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Buying a Home This Season? 5 Tips to Save Money and Avoid a Headache

By U.S. News & World Report

Looking for a home in the warmer months means entering the market at the busiest time of the year. For many eager homebuyers, it’s easy to overlook important basics while running from house to house in search of the perfect place. But forgetting these five items could increase costs and create buyer’s remorse:

Shop for the right mortgage and rate lock. Mortgages are complicated. Rates and terms vary from lender to lender, and not every product fits the needs of every buyer. That’s why it’s important for buyers to work with a housing counselor to understand the different types of mortgage products available, and then shop for the right mortgage from a variety of lenders.

Since January, the traditional 30-year mortgage rate has moved around quite a bit, trending from a low of 4.09 percent to as high as 4.3 percent. Most experts think that mortgage rates are more likely to increase over the next few months than decline. Work with a mortgage lender who allows you to lock in your interest rate. A rate lock sets the mortgage terms and protects the buyer if mortgage rates increase before the home is actually purchased.

[Read: 6 Ways to Boost Your Chances of Getting a Mortgage.]

Remember, there could be weeks or even a few months between when an offer to buy a home is accepted and the home is sold, and locking in a mortgage rate helps assure a buyer stays within her mortgage budget.

Importantly, not all lenders offer the same mortgage rate lock terms, so shop around to find a lender who will offer the most flexible options, including the ability to reduce your agreed-upon mortgage rate if prevailing rates have declined since you locked in the terms. This type of flexibility can be complicated, so work closely with your lender and housing counselor to understand the pluses and the minuses.

Pay attention to homeowners association documents. More than one out of five people live under a homeowners association, and there’s a good chance that if you’re buying a home this year, you’re joining the more than the 68 million people who already live under the rules of a homeowners association.

Operating primarily to ensure uniformity of design and maintenance standards, such as the type of storm door an owner can install or which siding color choice would be approved, HOA regulations are usually benign. However, some rules can be surprising. For example, some HOAs don’t allow an owner to erect structures on his property like tool sheds, above ground pools or certain types of backyard decks. Discovering these and other restrictions after purchasing the home can be frustrating. To help avoid surprises, buyers should ask early on if the home they’re considering is in an HOA. If so, be sure to read the HOA documents carefully.

Take a look at county development plans. Development is exploding in many suburban communities and once quiet, two-lane roads have become four-lane speedways. If the prospect of living close to a busy road isn’t appealing, it’s recommended that buyers review longer-term development plans that are under consideration by the county where the prospective home is located.

Local governments plan road improvements, new commercial construction and other development years in advance. Checking with the local government can uncover plans that may substantially alter today’s desirable, quiet neighborhood into something very different in just a few years. Ask your real estate agent to research county planning documents or visit the National Association of Counties for a list of counties and contact information to do it yourself.

[See: Should You Live Near a Cemetery, Casino or These Other Landmarks?]

Shop around for homeowner’s insurance. Every buyer who has a mortgage has to hold homeowners insurance. The insurance protects the homeowner from various losses, and assures that the lender’s collateral — the home — is protected, too. Most often, a homebuyer arranges homeowners insurance through the mortgage lender. However, shopping around can save money, especially if a buyer is bundling his or her insurance with auto insurance from the same provider.

Savings from bundling vary and bundling is not always less expensive than buying policies from different insurers. A housing counselor or lender would be best equipped to help you research options.

Get the best deal for movers. There’s no way to avoid it. Buying a home in the peak season — between May and September — generally means that you’ll pay more than other times of the year for professional movers. Although it doesn’t make too much sense to delay buying a home to avoid peak moving season, it does make sense to shop around for the best rate.

Make sure that the moving company you select provides an accurate estimate based on your home and your belongings. Don’t settle for an estimate over the phone based solely on the square footage of your home and the number of bedrooms. Real world factors such as the weight of your furniture (think pool table versus ping-pong table), the number of stairs in your home, the width of your hallways and more, can affect the cost of moving.

[See: Your Moving checklist: Don’t Let These Details Slip Through the Cracks.]

There are several types of estimates that a moving company provides. The main estimates are classified as binding, non-binding and not-to-exceed. Each one has its pros and cons. Understand the details of each and then shop around multiple moving companies for the best price. Other tips for consumers ready for their next housing move can be found at the American Moving and Storage Association website.

Buying a home involves many different types of choices. Paying attention to these could save you money and time.

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Buying a Home This Season? 5 Tips to Save Money and Avoid a Headache originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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