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Are you living with termites without even knowing it? The wood-devouring insects can often go undetected and wreak havoc on a home, potentially compromising its structural integrity and causing thousands of dollars worth of damage. Even worse, because termite damage is considered preventable, it typically isnt covered by homeowners insurance. That puts the onus of any necessary treatment and home repairs on you and your wallet.

Luckily, there are steps you can take to help prevent a termite infestation. Follow these 10 tips from the National Pest Management Association (NPMA):

1. Seal cracks and holes on the outside of the home, including entry points for utilities and pipes.

2. Keep basements, attics and crawl spaces well ventilated and dry. Termites need moisture to thrive.

3. Repair leaking faucets, water pipes and exterior AC units.

4. Repair fascia, soffits and rotted roof shingles. Some termites are drawn to deteriorating wood.

5. Replace weather stripping and loose mortar around basement foundation and windows.

6. Divert water away from the house through properly functioning downspouts, gutters and splash blocks.

7. Maintain an 18-inch gap between soil and any wood portions of your home.

8. Store firewood at least 20 feet away from the house and 5 inches off the ground.

9. Routinely inspect your homes foundation for signs of mud tubes (used by termites to reach a food source), uneven or bubbling paint, and wood that sounds hollow when tapped.

10. Monitor all exterior areas of wood, including windows, doorframes and skirting boards for any noticeable changes.

If you suspect a termite problem, the NPMA urges you to contact a pest professional right away to confirm that a problem exists and determine the best course of action.Also, consider scheduling a professional inspection annually to catch potential termite problems before they get any worse and, thus, more expensive to fix.

Published with permission from RISMedia.

A mortgage lender looks at several factors when deciding whether to approve a loan application. A lending institution wants to know that a borrower has both the ability and the will to repay debts. If you have a high income and a low credit score, a lender may have reservations about approving your mortgage application.

How a Lender Looks at Income and Credit Score
A lender adds up the costs of housing, car payments, student and other loans, and credit card payments and divides the total by an applicants gross monthly income to arrive at a percentage known as the debt-to-income ratio. Some lenders require a low debt-to-income ratio, while others are much less stringent.

A credit score reflects a persons payment history and use of credit. Someone may have a high income, but that doesnt mean much if the individual spends money frivolously instead of paying bills. A low credit score is a red flag that can cause a lender to think that a loan applicant doesnt know how to handle money responsibly. A person with a low credit score is more likely to make payments late or miss them altogether than someone with a higher credit score.

How to Qualify for a Mortgage With a High Income and Bad Credit
Credit reports sometimes contain errors because information was reported incorrectly, wasnt reported at all, or got mixed up with someone elses information. Youre entitled to receive a free copy of your credit report from each of the three major credit bureaus once a year. Check your reports for errors that could be lowering your scores. If something doesnt look right, dispute it so the mistake can be corrected.

You can also hold off on buying a house and take some time to pay down debt and boost your credit score before you apply for a mortgage. Thatll help you get a better interest rate and avoid paying tens of thousands of dollars in additional interest over the life of your mortgage.

If you want to buy a house soon but are concerned about your low credit score, you can apply for a mortgage through a lender that is forgiving. The Federal Housing Administration, U.S. Department of Veterans Affairs, and U.S. Department of Agriculture offer loans to borrowers with low credit scores. If you have bad credit, you should expect to pay a higher interest rate than someone with a better credit score. Making a large down payment could reduce the loan-to-value ratio and make the loan less risky for the lender, which might help lower your interest rate.

Explore Your Options
Lenders will look at your entire financial picture when deciding whether to approve your mortgage application. A combination of a high income and a low credit score may be a red flag. Work on improving your credit, explore options for borrowers with poor credit, or save as much as possible for a down payment to improve your chance of being approved for a home loan.

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

 

Published with permission from RISMedia.

Homeowners insurance companies adjust rates from time to time based on a variety of factors. Some of those factors are directly related to individual policyholders, and others have nothing to do with specific homeowners. If youve received a letter from your insurance company informing you that your rates will go up soon, you might be able to get them back down.

Why Do Insurance Companies Raise Rates?
If your insurance company sent an inspector to your home and shortly afterward informed you that your premiums would go up, its probably because your home needs repairs. For example, damage to the roof and foundation can make your house more likely to suffer serious damage in a storm. If you make repairs now and provide proof to your insurance company, it may consider your home less risky and reward you by lowering your premiums.

