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If youre looking for a new home, you probably already know that a mortgage lender will consider your credit score, percentage of available credit used and debt-to-income (DTI) ratio. If your score is too low or your credit utilization or DTI ratio is too high, the lender may charge you a high interest rate or reject your loan application altogether.

Buyers often run into trouble because they dont understand a key fact about how mortgage lenders vet candidates. A lender checks a borrowers credit when an application is submitted, and again shortly before closing. If a borrower uses credit cards to buy furniture and appliances or to pay for moving costs, the persons credit score, utilization ratio and DTI ratio may rise enough to cause the lender to raise the interest rate or decide not to grant a mortgage at all.

How to Protect Your Credit and Get a Mortgage
While youre in the process of house hunting, its important to keep your credit in the best shape it can be and to avoid using credit cards as much as possible. If you normally use credit cards for food, clothing and entertainment, dont. Use cash or a debit card, or dont buy certain things at all. If you must make an important purchase, ask yourself if you can live without it until after youve closed on your home.

If you receive a letter inviting you to apply for a new credit card with a low introductory rate or rewards, it can be tempting, but you shouldnt apply while youre looking for a new home. Too many hard inquiries in a short period of time can hurt your credit score. You shouldnt apply for an auto loan while house hunting for the same reason.

Make Sure You Have Enough Savings
Youll have to save money for a down payment, but you shouldnt put all your savings toward that. If you do, youll be left with no cushion to deal with any unexpected bills for things such as medical treatments or car repairs. You also wont have funds readily available to buy furniture and appliances before you move into your new house. That means you may be tempted or forced to use credit cards, which may jeopardize your ability to obtain a mortgage.

Dont Lose out on Your Dream Home
Even if your mortgage application has been approved, that doesnt mean the decision is final. The lender will check your credit again before you close on the house. A sudden rise in credit card balances and a higher utilization ratio and DTI ratio could cause the lender to change its decision and to reject your mortgage application. Set aside money for any planned or unexpected expenses you may encounter so you can avoid using credit cards as much as possible until youve closed on your new house.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

For those who want to spruce up their new home or make their current living space feel a bit more glamorous before putting it on the market, theres no better style to incorporate than Hollywood Regency. Having emerged in the 1930s amidst Hollywoods Golden Era, it was largely influenced by the opulence of the Art Deco movement and the sleek aesthetic of Mid Century Modern. Put the best traits of those two styles together, and youll understand the undeniable appeal of Hollywood Regency.

These days, this look can be found in luxury homes around the world and if youre considering bringing it into yours, following are a few tips to guide you in the right direction!

Bold Patterns and Palettes
At its core, Hollywood Regency is all about being bold. Contrasting color combinations, especially black and white, and rich jewel tones are commonly used to create visual drama throughout the home. Simple patterns, like the iconic Greek key, are another prevalent technique to make a design statement.

Go Big on Lavish Details
From oversized mirrors to marble countertops, this is a style for those who want to put grandeur on full display. You can bring out the lacquered furniture and metallic finishes, like brass, nickel and chrome, to add serious glitz to your home. Lighting is often used to create a focal point in any room, so dont be afraid to go with an extravagant chandelier.

Plush Textures
Of course, it wouldnt be glamorous without a few sumptuous layers, like silk window treatments and velvet throw pillows. For those who love the tactile experience of these textures, youll feel right at home with this style.

Embrace Your Eclectic Side
Drawing inspiration from multiple design movements that came before, its only natural that Hollywood Regency has an eclectic side to it. Juxtaposing modern and traditional elements is a hallmark of this look and keeps it from being confined to one specific period.

Published with permission from RISMedia.

If youre someone who isnt happy with their current mortgage”whether its because you heard of someone having a better rate, you realized the payments are too large or you want to pay your home off quicker, then its probably time to look into a mortgage refinance.

Simply put, a mortgage refinance replaces your current home loan with a new one and can be done to reduce the interest rate, cut monthly payments or tap into their homes equity.

And you dont need to be years into a mortgage to refinance. If it makes sense financially, you can refinance at any time.

Still, there are some mistakes that those going through the process make. Here are some things to avoid.

Being Unprepared:
Once you get the ball rolling, dont stall. If your new lender gets in touch asking for information, dont waste time looking for documents and financial info”send it to them right away so everything goes smoothly. If youre busy at work or about to embark on a family vacation, wait until you have opportune time to get things started.

Jumping at the First Offer:
One of the reasons youre looking to refinance is because youre not happy. But even if the first lender that comes along offers you better rates, dont just say yes. Shop around for the best deal, and even check in with your current lender to see if they can do something to make your mortgage more appealing. They might be willing to work with you, saving you some paperwork and time.

