Mortgage Lenders Blog and Resources

Even before you start looking at real estate, asking yourself how much money you need is a very good place to start in the home-buying process. If you're already aware of down payments and closing costs, you can give yourself a pat on the back, but make sure you plan for all costs and expenses, even the smaller ones that you might forget about. So, how much money do you need to buy a house? Honestly, it's probably going to be even more than you thought. But this is no reason to despair. Armed with knowledge of the required costs and a thorough budget, you will be in a good place to start the home-buying process. Continue reading for detailed information on specific costs involved in buying a house, as well as a handy calculator that can help you see how much money you might need to buy a house.   Down payment Maybe you’ve heard before that you need to make a 20 percent down payment to buy a home. While this can significantly reduce the size of your loan and cut out the cost of paying mortgage insurance, saving you more money on your monthly mortgage payment, this doesn’t mean that you must pay 20 percent down. In fact, most people make a down payment of 6 to 12 percent. And, there are mortgage loan options that only require 3 to 5 percent down, or no down payment at all: FHA loan — insured by the US Federal Housing Administration and intended for low-credit score borrowers with a minimum down payment of 3.5 percent VA loan — guaranteed by the US Department of Veteran Affairs with a 0 percent down payment USDA loan — offered to rural property owners by the US Department of Agriculture with a 0 percent down payment The majority of loans offering low down payments are backed by government entities, but that doesn't mean that you must pay 20 percent down if you choose a conventional mortgage loan. In many cases, you will be able to negotiate your down payment on a conventional loan, but you will likely get a higher interest rate because your loan will be backed by a private lender instead of a government entity or agency. Dan Green; CEO of Homebuyer Industry Expert     What size down payment should you make? Down payment requirements are flexible, and it’s important to stay within your means. Just because you can make a large down payment doesn’t mean that you should. To find a suitable down payment figure, calculate how much money you’ll need for six months of living expenses and set that money aside. Whatever you have left is safe to use for buying a home.   If you would like help in making a down payment, you can look into payment assistance programs. There are 2,000 of these programs available nationwide, and they are generally run by state, county, or city governments. Most down payment assistance can be broken down into two categories: grants or second mortgages. Determining the best down payment for you depends on your personal finances, but there are some helpful things to consider that can help you in that decision process: When is it best to make a large (or at least the 20%) down payment? If you have the means and financial stability, making a larger down payment can significantly cut down your monthly mortgage payments. But, you should consider how much more you will then be paying up front, which may be a large financial hit that could be difficult to recover from. “It's not always better to make a big down payment. The best down payment is the one that doesn't deplete your savings. Life rarely moves in straight lines. It's important to keep cash for emergencies,” says Green. When is it best to make a small down payment? “Small down payments work best when you earn good monthly income and don't have big savings,” adds Green. Especially for first-time homebuyers, it is wise to make a smaller down payment, as this will provide you with greater cash flow in the future, as opposed to putting a large amount of money down up front and depleting your savings. Closing costs While the down payment on a home is a large and important expense, don’t forget about closing costs. Closing costs cover a myriad of fees involved in processing and finalizing a mortgage, and generally come out to 2 to 5 percent of your loan amount. This may not sound like a lot, but say you buy a $300,000 home, your closing costs would range from $6,000 to $15,000. Closing costs generally include the following: Loan application, origination, and underwriting fees Home inspection and appraisal fees State recording fees Property taxes Homeowners insurance Private mortgage insurance (PMI) Escrow fees Warranty HOA costs If you would like to lower your closing cost, since it can be quite a hefty amount of money, there are a few options you could look into, such as grants, or simply asking about discounts and rebates. However, the best thing you can do is plan ahead so that you won't be surprised when it's time to close on your home. Additional costs/fees After determining what percent down you will put on your house and how much money you will need to put aside for closing costs, there are just a few more costs to consider: Moving expenses Unless you have a lot of charitable friends with trucks and a day to spare, you will likely need to consider what it could cost to hire a moving company and/or rent a moving truck. Especially if you are moving across state or across the country, it is very important to consider how much it will cost you to move. On average, the cost of hiring professional movers for a local move will range from $300 to $1,500, according to Move Buddha; if you are moving a long distance it could cost you $2,400 to $5,000. If you’re moving across the country, your costs will increase, and there are other important considerations like the cost of shipping a car. Depending on the distance of your move, be prepared to set aside at least $300 if not more. Home furnishing and maintenance If you don’t have many belongings and/or pieces of furniture to move into your new home, consider the cost of home furnishing. This could include couches, a dining room table, rugs, etc. It is also important to set money aside for home maintenance, such as gutter cleaning or yard upkeep. Be sure to budget for the items you know you will need up front, as this will save you from financial stress down the road. Jeff Beck, CEO and President of Leaf Home Solutions, expands on these points: “According to a recent report, lumber costs have surged more than 170% over the past year, which can add nearly $24,000 to the cost of a new home. Materials such as concrete, metal products, appliances, and other expenses are also increasing due to supply chain disruptions caused by COVID-19 shutdowns. Many first time home buyers, especially in this market, are so motivated to put in the highest potential offer, that they aren’t thinking about maintenance expenses. For example, if gutters are not cleaned within the first six months of owning your new home and water overflows from the gutters, it can fall along the foundation of your home, freeze, and result in cracks. Gutters should be cleaned at least twice a year to prevent damage to your roof and foundation. Certain homes, potentially both new and old, don’t always have proper windows installed to match the weather conditions of the area. Areas susceptible to hurricanes and tornadoes need to consider storm tight windows that properly seal, which as a new owner, you may not notice right away.  The upkeep of maintaining a home through your changing needs is important. Many of our customers invest in their homes by introducing features and amenities that represent convenience and accessibility, such as walk-in tubs and high-quality stair lifts. Our products and installations provide peace of mind to customers that their home is secure for every phase of life.” How can I save money on my home purchase? After reading through all the costs involved in buying a home, making some estimated total cost calculations, and likely coming face-to-face with one intimidatingly big number, you might be wondering if there is any way that you could save money on your home purchase. You might be able to save some money, but the truth is, it really comes down to the mortgage lender you choose. From our review data, we were able to get an idea of some of the “cost experiences” consumers were having with different mortgage lenders in the industry: (*Note: “reliable” and “unreliable” costs refer to whether or not costs changed from application to closing) 5% of all reviews mentioned costs — either low or high costs, or getting hit with costs they weren’t aware of when they applied with a mortgage lender. 21% of reviews mentioned NBKC Bank’s low and reliable costs*. 12% of reviews mentioned Quicken Loans’ high and unreliable costs*. *Taken from a sample of 121 reviews. If you are looking to keep costs as low as possible, NBKC Bank may be a good choice. Of the more than 400 customer reviews, 95 percent of customers award NBKC Bank 5 stars, highlighting low rates and fees, and a painless process with no surprises. NBKC Bank is an online bank with physical branch locations in the Kansas City area, and it also offers a discount to Costco members. Read NBKC Bank customer reviews As a well-known mortgage company, Quicken Loans is a popular choice, but customer reviews are almost an even split between 1 and 5 stars. Many positive reviews highlight good experiences with customer service, but many negative reviews outline very high costs which, in some cases, were tacked on at the end of the loan process, giving customers a rude awakening. Read Quicken Loans customer reviews Compare Top Mortgage Companies Learn more about top mortgage companies and read reviews from real customers. Compare Expert contributors: Dan Green, CEO of Homebuyer, a mortgage lender for first-time homebuyers Jeff Beck, CEO and President of Leaf Home Solutions

Guest Post by Bill Gassett Do you want to buy a home but have awful credit? Buying a home with bad credit can be seemingly impossible. You've probably heard before that you need a good credit score to buy a home, which is part of the truth. While having a top-shelf credit score can certainly help you get the best loan terms and conditions, it isn’t a necessity. In fact, there are mortgages such as bad credit home loans that are available to anyone with a bad credit score. So all is not lost! In this article, we’re going to go over just how you can buy a home with bad credit and how your overall credit score might not be as big of an issue as you think it is when you’re trying to fly the nest. What is considered to be a bad credit score? Before we get into the loans available to you, let’s first talk about what is considered a bad credit score. Unfortunately, there is nothing set in stone when it comes to knowing whether or not you have the minimum credit score required by a lender to buy a house. Mortgage lenders set their own requirements when it comes to lending money to those with bad credit, but there are some general rules you can apply to find out whether or not you would be eligible for a loan. Perhaps most important, it is essential to have a firm grasp on specific credit score ranges and where you fall into the mix. You’re going to find that if you have a credit score lower than 500, it will be difficult to get yourself a home mortgage. A score between 580–669 is considered to be a fair score, while one that is from 300–579 is considered to be very poor. But remember, even if you have a bad credit score, it doesn’t put you in the same scenario as someone else with a similarly bad credit score. There are other factors that mortgage lenders consider before declining or accepting your mortgage request. Can you buy a house with bad credit? As mentioned above, even with a low credit score, a mortgage lender will consider additional factors to your credit report when you apply for a mortgage. Lenders will also consider the following: How much debt you currently have The amount of money you have available for a down payment How much money you’re bringing in each month Essentially, even with a lower-end credit score, as long as you have a sizable down payment, you’re more likely going to be considered for approval for a home loan. Since your credit score will only qualify you for a certain loan amount, if you have a sizable and consistent monthly income, then you can make up the difference with that instead. Though, as mentioned before, the lender you choose to go with also matters because the requirements you’re going to need to meet will vary. If you are serious about buying a home, you should also get your mortgage pre-approval squared away before you start looking at homes. What are the bad credit loan options? FHA loans An FHA loan is a great choice if you’re a first-time buyer. One of the significant benefits of an FHA mortgage is that you will only need to come up with 3.5 percent for a down payment. The Federal Housing Administration (FHA) backs these loans. The minimum credit score