4 Ways to Increase Your Credit Score

Whether you're looking to buy or rent, your credit score is a really important factor for everyone!  Most people can't buy houses or cars with cash.  Everyone has debt.  Our credit scores are calculated based on many criteria and can vary between financial institutions.  But they basically are giving you a rating as to how likely you are to pay your debts.  The higher the score, the more likely you are to pay your debts back and on time.  The lower the score, the higher the risk you are for a financial institution to lend to you.

Here are 4 things you can do to increase your credit score right now:

1- Watch Your Credit Card Balances:  1 Major factor in credit score is how much revolving credit you have vs. how much you use.  The smaller the percent the better for your score.  So try to increase your debt limits but use less.

2-  Eliminate Balances:  This is especially important for small balances on multiple cards.  It's better to have 1 or 2 'go to' cards to use for everything.  Pay off your debt instead of moving it around from card to card.

3-  Leave Old Debt On Your Report:  Good debt that is handled well and paid off, like a house or car, is good for your debt and credit score.  Some people erroneously try to get debt removed from their report, which they can do after 7 years.  But you want to show a longer history of debt, and debt that has been managed well shows you are reliable.  So leave good debt on there.

4-  Pay Bills On Time:  This seems simple but 1 of the biggest thins you can do to have a good credit score is simply pay on time month after month.  Helpful Tip:  Setup Auto-pay so you don't forget or have to remember, put reminders in your calendar to help you be on time, pre-pay things if you can.

It's really helpful to talk to a good lender when you are first considering buying a home.  They can help you identify your credit score and if it's too low, they can help create a plan to increase your score and know how long that will usually take.  They can also get you a pre-qual letter that lets everyone know you are really qualified to make an offer on a home.  This pre-qual will also help us identify what price range of home we should be searching in.  I'd love to help you talk to a qualified mortgage lender.  Just let me know.

Down Payment for an Investment Property

So you are thinking about an investment property but want to know how much you really need to get it started, here's the scoop:

*On a conventional loan, you can put down as little as 5-10% for a down payment.
*If you are taking out an additional loan and/or it's for an investment property, the minimum amount you need for a down payment is 15%.  At 15% you will have to pay extra fees and PMI. With 20% down, you get a lower rate and no PMI.  This is really your minimum needed.  If you put 25% down, you can get even better interest rates and deals on your loan.

The average home price in AZ is $250,000.  This means you need at least $50,000 for your down payment to get you going on your investment property.

Now, where can you find $50,000.  Here's some ideas...

*Save It
*Cash out Stock Options or Stock Investments
*Use your Bonus, or several Bonuses
*Refinance Your Current Home, and Pull the Money out of That
*Get a Line of Credit on Your Current Home
*Use Equity from a Rental Property You Already Own  (Once you get started it gets easier to get more investments going)
*Get Gifted Funds From Family (ie. inheritance)
*Sell Collateral (Motorcycle, RV, Camper, etc. that you no longer use)
*Go In on the Project With Family or Friends, then You'll Need to Bring Less Money To the Table

Let me know if you have more questions about getting started with an investment property.

Master Bathroom- Before and After

While we loved the size of our Master Bathroom, we knew that the baby blue paint, look-alike marble tile and black accents and granite counters weren't the airy, bright, more sophisticated look we were going for.  The space is the same layout but feels much larger.  We ripped out the built in raised tub and added a stand alone tub with mini chandelier.  We took out the dated stain-glass window and did a rain window (so it's not see through) and made it much bigger.  The light is so bright in there during certain months, we also got black-out roman shades made to fit the huge window.  But I love all the natural light!  We opted for real marble stone through out and chose Calacatta Gold in honed.  I loved it because it not only had the grey and white colors we love, but also veins of cream, tan, and gold all mixed throughout.  This really helps tie in the beachy creamy colors happening in the master bedroom and throughout the house.  We opted with a more creamy paint color for the walls  (Fine Grain, by BM), with white ceiling to pull that cream color in.  

After.

Before in Blue, After in Cream.  Same view.

Updated lighting, larger window, tub, and did the marble tub surround.  We used smaller rectangle pieces subway style, then pencil liner on both sides of small square accents near the top.  We used large rectangle pieces of marble for the shower and main floor, with herringbone accents for the shower floor, and by the sinks.

Before.

After.  I love the herringbone accents in the floor, and the stone baseboards.

Before in Black and White.

After in creams.  We chose a quartz countertop (Dreamy Marfil) in cream to help pull out more of the creamy tones in the marble and did matching marble backsplash around the top.  We went with an off-white cabinet with custom mirrors, and cabinets in the middle.  We love all the storage and added outlets in the cabinets for plugging in toothbrushes and curling irons, etc.  New Kohler sinks, new lighting, and brushed nickel hardware finished off the space.

We love the results.  It feels so warm and inviting but also very elegant and simple.   

Home Inspections are for Everyone

Photo By: Robert Peterson; Rustic White Photography

You have 8-12 days (depending on State and negotiations) to inspect the home you're buying or have your home inspected to sell after going under contract.Here's how to make it count.

