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Homeowners who are struggling to make their monthly mortgage payments can make it easier on themselves by cutting costs in other areas. Learning how to budget effectively will likely enable homeowners to pay their mortgage payments on-time, every time. Here are five of the best budget tips:

Conserve Energy

It is advisable to be mindful of energy use in order to keep utility bills down to a minimum. Lights, televisions and other devices requiring electrical power are best to leave off in unoccupied rooms. It is also a good idea to make sure that windows and doors are properly sealed so that energy is not wasted.

Stay Committed to Couponing

All too often, coupons that arrive in newspapers or through emails are quickly discarded. Collecting coupons from various sources can give homeowners the chance to save big on groceries, entertainment and other everyday purchases. Some of the savviest consumers have been known to spend practically nothing on their purchases by simply staying committed to the art of couponing.

Watch Credit Card Usage

Having a credit card often creates a false sense of financial security. Many card holders are tempted to charge their credit cards up to their limits only to be burdened with high interest rates and inflated minimum payments. Credit cards are best to use only in times of emergencies.

Consider Alternative Transportation Methods

Fuel costs, auto repairs and other expenses associated with driving a vehicle on a frequent basis can make it much harder for homeowners to stay on top of their mortgage payments. People who have access to adequate public transportation may be able to significantly reduce their commute costs. Car sharing services give people the opportunity to use a car on an as-needed basis and often prove to be a smarter alternative to owning a vehicle.

Keep Expense Records

It can also be easier to set money aside for mortgage payments if expenses are carefully monitored with a detailed eye. It is best to closely scrutinize receipts, bank statements and other financial documents for any discrepancies. Keeping track of expenses on a spreadsheet so that all financial information is clearly displayed may be another practical idea.

Smart budgeting practices can help homeowners save the extra money they need to pay their monthly mortgage payments before each due date passes.

As exciting as selling a home should be, there’s no denying that it can be a stressful endeavor for those interested in making their home an attractive option for buyers. Nowhere is this more evident than for homeowners who were former smokers.

While it’s truly commendable to quit smoking, removing the smell of smoke from a home can feel like an impossible task. With that in mind, here are some of the most effective ways to make smoke smell and paint stain removal as effortless as possible.

Make Preparations Beforehand

Cigarette smoke has a nasty habit of permeating through every facet of a home. As such, it can be difficult to pinpoint the areas that are most problematic. Before starting the cleaning process, open all of the doors and windows throughout the home to help it air out naturally.

It’s also worth mentioning that many longtime smokers have difficulty picking up the odor that they’ve become accustomed to. If you know someone that isn’t a smoker, invite them over and ask them to point out any problem areas.

Treat Your Home Like a Quarantine Zone

Unfortunately, a home that is infested with smoke can create a cyclical effect on anything that is washed. If you want your clothing and linens to stop carrying the smell, you’ll need an alternative to your own washer and dryer. Of course, you’ll also need to keep them away from your home for the remaining duration of the cleaning process.

In particular, carpets have a habit of retaining smoke smells long after you’ve quit. With this in mind, taking care of any carpets or curtains in your home should be a top priority.

Account For Deeper Problems

Once you’ve given your home a steam cleaning treatment and washed all of the stained surfaces down with a mixture of water and bleach, you may still discover that some areas of the house are still affected. At this point, it’s time to simply accept your losses and purchase a replacement. A nice smelling home will be far more attractive to buyers than one that inexplicably reeks of smoke.

If you’re unsure of any further steps to take in preparing your home for a sale, don’t hesitate to contact your real estate agent and request more information. Your home deserves a high price for all of the effort you’ve put into cleaning it.

Last week’s economic news included a number of housing related reports. According to the National Association of REALTORS®, pending home sales dropped by 1.10 percent in June. The S&P Case-Shiller Home Price Index reports for May noted that home prices are growing at a slower rate of 9.30 percent year-over-year than April’s year-over-year growth rate of 10.80 percent. Construction spending was also lower in June.

The Fed’s FOMC statement indicated that asset purchases connected to quantitative easing will cease in October, but that the current target federal funds rate is expected to stay in place “a considerable period” after asset purchases conclude. FOMC noted its concern over housing markets, which was based on slower home price growth and market activity.

