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If you’re between jobs or retired”or not working and considering retirement”you can still buy a home and get a mortgage that will require you to make monthly payments.

While you don’t need a job to get a mortgage, what you do need is income. And there are many types of income that lenders will accept for a mortgage loan. You’ll likely need to have a few of them to qualify, and you’ll need to document them. Here are some sources of income beyond having a job:

Social Security
Retirees aren’t the only people receiving Supplemental Security Income (SSI), which is a form of income. You may be on permanent disability or dependent on someone and receive SSI income.

Pension
If a former employer is sending you a regular check each month, it should be easy to document this income with bank statements or an award letter.

Retirement Fund Withdrawals
IRA withdrawals are required at a certain age. At age 59 1/2, you can withdraw any amount from your IRA without having to pay the 10 percent penalty; however, your regular income tax will be due on each withdrawal. Traditional IRA distributions aren’t required until after age 70 1/2. Most mortgage lenders will require having enough money in your retirement accounts to support withdrawals for at least five years.

Spousal or Child Support
You aren’t required by law to reveal income from spousal or child support, but you can if you want to, especially if it’s needed to qualify for a mortgage. The income should continue for at least three years, which should be stated in a divorce decree or child support agreement.

Dividend and Interest Income
If your investments are earning you money, that income can help you qualify for a mortgage. Most lenders will average the last two years of income as reported to the IRS, so lenders will need tax returns to use this income.

Asset-Based Income
Aside from any restricted retirement accounts, investments and savings that don’t have dividend or interest income can be used as income to qualify for a mortgage. These funds should be substantial, since Fannie Mae and Freddie Mac rules divide those assets by the number of months in which the loan will be repaid.

Private Loans
If you’ve loaned someone money and they’re paying you back, or you sold a house or business and are carrying a loan note that’s being repaid to you, these can qualify as income. Payments must last for at least three years to qualify as income toward a mortgage. A copy of the note and bank statements showing payments received will be required.

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

Published with permission from RISMedia.

If you need financing to buy a house, one option you might consider is a balloon mortgage. It offers lower interest rates and monthly payments than some other types of loans, but it’s important to understand the terms and consider your future plans to decide if it makes sense for you.

How It Works

With a balloon mortgage, you make relatively low payments for a period of time, typically five or seven years. At the end of that period, the remaining balance on the loan needs to be paid off in a “balloon payment.”

If you cant afford to pay off the loan, you can refinance to the current interest rate. Depending on how market conditions have changed in the time since you took out the mortgage, your payments might rise dramatically overnight.

Another option is to sell your home before the balloon payment is due. If you get a good price, you can pay off the mortgage, and you will have benefitted from several years of low payments before that.

Reasons to Choose a Balloon Mortgage

If you want to buy an expensive house, a balloon mortgage can be an attractive option. Since the interest rates are generally lower than those for other types of loans, you might be able to borrow more money than you otherwise could and buy a bigger house.

If you recently started a job in a field where you expect your income to rise significantly in the coming years, you can take advantage of low payments now and be able to pay more later. If you know that you only want to live in your house for a relatively brief period of time, you can make low payments while you live there and then sell the house before the balloon payment is due.

Potential Downsides

If you decide to take out a balloon mortgage and plan to stay in your home and refinance when the balloon payment comes due, you need to consider the risks. If your income goes down or your credit score suffers because of too much debt or late payments, you might not be able to qualify for refinancing at an attractive rate, or at all. Then you might be forced to sell your house or risk foreclosure. Interest rates could rise between now and then, and your payments after refinancing could skyrocket. It’s also possible that property values could fall. If you owe more than your house is worth, it will be difficult or impossible to refinance, which means you could face foreclosure.

Think It Over

If you’ll definitely sell your house in the next several years, a balloon mortgage could be a smart choice that could save you money. If you plan to stay, circumstances could arise that could make it difficult or impossible to refinance, which could force you to sell or lose your house. Figure out what you plan to do and carefully consider the pros and cons before you choose a balloon mortgage.

Published with permission from RISMedia.

Whens the last time you paid attention to your lights, switches and fixtures?

They may seem like little things, but when selling a home, everything counts, so putting some thought into your homes lighting can go a long way toward sprucing up your home without emptying your wallet.

Here are some easy things that you can do:

Install new bulbs. This is an affordable way to set the right mood in rooms throughout your home. New bulbs also mean they wont burn out while potential buyers look over your home.

Choose the right bulbs for each room. Bright lighting in the kitchen and softer lights in the living room, for example. If you have a ceiling fan with more than one bulb, avoid high-wattage bulbs, and install those of equal wattage.

