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How many times have you heard the story about people who move into their dream home only to find out that theres a huge plumbing issue or noisy neighbors next door? Learn from their mistakes, and reconsider certain factors before signing on the dotted line. Heres a comprehensive checklist for homebuyers when it comes to deal breakers:

1. Plumbing: If the plumbing isn’t working, guess who has to spend money fixing it? You got it: the person who signs on the dotted line. Plumbing issues can be even harder to address in older homes that have an outdated set-up. Be sure your inspector conducts a thorough evaluation before closing.
2. Electrical System: Whatevers not there has to be added, and whatever is not working has to be fixed. And since were talking about electricity, you could literally be playing with fire when it comes to outdated systems.
3. Roof: Here come the leaks. Or the potential leaks that will pop up after your first winter at the new place. You dont want anything getting in between you and your Christmas dinner, so make sure the home has a roof that is reliable and can be easily maintained.
4. Location: If you want a home by the beach, dont buy a home in the city. But departing from the obvious, keep in mind how noisy or quiet your street is, or how close your home is from the things that affect your lifestyle.
5. Layout: Similar to the location, you want to make sure your future house is laid out as close to what you had in mind as possible. If the bedrooms are too small to fit two kids per room, it will be costly to make those upgrades.
6. Placement: This detail is often overlooked. Your home might be laid out perfectly and in a location you approve of, but it might be placed too far or too close from the street. Your home could also be sandwhichedagainst another house, not allowing for any privacy, or it could be too secluded. Before buying, take a good look around the outside of the home, not just the inside.
7. Flooding: Make sure youre aware of whether or not your home is at risk of flooding, and dont dismiss this factor just because youre not close to a body of water. A slope in the road combined with a bad draining system can have your front porch swimming with the fish after a heavy rainfall.
8. Upgrade Restrictions: Dont get carried away with upgrade ideas before first double checking that there are no local restrictions. Ask the local municipality directly, given that the seller may not even know for sure.
9. History: In essence, make sure that your house has been patched up correctly through the years. You dont want to invest in a place that appears fine but may actually start collapsing after a few months.

Also keep in mind that the things that may inconvenience you now will also inconvenience a future buyer. Make sure youre not locking yourself into a bad deal.

Source: Zillow; LearnVest

Published with permission from RISMedia.

The Department of Veterans Affairs (VA) assists active-duty military members, veterans and surviving spouses who wish to buy a house. The VA offers loans with fewer fees and competitive interest rates that can help military families afford to buy homes in a variety of financial circumstances.

Eligibility
Active-duty military members, reservists, National Guard and veterans are eligible for VA loans. Spouses of military members who died on active duty or as a result of a service-related disability are also eligible.

Active-duty members of the military usually qualify after they have served for six months. Reservists and members of the National Guard are typically eligible to apply after six years, but they become eligible after 181 days of service if they’re called to active duty. If they serve during a war, active-duty members, reservists and National Guard members become eligible after 90 days of service.

To apply for a VA loan, the borrower needs to obtain a Certificate of Eligibility (COE). In many cases, a lender can obtain the COE on behalf of the borrower.

Loan Terms
A VA loan is issued by a private lender and is guaranteed by the Department of Veterans Affairs. Since the loan is guaranteed, the borrower is not required to obtain mortgage insurance. This can save military members and veterans hundreds or thousands of dollars every year. A borrower doesn’t need to make a down payment to qualify for a VA loan.

VA loans do require a one-time funding fee for applicants. The fee amount depends on the type of veteran and whether he or she is making a down payment. Fees for reservists and members of the National Guard are slightly higher than those for active-duty members of the military. The fee is lower if the borrower makes a down payment.

Although the VA doesn’t require a minimum credit score to qualify for a loan, individual lenders do have requirements. Borrowers must also prove that they have enough income to cover the mortgage payments, and they shouldn’t have too much debt. The guidelines are, however, more flexible than they’re for private loans. Lenders will consider a borrowers overall financial circumstances.

The amount an eligible veteran can borrow depends on the location of the house. A VA loan can only be used to purchase a primary residence, not to buy or refinance a vacation or investment property.

The VA offers assistance to borrowers who are having trouble making their mortgage payments. It can negotiate with lenders directly to help struggling borrowers. Veterans may be able to work out alternate payment plans or modify the terms of the loan to avoid foreclosure.

Valuable Assistance for Military Families
Veterans who have served their country are eligible for many benefits, including assistance with buying a home. The VA offers loans with many attractive features”such as no down payment, no mortgage insurance and competitive rates”that can save veterans thousands of dollars compared to traditional loans so they can realize their dreams of homeownership.

Published with permission from RISMedia.

If your credit score is low, it could be due to errors on your report. This is very common, and it can significantly lower your score and make it difficult or impossible to be approved for a credit card, car loan or mortgage.

If your credit report contains inaccurate information, take the necessary steps to dispute it and have the mistakes corrected. A credit repair company may be helpful in some cases, but it might not be necessary.