requirement for a loan is usually around 580. If you can make a sizable down payment of at least 10 percent or have a high income, then you could be approved for a loan even if you have a score as low as 500. However, many lenders may shy away from granting financing when you're under 580. Conventional loans There are no real specifics tied to getting a conventional mortgage loan, though you will need a minimum credit score of 620+ if you’re looking to qualify for a loan like this. Typically, if you have a high down payment ready or high monthly income, it will be much easier to qualify for this type of loan even if your credit score is below 620. It is advised to speak to multiple lenders or find a reputable mortgage broker who has access to numerous lenders. The benefit of using a mortgage broker is that you are not locked into one lender's standards. Mortgage brokers can seek out and find the best loan for your specific financial circumstances. USDA loans Another loan backed by the government, a USDA, allows you to buy a home in a qualifying rural area with a zero percent down payment. You will need a credit score around 640 to be qualified for this loan, along with other specifics. A USDA loan can only be used to buy a home in what's considered a rural area. By definition, that is an area whose population is no more than 10,000 or a population that is no higher than 20,000 while also not in a metropolitan statistical area and lacks mortgages available for low to moderate-income families. Lastly, an area that used to be classified as a rural area but was changed due to census figures might still qualify if the area's population doesn’t exceed 35,000 and still has rural characteristics. A lender will be able to tell you if the area qualifies for a USDA mortgage. VA loans If you’re a veteran or you’re currently an active-duty member of the armed forces, then choosing a VA loan could be best for you. A VA loan allows you and your spouse to buy a home with zero down payments, although just like the other loan options on this list, you’re going to need a credit score around 620 to be eligible for a VA loan in the first place. Other than USDA loans, a VA mortgage is the only other no down payment option. Bad Credit Home Loans Find the best FHA, Conventional, USDA, and VA loan options from trusted mortgage lenders. Explore Options What about a hard money loan? A hard money loan should be your last resort if other lenders turn you down due to your bad credit score. Hard money loans are not based on the borrower's creditworthiness but on the value of the property used for collateral. Traditional lenders do not grant hard money loans. They are typically given by private investors, or hard money lenders, who see an opportunity to make money by charging a borrower a much higher interest rate, which can be a big downside for the borrower. But on the positive side, it is usually a short-term loan that allows someone to purchase a home. The borrower has to feel confident that their current lack of good credit standing is short-term, and they expect a rapid improvement. The goal would be to refinance out of a hard money loan as quickly as possible. How can I improve my credit? For obvious reasons, anyone looking to buy a home should strive to increase their credit score. A good credit score comes in handy for so many things in life, whether buying a home, car, or credit cards; having a good credit score can also save you an incredible amount of money by lowering your mortgage loan interest rate. Besides spending money going to a credit improvement company, you can do another highly recommended thing to improve your credit. Sign up for a free service like Credit Karma or Experian to find advice on how to improve your credit scores. Many people often make poor credit choices because they don't know what negatively impacts it and what doesn't. For example, many people might think canceling a credit card is a good move when, in fact, it will drop your credit score. Being aware of credit myths such as this can make the biggest difference in improving your credit score. Final thoughts Whether you are buying a traditional house, modular home, townhouse, or condo, your credit score will play a significant role in what you "really" pay for a home. While most people look at the purchase price as what they have paid, it really is the interest on the loan you end up paying over the term of the loan. When you have a bad credit score, you have a higher interest rate, which in turn makes for higher monthly payments, which is very important to consider. Striving to obtain the best score possible is worth the effort, but if it isn’t where you’d like it to be right now, take heart in knowing that there are some other options available to you, allowing you to fulfill your dream of buying a home. Bill Gassett has been a real estate agent for the past 34 years working for RE/MAX Executive Realty in Hopkinton, Massachusetts. He is also an avid writer for numerous real estate publications including The National Association of Realtors, RIS Media, Inman, as well as his own blog "Maximum Real Estate Exposure."

Guest Post by Bill Gassett What is a modular house? If you've always wanted to build your own home, many things can put you off the idea. You would need to hire architects and a team of contractors, as well as manage the build. This could lead to a lot of stress and certainly a lot of expense. However, a modular home offers you the chance to build your own property without many of the problems associated with a traditional build. Lots of folks wonder exactly what is a modular home. Let's take a look at what you need to know about modular homes to help you decide if this type of home is right for you. How are modular homes different? With traditional home building, the construction process can take many months, with delays due to the weather being a common problem. A modular home can be constructed in a matter of weeks, with most of the work being carried out off-site in a factory. These can sometimes be referred to as factory-built or prefab homes. They are then transported to the construction site, where a crane lifts them onto the foundations. The prefab sections fit together, allowing the home to be assembled very quickly. There then needs to be work carried out to finish the home. This means connecting the utilities and adding the finishing touches to the home. They are permanent homes that appraise the same way as traditional home construction. You can expect to pay the same taxes and insurance as you would for a regular house. Are modular homes more expensive? Thanks to how these buildings are put together, there are many cost savings for the owner. Since the homes are built in a factory, this saves a great deal as they can be inspected on the production line. Typical costs for a modular property are around $100 per sq ft. However, this can increase if you opt for a more complex or unusual layout and design. The cost to build a traditional home starts from around $150 per square ft, so the savings are quite clear. Are modular and prefab homes the same thing? Generally speaking, they are the same thing. Prefab, short for prefabricated, refers to homes constructed off-site in sections, which is essentially the same thing as modular buildings. Are modular homes the same as manufactured homes? Manufactured homes, often referred to as mobile homes, aren't the same as modular homes. Manufactured homes aren't permanently located in one place, as modular constructions have to be. You can choose to move your manufactured home to a new location, but this isn't possible with a prefab or modular home. The term mobile home officially refers to manufactured homes constructed before 1976. Though the term is still commonly used, the U.S. Department of Housing and Urban Development officially calls this type of housing manufactured. Do modular homes all look the same? While manufactured homes look very similar, this isn't the case with modular properties. There are many styles of modular homes available, and you can customize as you wish. There aren't any design limits. You can make changes to a manufacturer’s design to create the home of your dreams. What are the pros and cons of choosing a prefab home? There are many reasons this type of housing might be right for you, but they're also negatives you need to consider. Let's take a look at the upsides and downsides of modular construction. The advantages of choosing a modular building If you like the idea of a shorter build time and lower costs to complete the home, a modular build could be more attractive. You also won't have to worry about inspections during the build; this is all done during construction in the factory. You can have the home customized to your specifications without the need to hire an architect. There won't be so many worries about the weather delaying the build process, and the construction will be completed much faster. Since the home sections will be constructed in a factory, they can be built using environmentally friendly materials and methods. They can also be manufactured to a higher energy efficiency standard and higher tolerances. Typically, modular homes are constructed to green building standards. The downsides of modular constructed homes You need to own the land you build the modular home on, but it can't just be any building plot. This type of property is usually harder to be constructed in a stick-built neighborhood. In fact, on many occasions, there will be restrictive covenants prohibiting modular homes. You'll need to check on this situation before moving forward with your plans. There is still some work that needs to be done before the prefabricated home sections arrive at the construction site. There also has to be foundations and connections to utilities, such as plumbing and electrical wiring. Usually, you can't finance a modular build through normal mortgage loans. It is possible to get a construction loan to cover the costs, but this is usually only good for a year. Once the home has been constructed, you can then turn the construction loan into a normal mortgage for a longer period. Before you order your prefab building, you need to do your research on the manufacturer. Though these types of homes have to be built following building code, not all manufacturers produce the same product standard. Like any other builder, there are what would be considered great and not so great modular companies. It will be just as essential to do your due diligence when buying a modular home as you would with a stick-built property. Remember, there are pros and cons to consider when buying new construction. At times, folks regret their decision to build a home versus buying an existing property. Does the modular home stigma still exist? Years ago, when you heard modular home, you would immediately think of a cheap, inferior product. Not surprisingly, it was understandable and, in fact, true. More often than not, a modular was constructed with shallow-pitched roofs that made the home look like an army barracks. The interior had limited quality features like crown moldings, and popcorn ceilings were standard. Today, when people do a little research, they quickly discover these downsides no longer exist. Modular homes are now considered to be an excellent product. Does that mean some people don't incorrectly assume there is still inferior quality? No, they do. Real Estate agents and those in the modular industry often have to educate consumers on how things have changed. How do I buy a modular home? There are many options available if you've decided modular is the right type of property for you. You can order homes that have already been fully designed and only need a few things done to them once they've been assembled. If you have a larger budget or looking for certain features in your home, you can customize the design before manufacture. Like most things these days, you can even buy modular homes on Amazon. Despite this, you will probably be better off going directly to a manufacturer in your area. This will allow you to customize the home as you need it. Final thoughts  Choosing the modular option when building a home has a lot of advantages. You are likely to save money and be able to move into the home faster. You can go to a manufacturer and buy a design off-the-shelf or create something that exactly fits your requirements. Whichever approach you take, you will end up with a home that is a permanent structure that should be equal to any site-built home. It might have cost you a lot less than a traditional home would have cost to build, meaning you can make your money go further. Bill Gassett has been a real estate agent for the past 34 years working for RE/MAX Executive Realty in Hopkinton, Massachusetts. He is also an avid writer for numerous real estate publications including The National Association of Realtors, RIS Media, Inman, as well as his own blog "Maximum Real Estate Exposure."

