Forget Perfect Financial Records: Avoid These Mistakes To Become a Homebuyer With Bad Credit

If you’re a renter, you likely don’t want to forever. After all, wouldn’t you rather build equity than pay a landlord? Unfortunately, some believe they are trapped in a rental cycle. If you have a bad  credit score or have made financial mistakes in the past, you might feel bogged down by your financial record. However, the housing market is not closed off to you. As you branch out to see if homeownership is in your future, steer clear of these first-timer mistakes.

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Mistake #1: Not Applying for a Mortgage First

In a competitive market, if you put an offer on a home, you could lose it if you haven’t already applied for a mortgage. It may be tempting to negate this first step, but you risk missing out to another buyer, and wasting the seller’s time. 

To make yourself an attractive buyer, the best thing to do is to get pre-approved by a lender. This shows a buyer you’re legitimate, and it can help you lock in a desirable interest rate. Of course, with so-so credit, it’s possible you’ll be assigned a higher interest rate. You can rectify this if you opt to buy points (aka “buy down the rate”) from your lender to help lower the rate. It’s important to determine if this is financially beneficial first, so do the math to calculate whether it makes sense for your situation. How long you plan to own the home, your loan and your current finances will dictate whether you should use points.

Mistake # 2: Go With the First Lender You Talk To

To secure a low home loan rate, you should never go with the first lender you talk to. Try to talk to a few different lenders and a mortgage broker. A mortgage broker can help you locate the best terms and rates and, in some cases, you may have better access to lenders.

First-time homebuyers have access to a few different programs. These programs include FHA loans, USDA loans and Good Neighbor Next Door programs. In an FHA loan, the Federal Housing Administration insures a portion of the loan so lenders are more comfortable lending to you. USDA loans are for those in USDA-eligible rural areas. Good Neighbor Next Door programs are for teachers, public servants and police officers. It helps pillars of the community affordable housing.

Mistake #3: Ignore Your Credit Report

According to the Consumer Financial Protection Bureau, your first step to buying a home should be to pull your credit report. Even if you know your credit score, this number does not tell you the full picture. The three major credit bureaus, Equifax, TransUnion and Experian, collect data on your credit, and they use this data to calculate credit scores, which help lenders make decisions.

Examine your report for any inconsistencies. If there are errors, send a letter to the credit bureau to dispute the inaccuracy. For credit reports with a high balance compared to income, try to pay your credit cards down to raise your score.

Mistake #4: Miscalculate the Costs of Homeownership

Finding a low mortgage rate is only one part of the hurdle. When it comes to your monthly budget, you have to take into consideration all of the different costs of homeownership. Owning a home comes with a lot of hidden expenses. Property taxes, HOA fees and homeowners’ insurance are only three of the common expenses you’ll encounter. Homeowners’ insurance costs, in particular, vary based on your location. Disaster-prone areas cost more to insure, and this will add to your overall mortgage payment. 

Common misconceptions and mistakes can inhibit your ability to achieve homeownership, so you use these tips to help you see the forest for the trees. While poor credit history may force you to make some concessions to buy a home, you can still see your dreams come true.

4 Problems That Can Arise When Your Home Is More Than 50 Years Old

As homes age, they're going to require an increasing amount of maintenance and repair. Once your house reaches its 50th birthday, there are several things you should be on the lookout for. Here are four problems that can arise when your home is more than 50 years old.

Plumbing Failures

Assuming the plumbing hasn't been replaced at some point during the house's lifetime, there's a very high chance of pipe failures in a home that's 50 or more years old. Old pipes are more likely to crack or leak, and plumbing fixtures that are half a century old tend to be at the end of their lives. Having your plumbing replaced is a great way to update the home and protect it against potentially catastrophic water damage in the future.

Foundation Problems

As a home's foundation settles, it's fairly normal for some small cracks to form in the basement walls. Over time, though, you can begin to see larger cracks forming and walls beginning to bow inward. Foundation problems should be fixed as quickly as possible, since they will only become more expensive if left untreated. If you address foundation problems early on, you may even be able to get away with having carbon fiber straps installed on your basement walls to ease them back into place.

Electrical Problems

Like plumbing, old wiring can present its share of problems in older homes. From lights ceasing to work properly to outlets dying, aging electrical systems can be extremely inconvenient. In extreme conditions, they can also be potential fire hazards. If your home is currently running on wiring that's decades old, consider looking into local electrical services to have it rewired.

