Being a homeowner is exciting. It can be financially rewarding, too. Unfortunately, it can also put you in a tough legal position. Between the complexities of owning a house, having to deal with lenders and the risk that comes from owning something valuable, keeping yourself legally protected is a good idea.
Here Are Some Risks -- And Some Ways To Handle Them.
Being a homeowner requires more than just mowing the lawn and painting on occasion. You will also want to pay careful attention to your legal exposure and manage it. A little bit of care could save you a lot of money and trouble down the line.
The unfortunate reality is that many individuals have a lower credit rating than they would like. For many, this is caused by issues related to high debt balances, late payments and other related issues.
If you have a lower credit rating, you may be wondering what steps you can take to improve your standing with the credit bureaus. While there are several steps available for you to consider, making timely payments on your home mortgage can have a great impact on your credit. There are four unique ways that diligence with your mortgage payment may improve your credit.
Showing Financial Responsibility
First, when you make timely payments on an account, including your mortgage, you are proving your financial responsibility. Previous issues with late payments, collections accounts and other similar credit events may have indicated that you are a credit risk to lenders, but you can prove your responsibility through regular mortgage payments.
Reducing Outstanding Debt Balances
High debt balances are another common reason your credit ratings may be lower. When you make your mortgage payments on time, you will effectively reduce your outstanding balance on what may be the largest single debt that you have. This can have a tremendous impact on your rating over time.
Preventing New Derogatory Credit Events
When you are trying to improve your credit rating, the last thing that you may want is to have additional derogatory credit events listed on your credit report. Making your mortgage payments on time each month will prevent new late payments from being shown on your report. Establishing a solid new credit history from this day forward will help you to rebuild your credit rating.
Increasing The Length Of Time Between Older Derogatory Credit Events
As you regularly make your payments on your mortgage each month, more time will elapse between any blemishes or derogatory events on your credit report. Essentially, you will be making those derogatory events dated, and you will have a recent history of positive activity. Increasing the length of time between the present and your derogatory credit items is a great way to boost credit scores.
If you have a speckled credit history with lower scores than you would like, you understandably want to take steps to improve your credit rating. These are all ways that making timely mortgage payments can boost your credit rating, and you can apply these concepts to any other outstanding debts as well.
A mortgage consultant may help you to learn more about your current credit report and steps that you may take to boost your scores.
With the increasing flexibility of the modern workplace, there are many more businesses offering their employees the opportunity to work from home. While this shift in the job market has created many new options for freelance workers, it can also be a good reason to turn a spare room into a spanking new office. If you're working from home, here are some tips for a stylish transition.
Prime It With Paint
Outside of lighting, the color and upkeep of the walls is going to have a huge impact on the way your spare office will look. Before even considering placing furniture or putting up pictures, decide on the perfect shade of paint that will keep you inspired and will go with the rest of your house. This will easily brighten the room, and prep it for its future purpose.
Start With Good Lighting
There are few things that will change the ambiance of a room like light, so make sure the room you are changing up has a great set of windows or the kind of fixture that will provide effective illumination. Since many people have a hard time focusing in the orange or bright light that can come in certain work settings, a well-lit place may make all of your work seem a little bit easier.
Decide On A Desk
Many people put any old clunker of a desk in their spare office since it will do the trick, but if you're making the decision to renovate your spare room for work, it will be worth it to choose a desk you'll want to work at. Before going desk shopping, measure out the length and width of your spare room so you can make a desk purchase that will work for your new office.
What's On The Wall?
Beyond the supply of pens, paper and a computer, it might seem like the extras of your office situation can be kept out of the equation, but a few pictures can add a lot. While you may want to add some photos of family and friends, it might also be helpful for your work-time diligence to put up a picture that adds a shot of color and will inspire your best work.
There are a lot of great options for a spare room, but if you work from home, an office can be the ideal renovation. If you happen to be sprucing up your spare room to sell your home, you may want to contact one of your local real estate agents for more information.
Applying for a home loan might not be the most exciting part of purchasing a home; however, many homeowners need to go through a lender to purchase a home. It is exciting to hear that the approval letter has gone through; however, it is also possible for someone to see that they have been approved with conditions. What does this mean?
