Credit scores are crucial little numbers that play a key role in your financial health. With a good credit score, you’ve got many more doors open to you in the financial world, including having an easier time getting approved for home loans with favorable interest rates and terms. But a bad credit score can have the opposite effect.

Unfortunately, about one-third of scorable Americans have bad credit, which can be the result of any number of things. The thing is, conventional mortgage lenders prefer to work with borrowers who have good credit, as they will be less likely to default on their mortgages and leave lenders scrambling to foreclose the property and sell to recoup their investment.

While lenders look at several factors before approving an applicant for a home loan, credit scores play an important role and can be the one thing that can result in a rejected mortgage.

If you’ve got bad credit and are trying to get a mortgage to purchase a home, you might be out of luck with conventional lenders. However, you might be able to get approved for a home loan if you seek out alternatives to traditional mortgage products.

Know Your Score

Before you even start applying for a mortgage, be sure to find out exactly where your credit score stands. You can do this by pulling your credit report from one of the three major credit bureaus: Equifax, Experian, and TransUnion. Once you know what your credit score is, you’ll know where you stand, since your credit score will affect whether or not you can get approved for a home loan as well as what interest rate you’ll be offered.

Conventional loans typically require a credit score of at least 620. Any lower than this will make it much more difficult, if not impossible, for you to get approved for a traditional home loan.

Consider Working With Bad Credit Lenders

There are many alternative lenders who work with clients with bad credit scores. Such lenders place more weight on other factors when they considering home loan approval aside from credit scores, including the following:

• Income
• Type of employment
• Savings
• Down payment amount

If all of the above factors are strong, they may be enough to compensate for your bad credit score and make it easier for alternative lenders to agree to provide you with a mortgage. Your credit might not necessarily be strong, but if your income and savings can make up for it, lenders may be more willing to work with you.

More specifically, a hefty down payment can be the factor that seals the deal for lenders. Not only does a higher down payment amount reduce the amount of money you would have to borrow and lower your loan-to-value ratio (LTV), it also shows lenders that you have the financial strength to afford a mortgage and the payments that come with it. Besides, lenders may even require that down payments are at least 10% to 20% of the purchase price of a home in order to reduce their overall risk.

It should be noted that mortgages from alternative lenders typically come attached with higher interest rates than you would be offered by your bank or other traditional financial institution, especially if your credit score is low. Generally speaking, the lower your credit score, the higher your interest rate because of the inherent risk that lenders are assuming by extending credit to low-credit borrowers.

Look at Home Loans Designed For Borrowers With Bad Credit

If your credit score is less than 620, there are still ways to get approved for a mortgage thanks to loan options designed with bad credit borrowers in mind. A very popular mortgage product among borrowers with bad credit are FHA loans, which can be qualified for with a score as low as 580.

Not only may you be eligible for an FHA loan with a low score, but the down payment requirements are lower than conventional mortgages as well. While a 5% minimum down payment is required for traditional mortgages, FHA loans require as little as 3.5%.

Thanks to the low credit score and the low down payment requirements of FHA loans, these mortgage products tend to be quite popular among first-time homebuyers who may be just starting to build credit and saving for a down payment. These programs also provide the benefit of allowing the entire down payment amount to be gifted from a family member or friend.

The Bottom Line

Just because you have bad credit doesn’t mean you have to kiss your dreams of homeownership goodbye. While the process may certainly be more challenging, getting mortgage approval doesn’t have to be impossible. That said, it’s in your best interests to take steps to improve your credit score.

If time is on your side, take measures to give your score a boost right now so that you’re in a better position to get approved for a mortgage at more favorable rates in the near future. If not, there are still avenues you can take to get a mortgage, despite your bad credit.

There’s always a first time for everything, and that includes buying a house. And with first-time experiences often comes some mistakes made along the way. But given the magnitude of a home purchase, this is one experience you don’t want to mess up.

