LGI Homes

If you’re a first-time homebuyer with minor credit issues, take a moment to try these steps for boosting your score prior to applying for a mortgage loan.

So you’re ready to take the plunge into home ownership and you’re itching to get out and start exploring in search of the home of your dreams. But what happens when your credit score isn’t quite as ready for buying a home as your mind is? Poor credit could easily make finding a mortgage lender difficult, or could result in higher interest rates and all-around worse deals than a good credit score would provide. If you’re planning on buying your first home in the near future, follow these tips to help raise your credit score and build a well-rounded credit history that will make lenders want to loan you the money for your mortgage.

Some studies have estimated that as many as 25% of all credit reports contain inaccurate information. Even the smallest error could be the difference between getting a mortgage at a great rate or no mortgage at all. Once you’ve decided to buy a home, pull your full credit report and go over it thoroughly to make sure all of the information listed is correct. If you find errors, dispute them through the credit bureau that reported it.

The best and easiest way to build up your credit score is to pay all of your bills on time and in full every month. Paying them early looks even better. With each payment you make, your score will grow and your overall debt will shrink.

If you’ve had any past overdue accounts go into collections or have had a lender obtain a lien or judgment against you, you’ll want to have them all paid off entirely before you start looking for a mortgage lender. While lenders will still be able to see that you had judgments, collections and liens against you for up to seven years, having these paid off looks better than having them outstanding on your credit report.

While your credit card might have a $10,000 maximum balance, having it maxed out looks bad to potential lenders and doesn’t look good on your credit history. Some lenders may consider multiple maxed out balances to be a sign of irresponsibility on your part. Try to keep all of your balances at 30% of the maximum. If that’s not possible, aim for less than 50%.

Even if you haven’t used that department store credit card and years and you finished paying it off ages ago, don’t go rushing to close the account. All accounts on your credit report can be beneficial toward your score, even those with a zero balance. Let all of your accounts continue to accumulate even after you’ve paid them off. The longer you’ve had the account in good standing, the more it will help.

Having several credit cards is a great way to start building credit, but it’s not good at demonstrating that you can be responsible for managing multiple forms of credit. The more diverse your credit, the better. Credit cards, auto payments, student loans and other forms of loans that are all in good standing on your report shows you know how to use multiple types of credit and can handle multiple responsibilities at once.

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Whether you’ve recently moved into the home of your dreams or you’re long settled in but looking to give your space a makeover, the Internet is a priceless resource when it comes to home decorating ideas. With these online resources, you’ll find countless tips, tricks and looks to get your creative juices flowing and inspire you to revamp any room in your home.

Pinterest is one of the best online resources for finding pictures of different types and styles of home decor.

Best described as a virtual bulletin board, Pinterest is a fast growing site that allows users to search for ideas from around the internet and “pin” them into easily organizable folders. You can easily search through Pinterest to find ideas pinned by other users. Pinterest is particularly well known for home decorating ideas pinned by users, and is probably one of the best online resources you will find. It’s great for discovering hot trends and color schemes, as well as do-it-yourself décor projects and vintage inspiration. Not only will you find excellent permanent decorating ideas on Pinterest, you will also find unique party and event decorations to spruce up your home for birthday parties, holidays and neighborhood get-togethers.

Real Simple is an online lifestyle magazine that has tons of useful home décor articles – and new ones are added daily. Whether you’re looking for the perfect color for your dining room accent wall or inexpensive ways to organize your laundry room, you’ll find dozens of ideas to jump start your imagination and inspire you to give your home a makeover. Real Simple is also great for finding links to online décor shops, where you can often purchase unique decorative items for cheaper than you can usually find in stores.

There are literally thousands of home décor blogs floating around the Internet, all run by everyday Joes and Janes just like you. Blogs offer a unique experience over online magazines and websites, because they include a more personal element and frequently feature peaks into peoples’ lives. Blogs can be excellent for finding ideas, because you can find a writer who shares similar taste in décor to you rather easily. Some well-known décor blogs include The Inspired Room, House of Smiths, Young House Love, and The Lettered Cottage.