Home Inspections for Buyers:  Your home inspections are critical.  First decide what inspections you need.  Besides a full home inspection, do you want a sewer scope, pool inspection, a separate roof inspection?  Make sure it's a licensed home inspector that's going to be checking out the entire house (not just electric and plumbing).  Make sure your inspector is going to provide you with an extensive report, including photos, as soon as they can after the appointment.  Go through all of the disclosures before the inspection and let the inspector know if there was any reported damage or issues to the house so he can dig extra deep in those areas and make sure all necessary repairs were actually made.  Get going on your inspections as soon as you can so you have enough time to get your repair list together and respond in a timely fashion.  

Home Inspections for Sellers:  Home inspections range from $250-$450 in Arizona, depending on sq. ft.  It can be a great tool for sellers to get a home inspection done before listing your home.  This will give you a full list of anything/everything you may want to fix prior to listing your house.  If you want to get top dollar for your home and are listed in an upper-end price range, this can be an especially great tool for you.  If your buyer comes through and does their inspections and finds a long list of repairs or issues with the house, they will definitely be asking you to fix a lot of things, or ask for credit at close.  They always want licensed sub-contractors working on it, will want to track all your receipts, etc.  The process becomes a lot more work for you, all while you're trying to pack up your house and get moved.  You can avoid the hassle, by knowing and fixing what you plan to fix in advance.  You can be upfront and address any issues you don't plan to fix as well.  Disclosure is everything.  

Top 10 Home Improvements with the Best Return on Investment

Photo Cred:  Houzz- Designer JDP Interiors, Miller Drive Project

When it comes to increasing your home value, updating and remodeling your house can be one of your best return on investments.  But not all home investments are created equal.  It's important for home owners to know which updates/upgrades are going to yield you an increase in value and which won't.  This doesn't mean you can't do whatever upgrades you want.  It just means that you are doing it for yourself and your own enjoyment and you understand that when you go to sell that you won't be seeing a dollar for dollar return.

According to an extensive HGTV study and research, here are the top 10 home updates that will yield you the greatest return on your investment.

#1- Minor Bathroom Remodel:  Average Return at Resale- 102%

It costs about $10,500 to replace the tub, flooring, tile surround, sink, toilet, vanity and light fixtures.  You'll get back an average of $10,700 at resale.

#2- Landscaping:  Average Return at Resale- 100%

The average homeowner spends about $3,502 for landscaping and $1,465 on a designer.  Quick Tip:  Cut back overgrown shrubbery and trees.  Install flowering foundation plants and mix heights and colors for a more dramatic effect.  Add a small splash of color at the front door.

#3- Minor Kitchen Remodel:  Average Return at Resale- 98.5%

A minor kitchen remodel averages around $14,900 and can be completed when your kitchen needs a cosmetic update and not a different floor plan.  Quick Tip:  If your home is worth more than $500,000 install stone or upgraded countertops, new cabinets, lighting, flooring, sink and appliances.

#4- Exterior Improvements:  Average Return at Resale- 95.5%

Quick Tip:  The average national cost to replace 1,250 sq. ft. of vinyl siding is $7,239.  A gallon of paint covers 400 sq. ft. of house.  Fro an updated look, remove old awnings from the doors and windows, swap out damaged wrought iron railings and add a pergola or columns to give your porch a charming makeover.

Photo Cred:  Houzz, Designer Spazio LA, Santa Monica Garage Conversion

#5- Attic Bedroom Conversion:  Average return at resale- 93.5%

The average attic bedroom costs $39,188 and has the best recoup rate in the west at 105%.  That price includes a 15x15 ft bedroom, a 5x7 bath with shower a 15 ft dormer, four windows and closet.

#6- Major Bathroom Remodel:  Average Return at Resale- 93.2%

A major bathroom remodel involves expanding an existing 5x7 ft. bathroom, relocation and replacing the tub and toilet and adding designer sinks, faucets, a linen closet, lighting, a ceramic tile floor and exhaust fan for a cost of $26,052.  Quick Tip:  Start at the bottom. Replace old floors and purchase extra flooring for future repairs.

#7- Major Kitchen Remodel:  Average Return at Resale- 91%

A complete kitchen remodel in a midrange home averages about $50,000 and would include updating cabinets, adding kitchen island, new countertops, new sink, wall oven, cook top, flooring and appliances.  Quick Tip:  Kitchens look bigger with less stuff in it.  Try removing overhead cabinets.  Stick with neutrals for walls and window treatments.

#8- Deck, Patio or Porch Additions:  Average Return at Resale- 90.3%

Adding a 16x20 ft. wood deck will cost about $11,000.  In the west, outdoor additions recoup nearly 100% of their value.  Quick Tip:  Adding decorative planters on the front porch and patio increase curb appeal and make the space inviting.  Use bold plantings to distract from flaws or to emphasize key features.

#9- Basement Remodel:  Average Return at Resale- $90.1%

An average basement remodel costs around $50,000 and covers about 20x30 ft. of entertaining space, including a bathroom and recess lighting.

#10- Replacement Windows:  Average Return at Resale- 89.6%

Replacing 10 3x5 ft. windows runs approx $9,700.  In hot climates, make sure you get low-e glass that reflects heat.