4 Smart Money Habits That Will Help You Save Up a Mortgage Down Payment

4 Smart Money Habits That Will Help You Save Up a Mortgage Down Payment

Are you ready for home ownership? The prospect of owning your own house or apartment is an exciting one, but with any financial transaction this large, there are some things to consider. The first is your down payment – that is, the initial payment you'll put against the cost of the house to reduce the amount that you're borrowing in a mortgage. Let's have a look at four habits that will help you to get your down payment saved up faster.

Build (And Stick To!) a Reasonable Budget
The first and most obvious tip is to stick to a reasonable budget. Determine how much you have coming in and going out of your bank accounts and credit cards each month. Group everything into areas like 'food,' 'utilities,' 'dining out,' 'entertainment' and more. Then, reduce each area to a reasonable amount and avoid any overspending.

Figure Out Your 'Latte Factor' – And Eliminate It
If you're unfamiliar with the term, a 'latte factor' is that one consistent purchase that you make each day which, over time, drains your bank account. For example, if you spend $5 each day on your coffee habit that adds up to almost $2,000 per year in unnecessary costs. Pay close attention to your spending habits and try to eliminate anything that you can.

Make Automatic Payments to a Down Payment Fund
If you're working a stable job and have regular pay periods, you may want to explore setting up a separate savings account for your down payment. Once you have this account opened, set up automatic deposits from your regular bank account after each pay day. This limits your ability to spend your cash while building up your down payment fund automatically.

Don't Carry Credit That You Don't Need
Finally, try not to carry credit that you aren't going to use. This includes department store credit cards, extra bank credit cards or lines of credit. While it won't necessarily harm your credit score to have available credit, if you do have it you're far more likely to use it than if you don't. You'll need to be disciplined to save up your down payment. So, don't bother with extra credit that may be too tempting to resist using.

These are just a few of the smart money habits that will help you get your mortgage down payment saved up as quickly as possible. When you're ready to discuss mortgage financing for your new home, contact our team of mortgage professionals. We'd be happy to share options that suit your budget as well as other tips for getting your down payment saved up. Call us at 888-670-6791

Buying a Foreclosure: 5 Things to Know

Buying a Foreclosure: 5 Things to Know

Buying a property out of foreclosure can be a very smart move, financially. But it can also be complicated, expensive, and stressful. Here are 5 things to keep in mind before you take a first step in that direction:

Cash or Pre-approval Required
Buying a house that has been returned to the lender through foreclosure means dealing with bureaucracy rather than with a motivated seller. Large lenders are notorious for taking their time to approve a contract, even if the offer is for the exact amount specified.
Then there's the paperwork, which can seem endless. Most lenders require that prospective buyers have cash on hand, or a pre-authorized loan in place in order to even submit an offer.

There's Little Room for Negotiation
Although in certain circumstances there may be an opportunity for some discussion about the price, that is not the norm in a foreclosure. The minimum price is usually written in stone, even during an on-site property auction, and the only direction is up! The days of buying foreclosures for a song are long past, if indeed they ever really existed.

As-Is Condition Means Just That
Some buyers specialize in foreclosures while other investors run in the other direction. There are pros and cons, of course, to every transaction. Sage advice is to always pay the fee for a property inspection on a foreclosed property, even if you have experience. A third-party evaluation is especially valuable if the home has been vacant for an extended period of time, if the utilities have been turned off, or if there are extensive visible defects.
   Foreclosures can be like icebergs: What you see may be nothing compared to what lies below the surface. Also, with the findings in writing, always confirm that your loan commitment and insurance quotes will be honored in spite of the existing condition.

The Need for an Experienced Realtor
Navigating the landscape of property foreclosures is a specialty field, and caution is the name of the game. As a prospective buyer of a pre-foreclosure, a short-sale or a foreclosed home, an experienced realtor is your best resource. A real estate professional will help you deal with all timelines and requirements, and has the knowledge and expertise to recommend lenders, inspectors, insurance agents and contractors to help you make a decision.

Always Consider Future Value
Although the initial price might be right, there are additional variables at play in every real estate transaction. What can you expect in terms of appreciation over the short term? What is the long-term outlook for the neighborhood? Will needed repairs and improvements add to the home's value, or simply bring its condition up to standard? Do you plan to live in the home, or is it strictly for resale?
  Your trusted real estate professional is the best resource to help you thoroughly evaluate all the information about every foreclosure.
   We are happy to help and share our insight and experience to help you with the buying process. Schedule an appointment today. Call 888-670-6791.

