers, pesticides and litter, and deposits them in surface water and ground water. Here are some other threats to our drinking water:

Every year:

• We apply 67 million pounds of pesticides that contain toxic and harmful chemicals to our lawns.

• We produce more than 230 million tons of municipal solid water—approximately five pounds of trash or garbage per person per day—that contain bacteria, nitrates, viruses, synthetic detergents, and household chemicals.

• Our more than 12 million recreational and houseboats and 10,000 boat marinas release solvents, gasoline, detergents, and raw sewage directly into our rivers, lakes and streams.

www.epa.gov/safewater

Don’t Contaminate!

• Reduce paved areas: use permeable surfaces that allow rain to soak through, not run off.

• Reduce or eliminate pesticide application: test your soil before applying chemicals, and use plants that require little or no water, pesticides, or fertilizers.

• Reduce the amount of trash you create: reuse and recycle.

• Recycle used oil: 1 quart of oil can contaminate 2 million gallons of drinking water—take your used oil and antifreeze to a service station or recycling center.

• Take the bus instead of your car one day a week: you could prevent 33 pounds of carbon dioxide emissions each day.

• Keep pollutants away from boat marinas and waterways: keep boat motors well-tuned to prevent leaks, select nontoxic cleaning products and use a drop cloth, and clean and maintain boats away from the water.

For more information on how you can help protect your local drinking water source, call the Safe Drinking Water Hotline, or check www.epa.gov/ safewater/publicoutreach. Additional resources are listed in Appendix C.

Safe Drinking Water Hotline: 800-426-4791

Betaphotonemitters

Addedtowaterduringsewage/ zero increasedriskofcancer wastewatertreatment

Erosionofnaturaldepositsofcertain zero

mayemitaformofradiationknown asalpharadiation

fromorchards;runofffromglass& riskofgettingcancer electronicsproductionwastes

Dischargeofdrillingwastes;discharge 2 from metal reineries; erosion ofnaturaldeposits

Discharge from metal reineries and 0.004 coal-burningfactories;discharge fromelectrical,aerospace,and defenseindustries

Decayofnaturalandman-made zero

depositsofcertainmineralsthatare radioactiveandmayemitformsof radiationknownasphotonsandbeta radiation

Bromate

Cadmium

Byproductofdrinkingwaterdisinfection zero

Corrosionofgalvanizedpipes;erosion 0.005 ofnaturaldeposits;discharge from metal reineries; runoff from wastebatteriesandpaints

Wateradditiveusedtocontrol MRDLG=41 microbes

Dischargefromchemicalandagricultural 0.1 chemicalfactories

presenceindicatesthatthewatermaybecontaminated withhumanoranimalwastes.Microbesinthesewastes maycauseshorttermeffects,suchasdiarrhea,cramps, nausea,headaches,orothersymptoms.Theymayposea specialhealthriskforinfants,youngchildren,andpeople withseverelycompromisedimmunesystems.

Hexachlorocyclopentadiene 0.05 Kidneyorstomachproblems Dischargefromchemicalfactories 0.05

Lead TT5; Infantsandchildren:Delaysinphysicalor Corrosionofhouseholdplumbing zero Action ormentaldevelopment;childrencould systems;erosionofnaturaldeposits Level=0.015 show slight deicits in attention span andlearningabilities;Adults:Kidney problems;highbloodpressure

Legionella TT7 Legionnaire’sDisease,atypeof

Foundnaturallyinwater;multipliesin zero pneumonia heatingsystems

Lindane 0.0002 Liverorkidneyproblems

Mercury(inorganic) 0.002

Kidneydamage

Runoff/leachingfrominsecticideused 0.0002 oncattle,lumber,gardens

Erosionofnaturaldeposits;discharge 0.002 from reineries and factories; runoff from landills and croplands

onfruits,vegetables,alfalfa,livestock

Nitrate(measuredas 10

Infantsbelowtheageofsixmonthswho

Runofffromfertilizeruse;leaching 10 Nitrogen) drinkwatercontainingnitrateinexcess fromseptictanks,sewage;erosionof oftheMCLcouldbecomeseriouslyill naturaldeposits and,ifuntreated,maydie.Symptoms includeshortnessofbreathandblue-baby syndrome.

Nitrite(measuredas 1

Infantsbelowtheageofsixmonthswho

Runofffromfertilizeruse;leaching 1 Nitrogen) drinkwatercontainingnitriteinexcess fromseptictanks,sewage;erosionof oftheMCLcouldbecomeseriouslyill naturaldeposits and,ifuntreated,maydie.Symptoms includeshortnessofbreathandblue-baby syndrome.

Oxamyl(Vydate) 0.2 Slightnervoussystemeffects

Pentachlorophenol 0.001

Runoff/leachingfrominsecticideused 0.2 onapples,potatoes,andtomatoes

Dischargefromwood-preserving zero cancerrisk factories

Liverorkidneyproblems;increased

Picloram 0.5 Liverproblems Herbiciderunoff 0.5 Polychlorinated biphenyls 0.0005 Skin changes; thymus gland problems; Runoff from landills; discharge of zero (PCBs) immune deiciencies; reproductive or waste chemicals nervous system dificulties; increased riskofcancer

Radium226and 5pCi/L

Increasedriskofcancer

Erosionofnaturaldeposits zero Radium228(combined)

ortoes;circulatoryproblems erosionofnaturaldeposits;discharge frommines Simazine

Herbiciderunoff 0.004

Dischargefromrubberandplastic 0.1 factories; leaching from landills

Leachingfromore-processingsites; 0.0005 orliverproblems dischargefromelectronics,glass, anddrugfactories

Turbidity TT7

Turbidityisameasureofthecloudinessofwater. Soilrunoff

It is used to indicate water quality and iltration effectiveness(e.g.,whetherdisease-causingorganisms arepresent).Higherturbiditylevelsareoftenassociated withhigherlevelsofdisease-causingmicroorganisms suchasviruses,parasitesandsomebacteria.These organismscancauseshorttermsymptomssuchas nausea,cramps,diarrhea,andassociatedheadaches.

Uranium 30µg/L Increasedriskofcancer,kidneytoxicity Erosionofnaturaldeposits zero

Vinylchloride 0.002 Increasedriskofcancer LeachingfromPVCpipes;discharge zero fromplasticfactories

Viruses(enteric) TT7

Short-termexposure:Gastrointestinalillness Humanandanimalfecalwaste zero (e.g.,diarrhea,vomiting,cramps)

Xylenes(total) 10 Nervoussystemdamage

Dischargefrompetroleumfactories; 10 dischargefromchemicalfactories

NOTES

1 Definitions

• Maximum Contaminant Level Goal (MCLG)—The level of a contaminant in drinking water below which there is no known or expected risk to health. MCLGs allow for a margin of safety and are non-enforceable public health goals.

