Salary Drop? You Can Still Get a Mortgage

 

In uncertain times, it can be easy to sit back and worry your time away hoping things will work out eventually. Although worrying will absolutely give you something to do, it won’t get you anywhere. So if you’ve been wanting to buy a home or refinance this year, don’t discount the possibility just because your income may have dropped. It’s true that qualifying for a mortgage is getting trickier for many potential borrowers, but you still have plenty of options and opportunities for a home loan.

How Have Things Changed?

Many industries are facing uncertain futures and what are likely to be unstable paths of recovery. Because of this, lenders have become increasingly concerned about borrowers’ abilities to repay loans. That’s not to say that there’s no hope in sight for workers or business owners, just that from a lender’s perspective, the pandemic has introduced an additional level of risk that has never been factored into home lending equations before now.

So it’s not that you’ve done anything wrong, or that home buyers in general have done anything wrong, but lenders like to see that incomes are stable and will continue to be stable for the foreseeable future. And in the current economic climate, this is pretty much impossible to forecast. Given this, lenders are getting more choosy about who they’ll lend to. Minimum credit scores are going up and, in some cases, so are down payments. The good news is that lenders are still issuing loans for home purchases and refinances, even to buyers who have lost income during the pandemic.

Getting a Loan With a Salary Drop

Revenues in many industries have taken a huge blow, and many workers are being asked to take a salary cut in order to maintain the integrity of the workforce. This doesn’t necessarily mean that you would be denied a loan, although you may need to provide additional documentation so your lender has a better picture of your overall financial picture. But a lower income can still affect your loan in one or more ways:

• It can reduce the amount you’ll qualify to borrow. This one is pretty obvious; if you’re making less, even temporarily, you won’t be able to make as large of a loan payment. Your lender may still be more than happy to make some kind of loan to you, but it may be for much less than you expect. So if you must borrow while on a reduced income, brace yourself for purchasing down. The upside to this, though, is a home that you’ll owe less on and be able to pay down more quickly once your income is back to normal.
• It can change your debt to income ratio. A lot of borrowers walk the debt to income line, especially as housing prices continue to increase. If you were close to the cap before your income was reduced, be prepared to have to make some changes to your plans. You may need to pay off debts strategically, sell items like extra vehicles that are encumbered with loans or settle for a much smaller loan.
• It can increase your down payment. If you’re determined to borrow within a specific price range, or you’ve already made an offer and your income changed during the sales process, a quick way back to the home of your dreams is to make a bigger down payment. There are many ways to increase your down payment, such as a gift from a relative (provided they do not expect you to repay the gift) or liquid funds from things like savings or a 401k. Before you cash out investments or savings, though, check with your lender to ensure you’ll have enough money remaining in any accounts that may need to contain reserves.

Shedding Some Light on Sheds

 There are a lot of reasons that you might want a shed on your property. Maybe you just want some extra storage space. Maybe you need a place to put your mower and gardening tools to keep them out of the weather. You might even want a shed to create a home office or other workspace that won’t require you to rearrange your entire home. Regardless of the reason you might want a shed, there are several options available for getting one.

How Big of a Shed Do You Need?

The first thing that you need to do is figure out just how much space you need for your shed. This will depend largely on what you plan to do with it, as a storage space for a push mower will obviously be smaller than an external office space or kids’ play area. Sheds are available in a wide range of sizes, so take the time to consider your needs and calculate your space requirements (including taking measurements of furniture, equipment or anything else that will take up a good bit of room) to figure out just how big of a shed you’ll actually need.

Building a Shed

One option that might appeal to DIYers is building your own shed. There are a number of plans available which can guide you through the building process or at least to give you a starting point for your own design. Keep in mind that building a shed isn’t for everyone, though; it’s a more complex build than some other around-the-house DIYs, so be prepared for that.

Shed Kits

Whether you’re looking for a slightly easier shed build or are trying to find a way to save a bit of money, shed kits are available that let you build a small shed from pre-made materials. In most cases these kits are for metal sheds, though some kits for sheds made of wood or other materials may be available from some retailers as well. These sheds tend to be on the smaller side and often use thinner materials, but they can go a long way toward meeting your basic storage needs.