Pending Home Sales, Home Price Growth Slower

Pending home sales dropped by 1.10 percent nationwide in June. This was the first decrease in four months. Pending home sales rose by 1.10 percent in the Midwest and 0.20 percent in the West, but dropped by 2.90 percent in the Northeast and 2.40 percent in the South. Pending sales are measured by signed purchase contracts and provide an indicator of future completed sales and mortgage loan activity.

The 20-city Case-Shiller Home Price Index for May fell by 1.50 percent to a year-over-year reading of 9.30 percent from April’s 10.80 percent. No cities in the 20-city index reported declining home prices.

Construction spending fell by 1.80 percent in June against projections of an 0.30 percent increase in spending and May’s reading of an 0.80 percent increase. Reasons cited for lower construction spending included builder focus on high-demand areas. Builders have also indicated concerns about rising mortgage rates and tight loan requirements that impact numbers of home buyers that can qualify for home loans.

Mortgage Rates Little Changed, Fed Continues Wind-Down of Asset Purchases

According to Freddie Mac’s weekly Primary Mortgage Market Survey, rates were little changed last week. The average rate for a 30-year fixed rate mortgage was 4.12 percent as compared to 4.13 percent the prior week. Discount points were unchanged at an average of 0.60 percent. The average rate for a 15-year fixed rate mortgage fell by three basis points to 3.23 percent with discount points higher by 10 basis points at 0.70 percent. The average rate for a 5/1 adjustable rate mortgage fell by one basis point to 2.38 percent with average discount points of 0.40 percent unchanged.

The Federal Open Market Committee (FOMC) of the Federal Reserve issued its customary post-meeting statement on Wednesday. The FOMC plans to continue reducing asset purchase under the current quantitative easing program until the purchases cease in October. Although some analysts were concerned that the Fed may consider raising its target federal funds rate based on lower than expected unemployment figures, the FOMC said it doesn’t plan to raise the target federal funds “for a considerable time” after the QE purchases cease, but no specific timeline was given.

Labor Sector News

The Department of Commerce’s Bureau of Labor Statistics posted a national unemployment rate of 6.20 percent for July, which was higher than expectations of a 6.00 percent national unemployment rate and June’s reading of 6.10 percent. To put these readings in perspective, the Fed had established an unemployment rate of 6.50 percent as a benchmark for winding down its asset purchases and potentially raising the target federal funds rate.

Non-farm payrolls reported 209,000 jobs added in July against projections of 235,000 jobs added and June’s reading of 298,000 jobs added. While July’s reading was lower, analysts said that job growth suggests ongoing recovery for labor markets. Labor markets have been cited in recent months as reasons for slower demand for homes and home builder skepticism.

Next week’s scheduled economic news contains no housing-related reports other than Freddie Mac’s mortgage rates report.

The economy and the real estate market are finally on the upswing after the ‘Great Recession’. However, in many locations, the housing market is still slow.

Homeowners who want their houses to sell need to do some homework before putting up that For Sale sign. Here are several tips to help your house sell sooner rather than later.

The Price Is Right

A house priced too high will languish on the market. Before listing your home for sale, make sure the price is appropriate.

Look at the prices of recently sold homes in your neighborhood. Focus on houses of similar size and condition to yours to find the best comparable sales prices.

Also, it may be worth having your home appraised to ensure that the list price is close to the actual market value.

Lean, Mean, Cleaning Machine

Prospective buyers want to see a pristine house. Make your home look perfect, inside and out, before you list it. Stop putting off all those repairs. Replace the cracked window, and fix that leaky faucet!

Curb appeal is a huge selling point. Your yard should be neatly trimmed and completely clean. It’s time to put away the garden gnome. Consider hiring a professional landscaper to make your house stand out from the crowd.

The inside of your house should be spotless. Research home staging or hire a professional stager to prepare your home for listing. At the very least, de-clutter your house and remove all personal items. Prospective buyers want to imagine a house as their home, not yours.

Strike A Pose

Photographs accompanying a MLS listing are typically a buyer’s first introduction to a house. Buyers often dismiss a house based on photographs alone, so make sure that yours are the best quality possible. Hire a professional photographer. Make sure your house is clean and well-staged. More photos are always better than less.

