How to Cover Unexpected Costs with a Personal Loan

Owning a home comes with its rewards — it’s an investment, a cozy haven to kick-up your feet after a long day of work, and a welcoming place to bring family and friends together. Although all of this makes homeownership fulfilling, owning a home also opens the door for unexpected (but necessary) expenses.

If you’ve suddenly been hit with a home improvement project that’s pinching your budget, like a roofing issue or heater malfunction, a personal loan might be an option to help cover the cost.

What is a personal loan?

A personal loan is an installment loan that’s typically issued by a bank, credit union or online lender. According to the Federal Reserve, the average interest rate on a two-year personal loan is 10.22% but varies depending on your credit score and other criteria. Some lenders offer repayment terms anywhere from 12 months to five years.

A benefit of using a personal loan for emergency home improvement projects is that the approval process is generally quick so you can address urgent home repairs sooner. Some online lenders can run a credit check, approve your application and send funds your way with a couple of days. The approval process for banks and credit unions, on the other hand, can take anywhere from a couple of days to a couple of weeks, if the lender needs additional information.

How to find a personal loan

If you’ve decided that a personal loan makes sense to fund your next home project, make sure you’re aware of these next steps.

1. Assess your budget

The last thing you need is taking out a personal loan only to realize after the fact that you can’t afford to repay it. Calculate how much you realistically need for your home improvement project, giving yourself a reasonable buffer for unforeseen repair expenses (e.g. permit fees, price changes for a specific material, etc.)

Then, tally your monthly income and financial obligations to ensure you still have enough cash on hand to keep the lights on and make monthly installments toward your loan. Using a spreadsheet or budgeting app can help you track these numbers easily.

2. Know your credit score

Generally, you need a good credit score to get approved for a personal loan. Your credit score is one of the key factors that lenders use to determine whether your application is approved, and a higher credit score results in a lower interest rate offer.

Check your credit score with the three credit bureaus to ensure there isn’t an error or suspicious activity that might inadvertently lower your credit score. For a free credit report, go to AnnualCreditReport.com to see where your credit stands before moving forward in the process.

3. Compare rates and terms

When you’ve confirmed that you have a good credit score that can get you competitive interest rates, it’s tempting to accept a loan from the first lender that approves you. But like other major purchases, it’s important to shop around.

Compare interest rates, annual percentage rates (APR), and term durations available, and read the fine print for any conditions or fees that might offset any benefits.

To start, try reaching out to your existing financial institution first to see what they can offer; sometimes credit unions, in particular, offer rate incentives for loyal members. Also, consider using a personal loan aggregator website to compare offers from multiple online lenders at once (just do your due diligence to ensure the site is legitimate).

4. Submit an application

If you’re ready to submit an application, you can either complete a form online or apply in-person, depending on your lender. Although all lenders require different information to process a loan application, some common information to prepare ahead of time include:

  • Personal information
  • Income
  • Employment information
  • Reason for the loan
  • Amount you want to borrow

 

To minimize any delays on your end, it’s helpful to prepare copies of verification documents, such as a driver’s license, proof of address like a utility statement, information about your home and pay stubs. Your prospective lender will likely reach out to you if they need any other information to make a decision.

Although it’s always best to have emergency savings set aside for a sudden home improvement project, turning to a personal loan is a useful option when you’re pressed for funds and time. As urgent as your project might feel, however, always take the time to do your research to ensure you’re making the right move for your situation.

Posted on October 24, 2019 at 6:14 pm
Lynly Callaway | Category: Living | Tagged , , , , , ,

Prepare Your Home for Winter

As the days shorten, you can mitigate many mid-winter headaches with some preemptive prep. Proper weatherizing can help protect your home from preventable damage, save money on energy costs, and, most importantly, keep you and your loved ones safe and warm throughout the winter season. Here is a useful checklist to manage your weatherization project. Setting aside some time on a couple of weekend days should be more than enough to knock this out:

 

Cracks & Leaks

Examine your entire house for any cracks and leaks, from your roof to your baseboards, to your basement and foundation. With unpredictable winter weather, these cracks and leaks are how the outside gets in, causing cold drafts and water damage.

Luckily, most cracks don’t require a professional to handle it. Depending on your house type and age, it’s likely you’ll be able to do it yourself with supplies from your local hardware store.

 

Windows & Doors:

Gaps and breaks in windows and doors is another way to let the winter in your home, and they can let heat escape, raising your heat bill throughout the season.

Make sure seals are tight and no leaks exist. If you have storm windows, make sure you put them on before the cold season begins. Additionally, add weather-strips and or a door sweep to prevent drafts and keep the heat in.