Here are a few lessons that all first-time homebuyers should learn well before taking the plunge into homeownership.

1. Start Saving Early

Obviously, buying a home is a hugely expensive purchase, so the more money you can come up with to be put towards this transaction, the better. It’s never too early to start saving for a home, even if it’s not something you plan to buy for years to come. If you want to afford a home purchase, you’ll need enough funds to come up with a down payment. And if you’re able to save at least 20% of the purchase price of a home, then you can avoid paying Private Mortgage Insurance (PMI).

Aside from a down payment, there are also a ton of closing costs to cover, so any money you can save early on will come in really handy by the time you’re ready to buy.

2. Get Pre-Approved For a Mortgage

In order to find out how much you can actually afford in a home purchase, it would be wise to visit a mortgage broker to get pre-approved for a home loan. This will help you focus on homes that fall within your price range. Not only will this help you avoid disappointment when you find a house that you love, it will also make you more favorable to sellers, especially if the competition is fierce among buyers.

3. Try Not to Spend Up To Your Approved Maximum

Just because your lender approves you for a specific amount of money does not necessarily mean that you should spend that entire amount. While your lender will take into account your income and debt load, they don’t factor in how much money you spend on other things in your life.

By purchasing a home that’s priced within your upper limit, you could be left with a shortage of funds to be used for other expenses, including your groceries, utilities, entertainment, and retirement savings. To avoid becoming “house poor,” consider spending much less than what you’ve been able to get approved for.

4. Make a List of “Needs” Versus “Wants”

You might have a clear idea of exactly what you want in a home, but are these actual necessities? If you’re on a budget, it may be necessary to compromise when buying a home, as finding a property within your price range that checks off everything on your list might be a challenge.

As such, you’ll need to be realistic about the characteristics on your list compared to what your budget is. Try to keep your “needs” versus “wants” separate, and take this list with you when you visit properties on the market. Pay attention to the types of homes and their traits that fall within your price range, which will help you identify what you’ll be able to find with what you can afford to spend.

5. Don’t Rush Yourself

Buying a home is a big purchase, so you definitely don’t want to rush into anything. There are so many things to consider when shopping for a home, so you’d be well-advised to take your time and look at several homes before making a purchasing decision. Even if you lose out on a home, there will always be another one out there. The last thing you want is to experience the dreaded “buyer’s remorse.”

6. Don’t Leave Out Important Contingencies

Your agent will suggest that you include specific contingencies in your offer, and you’d be well-advised to heed their advice. While some contingencies are not always necessary and can even complicate real estate deals, others are very important. More specifically, financing and home inspections are crucial contingencies that will protect you in case you cannot secure a mortgage or if there’s a problem with the home, respectively.

Unless you’re paying in all-cash or are planning to tear down the home, these contingencies can offer you a means to back out of the deal. And if you’re buying a home in an HOA community, including a contingency that allows you some time to review the HOA’s documents is also important.

7. Be Present at Your Home Inspection

As already mentioned, a home inspection will give you the chance to find out if there is something wrong with the property before you take possession. If there’s an issue that you were not aware of before, you can either request that the seller make the necessary repairs, or at least pay for them. Alternatively, you may also go back to the negotiating table to reduce the price, or even walk away from the deal altogether.

But just because you have a home inspection done does not mean that you shouldn’t be there. By being present, you’ll have the chance to see first-hand what problems may exist. It will also give you the opportunity to ask any questions you may have instead of waiting for the inspection report to come in. You’ll find that this will be a very educational experience.

8. Work With a Seasoned Real Estate Agent

Agents do a lot more than just show buyers a bunch of homes and draft up an offer. There is so much work that’s done behind the scenes, and there are plenty of things that are done after an offer has been accepted.

There’s no reason for buyers not to hire a real estate professional since commissions are typically paid by the seller. Real estate agents will help you find properties that meet your requirements, negotiate to get the lowest price and help you after you take over the title. Before you begin your search for a home, be sure to team up with a professional agent who will keep your best interests in mind at all times and ensure a successful transaction.