What are some of the most common reasons why someone might have conditions?
It Could Just Be Standard Procedure
Sometimes, people see that they have conditions to meet as a simple part of the approval process. For example, someone might be missing standard paperwork. It is the job of the underwriter to make sure that the lender is not taking on too much risk. Usually, this simply means that the loan requires some additional paperwork to be made final. Applicants need to gather this paperwork as fast as possible so the loan continues through the process. If there is a seller waiting, it is critical to jump on this immediately to prevent the offer from falling through.
What Are The Most Common Conditions?
There are several conditions that people might have to meet in order to finalize the loan approval process. For example, some people may need to provide letters of explanation, documenting anything that could be related to questions in the file. In other situations, a large deposit could require a letter of explanation as well. That way, the lender knows that someone has not taken a cash advance or opened another line of credit to cover the down payment. In other situations, proof of employment could also be listed as a condition of approval. Lenders want to make sure that applicants are going to keep their job after they purchase the house. Finally, earnest money proof could also be required. This is simply a copy of the earnest money check itself. It is critical for applicants to provide this paperwork quickly in order to finalize process.
Try To Meet All Requested Conditions As Quickly As Possible
It can be frustrating to see that a loan has been approved with conditions. Fortunately, a lot of these conditions are relatively easy to meet. Homeowners that are requested to provide proof to finalize the application process should try to do this as quickly as possible.
Last week’s economic reports included readings from the National Association of Home Builders on housing markets and Commerce Department data on housing starts and building permits issued. Weekly reports on mortgage rates and jobless claims were also released.
NAHB: Builder Confidence Slips as Materials Costs Rise
The National Association of Home Builders reported that its Housing Market Index fell to an index reading of 82 in March as compared to February’s index reading of 84. Analysts forecasted a reading of 83. Builder concerns included rising materials costs and mortgage rates, which impact home pricing and affordability. Robert Dietz, Chief Economist for NAHB, said that lumber prices have more than doubled since August 2020 and have added $24,000 to the cost of a home on average.
Regionally, builder confidence in housing markets declined in the Midwest, Northeast, and West but remained unchanged in the South.
Demand for new homes remained high as shortages of existing homes for sale persisted. Homebuilder sentiment was unchanged in the South but declined in the Northeast, Midwest, and Western regions of the U.S.
According to Commerce Department reports for February, housing starts declined to 1.42 million starts n a seasonally-adjusted annual basis as compared to January’s reading of 1.58 million housing starts. Building permits issued also reflected growing builder concerns as permits issued fell to 1.68 million permits issued from 1.89 million building permits issued in January.
Mortgage Rates Rise, Jobless Claims Mixed
Freddie Mac reported higher average mortgage rates last week as rates for 30-year fixed-rate mortgages rose by four basis points to 3.09 percent; the average rate for 15-year fixed-rate mortgages rose by two basis points to 2.40 percent. Mortgage rates for 5/1 adjustable rate mortgages averaged 2.79 percent and rose by two basis points.
Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.
770,000 first-time jobless claims were filed last week as compared to the prior week’s reading of 725,000 new jobless claims filed. Severe winter weather in Texas boosted new claims, which significantly exceeded analysts’ expectations of 700,000 new claims filed.
Continuing jobless claims fell to 4.12 million claims from the prior week’s reading of 4.14 million ongoing claims filed.
What’s Ahead
This week’s scheduled economic reporting includes readings on sales of new and previously-owned homes, inflation and consumer sentiment. Weekly readings on mortgage rates and jobless claims will also be released.
This past year has been stressful for everyone involved. A lot of people have had to spend more time in their house than they ever have in the past. When this is combined with trying to conduct work and school from home, it is easy to see why people are so eager to get out of their house.
Even though a lot of people are spending more time outside, it might be better to consider moving entirely. The reality is that a lot of people are currently associating their home with a lot of bad memories. Therefore, moving may be a smart idea. What should people consider when moving?
Think About The Weather In The New Location
First, it is important for everyone to think about the weather. Of course, the first factor is the average temperature. People should look for a location that isn't too cold or too hot. Ideally, this new home should have a bit of a variety. New experiences can go a long way toward improving people's emotional health.