Are you considering buying a foreclosed home? Perhaps the ROI potential and success stories have enticed you to entertain the idea of fixing and flipping a house in foreclosure. Buying a foreclosed home to fix up for profit is a common strategy that many seasoned real estate investors have. However, a novice investor may overlook some of the complexities and red tape that make foreclosures risky. By understanding the risk, you’ll be more equipped to understand if a foreclosure has potential cash rewards or if it's a financial trap that you should avoid. To help you understand the ins and outs of buying a foreclosed home, we’ve put together this comprehensive guide that answers some of the most basic foreclosure questions: What is the difference between pre-foreclosure and foreclosure? Do banks negotiate foreclosures? Can you get a loan to buy a foreclosed home? Is it a good idea to buy a house in foreclosure? Bonus foreclosure tips What is the difference between pre-foreclosure and foreclosure? It is typical to lump the foreclosure process together, but it is wise to know how different points in the buying process could affect your purchase. Let’s breakdown a foreclosure into three main phases: Pre-foreclosure Foreclosure Post-foreclosure Pre-foreclosure is the phase when you can potentially buy the house directly from the homeowner. It is typical for a homeowner to have 90 days notice before the bank seizes the property. During this time many homeowners are trying to get out of their house quickly and recoup any sort of money that they will potentially lose. This short timeline mixed with a need to pay back the bank encourages homeowners to sell their home for a low price in hopes that the home will be purchased quickly. This type of sale is often referred to as a short-sale. Foreclosure is the stage where the home actually goes to a foreclosure auction. Real estate investor and co-founder of SparkRental, Brian Davis, shares his insight on why this stage of the foreclosure process is often the riskiest and most expensive. “You can buy properties at an actual foreclosure auction, but this rarely happens in practice, for two reasons. First, you can’t inspect the interior of the property, because at that time it’s still legally owned by the homeowner. Second, lenders usually set the starting bid around the total balance they’re owed, which is often higher than the market value given the accumulated late fees, legal fees, etc.” Post-foreclosure is when the ownership of the house transitions from the homeowners to the bank. This is the most common phase that buyers purchase a foreclosed property. At this phase in the process the bank work with local real estate agents to list the house on the public market, making it easily visible for an everyday buyer to purchase. During post-foreclosure you're able to approach the buying process like a normal house — agents can give you tours of the house, and you can receive an inspection before you pull the trigger. Do banks negotiate foreclosures? Banks take on a lot of time, risk, and stress when dealing with a foreclosed home and so they are motivated to sell quickly. Negotiating with the banks over a post-foreclosed home may require a few extra hoopes to jump through, but overall the process is relatively similar to negotiating for any kind of home. Banks don’t love sitting on a property for too long, so they are motivated to negotiate with a potential buyer on the price. If a buyer extends an all cash offer they may be even more inclined to take it.  Real estate professional, Luke Smith, adds that, “the banks often get flooded with inventory so they are willing to negotiate. They are less likely to allow a short sale then they are to negotiate during post-foreclosure so that they can make a little profit.” Plus, if a foreclosed home has been sitting on the market for a while your odds of scoring a great deal with the bank are even better. Can you get a loan to buy a foreclosed home? Yes, you can get a loan to buy a foreclosed home. There are several different types of loans that you could use to pay for a foreclosed home such as a 203K loan, FHA loan, VA loan, conventional loan, HELOC and more. Kenny Dahill, realtor, landlord, and founder of Burbz comments on what the loan selection may look like for your investment property. “Buying a foreclosed home is similar to a non-foreclosed home. Due to the nature of foreclosures being under market value, there are loan options that will allow you to finance the remodeling costs as well. Loans will typically be based off the habitability of the property — a foreclosed home in major disrepair will have challenges getting a loan compared to a foreclosed home that is move-in ready which can easily get a loan.” If you are worried about fronting the cash for a loan and are wondering how you can buy a foreclosed home with no money down, then don’t stress — there are options. Melissa Zavala, real estate broker and owner of BroadPoint Properties, lays out what you should do if you are wanting to put no money down or as little down as possible. “Check with your local lender to see whether no money down programs are currently available. There are many FHA programs available that only require 3.5 percent down and VA loans require no money down. There may be other programs available, so it is good to check with your local lender.” There are no money down and some barely money down options, you just have to find the right lender. To help you compare possible lenders and find the right lending solution for you, you can easily compare mortgage lenders at BestCompany.com. (Bonus: LoanDepot is one of the few lenders that offers a 203k loan, which is great for financing foreclosures. Check them out.) Is it a good idea to buy a house in foreclosure? The honest answer — it depends.  It depends on your experience and the homes available. To help you get started on making your pros and cons list for purchasing a foreclosure, you need to look at the good, the bad, and the alternatives. Why is it a good idea? Buying a foreclosed home can unlock the potential for major cash flow. Foreclosed homes often sell for below their market value making them a great investment for buyers that are able to buy low, fix repairs, and sell high. A pre-foreclosed home often sells for below market value when the current homeowner is not able to afford their house. Before the bank seizes the home, the house is sometimes available for a discounted price by the homeowner — known as a short-sale. Additionally, if the bank does seize a home it will often be listed on the market for a reasonable price. The banks are motivated to sell the house quickly, alleviating the risk and and cost of hanging onto it. Potential buyers can benefit from either situation if the home is in good shape and on the market for below its value. Why is it risky? First you need to realize that foreclosed homes play by a different set of rules. For one, if the house does not sell in a short sale the ownership shifts from the personal homeowner to the bank. Real estate professional and owner of CapstoneHomeBuyers Colby Hager, walks through what a bank-owned home may entail: “There is a certain amount of risk because most banks are unaware of the actual condition of the house when they seize it. The bank typically does not allow for a home inspection nor are they usually willing to negotiate for repairs in an auction. Depending on the overall condition of the foreclosed home, financing through traditional sources such as an FHA or VA loan may be difficult.” In addition to the condition of the home posing a risk to your investment, legal red tape and the overall timeline can complicate the process as well. Unexpected time and legal issues can be costly and stressful. What’s an alternative? If you are wanting to buy a foreclosed home but are a little nervous to work through its complexities and risk, try investing in a different kind of property at the start. Get your feet wet by choosing an older home with good bones. You’ll have the luxury of shopping around for the right home and getting an inspection, while lowering your odds of major financial surprises. Real estate agent and founder of Quadwalls, Chuck Stelt, puts it best by advising buyers to avoid foreclosures and instead invest in what is called a grandma’s house. “Grandma's house is usually in really good condition and most everything is in working order, but it is often dated. These are the best homes to look for if you are buying a home to live in and want quick equity.”    Bonus foreclosure tips: Get Homeowners Insurance: “Lenders will almost always require that you have homeowners insurance lined up, make sure you compare quotes and settle on a policy ahead of time to prove to your lender that you are able to purchase insurance for the foreclosure." — Melanie Musson, home insurance expert for USInsuranceAgents.com.   Consider an Eviction Attorney: “If you are buying a foreclosure on the courthouse steps make sure to get a good eviction attorney.  Oftentimes when you buy foreclosures at the courthouse steps, the previous owner is still living there.  If the occupant doesn't leave on their own or doesn't take your ‘cash for keys,’ then you have to go through the eviction process.” — Rick Albert, Broker Associate with LAMERICA Real Estate, and investor/house hacker. Get a Second Opinion: "With every home, you want to do your due diligence—this rings especially true for foreclosed properties. If you are not allowed a formal inspection, then you want to find a local General Contractor to accompany you on your walkthrough. This way you'll have an idea of what costs could be needed.” — Brad, MBA, founder of 401HomeBuyers, a reputable house-buying firm.  

