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Home insurance may be one of the last things youll think about when buying a home, but in some situations, insuring your biggest asset isnt so easy. And without insurance, you wont be able to qualify for a home loan.

Here are five things that can make getting home insurance difficult, or at least more expensive:

1. A lot of claims: A long list of insurance claims at an address by previous owners can increase insurance rates. For an insurer, too many claims can mean theres an underlying maintenance problem that needs to be fixed, and its likely a big one. You can find out how many insurance claims were filed at the home in the last five years by buying a Home Sellers Disclosure Report from the Comprehensive Loss Underwriting Exchange.
2. Natural disasters: If the home is in an area where natural disasters strike, then youll probably need to buy extra insurance because the basic homeowners policy wont cover it. That extra insurance may be expensive, though you might be able to mitigate it by taking certain precautions, such as installing storm shutters in a hurricane zone, for example.
3. Old homes: Just like us, homes wear out with age. Old pipes and electrical systems can break, and an insurer may deny coverage until such things are updated. Or they may charge more for homes where some items may not be up to current building codes.
4. Backyard fun: A pool or trampoline in the backyard can be listed by an insurance company as an attractive nuisance for neighborhood children to get into while youre away. An injury or death in that situation would be horrible enough, and you could also be held liable in a lawsuit, meaning your insurer would likely have to pay up. Putting a fence and other precautions around them can help protect you, but insurers may still be wary and charge higher rates.
5. Vacant homes: If you buy a foreclosed or vacant home, theres a chance that pipes and other parts of the home can fall apart faster or be destroyed by vandals or evicted owners. This could lead to repairs being done before you can move in, possibly requiring extra insurance to cover vandalism, fire or other risks that can occur when a home remains empty.

If youre faced with any of these issues, remember that you can probably still find an insurance company that will cover you if you cant resolve them. The rates may be higher than normal, but at least youll be covered.

Published with permission from RISMedia.

If you’re having trouble paying your mortgage, programs are available to help homeowners in situations like yours keep their houses or avoid foreclosure. Don’t wait to ask for help.

Talk to Your Loan Servicer and a Housing Counselor
If you can’t pay your mortgage on time, contact your loan servicer. Explain the reason for the problem and whether you expect it to be resolved soon, or whether it’s permanent, so that the lender can offer options to help.

You can also seek guidance from a housing counselor approved by the Department of Housing and Urban Development (HUD). He or she can tell you if you qualify for a government assistance program, help you choose the best option offered by your mortgage servicer, make a budget and resolve credit card debt or other financial problems that are making it difficult for you to afford your mortgage.

Options to Get Back on Track
You might be able to refinance your mortgage by taking on a new loan with a lower interest rate or switching from an adjustable to a fixed rate. You could also modify the terms of your existing loan by lowering the interest rate. A loan modification may be temporary, but refinancing permanently changes the terms of the loan. Your credit score and amount of equity will affect your options.

Your lender might offer you a repayment plan so that you can postpone payments in exchange for making higher payments later. Before you agree to a repayment plan, be sure you understand the terms and can meet them.

If you have suffered a hardship, such as a job loss, a natural disaster, or an illness or injury that prevents you from working, your lender may offer you forbearance. You might be able to make lower payments or skip your payments for a period of time until your financial situation improves.

Ways to Avoid Foreclosure
If you’re in dire straits, you might be able to walk away from your home and avoid foreclosure through a short sale. Your loan servicer could agree to sell the house and accept the price received, even if it’s less than the amount you owe. In some states, the loan servicer can sue the homeowner for the difference between the amount of money received in a short sale and the amount owed (the deficiency), unless the homeowner obtains a written waiver of deficiency. Check your state’s law before you agree to a short sale.

Another option is a deed-in-lieu of foreclosure, in which you turn over your house to the lender to avoid foreclosure and damage to your credit score. If you would be held responsible for a deficiency in your state, request a written waiver. You might qualify for help with relocation expenses.

Ask for Help
If you’re struggling to pay your mortgage, your situation may seem bleak, but you have options. The first step is to contact your loan servicer and be honest about your situation so that your lender can help you find a solution.

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

Published with permission from RISMedia.

Every year in the U.S., fire kills over 3,000 people, injures thousands more and causes billions of dollars of damage. House fires are a major contributor to those horrific statistics, which is why its important to make fire safety a priority in your home. Here are some tips from the U.S. Fire Administration to help keep you and your family safe:

Fire Alarms
You may have less than three minutes to escape a home fire, so every second counts. For early fire detection, install smoke alarms on every level of your home and inside and outside all sleeping areas. Test your alarms monthly to ensure they work and dont need new batteries, and replace alarms that are at least 10 years old.

Kitchen
According to the U.S. Fire Administration, cooking is the No. 1 cause of home fires. To prevent a cooking fire, stay in the kitchen when youre frying, grilling, broiling or boiling food. If you leave the kitchen, turn the burner off. Keep things that can burn away from your cooking area, and turn pot handles toward the back of the stove so they wont get bumped.

Heating
Heating is the second-leading cause of home fires. Keep anything that can burn at least three feet away from fireplaces, wood stoves, portable heaters and radiators. When you leave a room or go to bed, turn heaters off or unplug them. Have your furnace, chimney and chimney connector inspected by a professional every winter, and make repairs before cool weather sets in.