Agents Sell

A good real estate agent is key to selling your house quickly. Find an agent experienced in selling homes in your community and who has a well-organized marketing plan. A good agent will not only give you the above tips, but will also customize them to the demands of your neighborhood.

Pick up the phone today and chat with a real estate agent for more information while weeding the flower bed or de-cluttering the den. Soon enough, you’ll be loading boxes onto a moving van as you journey onto your next adventure.

When you are looking for a new property, you might find yourself booked into looking at 5-6 properties in one day. In these situations, it can be difficult to remember all of the features that each property had.

You will be left wondering which one had the balcony with the great view, or the extra-large closet space in the bedroom.

If you want to be able to look back on the homes you visited and remember their features more easily, it can be very helpful to bring a camera with you to the showing and to take photos of the property.

It can also be helpful when only one partner is able to attend the viewing, so that way they can show the other partner the details of the house. However, could this be considered an invasion of privacy and offensive to the home owners?

Public Or Private Space?

Some homeowners have absolutely no problem with you taking photos of the house when you view it so that you can reference those photos later. However, other home owners really don’t like it when buyers take photos inside the home – because they consider this an invasion of their private space.

If you just bring out your camera and start snapping away, you might make them very uncomfortable.

It Never Hurts To Ask

When you go to a house showing, it is always a good idea to ask whether or not the owner would mind if you take a photo. If they say no, you shouldn’t push them too much or you might make a bad impression – which will decrease your chances of your offer being chosen.

Instead, you can simply make notes on the features of the house so that you can remember later.

Remember, when you are viewing a property it helps to take photos – but make sure that you ask first! If you have any other questions about buying a home, or are looking for real estate advice, contact your trusted real estate professional today.

Most people don’t know whether or not a single missed mortgage payment can have serious consequences for their credit score.

The good news is that there are things that can be done to mitigate the damage and help anyone who has missed a payment repair their credit. What are some options to help homeowners get back in the good graces of their creditors?

Own Up To The Mistake

The best thing to do is to admit that the payment was missed and immediately make amends for it. For the most part, mortgage lenders are sympathetic to the fact that people miss payments for reasons that may be beyond their control.

By calling the lender as soon as it appears that a payment may be late or not forthcoming at all, it is easier to make arrangements to roll that payment back into the mortgage or take other steps to decrease the odds of a negative remark being made on a credit report.

Don’t Let A Single Missed Payment Turn Into Multiple Missed Payments

While a single missed payment can hurt a credit score, it is important to not compound the mistake by missing more payments. In some cases, someone may decide to make up for the late payment before making any further payments.

However, that only makes the mistake worse because a borrower will be considered late on all subsequent payments. It is better to make the most current payment on time and make the late payment the secondary priority.

Hire A Third-Party If Necessary To Negotiate A Loan Modification

It is important to not let emotion get in the way of negotiating a modification to a mortgage. When a borrower hires a credit counselor or a bankruptcy attorney to talk his or her creditors, the negotiations can stay professional and on topic.

In most cases, a lender will be willing to make modifications for those who need them because it is better to get the money from the borrower willingly instead of having to go through a foreclosure proceeding.

While a missed mortgage payment can be bad news for a credit score, it is possible to make amends for the missed payment while minimizing long-term damage to a borrower’s credit score. By owning the mistake, staying current on all future payments and working with a third-party, it may be possible for a lender to forget that the missed payment ever happened.

If you’re thinking of buying a home, you’ve probably been thinking a lot about your credit score as well. Credit scores control so much of what we do in the world of finances, but what does your credit score really have to do with your mortgage? Here are three ways that your credit score could impact your mortgage application.

Your Credit Score Affects Your Ability To Get A Mortgage

The first thing your credit score tells a lender is whether they should lend to you at all. In some cases, if you have a very low credit score, you may not be able to obtain a mortgage at all.

Different lenders will have different criteria for determining safe and unsafe lending situations. Typically, if you have a score below the 600 mark, you’ll have trouble obtaining a mortgage.