Guest Post by Victoria Araj Buying a house is a difficult, often lengthy, process that requires buyers to consider numerous logistical factors; all while dealing with the emotional stress of making one of the most significant financial transactions of their lives. For a buyer to get the best price on a home, it's extremely important they understand the makeup of the market. There used to be a very particular demographic majority of home buyers: married couples, often with children. The landscape has evolved through the years, however, and more single people are purchasing homes. In fact, single women purchase more homes than single men – though a Yale study revealed those women see a lower return on investment compared to men. This inequality is especially concerning when considering how this financial difference can play out later in life at retirement age. This disparity is known as the women’s housing gap. In this piece, we’ll cover what it is, why it may exist, why it’s significant, and how we can work to close it. What is the women’s housing gap? The women’s housing gap is the difference that single men and women see when buying and selling their homes. The Yale study revealed that single women pay about 2 percent more than men when buying a house, yet sell it for around 2 percent less. That’s an average of $1,600 per year that single women are losing out on, in comparison to their male counterparts in similar homes. The actual difference varies depending on the cost of the house and additional factors. Interestingly, the study showed no difference when women bought from and sold to other women. Possible reasons this gap exists  Some potential reasons that may explain this gap include differences in negotiation results and market timing, as well as looking at the wrong factors when evaluating the value of a home. A number of studies have found that women are less likely to negotiate. A more recent study challenges that idea — finding that even when women ask for just as much, or more than, men, they still receive less. This suggests that if women want to achieve equal or better results, they have to surpass their male counterparts through higher-caliber negotiation skills. The Yale study also suggested that single men had better market timing than single women, providing a better ROI on their home. It is important to note that women may not have as much flexibility when selecting a home if they happen to be single mothers. This group may end up overpaying for a property because they need to quickly provide shelter for their children. While this also applies to single fathers, single mothers outnumber their male counterparts in the United States, which could make it a factor to consider when evaluating this gap. Why it matters Property investments are one of the most frequently mentioned ways to build wealth. As a result, the lead Yale researcher also suggested this difference in real estate returns could contribute to the gender wealth accumulation gap at retirement age — which can affect quality of life and the ability to pay for increasing medical needs. We should be pushing for equity on every front. One of the best things women can do to improve their outcomes in the home buying arena is to educate themselves, so they can stand their ground and get the best value when purchasing their home and the highest price when selling.  10 tips to help decrease the gap   While no one can control another’s’ biases or actions, you must position yourself for the best chance of success by doing thorough research and working to improve negotiation skills. Here are 10 tips to help you achieve a more positive home buying experience and outcome: 1. Be familiar with your rights Know your rights so you can recognize when someone is engaging in discriminatory practices. Being able to identify this can protect you from being taken advantage of when buying a home. Rights vary by state, so you can visit your local Housing and Urban Development (HUD) site for more information. 2. Build your credit score  Improving your credit score can help you secure a great mortgage. It’s important to build good credit before applying for a loan so you can get the best interest rates. Lower interest rates will result in lower monthly payments and an improved cash flow. In order to improve your credit score, make payments on time, stick to a realistic budget, and look into credit repair services if needed. 3. Seek professional advice  Talking to a mortgage specialist can help you make informed decisions when buying a home. To make the most of their services, come prepared with mortgage questions such as “How much home can I afford?” and “What is the interest rate and the annual percentage rate?” Try writing out your list beforehand so you don’t forget any important questions. 4. Focus on investment potential, not aesthetics It’s easy to get caught up in a property’s appearance when you visit it or see a property online. Try to set that aside and consider whether the house can be renovated to boost its value. Disregard changeable things like wall color or kitchen counters and focus on elements like location, home safety and structural integrity.  5. Take statistics into account To discover the true value of a home, look beyond the home itself. When evaluating a home, consider the area’s job and population growth, unemployment rate, school district, and historic price increases for homes in the area. You’ll likely maximize your profits if you’re able to land a property while the neighborhood is still up and coming. Look at year-over-year changes as opposed to just viewing current stats. 6. Research comparable sales  Researching comparable properties can provide you with a better idea of a fair price for the house you’re looking at so you don’t overpay. You may even stumble upon better-valued properties that pique your interest. Look for properties of a similar size, location, number of rooms and big-ticket amenities (i.e. pool, over-sized garage, etc.). 7. Get a professional home inspection  Always pay for a professional home inspection. It will allow you to ascertain any existing issues. This helps you identify potential repair costs, allowing you to negotiate the sale price to account for serious repairs that need to be completed. Skipping or skimping on your inspection is not an option — those who have, deeply regretted doing so. 8. Understand the seller’s motivation  Understanding the seller’s motivation helps you tailor your negotiation tactics. Doing your research can provide you with information about how badly the owners want to sell and how much you can negotiate the price down. For example, try a public record search — you may discover insights into how quickly the seller is trying to move as well as the reason behind their relocation.  9. Use targeted negotiation tactics Equip yourself with a variety of negotiation tactics so you can adapt your strategy to fit the specific market, property, seller and their personal situation. Come prepared with your completed research of comparable listings, sales and exact numbers to show you’re informed. You should also know your max price ahead of time. Depending on the situation, you may want to start 15 percent below that top number. Consult with your real estate agent, who has detailed knowledge of the area, to decide the best negotiation strategy. Negotiation tactics to add to your tool kit: Tailor wording to the seller’s individual situation  Include a personal letter detailing why you would like the house Support your claims and offers with statistics and data Find ways to save money in places other than the house’s price Use home inspection findings to your advantage Begin negotiations around market value, not asking price Aim for a reduced price by offering to close quickly 10. Show you’re a serious buyer (but know when to walk away) Make it clear that you have the resources to purchase the home and are ready to act quickly. This can help expedite the home buying process. On the other hand, you don’t want to come across as too eager. It’s a fine line to walk because while you want to show that you are a serious buyer, you should also keep a healthy emotional distance. Be prepared to walk away from the home should the negotiations surpass what you’re willing to spend. Remember that there are other viable options out there! The bottom line The women’s housing gap can put women at a financial disadvantage and limit their opportunities. To combat this gap and achieve better outcomes, women should stay informed, conduct ample research, practice negotiating ahead of time, hold their ground, and know when to walk away. For more tips on home buying and information on the women’s housing gap, check out the visual below (provided by Rocket Mortgage):   Victoria Araj is a Section Editor for Quicken Loans and held roles in mortgage banking, public relations and more in her 15+ years with the company. She holds a bachelor’s degree in journalism with an emphasis in political science from Michigan State University, and a master’s degree in public administration from the University of Michigan.