Electronics
To prevent an electrical fire, plug only one heat-producing appliance, such as a microwave, coffee maker or portable heater, into an electrical outlet. If you have an electrical cord that is frayed or broken, throw it out. Use extension cords as a temporary power supply only.

Candles
Any open flame is dangerous, so if you use candles in your home, put them in sturdy holders. Place candles at least 12 inches away from anything that can burn, and make sure pets and children cant reach them. Blow out all candles if you leave the room, get sleepy or go to bed.

Cigarettes
If you smoke at home, youre at higher risk for a fire. Use deep, sturdy ashtrays, and make sure to put cigarettes all the way out. Smoke only when youre alert”never in bed or if youre drowsy.

Escape Plan
As mentioned, time is precious when it comes to a fire, so establish an escape plan with your family about what to do if there is one. Make sure everyone knows two ways out of each room, and agree on a distant place outside your home where you can all meet safely, such as a sidewalk across the street. To ensure family members remember the plan, practice it together at least twice a year.

If you keep these simple tips in mind, your home is bound to be much safer from fire.

Published with permission from RISMedia.

When someone passes away, his or her house is generally left to a family member. Figuring out what to do after inheriting a house can be confusing and overwhelming, particularly when it is unexpected or when siblings become joint owners. People sometimes rush to make decisions, and sometimes, they put off making important choices. Either can lead to more financial costs and stress.

Find and Prevent Damage
If you’ve inherited a house, you should first assess its current condition. Have the house inspected by a professional so that you know what needs work and so you can make any necessary repairs. Next, contact the utility companies to have the accounts switched to your name. It’s also important to keep the heat and water turned on to avoid problems such as frozen pipes. In addition, keep the electricity working and have the yard maintained in order to avoid making it obvious that the house is unoccupied.

Clean Out the House
Invite family members to the house to take any items they want, provided they weren’t left to specific individuals in the will. Start with immediate family members, then branch out to allow others to choose things they would like. This can be an emotionally difficult task, but putting it off will prevent you from moving forward and deciding what to do with the house.

Move in, Sell or Rent?
If you want to move into the house, find out how much the mortgage (if any) and property taxes would be. If you and your siblings are joint owners of the house and one of you wants to live in the space, the future resident can buy out the others, pay them rent, or work out another arrangement.

If you decide to sell the house, you will need to pay taxes on any increase in value between the time of inheritance and the time of sale.

Renting is another option to consider. While you might be able to make money by renting out the property, you need to consider the potential costs that come with this option. In addition to being responsible for taxes and insurance, you would also be personally responsible for maintenance and repairs, unless you hired a property manager. Hiring someone to handle these tasks would cut into your profits, but it could also make renting the house less stressful. If you choose to rent the space, be prepared to thoroughly vet prospective tenants to avoid dealing with missed rent payments, damage and possible eviction proceedings.

Think Things Over Carefully
The death of a loved one is an emotionally painful experience that can leave people feeling overwhelmed and struggling to make decisions. If you’ve inherited a house, it has likely created a host of financial and emotional issues that you weren’t anticipating. Talk to your family and ask professionals for advice so that you can make the right choices.

Published with permission from RISMedia.

Home shoppers who haven’t checked their credit report months before applying for a home loan may be in for a shock when they visit a loan officer. A host of problems could pop up: Their credit score could be a little too low to qualify for the best rate on a mortgage, they’re using a high percentage of their credit, or a credit card payment they sent on time is shown by the creditor as arriving late.

A rapid rescore can help if you’re in the middle of the process of buying a house. And it can help with a quick mortgage approval, having a days-long turnaround instead of a month if the issues can be resolved quickly.

How Rapid Rescoring Works
A rapid rescore is a process done by a lender or mortgage broker to quickly fix credit report errors that can hurt a credit score. It’s a process that can only be done by a lender or a company that specializes in rapid rescoring and has access to credit reporting company data that is pulled from credit bureaus.

Rapid rescoring takes 3-5 business days, while consumers who try to improve their credit score by contacting a credit company can spend 30-45 days fixing their credit score. Sometimes it takes that long because a credit service legally has 30 days to respond to a request, which is what they normally take with requests from individuals.

A rapid rescore can raise a credit score by 100 points or more within a few days, but that’s only if the negative information can be cleared from your credit profile quickly.

For example, paying a credit card down so that a credit utilization ratio”your outstanding balances compared to your credit limits”is less than 30 percent, can boost a credit score by 10 points or more. That could be enough to increase a 715 credit score to 725, where a 720 score is the cutoff to get a lower interest rate on a loan.

Fixing credit report inaccuracies is another reason to use a rapid rescore. Having proof that a payment was made on time, for example, when a bank says it wasn’t could be an error worth fixing.

Costs of Rapid Rescoring
The Fair Credit Reporting Act doesn’t allow borrowers to be charged for disputing inaccurate information on their credit report. Rapid rescoring fees are paid by the lender and can cost $20 to $40 per credit account that’s being checked by each credit bureau.

Updating the three major credit bureaus for three or four credit accounts can get expensive. Some lenders may average all three credit scores, while others may just use one credit bureau’s score.

Or, if you want to do it yourself, you can obtain a free copy of your credit report once per year from each of the three major credit bureaus: Equifax, Transunion and Experian. If done a month or more before applying for a home loan, it will give you enough time to review the reports and fix any errors.

Published with permission from RISMedia.