Buying a Shed

Whether you need a bigger and sturdier shed or simply don’t have time to build one yourself, pre-constructed sheds are available from a number of hardware stores and other retailers. These sheds vary in size and design, going from basic square sheds to larger barn-like units that even contain loft space. In most cases these sheds are made of wood, though some other materials may be available as well. The price depends heavily on the materials used and the size of the shed, with some models potentially costing a few thousand dollars, but providing a significant amount of storage space or room to convert into an office space or playhouse.

Shed Delivery

For most shed options, having the shed delivered and set up for you is often possible. Delivery can typically be scheduled within a few days of purchase, or in some cases even on the same day. Any special considerations such as having a level area prepared for the shed should be discussed while arranging the delivery. If you want the shed placed on a concrete foundation, that will need to be in place before delivery. Even if you don’t opt for a full foundation, it may be beneficial to have a gravel bed or some other material spread out and ready for the shed to provide a more solid surface and prevent sinking or settling.

Choosing Interior Colors: An Overview

 

A home is supposed to be a sanctuary, a place where you escape the chaos of everyday life. But sometimes those sacred spaces get pretty chaotic almost on their own. Maybe it’s clutter that’s overtaking your space, or maybe it’s something far worse: room colors that fail to harmonize. Repainting can be a big job, but if you go in with a plan you can create the home you’ve always wanted.

The Key? Think Globally

It can be very tempting to think of your home as a series of rooms, each wholly independent of one another. The truth is something different, though. Houses are actually a series of rooms that work together to create an overall atmosphere (plus, you know, a place to give you shelter and to store your stuff). When you consider how your rooms actually work together, you can choose colors that are far more likely to play well together room by room.

Start with the obvious: the rooms that are literally connected to one another. Unless you have a teenager, the chances are high that the doors will stay open long enough for you to be able to spy one room as you’re going through another. And, of course, you may have rooms that are literally part of one larger space, such as a living/dining combo.

Before you even walk into a paint shop or start looking at samples online, take the time to map out how each room interacts with the next. For example, a living/dining combo are two spaces that work independently, but also together. You’ll definitely want to consider each when you’re choosing colors, even if those colors aren’t exactly the same. For example, you may want to paint your living area a light blue and your dining area a light gray. Carefully chosen colors can harmonize together.

Rooms Behind Walls

What about the not so obvious rooms in your home, such as the guest bedrooms, the bathrooms or the utility room? Can they act independently since there’s a transition?

Yes, but mostly no.

As you move through one space, say, that calm living/dining combo we painted in the section above, you want to maintain a similar feel in the next space. So if your kitchen sits behind the dining area, rather than painting orange, for example, look for a color that harmonizes with the grays and blues. After all, you’re going to see the colors of that kitchen from your dining room.

It may seem kind of silly to worry about clashing colors that literally only overlap through a doorway, but those colors are more than just colors. Those colors are attitudes, they’re sensations, they’re hints at how rooms are meant to be used and what kind of overall atmosphere you want your home to convey. When going through a room transition makes it feel like you’ve stepped into a whole different house, you need to address the biggest design element there: the paint.

Although contrasting colors have their places and certainly can work in transitional spaces, you want to maintain coordinated colors between rooms. To make that more clear, your first goal is to choose the palette, and therefore atmosphere, that your whole home should convey. That might be pastels or jewel tones or earth tones, or whatever works for you, as long as it’s consistent. Your second goal is to apply those colors in a way that maintains the emotional effect you have in mind.

Going back to that kitchen, since our living room and dining were light gray and blue, you might consider a light blue-gray, a light green, or even a light yellow, depending on the palette you’re working with.

 

How Does Rent to Own Housing Work?

 Buying a home is a big deal, especially for those who have had credit problems in the past. The most common way to buy a home is with a mortgage loan, which requires both a credit score that the lender finds acceptable and enough cash on hand for a down payment (and usually some other costs). For some, this can be a barrier to home ownership because they either have previous credit problems or are unable to get the cash together to cover down payments and other costs. Fortunately, there are some alternatives available.