Guest Post by G. Brian Davis If you've never bought a rental property before, it feels incredibly overwhelming. Between choosing a town and neighborhood, learning how to score good deals, analyzing cash flow, finding financing, advertising vacant units, screening tenants, signing lease agreements and beyond, there are a lot of moving parts. Rental investing comes with a steep learning curve, and new investors inevitably make mistakes. But in the beginning, focus on the fundamentals: the core investing skills that prevent you from losing money. That starts with knowing what to look for in a good rental property, both at the neighborhood level and the property level. Not all cities or neighborhoods make for profitable places to invest. Before buying properties in your local area by default, evaluate your local market carefully, and consider investing elsewhere if you don’t like what you find. 1. Low vacancy rates Vacancies are expensive for landlords. It sounds obvious, but you should look for cities and neighborhoods with strong demand for rental housing, so you don’t have trouble filling vacancies. In fact, the quality of your tenants largely determines the quality of your returns. The more rental applications you get for a vacant property, the better your odds of choosing a high-quality renter who will treat your property well, pay the rent on time, and stay long-term. You can check vacancy rates through the Census Bureau, but for the most up-to-date information, ask around among other landlords and property managers who operate in that city and neighborhood. Ask a professional real estate agent or property managers who operate in that city and neighborhood for rental reports. Ask them for data on vacancy rates, tenant turnover rates, days on market, and the quality and quantity of rental applications It helps if the area already sees strong demand, but you can also keep an eye on future demand. 2. Population growth Areas with healthy population growth indicate not only good demand right now, but growing demand moving forward. Again, you can check the Census Bureau, but also check other local resources for indications of population growth. Also keep an eye on job growth. Because where local economies thrive and generate new jobs, they draw workers from elsewhere, driving population growth and therefore demand for housing. You can find job growth data at the BLS. 3. Diverse job market with low unemployment With vibrant job growth comes low unemployment and reduced odds of rent defaults. Where residents are earning money, they can and do generally pay their rents. But beyond local unemployment rates, also look at the diversity of the local job market. If most of the town depends on one employer or industry, the entire economy of the town could collapse alongside them. Look no further than old steel mill towns in the rust belt, after steel largely moved overseas. Check resources like City Data or Area Vibes to read up on local cities’ economic diversity. Also consider investing in towns with military bases, as they tend to provide extremely stable employment and demand for housing. Resources like AHRN.com can help you specifically rent to military families. Here’s an interactive map showing unemployment rates by county for Spring 2020. Speaking as a landlord who spent years hassling with rental properties in high-crime areas, let me offer some simple advice: don’t do it. Sure, the rental cash flow numbers can look more attractive in these areas (more on cash flow calculation shortly). But those numbers exclude hidden costs like high crime rates. Crime affects landlords in multiple ways. Sometimes directly, in the form of vandalism or theft of your appliances or fixtures. But crime also drives away good tenants, leaving you with high vacancy rates and high turnover rates. And remember: the quality of your renters determines the quality of your returns! You can check local crime rates through City Data and Area Vibes as well. 4. Landlord-friendly regulations The local landlord-tenant laws play a greater role in your returns than you realize. I’ve had “professional tenants” draw out the eviction process to nearly a year, in one tenant-friendly jurisdiction. After a year without rents, I was left with a nearly-destroyed property. Invest in areas with laws that make it easy for you to remove tenants who damage your property, harass the neighbors, or break the law. The last place you want to find yourself is paying for your tenants to live for free for an entire year because the local landlord-tenant laws favor tenants so heavily that you can’t evict bad tenants. 5. Cash flow While you can stress endlessly about choosing properties with the most popular amenities at any given moment, keep it simple and look for properties that clearly meet local renters’ expectations. But physical amenities make up only one piece of the puzzle. Most important of all is learning how to calculate rental cash flow — a skill too many new investors gloss over. New investors tend to ignore infrequent-but-inevitable expenses like vacancy rate, repairs, maintenance, accounting costs, and so forth. But when you run cash flow numbers, you need to calculate the long-term average of all expenses, not just regular monthly expenses like the mortgage payment. Use a rental cash flow calculator to run the numbers, and be sure to include all expenses including: Repairs and maintenance Vacancy rate Property management fees (not just the monthly fee, but the new tenant placement fee too) Property taxes Property insurance Mortgage principal and interest Accounting, bookkeeping, legal, and other miscellaneous expenses For any given property, calculate both the monthly cash flow and the annual yield, in the form of cash-on-cash return. That refers to your net annual income divided by your personal investment, to calculate your personal return on investment. It is also recommended you create a line item expense called reserves. This allows you to save up funds on a monthly basis to be used at a later date for a big project, like replacing the roof, buying new appliances, or paying the mortgage when the property is vacant. Think of it like a rainy day fund for your rental property. To use simple numbers, imagine you put down $10,000 in a down payment and closing costs, and you earn $1,000 in net annual income from the property. That would leave you with a cash-on-cash return of 10 percent. When you know how to accurately calculate rental cash flow, you never make a bad investment again in your life, because you know the return before shelling out a cent. A good general rule of thumb is that if the monthly rental amount is equal to or greater than 1% of the purchase price, the property should provide a decent positive cash flow. 6. Manageable repairs Many real estate investors opt to buy fixer-uppers, in order to “force equity” by renovating them. It works great — for investors who know what they’re doing. But new investors don’t typically know what they’re doing, and often get themselves in over their heads with renovation projects. If you’ve never managed a renovation before, and want to buy a fixer-upper rather than a turnkey property in rent-ready condition, start with a property that needs only cosmetic repairs. You can work your way up to more complex mechanical repairs like replacing HVAC systems, or structural repairs like fire damage restoration, which usually require you to pull permits. But start with cosmetic repairs only. That lets you build experience hiring, screening, and managing contractors, which proves one of the most difficult tasks that real estate investors undertake. Start with smaller-scale projects to limit costly mistakes. As you develop confidence and trust with certain contractors, you can then gradually start tackling larger renovation projects. But keep it simple in the beginning, while you learn the ropes of real estate investing. Begin your rental investing career focusing on the fundamentals, and you’ll avoid the costly mistakes that so many new investors make! G. Brian Davis is a real estate investor and co-founder of SparkRental.com, which helps everyday people build passive income from rental properties on the side of their full-time jobs. Brian’s goal is simple: to help as many people as he can reach financial independence, so they can cover their living expense entirely with rental income. Connect with him through SparkRental at any time.

Read more about NBKC's home loans. Read Full ReviewVisit Site NBKC has earned the title as the best mortgage lender of 2020, standing out among 156 other home loan companies. To be ranked as one of the top mortgage lenders, a company needs to separate itself from the competition from a number of different vantage points — NBKC does just that. NBKC thrives when it comes to customer service and care, with an overall rating of 4.9/5.0 stars from hundreds of its customers. Director of Mortgage at NBKC, Chad Cronk, highlights three more unique characteristics that have contributed to NBKC's success in the eyes of its customers: "There is one point of contact throughout the entire process and an entire team behind the scenes.  We leverage the latest technology to save our customers time and money. Customers receive highly competitive rates and fees." Check out the infographic below to see why NBKC has earned the Consumer's Choice Award for home loans in 2020!  Take some time to explore this awesome home loan company if you are currently on the hunt to buy or refinance a house. Read more about NBKC's home loans. Read Full ReviewVisit Site  