The Bottom Line

If you’re new to the homebuying game, you’ll certainly want to team up with a professional real estate agent who can guide you in the right direction and help you avoid making some costly mistakes. Buying real estate can be a complex endeavor, but with a seasoned agent in your corner, you can learn a thing or two and ensure a smooth and seamless transaction.

Buyers look at a lot of things when scoping out homes on the market. But if there’s one room in particular that captures their attention first, it’s the kitchen. In fact, the kitchen can literally make or break a deal.

It’s not uncommon for buyers to make their decision about whether or not to buy a home based on the kitchen. Given the weight of this important room, it warrants plenty of attention when it comes time for you to get your home ready for the market.

If you’re in a bit of hurry to get your home ready for the market and are taking a DIY approach to staging your kitchen, here are a few tips you may want to consider.

1. Deodorize

The kitchen is notorious for bad smells lingering from last night’s dinner or a garbage can that’s festering with food scraps. Before buyers show up, make sure to take the trash out and light a candle to freshen up the scent.

Clean inside cupboards and containers, and pour a little white vinegar down the drain. And whatever you do, do not cook anything that leaves a potent smell to linger, such as fish or dishes with strong-smelling spices.

2. Tidy Up Your Open Shelves

If your kitchen features open shelves, make sure they are tidied up and arranged neatly. Use that open shelving to show potential buyers how useful and pretty they can be, even though they may really be a bit difficult to keep in order at all times.

Don’t overcrowd the shelves, and be sure to leave some open space between items. Only keep out matching sets of dishes or glassware in order to keep things orderly. Displaying your open shelving properly can actually help to visually expand the space, especially if your kitchen is a bit on the small side.

3. Organize Your Cabinets and Pantry

Buyers will open every single door and drawer, and that includes the kitchen cabinets and pantry. As such, you’ll want to be prepared for such snooping by cleaning out and organizing these areas. Toss out whatever is not being used and organize whatever is left according to the category.

Match food storage containers and line up glassware. If there are still things you need to store but they’re not doing much for the aesthetic factor, consider tucking them away in a box and store it out of sight until you find a willing buyer.

4. Clear the Counters

You use your kitchen every day and likely have a few items that you use frequently. But as convenient as it is to have them handy at all times, they do nothing but create clutter on your counter space.

Ideally, the only things that should be left out on your counter are your toaster, coffeemaker, and perhaps your phone. Everything else should be put away. And once you’ve cleared the clutter, be sure to thoroughly polish the counter space, too.

5. Add a Fresh Coat of Paint

When it comes to breathing new life into a room, a fresh coat of paint always works like a charm, and the kitchen is no exception. Painting is one of those projects that bring in the highest ROI compared to the minimal upfront cost to do it.

Add a fresh coat of paint to your kitchen in a neutral tone that also goes with the color palette in the room to make it look newer and more updated.

6. Scrub the Sink and Faucets

Take a closer look at your sink and faucet. Unless you polish them on a daily basis, they likely have some amount of build-up or stains on them. You can improve the overall look of the room by simply giving these components a good scrub-down and polishing them until you see your face shining in them.

7. Clean Your Appliances

While you’re at it, give all of your appliances a good cleaning job, too. If you’re like many other homeowners, your fridge is probably covered in fingerprints and your stove top might have caked-on food on it that you just haven’t gotten around to cleaning off.

And don’t forget to give the inside of your oven a deep cleaning job as well. Dirty appliances can be off-putting, but gleaming appliances can have the opposite effect.

8. Put Out New Towels

Any towels that you may have hanging off your dishwasher, oven or sink should be fresh and free of stains. Add new tea towels. Brand-new towels are an easy, quick, and cost-effective way to add some color and design to a kitchen, especially to neutral kitchens that may be a little on the boring side.