Houzz is an up-and-coming website that allows you to build a virtual idea book for every room in your house. You can browse other peoples’ idea books by room, read helpful articles relevant to home decorating and remodeling, find professionals and connect with other décor enthusiasts through the site’s message boards.

Just like their traditional magazine, Better Homes and Gardens’ website is stocked full of fabulous and fun ideas that will transform your home. Typically, the articles and ideas on the website are completely different from the ones featured in the magazine, and unlike the magazine – which is issued monthly – the Better Homes and Gardens website is updated daily. In addition to decorating ideas, you’ll also find excellent recipes, entertaining tips and other lifestyle advice.

It’s quite possible that Martha Stewart is the best known home decorator in the history of home decorating, and her empire has expanded to the Internet with her Martha Stewart website. Much like the Better Homes and Gardens site, you’ll find thousands of decorating ideas for any occasion, as well as other helpful lifestyle articles.

If you’re a homeowner, you’re eligible to have equity in your home, but first you must pay down the principle owed on you mortgage or allow your property value to increase.

The purchase of a new home requires learning all about various aspects of homeownership (financial, legal, and practical) that can be overwhelming to a first-time homebuyer and homeowner. As part of our ongoing All About series, LGI Homes seeks to provide an easy-to-read and easy-to-understand resource that goes in-depth on a variety of subjects connected to buying a home. Today, we explore the world of property equity and how it will play into your experience of buying and owning a home.

What is equity?

Equity is best described as being the financial interest or cash value of your house, minus the current balance on your home loan.

Who builds equity?

Anyone who owns their home builds equity. Equity is not built by those who rent.

How do I build equity?

Simply by paying your mortgage on time and in full every month! Each month that you pay your mortgage, that payment goes toward your equity. The closer you get to paying off your mortgage, the more equity you have.

How does equity benefit me if I move?

Equity is most beneficial when you decide to sell your house. At this time, the current value of your home is weighed against how much equity you have in the home and how much money you still owe on the house to calculate how much profit you stand to make. The more equity, the more profit. For example, imagine you purchased your home for $100,000, you have $25,000 in equity and the current value of your home is $200,000. You’ll sell the home for $200,000, use part of the sale to pay off the remaining $75,000 on your mortgage and walk away with $125,000 in profit from the sale.

How does equity benefit me if I don’t sell my house?

If selling your house isn’t in the cards for you, equity can still be beneficial. Banks will let you borrow against your equity to take out a secondary loan to use as you wish. So, if you have $25,000 in equity and want to use that $25,000 to pay for your child’s college tuition, you can borrow it from the bank, but your equity will return to $0. You will begin building equity again each month you pay your mortgage. While this doesn’t necessarily save you any money, it is easier than taking out a separate loan and is an option if you know you plan on staying put in your current house long-term.

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Spring time is a great opportunity to gather your neighbors and do a bit of cleaning up and organizing around your community.

Spring is fast approaching, and with its arrival each year, countless people find themselves itching to throw out the old and bring in some new. Spring cleaning is an annual tradition across the world, and is a great time to clear out the clutter inside your home and show your lawn a little extra TLC after a long winter of neglect. Since virtually all things are more fun when you do them in groups, why not consider gathering your neighbors together to partake in a little bit of spring cleaning as a community? These tips will give you ideas for different ways you and your neighbors can clean out your homes, clear your yards and spruce up your neighborhood this season.

Host a Swap

If you’re looking to get rid of various odds and ends in your home but are also in need of some new things, call up your neighbors and see if they’re interested in hosting a community swap meet. Decide whose yard or driveway to use and pick a date for the swap to take place. Hand out fliers for a few weeks leading up to the event and invite everyone to bring any items they feel like getting rid of – so long as they’re in good shape, that is. Instead of charging money as you would at a garage sale, make it more about trading items. Let everyone who brings items what they wish from items others have brought. At the end of the swap, you can always donate leftover items to a charity shop, which leads us to our next tip.