 

Waiting too long:
If you hear about a good rate from a friend or see a special deal being promoted, do your due diligence but dont wait too long before making a decision. Try to get everything done in a couple of days and check out as many lenders as possible. You dont want rates to rise or something to change before you pull the trigger.

 

Not Thinking About Closing Costs:
During any refinance, keep in mind that youre likely to be responsible for new closing costs, including a loan application fee, appraisal fees, title fees and attorneys fees. Be sure you have this money on hand and make sure that these new fees dont impact the value you are getting overall from the refinance.

 

Adding on to Loan Term:
When refinancing, some homeowners decide to add to the number of years of their loan term, lowering their monthly payments but increasing the total amount of interest over time. Conversely, lowering the terms by five or 10 years can save you a lot, so if you want to change the years, make it lower.

By making smart decisions, your refinancing can be a smooth experience.

Published with permission from RISMedia.

The cold weather is here and that means your family is wearing their winter coats, along with gloves, hats and scarves. And all of that stuff takes up a lot of space.

In fact, those cozy items can make your coat closet unruly. Whereas a few light sweaters and jackets make a closet look useful and organized, big coats and other accessories make it look like a mess. And if your home is for sale, thats not good.

So, consider these ideas that can help make your coat closet more streamlined throughout the winter.

Clear it Out:
Start by taking everything out of the closet and find a home for anything that isnt part of your familys winter wear. If you keep photo albums, games, cameras, sports equipment, a vacuum cleaner and boxes in this closet, get rid of the things you dont need and find a different home for everything else. Put your spring and summer sweaters and jackets in storage.

Arrange the Coats Neatly:
Hang your familys coats in the closet. If there is room, you can keep a sweater or sweatshirt in there that you wear around the house. Place the coats in a way that looks organized, maybe from the biggest coat to the smallest or by color.

Put Your Shelf to Good Use:
Your closets shelf is the place for hats, scarves and gloves. Again, make everything look nice by giving each of these items its own area of the shelf. Scarves should be folded and organized by color. Your closet may also have hooks on the side, which are good for scarves as well. If your foyer has enough room, you can include a coat rack, but keep just a few things on it.

Shoes on the Floor:
Use the floor of your closet for footwear, especially boots. On snowy days, lay down a mat and make sure everyones boots are dry before putting them away. And before visitors come to your home, make sure your foyer and closet floor are dry.

A neat and clean coat closet showcases your storage space and is an indication that your home is well taken care of.

Published with permission from RISMedia.

Homeowners insurance can compensate you if your property is damaged or stolen, but its important to be familiar with the language insurers use. Many homeowners dont fully understand the coverage they have and are surprised when they file a claim and receive much less than they expected.

Whats the Difference Between Replacement Cost and Actual Cash Value?
If a homeowners insurance policy covers replacement cost, that means the insurer will give the homeowner enough money to replace an item that was damaged or stolen with a new one of the same model, or one close to it if the original model is unavailable. It doesnt matter if the person owned the item for years and it had experienced significant wear and tear.

If a policy covers actual cash value, it will pay the amount it would cost to replace the item with a new one, minus depreciation, which is calculated based on the age of the item, how much wear and tear it had experienced prior to being damaged or stolen, and whether it is obsolete. Some courts have interpreted actual cash value as the amount a person would be likely to receive if he or she sold the item.

Why Does This Matter?
Replacement cost coverage will restore you to the position you were in before your belongings were damaged or stolen, but actual cash value coverage wont give you enough money to replace lost property. That can put you in a difficult position, especially if your home was damaged by a storm or fire and you need to replace many expensive belongings. You might have to dip into your savings, use credit cards, borrow money, buy cheaper items of lesser quality or put off replacing things.

What If You Lose Something That Cant Be Replaced?
In some cases, you wont be able to replace a lost item with an identical one. When it comes to electronics, for example, technology is constantly improving. If the laptop you bought a few years ago is not on the market anymore, youll have to replace it with one thats similar and that the insurance company agrees is equivalent to the one you lost.

If you have unique items that cant be replaced, such as artwork or antiques, discuss them with your insurance company before you need to file a claim. You may have to get the items appraised and pay for a separate rider or floater to compensate you if those items are stolen or destroyed.

Choose the Right Insurance Policy
If you own a house, homeowners insurance is a necessity, but make sure you understand what youre buying. A policy that covers the actual cash value of lost items may have lower premiums, but it can leave you in a tough spot if you lose many expensive belongings and only receive a fraction of the money you need to replace them. Discuss the details before purchasing a policy, and contact your insurer if you have questions about existing coverage.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.