9. Put Out a Bowl of Fresh Fruit and Flowers

A bowl of colorful, ripe fruit on the countertop and a bouquet of fresh flowers on the table can add a splash of color to the kitchen while giving off a waft of sweet smells.

10. Set the Table

Your kitchen table should be neatly set with your best dishware and cutlery. Don’t forget the placemats, napkins, and centerpiece to finish it off.

The Bottom Line

Your kitchen is the hub of your home and deserves much of your attention when you’re prepping your house for the market. If you don’t have the budget nor the time to take on some improvement projects, there are still plenty of ways to spruce up the look of this space to impress buyers.

If you’re planning to sell your home soon, you’ve got a lot of tasks to accomplish. Besides getting yourself a real estate agent and determining what price to list at, you’ll also be faced with prepping your home for the market. Part of getting your home staged and ready to be shown is de-cluttering.

Agents and professional home stagers will always recommend that homeowners thoroughly go through their homes and get rid of any clutter that diminishes the appeal of the home. Certainly, de-cluttering is an important part of home staging, but there are a right and a wrong way to go about it.

When it’s time to tackle the de-cluttering job, be sure you avoid the following blunders:

1. Tackling the Whole House at Once

Trying to deal with the entire house at once can make the job seem overwhelming, which can increase the odds of you throwing in the towel early. Besides, trying to do too much all at once will likely result in a sloppy, haphazard job.

Instead, start by focusing on one room at a time, then break that down even further by working on one space at a time, such as the floor, then the desk, then the closet, and so forth. Not only will this allow you to ensure a better job, it will also allow you to see results much more quickly which can encourage you to keep going.

2. Getting Too Emotionally Attached

It’s highly likely that you will come across artifacts that you haven’t seen in a while, particularly those that you have some emotional tie to. For instance, you might find old photos, or artwork that your children made a few years back, or a gift that a far-off relative gave you. Whatever the item might be, try not to get too emotionally attached. Doing so will just end up allowing the clutter to remain where it was.

Don’t get too sentimental. If you’re having a particularly hard time letting go, set these items aside to be dealt with another time and keep forging ahead. Otherwise, set up a box for you to keep items like these in to be stored out of sight.

3. Putting it Off

Procrastinating is not going to get the job done. At some point, it will have to get done, so you might as well roll up your sleeves and get started right away. Pencil in a date and time to de-clutter and stick to it. This is especially important if there is quite a bit of clutter to deal with, in which case you’ll need more time to get it done. Plus, starting early can allow you to do a little at a time so you’re not rushing to beat the clock at the last minute.

4. Forgetting to Label

If you are planning to store boxes of your belongings or are simply getting your things ready for the big move, don’t forget to label these boxes accordingly.

It’s one thing to put things away and out of sight, but how will you know what is in each box when you move them to your new home? Having your boxes labeled properly will not only help you find things much easier, it will also help you identify where each box should be placed once you move into your new house.

5. Starting Without a Plan

De-cluttering might not sound like there’s much planning involved. Just trash what you don’t want and throw the rest into another pile, right? The thing is, you’ll be more likely to wind up just moving your clutter from one spot to another with no real progress being made without a plan in place.

Instead, you should go into the de-cluttering process with a strategy, which includes having more boxes available than simply those for storage or garbage. In addition to these two, you’ll also want to have boxes that are for donations, for keeps, or for “I’m not too sure yet.” This will help you stay much more organized when you’re deciding what to do with the things you come across.

6. Trying to Be Perfect

While your goal should certainly be to eliminate all clutter and attempt to get your home in showing condition, it shouldn’t be to strive for perfection. Trying to achieve perfection will only set you up for disappointment, so don’t try to outdo the impeccably organized closets you might see in home decor magazines. As long as you have a plan for de-cluttering and stick with it, the end result will be enough.