If you find yourself twiddling your thumbs with extra time spent at home, perhaps you need a small push to help make your days at home more meaningful and productive. Cleaning, organizing, and DIYing offer endless at-home activities to help keep your mental and physical spirits high. Below are 17 ideas to help you fill your spare time with some meaningful activities. Master organizing tips In-home projects DIY cleaning hacks Outdoor projects 18 bonus self-care tips Master organizing tips 1. Organize messy areas Jenna Haefelin, professional organizer and owner of SPIFF: "Now is the time to purge! Trust me, you’ll want to after sitting home for a while! Try tidying up sink cabinets, closets, and your pantry: Under the sink — Clear out what you don’t need — move excess items, if you have any, in the basement or a cleaning closet. Organize the remaining ítems with stacking drawer options and turntables. Keep it simple and label!  Closet — Matching hangers are a must! Place a quick online order for some hangers, 100+ are usually sufficient. Fold items that lay nicely (ex: chunky sweaters and jeans, not flimsy shirts) and hang up the rest. If you only have shelving, invest in some lined baskets with labels — file fold your clothes, color coordinated, so you can easily see what you have. Pantry — Stackable canister options mixed with baskets is my go to for the pantry. Consider what is functional for you and your home. For example, kids snacks would be more accessible in baskets vs a canister."  2. Declutter cramped spaces Vinay Amin, health expert and CEO of Eu Natural: "Now is the perfect time to get to all those little annoying projects done that you only remember when you are in the middle of something else. That cluttered space in: The kitchen junk drawer Under the bathroom sink The top shelf of the hall closet The spice containers — are all the perfect fodder for your new found extra time at home. Bonus: If you have already tackled those cluttered areas, I would suggest trying out new and different furniture/room/decor arrangements. You may not be able to obtain supplies for other DIY projects, but you already have everything you need to simply try out a new look in your living room or home office." Better yet, don’t let those areas keep piling up as commonly cluttered areas. Make it a daily, weekly, or monthly habit to regular keep these areas clean and neat. 3. Working from home? Take a second look at your desk Sofia Wilson, CEO of Daily Detox Hacks: "Ask yourself, 'What will have the most impact?' For me, my answer was my living environment. I had been busy and my house had become neglected with excess clutter. I started a project to declutter my desk and I felt great after, increasing my productivity with my newly organized desk space. The great thing about this type of action is that you feel great afterward and it really does not cost much to reorganize and find a home for you excess things. I recommend using containers that you already own before you give into the urge to buy more containers." 4. Good, better, best: Closet edition Abe Navas, general manager of house cleaning service Emily's Maids: "Do you feel like your closet is never quite tidy enough?  Shoes tend to make closets feel especially messy. If you are the kind that has many shoes, then let’s start there — I have the perfect DIY solution for decluttering your closet, a DIY shoe shelf. Stop putting your shoes one on top of the other. A shelf is easy to create, very customizable, and a fun project that you could extend to a couple of weeks. Take the opportunity to rearrange your closet to be more space-efficient with your new, custom shoe rack.” 5. Know when it’s time to let go Amanda Clark, owner of full-service home organizing company Ever So Organized: "When deciding what items to let go during your closet purge, ask yourself these questions: When was the last time this was worn? If it's been over a year, it's time to let it go.  Would I purchase this again if given the choice?  Would I want to run into an ex while wearing this?  Not willing to leave the house for a Goodwill run right now? Also, take some time to really go through your clothes and shoes to see what you don’t need. Most people wear 20% of their clothes and shoes 80% of the time. Find those 80% of items you don’t often use and either sell or donate them. Instead, order a free bag from ThredUp. You fill it up and leave it out for your USPS carrier to pick it up. ThredUp will pay you for items they sell and donate the rest for you. Win, win!"  In-home projects 6. Bring the outdoors in Matt Daigle, CEO and founder of home improvement company Rise: "Ever wonder why windows and plants make you so happy? Apparently it's only natural that humans look to nature, hence the love of biophilic design in the home. Here are some easy ways to boost your mood by bringing the outdoors in: Add plants, plants, and more plants in your home! Succulents are easy in-home plants. Plants help filter the air in your house and can make your home smell better too. Improve your view of the outside by granting more access to your windows — remove obstructions like furniture and unnecessary wall coverings. Build your next shelf, table, or accent wall with natural materials like wood or stone. The sound of water makes us happy. Making a small indoor water fountain is a very quick one-day project."  7. Write a meaningful note Heidi Bender, owner and blogger for company Tons of Thanks: "To help past the time, I suggest writing thank-you notes. Focusing on gratitude and sharing those feelings with others can be a very positive distraction. Start by making lists of what you are grateful for as a way to help you identify who exactly you want to thank. Who keeps showing up in your list and needs to hear words of gratitude and appreciation from you?"  Buy a box of 50 standard thank you cards and envelopes every month. Make it a goal to write and mail two thank you cards every business day of the month. Write a card to whomever you are thankful for: friends, family, coworkers, clients, or a random connection. People will absolutely open (and most likely keep!) a handwritten, mailed thank you card. 8. Reuse wicker baskets Channa Alvarez, interior designer at Living Spaces: "There’s just something about wicker storage baskets that infuses a space with so much character. If you have a set of old baskets you want to recycle and give new life to, try painting them with a color that matches your room. With wicker baskets you can create a stylish and practical storage solution that can add a layer of color and texture to a room while helping you stay tidy." 9. Sleep a little sounder Matt Clayton, founder of Pet Hair Patrol: "Being stuck at home is a great opportunity to make sure your bed is clean and hygienic — especially for the 68 percent of U.S. households that own a pet! Soley washing the bed linens is not enough. All the sweat, dirt, and dander penetrates all the fabrics on your bed and ends up in your pillow, mattress, and comforter as well. To ensure maximize bed cleaning, I recommend the following: Vacuum your mattress Toss your pillow and comforter into the washing machine, if possible Use the dryer to remove more dust and dander Having a clean bed will help you sleep like a baby and promote your well-being!" There’s nothing better than the feeling of falling asleep in bed on clean sheets day.  10. Easy bathroom renovation project Lisa Torelli-Sauer, editor of home investment website Sensible Digs: "Replacing old and discolored grout can upgrade the appearance of your bathroom or shower within a week's time. Replacing stained/damaged grout can not only make a dingy bathroom shine, it can also prevent water damage in your home. When water seeps through run-down grout, it can cause serious damage to the floor beneath your tiles. Grout replacement only requires a few tools and supplies, plus it is not a very difficult task to complete. You will need the following supplies:  Grout (either ready-made or powdered) Grout saw Grout float or spreader Grout finisher A few soft cloths or rags A large sponge A bucket Be sure to let the grout dry for at least 24 hours before you use the wet spaces again to ensure the maximum hold on the grout. DIY cleaning hacks 11. Make your own cleaning products Jennifer Willy, Editor of travel company Etia: "DIY cleaning products consist of on-hand ingredients that can most likely be found in your pantry. For a natural, all-purpose cleaner all you need to do is mix the ingredients below: One part of white vinegar One part water Lemon rind and rosemary sprigs (simply for smell) Then pour the mixture into a spray bottle and let the concoction sit for a week before using.  After a week, you can use this to remove hard water stains, clean trash cans, wall smudges, and much more.  Bonus: If you want to make a homemade glass cleaner, the process is very similar. This mixture requires: 2 cups of water 1/2 cup of white/cider vinegar 1/4 cup of rubbing alcohol with 70% concentration Like the above-mentioned DIY cleaner, mix the ingredients together and pour it into a spray bottle."  12. Give your couch a deep clean Joshua Miller, Director of Technical Training at Rainbow International Restoration: "Furniture is often the culprit behind persistent unpleasant smells in the home, as upholstery often retains odors from past stains. If the upholstery can be cleaned with water, use a water-based solution for the simplest and fastest option.  1. Clean the spots with an easy, homemade mixture of: 1 oz. dishwashing detergent 12 oz. water 2. Blot to dry.  3. Add to spray bottle: 5–10 drops of essential oil (lavender can be a great choice here) in the spray bottle 1 cup of water  4. Spray and saturate the stained area with the solution. The oils will help eliminate the odor and leave a pleasant scent behind. Pretest solution in an inconspicuous location and allow to dry to test for colorfastness before using on the rest of the upholstery." 13. Scrub-a-dub-dub your tub Erin Ford, writer for travel website Hotels4Teams: “I’ve tried every cleaning supply that I could get my hands on in an attempt to get the tub white and shiny again. No matter what I used, nothing seemed to work. That's until I discovered this immensely simple, two-ingredient bathtub cleaner: Mix equal parts warmed-up white vinegar to dish soap Pour evenly on the bottom of your tub.  Let the mixture sit for at least an hour When you wipe it up, it easily eradicates all soap scum! When I first found this cleaning hack on Pinterest, I thought it was too good to be true. But ever since I started using it, I haven't looked back. With this mixture around, you can bet I have a clean tub to relax in.”  Outdoor Projects 14. Try out your green thumb Shawn Breyer, owner of Atlanta House Buyers: Head to your local nursery to try out your green thumb.Going to the local nursery not only lets you support small businesses in your community, they also provide better service and lower prices than the big box stores. "When you are buying plants for your home, make sure that it suits your lifestyle: If you have bad allergies, don't buy flowering plants, but do buy air purifying plants.  If your home is dark because you keep your blinds shut then don't buy plants that need full sun. Buy plants that thrive in the shade.  No matter what your lifestyle is, you can find plants that can enhance your life and wellbeing.  If you have old plants that have not received new soil in one to three years, then consider buying larger pots for them and re-soil the plants. As old soil runs out of nutrients, the plants will stop growing. Plants can outgrow their containers as well. Giving a plant a larger container and new soil can allow it to be more healthy and grow larger." Don’t have a green thumb at all? Not to worry! Try something quick and easy like adding fresh mulch to an existing flower or garden bed. 15. Give the earth some love Brent Campton, director of partnerships at recycling company Hillside: “In the same way that people are thinking about how to have more resilient practices at home like water filters and bidets, starting a composting pile is a great family activity that will also support the planet.  