What a Credit Repair Company Can and Cant Do

A credit repair company can help you dispute inaccurate information. You can do that on your own as well, but if your report contains several errors, or if you have been a victim of identity theft and criminals have opened several fraudulent accounts in your name, it might be too complicated and time-consuming to dispute all of the errors yourself. A credit repair company can write to the credit bureaus on your behalf to dispute the errors and provide the documentation that is needed to correct them.

In most cases, a credit bureau is required to investigate a dispute within 30 days of receiving the information. That can help you correct mistakes and repair your credit score quickly so you dont have to put your financial goals on hold.

A credit repair company cannot remove negative information from your credit report if the information is accurate. Bankruptcies, liens and accounts in collection will stay on your credit report for several years, and there is nothing you or a credit repair company can do about it.

How to Find a Reputable Company

There are many legitimate credit repair companies that follow the law and respect consumers rights, but there are also a good number of scams. If a company promises to raise your credit score by a specific number of points, dont believe it. If a company tells you to dispute correct information, dont do it. It’s also illegal for a credit repair company to charge you before they complete any work on your behalf.

A reputable company should explain your rights and be clear about what they can and cant do to help you. They should listen to why you want to dispute information and request documentation to support your position. They should not promise you instant results.

Published with permission from RISMedia.

Whether youve owned a home for years or are buying your first home, purchasing insurance can be confusing. Some of that confusion can come from policy myths that are often not true.

If ignored, thesefive home insurance myths could cost you in the long run.

1. Flood coverage is standard. Flood insurance isnt usually part of a standard homeowner’s insurance policy. You might think it is, or should be if you live in an area prone to flooding. However, homes in flood zones are typically required to have separate flood insurance. FEMAs National Flood Insurance Program and private insurers can provide you with flood insurance. Just remember that the cost will be separate from your home insurance costs. Even if you live near a flood zone, it may be worthwhile to buy the extra insurance.
2. Everything I own is covered. Home insurance has its limits, and is meant to protect your home from disasters such as fire and hurricanes, or as protection from burglars and accidents. It isnt meant to replace all of your personal property, such as expensive jewelry or artwork. Those should be covered by a scheduled personal property policy separate from your standard home insurance policy, which should clearly state whats covered and what isnt.
3. Base coverage on market value. If you think you need to buy enough insurance coverage based on your homes market value, think again. A better way to think about it is to buy enough insurance to cover the cost of rebuilding the house, which is different from the home value at the time you buy an insurance policy. In fact, you may need less coverage than the market value to rebuild the home
4. My home business is covered. Running a business out of your home requires a separate type of insurance coverage that isnt typically included in a standard homeowners policy. A business rider added onto your existing home insurance policy shouldnt cost too much and will protect your office items if they are stolen or damaged.
5. All injuries are covered. If a guest is injured at your house or on your property, the liability coverage in a home insurance policy will typically pay for any claim filed. This isnt the case if you or a family member is injured in your home. If you fall down the stairs, dont expect a home insurance policy to pay for your doctor’s bills. Instead, look for help from your health insurance.

Published with permission from RISMedia.

The higher a down payment is on a house, the cheaper the mortgage will be. Its simple math.

The traditional down payment of 20 percent for a house is just that ” traditional. There are all types of loans that can range from zero down to 3, 5 or 10 percent of a homes purchase price required upfront as a down payment.

Saving big ” such as 20 percent ” is a smart way to prepare to buy a house because the more money thats put down, the more favorable the loan terms can be. Whatever amount you want to come up with for a down payment, there are different ways to save for it. Here are a few:

Divide it into increments
Lets say youre planning to save for five years before you buy a house. If you want to save $50,000 for a down payment, youll need to save $10,000 per year. Divide that by 12 and your monthly savings goal is $833.

However you accomplish it, thats your monthly goal ” saving $833 per month. Its a big number, but its a lot smaller than seeing the ultimate goal of $50,000, and is easier to comprehend than an annual $10,000 goal. With that goal in mind, your next step is to figure out how to get there each month.

Save money everywhere you can
Any expenses you can save can add up to monthly savings ” as long as you put that savings aside in a savings account for your down payment fund.

Look at cutting cable TV, cell phone service, gardening and housecleaning bills, and any other expenses that can either be cut back or eliminated. Put the difference in your savings account.

Work extra and sell your extra stuff
Two people can save for a house by working an extra two hours per day. There are all kinds of jobs in the gig economy, from dog walking to house sitting, driving Uber, tutoring and selling a service or product online.

If you have extra stuff that youre not using anymore, sell it online. If your old bike is collecting dust and is in good shape or can be repaired inexpensively, chances are someone will buy it.

Invest
Whatever extra money you make, invest it and let it work for you for the next five years. Compound interest from a mutual fund that you contribute to monthly can grow a lot faster than a savings account can.

Before investing, know that you can lose some or possibly all of your investment. So only invest as much money as youre willing to risk losing. The longer you invest, the more likely you are to ride out market volatility and meet your financial goals.

Published with permission from RISMedia.