• Maximum Contaminant Level (MCL)—The highest level of a contaminant that is allowed in drinking water. MCLs are set as close to MCLGs as feasible using the best available treatment technology and taking cost into consideration. MCLs are enforceable standards.

• Maximum Residual Disinfectant Level Goal (MRDLG)—The level of a drinking water disinfectant below which there is no known or expected risk to health. MRDLGs do not reflect the benefits of the use of disinfectants to control microbial contaminants.

• Maximum Residual Disinfectant Level (MRDL)—The highest level of a disinfectant allowed in drinking water. There is convincing evidence that addition of a disinfectant is necessary for control of microbial contaminants.

• Treatment Technique (TT)—A required process intended to reduce the level of a contaminant in drinking water.

2 Units are in milligrams per liter (mg/L) unless otherwise noted. Milligrams per liter are equivalent to parts per million (ppm).

3 Health effects are from long-term exposure unless specified as short-term exposure.

4 Each water system must certify annually, in writing, to the state (using third-party or manufacturers certification) that when it uses acrylamide and/or epichlorohydrin to treat water, the combination (or product) of dose and monomer level does not exceed the levels specified, as follows: Acrylamide = 0.05 percent dosed at 1 mg/L (or equivalent); Epichlorohydrin = 0.01 percent dosed at 20 mg/L (or equivalent).

5 Lead and copper are regulated by a Treatment Technique that requires systems to control the corrosiveness of their water. If more than 10 percent of tap water samples exceed the action level, water systems must take additional steps. For copper, the action level is 1.3 mg/L, and for lead is 0.015 mg/L.

6 A routine sample that is fecal coliform-positive or E. coli-positive triggers repeat samples--if any repeat sample is total coliform-positive, the system has an acute MCL violation. A routine sample that is total coliform-positive and fecal coliform-negative or E. coli-negative triggers repeat samples--if any repeat sample is fecal coliform-positive or E. coli-positive, the system has an acute MCL violation. See also Total Coliforms.

7 EPA’s surface water treatment rules require systems using surface water or ground water under the direct influence of surface water to (1) disinfect their water, and (2) filter their water or meet criteria for avoiding filtration so that the following contaminants are controlled at the following levels: • Cryptosporidium: 99 percent removal for systems that filter. Unfiltered systems are required to include Cryptosporidium in their existing watershed control provisions.

• Giardia lamblia: 99.9 percent removal/inactivation

• Viruses: 99.99 percent removal/inactivation

• Legionella: No limit, but EPA believes that if Giardia and viruses are removed/inactivated according to the treatment techniques in the surface water treatment rule, Legionella will also be controlled.

• Turbidity: For systems that use conventional or direct filtration, at no time can turbidity (cloudiness of water) go higher than 1 nephelolometric turbidity unit (NTU), and samples for turbidity must be less than or equal to 0.3 NTU in at least 95 percent of the samples in any month. Systems that use filtration other than conventional or direct filtration must follow state limits, which must include turbidity at no time exceeding 5 NTU.

• HPC: No more than 500 bacterial colonies per milliliter

• Long Term 1 Enhanced Surface Water Treatment; Surface water systems or ground water systems under the direct influence of surface water serving fewer than 10,000 people must comply with the applicable Long Term 1 Enhanced Surface Water Treatment Rule provisions (e.g. turbidity standards, individual filter monitoring, Cryptosporidium removal requirements, updated watershed control requirements for unfiltered systems).

• Long Term 2 Enhanced Surface Water Treatment; This rule applies to all surface water systems or ground water systems under the direct influence of surface water. The rule targets additional Cryptosporidium treatment requirements for higher risk systems and includes provisions to reduce risks from uncovered finished water storages facilities and to ensure that the systems maintain microbial protection as they take steps to reduce the formation of disinfection byproducts. (Monitoring start dates are staggered by system size. The largest systems (serving at least 100,000 people) will begin monitoring in October 2006 and the smallest systems (serving fewer than 10,000 people) will not begin monitoring until October 2008. After completing monitoring and determining their treatment bin, systems generally have three years to comply with any additional treatment requirements.)

• Filter Backwash Recycling: The Filter Backwash Recycling Rule requires systems that recycle to return specific recycle flows through all processes of the system’s existing conventional or direct filtration system or at an alternate location approved by the state.

8 No more than 5.0 percent samples total coliform-positive in a month. (For water systems that collect fewer than 40 routine samples per month, no more than one sample can be total coliform-positive per month.) Every sample that has total coliform must be analyzed for either fecal coliforms or E. coli. If two consecutive TC-positive samples, and one is also positive for E. coli or fecal coliforms, system has an acute MCL violation.

9 Although there is no collective MCLG for this contaminant group, there are individual MCLGs for some of the individual contaminants:

• Haloacetic acids: dichloroacetic acid (zero); trichloroacetic acid (0.3 mg/L)

• Trihalomethanes: bromodichloromethane (zero); bromoform (zero); dibromochloromethane (0.06 mg/L)

Appendix B: References

US EPA Publications

25 Years of the Safe Drinking Water Act: History & Trends EPA 816-R-99-007

Community Water Systems Survey 2000, Volume I EPA 815-R-02-0054

Drinking Water Costs and Federal Funding EPA 810-F-99-014

Drinking Water from Household Wells EPA 816-K-02-003

Drinking Water Priority Rulemaking: Microbial and Disinfection Byproduct Rules EPA 816-F-01-012

Drinking Water Treatment EPA 810-F-99-013

Factoids: Drinking Water and Ground Water Statistics for 2001 EPA 815-K-02-004

Factoids: Drinking Water and Ground Water Statistics for 2002 EPA 816–K-03-001

Fact Sheet: 1999 Drinking Water Infrastructure Needs Survey EPA 816-F-01-001

“Investing in America’s Water Infrastructure” Keynote Address by G. Tracy Mehan III to the Schwab Capital Markets’ Global Water Conference

Protect Your Drinking Water EPA 816-F-02-012

Public Access to Information & Public Involvement

EPA 810-F-99-021

Report to Congress: EPA Studies on Sensitive Subpopulations and Drinking Water Contaminants EPA 815-R-00-015

Safe Drinking Water Act-Protecting America’s Public Health EPA 816-H-02-003

Safe Drinking Water Act: Underground Injection Control Program: Protecting Public Health and Drinking Water Resources EPA 816-H-01-003

The Clean Water and Drinking Water Infrastructure Gap Analysis EPA 816-F-02-017

The Drinking Water State Revolving Fund: Protecting the Public Through Drinking Water Infrastructure Improvements EPA 819-F-00-028

Understanding the Safe Drinking Water Act EPA 810-F-99-008

Using Water Wisely in the Home EPA 800-F-02-001

Featured Consumer Information Resources

Download the following documents from EPA’s New Drinking Water Consumer Information Web site: http://www.epa.gov/safewater/consumerinformation/