As long as you have space in your backyard, there’s a way to do it without spending a dime, without any smells or bugs (apart from your curious dog), and with things you have already laying around the home. Check out this great video for a step-by-step process on how to start composting in your backyard.”  A great tip to make composting even easier is to have a dedicated box or container in your kitchen - preferably somewhere that’s out the way - that allows you to collect your kitchen composting materials. That way, you can collect your leftovers and scraps over a period of a few days and make one trip to the compositing piling, without having to go outside every time you have leftovers. 16. Spring-clean the exterior of your home Sara Bendrick, landscape contractor, author, and TV personality for STIHL: “Homeowners and renters should head outside for a few minutes a day to exert some control over their outdoor spaces. Working outside has proven therapeutic benefits, and it’s the perfect time to do some of those outdoor tasks. Below are five garden tasks that you can start tackling today: Clean your gutters Pressure wash Clear weeds and debris Get planting Start composting" 17. At-Home pest prevention Arrow Exterminators team, pest control company: “Pest-proofing the home does not always have to be a professional endeavour. Below I've provided a list of activities people can do from the comfort of their own home in order to prevent pests as the weather changes: Kitchen: Do a quick inventory of food and make sure everything is stored in airtight containers Bedrooms and bathrooms:  Run fans and dehumidifiers to eliminate damp conditions Living spaces:  Wipe down and clean the furniture Give the family pet a bath and ensure their flea and tick prevention is current  Garage:  Reorganize seasonal items in airtight plastic storage bins, storing them off the floor if possible Sweep or blow dirt and debris out of the garage as much as possible. Dust, dirt, grass, and all sorts of things accumulate on your garage floor. Outdoors:  Seal all cracks and small openings around the foundation of the home, including entry points for wires and pipes Eliminate sources of standing water and moisture Clean (and keep clean) garbage collection areas and ensure all receptacles are tightly closed Trim back branches and shrubbery away from the house" Bonus: 18 self-care tips In addition, here are 18 quick bonus tips provided by Liana Pavane, digital wellness coach and founder of TTYL. Here she gives an array of ideas on how to spend your time at home. This list will inspire you take care of yourself — mentally, physically, and emotionally: Get fresh air as much as possible, even if it's just for a walk around the block or sitting on your balcony/backyard if you have one. Keep your body active by going outside for a walk, run, or even following a YouTube workout video. Have an indoor cycling bike? Even better. Keep a schedule for yourself and keep up with your normal routines. Don't allow yourself to sleep in too much or binge too much as a means of distraction. Put upbeat music on and have your own dance party! Break out a sheet of blank paper (or coloring book if you have one) and doodle your heart out. Download a meditation app (like Insight Timer or Headspace) and hold space for yourself. Create a vision board with old magazines. Declutter/organize your space! Giveaway clothes and throw out unnecessary items. Practice a foreign language for 10 minutes a day. Read a new book (or a few!) Start a giant puzzle. Go around your house and order anything that needs replacing/fixing. Write out your fears to get them off your chest, read them, and rip them up. Light a candle and take a hot bath (bubbles optional!) Have a FaceTime sesh with all your family or friends (maybe try Zoom!) If you have roommates, have a game night! Make a decadent meal for yourself that you never had time to do before. Sleep! Catch up on those zzzz's

It is no secret that Accessory Dwelling Units (ADUs) are popping up all over, especially in areas where the population is growing rapidly, such as in the south or on the west coast. Homeowners who are looking to make passive income, expand their square footage, or host friends and family are turning to ADUs as a way to address these pain points.   Even though there has been a huge rise in popularity, many people who may be interested in exploring the possibilities of ADUs may feel intimidated by the perceived ambiguity in the industry. Maybe this sounds like you? We've asked experts in the real estate and mortgages industry to answer your questions about the following ADU basics: What is an ADU? What are ADUs used for? How much does an ADU cost? How can ADUs provide additional income? What are ADU pros and cons? Bonus: Testimonial of a ADU homeowner/real estate broker 1. What is an ADU? An Accessory Dwelling Unit, or ADU, is a secondary unit either attached or detached to a single-family home. ADUs typically tap into the utilities of the primary house located on the same property. For a space to be considered an ADU it must have its own kitchen, living area/bedroom, and a private entrance. Common ways to refer to an ADU may be an in-law unit, secondary dwelling unit, guest house, granny flat, pool house, converted garage, etc.  While standard ADUs can vary in square footage, a homeowner may choose to create a Junior Accessory Dwelling Unit (JADU), which is a living unit with a maximum of 500 square feet, generally converted from within the walls of the primary residence. A Junior ADU may include a small kitchen and usually have interior access to the primary home. Given the liberalization of ADU permitting across the West Coast, professionals in the housing market, such as Unison, expects the number of ADU units to grow over the coming months and years. Renters want the housing, and homeowners want the income and flexible living to help combat the housing crisis. Building an ADU is one way that people are attempting to combat the housing crisis. 2. What are ADUs used for? Accessory dwelling units work so well because their use is flexible. Real estate experts Brian Davis and Paul Dashevsky give a comprehensive list of what ADUs are typically used for: Guest space In-law unit Adult child housing Long-term rental housing Short-term Airbnb-style rental housing Fitness studio Home office Home for returning college kids Additional source of income onto a rental property Even folks looking to help pay for reitrement are turning to ADUs as an option. Dashevsky observes that the industry is seeing more "seniors build ADUs with the intention of moving into the ADU and are renting out their main houses as a source of income to finance their retirement." The options go as far as your unique situation and imagination. The purpose and utility of your ADU does not have to remain stagnant; it can transform overtime to meet your circumstances. Perhaps your ADU starts as an office space, but then turns into a rental property. Whether you are wanting extra space, extra income, or both, there is a lot of initial appeal attached with ADUs. However, how you're going to use the space could influence whether or not you create a detached ADU or an attached ADU. For example, renters may appreciate some extra privacy, so if your intention is to rent then a detached ADU could be a good choice, whereas an attached ADU could perhaps serve your purposes otherwise. 3. How much does an ADU cost? The general estimate is that an ADU will cost typically around $100,000-$140,000, although this cost could extend up to $180,000. The cost however will vary greatly by region, labor expenses, square footage, materials etc. For example, in regions where the cost of living is more expensive, like California, the average cost per ADU tends to be more expensive. Dashevksy explains that, "in Los Angeles, you can expect costs to average about $300-$400 per square foot; so a new 500 square foot one-bedroom ADU might cost $150,000-$200,000." It is important to note that besides the general geographical location of your property, the cost of labor is the second most varying cost factor to take into consideration. The bulk of your money will be going to pay contractors and laborers. If you are looking to cut costs, consider the opportunity cost of taking the time to do some of the labor yourself that doesn't require specialty training. Another way to cut the cost of labor is to buy prefabricated ADUs. Prefabricated ADUs are built in a highly streamlined, factory-like process, similar to how products are developed by an assembly line. While prefabricated ADUs will help to mitigate the cost of labor, you will lack major customizable elements. ADU expert Davis adds that, "the cost (of a prefabricated ADU) can range anywhere from $15,000 kits on Amazon up to $100,000 or more for custom stick-built structures."  Davis continues, "Whether your ADU is more high end or not, given their popularity and income potential, ADUs often pay for themselves relatively quickly if you rent them out. Sometimes the income from them can cover these costs within a few years. And they often add instant equity, as the value of your property spikes upward given its extra living space and income potential."  Contact your local real estate agent or contractor for a better understanding of what an ADU may cost to construct in your neighborhood on your property.  4. How can ADUs provide additional income? One of the most appealing things about an ADU is the income potential. Some people build an ADU with the intention of renting it out to others, some consider building an ADU to live in themselves, then rent out their main house as a way to both downsize and provide a steady source of income. Davis explains this additional income source as house hacking: "Homeowners who rent out their ADU, whether long-term or to short-term vacationers, add an income stream to cover some or all of their housing costs. It’s a strategy known as house hacking — finding a way to reduce/eliminate your housing costs through someone else paying them.”  This sounds great, but maybe you're a bit skeptical about how easy it is to actually rent out an ADU? Real estate expert Connie Heintz  dives into the appeal of ADUs from a potential renter's point of view. "Because an ADU is an entire dwelling space, you can easily rent it out for additional income as a home, but charge accordingly. You might take a few hundred off the price because it’s on your property, so your renters won’t have the privacy that they’d get from having a property to themselves. But in most places, the cost of rent will still pay for the cost of the ADU in less than a decade. If you do plan on renting out your ADU, I recommend not to attach it to your house. As long as you have the space for a standalone unit, it’s a much better option. You’ll save some money because you won’t have to pay to attach it to your house, but renters are likely to pay more for it because they’ll have extra privacy.”  