Construction Liens 101

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A construction lien, otherwise known as a mechanic’s lien, is a claim that is made against a property by a contractor, subcontractor, or other professional party involved in a construction project. These liens exist to protect construction professionals from non-payment for materials or services rendered.

If you are withholding payment to a contractor for a construction project of any sort for substandard work or another dispute, the contractor has a right to file a construction lien on your property. Unfortunately, the same principle allows a subcontractor to file a construction lien on your property if the contractor did not pay the subcontractor. You, as the property owner, are still potentially on the hook.

Do not ignore a construction lien filed against your property. In the best case, the lien makes it virtually impossible to sell or refinance your property. If it is …

All About Real Estate Disclosures

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You want to know exactly what you are getting when you make any large purchase, especially when you are buying a home – the largest purchase that many Americans will ever make in their life. That’s why a real estate disclosure statement is a fundamental part of any real estate transaction.

By law, home sellers must provide a disclosure statement in writing regarding the condition of their home. The contents of disclosure statements vary by state and municipality, but they must disclose known hazards and defects of the home, as well as any important information that may affect the seller’s decision.

As a seller, you must make sure that you compile a thorough list of disclosure items. Your agent should be able to help you determine if each item must be disclosed.

Sellers are not required to search for any unknown defects, but failing to disclose a reasonab…

Don’t Let A Credit Dispute Blow Your Mortgage

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“Always check your credit report for errors, and dispute any errors as soon as possible.” We normally give this advice, but there are a few exceptions to this rule – including when you are preparing to apply for a mortgage loan.

Errors in credit reports should generally be disputed because of the potentially detrimental effects on your credit score. Matt Schulz, Senior Industry Analyst at CreditCards.com, puts it this way: “The thing about a credit score is it’s not really important every single day, but when it’s important, it’s really important.”

Mortgage loans are one of those important occasions where a high credit score is essential – you want your credit score to be as high as possible in order to qualify for the best interest rates and save thousands of dollars over the life of a loan. Unfortunately, if a loan officer sees that items on your credit report are …

American Homebuyers By The Numbers (Infographic)

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Who is buying homes in the US? Discover who these homebuyers are in our exclusive infographic above.

Lenders compare mortgage applications across several factors, including the credit scores of hopeful homebuyers. You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips.

Last week, we detailed what sacrifices people made to pay for their homes. Come back next week for our final installment, which will offer a profile of U.S. home sellers.

MoneyTips is happy to help you get free mortgage quotes fr…

Interest Rate Acronyms

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APR and APY – are they new texting acronyms? IDK, you say – or rather, you text? (For the benefit of the textually-challenged, IDK means “I don’t know.”) If you think they are texting acronyms, or just “DK” what they are, it’s time to learn.

APR and APY are financial acronyms, short for Annual Percentage Rate and Annual Percentage Yield, respectively. Both are interest rates, but they have a significant difference. APR does not address how interest is compounded – the default is the interest that you earn if you are depositing money, or pay if you are borrowing it – in one year. APY takes into account how often the interest is compounded.

If interest is compounded once per year, there is no difference between APR and APY – interest is added all at one time. However, let’s assume an interest rate is compounded monthly. In that case, the interest payment is divided up into twelve equal increments.

If you are earning interest on a deposit, that adds a sma…