Or order hard copies from EPA’s National Service Center for Environmental Publications: HYPERLINK “http://www.epa.gov/ nscep” http://www.epa.gov/nscep or 1-800-490-9198

Public Health and Emergency Information:

Bottled Water Basics, 816-K-05-003

Filtration Facts, 816-K-05-002

Emergency Disinfection of Drinking Water English, 816-F-06-027 Spanish, EPA 816-F-06-028 French, 816-F-06-045 Arabic, 816-F-06-030 Vietnamese, 816-F-06-029

What to Do After the Flood English, 816-F-05-021 Spanish, 816-F-05-021 Vietnamese, 816-F-05-025

Is There Lead In My Drinking Water? 816-F-05-001

Guidance for People with Severely Weakened Immune Systems, 816-F-99-005

Public Involvement in Water Security Web site, a compilation of resources to help increase public awareness of water security issues and to give citizens information and guidance to help them prepare for potential emergency incidents and incorporate security activities into their daily lives, http://cfpub.epa.gov/safewater/watersecurity/publicInvolve.cfm

Environmental Education:

Thirstin’s Drinking Water Games and Activities (CD-ROM), 816-C-04-008

Virtual Tour of a Water Treatment Plant (CD-ROM), 816-C-06-002

Find answers to your questions about drinking water and ground water programs authorized under the Safe Drinking Water Act in EPA’s dynamic question and answer database, http://www.epa.gov/safewater/drinklink.html.

Publications From Outside Sources

Centers for Disease Control and Prevention. Morbidity and Mortality Weekly Report: Surveillance for Waterborne-Disease OutbreaksUnited States-1999-2000.

Congressional Budget Office. Future Investment in Drinking Water & Wastewater Infrastructure

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

Appendix C: Sources of Additional Information

American Water Works Association Public Affairs Department 6666 West Quincy Avenue Denver, CO 80235 Phone (303) 794-7711 www.awwa.org

Association of Metropolitan Water Agencies 1620 I Street NW Suite 500 Washington, DC 20006 Phone (202) 331-2820 Fax (202) 785-1845 www.amwa.net

Association of State Drinking Water Administrators 1401 Wilson Blvd. Suite 1225 Arlington, VA 22209 Phone (703) 812-9505 www.asdwa.org

Clean Water Action 4455 Connecticut Avenue NW Suite A300 Washington, DC 20008 Phone (202) 895-0420 www.cleanwater.org

Consumer Federation of America 1620 I Street NW Suite 200 Washington, DC 20006 Phone (202) 387-6121 www.consumerfed.org

The Groundwater Foundation P.O. Box 22558 Lincoln, NE 68542 Phone (800) 858-4844 www.groundwater.org

The Ground Water Protection Council 13308 N. Mac Arthur Oklahoma City, OK 73142 Phone (405) 516-4972 www.gwpc.org

www.epa.gov/safewater

International Bottled Water Association 1700 Diagonal Road Suite 650 Alexandria, VA 22314 Phone (703) 683-5213 Information Hotline 1-800-WATER-11 ibwainfo@bottledwater.org

National Association of Regulatory Utility Commissioners 1101 Vermont Ave NW Suite 200 Washington, DC 20005 Phone (202) 898-2200 www.naruc.org

National Association of Water Companies 2001 L Street NW Suite 850 Washington, DC 20036 Phone (202) 833-8383 www.nawc.org

National Drinking Water Clearinghouse West Virginia University P.O. Box 6064 Morgantown, WV 26506 Phone (800) 624-8301 www.ndwc.wvu.edu

National Ground Water Association 601 Dempsey Rd Westerville, OH 43081-8978 Phone: (800) 551-7379 www.ngwa.org

National Rural Water Association 2915 South 13th Street Duncan, OK 73533 Phone (580) 252-0629 www.nrwa.org

Natural Resources Defense Council 40 West 20th Street New York, NY 10011 Phone (212) 727-2700 www.nrdc.org

Safe Drinking Water Hotline: 800-426-4791

30

NSF International

P.O. Box 130140 789 North Dixboro Road Ann Arbor, MI 48113 Phone (800) NSF-MARK www.nsf.org

Rural Community Assistance Program 1522 K Street NW Suite 400 Washington, DC 20005 Phone (800) 321-7227 www.rcap.org

Underwriters Laboratories Corporate Headquarters 2600 N.W. Lake Road Camas, WA 98607 Phone (877) 854-3577 www.ul.com

Water Quality Association 4151 Naperville Road Lisle, IL 60532 Phone (630) 505-0160 www.wqa.org

U.S. Environmental Protection Agency Water Resource Center 1200 Pennsylvania Avenue NW RC-4100T Washington, DC 20460 SDWA Hotline (800) 426-4791 www.epa.gov/safewater

Water Systems Council National Programs Office 101 30th Street NW Suite 500 Washington, D.C. 20007 Phone: (202) 625-4387 Wellcare Hotline 888-395-1033 www.watersystems council.org

EPA Region 1 (CT, ME, MA, NH, RI, VT) Phone (888) 372-7341 Phone (617) 918-1614

EPA Region 2 (NJ, NY, PR, VI) Phone (212) 637-3000

EPA Region 3 (DE, DC, MD, PA, VA, WV) Phone (215) 814-5000

EPA Region 4 (AL, FL, GA, KY, MS, NC, SC, TN) Phone (404) 562-9900

EPA Region 5 (IL, IN, MI, MN, OH, WI) Phone (312) 353-2000

EPA Region 6 (AR, LA, NM, OK, TX) Phone (214) 665-2200

EPA Region 7 (IA, KS, MO, NE) Phone (913) 551-7003

EPA Region 8 (CO, MT, ND, SD, UT, WY) Phone (303) 312-6312

EPA Region 9 (AZ, CA, HI, NW, AS GU) Phone (415) 947-8000

EPA Region 10 (AK, ID, OR, WA) Phone (206) 553-1200

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

Appendix D: Glossary

Action Level

The level of lead and copper which, if exceeded, triggers treatment or other requirements that a water system must follow.

Aquifer

A natural underground layer, often of sand or gravel, that contains water

Coliform

A group of related bacteria whose presence in drinking water may indicate contamination by disease-causing microorganisms

Community Water System (CWS)

A water system that supplies drinking water to 25 people or more year-round in their residences

Contaminant

Anything found in water (including microorganisms, radionuclides, chemicals, minerals, etc.) which may be harmful to human health

Cryptosporidium

Microorganism found commonly in lakes and rivers which is highly resistant to disinfection.