One option that can put home ownership within reach is rent to own housing. As the name implies, this provides an option where the would-be homeowner can actually take possession of the house as a renter before the purchase is finalized. While this may not be available as an option for everyone, here are some details about rent to own housing in case you’re considering a rent to own purchase.

The Basics

The basic idea behind rent to own housing may seem pretty simple. Instead of having to buy a house outright, you rent the home from the current owner instead, in much the same way that you would if you were only acting as a renter. The rental payments that you make typically cover both the cost of rental and pay a portion toward the asking price of the home itself. After a specified period of time has passed, you will either have paid off the balance of the property or (as is more common) will have a final lump-sum payment to make that finalizes the purchase of the house.

The Rental Contract

The lease that you sign when entering into a rent to own agreement is a bit different than your standard rental agreement. In most cases, you will agree to stay at the home for a longer period of time than your standard lease, and you may have an initial up-front payment to make that goes toward the cost of the house as well. The contract will detail exactly how much the owner wants for the home, what percentage of your rent will go toward that amount, and will also provide information about how you’re actually buying the house when the lease ends.

Option to Buy

In most cases, a rent to own contract features what’s known as an “option to buy” which gives you the option to pay any remaining cost to finalize your home purchase when the lease ends. Depending on the wording of the contract, you may also have the option to pay off that balance early and finalize the purchase even if the lease isn’t yet set to expire. You do need to be careful and read and pay attention to the details of this, however. While a “lease-option” contract like this gives you the option (but not the requirement) to buy at the end of the lease, some contracts actually contain what’s known as a “lease-purchase” clause, under which you have a legal obligation to buy regardless of whether you can actually afford it.

Maintenance Requirements

When you rent a home, maintenance and other upkeep is generally the responsibility of the landlord. In a rent to own situation, however, the lease will sometimes specify that the would-be homeowner is responsible for some or possibly all of the upkeep and maintenance instead. You may even encounter sellers who gradually shift the responsibility to you the longer you stay in the property, though this is less common than some other setups. Still, it’s important to know from the start who is going to be responsible for things that come up before the lease expires.

Metal Roofing for Homeowners

 

There was a time when metal roofing was largely reserved for use on shop buildings or certain businesses. These days, however, you’ll see metal roofs on almost any sort of structure, including a wide range of home styles. If you’re in the market for a new roof, you might consider going metal. Before jumping on the metal bandwagon, however, here are a few things that you should know about metal roof installations and how to tell if a metal roof is right for your home.

The Look of Metal

When considering a metal roof, one thing that a lot of people think about is how the roof will look after installation. While some metal roofing materials are installed as bare metal, it’s not uncommon for the metal to be coated or painted (especially in the case of some materials such as aluminum.) The metal panels are often machined to produce creases, folds and bends that mimic the look of smaller panels, and in some cases even create a look similar to shingles or Spanish tile. While there are definitely options that look like what you would expect from a metal roof, there are a wide range of other aesthetic options available as well.

Metal Roofing Longevity

A properly installed metal roof can last a long time, in some cases outlasting many of the other materials in your home. A lot of metal roof installations come with warranties that can last anywhere from 20 to 50 years or longer, though painted metal tends to top out at around 30 years. These roofs are fire resistant and less likely to suffer wear and tear from weather that could otherwise reduce their lifespan, since they’re all but impervious to the effects of rain and snow.

Metal Roof Quality

The quality of a metal roof can vary depending on the material used in the roof and how thick it is. Common metals used in roofing include tin, copper, aluminum, zinc and steel, with each providing its own advantages in regard to aesthetics, strength and rust resistance. Aspects of the roofing material such as sheet size, design and mounting hardware used can have a big effect on the quality of the roof, as can the skill of the person doing the installation.

Metal Drawbacks

While there are a lot of advantages to metal roofing, it’s worth considering a few drawbacks as well. Some metal roofs, especially those that are made of softer materials such as copper, can dent or otherwise be damaged by hail or other large impacts. Metal roofing can also be louder than other roof materials if appropriate noise-reduction materials aren’t used during installation and insulating. Improperly installed metal roofs can leak around fasteners and screw holes, especially if specialized washers aren’t used with the connecting screws. The biggest disadvantage of metal roofing is the cost, however; the up-front cost of even a lower-end metal roof can be equal to or greater than the cost of a premium installation of other roofing types.

