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Archive for the ‘Home Ownership’ Category

Whether you’re looking to purchase a new home, take out a new line of credit or simply assessing your current financial position, having a good credit score is a must. Here’s how to improve your credit score so that you can meet your short and long term goals. Of course, you’ll first need to obtain a credit report so that you can evaluate your score and spot potential issues.

1. Pay Bills On Time – Late payments are the most common pieces of negative information that are posted on credit reports. There are certain loans like mortgage loans that have a more drastic impact, but it’s a good idea to pay all minimum balances on time. Ultimately, you want to avoid having your account sent to collections, not to mention, paying late fees is never fun.
2. Keep Credit Card Balances Low – It’s always great to see that your credit card limit has been raised, but you don’t want to reach your maximum limit. Having large balances on credit cards will hurt your credit score, so it’s best to keep your balances within a moderate amount, approximately $350 for every $1000.
3. Have Old Bankruptcies Removed – If you had a bankruptcy over ten years ago, make sure it has been removed. It’s not uncommon for bankruptcies to linger on your credit report, but after ten years, they should be wiped clean.
4. Spot Potential Errors – Errors are commonplace, even on credit reports, which is why it’s essential that you maintain yours. You receive three free credit reports each year from major bureaus, and you should take advantage of these by printing off the reports and looking for false information.
5. Reach Out to Creditors – Although creditors don’t seem to be our friends, working with them is the right attitude to have. If you don’t pay your bill, they don’t get paid, and the cycle continues. If you are faced with a challenging financial time, reach out to the creditors and try to negotiate a compromise.
6. Avoid Applying for Too Much Credit – Taking out too many new credit cards will hurt your score. If you can pay for something without taking out a new line of credit, you’re better off paying for the purchase upfront. However, if you’re shopping around and inquire for several loans for the same purpose, this will not have a negative effect on your credit score.
7. Separate Your Credit Accounts After a Divorce – Since you don’t want to take the fall for your ex-spouses poor decisions, be sure to close all joint accounts, pay them off or have your name removed. Then start building your own credit by taking out a new credit card.
8. Don’t Close Unused Accounts – Having a positive account is beneficial to your credit score, so be sure to leave a few cards open, even if you’re not actively using them. Place them in a safe place and maintain your good standing.

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There are some situations where you may be able to sell off your property and still retain the mortgage. There are also situations where you may end up with more than one mortgage at a time. Obviously, this latter situation is one that you won’t want to endure for long, unless you’re a property investor.

Situation #1:  Moving to a New Home

Right now, one of the most common—and frightening—phrases that people hear is “underwater mortgage”. This is a situation that arises when the balance on your mortgage is higher than the value of the property it’s written for and, of course, that means that the homeowner is in a bad situation. This makes some homeowners wonder if they could take their existing mortgage to a new property.

Generally, you cannot “move” a mortgage loan as your loan is secured by your real estate.  However, if you’ve been a good customer, they may offer you a mortgage much like the one you have. In fact, because there were so many bad mortgages being written in the past, you may even qualify for something better than you have right now.

Situation #2:  Lease to Own

This is one situation where you may be able to keep your mortgage and sell your home. Under this arrangement, a new tenant moves into the home and takes over the payments on your mortgage. In Louisiana, you may hear this arrangement referred to as a “bond for deed.”

Some people who make these arrangements do them at a profit and make a bit of money off of the tenant’s payments. Sometimes they simply have the tenant make the regular payments, however.

This is sometimes done by property investors as a way to balance having more than one mortgage and to still keep it affordable.

Situation #3:  Short Sales

If your mortgage is underwater, you may be able to sell it off in a short sale, which is a sale of the home for less than the value of the sum left on the mortgage. This requires approval from the bank and will depend upon your situation. It will impact your credit, so be careful about taking on such an arrangement.

Most often, a new home will require a new mortgage. You can talk to the mortgage lenders at NOLA Lending to see if we can find you something very similar to what you have, however, or even something a bit better.

The thought of finally having your own home and not having to worry about throwing your money away on rent each month can be very exciting. Of course, before you get too enamored with the idea of becoming a homeowner, you need to temper that excitement with rational thinking. The following dos and don’ts can help buyers such as you save some money and be happier in the long run.

