Archives for November 2020

How to Choose a Great Gift for New Homeowners

Thinking of getting a gift for a new homeowner in your life but not sure where to start? You’re not alone: Gift-giving can be seriously challenging. Even people who think they’re great at gift-giving often wind up just picking something they’dlike rather than really considering the recipient’s wants and needs.

Rising Star Realty has a pretty good sense of what kinds of homeowners are out there, and what kinds of gifts may suit them. If your friends fit into one of the categories below, we’ve got some ideas for the perfect present.

The Design-Obsessed

For some people, purchasing a home marks a chance to unleash their inner interior designer. This homeowner couldn’t be more excited about putting up decor and planning gallery walls. There’s also a good chance they feel lukewarm about some of their existing furniture – and that’s where you come in.

If your friend has a chair or couch with a great shape but lackluster cover, offer to pay for reupholstering. This is a perfect gift for antiquers and thrifters, as well as people who have inherited heirloom furniture from family members. It can also be a great way to coordinate mismatched pieces to create an eclectic but unified aesthetic. Costs vary substantially – between $350-$1000 on average – and depends on the furniture’s size, type, and condition, among other factors.

The Happy Hosts

If you got an invite for a housewarming the minute your friends closed, they’re probably the hosting type. These are the friends who are always throwing a last-minute bash or planning a 30-guest Friendsgiving event. For these friends, you want to get a gift that will help them host with ease.

For example, you could look into getting them decorative display plates for dinner parties, or an under-counter drink refrigerator. If you go with this appliance or similar, get some info from them before you buy. You’ll want to take how much space they have into consideration, as well as voltage requirements and noise level. The last thing you want is to get an appliance they can’t (or won’t) use.

The Homebodies

The most introverted among us often view buying a home as securing a sanctuary away from it all. The new home homebodies will go out occasionally, and they’ll have people over, too – but usually, no more than five or six at a time and that may be pushing it. Above all, their home is a space where they can unwind, be themselves, and dedicate time to the things that matter to them most.

For homebodies, we recommend thinking about what kind of hobbies and passions your friends have, and gifting based on that. For example, if they’re into making ceramics, you could gift them a set of sculpting tools or you could go big and get them a pottery wheel. A friend who loves to knit might appreciate a crafting cabinet they can use to organize sticks and yarn. Lean into what brings them joy, and you’ll bring them joy, too.

The Utterly Practical

Finally, you might be shopping for the kind of no-nonsense person that the above gifts just won’t feel right for. For these folks, ask if they need a ladder, lawnmower, or other housework tools they might not have picked up yet. Also, you can never miss with a gift card.

These might seem a little dry, but their sheer practicality will appeal to the homeowner who just likes to get stuff done. Remember, you can always make your gift more personal with a card or note if you feel like it’s missing that sense of connection. However, you might be surprised how seen your gift makes them feel.

A housewarming present is a wonderful way to show a new homeowner how much you care, and congratulate them for entering this stage of their life. We hope this has helped you find a great gift – or at least, provided a jumping-off point. Whatever gift you choose, the recipient is sure to feel the love.

Looking to buy or sell a home yourself? Contact Rising Star Realty at (855) 864-STAR for guidance you can trust.

Photo Credit: Pexels

Can We Get a Pet? I Promise I’ll Take Care of It!

Being a parent means hearing the inevitable question, “Can we get a [insert pet here]?” Of course, this means you will have to take some responsibility no matter how many times your child promises to take care of the new family member. If you decide to take the plunge, here’s a list of the greatest first pets that will thrill your child and ease some parental concerns.

• Hermit Crabs: Hermit crabs are a very low maintenance pet, but will also teach your child responsibility, as they need to make sure there are big enough shells in the tank for the crab to grow into, as well as water and food.

• Small Lizards: These reptiles are good starter pets due to their docile nature, low-maintenance lifestyle and small size. Though delicate in their infancy, once they reach adulthood, they’re resilient and hardy creatures.

• Small Birds: For the older, calmer child, small birds are great pets. They are relatively low maintenance and don’t require a lot of attention, especially if you get two that can socialize together, like society finches. Be sure to get them a cage big enough for a little bit of flying and a couple of toys for amusement.

