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If youre buying a house with cash only, you may have gotten a lower price for it and you certainly wont have to deal with a bank to get a mortgage loan. Another advantage is that you dont have to buy title insurance to protect your lender.

Mortgage lenders usually require buyers to purchase a title insurance policy, usually for about $1,000, to protect the lenders interest in the property. The home is the collateral for the loan, so the lender wants to make sure there arent any problems with the title of a property.

While a cash purchase of a home wont require title insurance for a lender, called a loan policy, homebuyers may still want to buy it for themselves. An owners policy protects the new titleholders ownership rights. The policy is in effect for as long as the owners or their heirs own the property.

Before issuing an owners policy, a title insurance company will search and examine public records to determine the state of the propertys title. Any issues found will be fixed, and if there are challenges, then youll be alerted to the issue so you can determine if you want to proceed with the transaction.

You wont be required to buy an owners policy when buying a home with cash, but it may be a smart purchase anyway. Title insurance can protect you financially from any prior liens on the property, restrictions on the use of the property or forgeries in public records.

A missing heir to a former property owner, for example, could be found. Or a deed could have been forged in the past. Title insurance not only helps uncover such issues, but protects you against any undiscovered issues that could arise in the future.

How likely are cash purchases of homes? In January 2017, 23 percent of home sales were cash, according to the National Association of REALTORS.

Only 6 percent of first-time buyers paid all cash for homes. The most likely buyers to pay all cash were investors, followed by international buyers, distressed sales and second-homebuyers. As investment and distress sales have declined, so do cash sales.

Buying a lenders policy for title insurance is a relatively small cost when purchasing a house. Still, the savings when paying cash for a home can be a little bit of a boost to your bottom line. At the very least, the savings could be put toward buying an owners policy for title insurance for yourself to give you some peace of mind during the buying process.

Published with permission from RISMedia.

Taking out a mortgage to buy a house is a huge step. The amount and terms of the loan will have a major impact on your financial picture for decades. That’s why you should choose a lender carefully.

What to Do Before You Apply

In order to qualify for an attractive interest rate, you need to prove to lenders that you are a good risk. That means you need to get your financial house in order before you start applying for a mortgage. The first step is to get copies of your credit reports and have any errors corrected. If you have a lot of credit card debt, work to pay down the balances and lower your debt-to-income ratio.

Take a hard look at your budget and figure out how much you can afford in monthly mortgage payments. A lender may approve you for a bigger loan than you can realistically handle. Write down all of your monthly expenses, look at your monthly income after taxes and figure out how much you can afford for a mortgage without stretching yourself too thin.

Applying for a Mortgage

Gather all of the information you’ll for lenders to process your application. This will include pay stubs, tax returns, bank statements, a list of all financial accounts, a list of all your monthly debt payments, proof of employment and income, and information on any accounts in collection, lawsuits or bankruptcies. Lenders may have different requirements on how far back they want the records to go.

Lenders offer a wide range of interest rates, fees, points and other terms based on each applicants specific circumstances. Some people get the best deal from a traditional mortgage lender, while others are offered better terms by a credit union, retail lender, correspondent lender or wholesale lender. The lender that offered your friend a great rate might not offer the same rate to you, but you could get a good deal somewhere else.

If you dont shop around, you could spend thousands of dollars more than you have to over the life of the loan. If you don’t have the time to contact multiple lenders yourself, a mortgage broker can get quotes from several lenders in exchange for a fee. Then you can compare them to make a decision.

Getting preapproved for a mortgage can help in the home-buying process because it demonstrates that you’re in good shape financially and able to move forward quickly. Once you get preapproved, you still need to carefully manage your finances. The lender may review your income, assets and debts again before finalizing the mortgage.

Choose Carefully

Obtaining a mortgage is a significant step that will impact your finances for many years to come. You should not rush it or take it lightly. Do what you can to improve your current financial situation, be realistic about what you can afford and shop around to find the most favorable terms.

Published with permission from RISMedia.

If youre about to put your home on the market, there are probably some repairs and changes that need to be taken care of to ensure you get top dollar for your home.

But before you begin tearing your home apart, its important to understand that some home improvements can be categorized as major and necessary, while others are more minor in nature.

When picking which improvements to take care of prior to listing your home, remember that not all home improvement projects offer the same return on investment. Here are some tips:

Cosmetic Repairs
Most prospective homebuyers know to look beyond cosmetic damage (peeling paint and scuffed floors) when theyre looking to purchase a home. More importantly, theyll want to know that the major systems in the home are in good working condition, such as any and all plumbing and electrical components.