Disinfectant

A chemical (commonly chlorine, chloramines, or ozone) or physical process (e.g., ultraviolet light) that kills microorganisms such as viruses, bacteria, and protozoa

Distribution System

A network of pipes leading from a treatment plant to customers’ plumbing systems

Ground Water

Water that is pumped and treated from an aquifer

Inorganic Contaminants

Mineral-based compounds such as metals, nitrates, and asbestos; naturally occurring in some water, but can also enter water through human activities

Maximum Contaminant Level

The highest level of a contaminant that EPA allows in drinking water (legally enforceable standard)

Maximum Contaminant Level Goal

The level of a contaminant at which there would be no risk to human health (not a legally enforceable standard)

Microorganisms

Tiny living organisms that can be seen only under a microscope; some can cause acute health problems when consumed in drinking water

Non-Transient Non-Community Water System

A non-community water system that serves the same people more than six months of the year, but not year-round

Organic Contaminants

Carbon-based chemicals, such as solvents and pesticides, which enter water through cropland runoff or discharge from factories

Pathogen

Disease-causing organism

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

Public Water System (PWS)

A water system which supplies drinking water to at least 25 people, at least 60 days each year

Sensitive Subpopulation

People who may be more vulnerable to drinking water contamination, such as infants, children, some elderly, and people with severely compromised immune systems

Septic System

Used to treat sanitary waste; can be a significant threat to water quality due to leaks or runoff

Source Water

Water in its natural state, prior to any treatment for drinking (i.e., lakes, streams, ground water)

Surface Water

Water that is pumped and treated from sources open to the atmosphere, such as rivers, lakes, and reservoirs

Transient Non-Community Water System

A non-community water system that serves the public but not the same individuals for more than six months

Violation

Failure to meet any state or federal drinking water regulation

Vulnerability Assessment

An evaluation of drinking water source quality and its vulnerability to contamination by pathogens and toxic chemicals

Watershed

The land area from which water drains into a stream, river, or reservoir

Well

A bored, drilled or driven shaft whose depth is greater than the largest surface dimension, a dug hole whose depth is greater than the largest surface dimension, an improved sinkhole, or a subsurface fluid distribution system

www.epa.gov/safewater Safe Drinking Water Hotline: 800-426-4791

Well Owner’s Manual

A Water Systems Council Publication

Well Owner’s Manual

Well Owner’s Manual

Table of Contents

Your Water Well System

Important Records

If you are among the millions of Americans who rely on a private water well system for your household water supply, you can rest assured that your properly constructed well and pump system will provide you with many years of service.

This is a good place to keep the basic information you need to protect your investment and keep your well operating at its best. It is also a good place to keep a log of water testing results and maintenance performed.

These records are a good reference for someone you may hire to do an inspection or repair work to your well, if and when that is ever necessary. These records are also useful information for you or contractors to consult when you landscape or build on your property. Finally, they offer important information about your well for anyone who may purchase your property in the future.

Your Well Permit and Well Completion Report

In most states before a well is drilled, the well contractor or property owner is required to get a well permit. This permit includes basic information on the location and design of your well. Often, this permit is issued by the health department.

When your well was completed, your well contractor was required to file a well completion report with the agency responsible for wells in your state. The well completion report contains more important details on your well’s location, size and depth, as well as on materials used in construction and water quality. Keep copies of your well permit and well completion report with this manual for future reference.

If you don’t have your well permit or well completion report, contact the well contractor who installed your well or your county or state health department. They may be able to locate these records.

Well Data

Depthft. Diameterin. Estimated flowgal. per min.

Hole sizeinches from ft. to ft. inches from ft. to ft. inches from ft. to ft. inches from ft. to ft.

Casing sizeinches from ft. to ft. Type inches from ft. to ft. Type inches from ft. to ft. Type inches from ft. to ft.. Type

Screen sizeinches from ft. to ft. Type inches from ft. to ft. Type

Gravel Pack? If yes: from ft. to ft. Size_____________________ Grout? If yes: from ft. to ft. Type_____________________

Pump Information

Manufacturer

Tank Information

Where Your Water Comes From

Groundwater is used for drinking water by 44% of the people in the United States, including those with private wells and public water customers. Groundwater is a renewable, reliable source for cool, pure water.

Groundwater from deep, drilled wells is naturally filtered and less likely to be contaminated than surface water in lakes and rivers. Deep, drilled wells recharge themselves and can provide a constant, steady supply of water even during bouts of dry weather.

What is Groundwater?

Groundwater, which accounts for 90% of the world’s fresh water, occurs below the ground, where it is filtered and purified naturally as it passes through layers of the earth. Groundwater is stored in aquifers -- layers of soil, sand and rocks -but can come to the surface naturally through a spring or brought to the surface through a well. More than 43 million Americans depend on individual wells for their drinking water.

Water on the earth is constantly moving. The water cycle, pictured below, describes the continuous movement of water on, above and below the earth’s surface. Water can change states (liquid, vapor, ice) at various stages of the water cycle.

When water falls as rain, hail or snow, some of it collects as surface water. The rest seeps into the earth to become groundwater. Groundwater flows slowly underground and emerges again as surface water. Evaporation of surface water takes place and the cycle begins again.

wellcare® information for you about

wellcare® information for you about

Where Your Water Comes From

Steps You Should Take to Protect Your Groundwater and Well Water

Maintain your well.

Keep household chemicals and paint away from your well and dispose of them properly. Take used motor oil to a recycling center.

Limit your use of pesticides and fertilizers.

Install a well cap and keep it clear of leaves, mulch, dirt, snow, or other materials.

Be careful when you mow around your well so you don’t damage the well casing.

And remember...even though your well can meet all the water needs of a modern household, it is important to conserve water to protect the nation’s groundwater resources.

For More Information on Groundwater

Your local well contractor, health department, cooperative extension service and state environmental or natural resources agency can provide you with more information about groundwater in your area. For help with locating these agencies, contact the wellcare® Hotline toll free at 888-395-1033 or check your local telephone directory.

Water from modern wells is naturally filtered, cool and pure.

Three Basic Types of Wells

Bored or “shallow” wells are usually bored into an unconfined water source, generally found at depths of about 100 feet or less.

Consolidated or “rock” wells are drilling into a formation consisting entirely of a natural rock formation that contains no soil and does not collapse. Their average depth is about 250 feet.

Unconsolidated or “sand” wells are drilled into a formation consisting of soil, sand, gravel or clay material that collapses upon itself.

Well Construction

All private well construction is based on establishing the right location for the well, sizing the system correctly and choosing the proper construction techniques. Only a professional water well contractor should install a well! They know the hydrogeology in your area and all the local codes and regulations for wells. They also have the modern equipment and expertise needed to make sure that your well is properly constructed to meet the water needs of your family.

Your well is located on your property according to certain regulations required by the state, county or other locality. These regulations are designed to protect the integrity of your water supply. In addition, the well contractor uses his experience and expertise to locate the well on your property that is suited to your lot size, the location of existing structures and utilities and the most likely location for a good supply of water.