• Gerbil, Hamster, or Mouse: These animals are usually good tempered and low maintenance. They also don’t require great lengths of attention. Just make sure the cage is up-kept and that these creatures don’t break free, as they are excellent escape artists.

• Guinea Pigs: These animals are very friendly and may squeak with excitement when they see their owner. They love to play and rarely bite. When you and your child are ready for a bigger commitment, Guinea pigs are great practice if a dog or cat is in the future, as they require daily grooming. Consider a pair of females since these are very social animals. A pair of males will fight, and a male/female pair will result in lots of tiny Guinea pigs.

• Rats: Unlike their dumpster-diving cousins, domesticated rats (or “fancy rats” as they’re also named) are just as friendly as guinea pigs and also rarely bite. They do require attention and outside play time, but they are low maintenance and even clean themselves. Who knew?

• Betta Fish: These gorgeous fish make great pets because they do not require all the heavy duty filters most fish tanks need. They are happy in a small bowl. The only upkeep is keeping the tank clean and making sure the fish is well fed. Fish are also very enjoyable to watch.

• An Older Cat or Dog: Adopting an older animal will teach your child responsibility without the hassle of training a younger animal. These animals are usually already well trained and will adjust to people more easily. However, they are still harder to take care of than most pets.

• Ants: The time-honored ant farms in the same style as the 1950s are still around, plus today you can also find 3-D ones or other interesting styles. Ant farms can offer hours of entertainment that kids will love. Taking care of them, however, may call for parental supervision. Cleaning the farm and feeding the ants requires adult supervision and/or management.

• Smaller Snakes: Snakes can actually be really cool for a child’s first pet. As long as they are non-venomous, snakes can become a kid’s best friend. The only problem that deters most people is that they are carnivores, so as long as you and your kid are ok with that, then snakes can make an interesting and fun first pet.

Taking care of a pet is a great way to teach a child about responsibility and can also provide a great nature show and education.

Insider Tips From Cleaning Pros

Here are some Insider Tips from cleaning Pros for a clean that’s a cut above! Who doesn’t like a squeaky clean house? Yet, no matter how hard we try, no amount of elbow grease seems to measure up to the job done by professional cleaners.

Add a drop of olive oil. Have you meticulously cleaned your stainless steel appliances only to step back and still find fingerprints? Place a small amount of olive oil on a clean rag or paper towel and buff with the grain to banish stubborn smudges. Remove any remaining residue with a clean paper towel and you’ll be left with a gleaming appliance.

Hone your vacuuming technique. Like to speed through the house with your vacuum? According to the experts, it’s time to slow it down. While it’s natural to focus on the pushing motion when vacuuming, dirt is actually removed when you pull it back, so be sure to do so slowly to suck up as much as possible.

Clean with steam. The pros say that for a really deep clean, put chemicals aside in favor of steam. As opposed to cleaning solutions, which can leave behind a sticky residue, steam cleaners remove dirt using heat. They can also be used in a variety of places and on many different surfaces, including, tile, grout, carpet, upholstery, showers, sinks, ovens, stove tops, mattresses and more.

Enlist some cornstarch. For the clearest windows ever, forget cleaning sprays. Instead, mix up a cup of white vinegar and a cup of water, then add a teaspoon of cornstarch. The fine abrasive texture of the cornstarch will help remove dirt and grime from glass.

Stick it in the freezer. Is there some melted candle wax stuck to your table linens? How about gum on a piece of clothing? Put your item in a large plastic bag and let it sit in the freezer for a while. This should make scraping it off a breeze.

Let these tips from the pros help make your cleaning easier and more effective.

Source: Real Simple

Cleaning Institute

30 Quick Tips for a Clean Home

4 Ways to Help with Chances of Getting a Mortgage

Here are 4 Ways to increase your chances of Getting a Mortgage. Good Credit is required for a Mortgage Lender to approve you for a Mortgage. The coronavirus pandemic has made a huge dent in the U.S. economy, but mortgage lending interest rates are at an all-time low. It’s no surprise then that in 2020, existing-home sales hit their highest level since 2006, according to the National Association of Realtors.