Is Metal Right for You?

While metal can be expensive to install, its longevity combined with its weather resistance and minimal heat conduction during the summer can make it a good long-term investment. It’s also lightweight and can be installed quickly by a skilled contractor and their crew. With that said, some homeowners prefer the look and easy maintenance of shingles or other more traditional home roofing solutions. In the end, the choice between metal and other options comes down to personal preference and how much of an investment you’re wanting to make into your house.

Reflecting on Mirrors in Your Older Home

If you have an older home, there’s a decent chance that somewhere in the house you have at least one large, bulky wall-mounted mirror. While not all older homes will feature one of these mirrors, various types of mirrors do seem to come back into fashion again and again over time. Whether you’ve got a single large mirror mounted directly to the wall or mirrored panels that cover an entire wall surface, it’s important to remember that you still have options to update your home even if your mirrors have been around for decades.

Mirrors as Decoration

It’s not surprising that mirrors keep coming back into style as a form of home decoration. They capture the attention, and when done well, a mirrored accent can make a room seem all the larger and more impressive. Unfortunately, some mirrors can dull or become scratched over time, and whether it’s a matter of the glass aging poorly or the silvering of the mirror losing its luster, this can have a negative impact on the room as a whole. In some cases, the mirror glass may even become cracked in one or more places, which not only spoils the look but can also create a potential hazard that you have to keep people away from. Regardless of how time has affected the mirrors in your home, it should be obvious why proper maintenance is important.

Wall-Mounted Mirrors

One common type of mirror that you find in older homes is the wall-mounted mirror. Unlike more modern mirrors that use brackets or other mounting hardware to hold the mirror next to the wall, some of these older mirrors are actually attached directly to the wall with adhesives or other materials. Being adhered to the wall is useful insofar as it keeps the mirrors from shifting or becoming loose as time goes by, but it does limit your options when it comes to moving or replacing the mirror. These mirrors take some work to remove if you plan to redecorate, and the removal process often damages the drywall or paneling behind the mirror, so you will probably have to do some repairs once the mirror is free.

Mirrored Wall Coverings

Unlike single mirrors that are attached to the wall, mirrored wall coverings are often installed using a track system. This secures multiple mirrored panels without the need to adhere and line up each one. This doesn’t mean that you won’t find mirrored panel walls that are applied with adhesives, of course, but track systems are common, as the brackets used in track systems provide more stability. Brackets make removing or replacing panels easier, though the process can still leave some damage to drywall or other wall surfaces that will need to be patched later on.

Moving on From Mirrors

Regardless of the type of mirror that’s in your home, if you feel the need to remove it then you’ll have a little bit of work ahead of you. With adhesive-based mirrors, you’ll often need heat the adhesive around the edges first; this softens it and allows you to begin working the mirror loose. It may then be possible to pry the glass free, or you may need to work a piano wire behind the glass to separate the adhesive. Track-mounted panels are a bit easier to deal with since you can unscrew the brackets to remove the panels, then pry the tracks off the wall. Regardless of how you deal with the mirrors, be sure to use hand and eye protection and take your time to prevent potential injuries that might result from broken glass.

 

Title Insurance: What It Is, Why You Need It

Buying a home is fraught with all kinds of peril, from home inspections that go terribly awry to negotiations that seem to go on forever and hinge on every little detail. But once you’re through all of that, you’re basically in the clear, right? For some buyers and sellers, maybe not, but title insurance can smooth out the rest of the bumps.

What Is Title Insurance?

There are two types of title insurance: the kind designed for lenders and the kind designed for owners. If you’re buying a home with a mortgage, you’ll automatically have to pay for lender’s title insurance. It protects the bank if things go really haywire. Owner’s title insurance is often optional, but it’ll protect you as a buyer or seller should a title problem appear.

Title insurance starts with a title search, which is performed by an expert in examining titles and other real estate related documents. They comb through the historical records, looking at every transaction for clues that there might be a risk that someone could claim ownership of your current or future property. Usually titles are clean, meaning there’s no significant risk that you’ll be going to court to buy or sell the property, but once in a while there’s a title cloud.