Proper sizing is crucial to the construction and performance of your well system. Your system is designed to suit the needs of your household. Factors considered when sizing your system include such things as number of bathrooms, bedrooms and occupants, and anticipated water use for extras such as swimming pools, irrigation, spas or whirlpool baths.

Proper well construction is the key to operating and maintaining your well. The initial cost of a properly constructed well may be somewhat higher. However, in the long run, a properly constructed well results in improved efficiency, less maintenance and longer well life.

Your Well

Your well is constructed of quality materials, designed to prolong its life and performance. The following is a list of the most important materials used in construction of your well:

Casing is used to maintain an open access in the earth while not allowing any entrance or leakage into the well from the surrounding formations. The most popular materials used for casing are black steel, galvanized steel, PVC pipe or concrete pipe.

Grout is a sealant that is used to fill in the spaces around the outside of the well. It protects the well against the intrusion of contaminants. A grout mixture can be made of neat cement, bentonite or concrete, each used separately.

Screen keeps sand and gravel out while allowing ground water and water from formations to enter into the well. Screen is available in many materials, the most popular being stainless steel and PVC. Screen is used when wells are drilled in unconsolidated materials.

Gravel Pack is placed around the outside of the screen to prevent sand from entering the well or clogging the screen and to stabilize the well assembly.

The modern drilling process makes use of sophisticated technology. Two drilling methods are commonly used for private wells:

Air rotary drilling: A drill rig or truck outfitted with a large drill is driven onto the well site. The drill is lowered to the ground and turned on. As the drill spins, a hammer at its end smashes rock and soil creating the well shaft. The hammer is powered by air that is shot through the drill at very high speed.

At the same time, water is pumped around the drill to make the drilling easier. As the drill moves down, the same air that moves the hammer clears out the broken rock, dirt and excess water. When the drill hits a solid rock formation, a casing is placed in the well shaft to keep unwanted materials from entering the opening. Drilling then continues into the rock until water is found. The space between the casing and the ground is then filled with grout and the well is cleaned and capped.

wellcare® information for you about Wells

Mud rotary drilling: Mud rotary drilling is used to drill where the soil is loose and sandy. It is similar to rotary drilling except that as the drill bit spins, a fluid (drilling mud) shoots down through the middle of the drill, then flows out at very high speeds at the sides and the tip of the drill. Without this fluid moving up and around the drill, the walls of the hole would cave in and the well could not be made.

The fluid and sand that come out of the hole are pumped to a pit. The fluid in the pit is pumped out and used again, while the extra sand stays put. After the drill hits an area of sand that is filled with water, the casing and screen are put in to keep things from getting in the well. When the drilling is finished, the driller grouts the well, cleans the well and puts a cap on it.

wellcare® information for you about Wells

This illustration is intended to demonstrate some of the components that can be included in a water well system and is not intended as an illustration guide. Check local codes for actual requirements and restrictions.

wellcare® information for you about Wells

Well Pumps and Tanks

Your private water system has two important components in addition to the well itself – a pump and a tank.

Pumps: There are many types and sizes of pumps for water systems. Some are only designed to remove water from a source. Others not only remove the water, but also force it through the rest of the water system. Some pumps are for special jobs such as boosting pressure or supplying a special outlet. Selecting the appropriate pump size and type is critical to good well performance.

Tanks: Tanks provide storage for your water system. There are three general types of water storage tanks: (1) diaphragm bladder tanks with permanent separation between the air and water; (2) tanks with a float or wafer separating the air from the water; and (3) plain steel tanks. Each kind of tank serves a specific purpose. If your water supply provides plenty of water for your needs and you have selected the proper pump, it is easy to select the right size and type of tank. The amount of stored water in the tank is equal to the pump discharge in gallons per minute.

Additional storage: Some well owners may consider additional water storage tanks. Generally speaking, additional storage capacity of one day’s water supply is sufficient. Additional water storage is useful when there are power outages and other emergencies. Be sure to have the installer provide manual access to your storage unit.

For More Information on Your Well

Contact the well contractor who installed your well or find a water well contractor in your area by searching online or looking in your local telephone directory. Many states maintain lists of licensed or registered well contractors. Most states also have state water well associations, state well driller associations or state groundwater associations that maintain a list of contractor members. Contact your local or state health department or environmental agency, your state water well or groundwater association or the wellcare® Hotline at 888-395-1033 to find out where you can obtain a list of well contractors.

information for you about Well Maintenance

The safety and purity of your drinking water and the efficient operation of your private well system depends on a well-organized maintenance program. Protect your investment in a quality water supply through regular inspection, testing and repair or treatment.

Create a Well Maintenance Log

Gather a comprehensive history on your well and water quality. If you don’t already have a well log (also known as a water well record or drilling report), ask your well contractor or state environmental agency for a copy.

The well log will include a reference number for the well, original site owner, location of the well, construction and contractor details, as well as the results from any water tests. The well log should help establish the location, age and condition of the well. This information will provide the basis on which to schedule regular tests of water quality and inspections of well equipment, as well as regular maintenance and repairs.

Set a Well Maintenance Schedule

Plan for the maintenance of the wellhead, well system, water quality, water treatment devices and septic system.

Well Inspection

Inspectyourwellheadseveraltimesayear. Checktheconditionofthewell covering,casing,and well cap to make sure all are in goodrepair,leaving no cracksor other entry points for potential pollutants.

Have the well system, including the pump, storage tank, pipes and valves, and water flow inspected every 10 years by a qualified well driller or pump installer.

If you have no inspection record and cannot determine the age of the well, have it inspected immediately by a water well professional. When your well reaches the end of its serviceable life, usually more than 20 years, contact your water well professional to install a new system and properly close the old well.

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Maintenance

Water Testing

Testdrinkingwaterimmediatelyifyouhavenorecenttestresultsoranyrecord ofprevioustests.

Testdrinkingwaterforbacteriaeveryyear.Alsotestannuallyfornitratesif youliveinanagriculturalareaorhaveanon-sitesepticsystem.Thebesttime toperformtheseannualtestsisinthe spring.

Testifyounoticeanychangeinthetaste,colororodorofyourwater.

Testmorethanonceayearinspecialsituations:someoneinthehouseholdis pregnantornursing;thereareunexplainedillnessesinthefamily;your neighborsfindadangerouscontaminant intheir water;or there isa spillof chemicalsorfuels intoor near yourwell.

Testafterdisinfection,withinoneortwoweeks,tomakesurethewaterispure.

Testafter any flooding in or near the well, to determine if flood water carried bacteria or other contaminantsintothewellsystem.

Contact your local health department, cooperative extension office, state environmental agency or the wellcare® Hotline at 888-395-1033 for other water testing guidelines and to find a state-certified water testing laboratory in your area.

