Uncategorized

Plan on applying for a home mortgage, car loan or new credit card? Lenders will be looking at your credit score to determine if youre a responsible borrower. The higher your credit score, the more likely a lender will qualify you and offer the best terms.

Although boosting your score requires time and discipline, here are five simple steps to take:

1. Pay Bills on Time
When lenders review your credit report, theyre very interested in how reliably you pay your bills. That’s because past payment performance is usually considered a good predictor of future performance.

You can help this credit-scoring factor by paying all your bills on time. That includes not just credit card and loan bills, but also bills for rent, utilities, cellphones and so on. Similarly, paying late or less than the minimum amount can hurt your score. Use automatic payments or calendar reminders to help ensure you pay on time every month.

If youre behind on payments, bring them current ASAP. Although late or missed payments appear as negative information on your credit report for seven years, their impact on your score declines over time: Older late payments have less effect than recent ones.

2. Pay Off Debt
The credit utilization ratio is another important number in credit score calculations. Its calculated by adding all your credit card balances at any given time and dividing that amount by your total credit limit. For example, if you typically charge about $2,000 each month and your total credit limit across all your cards is $10,000, your utilization ratio is 20 percent.

Lenders prefer ratios of 30 percent or less, and people with the best credit scores often have very low ratios. A low ratio shows lenders you haven’t maxed out your credit cards and can manage credit well. You can improve your ratio by paying off debt and keeping credit card balances low.

3. Don’t Close Unused Credit Cards
Keeping unused credit cards open”as long as they’re not costing you money in annual fees”is a smart strategy, because closing an account may increase your credit utilization ratio. Owing the same amount but having fewer open accounts may lower your credit score.

4. Don’t Apply for Too Much New Credit
Opening a new credit card can increase your overall credit limit, but the act of applying for credit creates a hard inquiry on your credit report. Too many hard inquiries can hurt your credit score, though this effect will fade over time. (Hard inquiries remain on credit reports for two years.) Unnecessary credit can also tempt you to overspend and accumulate debt, so apply for new credit accounts only as needed.

5. Dispute Credit Report Inaccuracies
You should check your credit reports at all three major reporting bureaus (TransUnion, Equifax and Experian) for any inaccuracies. Incorrect information on credit reports could drag scores down. Verify that the accounts listed on your reports are correct. If you see errors, dispute the information and get it corrected right away.

Source: Experian

Published with permission from RISMedia.

The idea of putting a minimum of 20 percent down on a home is a myth that can keep some people from trying to buy a home.

While it can be a great way to lower your mortgage payment and convince sellers that youre serious about buying, coming up with 20 percent of a homes purchase price can be difficult.

Here are some other options:

A lower down payment is acceptable. Lenders know that the 20 percent rule is a myth, and will often accept much less if you have good credit and a steady job.

The average down payment on a home purchase in 2016 was 11 percent, according to a report on aspiring homebuyers by the National Association of REALTORS. For borrowers under age 35, the average down payment was just under 8 percent. The largest share of loans for buyers under 35 were for people putting down less than 5 percent or about $3,500. Coming up with 10 percent down, however, can allow you to have a lower credit score”sometimes as low as 500 for an FHA loan”to qualify.

Around 3 percent is common. A few government agencies require only 3 percent or so down. Loan programs backed by Fannie Mae and Freddie Mac require 3 percent down, while the FHA mortgage that targets first-time buyers asks for 3.5 percent down. The FHA mortgage allows the down payment to be a financial gift or from an approved down payment assistance program.

The Fannie Mae HomeReady program allows non-borrowing household members to contribute toward qualifying income. So, if you have an aunt or roommate, their income can be included when qualifying for a home loan.

The programs dont require perfect credit. The average FICO credit score was 713, but borrowers with a 639 score can still be approved.

People who dont qualify for such programs can still buy a home with a 639 FICO score, but may need to increase their down payment to 5 percent.

There are no-down-payment options. VA mortgages require no money down for current and former military service members, and most lenders offer them.

Some loans for less than 20 percent down require private mortgage insurance, or PMI, which can add $100 or so to a monthly mortgage; however, VA loans dont require mortgage insurance.

USDA home loans also dont require a down payment. These loans are backed by the U.S. Department of Agriculture, and arent for farms but for single-family homes that are in less-dense areas of the country.

Piggyback loans are available. These require 5 ” 10 percent down and are two mortgages that work best for people with good credit. The first mortgage funds 80 percent of the cost and the second is a 10 percent mortgage”the final 10 percent is a down payment. This eliminates the need for mortgage insurance.

You can find other assistance programs. Down Payment Assistance programs, or DPAs, are run by the government and nonprofits. They offer gifts or no-interest loans to increase homeownership. Nearly 90 percent of all single-family homes in the U.S. are eligible for some kind of DPA.

