How to Get a Mortgage With Bad Credit

Here at Lynn Nichols Real Estate I am always to trying to find articles that are helpful, here is something for folks with soft credit. One thing I would say is never think your credit is too bad to talk to lender, always talk to a professional, that is what they do and you may be closer to buying that home than you think...As always if you have questions feel free to contact us at www.AnneArundelCountyReal.Estate

By: Michele Lerner

 If you have a credit score that’s considered fair, poor or even bad, you may be assuming that qualifying for a mortgage is out of the question. While that’s true for some would-be borrowers who need to improve their finances as well as their credit, there are some mortgage options for homebuyers with less than perfect credit.

Your Credit Profile

Mortgage lenders rely heavily on your credit score to evaluate your qualifications for a home loan because your score indicates how you have handled credit in the past, which serves as a predictor of your future repayment pattern. According to Credit.com, excellent credit gets a score of 750 or above; good credit, 700-749; fair, 650-699; poor, 600-649; and bad credit is a score under 600.

Rather than guess at your credit profile, you need to request your free credit report and pay a small fee to get your credit score from www.annualcreditreport.com. Fix any errors and take steps to improve your score with improved financial behavior before applying for a mortgage loan. A lender can help you determine which steps will boost your credit score fastest, but depending on your situation it could take at least several months or even a year before you can push your score high enough to qualify for the lowest interest rates on a conventional loan.

Loans for Borrowers With Poor Credit

In the thick of the housing boom borrowers were approved for home loans without providing documentation of their income and assets. Subprime lenders approved loans for borrowers with low credit scores, although they often charged higher interest rates to those borrowers. Since the housing crisis, the majority of subprime lenders went out of business, but, depending on your circumstances, you may still qualify for a home loan.

The most commonly used loan product for borrowers with lower credit scores is the Federal Housing Administration’s loan program. The FHA insures lenders against potential default and requires a minimum credit score of 580 or above for a loan with a down payment of 3.5%. Most lenders, though, require a credit score of 620 or 640 and above to approve an FHA loan. In addition to your credit score, you will need to provide full documentation of your income and assets and meet the lender’s debt-to-income ratio, which is typically a maximum of 41% to 43% of your monthly gross income that goes toward the minimum payments on all of your revolving and installment debts.

The downside of FHA loans is that they have higher mortgage insurance requirements than conventional loans. The mortgage insurance payments must be made for the entire life of the loan unless you make a larger down payment. However, FHA mortgage rates are comparable to conventional loans regardless of your credit score, so you won’t be stuck paying a higher-than-average mortgage rate.

Special Programs for Credit Challenges

The financial crisis and recession hurt a lot of consumers who lost their homes and jobs. If your bad credit is a result of a personal financial hardship rather than your own mismanagement, you may qualify for the FHA’s “Back to Work” program, which allows borrowers to qualify for a home loan more quickly after a period of unemployment or reduced income.

The only way to know with certainty about your ability to qualify for a mortgage is to meet with a lender who can go over your individual financial circumstances. There is no charge to consult a lender, so even if you are not ready yet to get a loan approval, you can still benefit from a lender’s advice about how to prepare for a loan application.

5 Low-Cost Kitchen Redos Buyers Will Love

With the Spring almost here, it is time to get your house in the market. The kitchen is one of the most important places to make sure it is looking sharp. Besides having it very clean, here are some items that will just make it pop and lot better. If you are looking to sell your house please call us, we don't put your house on the market, we put it in the market. Feel free to start the process by receiving a free CMA on your property go to www.FindMyMarylandHomeValue.com

Kitchens are one of the features buyers compare most closely when they’re shopping for a home. Here are cost estimates for some of the low-cost kitchen upgrades that listing agents often recommend to sellers:

1. Hardware.
Replacing cabinet hardware, such as handles, knobs, and hinges is a quick, DIY way to enhance kitchen space. According to HouseLogic.com, an average kitchen is 200 square feet with 30 linear feet of cabinetry, which equates to about 40 handles and knobs. Averaging between $2 and $20 per knob or pull, a home owner can expect to spend from $80 to $800 for this enhancement.

2. Faucet.
There are myriad options today in terms of height, spouts, pullout hoses, and folding necks, with quality faucets starting at around $200.

