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Whether you’re scoping out a vacation property or looking into becoming a homeowner for the first time, applying for a mortgage is a lengthy and complicated process. While your real estate agent and lender will be there to walk you through the details, knowing what possible errors could lay in waiting will help you make the best decision. Let’s review some of the most common mortgage mistakes so you can avoid making them.

1. Weak credit history
Loans are all about credit history ” it’s hard to land a mortgage without one. But having a credit history doesnt mean you have a lot of credit; it simply means you have been given credit in some form and have a documented history of repaying it. How much credit? Lenders often like to see at least three lines of credit with a minimum two-year history on each.

And of course, you don’t just need a credit history; you need a good one. Pay down credit cards and loans regularly to heighten your score.

Pro tip: Paid off that credit card? Don’t cancel the account. Keeping the account active, even if it’s unused, helps build a strong credit history.

2. Weak work history
You’re less likely to get a loan if you can’t prove you’re able to hold down a job. And even if you do get approved with a weak work history, you may not be able to qualify for a good interest rate. What is a strong work history? Aim for at least two current, consecutive years of employment in the same occupation.

Of course, certain circumstances may provide an exception to this rule. If you are a recent graduate with proof of future income, or someone who is coming back out of retirement, some lenders may not hold a lack of recent employment history against you.

3. Opening new credit accounts
Maybe you got a big raise and are applying for a mortgage and leasing a brand new car all in the same month ” bad idea. If you’re thinking of applying for a loan, avoid opening brand spanking new credit lines. Lenders like to see solid, stable credit histories, and a brand new line of credit can’t offer that. Unfortunately, some people make this mistake thinking that it will help their credit score, when in truth it can hinder it.

4. Making big purchases
Slow down there, big spender. Just like lenders want to see stable credit history and employment, they want to see stable spending. If you make large charges to your existing credit accounts around the time youre shopping for a mortgage, you can increase your debt-to-income ratio. So hold off on that new furniture set or big screen TV until after you’ve purchased your home.

5. Not reviewing your credit report
When is the last time you checked your credit? Often, credit reports have errors, and you want to right these before it’s time to apply for your mortgage.

6. Not knowing what you can afford
These days, it’s very easy to figure out how much home you can afford. Simply find a mortgage calculator online, take a look at how much you can pay each month, and plug in the numbers. This will give you a solid idea of how much house you can afford, which can help you avoid disappointment down the road. It’s also important to get pre-approved for a loan before you begin your home search. There have been many instances where a home sale falls through because the buyers made an offer that they couldnt back up with a mortgage. By showing that pre-approval letter, the buyers are showing the sellers they can afford to make good on their offer, and may also be in a better position to negotiate. And these days, many real estate professionals won’t work with a buyer who isn’t pre-approved.

Published with permission from RISMedia.

Published with permission from RISMedia.

These key features will enhance your kitchen in more ways than one.

Two Ovens

Multiple ovens provide you with flexibility and functionality, especially when making a multi-course meal for large groups.

Pot Filler

A faucet mounted right above the stove lets you skip the heavy lifting and get right down to cooking.

Professional-Grade Range

Whether youre making family breakfast or hosting dinner parties, a professional-grade range is a kitchen essential.

Dishwasher Drawers

Rather than having one large dishwasher, two dishwasher drawers give you the ability to clean smaller loads without sacrificing space.

Smart Appliances

Smart ovens, touchless faucets and refrigerators that notify you when ingredients are about to go bad are the new normal in luxury kitchens.

Published with permission from RISMedia.

Taxes are an unfortunate fact of life. However, the tax code includes several provisions that can help homeowners save money when it’s time to file their returns. Making improvements to your home could potentially save you a significant amount of money, both now and when you eventually sell your house.

Tax Deductions Now

If you need to make home improvements for medical reasons, those costs could be tax-deductible. Upgrades such as adding a wheelchair ramp, widening doors to accommodate a wheelchair and adding handrails can be tax-deductible if they’re deemed medically necessary.

You can also get federal tax credits if you make improvements to increase the energy efficiency of your house. Installing solar panels, a geothermal heat pump, a solar water heater or other eco-appliances can lower your tax liability for the year that those items were installed.

If you know when you buy your house that you want to make some improvements, you might be able to have extra money for those projects included in your mortgage. Then you can deduct the interest for the entire mortgage when you file your income taxes.

Reducing Taxes When You Sell Your House

If you’re thinking about selling your house in the future, taxes may eat into the profit you make from the sale. Making improvements to your house when you own it might be able to reduce your tax liability.

When you sell your house, your profit will be calculated by adding the amount you paid for the house, including fees, plus all improvements you made over the years. That total is the adjusted basis. That number is compared to the sale price to calculate your profit.

The lower your profit margin, the less you’ll have to pay in taxes. If you’re single, the first $250,000 in profit from the sale of your primary residence is tax-free. For a married couple filing taxes jointly, the first $500,000 is tax-free.

It’s important to keep receipts for all home improvements, particularly if you’re planning to live in your house for many years and do a lot of work. Having all those records when you sell your house can help you reduce or avoid paying taxes on your profit.

Upgrades Could Help You at Tax Time

Home improvements can make your house more comfortable and energy-efficient when you live there. They could also save you money, either when you file your annual income taxes or when you eventually sell your house. It’s important to keep records of all the money you spend on home improvements and check with your accountant to find out how those upgrades will affect your individual taxes.

Published with permission from RISMedia.

Whether you just moved into a new place or are looking to freshen up for important company, getting rid of musty odors can be difficult. Below are five helpful ways to freshen up the smell of your spot.

Include house plants. Even the subtlest-smelling house plant will help clean the air through natural filtration. In addition to potted varieties, add cut flowers in vases for a sweet floral scent.

Wash walls. Odors can often become trapped on your actual walls. Once a year, remove pictures and art and give the walls a good scrub down with a natural solution, like diluted vinegar. Be sure to test the solution in an unseen corner first to make sure no discoloring will occur.

Air out drapes. Heavy window hangings are a prime culprit of trapped smells. Drag them outside to hang on a breezy line for a day to return them to their natural smelling state.

Clean rugs. If you have area rugs or wall-to-wall carpeting, it’s important to give them annual washings to keep them smelling fresh, especially if you’re a pet owner. You can air out area rugs outside, and steam clean installed carpeting.

Throw open windows. Opening all the windows in your home can do wonders for the smell state of your space. This is especially helpful in winter, when windows tend to stay closed for months on end as heat pumps inside. On a clear day where rain is not on the forecast, throw on a sweater and open your windows to refresh the air inside.

Interested in more housing tips? Feel free to contact me directly.

Published with permission from RISMedia.