 

Rain Gutters: 

Clean your rain gutters of any debris. In colder climates, the buildup will cause gutters to freeze with ice, crack and then leak.

Once you have removed the residue from the drains, test them by running hose water to make sure cracks and leaks have not already formed. Even in warmer locales, the buildup can put undue stress on your roof and home.

 

Pipes: 

Protecting your pipes from freezing should be your number one priority this winter. A burst pipe can quickly become a disaster in any home.

Remember to turn off your exterior water source and take in your hose. Internally, wrapping your pipes is a recommended precaution to take.

 

Heating System:

Annual checks are vital in avoiding dangers such as house fires. Replace filters if you use a furnace and clear out any vents and ducts that carry heat through them. If you have baseboard heat, wipe them of dust and remove any debris that might catch fire.

 

Fireplace & Wood Burning Stoves:

Make sure to have chimneys and air vents cleaned early in the season if you are planning on warming your home with a wood-burning source. When your fireplace is not in use make sure to close the damper, some resources estimate an open damper can increase energy consumption by as much as 30%, increasing your bill about $200.

 

Outside: 

Bring your patio furniture inside or cover it for the winter. Don’t forget other, smaller items such as your tools, including the hose and planting pots. Clear out any piles around the side of your house, checking for cracks and holes in your home and foundation as you go so to avoid providing shelter for unwelcome guests over the cold season.

If your property has large trees check for loose branches and call someone to trim back any limbs that may fall in your yard, on your roof or even damage a window.

 

Emergency Kit: 

Lastly, make sure your emergency kit is up to date with provisions, batteries, fresh water, food for animals, entertainment for kids – especially if you live in an area prone to power outages.

Posted on October 10, 2019 at 2:29 am
Lynly Callaway | Category: Living | Tagged , , , , , , ,

Benefits, Risks and Things to Consider Before You Add an Accessory Dwelling Unit to Your Home

Have you ever rented the unit in someone’s basement? Maybe your spouse’s mother moved into your “Mother-In-Law Unit” above your garage? Or have you ever travelled and stayed in a pool house for your stay? Commonly referred to as “Mother-In-Law” units, homeowners use these as a way to fill the space in their home and gain residual income, either from vacationers or long-term tenants.

The official terms for these units are Additional Dwelling Units (ADU) or Detached Additional Dwelling Units (DADU’s), and are defined as extra spaces in homes and on properties where someone can live completely independent of the main house.

These units can be almost anywhere on the property, but they are usually located in the basement, in the backyard, or above the garage. They have their own bathroom and kitchen facilities, and sometimes they share laundry with the main house.

Thinking of adding an accessory dwelling unit to your home? Here are some benefits and risks, as well as important aspects to consider before you build:

Benefits

Homeowners can maximize their investment by renting out the extra space to long-term tenants for short-term vacationers. These tenants can help pay off debt or create an extra stream of income to pay for other needs or wants.

Depending on several factors, including the size of the unit, the market in the area, and other factors, each homeowner should decide which option they are more comfortable with. These decisions should be made before they list the unit for rent to best market to the right audience.

 

Risks

An obvious risk is that when you open your space to a stranger, there’s a possibility that things might end poorly. Either the tenants could turn out to be untrustworthy, or unreliable, leading to a financial burden.

To minimize the risks, it’s a good idea to use an application process to check backgrounds and employment history as a tool to get to know the potential tenant. Make sure to adhere to the National Fair Housing Laws and your local regulations.

Things to Consider:

  • What are the shared spaces?
    • Would you be comfortable sharing those spaces, and potentially appliances, with a new person each weekend, or would you rather get to know the long-term tenant who would use those on a consistent basis?
    • Rooms like the kitchen can be great for those who want to get more interaction from their vacation renters. However, sharing one bathroom between the homeowners and the visitors can be uncomfortable and risky.
    • Would you be okay with a long-term renter using your laundry facilities? What kind of access would they need to the house in order to use those machines?
  • What is the size of the ADU/DADU?
    • Is it truly a space where someone could live, or would it be too tight to fit all the necessary appliances?
    • Does the unit adhere to your local housing codes as a livable space?
  • How close are the units and what noise level are you comfortable with?
    • As a long-term landlord, tenants have the right to quiet enjoyment without the landlord barging into their space or controlling their activities. If the unit is in the basement and the tenant has friends or family over, that noise could permeate into your unit in the late hours of the night. A way to prevent this is to be sure to layout quiet hours and expectations before they sign the lease or make an agreement so that you and the tenant are on the same page.
    • The same goes for the rules in the vacation rental listing. Managing expectations is the first way to create a relationship with the tenants, even those there for the weekend.
  • What improvements are required to make the unit livable?
    • Do you need to add a kitchen or a bathroom? What are the costs associated with those improvements and would the market-rate rental prices make up for those improvements? You might not get your money back within the year, but if you’re dedicated to making the space worth it to rent it out over the next few years, these improvements, and financial obligations are necessary.
    • If these initial investments aren’t viable for your situation, it might be a good idea to look at other options to earn rent from your home, including adding roommates with whom you’re willing to share all the common spaces.

