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When applying for a home loan, it’s important to keep in mind how much monthly mortgage you can afford. Through the approval process, lenders will factor in your credit score, income and other financial data to determine the maximum loan amount youre eligible for, and you may qualify for more than you can afford. Consider how much you should borrow to keep your monthly expenses and family budget manageable.

To start that calculation, find an online mortgage calculator. It should show you the total costs of owning a home beyond the principal and interest of a mortgage. Other expenses can include private mortgage insurance, home insurance, property taxes and HOA fees.

Once you have that total number, you can determine if it fits within your monthly budget. If not, then you may have to find a lower-priced house to buy.

28 percent, a good start
The Mortgage Reform and Anti-Predatory Lending Act requires mortgage lenders to determine that borrowers can reasonably repay a loan. The decision is based on an applicants credit, job stability and income. The law doesnt allow mortgages to take up more than 35 percent of monthly income.

Many lenders use more stringent requirements, limiting a payment to 28 percent of monthly income.

How to do the math
Doing the math on how 28 percent of income equates to dollars is easy: Multiply your monthly income by 28, then divide that by 100. That number equals 28 percent of your monthly income.

Heres an example: The median U.S. household income in September 2014 was $51,939, according to the U.S. Census Bureau. That equals about $4,328 per month in income. Multiply that by 28 to get $121,191, then divide by 100 to get $1,211.

That $1,211 is 28 percent of the median households monthly income.

Beware of other debt
Other debt and expenses, however, may make it difficult to afford paying 28 percent of your monthly income toward a mortgage.

Credit card debt, a car loan and student loans will also be looked at by lenders, and if they add up to more than 7 percent of your income you may not qualify for a mortgage that costs 28 percent of your income. Your debt-to-income ratio would be at 35 percent or higher, and a lender may require you to pay off some debts before approving you for a home loan.

Contact me for more insights and info.

Published with permission from RISMedia.

Many people have debts that they are unable to repay. Sometimes, this is a result of overspending. In many cases, it occurs because of a job loss, an illness or injury that makes it impossible to work, or a divorce. When people are buried in debt, bankruptcy may seem like the only viable solution.

Bankruptcy does not need to cloud your finances forever. With some hard work and patience, you may even be able to realize your dream of owning a home. Here are some strategies to improve your situation and qualify for a mortgage.

Steps to Take
The first thing you need to do is to have the bankruptcy discharged. If you are still in the process of filing for bankruptcy or working with a credit counselor, you will not be able to qualify for a mortgage.

After your bankruptcy has been discharged, request copies of your credit report from the three main credit agencies: TransUnion, Equifax and Experian. Mistakes on your credit report can make it difficult to obtain a mortgage. If you find any, write to the credit agencies, provide documentation and ask them to correct the information.

You will need to rebuild your credit to prove to lenders that you are able to manage money responsibly. One way to do that is to apply for a secured credit card. The issuer will provide you with a line of credit limited to the amount of money you have in an account with the bank. Avoid making purchases that will use too much of your available credit line. To take it up a notch, make payments on time and pay as much as possible to keep your debt low, avoid high interest payments and rebuild your credit score.

You can also improve your credit score by making payments on an installment loan. This is a loan with monthly payments, such as for a vehicle, student or personal loan. Making payments on time every month can show lenders that you are a low risk borrower.

Since mortgage lenders look for borrowers who are employed and stable, stay at your job for as long as possible to improve your chances of qualifying for a mortgage.

It is generally a good idea to wait at least two years after your bankruptcy is discharged before applying for a mortgage. While you might be able to obtain a loan sooner, it would likely be at a higher interest rate, which would result in high monthly payments. While you are waiting to apply for a mortgage, save as much money possible to put toward a down payment and closing costs.

Working Toward a Brighter Future
Declaring bankruptcy is a setback, but it does not have to prevent your dream of owning a home from becoming a reality. Take some time to rebuild your credit, save money and prove to lenders that you can be trusted to repay a loan. With time and dedication, you can be on the road to obtaining a mortgage and living in the home of your dreams.

Published with permission from RISMedia.

Whether you just moved into a new place or are looking to freshen up for important company, getting rid of musty odors can be difficult. Below are five helpful ways to freshen up the smell of your spot.