Replace outlet covers. This is another economically-friendly step that can make a difference. Pick the right colors for each room, and make sure plates match. Another advantage to doing this”youll make sure all outlet covers are tightly screwed on and secure. Be sure to take any necessary safety precautions before changing any plates.

Dust and clean. Lighting on the ceiling can collect dust, especially on globes that cover bulbs, exposed bulbs or chandeliers. Built-up dust in these areas is unsightly, so take a few minutes to dust these. Be sure to do it in the afternoon while the lights arent on and hot to the touch. Then, take a look at the covers of your light switches. Hands are all over these, so theres a good chance theyre marked by fingerprints or food stains. Clean these with a window cleaner; use very little cleaner and be careful because you dont want liquid getting into the switch area.

Check your switches. A lot of houses have switches that just dont work or are backward, turning lights off when in the up position and vice-versa. These are little things, but any imperfection can be a distraction to visitors. It may well be worth the time and expense to hire an electrician to repair or replace any broken switches or outlets that dont function properly.

Remember exterior lights. Outdoor lights are also important. If people visit the house at night, you want walkways to be well lit, and if outdoor lights arent working because of burned-out bulbs, it could be a sign that other areas of the house are being ignored.

Taking these steps can help you sell your home faster.

Published with permission from RISMedia.

Title insurance can be one of those things that someone says you need when you buy a home, but you dont understand why.

Without it, you could be left with a nagging question in the back of your mind: “Does the seller really own the property?” If the answer is no, it could be bad if you dont have title insurance.

Some people or companies other than the title owner may have rights to the property. For example, the property owner may have sold mineral, air or utility rights to someone else. Or a bank with a mortgage on the property may own an interest in it. The government can also have a lien on the property for unpaid taxes.

What does title insurance do, exactly? Basically, it covers events related to the title that have already happened. It doesnt cover future things that happen to the title after it has been issued.

First, the title company or an attorney verifies that the seller owns the property and is free to sell it. The title search includes searching property records to make sure there havent been any clerical errors and that there arent any undisclosed heirs, spousal claims, omissions in deeds, unknown liens or fraud with the deed. If there are any errors, theyre fixed before the home purchase transaction is completed.

Second, the title company contracts an underwriting company to issue an insurance policy, called title insurance. This protects you in court if anyone challenges you to the title of your home. If you lose any equity, youll be compensated.

Two insurance policies will often have to be bought by the homeowner: one protecting them as the owner, and a lenders policy protecting the lender. The lender requires the insurance because it is providing a loan with the property as security. A problem with the title affects the value of the lenders security. Only the amount of the loan will be covered in the lenders policy, and it will decrease as the homeowner pays back the loan.

Published with permission from RISMedia.

Interest rates remain low, though thats no reason to stow your money under your mattress.

Hiding your money at home wont earn you any interest, and thats one of the benefits”no matter how small”that banks and credit unions can offer customers. But banks and credit unions have different benefits and drawbacks, and knowing how each works can make it easier to decide where to put your cash.

Here are some differences between credit unions and banks:

Profit vs. no profit: The first thing to note when comparing banks to credit unions is that banks are in business to make money and credit unions are not for profit. This can allow credit unions to offer better interest rates, which well get to shortly.

Credit unions are cooperatively owned and run by volunteer board members, who decide interest rates and other factors. To join a credit union, you may have to be a member of an employee group, association or some other specific affiliation, and may have to live in a specific geographic area.

Interest Rates: Credit unions have slightly better interest rates than banks on CDs, money market accounts, regular savings accounts and interest checking accounts, according to the National Credit Union Administration (NCUA).

Better Loans: Credit unions also have either the same or better rates on home loans, and their car loans can be half the rate of what a bank charges, according to the NCUA data.

Deposit Insurance: Both credit unions and banks have the same protection from the federal government through the Federal Deposit Insurance Corp., or FDIC. It insures up to $250,000 per account for checking, savings, money market and CD accounts.

Lower Fees: Credit unions generally charge less in fees than banks, according to the NCUA, though its website didnt offer specific examples. When looking into banking fees, ask about minimum balance requirements to avoid a monthly fee, whether youre limited to withdrawals from a savings account each month, what debit card fees it charges and if youre reimbursed for fees at an ATM not affiliated with your account.

More Options at Banks: From a retirement plan to business loans and investing services, and everything in between, most banks will often offer more services than credit unions do. Banks also have more brick-and-mortar locations and ATMs that are spread around the country and are free to customers, making them a more convenient option.

Wherever you decide to put your money, check online with the FDIC to ensure that the bank or credit union you want to do business with is insured by the FDIC and is a legitimate financial institution.

Published with permission from RISMedia.