Floor Joists Bowing or Giving Out

If your home has sustained water damage or has major foundation issues, you may also have some floor joists that need to be replaced. Though it may seem complicated, replacing floor joists is fairly routine when you're renovating an older home. You'll need a professional contractor to do the work, but the costs usually aren't too unreasonable. Fixing joists can prevent sagging floors in the future and fix current problems of uneven flooring.

Old homes have charm and character, but they require more upkeep than newer ones. By keeping an eye open for these four problems and fixing them quickly, you can continue to enjoy your older home for many years to come.

The Different Residential Fence Types

The type of fence you choose for your home will impact a lot of different factors. It will enhance its curb appeal, provide security, and will clearly define your property lines. You should pay consideration to the overall look and feel of your home so that you can pick an adequate fence. Of course, you’ll have to factor in things such as your budget, durability, and ease of installation. To make things easier for you, here are the different residential fence types you should consider.

Welded Wire Fence

A welded wire fence is a durable type of fence that’s great for security. If you have a garden that you’d like to protect from neighborhood dogs and critters, you should go with this type. One of the main things you should know about building a welded wire fence is that you can do it yourself. As a result, it’s a very cost-effective form of fencing. If you’re on a tight budget, you can put together a welded wire fence with a few inexpensive materials.

Aluminum Fences

Aluminum fences are particularly visually appealing. They come in a wide variety of colors and styles, giving you a lot of design options. If security isn’t your top priority for your fence, then you’ll love aluminum fencing. These fences are also light on maintenance. However, they aren’t very durable, so bear that in mind when installing them.

Wood Fencing

Wood is by far the most popular material choice for fences in America. That’s because there are so many styles, shapes, and designs of wood fencing. You can also choose from different heights and widths. As a result, wood fences are both great for privacy and have visual appeal. You can also paint wood, granting you lots of options for color.

While wood fencing has plenty of advantages, this type of fence is pretty time-consuming to install, plus it takes a lot of expertise to do right. If you don’t know what you’re doing, do not attempt to put up wood fencing. Instead, hire an experienced professional who will do an excellent job for you.

PVC Fencing

These types of fences are by far the most affordable. PVC pipe is an abundant and cheap material, making it an excellent choice for fencing. While it’s not the most visually appealing, PVC is sturdy and will provide good security.

Vinyl Fencing

While this option is pretty expensive, vinyl is an excellent material to use in fences. That’s because it’s durable, visually appealing, and flexible. It’s even more resilient than wood. Select from a wide variety of styles, heights, and colors.

Understanding the different residential fence types will help you choose the type of fence that will work best for your home. Share this guide with your neighbors when they ask how you decided on your fencing.

Simple Habits To Stay Organized Everyday

Being organized isn’t a natural skill for most of us; it involves a willingness to change patterns you’ve stuck to for a long time. Keeping both your home and life in order is a daily practice, but it can be a difficult one to maintain, and it can take a few steps to adjust your behavior.

Here are simple habits to stay organized every day.

To-Do Lists

Having a schedule and to-do lists are vital when staying organized. Take a few minutes the night before to plan out the next work by prioritizing important events Planning your day out allows you to block off portions of time, so that an appointment or task won’t catch you by surprise and derail your day.

Declutter

Regularly decluttering your home can be very helpful in staying organized. Streamline your home by decluttering in these ways:

• Go through piles of papers and sort what is essential and what can be thrown out.

• Donate books to streamline a cluttered bookcase. Do the same with records or video games overflowing from entertainment centers.

• Discard old and expired medication that might be taking up space in your bathroom

• Fold and hang clothing, and donate anything that hasn’t been worn in over a year.

Make Your Bed

Making your bed every morning helps to set up a small win to start a day. Taking this tiny by meaningful action will propel you into positive action. Don’t worry about doing it perfectly every morning; even just rearranging the blankets and pillows can help you start your day off on the right foot.

Designate Everything

Give every item in your house a home! Categorizing everything, even the little things, will simplify organizing. When you’re attempting to designate an item, ask yourself where you would most use it or where others in your household would search for it. This can take some clever and outside-of-the-box solutions, but be sure to properly store cleaning supplies and other corrosive items.

Point of Use

When you’re organizing your belongings, thinking about their purpose will help you decide where they live. Place things in drawers and cabinets with the most used in front to avoid creating frustration or confusion when searching for something.

With these simple habits to stay organized every day, you’ll keep your home and life in order!