Gather Charity Donations

Many thrift stores work directly with various charities and donate a portion of their proceeds to a good cause. If you’re looking to get rid of old items or you have leftovers from a swap meet, consider donating them to your local charity shop. To host a community donation, enlist a few neighbors with trucks to assist everyone else to donate their unwanted wares. Have everyone bring their donations at a designated time and place, and then have all who are donating help load the trucks with their drop-offs. The trucks can then run the donations to the charity shop of your choice.

Make it a Team Effort

Spring cleaning isn’t just about the way the inside of your house looks, it’s also about the condition of the roads, sidewalks and parks around your community. If you’ve noticed trash laying around your neighborhood throughout the winter, spring is the perfect time to pick it up. Gather a few neighbors together to patrol the neighborhood and pick up any garbage you find.

Put the Teens to Work

Spring often goes by in a flash, and before you know it, the kids are on summer vacation from school. To help teens in your neighborhood out with a little bit of extra spending cash for the season, rally your neighbors together to put the teens to work. From mowing lawns that are quickly overgrowing to clearing out gutters and pulling weeds, you’ll find no shortage of lawn work that the teens can complete as part of your spring cleaning endeavor. They’ll enjoy having extra money to spend on days with friends, and you’ll enjoy having more time to relax without having to worry about giving your lawn a post-winter extreme makeover.

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Two common homebuying scams that first-time homebuyers should be aware of are (i) credit cleanup and (ii) unlicensed lenders.

As a first-time home buyer, it can be confusing navigating the world of real estate and figuring out which deals to take advantage of and which ones to pass on. Unfortunately, con artists are more than happy to take advantage of the naivete of first-time buyers, and countless home buying scams have popped up in recent years. Knowing about common scams will ensure you don’t fall victim yourself while shopping for your first home.

Credit Cleanup Offers

Because your credit history determines how much you qualify for on a mortgage, you may be tempted to use the services of a company offering to help you cleanup your credit before you apply for a loan. Be wary of such offers, as many of them are scams that can easily run you into even more debt. That saying “if it seems too good to be true, it is” certainly applies to many credit repair companies, who promise that they will clean up your credit so you qualify for a home loan – for a fee, of course. It’s virtually impossible for these companies to do anything to change your current credit, and countless Americans have fallen victim to these scams, sometimes finding themselves thousands of dollars in debt at the end. Instead, focus on paying all of your current bills in full and on time every month to build your credit, or get a secured credit card to use to pay your bills so you build credit in two places. It may take a few months longer to get your credit into top shape, but it will ensure you don’t spend money on a company that can’t deliver.

Unlicensed Lenders

As you’re shopping for a lender for a mortgage, you may stumble across a lender who looks great on paper, but a few months down the line, you realize you made a mistake. Typically found on the internet and conducting all of their business electronically, unlicensed lenders are usually located out of state or even out of country, making it virtually impossible for your local government to track them down in the event you get burned. Victims of unlicensed lenders have found that the companies simply take their money and fail to apply it to the principle balance of their loans, driving them into debt. To prevent this from happening to you, check with the Division of Financial Institutions in your area to verify that any lender you consider borrowing from is licensed, as well as their rating through the Better Business Bureau.

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Moving can be an exciting – though stressful – experience, and moving with pets presents many unique challenges. Here at LGI Homes, we understand that pets are important members in our residents’ families, and we look forward to your four-legged friends presence in our communities. These tips will help minimize the stress moving can cause on your animal companions and ensure they arrive safely at your new home.

Moving with pets can be a daunting task; however, with a few handy tips, you can make the move a much easier process.