Water Treatment System

Testdrinkingwaterbeforeinstallinganywatertreatmentdevice.

Test water every year to make sure the device is working properly. Followtheinspectionandmaintenancescheduleprovidedbyyour watertreatment devicemanufacturerorwatersystemsprofessional.

ReviewtheWaterSystemsCouncilinformationsheet,“Well Water Treatment Options and Costs.”

Septic System Testing

Inspect the septic tank each year for capacity and leaks. Pumpoutthetankasneeded,usuallyeverythreetofiveyears,basedonthe numberofpeoplein the household and the size of the tank.

Repairthetankordrainfieldsystemasneededtopreventleaksofbacteria andnutrientsintogroundwater.

A poorly maintained wastewater treatment system poses a serious threat to the quality of your drinking water and can require expensive repairs. The cost of pumping a septic tank is far less than the expense of replacing a drainfield clogged by solids.

Selecting a Well Contractor

Hiring a Water Well Professional

Selecting the right water well professional is somewhat like searching for a new doctor or dentist. All are directly involved in your health. An experienced well contractor is your best guarantee of a good supply of clean drinking water. Take the time to learn more to find the right person and company.

Well Professionals

To find a well contractor or drilling company in your area, ask your neighbors, contact your state water well association or local health department, or check in the yellow pages of the telephone book under “water well drilling & well pump installations.” Once you’ve identified a few prospective companies, ask a lot of questions.

Professional Qualifications

Your well contractor should be certified, licensed or registered with your state health or environmental agency. Specific requirements vary from state to state. Ask for proof of proper credentials and well association memberships.

References

Ask for two to three references from former customers. Find out how long the company has worked in your area, how many wells they have drilled and how satisfied their customers really are.

Contracts

A professional well contractor uses a written contract. The contract should include details of the job and warranties or guarantees, if any.

Insurance and Bonding

A drilling company and its personnel should be insured. Some states require bonding; some do not. Find out what the law requires.

Local Geology

An experienced well contractor knows about the geology of the area in which he or she drills and can clearly explain it to you.

State and Local Laws

A knowledgeable well contractor knows state and local regulations that govern well drilling.

Maintenance and Repair

Timely maintenance and repair services are important to well owners. A company that offers these services can make life easier for you and ensure the proper function of your well system.

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information for you

Responsibilities

Before signing a contract, discuss who is responsible for various aspects of the well construction or repair work.

Permits, Site Visits, Fees, Etc. -- The homeowner or his/her representative typically secures permits required by the local government or health agency. A well contractor can tell you what agencies to contact and what fees must be paid. The contractor coordinates site visits by inspectors and construction activities.

Well Location -- In most states, strict regulations govern location of the well. A competent well contractor knows the regulations and will tell you if health officials or other regulators must be present during the well location process.

Well Capacity -- The well contractor can estimate the water requirements for your household. Help your contractor by discussing things like the number of bathrooms, the number of people in the household or anticipated water use for irrigation of lawns and gardens, spas, whirlpool baths or pools.

Water Quantity/Quality -- The quality and quantity of water from your well depends on the geology and hydrology of the area. Well water comes from underground aquifers, which exist throughout the ground at different depths. These “storage spaces” contain different amounts of water. A well contractor cannot tell you exactly how deep he/she will have to go to get water. An estimate can be based on other wells drilled in your area. In addition, a contractor cannot predict the exact quality of the water that will be tapped. What a contractor can do is make reasonable judgments about water quality based on previous experience. However, some states or localities may have regulations on minimum quantity and or quality of water on newly drilled wells. Check with your state or local environmental agency for these regulations.

Well Records -- Your well contractor should make a construction record (well log). Ask for a copy. If the law requires an inspection, keep that report as well. Keep repair bills and information on equipment purchases. Well records are very useful for maintenance purposes. Some states require the well contractor to submit records to regulatory agencies. Ask the contractor what your state requires.

Troubleshooting -- Ask the well contractor what will be done if water is not reached at the estimated depth. Also, ask what options are available if the water needs some form of treatment.

Selecting a Well Contractor

Potential Cost

Finally, discuss the cost of well construction and maintenance or repair. There are several factors that will influence the final cost, including:

Depth of Well

The depth of a well is a determining factor in figuring the basic cost of drilling and the cost of pipe, because most drillers charge by the foot. A well contractor will base estimates on what experience shows is an average depth for your area. If the water first tapped is adequate for your family, then drilling can stop. If not, then drilling may have to go deeper.

Materials and Equipment

A complete well includes casing material, pipe, a pump, a tank and grout to seal the well. Choose superior quality products to improve the efficiency and longevity of the well.

State Regulations

Most states require specific construction practices designed to protect health and the groundwater. Some states prohibit use of certain construction materials. Ask the well contractor how state construction requirements may effect cost.

Labor

Labor is usually figured into the charge-per-foot for drilling a well. However, there may be labor costs for installing the pump and tank or for performing repairs on an existing well. Experience teaches a well contractor to anticipate problems that may occur. However, nature is full of surprises, some of which even the most experienced contractor cannot anticipate.

Cost Effectiveness

Over the long term, the cost of water from your well will be pennies per day. Even factoring in construction and routine maintenance, a private well is still cost effective when compared to other systems.

If you need further assistance with selecting a well contractor, contact your state health department or environmental agency, the local extension service, your state water well or groundwater association or the wellcare® Hotline at 888-395-1033.

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wellcare® information for you about Protecting Your Wellhead

The most visible portion of your drinking water system is the wellhead, the structure built over your well to protect its various parts. By protecting your wellhead, you will ensure the quality of your drinking water supply.

Maintaining Your Wellhead

The wellhead protects the well casing, which is the lining of the well, and the well cap, which provides a tight-fitting seal at the top of the well. The wellhead is your first line of defense to prevent pollutants from penetrating your drinking water system. Inspect your wellhead regularly to make sure these elements are in good condition.

To keep your well safe, hire a licensed water well professional to perform any new well construction or modification, or to close an old well.

Take care when working or mowing around your well. It is easy to damage the wellhead with heavy equipment, which will jeopardize the sanitary protection of your well, permitting contaminants to enter the water supply. Don’t pile snow, leaves or other materials around the well, where they can carry pollutants into the system.

When landscaping around your well or siting a new well, make sure the top of the well sits at least one foot above the ground. Slope the ground down and away from your well for proper drainage.

Well Location & Surface Drainage

Chart reprinted with permission from “BMPs for Wellhead Protection” by R.L. Mahler and K.A. Loeffelman, Soil Sciences Division, University of Idaho, Moscow, Idaho.