Then, it is smart to take a look at the precipitation level as well. Nobody wants to go an entire year without seeing rain; however, if it rains all the time, this may make it hard to spend time outside. Think about looking for a location that has mostly clear skies with an average precipitation of around 60 inches or so.
Consider the Population Level of the Location
With a general location in mind, it is time to take a closer look at some options. Usually, these are broken down into three separate categories: Urban, suburban, and rural. Largely, this is a personal decision. Individuals who are younger may be looking for a more urban area that has more “stuff” to do. Those children may be looking for a suburban area with more opportunities to play safely outside. The location is also going to dictate housing prices, which will help homebuyers set their budgets.
Consider Moving For An Emotional Lift
Ultimately, moving can be just the emotional list that people need. It is critical to think about these factors during an upcoming move. That way, everyone can make the right decision to meet their needs.
There are many people who are spending more time at home these days. As a result, it is important for everyone to take steps to try to improve their quality of life at home. This means seasonal home improvement projects. With the weather nice outside, it is a great idea for everyone to think about how they can get ready for the next season. Therefore, there are a few top seasonal Home Improvement projects everyone should keep in mind.
One of the first projects that everyone should work on has to do with their HVAC unit. Right now, people probably are not running their HVAC unit much right now. Therefore, this is the perfect time for everyone to make sure they get their HVAC unit maintained. That way, if there are any issues that are spotted, they can be addressed before the HVAC unit is needed.
Check The Roof And Gutters For Signs Of Issues
It is critical for homeowners to make sure they keep their gutters clear. Otherwise, rainwater might not be able to drain from the roof away from the house. This could contribute to roofing leaks that could wind up as expensive repair bills. For this reason, all homeowners should take the time to check their shingles, their flashing, their edging, and their gutters. This will make sure the house stays safe when the weather turns down.
Look For Entry Points For Any Pests
Finally, homeowners also have to make sure they are able to keep any potential infestations away from their homes. There are lots of pests that are going to try to get inside the home as the temperature starts to drop outside. This could include silverfish, ants, cockroaches, and termites. When homeowners take the time to look for these entry points ahead of time, they can prevent these infestations from taking place.
Think About Home Improvement Projects Now
These are a few of the top home improvement projects that all homeowners need to keep in mind. It is critical to take the time now to carry out these home improvement projects while the weather is nice. This can prevent problems in the future.
Many people have heard that there are a lot of changes taking place in the real estate market right now. As a result, a lot of people are thinking about purchasing a new home or refinancing an existing mortgage.
When looking at a mortgage, many people focus on the interest rate, the term of the loan, and the size of the loan. Even though these are all important factors to consider, it might be helpful to take a look at a few fun facts about mortgages as well.
Where Did The Word Come From?
When people take out a student loan, a car loan, or a personal loan, that is exactly what they are called. Why is a home loan called a mortgage? There's actually comes from an old French word. In French, it was spelled “Mort Gaige,” which stands for deal pledge. Then, when the mortgage was paid off, it was deemed “dead.” This word has carried over into the modern era.
The Red Door In Scotland
Mortgages are used to provide people with home loans all over the world. This includes Scotland. When homeowners are finished paying off their home loans in Scotland, they paint their door red. For those who plan on traveling to Scotland in the near future, it may be fun to keep an eye open for these red doors.
Fannie Mae And Freddie Mac Combine For The Majority Of Mortgages In The United States
Most people have heard a Fannie Mae and Freddie Mac. These two entities combine two back close to half of all mortgages in the United States. Therefore, they play a major role in helping people finance their homes.
Homeowners Depend On Mortgages For Almost All Home Loans
Many people have to go with paying off their mortgage and owning their home outright. This is a great goal to have; however, many people purchase mortgages that are 30 years in length. Therefore, it should come as no surprise that the vast majority of homeowners depend on mortgages for just about every home purchase.
Mortgages Have An Interesting History
Mortgages have an interesting and unique history behind them. As the market continues to pick up, it will be interesting to see what happens next.
