HOW TO BUY A HOME WITH BAD CREDIT

A poor credit history isn’t necessarily a deal-breaker when it comes to buying a home. Here are some tips to help handle the bad credit situation when buying a home.

Do you believe your negative credit history disqualifies you from buying a home? That might not be the case. And even if you’re not in the position to buy today, there are some simple, effective actions you can take to boost your future prospects.

If you’re like most people, buying a home means securing a mortgage. To secure that mortgage, you need to convince banks you’re a good bet. Here’s how to start on the path to making your dream home a real home:

1. Work towards a 10% down payment: Down payment assistance is very difficult to get without a credit score north of 640. So if you’re below the line, you’re going to help your odds of pre-approval by proving you have 10% down to put on your home. That 10% is especially helpful if your credit score is sub-550. Above 550 you might be able to land an FHA loan with only 3.5% in equity. 

2. Make moves to rebuild your credit: You don’t have to be perfect to improve your access to better mortgage terms. Here’s how to put points back on top: 1) Pay down your highest credit card balances first. 2) Get your credit report and look for errors you can correct or dispute. 3) Identify any outstanding debts or collections which you can manage to get cleared either through full payment or negotiated settlement. If you can push your rating above 620 you’ll not only get closer to better terms, but generally you’ll experience less scrutiny during the approval process.

3. Get a realistic picture of your debt-to-income ratio. Focus on doing what you can to bring your debt-to-income ratio below 45%. Mortgages do exist for people with higher ratios, but generally credit scores are well above 600 for this to become a reality. 

4. Understand your “seasoning period.” If you’ve experienced a bankruptcy, foreclosure, or short sale scenario, it may not be possible for you to secure a mortgage for at least three years (and sometimes two, depending on the situation). Use this time to work on the three tips above!

If you’d like to begin hunting for your next home, a good REALTOR® would be happy to help guide you. Or, if you need a referral to a reputable mortgage professional, a REALTOR® may be able to help you with that too! Most agents have a network of trusted folks they work with every year. Call your local REALTOR® today!

LEARN ABOUT XERISCAPING

Tired of maintaining a traditional lawn? Want something which conserves water and uses native plants? Consider Xeriscaping. Learn more about it here!

Ever find yourself overwhelmed by maintaining your lawn? Have you worried about the amount of water it takes to keep things green and growing? What if there was a way to transform your lawn to both make it both ecologically-friendly and strikingly different from every house on the block?

Xeriscaping (or xerogardening) is the practice of landscaping and gardening in ways that reduce or eliminate the need for excess water. Taken from the Greek word, “xeros” (meaning dry), xeriscaping was initially designed to provide landscaping options for areas which are particularly sensitive to drought.

Given that water is the most precious resource on the planet, perhaps you might you might consider this conservationist’s approach to landscaping your home. In addition to reducing the costs of watering and chemical maintenance, well executed xeriscaping can actually improve the curb appeal and value of your home.

Below are a couple of links on the topic of xeriscaping, including the “7 Principles of Xeriscaping”:

“Xeriscapes do not have a single look - almost any landscaping style can be achieved. The principles can be applied to all or part of a yard, in any geographic region of North America.”

Source: http://eartheasy.com/grow_xeriscape.htm

Also, check out these Google Image examples of Xeriscaping:

http://tinyurl.com/23keqet

Xeriscaping can be the perfect way to compliment your new “green home.” If you’re looking for a house with a gentle ecological footprint, get in touch with your local garden professional.

SOME FACTS ABOUT SELLING YOUR HOUSE "AS IS"

Do you know what it really means to sell a house “as is”? Get up to speed on the facts behind this sales process and dispel any myths.

Sometimes people inherit a home they simply need to unload and other times they don’t want to make the effort to make repairs or tune up the home’s curb appeal. 

For these home owners looking for a quick sale, they often think selling a home “as is” is the way to go. 

If you’re like most folks, you might think the “as is” sale means “take it or leave it” and “what you see is what you get.”

But an “as is” sale isn’t necessarily a cakewalk. It doesn’t mean you’re completely exonerated from taking some responsibility for the home’s condition. While advertising a home “as is” lets buyers know they’re likely to have to do some work, it also broadcasts that the home is probably going to be a relatively good deal, provided they’re willing to take on repairs.

“As is” doesn’t relieve you from disclosing problems with the home. What you know about, you must disclose by law. Failure to do so could get you into hot water. If you know about a problem but hope it slips by the buyer’s inspector, you’re at risk.

And that’s another thing: “As is” homes still go through the inspection process. While your “as is” sale may indicate your unwillingness to make repairs, it doesn’t mean the buyer won’t ask you for compensation based on condition issues. You may not come out of pocket, but it could come right off the top of your listing price, so keep this in mind. What’s more, once these conditions come to light you generally must disclose them to future prospective buyers if the current one bails.

With any luck, your “as is” buyer will be a cash buyer, but if not, prepare for the appraisal. Banks don’t want to loan money unless they deem the value of the home is acceptable. If the appraisal comes in low, your buyer may find themselves without the funds necessary to meet your price. 

While selling “as is” may seem like a viable alternative to bringing a house up to its full market potential, recognize there are some trade-offs. Go in informed and you’ll find the process much easier to navigate.