If you’re worried about a low credit score, don’t despair – you can still get a mortgage, you just might have to work a little harder to get one. Some lenders will still lend to people with lower credit scores (just make sure you’re approaching legitimate lenders and not mortgage scam artists). Or, if time is on your side, you can work toward building up your credit score so that when it comes time to take out a mortgage, your score will be more appealing to lenders.

Your Credit Score Affects What Types Of Mortgages You Can Obtain

The second thing a lender learns from your credit score is which types of mortgages you qualify for. If a lender sees you as a higher risk, they won’t necessarily be willing to offer you just any old mortgage.

In most cases, if you have a credit score of less than 620, you won’t qualify for a conventional mortgage. In addition, if you have a lower credit score, you may have to make a larger down payment in order to qualify for the type of mortgage you want.

Your Credit Score Affects Your Interest Rate

The final thing that a lender learns from your credit score is what type of interest rate they’re willing to offer you. As a general rule, the higher your credit score, the lower the interest rate.

However, just because you have a high credit score, that doesn’t mean you’ll automatically get a great mortgage rate. There’s more that goes into the price of a mortgage than just the interest rate, so watch out for additional factors like extra fees, mortgage insurance, lock-in periods, and so on.

Your credit score tells a lender a lot about what type of borrower you are. Ultimately, a higher credit score means that you’ll be able to borrow money at a lower interest rate. But if your score is low, don’t worry – there’s a lot you can do to bring up that score before you apply for a mortgage, so don’t throw in the towel just yet!

Last week’s economic news brought several housing-related reports, which indicated varying results in terms of gauging the economic recovery. FHFA reported slower growth of home prices associated with Fannie Mae and Freddie Mac mortgages, but sales of existing homes as reported by the National Association of REALTORS® surpassed expectations and May’s reading. Sales of new homes slumped to their lowest level in three months. Weekly jobless claims were lower than expected and also lower than for the prior week.

FHFA Home Prices Grow at Slower Rate, Existing Home Sales Higher than Expected 

The Federal Housing Finance Agency (FHFA) reported that the average sale price of homes associated with mortgages owned or backed by Fannie Mae and Freddie Mac grew by.40 percent in May with year-over year growth of 5.90 percent. While national home price readings continue to rise, they are doing so at a slower pace since 2013’s rapid appreciation of average home prices.

Sales of previously owned homes reached their highest level in eight months in June. Existing home sales surpassed expectations and May’s reading in June, with sales of pre-owned homes at a seasonally adjusted annual rate of 5.04 million units. Analysts forecasted sales of existing homes at 5.00 million against May’s reading of 4.91 million existing homes sold.

New Home Sales Fall Short in June

New home sales did not achieve the expected volume for June. The reading of 406,000 new homes sold was less than the expected reading of 475,000 new homes sold. Projections were based on the original May reading of 504,000 new homes sold, but this was downwardly revised to 442,000 new homes sold in May. Builders were said to be cautious about over-extending themselves are focused on new home construction in high-demand areas where home prices are higher. Homes are less affordable in such areas, which impacts lower sales volume.

Freddie Mac: Mortgage Rates Steady for 30-year FRM

The average rate for a 30-year fixed rate mortgage was unchanged at 4.13 percent with average discount points also unchanged at 0.60 percent according to Freddie Mac’s weekly survey of mortgage rates. The average rate for a 15-year fixed rate mortgage rose by three basis points to 3.26 percent with discount points higher at 0.60 percent. The average rate for a 5/1 adjustable rate mortgage was two basis points higher at 2.99 percent with discount points ten basis points higher at 0.50 percent.

Weekly Jobless Claims Lowest since 2006

A major consideration for home buyers is stable employment. Recent reports suggest that the labor market is expanding; the Weekly Jobless Claims report continued this trend with a lower than expected reading of 284,000 new jobless claims filed against expectations of 310,000 new claims and the prior week’s reading of 303,000 new jobless claims. Analysts found the declining number of new jobless claims consistent with lower unemployment rates, but cautioned that sustained weekly jobless claims readings lower than 300,000 are more consistent with a national unemployment rate of 5.00 percent or less.