3. Lighting.
Adding an LED undercabinet light can have a dramatic effect for about $40.

4. Organization.
Buyers today choose functionality over elaborate decoration, says Jamie Goldberg, a National Kitchen & Bath Association–certified designer. Practical storage in the kitchen will go a long way. Over-the-door hooks, baskets in the pantry, drawer organizers, wall hooks for pots and pans, and stackable shelves for cabinets will add appeal, typically for less than $100.

5. Countertops.
Laminate can mimic the contemporary look of granite at a significant discount. The cost for an average kitchen with 30 linear feet of laminate countertop is roughly $1,575; the same space in granite would be about $2,400.

Thanks so much for stopping by today and again visit us at www.FindMyMarylandHomeValue.com

4 Million Homes Return to Positive Equity

Great news for Home Owners. If you have any Real Estate questions please contact us at www.MarylandHomesbyLynn.com

DAILY REAL ESTATE NEWS 

Rising home prices helped many home owners welcome the return of equity in their homes last year. In 2013, 4 million homes returned to positive equity, bringing the total to 42.7 million, CoreLogic reports in its fourth quarter 2013 Equity Report.

Of the 42.7 million residential properties that now have positive equity, 10 million – or 21.1 percent – have less than 20 percent equity, CoreLogic reports. More than 1.6 million residential properties have less than 5 percent equity.

About 6.5 million residential properties with a mortgage – or 13.3 percent – remained in negative equity territory by the end of 2013.

“The plight of the underwater borrower has improved dramatically since negative equity peaked in December 2009 when more than 12 million mortgaged home owners were underwater,” says Mark Fleming, chief economist for CoreLogic. “Over the past four years, more than 5.5 million home owners have regained equity, reducing their risk of foreclosure and unlocking pent-up supply in the housing market.”

The bulk of home equity for properties with a mortgage is concentrated at the higher-end of the housing market, with 92 percent of homes valued at more than $200,000 having equity compared to 81 percent of homes valued at less than $200,000, CoreLogic reports.

Five states alone account for nearly 37 percent of the negative equity in the U.S. CoreLogic reports that the following five states have the highest percentage of mortgaged properties in negative equity:

• Nevada: 30.4%
• Florida: 28.1%
• Arizona: 21.5%
• Ohio: 19%
• Illinois: 18.7%

Source: CoreLogic

Again thanks for stopping by today and visit us at www.MarylandHomesbyLynn.com

Lynn Nichols, Your Realtor

The Hottest Outdoor Trends for 2014

Wow talking about turning your backyard into a paradise!!! If this don't help you sell your house....

Spaces by Dc Metro Home Builders National Association of Home Builders

By Melissa Dittmann Tracey, REALTOR(R) Magazine

A home’s inviting outdoor space may be just enough to get a home buyer to fall in love. TheAmerican Society of Landscape Architects recently surveyed nearly 180 landscape architects asking them to rate the expected popularity for 2014 of a variety of residential outdoor elements.

Across all categories, respondents rated the following as “somewhat” or “very in-demand” for 2014: lighting, seating/dining areas; fire pits/fireplaces; grills; installed seating, such as benches, seatwalls, ledges, steps, and boulders.

“Home owners know that designed landscapes add value to their lives as well as their property values,” says Nancy Somerville, ASLA executive vice president and CEO. “They’re interested in livable, open spaces that are both stylish and earth friendly.”

Here’s a breakdown of how home owners are sprucing up their outdoor spaces, and some of the top trends that landscape architects pinpointed for 2014 in each category.

Top Outdoor Design Elements

1. Gardens and landscaped spaces

2. Outdoor living spaces (kitchens, entertainment spaces)

3. Outdoor recreation amenities (pools, spas, tennis courts)

4. Sustainable design practices

Top Outdoor Living Features

1. Lighting

2. Seating/dining areas

3. Fire pits/fireplaces

4. Grills

Top Outdoor Recreation Amenities

1. Decorative water elements, such as ornamental pools, splash pools, waterfalls, grottos, water runnels, or bubblers

2. Spa features (hot tub, Jacuzzi, whirlpools, indoor/outdoor sauna)

3. Swimming pools

4. Sports/recreational spaces (tennis courts, bocce ball, etc.)

Top Landscape/Garden Elements

1. Low maintenance landscapes

2. Native plants

3. Fountains/ornamental water features

4. Food/vegetable gardens (including orchards/vineyards, etc.

Top Sustainable Design Elements

1. Native/adapted drought-tolerant plants

2. Drip/water-efficient irrigation

3. Permeable paving

4. Reduced lawn

Top Outdoor Structures

1. Terraces/patios/decks

2. Fencing (includes gates)

3. Pergoals

4. Decks

Thanks for stopping by and contact us anytime at www.MarylandHomesbyLynn.com

8 Quit Tips For A Tired Bathroom

Selling season is upon us and maybe you are ready to sell your house and move on to the next phase of your life. Any Realtor will tell you it is very important to have good looking and clean bathrooms. Here are some tips to get your bathroom ready for sale that are really good on a low budget. If you would like to find out more or have any questions please contact  us at www.MarylandHomesbyLynn.com  