There is a lot of jargon that comes with purchasing a home. Even though this could be confusing, purchasing a home is also a significant decision. Therefore, it is critical for everyone to understand exactly what they are signing before they scribbled their name on the dotted line. In some cases, a co-borrower or a co-signer (also called a non-occupying co-borrower) could be needed to strengthen the application. What is the difference between these two terms?
What Is A Co-Borrower?
First, a co-borrower is simply a co-owner. Both names are on the title of the home. The co-borrower also shares the responsibility of the debt. This arrangement is usually used when two people are purchasing a home together. Usually, the primary borrower is going to be the person with the higher credit score. At the same time, the credit scores of both owners will be taken into consideration.
What Is A Co-Signer?
Also called a nonoccupying co-borrower, a cosigner is similar to a guarantor. Legally, a cosigner will not have any claim on the home. They will not take possession of the home and their name will not go on the title. On the other hand, they are still financially responsible for paying back the loan. In the event the primary borrower is unable to meet the monthly mortgage payments, the financial responsibility will fall on the cosigner.
Choose The Right Co-Borrower Or Co-Signer
It is critical for everyone to make sure they choose the right cosigner if they need one. Ideally, a primary borrower will be able to file a successful home application on his or her own. On the other hand, if the bank or credit union says that a cosigner or co-borrower is needed, it is critical to find someone who is reliable and trustworthy. Remember that they are going to be responsible for paying back a loan in the event the primary borrower cannot make the monthly mortgage payments.
Remember that a co-borrower is going to be listed as another owner of the home. In contrast, a cosigner is financially responsible but does not have any legal claim to the home. Understand the difference before signing a mortgage application.
Last week’s economic reporting included data on inflation and job openings, and weekly readings n mortgage rates, and jobless claims.
Inflation Rate Rises in February
Consumer prices grew by 0.40 percent in February according to the federal government’s Consumer Price Index; the year-over-year inflation rate rose from January’s reading of 1.40 percent to 1.70 percent. Consumer prices rose at their fastest pace in six months as rising fuel prices caused the jump in consumer prices. The Core Consumer Price Index, which does not include volatile food and fuel sectors, rose by 0.10 percent in February and matched analysts’ expectations.
Analysts expect continued economic expansion as Americans receive stimulus checks, get covid-19 vaccinations, and businesses reopen.
Mortgage Rates Rise as Jobless Claims Fall
Freddie Mac reported higher mortgage rates last week as the average rate for 30-year fixed-rate mortgages rose by three basis points to 3.05 percent. Interest rates for 15-year fixed-rate mortgages averaged 2.38 percent and rose by four basis points. Rates for 5/1 adjustable rate mortgages also rose by four basis points to 2.77 percent on average.
Jobless claims fell to their lowest level since November. New jobless claims fell to 712,000 claims filed as compared to the prior week’s reading of 754,000 initial claims filed in the prior week. Analysts expected 725,000 first-time claims to be filed. Last week’s reading showed the lowest pace of new jobless claims since November 7, when 211,000 first-time claims were filed.
Continuing jobless claims fell to 4.14 million claims filed as compared to the prior week’s reading of 4.34 million claims filed. Jobless claims averaged fewer than two million claims filed before the pandemic. Accurate counts of individuals receiving jobless benefits were questioned due to the discovery of fraudulent claims and duplicate counting of some recipients. Analysts were advised to focus on jobless claims trends rather than individual claims data.
What’s Ahead
This week’s scheduled economic news includes the National Association of Home Builders Housing Market Index, Commerce Department readings on housing starts, and building permits issued. The Federal Reserve’s Federal Open Market Committee will release its post-meeting statement and Fed Chair Janet Yellen will give a press conference. Weekly readings on mortgage rates and jobless claims will also be released
It’s exciting to be able to move into a new home. But there are some tricky details to navigate when you already own a home and you’re ready to buy a new one. Should you buy or sell first? Don’t worry. There are viable solutions.
Should You Sell First?
Think about how selling your home first will impact your family. On the one hand, you’ll be in a better financial position. You’ll have cash in the bank. You may be able to negotiate better terms on your new house by putting more down. However, selling first may mean moving into temporary housing while you find a new house to buy. You might need to store your furnishings. In other words, you may need to move twice.
Should You Buy First?
