Tag Archives: finance

Home Purchase: What’s Your Personal Situation?

Real estate sign in front of new house for saleBuying a house, for the most part, is a financial commitment. Apart from getting a mortgage, you also need to mind all the other costs associated with owning one. This purchase requires you to be ready for the expense, but you also need to mind your personal preferences like where and how you’d like to settle down.

Mortgage companies South Jordan share the personal aspects needed to assess your readiness in buying a home.

Ready to Stay in One Place

When you’re buying a house, you are also buying the area or location. This is why you should be ready to commit to one place for some years. The location should suit your needs with accessible grocery stores and transportation, good career and educational opportunities, and other factors that matter to you. It’s best to spend some time in the neighborhood to make sure it is the right fit.

Personal and Professional Stability

Your finances will play a big role in buying a house, but you shouldn’t completely ignore your emotions. Being stable in your personal and professional life can give you enough emotional support required in buying or owning a house. If you think that you will need to switch jobs or move to another area in the future, it’s best to put off buying until you have the stability in your career, finances, and goals.

Prepared to Take on Responsibilities

Owning a house is exciting, but it comes with responsibilities. You have to be ready and feel comfortable taking on tasks related to home maintenance. This can take up effort, time, and extra money. You (or split the tasks with your partner) need to keep the yard looking good, clean the gutters, run a self-inspection of your home, and other maintenance-related tasks.

Making the decision to purchase a house is always a personal one. You need to assess both your personal and financial goals. If you think you’re ready to take the plunge, get in touch with a reliable mortgage company to know more about your home loan options.

What Your Startup Needs to Succeed

The office of a startup businessChamath Palihapitiya, founder, and CEO of Social Capita said that it is in starting businesses that people create many interesting things. It is with starting businesses that innovations arise — things we did not know of before now exist.

The idea behind his latest venture is to provide funding for startups without knowing their age, race, gender, or other social biases. You’ll never run out of options when looking for funding for your startup. All you have to do is come up with the following:

A Business Plan

What’s a business idea without a plan for action? This is the proof you show lenders when applying for online startup business loans to convince them that you know where you want your startup to go. It’s not just about dreaming; it’s about making things happen. Just ask TAB Bank.

A Unique Approach

Starting a business can be scary, but the one thing you shouldn’t do is be a copy-cat of another business. Come up with a unique approach to selling your products or marketing them. Be a little more creative, but remember to address pain points of your consumers.

Understand them through surveys to know what they’re looking for. Be accessible to them and show them you have their best interests at heart. These days, tackling a social problem while selling a product seems to do wonders.

An Alternative

Your original business plan is not showing the results you expected? Don’t give up just yet. There should be a plan B — something that steers your startup in a different direction and uses the resources you already have to start something new. For instance, that product can be used to address a different need than what you originally intended it for.

There’s no guarantee that your startup will succeed on the first try. But if you work hard and use your funds wisely, you’ll go far.

4 Loan Terms for the Lone Millennial

Loan on the monitor of a macbookNow that you are a grownup, here are the kinds of loans you might want to note. First off, let us understand what a loan means. It means you ask someone to lend you money so that you can buy something you originally could not, like a house.

After you buy a house, the lender expects you to repay the money you borrowed.

HARP Loan

HARP stands for Home Affordable Refinance Program. It is basically for homeowners who need a stable and more affordable loan. Studies also show that HARP loans have helped people who owe more than their home is now worth.

If you are an aspiring homeowner, let a home loan company grant HARP to you.

VA Loan

This kind of loan is meant to be used by those in active duty Military Service, veterans, and eligible surviving spouses. You can say it is a thank you to these people for their service to the country. Like your usual home loan, you can use the VA loan to buy, build, and maintain a house.

FHA Loan

An FHA home is like the HARP Loan since they designed it for everyone. The difference is that it has backing from the Federal Housing Administration (hence the FHA initials) and that it actually does not loan money.

What FHA loans do is provide lenders insurance against a borrower in case the latter does not pay the money they borrowed.