Aretha Franklin Died Without a Will. Why You Shouldn't

Estate Planning Should Start Today

By Dana Mathura

You are growing older each day. As much of an unwanted reminder that may be, it too comes with the joys and woes you have experienced all throughout your existence.
  
We all reach an age where we find ourselves inundated by the inevitable. Perhaps this has happened to you when the doctor provided some news about a condition or you looked down at your birthday cake only to see more candles than icing. As much as we shy away from talking about it, death is the one experience we all share in common.

As society has it, it is essentially too taboo of a topic. However, in not talking about it, we lose out on much needed information during our lives. By this, I am of course referring to the planning of an estate or a will. You may think the act is only regarded for the wealthy who have plenty to go around and need the organization that planning offers. But the fact of the matter is, you too could benefit from the organization and planning of an estate or will.

For one, it allows what you have—be it a little or a lot—to be allocated to the people you would like. No amount is too small because what happens after your death is a tale to be told. Time and time again, we hear the horror stories of one member of a family passing without a will and their money bringing horrific family feuds to the dinner table.

The simplest solution is to create a plan. An estate plan boils down to an arrangement outlining the future of your valuables and assets—think houses, cars, life insurance, pensions, stocks, even debt—after you are gone. Establishing one with a lawyer ensures there are no holes in your plan or desires. A will is not dissimilar, as it is a legal document ordering what items go to which loved one. An estate plan, though, takes the process further and incorporates some belongings a will does not cover.
  
As painful as it may seem to contemplate your own death, you would be doing your family a great service. After your death, the division of property, funds, and other valuables could turn complicated and even aggressive in nature. Having your wishes visible in writing has the ability to hold up in court. Your family, friends and other loved ones you leave belongings to, will also be more likely to respect your wishes if you declare them beforehand.
  
Pre-planning is always a good habit to get into. Luckily, if you do pre-plan your estate or will, it translates into direct savings for your loved one’s bank accounts. They will not need to take on the headache of paying a lawyer after your passing if you already did the bulk of the work while you were living. Money is also saved from having to pay probate costs when you draft a valid estate plan. Without one, the state you resided in will have a say in how your possessions are disseminated. This option does not even guarantee it will go to your family.
  
If you are a minority, you might already be at a higher risk of not seeing the need to have these affairs in order. You would be making a large mistake and contributing to the $2 billion that probate fees cost families left behind each year, states Black Enterprise Founder, Earl G. Graves, Sr. It only goes to show that much is to be done on that front. Graves goes on to mention that collectively, African-Americans hold about 2 million businesses in the United States. If these businesses are not rightfully handed down to the next of kin, then they are subject to your state’s decision in who will receive it. This is a route no one should aim for.

There is a dire need to protect minority-owned assets. In doing so, it will help contribute to the future of minorities as they use the funds and property gained from estate planning to attend college and build businesses in the coming age. This creates an ever-sustainable economy if the cycle can continue on. Preserving your family’s wealth could never be a bad idea.

Need to Change Your Name on Your Social Security Card?

Need to Change Your Name on Your Social Security Card?

By Jim Borland, Acting Deputy Commissioner for Communications

Social Security Administration

Are you changing your name? If so, let Social Security know so we can update your information, send you a corrected card, and make sure you get the benefits you’ve earned.

To change your name on your card, you must show us documents proving your legal name change and identity. If you are a U.S. citizen, you also must show us a document proving your U.S. citizenship, if it is not already in our records. You must present original documents or copies certified by the agency that issued them. We can’t accept photocopies or notarized copies.

To prove your legal name change, you must show one of the following documents:

Marriage document; 

Divorce decree;

• Certificate of naturalization showing a new name; or
• Court order for a name change.

To prove your identity, you must show an unexpired document showing your name, identifying information, and photograph, such as one of the following:

• U.S. driver’s license;
• State-issued non-driver’s identification card; or
• U.S. passport.

If you don’t have one of those documents available, we may be able to accept your:

• Employer identification card;
• School identification card;
• Health insurance card; or
• U.S. military identification card.

To prove your U.S. citizenship, you must show one of the following documents:

• U.S. birth certificate;
• U.S. Consular Report of Birth Abroad;
• U.S. passport (unexpired);
• Certificate of Naturalization; or
• Certificate of Citizenship.

Whatever your reason for your name change, Social Security is here to help you with the new… you! Fill out the form online and follow the instructions to ensure your Social Security card is delivered in a timely manner. You can also locate your local field office so you can apply for your updated card and show your required documents in person.

For complete instructions, visit our website, which includes information for non-citizens. And remember, if you simply need to replace a lost Social Security card, but don’t need to change your name, you can — in most states — request your replacement card online using your my Social Security account.

Posted on October 9, 2018