8 Quick Fixes for a Tired Bathroom

 Remodeling a home can be expensive and exhausting. But you can breathe new life into tired rooms with just a small budget, a little sweat equity, and a healthy imagination.

California decorating consultant Gina Fulton suggests eight quick fixes to freshen the look and increase the functionality of an old, drab bathroom:

• New paint – Choose a color that brightens the space and shines with personality. Paint one wall in a bold shade. Or wallpaper one – or all four walls – in a whimsical or elegant design that says something about you.
• Vanity – Choose a new one if you can afford it – or paint the existing vanity in a bold or pastel color that offsets or complements the color of the walls.
• Drawer pulls and towel racks – The bathroom is a small space, so you may want to splurge on unique hardware that adds a touch of class.
• Sinks or faucets – If it’s been a while since you’ve perused the hardware aisle, you may be amazed at the wide variety of affordable sinks and faucets. Consider an art-glass basin or a high-arcing faucet that adds fresh perspective to the bath.
• Lighting and mirrors – Replace a small mirror with a larger one. Surround it with dressing-room lights. Or frame it to match or contrast the walls.
• Flooring – Install inexpensive tile, hardwood or bamboo flooring that updates and complements your new design.
• Artwork – Choose a theme – perhaps impressionist prints, French boudoir prints, or even a series of framed family vacation photos. Keep visual interest in mind, but be sure to use surfaces that won’t suffer from steamy air.
• New towels and shower curtain – Whip up a sink skirt for a stand-alone sink. Embellished towels and coordinating shower curtain can pull your new design scheme together and enhance the updated look.

 By Barbara Pronin

Thanks so much for stopping by and feel free to visit us at www.MarylandHomesbyLynn.com

SNOW DAY!!! What to do?

Well looks like here in Maryland we are going to have a snow day, so what to do??? Here are a list of some ideas.
1. Create a secret snowball stash for the summer, what a good way to surprise people at a 4th of July party, and think no one else will be able to hit you back.
2. Plan that dream vacation, there you go, think of somewhere warm.
3. Have an indoor picnic, that would be fun for the kids and if you have a fireplace roast marshmallows.
4. Build a snowman, don't forget when you make that last minute run to the grocery store to pick up carrots.
5. Put together a puzzle, that can be family fun.
6. Start that workout video you have been putting off.
7. You have been wanting to move and what a great day to start the process being stuck in the house all day I have some knowledge about this one...
 A. Go to www.FindMyMarylandHomeValue.com, there you can find an estimate of what your home is  worth, you can also directly contact me.

 B. After that is done, one of the biggest things is to make sure your house is clean, in good repair and decluttered. My advice start with your closets and drawers, if you don't use it and won't use it let it go.   Give it to charity, sell it but get rid of it. Make a punch list of little things that need to be repaired, such as light bulbs replaced, light switch-plate covers, re-caulking a bathtub.                                                                                                          
There are just a few ideas and I have plenty, I would also be more than willing to sit down with you and talk about getting your house in the market and going through the house with you. Please get in touch with me at www.MarylandHomesbyLynn.com, Thanks for stopping by today...

Have a great snow day!!!

Well, I thought I would do another blog post about getting your house ready for the sale. Lot's of people put their houses up in the market in the spring time. As a Realtor I can say that it is so important when you put your house in the market that you have it in good repair, clean and organized. When showing houses there is nothing worse than going in a bedroom and see a cluttered bedroom, it makes them look smaller. So I found a video from Better Homes and Garden about small bedroom storage. This should be very helpful and give you some great ideas. If you ever have any questions please don't hesitate to contact us at www.MarylandHomesbyLynn.com. 

Please click on the photo below to view video...

Thanks again for visiting us today and don't forget to check out our website at www.MarylandHomesbyLynn.com