That said, because of the economic downturn, many home lenders have tightened their underwriting criteria, showing some caution about who they’re willing to lend to. So, even if you meet the minimum requirements to get a mortgage, it may still be tough to qualify.

If you’re hoping to buy a new home or even refinance your existing mortgage loan, here are four things you can do to increase your chances of getting approved:

Check your credit score and report
Shop around and compare mortgage lenders
Pay down debt
Avoid taking on new debt

1. Check your credit score and report

Your credit score is a key indicator of your overall credit health. Use a free service like Experian or Discover Credit Scorecard to get free access to your FICO credit score, which is widely used by lenders – you may even already get free access through your bank or lender.

Due to the pandemic, the three national credit bureaus are offering one free credit report per week through April 2021 – normally, you can only get a free credit report from each bureau once every 12 months. Visit AnnualCreditReport.com to get your copy.

What is a subprime credit score?

If you have bad credit, you should research ways to boost your credit score ASAP. Improving your credit score doesn’t have to be a difficult task. Here are some simple ways to improve:

Pay bills on time
Get caught up on past-due payments
Pay down credit card balances
Keep a low balance
Dispute any errors or inaccurate information on your credit card report

2. Shop around and compare mortgage lenders

Each lender is different, not only in how they underwrite mortgage applications but also in how they assign interest rates. So, while one lender may reject your application, another may be more than willing to finance your home purchase.

The more mortgage lenders you compare, the better your chances of finding one or more lenders who will work with you. You’ll also improve your odds of getting the lowest interest rate that’s available to you.

Filling out applications with multiple lenders can be time-consuming, so consider using an online marketplace like Credible to shop around and compare offers from multiple lenders in one place.

3. Pay down debt

While your credit score is a key indicator of whether you qualify for a mortgage, another crucial element is your debt-to-income ratio (DTI), or the percentage of your monthly gross income that goes toward debt payments.

Many mortgage lenders prefer that your total DTI stay below 36%, and your front-end DTI, which only includes housing costs, to be no more than 28%. While some may go higher than those thresholds, the lower your ratio is, the better.

To maximize your efforts, focus on loans and credit cards with the lowest balances that you can pay off quickly. Even a small reduction in your DTI could make a huge difference.

4. Avoid taking on new debt

A mortgage loan is a major financial commitment, both for you and the lender, so it’s natural for lenders to be sensitive to other debts that could make it difficult for you to keep up with your monthly payments. As you get your credit mortgage-ready, apply for a loan, and go through the home buying or refinancing process, it’s critical to avoid applying for other credit accounts.

If you expect to need a loan or credit card, complete that process six or more months before you submit your mortgage application.

What credit score do you need to buy a house?

What are today’s mortgage rates?

Mortgage rates have dropped significantly in 2020, but between August and September, they’ve remained somewhat flat. Unlike shorter-term loans, mortgage rates don’t have a strong tie to the prime rate or federal funds rate.

However, they are influenced by 10-year Treasury Notes and inflation rates, both of which have been relatively low in 2020. Here are the latest average mortgage interest rates for the week of Oct. 8, according to Freddie Mac:

30-year fixed-rate mortgages: 2.87%
15-year fixed-rate mortgages: 2.37%
5/1 adjustable-rate mortgages: 2.89%

Based on the current mortgage and refinance rates, it may be a good time for you to refinance.

How does the Fed rate cut affect your mortgage and credit cards?

If you’ve been thinking about buying a home or refinancing your mortgage loan, now is an excellent time to do it. There are even options with a low-down payment if you don’t have a sizable savings account balance – though a lower down payment may result in private mortgage insurance.

Before you submit your mortgage application, however, it’s important to make sure you’re a good candidate for a loan. If you have bad credit, existing debts or more -make sure you do the above to improve your odds of getting approved. Check your credit score and work on paying down credit cards and other low-balance debts.