Include house plants. Even the subtlest-smelling house plant will help clean the air through natural filtration. In addition to potted varieties, add cut flowers in vases for a sweet floral scent.

Wash walls. Odors can often become trapped on your actual walls. Once a year, remove pictures and art and give the walls a good scrub down with a natural solution, like diluted vinegar. Be sure to test the solution in an unseen corner first to make sure no discoloring will occur.

Air out drapes. Heavy window hangings are a prime culprit of trapped smells. Drag them outside to hang on a breezy line for a day to return them to their natural smelling state.

Clean rugs. If you have area rugs or wall-to-wall carpeting, it’s important to give them annual washings to keep them smelling fresh, especially if you’re a pet owner. You can air out area rugs outside, and steam clean installed carpeting.

Throw open windows. Opening all the windows in your home can do wonders for the smell state of your space. This is especially helpful in winter, when windows tend to stay closed for months on end as heat pumps inside. On a clear day where rain is not on the forecast, throw on a sweater and open your windows to refresh the air inside.

Interested in more housing tips? Feel free to contact me directly.

Published with permission from RISMedia.

Improving your home before you sell it can seem like wasting money. After all, if youre not going to live there much longer, why remodel or add features you wont get to use much?

Because, as any real estate professional will tell you, the upgrades can help you recoup the cost and more in a higher selling price for your home. Without some updates, home sellers may realize their home is not worth as much as they thought.

Here are some of the features that increase the resale value of a home:

1. Laundry Room
Starting at $1,000, adding a laundry room to a home helps clean out other rooms where clothes may be stacked and can keep the living space tidier.

The basement is the easiest place to put a laundry room. Another option is to add a laundry closet that fits a washer and dryer and some shelves.

2. Energy Efficient Items
Energy Star-qualified windows and appliances can be good selling points for buyers looking to save on their utility bills.

A water-efficient washing machine can cost anywhere from $500 ” $1,800, while a dishwasher that senses how dirty the dishes are so that less water is used costs about $225 ” $1,600.

3. Ceiling Fan
For as little as $50, a ceiling fan can lower cooling costs when used with an air conditioner. After chilling a room, a ceiling fan can keep the room cool and allow the thermostat to be raised a few degrees.

4. Patio
For about $950, you can add a 120-square-foot concrete patio. This feature can be very appealing to buyers and can make a backyard look much more inviting. Add a table and some patio furniture, and buyers can envision themselves sitting outside with friends at a party.

5. Hardwood Floors
Since they are easy to maintain and have a clean look, hardwood floors are gaining ground in popularity. If refinished periodically, hardwood floors can last a lifetime, compared to about 10 years for carpet.

6. Garage Storage
Storage space always seems to be lacking in homes, especially for growing families. Add some storage to a garage to keep clutter out of a homes living areas and youve essentially created a bonus space.

Storage in a garage can include cabinets, shelves, rows of boxes, and improved lighting and extra electrical outlets.

7. Exterior Lighting
Light fixtures are relatively inexpensive, and illuminating the outside of your home doesnt have to be a Disneyland-at-night event. At the very least, put spotlights on walkways and the driveway so that nighttime visitors wont stumble to your door in the dark.

Published with permission from RISMedia.

When the day is done, nothing is more relaxing than retiring to your bedroom. Unless, of course, your bedroom isn’t a calming space. Below are several tips for designing a sleeping space that brings calm and comfort.

Cool colors. There is nothing calming about a blood red bedroom. Choose a cool hue like gentle blue, green or gray to fall asleep easier.

Window covers. Say it with us: black out shades. Make sure you can block light with opaque window coverings so your hibernation goes uninterrupted.

Tech-free. While many like to watch TV in bed, try and create a sleeping space that is for one thing: sleeping. It’s well known that the light from our devices can interrupt our sleep cycles, so if you must occupy your brain before bed, opt for reading over a Netflix binge or a social media troll.

Clear clutter. Make sure your room remains neat and clutter-free so your mind doesn’t go into over-drive when you enter. Keep clothes in the closet or hamper (not on the floor!), clear those surface areas from stacks of bills, and make your bed every morning so sleeping between the sheets feels fresh every night.

Light it right. There is nothing calming about a harsh overhead light. Set warming accent lights by the bed, or control your overhead light with a dimmer.

Published with permission from RISMedia.