Dual Benefits of Green Choices: They Help the Earth and Your Wallet

You have two choices: You can stay put and live cheaply, hoping that prices in your neighborhood come back in the next couple of years. Or you can rent out your home and find a larger house to rent until the market stabilizes.

It's irresponsible to think you can dump your house and move on without having any serious financial repercussions. Trust me, this move may haunt you for the next 10 years.

I'm a graduate student and will be graduating in May. I'll be starting a full-time job and looking to buy a home for the first time. Because of some stupid choices with credit cards in college, my credit score is pretty low. I'm working hard to pay off all of my debt, but this may take some time. I also have lots of student loans on my report. I'm a little concerned about qualifying for a home loan. Will I automatically be turned down because of my poor credit history, or will I be stuck with a high-interest loan?

Congratulations on your graduation. However, this isn't the best time to be looking for a house if you have poor credit and no money for a down payment. These days, lenders want buyers to put down at least 3 percent of the purchase price as a down payment, plus have at least a month's worth of expenses in reserve. You'll also need cash for some of the closing costs. Many lenders want to see borrowers put down at least 5 percent to buy a home.

Will you be automatically turned down because of poor credit? It depends on how bad your credit score is. If it is below 625, you might have a difficult time getting any sort of loan.

Even if you are approved, your credit score means you'd pay a much higher interest rate than someone with a good credit history and score. How much more? According to the numbers provided by MyFico.com at the end of last month, if your credit score is 760 to 850 (the top tier), you'd pay 5.682 percent on a 30-year $300,000 loan. But if your credit score is 500 to 579 (the bottom tier quoted), you'd pay 10.242 percent for the same loan, or nearly an extra $1,000 per month.

Your best bet is to focus on improving your credit score and paying down your outstanding loans. Housing prices will still be low in a year, but you'll be in a much better position to take on that kind of debt.

I bought a new home and am having problems with a leaky roof, along with other problems. The builder refuses to take care of the problems. Whom should I contact?

Your contract or some of the other documents you received at the closing should tell you exactly how you're supposed to deliver notice of any issues you have with the house. Did the builder give you a warranty? Typically, you'll need to put notice of any issues you have with the home in writing and deliver it to the builder by certified mail, return receipt requested, or by some other means to ensure that you have a record that you sent the notice and that the builder received the notice.

But if the builder refuses to live up to the terms of the warranty or did not give you a warranty but still refuses to fix your problems, you'll need to explore other options.

One option is to determine whether there are any other warranties provided by the manufacturers of the products used in your home. See whether you can find out the brand of the roof shingle manufacturer and the name of the company that installed the roof. Frequently, the manufacturer of the roof will stand behind its product if it was installed properly, and the installer may also back its own work for a certain time after the installation. If you have that information, you can see whether they will be willing to make the repairs.

For other items, such as appliances, that may have a manufacturer's warranty, you can call the manufacturer of that product to see what options are available.