Also, make sure to avoid new credit applications several months before you file a mortgage application, as well as during the homebuying process. And to ensure that you get the best rate available, shop around. You can also get in touch with experienced loan officers and get all of your mortgage questions answered.

https://www.risingstarrealty.com/get-best-mortgage-rate-buy-home/

5 Common Credit Mistakes Buyers Make That Can Last for Years

Buyers trying to boost their credit score to secure a mortgage realize some things can be corrected quickly – but others hang onto a credit score for years.

Some credit mistakes are a lot worse than others. Little ones, like paying a credit card bill a day late, may cost you a penalty fee, but that’s a relatively minor irritation. It’s not going to stand between you and a mortgage. Other seemingly small slip-ups can lead to full-fledged disasters.

What makes a credit misstep haunt you? Some things can be reversed quickly. Running up credit card bills can tank your credit score, for instance, because the portion of your credit limits you’re using is weighed heavily in credit scoring. But when you pay down the debt, the damage disappears as lower balances get reported to the three major credit bureaus, Equifax, Experian and TransUnion.

Mistakes that have long-running ripple effects hurt the most, says credit expert John Ulzheimer. A late payment, for example, can get sent to a collection agency, then perhaps grow into a repossession or bankruptcy. Those batter your credit and stay on your credit record for years. Likewise, co-signing a loan for someone who is later unable to pay can hamstring your finances for a long time.

Common mistakes that can hurt your finances

Missing a payment: Paying just a day late might cost you a penalty fee, but your credit score won’t suffer because creditors can’t report your account as delinquent until it’s 30 days past due. If you have a high score, going 30 days late can knock as much as 100 points off your score and it stays on your credit report for seven years. The damage gets worse if you let the account slide to 60 days past due, 90 days past due or more. Your score can recover, but it will take time. Catching up on that account, and keeping all other payments up to date and balances low, can help.

Raiding retirement funds to pay debt: Most people don’t want to file for bankruptcy. Almost half of Americans say they would not file no matter how much credit card debt they had, according to a recent study commissioned by NerdWallet. Bankruptcy attorney Roderick H. Martin of Marietta, Georgia, says some of his clients have tapped – or even emptied – retirement savings in a desperate attempt to stay afloat. That often just delays the inevitable “then they turn around and file for bankruptcy”. Retirement savings are typically protected in bankruptcy, but money already withdrawn cannot be recovered.

Co-signing a loan: Aaron Smith, a financial planner in Glen Allen, Virginia, says co-signing so a friend or relative can get credit is often a mistake. “My personal and professional opinion is if they can’t get it on their own, there must be a problem”. If the primary borrower doesn’t pay as agreed, it can leave both your relationship and your credit in tatters. Even if the borrower repays as agreed, remaining on the loan can limit your borrowing capacity. Before you co-sign, ask if you can be taken off the loan at some point.

Sometimes doing nothing is the mistake – We may think we’re too busy to trouble ourselves with fine print or financial chores. Either can come back to bite us.

Not checking your credit: “I think checking your credit is like going to your dentist for a cleaning,” says Elaine King, a certified financial planner and founder of the Family and Money Matters Institute. “You need to make a habit of doing it. If you wait too long, there can be some rotten stuff there.” A credit report isn’t exciting reading; it’s a summary of your past handling of credit. But “boring” is what you want – anything you didn’t expect to see is worth investigating in case it’s an error or a sign of fraud. Through April 2021, you can get a free credit report weekly from the three major credit bureaus by using AnnualCreditReport.com. Plan to check at least annually, and more often is better.

Ignoring the details: Not knowing your credit cards’ interest rates or when a 0% interest rate ends can cost you. Knowing interest rates can tell you which card to use when you’re paying for a new transmission and need to carry that balance for a while, for instance. Knowing when a teaser rate ends can help you ensure you’ve paid off the balance by then. It’s important to read the fine print. Some cards – primarily store cards – charge deferred interest if there is still a balance at the end of the introductory period. That means the “savings” from the teaser rate are added to your balance, wiping out any benefit.

This article was provided by the personal finance website NerdWallet. Bev O’Shea is a writer at NerdWallet. 5 Weird Places to use your Credit Card