#1 Minimize Their Pre-Move Stress – Unlike humans, your four-legged friends are incapable of processing what is going on while you’re moving. While you and your family view the experience as a new chapter in your lives, your pets likely just see themselves being uprooted from a place of comfort and thrust into a strange new environment. Even the process of packing and preparing can stress your companions, as they don’t understand why their favorite toys and blankets are being taken from them as you pack, and they don’t know that they will soon be reunited with them once you get to the new house. Avoid packing all of your pets familiar items at once so they have some of their favorites available to them. For example, it’s okay to pack up most of their toys or treats, but leave their bed, favorite stuffie and a bag of their favorite treats out until the last minute. On the big day, keep your pet away from the chaos and put them in a quiet room where they feel safe while you load up the moving trucks. This is especially important if you’re using a moving company, as having strange people in the home can stress your pet out even more.

#2 Arrange Veterinary Care Ahead of Time – Take advantage of the the prime locales of our communities and research nearby veterinary clinics before you move. In the event your precious pet falls ill on during the move or shortly after the arrival, you’ll feeling better already knowing where you need to take her for medical attention. Call ahead and get your pet fully registered at the new office, and have your current vet forward all of your pets’ medical records over. This way, you’re new vet will be well informed about your pets’ last vaccinations, medical ailments and health history and be better prepared to care for them.

#3 Update Your Pets’ Tags – Before you hop in the moving truck with your pets in tow, make sure all of them are wearing a collar with your current contact information. This includes the address of the house you’ll be moving to and preferably, your cell phone number. If your pet manages to wander off while you’re taking a break on the road or gets lost after you’ve settled in to your new home, the last thing you want is for the information on their collar to be out of date. If your pets are microchipped, make sure you update the contact information linked to their chips as well.

#4 Pack a Bag Just for Your Pet – If moving to one of our communities requires more than a two hour drive from your last home, put together a bag to keep in the car with you that’s just for your pet. Include one of their favorite toys, some food, some treats, a blanket and a pet first-aid kit. You can use their favorite items to comfort them during the trip and the food will ensure your pet doesn’t get famished on the road.

#5 Secure Your Pet in the Car – While your dog may enjoy lounging across the back seat, this is not a safe position for her to be in should you get in an accident. Purchase either a crate or a car seat with a restraint system for all of your pets to keep them secure during the ride. You can make both more comfortable by lining it with their bed or favorite blanket.

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The purchase of a new home requires learning all about various aspects of homeownership (financial, legal, and practical) that can be overwhelming to a first-time homebuyer and homeowner. As part of our ongoing All About series, LGI Homes seeks to provide an easy-to-read and easy-to-understand resource that goes in-depth on a variety of subjects connected to buying a home. Today, we explore the world of property tax and how it will play into your experience of buying and owning a home.

If you’re new to homeownership, you may have questions regarding paying property taxes.

What is property tax? – Property tax is a tax you must pay on real estate you own. This includes your home and the land it sits on.

Who collects property tax? – Property tax is collected by the local government where you live, usually at either the city or county level.

How much do I have to pay in property tax? – The amount you pay is determined by the value of your home and the tax rate determined by your local government. Rates vary from one municipality to another, but generally, property tax is levied at a rate of between 0.2% and 4% of the home’s value.

What does the money go to? – It’s natural as a taxpayer to wonder where your hard-earned money is going. In the case of property taxes, the money is usually used as a form of revenue to fun important public institutions and features in your community. These include public schools, parks, community centers and more. While it may be inconvenient to pay, property tax is one of the few taxes that allows you to see exactly where your money went on a daily basis.

Will my property tax increase or decrease over time? – Many factors influence whether your property taxes increase or decrease. For example, any upgrades or improvements you make will increase the value of your home, thus, causing your property taxes to rise too. Government need is a huge determining factor in tax rates. If the government is currently facing no shortage of funding, the tax rate may lower, but if they need funds to finance a new project or maintain an established institution, rates may increase.

When are property taxes due? – The due date for your taxes will be determined solely by your local government. Some require payment to be made during tax season in April, while others extend the deadline as far out as October. The only way to know for sure when you need to pay property tax is by calling your local government.

Do I continue paying property tax once my mortgage is paid off? – Once your mortgage is paid-in-full, you will still have to pay property tax each year for as long as you continue living there. Any improvements or renovations you make will continue to influence your property tax rate, as property taxes are solely based on the value of your home and not what you owe.