Ensure Clean Drinking Water

Some common household activities can actually threaten the quality of your drinking water. Even small spills of pesticides, fertilizers or fuels near your well can seep into the ground and contaminate the water.

wellcare® information for you about Protecting Your Wellhead

Avoid mixing or using pesticides, fertilizers, herbicides, degreasers, fuels or other pollutants within 100 feet of your well. When siphoning water for these tasks, be careful to avoid back-flow back into the well system.

Conduct a quick visual check for activities that might threaten to enter your drinking water system at or near the wellhead which may include the following: septic tanks, lateral fields, cesspools, pit privy; chemical storage areas, machinery maintenance areas, waste piles, lagoons, sewers; underground storage tanks for chemicals, fertilizers, or petroleum products, above-ground tanks for chemicals, fertilizers or petroleum products; animal pens or feedlots and manure storage areas.

If your existing well is located near these activities, you may need to test your water quality more often than once a year. Try to move the risky activities away from your well. Check that your well is located on your property according to standards set by the state, county or locality. These regulations are designed to protect the integrity of your water supply.

You should also inspect and pump septic systems on your property as often as recommended by your local health department or septic service, usually at three to five year intervals. Failing septic systems can leach contaminants into the water supply.

For More Information on Protecting Your Wellhead

Contact the well contractor who installed your well or find a water well contractor in your area by searching online or looking in your local telephone directory. Many states maintain lists of licensed or registered well contractors. Most states also have state water well associations, state well driller associations or state groundwater associations that maintain a list of contractor members. Contact your local or state health department or environmental agency, your state water well or groundwater association or the wellcare® Hotline at 888-395-1033 to find out where you can obtain a list of well contractors.

wellcare® information for you about Water Well Testing

To keep your wellwater clean and pure and your well operating at peak performance, regular water testing is an important maintenance tool Private well owners are solely responsible for the quality of their drinking water. So it is up to you, the well owner, to decide when and how to test your water.

Recommended Testing

At a minimum, your water should be tested every year for bacteria, the most common water quality problem. Other tests may be required, depending on where you live and what is located near your water supply.

Table 1 on the following pages describes some conditions that may prompt you to test for select contaminants Table 2 on the following pages lists the limits for some primary contaminants.

For example, if your well is in an area of intensive agricultural use, test for nitrates and the pesticides commonly used in that region. If household tests of radon in the air are high, test for radon in water. If you have problems with taste, odor, staining or color of your water, then test levels of iron, manganese and sulfate.

Testing more than once a year may be warranted in special situations: someone in your household is pregnant or nursing there are unexplained illnesses in the family your neighbors find a dangerous contaminant in their water you note a change in water taste, odor, color or clarity there is a spill of chemicals or fuels into or near your well.

Contactyourlocalhealthdepartment,cooperativeextensionservice,state healthor environmentalagencyoryourwellprofessionalforguidancein selectingtests.

Choosing a Testing Lab

Approach water testing as a smart shopper. Get an up-to-date list of all stateapproved laboratories and the specific tests they are certified to perform from your state health or environmental agency Check with individual laboratories to get prices. Ask how soon you should expect results and about the information that will be provided with the test results. A good lab should help you interpret the results and make sense of the scientific data.

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Table

1: Tests for Specific Conditions

Conditions or Nearby Activities

Recommended Test

Recurrent gastrointestinal distress Coliform bacteria

Household plumbing contains lead Copper, hardness, lead, pH, salts

Radon present in indoor air or region Radon

Scaly residues, soaps don’t lather Chloride, hardness, sodium

Water softener to treat hardness Iron, manganese (before purchase)

Stained plumbing fixtures, laundry Iron, manganese, sulfate, tannins

Objectionable taste or smell Hydrogen sulfide, pH, hardness, metals

Water is cloudy, frothy or colored pH, salts, tannins, turbidity

Corrosion of pipes, plumbing Copper, lead, pH, salts

Rapid wear of water treatment equipment Hardness, iron, manganese, pH, salts

Nearby areas of intensive agriculture Coliform bacteria, nitrate, pesticides

Nearby coal, other mining operation Metals, pH, Total Dissolved Solids (TDS)

Gas drilling operation nearby Barium, chloride, sodium, strontium

Gasoline or fuel oil odor

Volatile Organic Compounds (VOCs)

Dump, landfill, factory or dry cleaning operation nearby Metals, pH, salts, VOCs

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Table 2: Tests for Specific Contaminants

Contaminant When to Test How to Test When to Treat/ Max. Limits

Arsenic

Baseline test in areas prone to arsenic/annually after treatment

Bacteria

Annually in spring; newborn in house; well equipment installed

State laboratory 10 parts/billion

Local health department test of total coliforms

Chromium

Near steel/pulp mills or in at-risk states*

Iron Water colored or leaving stains of orange, red, rusty

MTBE (methyl tertiary butyl ether) Water has oil/gas smell or oily film in area where MTBEs used

Nitrate

Annually in farm areas; pregnant woman/infant in house

Radium

Positive test of total coliforms; presence of fecal coliforms

State laboratory 100 parts/billion

State laboratory 300 parts/billion

State laboratory 20 parts/billion

State laboratory 10 parts per million

Area with high radium in bedrock State laboratory 5 picocuries per liter

Radon Before buy/move into new home State laboratory Check with State Radon Office

Sulfur & Manganese

Bitter taste, rotten egg odor, black/ brown water or staining

TCE (trichloroethylene)

Near factories/dry cleaners or in atrisk states**

Local health dept. Sulfur: 250 parts/ million

Manganese: 50 parts/billion

State laboratory 5 parts/billion

*Chromium at-risk states: California, Connecticut, Delaware, Illinois, Indiana, Maryland, New York, New Jersey, Pennsylvania, Texas, Wisconsin

** TCE at-risk states: Pennsylvania, Illinois, Georgia, Texas, Massachusetts,West Virginia

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Water Well Testing

Taking a Water Sample

The laboratory you choose should provide specific sampling instructions and clean bottles in which to collect the water sample. Do not rinse lab containers or fill them to overflowing. Check to see if the sample must be refrigerated or treated with special chemicals.

You may need to take a sample from the tap with the first flush of water in the morning or after the tap has been allowed to run for a period of time. If you suspect a problem somewhere in your home plumbing, you may need to take samples from several points: before and after water enters the hot water tank, for example, or at the inlet and outlet of a filtering device.

Again, carefully follow instructions for taking samples. Sampling is the most important part of testing. A carelessly collected sample can give you inaccurate results.

Understanding Test Results

The report of analysis, as some laboratories call test results, can take a variety of forms. It may be a computer printout of results for the specific tests you requested or a preprinted form with your results typed or written into blocks or spaces. It may include some general information about the laboratory that performs the test and the types of tests that were done or it may provide only your results.

The amount of a specific contaminant in your water sample will be expressed as a concentration of a specific weight of the substance in a specific volume of water. The most commonly used concentration units for drinking water analyses are provided in Table 2 on page 23.