 

Whatever you decide, it’s important to be familiar with the rental market and regulations in both your local region and your neighborhood.  If you have questions, let me know. I am happy to help!

Posted on September 26, 2019 at 3:24 am
Lynly Callaway | Category: Living | Tagged , , , , , ,

Refresh Your Home With These Home Improvements

The craving to move happens to every homeowner as they start to feel bogged down, or like they need a restart. That sense of newness doesn’t have to be dramatic, however. The great part about having a home of your own is you can make improvements and give your home a chance to evolve over time. You just need to help your home live up to its potential!

These are seven of our favorite improvements to help you make the most of your home.

1. Find Your Home’s Purpose

Each home is as unique as its owners, so in order to fully utilize your home, consider how you view your home’s purpose. Some people like to entertain, others find it a calm space in the frenzy of daily life; some nurture their families and others nurture their creativity. Your home’s purpose can be any combination of these and more, but it helps to consider the function of your space in order to ultimately find its purpose. Knowing your home’s purpose will help guide you as you move room to room while you refresh the space.

2. Assemble a List

Create a list of haves/needs/wants. Answer questions like: what is it about the space that isn’t working; how could it work better to fulfill the purpose; where could I move some of my items to make them feel new again?

3. Make an “Inspiration Board”

An “inspiration board” is a great way to visualize your home’s decor. You can create a board online with a tool like Pinterest to organize ideas you love, you can also use the ‘Save’ feature on Instagram, or the old-fashioned way with a cork board and magazines. Doing this will allow you to see all the elements you like in one place so that you can then tie it all together into a room you love.

 

Photo Credit: @Krista4Coral on Instagram

4. Choose a New Palate

Renew the lighting and color by shaking up your color palate. It’s easy to fall into the white/beige standby to keep our rooms neutral, but sometimes a color that provides a contrast to your décor will make the room pop. Add a new color to the palate, refresh a wall with an accent color that you already feature in your decor, or overhaul your curtains and throws with a brand new hue.

5. Rearrange

Moving furniture around is another easy way to reinvent your space. Try placing your sofa on an angle to open up your entertaining room or move your lamps to improve lighting. You can also think about moving a piece of furniture into a room to give it new life, like using a unique dresser for a credenza or a chair as a side table.

 

Photo Credit: HouseBeautiful

 

6. Create a Collection

If you have items that you like to collect, think about how to transform that collection into something you can display. If you don’t already have a collection of loved objects think about what this collection would be for you. You can center a room design around your travel souvenirs, old camera collection, figurines, unique plates, or familial objects. Adding to this collection over time can be a great way to keep your spaces new while maintaining a personal feel to your decor.

7. Find Design Motivation

Home design evolves over time and can be sustained by finding items that inspire you. Read magazines and books that inspire your interests in architecture, design, art, etc. Or find stores and flea markets that sell pieces that influence your aesthetic. Another way to get in-tune and keep your aesthetic with you is to bring a camera with you when you’re doing your favorite activities and bring back memories or inspirations.

 

Important Note: Have fun with it! Homes and aesthetics evolve over time, add and subtract as you go, and don’t stress if the room doesn’t feel finished. You’ll get there eventually.

Posted on July 11, 2019 at 1:46 am
Lynly Callaway | Category: Living | Tagged , , , , , ,

Beyond Alexa – Other Smart Appliances You Can Use In Your Home

The nation’s largest home-building company, Lennar, now integrates Amazon’s “Alexa” smart speaker system as a function in new homes they construct. In the United States alone there are reportedly at least 39 million privately owned smart speakers, and the growth seems likely to only continue. With an eye to the future, we decided to shine a light on a few other “smart” products that can help enhance your home.

Smart Doorbells

  • While the iconic heavy door-knocker of 19thcentury Victorian may hold its appeal, high-tech doorbells are an increasingly popular option.
  • The Amazon-owned Ring Doorbell is the pace-setter for this rapidly growing industry, allowing for remote monitoring of your home via video, two-way talking functionality, and WiFi-connectivity to allow homeowners to keep tabs on their property no matter how far they roam.
  • If you’d like to go elsewhere, the market is flush with alternate options. SkyBell’s ringer allows for free cloud storage of video, while the Zmodo Greet Smart model allows for easy installation using your previous doorbell’s hardware, and comes at a price over $100 under most of the notable options.