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While our communities in Arizona and Texas rarely see snow, and winters are typically short, the season can still get a bit chilly. As the days become shorter and the temperatures fall after sundown, chances are, you’ll find yourself turning up the heat on your thermostat a few notches to stay warm, which can translate to an increase on your energy bill. Use these tips to help you cut back on your energy costs this winter.

A programmable thermostat is a great way to regulate your home’s heating expense during the winter months.

#1 Use a Programmable Thermostat – Few things will save you more money than a programmable thermostat. You’ll never risk forgetting to turn the heat back down with one of these, and you can control the temperature of your house at all times. As long as you don’t have pets, you can schedule the heat to remain off all day while you’re at work and kick back on shortly before you arrive home. You can also program it to only kick on when it senses the temperature in your home has fallen below where you feel most comfortable, and to turn down a few degrees at night while you’re warm in bed.

According to the U.S. Department of Energy, you can save upwards of 10% off your energy costs all winter using a programmable thermostat.

#2 Turn Down Your Water Temperature – While everyone loves a nice, hot shower, the cost of heating that water can easily add up throughout the season. To cut back, lower your water heater’s temperature to 120 degrees Fahrenheit. This is still plenty warm enough for a relaxing shower, but considering water can account for up to 25% of your energy bill, it can translate to big savings.

#3 Inspect Your System – Make sure all parts of your heating system are in working order, and if your home is still under warranty, contact LGI Homes immediately so any issues can be resolved. Even a small malfunction can minimize your home’s energy efficiency and cause your bill to rise. Routinely have your entire system inspected professionally and address any problems that arise as soon as possible before they worsen.

#4 Let Some Sun In – During the day, you can heat up the house by opening the curtains on your south-facing windows and allowing the sunlight to stream in. Once the sun goes down, close your curtains back up to trap in the heat.

#5 Use LED Holiday Lights – If you enjoy going all-out with holiday light displays, choose lights with LED bulbs. These bulbs are far more energy efficient and will dramatically reduce the costs associated with holiday lighting. This goes for both lights on the outside of your home and on your Christmas tree. Consider setting your lights up on a timer so they turn on automatically after sunset and shut off automatically a few hours later. This way, you won’t forget before going to bed.

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Almost all adults eventually face the decision between renting and buying at least once in their lifetime, though many go through the process several times. It can be a confusing a difficult decision to make, because both sides offer their own distinct advantages and disadvantages. Today, we will lay out some of the pros and cons of renting and buying to help make it easier for you to figure out which option will better suit your specific situation, wants and needs.

When comparing buying to renting, there are a number of advantages, such as paying more for rent long-term without gaining any equity in the property.

Renting is More Expensive in the Long Run – The New York Times offers a free calculator that allows you to compare the cost of rent to the estimated mortgage and interest rate on a house to see how long it will take for buying to cost less than renting. In most cases, its as short as three to five years. Once you factor in rent increases, tax breaks and other things associated with each option, buying gradually becomes steadily cheaper with each year you own the home.

There is no Equity in Renting – Every time you make a payment toward your mortgage, you are building equity. In the event you decide to sell your home, the more you have paid off the more equity you have, and thus, the more money from the sale you get to keep. In contrast, between damage charges and cleaning fees, many renters actually owe money when they leave their rental properties behind.

Renting Offers no Price Stability – Rent costs rise steadily each year by roughly 5%, meaning that what you pay today to rent will be approximately 25% higher in five years, 50% higher in 10 and so on. If you stay in the same place for 20 years, you will be paying at least twice as much to occupy the same place as you paid when you first moved in. When you buy a house, your mortgage rate will pretty much stay the same for the entire term. Whether it’s 15 years or 30, what you pay today will be almost exactly the same as you will be paying decades from now.

Renting Offers Little Aesthetic Control – From the tile in the kitchen to the color on the walls, renting gives you little-to-no say in how your home looks. Landlords expect the property to look exactly the same the day you move out as it did the day you moved in, and even home improvements aren’t typically allowed. When you own your home, you can do pretty much as you please with it, so long as it complies with any HOA rules and local laws.

