What the New Credit Score Models Mean for Homebuyers

Starting in 2025, new credit scoring models will be used by lenders to determine the creditworthiness of potential homebuyers. Fannie Mae and Freddie Mac will mandate the adoption of the new FICO Score 10T and VantageScore 4.0 by the end of the year. For those interested in buying a home, these changes will impact their ability to purchase. The good news is that these scores aim to be more inclusive and to show a fuller picture than the old classic FICO scores did. 

These new scores have been noted to have better accuracy, and consider alternative credit data, as well as traditionally reported credit cards and car payments. For example, VantageScore 4.0 allows borrowers to add on-time payments for rent, utilities, and telecom bills. For those with limited debt or who prefer to use cash, this is a big advantage when seeking credit. 

The introduction of these new credit scoring models offers more opportunity and accessibility to credit for more individuals. This is particularly true for those with limited credit history or strong alternative credit data. Additionally, the VantageScore 4.0 only requires one month of credit history to generate a score, while FICO 10T still requires at least six months. 

Overall, the launch of these credit scores is a significant step towards hopefully allowing access to homeownership to more Americans. By considering alternative credit, these scores may provide lenders a truer picture of the ability of a potential homebuyer to pay their loan and extend credit to those previously unable to qualify.  

Enhance Your Home with a Health and Wellness Room

 Creating a health and wellness room in your home can be a positive step in prioritizing your well-being and fitness. A step beyond just room for an exercise bike, this room should include areas for reflection and calm. A place where you remove distractions and can focus on yourself. 

Any spare space can be transformed into a health and wellness room. A spare bedroom, converted garage, or loft are great options. The room should have plenty of natural light and be located away from high-traffic areas. 

Design the layout of your wellness room by functionality. Have an exercise area where you can place treadmills or weights. Add area rugs or yoga mats for floor exercises and meditation. Choose soothing colors for the room. A soft sage green or subtle sky blues add a soothing yet energizing ambiance. 

If space permits, add a comfortable chair where you can relax after a workout or when you need a break from your busy day. Use minimal décor and use natural materials as treatments. Add plants to incorporate the sense of nature and add curtains that allow light to filter in. 

Finally, invest in technology. A screen that allows you to watch movies or a fitness routine during high-intensity workouts can help you power through hard workouts. Meanwhile, a sound system that can play spa music or brown noise during meditation can help center your thoughts for a calming experience. 

By creating a dedicated health and wellness room in your home, you will find it easier to find time to focus on yourself. Creating a room that you love being in, is the best way to ensure you prioritize your health and incorporate these routines into your lifestyle.

What to Expect From a Listing Agent

 

You already know that the best way to sell your home, and for the most profit, is to hire a listing agent. The fact is that people who sell using a real estate agent make more profit and have a smoother transaction than those who try to do it themselves. Yet often consumers don’t know everything the listing agent does. Listing a home properly entails so much more than putting a lockbox on the front door and slapping a sign in the yard. 

The listing agent is your advocate and partner in the selling process. They help guide you through the transaction, negotiate on your behalf, and work with the buyers’ agents to get you the best deal possible. A good listing agent will provide you with regular updates and input from showings. The most important thing is to discuss and set expectations at the beginning. 

Some sellers ask that their agent attend all showings. This is typical with luxury properties, for example. But often they do most of their work behind the scenes, encouraging offers, negotiating counter offers, working with lenders and appraisers, handling loose ends and hiccups. 

Once in a while, things don’t go well. The partnership becomes difficult or impossible. Since almost all listings involve a reasonable time limit, you may feel trapped or hopeless that there is a solution. In this case, you do have options. First, if your agent works for a brokerage, call the managing broker who can mediate, or if necessary, reassign your listing if needed. 

Your agent is your partner. Be honest and open with your needs and expectations. In this way, you can work together to sell your home quickly and for the best price and terms possible.

Change the Feel of Your Room for $500 or Less Using Rugs

 Everyone is looking for easy ways to spruce up their home. As spring approaches, those warm, cozy rooms that were so inviting in the cold can look cluttered and dark. If redecorating every season isn’t in your budget – and how many people can – then consider adding or changing a rug or two for big impact and often less than $500. 