Smart Refrigerators

  • Much has been said of the lamentations regarding the loss in popularity of the family dinner around the table. If your family is drawn to their phones when it’s time to get meals going, a smart refrigerator may be the trick to centering things around the kitchen and dining room again.
  • The brands may be familiar but the appliances are all-new. GE, Kenmore, Samsung, and Whirlpool are just a few household names involved in the exciting world of smart appliances.
  • The options are wide-ranging in functionality – from Alexa-connected Kenmore smart fridges to Samsung’s full home command center, you can control temperatures in the fridge and in your home, play music and videos, and even pull up recipes on-screen to help your tech-savvy family follow along step-by-step.

Smart Energy Monitors

  • Most people like doing things that are energy-efficient, but when it’s financially challenging it’s tough to make that choice. The best products, then, are those that check both boxes.
  • Energy monitors like those from Sense, CURB, and Neurio offer the ability to connect into your appliances and circuit board, monitoring energy usage from your smartphone.
  • How often are you likely to check your appliances unless they suddenly break down? With these monitors, not only can you maintain appropriate energy usage, you can identify issues before they become disasters.
Posted on May 9, 2019 at 12:44 am
Lynly Callaway | Category: Living | Tagged , , , , , , , , ,

Simple Steps for Maintaining Air Quality in Your Home

 

Most of us tend to think of air pollution as something that occurs outdoors where car exhaust and factory fumes proliferate, but there’s such a thing as indoor air pollution, too.  Since the 1950s, the number of synthetic chemicals used in products for the home has increased drastically, while at the same time, homes have become much tighter and better insulated. As a result, the EPA estimates that indoor pollutants today are anywhere from five to 70 times higher than pollutants in outside air.

Luckily, there are many ways to reduce indoor air pollution. We all know that buying organic and natural home materials and cleaning supplies can improve the air quality in our homes, but there are several other measures you can take as well.

 

How pollutants get into our homes

Potentially toxic ingredients are found in many materials throughout the home, and they leach out into the air as Volatile Organic Compounds or VOCs. If you open a can of paint, you can probably smell those VOCs. The “new car smell” is another example of this. The smell seems to dissipate after a while, but VOCs can actually “off-gas” for a long time, even after a noticeable smell is gone.

We all know to use paint and glue in a well-ventilated room, but there are many other materials that don’t come with that warning. For instance, there are chemicals, such as formaldehyde, in the resin used to make most cabinets and plywood particle board. It’s also in wall paneling and closet shelves, and in certain wood finishes used on cabinets and furniture. The problems aren’t just with wood, either. Fabrics—everything from draperies to upholstery, bedding, and carpets—are a potent source of VOCs.

The good news about VOCs is that they do dissipate with time. For that reason, the highest levels of VOCs are usually found in new homes or remodels. If you are concerned about VOCs, there are several products you can buy that are either low- or no-VOC. You can also have your home professionally tested.

 

How to reduce VOCs in your home

Make smart choices in building materials. 

  • For floors, use tile or solid wood—hardwood, bamboo, or cork – instead of composites.
  • Instead of using pressed particle board or indoor plywood, choose solid wood or outdoor-quality plywood that uses a less toxic form of formaldehyde.
  • Choose low-VOC or VOC-free paints and finishes.

Purify the air that’s there. 

  • Make sure your rooms have adequate ventilation, and air out newly renovated or refurnished areas for at least a week, if possible.
  • Clean ductwork and furnace filters regularly.
  • Install air cleaners if needed.
  • Use only environmentally responsible cleaning chemicals.
  • Plants can help clean the air: good nonpoisonous options include bamboo palm, lady palm, parlor palm, and moth orchids.
  • Air out freshly dry-cleaned clothes or choose a “green” cleaner.

Fight the carpet demons.

  • Choose “Green Label” carpeting or a natural fiber such as wool or sisal.
  • Use nails instead of glue to secure carpet.
  • Install carpet LAST after completing painting projects, wall coverings, and other high-VOC processes.
  • Air out newly carpeted areas before using.
  • Use a HEPA vacuum or a central vac system that vents outdoors.

Prevent Mold. 

  • Clean up water leaks fast.
  • Use dehumidifiers, if necessary, to keep humidity below 60 percent.
  • Don’t carpet rooms that stay damp.
  • Insulate pipes, crawl spaces, and windows to eliminate condensation.
  • Kill mold before it gets a grip with one-half cup of bleach per gallon of water.

 

I hope this information is helpful. If you would like to learn more about VOCs and indoor air quality, please visit http://www.epa.gov/iaq/.

Posted on March 19, 2019 at 7:42 pm
Lynly Callaway | Category: Living | Tagged , , , , , ,