Luxury Fixes
If youre updating your kitchen or bathroom before listing your home, make sure you’re not going overboard on the finishes unless it’s a luxury listing. Quartz counters and a new double wall oven in the kitchen may not get you your money back when you sell, so keep it modern, but also keep the costs in mind.

Trendy Repainting
A fresh coat of paint will work wonders when it comes to giving new life to any room in your home, but if youre going to take on this project, its best to not get too colorful. If youre serious about selling your home, youll want to attract as many potential buyers as possible, so stick to neutral colors that will appeal to the masses.

Published with permission from RISMedia.

The idea of a splurge means different things to different people, depending, in great measure, on how much “discretionary income” you have to spend. But while the things we choose to splurge on are a matter of choice, there are some luxury creature comforts that can make nearly everyone happier

When it comes to your home, decorators say splurging on items that look better, last longer, and/or increase our personal comfort are often worth more than they cost.

• Luxury Linens ” A good French linen duvet set, which will set you backabout $250, is an heirloom-quality splurge that will get softer as you use it, is strong enough to withstand time and will keep you cooler in summer and warmer in winter. The same is true for expensive Egyptian sheets, which wear better than their cheaper cousins and have a lovely, silken feel.
• Turkish Cotton Towels ” Aside from lending a luxurious, spa-like feel to your bathroom, these hefty towels are more absorbent and dry faster than ordinary towels. At $50 or $60 apiece, they are sure to increase your bath time enjoyment.
• Wireless Speakers ” They will let you bring your favorite podcast into the kitchen while you cook, your soothing white noise to the bedroom nightstand or music to almost anywhere else you want to hearit in your home. The sleekest versions may cost up to $400, but their versatility and low profile make them a worthwhile splurge.
• A Le Creuset French Oven ” A classic among devoted cooks, these porcelain-coated Dutch ovens have incredible heat retention and hold up against acids and stains as you turn out delectable stews, soups and more. They can cost up to $350, but you may be able to reduce your splurge if you prowl a few good discount home goods stores.
• A Teak Cutting Board ” If you love to cook, you should have had one years ago. At about $88, a good teak board is easier on knives, beautiful to look at and will last longer than any plastic cutting board.

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If you have a small bathroom and/or a large family, storage space is at a premium. Without a solid organizational system, a bathroom can quickly become cluttered. Items that belong in the bathroom may get shoved into other closets, which can make finding things a hassle. Here are some tips to help you make the most of the available space in your bathroom and find more room for storage:

Keep Toilet Paper and Towels Within Reach
A wheeled cart can provide much-needed storage space, especially if it has two or three shelves. Use one or two to keep toilet paper and towels close by, and store some frequently used toiletries on top.

Another option is to find an attractive basket that will fit on top of the toilet and fill it with extra rolls of toilet paper. You can also roll up or fold towels and place them in baskets under the sink if you dont have a vanity.

Take Advantage of Empty Wall Space
If you have some unoccupied space on a wall, make the most of it by hanging shelves. Stack a few shelves, and keep items you frequently use easily accessible and things you use less often higher but still within reach. You can also mount decorative baskets on the walls to store extra toiletries.

Utilize Available Space Under the Sink
If your bathroom has a vanity under the sink, you can place storage caddies there to keep things organized in an awkwardly shaped space. If your sink doesnt have a vanity, the area under the sink can be an ideal spot to place a stack of drawers. They can be used for towels, toiletries and hair-styling tools to keep everything within easy reach but out of the way.

Organize Makeup So Items Are Easy to Find
If you own a large assortment of makeup and have trouble finding the eyeliner or lipstick you want, organize everything on a Lazy Susan. That will make it simple to find what you need on a busy morning and keep your makeup from cluttering drawers.

Create More Storage Space in the Shower
If you dont have enough room for shampoo, conditioner and body wash in the shower, you can make more storage space by mounting a rod next to a wall in the shower. Hang one or more storage caddies to keep things organized and easily accessible.

Hide Items From View
If your bathroom has a medicine cabinet or full-length mirror with a door that opens outward, use the area behind it to your advantage. Install some shelves to create hidden storage space.

Explore New Ways to Use Limited Space
A cluttered and disorganized bathroom can make hectic mornings even more stressful and lead to conflicts between family members. If youre struggling to keep your bathroom organized, try some of these simple, inexpensive and effective strategies to create more storage space.

Published with permission from RISMedia.