If you price your ADU according to the size and privacy restraints that often are characterized by ADUs then yes, renting out your ADU is a very appealing option for many renters. Think newlyweds, single professionals, or even empty nesters as prime renter candidates. 5. What are ADU pros and cons? If an ADU sounds like a potential solution to your situation, consider weighing these basic characteristics as you begin looking into building an ADU more seriously: ADU Pros ADU Cons Endless potential uses to the space Increases property value Improves housing affordability Can function as a source of passive income Nearby utilities to tap into (water/sewer/gas/electric) Property taxes may increase Possible issues with renters and maintenance Diminishes privacy Not all jurisdictions or homeowners associations allow ADUs Prone to NIMBYism Issues of zoning, permits, and property laws seem to be the biggest roadblock that homeowners face when trying to build an ADU. Heintz warns that “the downsides of ADUs are mostly related to insurance and zoning laws, which can vary greatly by state, county, or neighborhood. There are all kinds of rules and regulations related to adding structures onto your property. For example, if you add a standalone unit, you might also have to add parking for another car. This is common in some areas, so you should do your research before you commit to building an ADU.”  In addition, if you decide to rent out your space, short or long-term, you take on the role of becoming a landlord. You are now responsible to pay for any damages that renters may cause to the space, as well as relinquish a bit of your privacy to your close ADU renters. Whether you are running a short-term Airbnb-style rental or a long-term rental, the stress and lack of control that is common with the role of a landlord can be a major deterrent for many. Bonus: Testimonial of an ADU homeowner/real estate broker Broker, investor, and house hacker in Los Angeles, Rick Albert, is not only a real estate expert but an ADU owner and dweller himself. He shares below his unique perspective on turning his garage into a converted ADU. “The main reason I own and live in an ADU unit is because it offsets the cost. By living in the ADU and renting out the main house, 69.5 percent of my mortgage, property taxes, and insurance is covered by the tenant.  In an expensive city like Los Angeles, it is a creative way to make it work. The cost is up to about $100,000 for our garage conversion. You are spending close to $10,000 alone on permits, architectural fees, engineering, and utility fees before even touching the garage. I am the only one out of everyone I know that is actually living in the ADU. Otherwise, everyone I know is renting theirs out.   The major pro is the rental potential. I know people who are renting out their converted garages as ADUs for anywhere from about $1,500 to almost $2,200 per month depending on location. The main con, besides lack of storage, is making sure that you do the conversion right. This includes no windows facing the main house, adding washer/dryer hook ups, and creating a yard space for the unit.  When these things lack, it makes it tougher to rent out for a good price. This is especially true for studios, because you may get higher turnover versus a true one to three bedroom place.”   The bottom line If you are looking for additional space and/or income, building an ADU is worth looking into. Download our free ADU guide to help you decide whether or not an ADU is right for you. Another mainstream trend in the affordable housing market is the rise of tiny homes. Tiny homes are an up and coming solution to the housing affordability crisis as well. Check out this article if you're interested in finding other non-traditional ways to make your housing more affordable.   Expert Contributors:  Paul Dashevsky, co-founder of GreatBuildz, a Los Angeles-based free service that simplifies the contractor search by directly connecting homeowners with reliable renovation contractors. Rick Albert, Broker Associate with LAMERICA Real Estate, and investor/house hacker in Los Angeles.  Connie Heintz, real estate agent working in Toronto and founder of DIYoffer. Brian Davis, real estate investor and co-founder at Spark Rental, where we focus on financial independence, personal finance, real estate investing, and passive income.  

Guest Post by Ben Mizes Whether you're selling your home, or just looking to freshen up your living space, paint is one of the easiest and most cost-effective ways to do it. And while you may be tempted to set yourself apart by choosing a zany color for an accent wall, you might want to think twice. Neutral colors can help the aesthetic of your home transform into a timeless, spacious, and attractive space. Before you consider painting your bathroom candy-apple red, consider these four paint-like-a-pro tips below to help steer you in the right direction. Instead of going wild with paint, amp up your space by using pops of your favorite colors in other features — like a bold lamp, bright shower curtain, or fun wall art. This way, when you’re two months in and aren’t as in love with the shade, it’s easy to swap out. Not to mention that if you decide to sell later down the road, that’s one less item to add to your to-do list. If you’re painting multiple rooms and areas, consider how the colors may work in tandem. By using the same paint color in adjoining rooms — like a dining room that leads into a living room — you can create the illusion of a roomier space. You can also use paint color to play up accent features or hide flaws. If you have gorgeous crown molding or sparkling wood floors, choose a contrasting color that makes these features stand out with a darker (but not too dark!) color. On the other hand, if your baseboards are in need of some TLC, it's best to stick with a light neutral that keeps them playing second fiddle. Keep in mind that if you’re painting to sell, buyers generally prefer some variety (in neutral shades, of course) from room to room. Also carefully consider the lighting in each room when choosing how light or dark to go. Light shades are generally best for small bathrooms, while you may get away with a dark navy as an accent wall in a bedroom if the space is well-lit. There are different types of paint finishings: flat, eggshell, semigloss, and gloss. Each finish has different pros and cons, and each finish may make the color of the paint appear different Still not convinced that neutrals are the best accessories to your walls? Here is a quick list of some of the best neutrals to paint the interior of your home. White — bright and clean It doesn’t get more neutral than white! Painting your interior walls white gives everything a fresh, clean feel and can work wonders for brightening up your space. Not to mention that if you’re looking to sell your home in the near future, white gives potential buyers the feeling of a blank slate and a fresh start. They may keep the white or can easily paint over with another color with not too much effort. While you may think white is just white, there are endless shades — pure white, off white, simply white, and white with cool or warm tones. Especially if you have other features in your home you’re not looking to replace, but would like to neutralize (a wood banister or eccentric tile) white is the way to go.  A word of caution: While you may be tempted to give your kitchen a fresh feeling by painting it white, it can be hard to keep this high-traffic area of your home clean. You may be better served choosing a gray-blue for your kitchen. You’ll still have the brightness, without having the headache of trying to keep the walls pristine. Same goes for bathrooms. Consider using an eggshell finish on your paint in these places that are often used and in need of constant cleaning. Gray — sophisticated Gray brings an air of elegance and sophistication to any space. Since gray matches any accent color, it can be a great complement to louder pops of color in decorations or furniture fabrics. Interior designers rely on gray because of its versatility and timelessness, especially in well-used and often-seen areas like living or dining rooms. For a subtle warmth, consider a “greige” tone — a mixture of gray and beige. This pairs nicely with any accent color since it can be warm or cool depending on the colors presented around it. Greiges look especially nice with white trim. Got a wall with a lot of bumps and imperfections? Try using a flat paint finish. That will hide a lot of those imperfections. Brown — warm and inviting Brown can be warm, cozy, and inviting. But, we’re not necessarily talking about crayon-color brown — more like a medium tan or beige, unless you’re using a darker shade for an accent wall. Browns also pair well with white trim and accents, but if your trim is already a wood color, the two shades of brown may not play well together. No matter what shade, generally it’s best to keep browns to large areas like living rooms or basements. Steer clear of them for dining rooms or bathrooms. Gray-Blue — refreshing Gray-blue is a great neutral, particularly for bathrooms. This soft, refreshing color is light enough to keep the room bright (especially important in a small bathroom), but dark enough to hide scuffs and stains from lots of use. According to a Zillow study, homes with a gray-blue tint on bathroom walls sold for an average of $2,786 more than a white bathroom. You, or whoever buys your home in the future, can be inspired by enjoying soft, ocean-inspired walls each morning as you get ready in your serene, peaceful oasis. Gray-blues are also great for kitchens — increasing a home’s price by an average of $1,800 according to another Zillow study. Blue — calm and organized If all other features of your living room are white or neutral, a nice, strong blue or even a navy may be the way to go. While often overlooked as a neutral, blues can bring a calm, organized feel to a room. Blues are great for dining rooms, especially if you have white trim and are a fan of the clean, formal look. The same two Zillow studies mentioned above also found that dining rooms painted blue generate almost $2,000 more when the home is sold and homes that featured light blue bathrooms sold for $5,440 more than anticipated. Ben Mizes is the Cofounder and CEO of Clever Real Estate, the free online service that connects you with top Real Estate Agents who can help you save thousands on commission. Ben is also an active real estate investor with 22 units in St. Louis, and a licensed Real Estate Agent in the State of Missouri.