Rent Often Costs More and Gives You Less – If you compare the cost of rent to what most people pay for their mortgage, you will find that the mortgage is usually less each month. Most two bedroom apartments cost more to rent than owning a three or four bedroom home.

There are some advantages to renting over purchasing, including being tied down for longer and having more upfront out-of-pocket expenses.

Buying Ties You Down More Than Renting – If you aren’t sure you want to live in the same place for more than a few years, buying may not seem like a feasible option. If you don’t want to deal with selling a home or staying put until the house is paid off, renting provides more freedom as you can leave as soon as your lease is up. However, many homeowners choose to turn owning a home into an entrepreneurship opportunity, and rent out their homes for profit as an alternative to selling. You could buy your home and move virtually anywhere else in the world you want while collecting rent on your house.

Buying Costs More Upfront (Usually) – Some people choose to rent because they can’t afford or are saving up for a down payment toward a house. Some lenders require as much as 20% of the home value upfront before they will loan the rest. However, it is important to note that LGI Homes offers a no money down option, which can help you buy the home of your dreams for less up front than a security deposit and first and last months’ rent on an apartment.

Buying Requires You to do the Maintenance – When you own your home, there are no maintenance men to call or gardners to do the landscaping, unless you hire them that is. Longtime renters are used to the convenience of having sinks fixed for free and neatly trimmed landscaping that they don’t have to worry about, but when you own, these things are your responsibility. However, if you love yard work and you’re a home improvement saavy person, you may enjoy having the opportunity to do the upkeep on a house you own.

Homeownership is a major milestone many people look forward to in their lives, and few material possessions can compare to the feeling buying your first home brings. However, just about any professional in the real estate business will tell you the buying process can be confusing for first-timers, and many are unsure if they are really ready to take the plunge. These tips will help you decide if you are ready to buy and prepare you for owning your first home.

If you intend on buying a home, you may want to prepare yourself for all the joys and challenges of homeownership.

Review Your Credit – To gain a clear picture of your financial situation, order and review a copy of your credit report. If possible, try to get a copy with entries from all three major credit reporting agencies (you can get a free copy once per year). Look over your credit report to make sure everything is accurate and that there are no discrepancies, and if there are, be sure to report them immediately so that they can be cleared and resolved by the time you start browsing homes. You don’t want any surprises making an untimely entrance into your life, and reviewing your credit can ensure that the information you present to potential lenders is an accurate representation of your credit history.

Minimize Your Debt – When a lender goes over your income, assets and expenses, they will often take your debt-to-income ratio into consideration. Before you even attend your first open house or think about applying for pre-approval, focus your energy into paying off as much debt as possible. Start with your smallest debts and work your way up. The simple act of paying off a few hundred dollars in credit card fees or the remaining balance on your auto loan can make you more attractive to lenders and increase your odds of approval.

Start Saving – The more money you can afford to put down on your house, the less money you have to borrow and the lower your monthly mortgage payments will be. Some lenders do not require a down payment, others may require 10-20%. Cut back on unnecessary expenses and bank as much possible toward a down payment.

Figure Out How Much You Can Afford – Visit potential lenders and have a sit-down to discuss mortgage prequalification. Have the lender run your income, assets and debt to give you an estimate of how much money you can realistically afford to spend on a new home. Mortgage pre-qualification will help you figure out if you are really ready for homeownership and will assist you in the early stages of your buying experience as you look at potential homes.

Consider Your Financing Options – Research different programs you might be eligible for and shop around different lenders. The way you finance your first home can be the difference between living comfortably each month or living paycheck to paycheck. Educate yourself in different interest rates and fees to find the most affordable financing available within your budget.

Get Pre-Approved – Using the figure that you came up with during mortgage pre-qualification, apply for pre-approval through the lender of your choice. Pre-approval is attractive to sellers because it assures them you have the funds to back up your offer.