The Dos

Credit Check-Up: Even before you start your search for your home in earnest, you need to check your own credit and pull if from the three credit bureaus. You can get the information free of charge, and it won’t damage your credit. Rather than just looking at the credit score, you need to check and see if there are any mistakes. You will also want to know check for bankruptcies, tax liens, and judgments. If you notice any problems on your report, challenge them and make sure that the corrections show up on all three bureau reports.  If you have questions about items on your credit report ask us for help as we have years of experience dealing with these sort of issues.

Pre-Qualify: Once you know that your credit is in order, you need to know how much house you are able to afford, and this means contacting a mortgage company to get pre-qualified. Just because you might be able to get a loan for a large sum of money doesn’t always mean that you are going to be able to afford the home. You need to make sure that you will still be able to have enough money left over after paying the mortgage each month so you can pay all of your other bills and still live comfortably.

Be realistic: When choosing your home, make sure that you are living within your means. You might not need to have a house as big as the one that you’ve been looking at. It might be a better move financially to choose a smaller home that fits your current needs. It will almost certainly be closer to your budget as well. When choosing a home, consider the location in regards to schools and your commute.

The Don’ts

There are a long list of “don’ts” when it comes to buying a home, but these are 2 of the most common ones we see:

Take on new debt:  Don’t buy anything large right before you buy a house unless you are paying in cash. If you buy a car and have a large car loan, it can make getting a loan for a home more difficult.

Quit your job:  While many people dream of owning their own business, wait until AFTER you buy a home to do so if you are in the market.  If you are newly self-employed, you may have to wait a few years before trying to get a mortgage loan. During those first couple years of self-employment, it can be difficult to qualify for a home loan.

First of all, congratulations are in order! With the requirements for getting a loan becoming stricter all the time, it is no small feat to buy a new home today. But now that you have your home and mortgage (link to home page), you are probably wondering what comes next. In addition to enjoying your new home ownership, you can do some things around the property to help beautify it and bring up the home value.

While you love your new home, there might be a few things that you want to change about it. You now have the opportunity to turn the home you bought into an actual dream home, and here are a few things you might want to try.

Renovations

Unless the home is exactly as you envisioned it, there are probably a few things that you might want to change. This can be true even if you are buying a brand new home. Perhaps you want to take out the carpets and put in hardwood floors. Maybe you want to redo the kitchen or the bathroom. Renovating the home can be fun, and you can do some of the work on your own to help you save some money. Best of all, renovations can increase the value of your home. Even just a fresh coat of paint can liven up a room.

Beautifying the Landscaping

Not all of the changes have to take place in the home. You might find that the landscaping leaves a lot to be desired. Take some time to plan your landscaping, and make sure that the landscaping you use complements your home. You may also want to check with any homeowners association to which you belong to see what their policies on landscape renovations are. They might have certain regulations by which you must abide.

Stay Current on Your Payments

Many people are falling behind on their mortgages, and this can cause a host of problems for them. Do everything you can to stay current on your loan. If you find that the rates are better in a few years, you might want to consider refinancing your mortgage. Many people who are able to improve their credit score choose to do this. This can help you to save quite a bit of money.

With springtime just around the corner, everyone is glad that the cold weather is almost behind us. Of course, with the springtime comes spring cleaning. It might not be something that everyone loves, but it is always a good idea and it is often a necessity. The proceeding tips for you and your family will help you get through your cleaning with the least trouble and frustration possible.

Step #1: Do a little planning first

The most important part of spring cleaning actually begins before you ever pick up a broom or a sponge. The first thing that you have to do is come up with a plan of attack for the overall process. The best way to do this is to separate your home into different sectors and clean just one at a time. If everyone in the family is getting involved in the cleaning process, you can assign a sector, or room, to each person depending on their age of course.

Step #2:  Figure out what to do with stuff you don’t want or need anymore

Have a designated space for items that you don’t want any longer and items that don’t work. Recycle the items that are broken. You can give the rest to charity, which can be a tax write off next year, or you can hold a rummage sale. It’s a good idea to wait until the rest of the cleaning is done before you have your sale though. You can put those items in the garage or into storage until you are ready for the sale and then simply clean that area last.

Step #3:  Now it’s time to clean!

Once you have all of the unwanted items out of the way, you will have more room to work. You can then dust, wash the windows, vacuum, and do a deep and thorough cleaning. Don’t worry about the floors yet. Take care of the rest of the cleaning and then you will be able to move your furniture out of the room to clean the carpets or the hardwood floors.

Don’t forget the kids

If your kids are old enough to help, we suggest you get them involved. They will be able to help sort through their old items and clean their own rooms. Make it a fun time for them and they will be willing to help without as much coercion on your part!