All of the major loan types listed above allow DPA funds to be used toward a down payment. Your lender should be able to help you find DPAs in your area.

Published with permission from RISMedia.

There are myriad advantages to adding houseplants to your home. For starters, many different types can help to purify the air and provide a healthier living space. Visual appeal is an added bonus that can make any room feel livelier by bringing the outdoors inside.

Here are a few popular houseplants that are easy to maintain and will add a creative design element.

Ficus Audrey (ficus benghalensis)

A natural statement piece with its large, velvety leaves, the ficus Audrey is having a moment among houseplant enthusiasts. If you want a plant that requires minimal care and a minimalist look, this is the one for you.

Chinese Evergreen (aglaonema modestum)

Named among the top air-filtering houseplants by NASA, the Chinese evergreen is visually stunning with its pink and green leaves. Even if you dont have the greenest of thumbs, theyre quite resilient and can survive with indirect sunlight.

Rattlesnake Plant (calathea lancifolia)

If you enjoy bold patterns and vibrant colors, the rattlesnake plant will make the perfect addition to your home with its bright green and purple leaves. Theyre low maintenance, dont require direct sunlight, and will freshen up any room with a tropical feel.

Bunny Ear Cactus (opuntia microdasys)

Native to northern Mexico, the bunny ear cactus adds instant visual drama. Named for the two pads that are shaped like rabbit ears, it will sprout flowers in the summertime and is incredibly easy to keep alive as long as your home is not too humid. Whether you have a modern or minimalist look, cacti are an easy way to spruce up your homes design.

Fiddle Leaf Fig (ficus lyrata)

Theres no denying the fiddle leaf fig is among the trendiest of houseplants and its easy to see why. Those lush leaves add a bit of flair to your homes aesthetic and its the ideal size to fill unused space without feeling overbearing. Plus, these stylish trees improve the air quality, so you can breathe easy.

Published with permission from RISMedia.

In addition to being unsightly, mold in your home can create numerous health problems, from breathing issues to skin irritations, fevers and more. Below are some tips for keeping your home mold-free.

Treat topically. Homeowners often have their own mold-murdering solution they prefer. Whether you prefer vinegar, hydrogen peroxide or bleach, clean surfaces monthly to keep mold growth under control. Make sure you research your topical solutions before applying them ” bleach to a painted wall can discolor it.

Add ventilation. In addition to removing mold when it pops up, adding ventilation to an under-ventilated space can be key in keeping mold at bay. Your bathroom and basement are prime mold spots, so decide whether or not you should add an extra window to open the space.

Seal spaces. A crack in your basement’s foundation may be the culprit of the mold popping up. Have an expert do a walk-through with you to point out problem areas and then plug them up to battle mold even when you’re off-duty.

Published with permission from RISMedia.

No matter the size of your home, odds are you could still spend all day cleaning. Even though life tends to get in the way of secondary chores, identifying your homes major bound-to-be-disorganized areas can help ease the clutter tension in your home and save you cleaning time.

Kitchen: With so many pots and pans and accumulated bric-a-brac, your kitchen can go from tidy to out-of-control in no time. Sometimes, you just dont have the energy to put everything back exactly where it should go. To get back on track, take one day to strategically organize everything in your kitchen.

Take into account how often you use certain items and in what areas you use them. Keep your pots close to your stove, your utensils close to your plates; you get the picture. Divide your drawers so each item you are looking for is easily accessible. The way to win at this is to think lazy. Figure out what would be the most effortless way to go about cleaning up your kitchen and follow that path.

Closets: There are never enough hangers, there is never enough space, yet you are always adding more clothes. The trick to closets is to make sure everything stays in its place. Find ways to create divisions between your clothing items, be it drawers, hanging shoe-shelves, dividers, or boxes. The point is to make sure the proper clothes are getting appropriate hangers, and that everything else is staying out of the way.

Everything thats out of season can be packed away. Neatly putting them away in a box can even open up space by creating a surface that you can stack things up on. Also, dont forget your doors. Hang jewelry or shoe racks inside closet doors, clearing up more space for your other items.

Bathrooms: Last, but not least, is the never-ending disorganization that is the bathroom. With so many products and appliances, the task of organizing never seems to end. In this case, do the same as with the kitchen. Shampoo, conditioner, soap, and scrubs: it all goes in the shower. If your shower doesnt have built-in shelves, buy hanging organizers.

Use your storage space wisely by stacking towels under the sink, getting baskets to contain your lotions, perfumes, etc., and purchasing additional storage to stow away brushes, cotton balls, and other bathroom items.

Get in touch with your inner organizer and benefit from the perks of decluttering!

Published with permission from RISMedia.