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The test results may also include other symbols and abbreviations. Laboratory methods have detection limits, or levels below which contaminants cannot be reliably detected. That does not necessarily mean that the chemical is not present. There could be so little present that it cannot be reliably detected with the laboratory equipment or testing procedures being used.

The important question is whether the contaminant poses a health threat at that particular concentration. Compare your water test results to the federal standards in Table 2 on page 23 and to other guidance numbers, such as health advisories, to assess the potential for health problems. If in doubt, contact your state health department or environmental agency, the local extension service, your water well professional or the wellcare® Hotline at 888-395-1033.

After you get your first test results, you would be wise to follow up with a second test taken at a different time before you decide on any water treatment. This is because there is a certain margin of error in water testing and contamination problems may vary.

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Understanding Your Test Results

Regular water testing is essential to keep your drinking water clean and your well operating at peak performance. But many well owners are stumped when they receive their test results from the laboratory. The often confusing measurements, limits and standards make it tough to determine if your water is safe or if it needs some type of treatment.

Figuring Out the Measurements*

Most substances in water are measured as a concentration: a specific mass of a specific chemical within a specific unit or volume of water. The confusing part is that different terms can be used to reflect the exact same measurement.

➡ part per million/ppm = milligram per liter of water = mg/L

➡ per billion/ppb = microgram per liter of water = ug/L

So what do these terms really mean? Basically, they refer to very small amounts of a substance within about a quart of water. (A liter amounts to 1.05 quarts.) For example:

These are very diluted concentrations. For example, the recommendation for sodium in drinking water is no more than 20 parts per million. By comparison, the salt content of seawater is 32,000 parts per million.

* Our thanks to … Water on the Web, http://waterontheweb.org, based at the University of Minnesota-Duluth and funded by the National Science Foundation.

Your Test Results

Figuring Out the Standards

The U.S. Environmental Protection Agency (EPA) regulates public water supplies but not private wells. Well owners can use EPA’s standards to judge their drinking water quality. Sometimes state standards are stricter than the EPA’s, so check with your local or state health department for specific substances of concern.

Maximum Containment Levels (MCLs) are the highest level of a contaminant that the EPA allows in drinking water. MCLs are legally enforceable for public water supplies. When they turn up in the water, a utility must treat and remove or reduce the contaminant below the maximum level to protect public health.

EPA also sets standards for a second group of contaminants. These limits serve as guidelines for good water quality, but are not required by law. These National Secondary Drinking Water Regulations (NSDWRs), known as the secondary standards, regulate contaminants that may cause cosmetic effects, such as skin or tooth discoloration, or aesthetic effects, such as taste, odor or color, in drinking water. These contaminants are not considered threats to public health.

Finally, EPA studies another group of contaminants for possible regulation in the future. The Drinking Water Contaminant Candidate List (CCL) is published every five years. These standards are under discussion, but are not yet an official EPA recommendation or regulation.

Here’s the confusing part. On most government charts, the standard for a given substance will be written in parts per million. But the great majority of limits actually relate to much smaller amounts, in parts per billion. If your laboratory chooses one over the other, you may not be able to figure out if your water needs treatment or not.

For example, arsenic is a naturally occurring mineral found in soil and bedrock. We know arsenic as a popular poison in murder mysteries. But the substance can also work its way into groundwater through erosion and build to dangerous levels in some wells. On most charts, the MCL for arsenic is written .010 mg/L. What they really mean is 10 parts per billion.

Understanding Your Test Results

Translating Your Test Results

The chart below is a road map to your test results. It lists each contaminant, how it is regulated or not, and the maximum levels in all the measurements you are likely to see. Cross reference your test results with the chart to determine your water quality.

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Next Steps

Laboratories have detection limits, or levels below which contaminants cannot be reliably detected. That does not necessarily mean that the contaminant is not present. There could be so little present that it cannot be reliably detected with the laboratory equipment or testing procedures being used.

The important question is whether the contaminant poses a health threat at that particular concentration. Compare your water test results to the federal standards in the table to assess the potential for health problems. If in doubt, contact your local or state health department or environmental agency, the local extension service or your well professional.

After you get your first test results, you would be wise to follow up with a second test taken at a different time before you decide on any water treatment. This is because there is a certain margin of error in water testing and contamination problems may vary. Use bottled water until the second results are in.

There is a major exception to this rule. Any positive test for bacteria, such as fecal coliforms and E. coli, or microrganisms, such as cryptosporidium or Giardia lamblia, demands immediate disinfection of your well and water supply. These organisms can make you very sick. Contact your local health department, water well professional or the wellcare® Hotline at 888-395-1033 for help.

Checklist for Well Owners

Properly constructed private water supply systems require little routine maintenance. These simple steps will help protect your system and investment:

Always use a licensed or certified water well contractor and pump installer when a well is constructed, a pump is installed, or the system is serviced.

Perform an annual water test for a minimum of bacteria. Check with your local health department for other tests of local concern.

Test your water any time there is a change in taste, odor or appearance, or someone is ill or pregnant.

Keep hazardous chemicals, such as paint, fertilizer, pesticides and motor oil, far away from your well.

Periodically check the well cover or well cap on top of the casing to ensure it is in good repair.

Confirm your well is properly separated from buildings, waste systems, or chemical storage facilities.

Take care in working or mowing around your well. Damage to your casing can jeopardize the sanitary protection of your well. Don’t pile snow, leaves or other materials around your well.

Always keep good well records, including using the maintenance and water testing logs in this manual.

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The wellcare® Hotline

The wellcare® Hotline: Answering Your Questions About Wells

888-395-1033

If you have a question about wells or need help, contact the wellcare® Hotline Monday-Friday at 888-395-1033, or visit wellcarehotline.org at any time for information on:

Well construction codes and other regulations related to wells or water well systems

Well care and maintenance

Water testing

Water quality

Identifying possible contaminants

Avoiding seasonal threats

Understanding well mechanics

Learning well basics

Well components

Water conservation

Find a licensed well contractor

And much more!

Join the wellcare® Well Owners Network!

You will receive a quarterly e-newsletter with tips and tools to maintain your well and protect your well water as well as discounts on water test kits.

Signing up for the wellcare® Well Owners Network is easy and FREE! Sign up online at watersystemscouncil.org/water-well-help/join/.

Water Systems Council

1101 30th Street N.W., Suite 500 Washington, DC 20007

Phone: 202-625-4387

Fax: 202-625-4363

www.watersystemscouncil.org

This publication was developed in part under Assistance Agreement No. EPA-OGW-OGWDW-14-01 awarded by the U.S. Environmental Protection Agency. It has not been formally reviewed by the EPA. The views expressed in this document are solely those of WSC. EPA does not endorse any products or commercial services mentioned in this publication.