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Published with permission from RISMedia.

Homeownership is a dream for many people, but some take on more debt than they should. If you’re thinking about buying a house, consider your income and current and potential expenses.

How Mortgage Lenders Decide How Much Applicants Can Afford
Lenders look at the total gross income of all individuals applying for a mortgage. This can include income from work, alimony, child support, disability benefits and Social Security.

Lenders typically allow borrowers to devote 28 percent of gross income to pay for a mortgage and associated costs, including taxes and insurance. Some lenders accept higher percentages. Where you live and your credit score will affect your interest rate, taxes and insurance premiums.

Lenders also consider applicants’ debt-to-income ratios. Debt can include loans, credit card balances, child support and other recurring monthly bills. Mortgage lenders generally want applicants to have a debt-to-income ratio at or below 36 percent of their monthly gross income.

The amount of a down payment affects the total amount borrowed. Many lenders require 20 percent, but some accept much lower down payments.

Don’t Borrow Too Much
A lender may approve you for a large mortgage because your situation looks good on paper, but that doesn’t necessarily mean you should borrow the full amount. You could face other expenses and lifestyle changes in the future.

Companies can lay off workers, restructure or go out of business at any time. Ask yourself if you would be able to find another job in your field with a comparable or higher salary in your area in a short period of time.

If you buy an older home or one that has not been well maintained, you might encounter a host of expensive problems. Appliances can break, a roof can leak, a foundation can crumble and pipes can burst. It would be better to borrow less than the lender approves you for and set aside money each month to cover repairs that will inevitably be needed.

If you have or plan to have children, consider all the potential expenses associated with raising and educating them. Even in the best of circumstances, raising kids is expensive. If a child has medical needs, you could face high bills and might be unable to continue working full-time. If you want to contribute to your children’s college education, factor that into your budget.

Don’t devote so much of your monthly income to your mortgage that you can’t afford to save for retirement. That could leave you with a big house that is paid off, but not enough money to cover food, medical expenses, maintenance and utilities when you are a senior citizen.

Proceed With Caution
When going through the exciting process of searching for a home, it’s easy to get carried away. You might fall in love with a house, but you need to keep a firm grip on reality. Consider possible future expenses and life changes and play it safe to avoid getting in over your head.

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

Published with permission from RISMedia.

Here are four features that have become synonymous with Victorian-style homes.

Towers and Turrets

The first thing youre likely to notice when arriving at a Victorian-style home is a magnificent tower or turret defining the exterior.

Wraparound Porches

Many Victorian-style homes are designed with such a porch in order to greet visitors with a spacious covered seating area.

Meandering Floor Plans

These homes often have elaborate layouts with rooms of various proportions, from grand parlors and reception rooms to intimate nooks and alcoves.

Intricate Details

An ornate aesthetic is always front and center with stained glass windows, impressive wood finishes and decorative moldings.

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Most Americans need a car to travel to and from work, run errands and take their kids to after-school activities. People also need a place to live. If you want to purchase a house in the near future, splurging on a brand-new vehicle could make it difficult or impossible to qualify for a large enough mortgage to buy the home you want.

How a New Car Loan Could Affect Your Ability to Get a Mortgage
When you apply for a mortgage, a lender will consider your debt-to-income (DTI) ratio, which is the total cost of car, student and other loans, as well as credit card bills and other debts. Most lenders dont want a borrower to have a DTI ratio above 35 percent of gross income. If you buy a new car with a high monthly payment and have other debt, your DTI ratio might be too high to qualify for a mortgage, or a lender might approve you for an amount thats too low to buy a house in your area, unless you come up with a huge down payment.

To qualify for a mortgage at a low interest rate, youll need your credit to be in the best shape it can be. A new car loan would lower your credit score temporarily because of a hard inquiry when the lender checked your credit report, as well as the increased debt load. Making auto loan payments on time each month could raise your score, but that could be a long process.

Consider a Used Car
If your car is on its last legs and you need to replace it, consider purchasing a used vehicle. Since cars depreciate quickly, a car thats one or two years old would cost significantly less than a new one, but it would likely have low miles, be in excellent condition and still be covered by a warranty. You could get a reliable vehicle with a much lower payment than you would with a new one, and you would pay less for car insurance. Your debt-to-income ratio would be lower than it would be if you bought a new car, and youd be able to qualify for a bigger mortgage and buy the house you wanted.

Prioritize Large Purchases
If you want to replace your car and buy a home, youd be better off focusing on a house first. Since a home is probably the largest purchase youll ever make, you want to be sure that your credit score is as high as possible and that a lender will be confident in your ability to pay a mortgage. If you cant put off replacing your vehicle, buy one used to keep your debt obligations down so you can qualify for a mortgage to purchase your dream home.

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

Published with permission from RISMedia.

Bringing a historic home into the 21st century is a balancing act of the highest degree. You want the latest luxuries without having to get rid of the charming period details of yesteryear. Whether youre in the market for a home that exudes Old World craftsmanship or youre ready to breathe new life into your historic residence, here are a few tips to get you started on the right track.

Find a Specialist

The first order of business is to find a contractor or consultant who specializes in the restoration of historic homes. An expert will be able to guide you through the process, knowing exactly what needs to be preserved and what needs to be updated. The last thing you want is someone whos ready to rip it down to the studs without respecting the residences history, so do your due diligence.

Kitchens & Bathrooms

With all due respect to kitchens and bathrooms of the past, these are living spaces that we generally want to equip with top-of-the-line features. Dont hold back when it comes to modern shower systems and cutting-edge appliances. While you can certainly choose to maintain a timeless aesthetic, it can also be fun to contrast contemporary with traditional.

Preserve the Period Details

What was it that drew you to the home in the first place? Often, its the original details, like antique floors, door casings, or stonework. Whenever its possible to salvage or reclaim these elements, it goes a long way toward maintaining the houses character and sense of authenticity.

Integrate Technology

Wireless smart home systems allow you to discreetly outfit a historic property with the latest technology. Rather than installing a touchscreen to control your home automation system, you can take the reins on your smartphone to manage lights, thermostat, and more, often times without even requiring additional wiring.

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