Buying first gives you more stability. You can stay in your own home until you’re able to move into the new house. When you do move, there won’t be a big rush. You could move over the course of a week or even more. The downside to buying first is that you might be responsible for paying two mortgages for a month or more. There’s no guarantee that your home will sell in a predetermined length of time. And, there’s no guarantee you’ll get the amount of money for your old home that you need to be financially secure.
Viable Solutions No Matter What You Do
Thankfully, there are solutions no matter how you decide. If you sell your home first, you could ask your buyers for a later closing date so that you have time to find a new home. You could even ask them if you can lease your old home on a month-to-month basis so that you have time to buy a new home.
If you buy a new home first, you could get a bridge loan, that helps you pay the second mortgage until you sell your old home. You could also rent out your old home to help offset your mortgage payment.
As you can see, there are ways of making both scenarios work. Whether you decide to buy first or sell first, your real estate agent can help you make it happen.
As a pet owner, you’re probably just as excited to see how your pet loves the new house as you are yourself. It’s fun to watch as your pets explore the new digs. But moving can be stressful for pets. Here are some tips for making the move as stress-free as you can for your furry loved ones!
Acclimate Your Pets To A Pet Carrier
If you travel infrequently, your pets may not be used to being inside the confined space of a pet carrier. Help them get used to it by placing it on the floor near where they sleep. Put some of their favorite toys or blankets inside and encourage them to spend time in there. Once inside, bring Fido or kitty for a short ride in the family car; just once or twice around the block is plenty. Do this a couple of times a week and always reward them afterward with a treat or some petting.
Keep Pets Isolated On Moving Day
Moving day will be scary for your pets. To keep them calm and safe, isolate them in a separate room in the house. You could place food and water bowls in a spare bathroom along with a blanket to rest on. Put a sign on the door so the moving men don’t enter. Isolating pets on moving day will also prevent pets from running outside, where they might run off out of fear or confusion.
Let Pets Adjust To Your New Home Slowly
Even if you have pets that are savvy and accustomed to being outdoors, you don’t want to let them outside when you first move. They may become disoriented and try to walk back to the old house. Or they could encounter a neighborhood animal that isn’t friendly. For a few days after you move into your new home, keep little Fluffy indoors. There will be plenty of time for them to transition into the backyard if that’s something you want for your pets.
Your pets will grow to love your new home, but it’s important to let them take it slow. These three tips may help with the transition. Above all, help them to feel comfortable with the traveling and keep them away from the activity on the actual moving day.
It is important for everyone to diversify their investments. When people hear this term, they usually think about diversifying their investments across stocks, bonds, and mutual funds. In addition, it is also a prudent idea to leave the traditional financial markets and look for other sources of wealth as well.
This includes real estate. Without a doubt, this has been a challenging year. At the same time, those who are looking to build wealth should consider purchasing a house this year. There are several reasons why.
Mortgage Loans Are At Historic Lows
Those who have checked mortgage rates recently have probably found that they are close to historic lows. Therefore, a lot of people who would otherwise not be able to afford a home might be able to purchase a home at a relatively low price. Because interest rates are so low, this has the potential to save someone tens of thousands of dollars over the life of the loan. Even those who already have a mortgage are refinancing their homes anyway because of the significant difference. It is not often that homeowners have the opportunity to purchase a home at such a low price.
Real Estate Values Are Likely To Rise In The Future
Even though it is impossible to protect the real estate market with 100 percent certainty, there is a solid chance that real estate values are likely to rise in the future. Because the real estate market is depressed right now, many people believe that the only place the market has to go is up. There is no telling when the market is going to be this low again. As a result, those who are looking to make an investment in the real estate market should take advantage of the unique opportunity at the present time.
Diversify Investments In Real Estate To Build Wealth
Ultimately, there are a lot of challenges regarding looking for a home right now; however, those who are able to take advantage of the current opportunity have a chance to build wealth. Even though this might not be the perfect time to buy a home, it might be as close as the market gets. Consider looking for a new home today.
Organizing a home seems like a significant challenge. Fortunately, there are easier ways to make this happen. In less than an hour per day, it is possible to organize a home from top to bottom. Getting these unnecessary items out of the way might even prevent people from stubbing their toes! How can this be possible?