Rugs have the ability to transform the look and feel of a room, adding interest, style, and personality. These decorative elements can be easily changed, stored, or removed as the season or mood determines. Imagine a bright blue area rug in the kids’ room or a soft-toned Kilim added to the family room. Experiment with color, size, and texture which can change the atmosphere of the space in a few short minutes. 

Rugs can also change the feel of the room by defining different areas. Modern floor plans boast big open spaces, so adding a rug under the sofa can distinguish it from the dining area, as an example. Different colors and patterns will affect the energy of the room as well. Bedrooms would benefit from the calming tone-on-tone of a neutral hue while a busy kitchen might be enhanced with a pop of bright yellow or red near the sink. 

Big box home stores and local marketplaces are filled with rugs of all sizes and colors. Even the larger area rugs can cost less than $500. Changing or adding a rug is a great way to change the look and feel of any room, updating or elevating the atmosphere and sense of home.

Selling Due to Divorce?

 Selling a home in the best of situations can be stressful; adding in a divorce and selling a home can seem impossible. It’s an emotional time for the whole family and this can cause you to make the wrong decisions in the sales process. In addition to finding the right real estate agent, who understands and can help guide you, here are a few tips for navigating this difficult process.

 Agree on Clear Objectives:

 Before listing your home, sit down with your partner and define the goals of the sale. Do you want to move quickly? Are you willing to wait to maximize profits? Create a timeline with benchmarks and decision points together and understand how and when to reevaluate the goals. 

Open Communication: 

Divorce involves complex emotions and selling the family home can certainly add to the stress. Determine ahead of time how, and how often, you will communicate regarding the progress of the sale. If amicable, you may be able to discuss the details together, if not, consider using a mediator to help. 

Set Realistic Expectations:

 Discuss with your agent the expectations for listing, price, showings, open houses, etc. If one party is still living in the home, it can be especially disruptive to show the home on short notice. Both parties must agree to the parameters, to avoid conflict. Selling a home during a divorce can be particularly difficult. By working with your agent and your partner, you can minimize the emotional turmoil by planning.

Weekend Projects That Will Change the Feel of Any Dining Room

 Winter is here, and with it comes cozy evenings and comfort food. Your weekend plans are more likely to include movies on the couch than a picnic in the park. This is the time of year when everyone takes a closer look at their home and looks for ways to add warmth to the spaces. 

If your meal plans include mac and cheese or hearty soups, these 5 tips can transform your dining room quickly – adding the ambiance these meals require. 

1. Add a Library – Add intellectual charm by lining a wall with bookshelves. Consider exchanging some chairs for a backed bench and create a multi-use room for dining and relaxing. 

2. Wood Side Table – Adding wood accents to any room is a great way to add warmth to the look. Adding or replacing your side table with a warm wood cabinet incorporates natural beauty to your dining room while adding extra storage space. 

3. Woven Back Chairs – Over the past few years, natural elements have made a comeback. Replacing tired upholstered chairs with wood or woven chairs adds interest and charm. 

4. Chandelier – Adding a large-scale chandelier brings the eye up and into the warm glow of the light. A chandelier centers the space, creating intimacy and ambiance. 

5. Candles – Simple taper candles on a cold evening change the mood of the room. The soft light of the candles invites family and guests to slow down and relax with some great food.

These are simple changes that will dramatically change the look and feel of any dining room. Warm up your dining rooms during these cold dark months with a few simple changes.

Navigating the Real Estate Market: How a Buyer's Agent Can Be a Helpful Guide

The real estate market is ever-evolving, and the past year has been no exception. With so many stories and reports, it's understandable if you find yourself feeling uncertain about buying a home. Questions like "Is now a good time to buy?", "What will happen to housing prices?", and "How will interest rates behave?" are common and quite valid. 

Deciding to buy a home involves numerous considerations, such as: 

● Determining your budget. 

● Deciding on your preferred location. 

● Assessing if a particular home suits you, your family, and your lifestyle. 

● Considering whether to make an offer. 

● Evaluating the home inspection results. 

● Reviewing the final loan terms and payments. 

These are just a few aspects of the home-buying process, and it's a journey you don't have to embark on alone. Engaging a buyer’s agent can be a beneficial step. A buyer’s agent aims to guide you through the buying process, addressing your questions, negotiating on your behalf, and discussing various options and decisions with you. 

While the current market might seem daunting, having a professional buyer’s agent by your side can provide support and insight, potentially making the process more manageable and less overwhelming.