Filing several claims, especially in a short period of time, can cause an insurer to raise your premiums. In addition, a large number of claims submitted by people in the same town or neighborhood can raise your rates, even if you didnt file a claim yourself. An area that is prone to severe storms or has a lot of burglaries often means higher insurance rates for everyone.

Your insurance score, which companies use to set rates, depends partly on your credit score. If your credit score has dipped, paying down credit card balances and making payments on time can boost your score and may eventually lead to lower homeowners insurance premiums.

Sometimes insurance companies raise rates across the board if they paid out unusually large sums of money for claims related to natural disasters. Insurers may also increase premiums if construction costs have risen substantially because settling claims will be more expensive. Companies want to spread the cost around to everyone so they can still earn a profit.

What to Do About a Planned Premium Increase
If your homeowners insurance company has notified you that it plans to raise your rates, call to ask why. If the insurer mentions any reason specifically related to your home or your area, look for changes you can make. For example, if there have been a lot of break-ins in your neighborhood recently, offer to install deadbolts and a security system in exchange for a reduction in premiums. Repairing your home to make it less susceptible to storm damage can also lower your rates.

You might qualify for discounts if you have multiple policies through the same company, havent filed a claim in several years, or are a first-time homebuyer or a senior citizen. Ask your insurance company if you qualify for any discounts. If you currently have a low deductible, raising it could automatically lower your premiums. Explore all options with your insurer.

Published with permission from RISMedia.

Millennials are the largest generation shaking up the real estate market these days, according to research by the National Association of REALTORS. However, when compared with the generations that came before them, millennials remain delayed in purchasing their first home and are more particular about the features they want their home to have when they are finally ready to buy. One aspect of homes millennials are particularly interested in is technology, even when it comes to the garage. For the latest and greatest in garage trends, read on.

Access
Millennials use their phones for more than just communicating. They use them to buy coffee and to book exercise classes,as well as to pay friends and family. Access to the garage should be no different, and with the availability of garage door apps, homeowners can control entry to their home through their smartphones.

Security and Safety
More than 70% of homeowners use the garage as the main access point to the home, making safety and security a top priority when selecting the right home. Through LiftMaster’s partnership with Nest Cam, homeowners can have an added security element. With Nest Cam, users can also access a video feed of what’s happening in the garage the moment the garage door is activated, allowing for enhanced security and peace of mind. Garage safety is also vital when viewing a potential home or during home inspection; millennials should ensure the garage functions securely and safely.

Home Control
A connected garage is an easy way to make any home a “smart home.” When looking to purchase a home, millennials should examine the capabilities of the garage door opener. Is it Wi-Fi capable? Is it compatible with technology that controls the lights or thermostat? If not, consider asking the seller to replace the garage door opener with one that is.

Source: LiftMaster.com

Published with permission from RISMedia.

From a buyer’s standpoint, getting into a bidding war for a house they want is never fun. They can offer more money than they ever planned to spend and still end up without the home of their dreams. A real estate agent should be able to tell you ahead of time if bidding wars are likely in your desired neighborhood. Here are four real estate tips to win a bidding war, if it comes to that:

1. Make a high offer. Instead of making a low offer with the expectation that you’ll increase it if you have to, offer as much as you can afford immediately. Let the seller know this is your best offer, and that you can’t go any higher. This can help avoid any haggling back and forth, will save you time, and, hopefully, will get you the house. A variation of this method includes offering $20,000 or so above the asking price, showing upfront that you’re a serious buyer.

2. Have a big down payment.Having a large amount of cash for a down payment of 20 percent or more can show you’re a serious buyer. Get a preapproval letter from your lender, have paperwork proving you have the money, and pay a higher earnest money deposit, if you can.

3. Go conventional.Instead of getting an FHA or other government-backed loan that can have longer escrow periods, be approved for a conventional loan. This can require coming up with a bigger down payment and having a good or excellent credit score, but can lead to shorter waiting periods and show you’re a strong buyer.

4. Add an escalation clause.An escalation clause allows your real estate agent to go above the highest offer, but only to a point. For example, on a home with a listing price of $350,000, you could make an offer of $400,000 with an escalation clause of $5,000 over the highest price, but only up to $450,000. If another buyer offers $425,000, your automatic clause would increase your offer to $430,000.

However you enter a bidding war, always remember that your exit strategy is pretty simple”there are always other homes on the market waiting for you to buy.

Published with permission from RISMedia.