Start Getting Rid Of Unnecessary Items
Start by creating two boxes. The first box should have the word “donate” written on it. The second box should have the “trash” written on it. Then, go through every room in the home. Find items that can be donating. Take them to a local Goodwill or Salvation Army. Remember to get a receipt because these items may be tax-deductible, as long as you work with a trained tax professional.
Then, take items that can be thrown away and place them in the “trash” box. Be prepared to throw these out. This will instantly create more room in the home.
Target The Spice Cabinet
A lot of homes have unnecessary space wasted in the spice cabinet. Think about organizing them alphabetically. Be sure to check if any spices have expired, as they might need to be tossed out. Once the spices are all in the right spot, there will be a lot more space in the kitchen. That way, it will be easier to organize utensils, appliances, plates, bowls, cups, and the pantry itself.
Time To Deal With The Decorations
Once the holidays are over, it is time to organize the decorations. Make sure that each holiday has its own separate box. Then, make sure the boxes stack on top of each other. With a separate box for each holiday, it should be easy to store all the decorations in one place. This will free up a lot of other space in closets, storage areas, and cabinets.
Get The House Organized In An Hour Per Day
Concentrate on each small area, going room by room and "decluttering" as it will create a lot more space in the home, and in sections, it is easier to get everything organized. Ensure that everything has its place. It might even be helpful to write this down somewhere. Even though it might take some time to get used to it, having more open space in the home is never a bad thing!
Last week’s scheduled economic news included readings on construction spending and labor sector reports on public and private sector jobs. The national unemployment rate was published along with weekly readings on mortgage rates and jobless claims. Federal Reserve Chair Jerome Powell also spoke at a jobs summit.
Construction Spending Rises in January
U.S construction spending rose at a seasonally-adjusted annual pace of 1.70 percent in January as compared to 1.10 percent growth reported in December. Year-over-year construction spending was 5.80 percent higher in January 2021. Residential construction spending reported in January rose to $713 billion on a seasonally-adjusted annual basis as compared to December 2020’s construction spending pace of $695.70 billion.
Non-residential construction spending in the private sector rose to a seasonally-adjusted annual rate of $447 billion in January as compared to December 2020’s pace of $445.2 billion.
High demand for single-family homes persists as inventories of available homes fall. This scenario contributes to affordability issues that are also influenced by rising building materials costs.
Mortgage Rates, Jobless Claims Mixed
Freddie Mac reported higher rates for 30-year fixed-rate mortgages, which rose by five basis points and averaged 3.02 percent. Rates for 15-year fixed-rate mortgages were unchanged from the prior week and averaged 2.34 percent. Mortgage rates for 5/1 adjustable rate mortgages dropped by 26 basis points and averaged 2.73 percent. Discount points averaged 0.60 percent for 30-year fixed-rate mortgages and 0.70 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.30 percent.
First-time jobless claims rose to 745,000 new claims filed as compared to the prior week’s reading of 736,000 new claims filed. Ongoing jobless claims fell last week with 4.30 million continuing claims filed; 4.42 million ongoing claims were filed during the prior week.
Private- Sector Jobs Fall as Public-Sector Jobs Increase
ADP reported 117,000 private-sector jobs added in February as compared to January’s reading of 195,000 private-sector jobs added. The government’s Non-Farm Payrolls report for February showed 379,000 public and private sector jobs added in February; 166,000 public and private-sector jobs were added in January. The national unemployment rate fell to 6.20 percent as compared to January’s reading of 6.30 percent.
Fed Chair Promised to Hold Steady on Monetary Policy
Fed Chair Jerome Powell promised to maintain accommodative monetary policies for the foreseeable future as the Federal Reserve continues striving toward its dual mandate of achieving maximum employment and annual inflation of two percent. When asked about rising long-term rates, Mr. Powell said that he could not commit to reducing the Fed’s asset purchases as he thought that the Fed’s goal of achieving maximum employment was “highly unlikely.”
What’s Ahead
This week’s economic reporting includes readings on inflation and consumer sentiment. Weekly readings on mortgage rates and jobless claims will also be released.