Whether you’re looking to sell “as is” or not, talk to your local REALTOR®. He or she would be happy to help you get the best price possible for your home.

GARAGE SALE PLANNING

If you are planning on selling your home and you want a smooth move to your new place, I thought I’d share some tips for planning and running a successful garage sale. There are some small things you can do to make the experience less stressful while putting a few dollars back in your budget. 

Here are some things I’ve learned helping clients declutter throughout my years in real estate:

1. Think about pricing ahead of time. Don’t force yourself to make decisions on the fly about how much you want to charge. It’s far easier to decide on pricing in advance, especially when it comes to deals like “10 books for $10” or “shirts are $5 each or 5 for $20.” Advance pricing will also help others help you sell, since you may not be on hand to answer every shopper’s question personally. Also: Be flexible with hagglers. Remember the goal is decluttering, not running a retail empire.

2. Get change before the sale. Stop by a bank or grocery store and get plenty of fives and singles to make change. Also factor making change into your pricing strategy so people can pay with even bills like tens or twenties.

3. Check local regulations. Some cities or homeowner’s associations have rules about how garage sales can be operated and advertised. Don’t get shut down or fined. Check with the city or the HOA for details.

4. Advertise in advance. Don’t rely on foot traffic alone. Post on Craigslist, Facebook, NextDoor, and any other online forum where you feel safe advertising the sale. Post flyers a few days before the event and use directional signs at intersections to point the way. (As always, do this in accordance with local regulations.)

5. Keep spare bags and boxes handy. Collect some paper grocery bags or cardboard boxes people can use to haul away their purchases. This is a clever way to keep a casual shopper from deciding not to buy because they can’t carry their goods.

MANAGING RESENTMENT

Selling a buying a home comes with a lot of emotional ups and downs. One that makes a frequent but unwelcome appearance is resentment. 

Sometimes called the “silent killer,” resentment is largely the result of unaired grievances or poor communication. What may be in actuality a very small (and often mis-perceived offense) can be the seed from which a series of bad decisions arise— passive aggressive behavior, professional sabotage, and higher stress levels across the board.

Resentment can also become toxic between buyers and sellers. This is especially true during the negotiation process. This attitude is ultimately counterproductive to closing the sale. Rather than focusing on the terms and compromises at hand, parties can become entrenched in personal warfare. Successful negotiation means keeping resentment out of the picture.

One thing you can do to mitigate resentment is to take the high ground should perceived slights enter the picture. Don’t assume the worst. In fact, the antidote to poisonous resentment is forgiveness. As inspirational author Dan Zadra writes, “Resentment is one burden that is incompatible with your success. Always be the first to forgive; and forgive yourself first always.”

Keep an eye out for growing resentment on either side of the fence. Anything you can do to diffuse or manage resentment before it manifests itself will go a long way to securing your future success, be it a successful move or any venture in your life.  

Wishing you all the best,

Valerie

FIVE TIPS FOR MAINTAINING HOUSEPLANTS

Adding plants to your home will give it a fresher and brighter feel and will also improve your home’s air quality. Although it does take a little bit of work and consistency to maintain your plants, but it’s well worth the effort. Here are a few tips for keeping your plants looking great.

1. Use leftover water from cooking. Plants love the extra nutrients from your leftover cooking water that can’t be found straight from the tap. Instead of dumping the water right after boiling vegetables, let it cool and use it to water your plants.

2. Coffee makes great fertilizer. Rather than throwing your used coffee grounds in the trash, empty out your French press or coffee filter straight into a planter.

3. Dust your plants. This should be part of your regular dusting and cleaning routine. Keeping your plants’ leaves dust-free keeps them healthier.

4. Pay attention to soil types. Different plants require different soils. Do some research to discover each plant‘s preferred soil. For instance, succulents require sandy, dry soil.

5. Beware of root rot. Houseplants are prone to root rot because there’s often no where for excess water to drain from the planter. Prevent root rot by putting pebbles in the bottom of the planter, which elevates the roots. Use a water-hydrogen peroxide mixture for plants that are already showing signs of root rot.

AVOID THESE LAWN CARE MISTAKES

It’s easy to take a few missteps when it comes to lawn care, especially if you’re a new homeowner and it’s your first time being solely responsible for your yard and landscaping. Here are a few tips that will help you avoid lawn-related frustrations.

Cutting the grass short. Lowering the height of your mower blades may give you a few extra days between each mowing, but it’s bad for your grass in the long run. Don’t go any shorter than 2.5 inches, or your grass could be starved for sunlight.

Watch where your dog urinates. Finally out of an apartment and ready to let the dog into the back yard when it’s time to go? You might regret it. Your pets’ urine can kill your plants and grass. Try to train your dog to go in one spot, preferably in stone or gravel.

Be careful with fertilizer. Fertilizing your lawn isn’t as simple as picking up any bag at a local store. Choosing the wrong fertilizer, using too much, or ignoring the instructions is a recipe for disaster. Do plenty of research or ask a professional if you need help choosing.

Give your plants room to breathe. The nutrients in soil are a finite resource, and your plants and shrubs also need their fair share of water and sunlight. If you plant your shrubs, trees, and flowers too close together, they’ll have to compete for those resources and may become malnourished. Pay attention to the planting recommendations for each plant to make sure that they have the proper space to thrive.