What’s Ahead

This week’s scheduled economic news will add further insight to housing market trends with the release of Pending Home Sales for June and the Case-Shiller Home Price Index report for May. The Bureau of Labor Statistics will also release July’s Non-Farm Payrolls report and National Unemployment report. The Federal Reserve is set to release its customary statement in the aftermath of the Federal Open Market Committee (FOMC) meeting that concludes on Wednesday.

If you are nearing retirement, a reverse mortgage might be right for you. This type of mortgage essentially allows you to turn your home equity into cash. If you find yourself with little money, a reverse mortgage could be the perfect solution, and here’s why.

No Worries About Monthly Payments

After taking on a mortgage, there are many costs that you have to worry about. One of these problems is mortgage insurance premiums. Add interest and fees from lender service providers to the mix, and you’ve got yourself many costs.

All of these fees can create tremendous headaches, as a large chunk of the loan amount goes into covering these costs.

When you undertake a reverse mortgage, you don’t have to worry about any of that. The loan is paid back with home equity, not ongoing cash flow, so monthly payments aren’t a worry.

Your Income Won’t Affect Your Eligibility, And The Income You’ll Get Won’t Create Problems

If the reason you’re hoping to get a reverse mortgage is your low income, the last thing you want is that income to be the deciding factor. With this type of loan, it’s not an issue. That’s because the thing that determines eligibility is your house’s value.

In fact, the income you’ll be getting from this loan is not taxable, which means you’ll be able to keep it in full. Plus, any benefits you get from Medicare will not be affected, and neither will your Social Security.

As such, what you’ll be getting is a loan that doesn’t take into account your current income. Rather, it adds on to it, without creating any issues for you. Plus, you’ll be able to get the money in several different ways, which means you’re in control.

Lastly, the money you get is fully yours. That means that you can use it for anything you want, whether that means you’ll be paying off other loans, or simply funding your day-to-day needs.

You Won’t Be Taken Away From Your Home

Your house is yours because it feels that way. It’s the place in which you’ve invested money and effort. It’s also the place where many loved memories were created, and where they’ll keep on being created.

One of the hardest things for the elderly is being removed from their loved homes and placed into care. They have to leave the place they’ve grown to love. Worse than that, they’re thrown into a world they don’t know.

With a reverse mortgage, this doesn’t need to happen. With this type of loan, you get additional income, and you get to stay in your own house.

Not only that, but you’re also keeping the title to that place until you move, pass away, or reach the end of the loan’s term. Your home will stay yours, both effectively and in the documents.

There are many more reasons why a reverse mortgage is a great idea. However, the fact that you’re in complete control of the income you’ll be getting is one of the most important things.

If you’d like to learn more about reverse mortgages, be sure to contact your mortgage professional.

If you are an entrepreneur or a small business owner, you probably know that there are a lot of advantages to this lifestyle – the freedom, the exciting challenges, the opportunities and the ability to make a living doing what you love.

However, you also know that being a small business owner can make some things more challenging – such as apply for a mortgage for your home.

Many small business owners find it tough to get approved for a mortgage, because their income can be erratic and the banks want to see proof of consistent earnings over a significant period of time.

However, it is possible to qualify for a loan as a small business owner. Here are some important things that you need to know about the process:

Ask Your Mortgage Lender What They Look For

If you ask your mortgage lender, they will probably offer you a checklist for putting together all the information needed in your mortgage package. It should have instructions on what specific documents you need to include if you are self-employed.

Filling Out The Right Forms

When applying for the loan, you will need to fill out IRS Form 4506-T, which is a Request for Transcript of Tax Return. This is basically a form that will allow the lender to look at your tax returns from the IRS, which shows proof of your earnings.

You are not able to show lenders copies of your tax returns – they must get them directly from the IRS themselves.

Submitting A Profit And Loss Statement

It can also help to ask your accountant to prepare a Profit and Loss Statement, which highlights the amount of money that you have brought in – compared to the expenses of setting up your business.

If you present several of these on a quarterly basis, it will prove to the bank that your business is growing and is profitable enough to cover your mortgage.

The important thing to remember is not to give up on the idea of owning a home just because you are a small business owner. Ask your accountant for help and take the time to submit the right proof of earnings, so that you get the mortgage for your dream home.

For more real estate advice, call or email your trusted real estate professional.