Title clouds can include things like mechanics liens, improperly executed wills and estranged spouses who haven’t signed off on a sale at some point. The point of a title search, basically, is to uncover anyone who might be able to sue for ownership.

How Does Title Insurance Help?

Owner’s title insurance helps in a couple of ways. First, the thorough title search required by the underwriters ensures you absolutely can legally buy and sell the property without any hitches. That’s really important in securing your financial future. Second, the insurance itself helps make the title right if a cloud is discovered later by a different title search.

A few examples of how title insurance can fix a clouded title include:

• Arranging the purchase of land to make the property whole. In areas where there are lots of older homes and structures that may have been built overlapping adjoining property, it’s not uncommon to see a clouded title involving a small strip of land the owner of the property long believed to be theirs. In these situations, the title insurance can help with the cost associated with suing for title to that strip of land, or buying it from a neighbor, to make the property whole.

• Covering the expense of collecting the proper signatures and recording documents abandoning ownership rights. Sometimes heirs (or additional owners) are uncovered for properties that have long been thought to be done and dusted. It’s not an everyday thing, but when it happens, it can be very difficult to fix without a lot of help. For example, there might be an estranged spouse who still happens to be legally bound to the property, or a family member who had no idea they inherited part of an estate that was settled without their input.

• Settling unpaid taxes, liens and other surprise debt. Title clouds aren’t that common, but they do happen, and when they do, unpaid debts are often the problem. That might be a mechanic’s lien that was forgotten about, back taxes that someone who inherited a property weren’t aware of or other sorts of assessments that no one has documentation on. When this happens, the situation will dictate whether the seller of the property has to pay the debt, but it’s the title insurance underwriters’ jobs to make sure that there’s no debt outstanding when a home is bought or sold.

Keeping Pets Safe During a Move

Moving day, just imagine it: The sun is shining, the weather is just perfect, and you’re about to close one chapter and open a brand new one. There’s so much possibility ahead! Although it may be exciting and full of promise for you, moving can be a terrifying event for your pets, even if you’re just moving down the street. Fortunately, you can take a lot of steps to protect your furry, feathery and scaly pals in these high stress times.

Your Moving Day Checklist: Pet Edition

Whether you’ve got a dog that you love, a cat that’s a handful or a flock of chickens, moving with animals takes patience and attention to detail in order to help them get through the process with the least amount of stress possible. Remember that your pet doesn’t understand what’s happening and that the noise, strangers and general chaos can be terrifying for them.

Before you so much as begin to pack, it’s important to consider what’s going to happen with your pets during your move. Here are some things you can do to keep them safer and happier during the whirlwind that’s to come:

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• Start practicing now. It’s likely your pet will need to be confined to a crate, bathroom or other safe space so that the door can be left open to move things out. Before the move starts, you can begin to get them used to the idea of being confined. Start by staying in or near the space with them and rewarding them when they relax (this could take some time at first, so be patient). As they get better at being confined with you, go farther and farther away, and for longer periods, rewarding them as they adjust to the situation.
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Getting your pets used to being confined like this can help prevent injuries to them should they frantically scramble to escape, and can help you better see what kinds of things in those spaces may be potentially dangerous when they’re left unattended on moving day.

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• Ask your vet. Your vet has all kinds of things in their dispensary for these one-time highly stressful events. They can make a specific recommendation based on your pet’s history and particular panic buttons, and also give you more behavioral tools to your own toolbox to help your pet cope. Absolutely ask your vet for help before you even book a mover or a moving truck.

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• Take frequent breaks. If you can, stretch your move out over a few days or a week so that your pets can have a breather from their safety spot. Depending on just how much there is to move, it’ll be easier on you, too. For example, you might move a lot of boxes on Monday, take the small appliances over on a Wednesday and then move the furniture on Friday. Giving your pet some time to shake off the stress will make the move a lot easier for them.

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• Consider a pet sitter. Longer moves may require you to be away for a while, which turns an already stressful situation into a potential for real trouble. A pet sitter will help fill your shoes while you’re moving, or while you’re taking care of getting the new place cleaned up and ready to go if your pet is very prone to stress in new situations. Just make sure to introduce the pet to the sitter ahead of time so they can get to know one another.