7. Doing it All By Yourself

De-cluttering an entire house will be a big job, especially if you’ve got a lot of stuff and your home is ample in size. Don’t be afraid to ask for help, even if it’s just for a couple of hours here and there. Odds are it will take a lot of time and effort to de-clutter from top to bottom, so the more people you can bring in to help, the better. Just make sure to extend your appreciation by keeping drinks and snacks on hand.

The Bottom Line

De-cluttering isn’t exactly an enjoyable job, but if your home is buried in stuff, it’s a job that will definitely need to get done before your home hits the market. But if you avoid all of these mistakes and go in with a solid plan in place, you should end up with a home that buyers will be impressed with.

Moving is a huge endeavor. Just think about your life’s worth of belongings having to be carted from one house to another, and depending on how far you’re moving or how much stuff you’ve accumulated over the years, the job can be an even bigger one.

But before you make the big move, there’s a lot of preparation that needs to go into it. You can’t just call a mover and throw all of your stuff in the back of the truck and hope for the best. A streamlined, stress-free move is what you are aiming for, but you’re not going to get that if you’re not properly prepared before moving day.

If you want things to be as hassle-free as possible when it’s finally time to say goodbye to your old home and hello to your new abode, there are a few things you should do first, including the following.

1. Give the House a Good Scrub-Down

Sellers should typically leave their old homes in “broom-swept” condition, but it’s likely that more cleaning will be required. Even if there are no dust bunnies left behind, you’ll still probably want to mop the floors, clean the bathrooms, wipe down the sinks, clean inside the kitchen cabinets, and polish any other surfaces before you move in.

Cleaning without any furniture and accessories around is much easier. If this isn’t the type of job that excites you, hire a cleaning crew to get your home spic and span before you show up with all of your belongings.

2. Clean the Ducts

You never know when the ducts in the house were last cleaned, and a lot of dust and debris can accumulate in these hidden areas over time, which will wind up circulating all over the home. In order to ensure good air quality in your new home, hire a duct cleaning company to clean your air ducts before you spend your first night there.

3. Tackle Repairs

It’s much easier to make any necessary improvements to your new home when it’s empty as opposed to when it’s been filled to the brim with your things. Any changes that need to be done to the place should ideally be done before you settle in. Whether you’re painting the walls, installing new light fixtures, or getting rid of that unsightly popcorn ceiling, such work can make a mess. Before you haul all of your stuff in, make sure to tackle any updates or repairs beforehand.

4. Call the Utility Company

The sellers of the home you just bought obviously had electricity and running water, but they’re not going to continue paying those bills just so you can have these modern-day perks. Instead, you’ll have to call the utility company yourself and set up your electricity, gas, and water in your own name.

While you’re at it, you’ll also want to set up cable, internet, home phone, and anything else that you need to operate your home and make it comfortable.

5. Establish a Blueprint of How You’ll Arrange Your Furniture

If you already have furniture that you’ll be moving from your old home, try to come up with a layout of how you’ll arrange it in your new place. It would be a lot easier to have the movers set the furniture down in the exact spot that you want it in rather than have to shuffle it around after the fact.

6. Change the Locks

On closing day, you’ll be given a set of keys to your new home. However, there’s always a chance that another set might still exist. Rather than taking the chance of having keys to your house in someone else’s hands, consider changing the locks before you move in for added security.

7. Change the Alarm Code

If there is already an alarm system installed in the home and you will be keeping the same monitoring company, change the codes and put the account in your name.

8. Book Your Movers

Unless you’re renting a big truck and moving all your stuff on your own, you’ll want to book a moving company well in advance of moving day. These professionals book up quickly, so if you want to make sure you have some help the day you need it, you’d be well-advised to pencil in a date and time with your moving company of choice.

The Bottom Line

There’s definitely a lot of work to be done before the big day. Moving is already a labor-intensive project, but the steps that you take beforehand can make the process a lot easier and more streamlined. Don’t skimp on the pre-moving day preparations in order to keep things more simplified when it’s finally time to move into your new home.