Reverse Mortgages

This is useful for senior citizens because they can get money without selling their homes. Reverse mortgages are all about assessing the value of a home. If you have a well-maintained house in a great location, you will probably get to borrow a considerable amount of money.

While these loans are different in design and target users, they all share one thing in common: to help people secure a home. This is helpful for young professionals who want to settle down and find a new place they can come home to.

Why and How You Should Save For Your Retirement

ing with a river as a backgroundEveryone grows old, and at some point, will reach retirement age and will have to quit their jobs. The good news is that they can continue working if they want to. The bad news is that if they did not take care of their retirement money, they really have to work after retiring.

There are many resources online about mutual funds and other trust products, including those from ambankqc.com. However, if you really want to keep a tight rein on your retirement fund, you can do the following:

Know how money is managed

There are other things you want to know about investing your money besides the charges. Specifically, you should know if your investment choice has a low return or not. You should also try to learn how much you are paying the investment company to manage your funds. This should be reasonable, like 3%. Anything above 3% for managing your money can be a cause for alarm.

There are always risks

Any investment comes with risks. You should understand that sometimes, the trust fund takes a hit and the growth slows down. This is normal and sometimes, it takes a slowdown in order for your funds to earn more money.

Nevertheless, if you want a higher return on your investment, you should be prepared for a wild ride on high-risk investments. Lower returns are the result of a conservative investment approach. You have to decide how safe you want your investments to take.

Make sure you retire with enough money

Depending on the inflation rate and the help of the onsite calculator, you can calculate how much you need in the bank before you start withdrawing money for your expenses. Typically, you would need 4% return on the principal. Once you have calculated the amount you need to invest, you have to calculate how much money you can withdraw annually. Planning involves a lot of calculations, and this may require help from a bank adviser.

You should start planning for your retirement while you’re still young. Setting aside a portion of your earnings for the future is always a wise move.

Here’s Why You Should Pay More Than 20% Down Payment on Your Ogden Home

A couple looking at their new homeNext to Salt Lake City, Ogden, Utah is one of the best places to set up a business or start a career. The historic city is also a transport hub, and with many universities around, it is teeming with new and young talent. Most of all, the cost of living is affordable, according to Sperling’s Best Places.

When it comes to housing, property prices are competitive with a median price of $180,000. Note, though, that appreciation has been strong over the past few years and that it may increase up to 4% by 2018. There’s no better time to buy a property there than today, but then how much should be your down payment?

Utah is no different from other states. It can vary from zero to 20%, and it depends on the lender. Some may allow you to pay as low as 3.5%. But if you want to save money, you should aim for something higher than 20%.

Avoid Private Mortgage Insurance

One of the reasons to increase your down payment is to avoid paying private mortgage insurance. Also known as PMI, it is a type of insurance policy that allows the lender to make a claim in case you default on your home loan. In other words, it protects the lenders, not you.

While PMI allows you to buy a house with a very small down payment, it also means additional costs. Although you can cancel it, you can do so only when your loan-to-value ratio is at least 78%. So you may end up paying this for months or a few years.

How to Avoid PMI

If you want to stop paying PMI, then you need to reduce your credit risks. There are two ways to do that. One, you can add improvements into your home to increase its value or equity. The second, and the easiest as what Wasatch Peaks Credit Union mentioned, is to ask for down payment assistance in Ogden. A credit union can provide you with the money you need not only to pay off the down payment but cover over 20% of the home loan.

Your life in Ogden doesn’t have to begin with a huge mortgage. You can make it more affordable by avoiding PMI and getting the assistance you need.

Construction Loan: Credit and Credit History Requirements

Construction Loan

A construction loan is different from other loans since lenders would be taking a huge gamble in providing funds for something that’s yet to be built. That being said, the credit requirements for construction loans are much more stringent than other loans.

What are the Basic Credit Requirements?

As with any loan type, lenders have their own credit requirement regarding credit scores. Conventional loans, such as VA loans and FHA loans, with a loan-to-value (LTV) ratio of 80% or higher are backed with mortgage insurance to guarantee lenders that they’ll be compensated should a borrower defaults on the loan.

With construction loans, there’s no guarantee. Lenders are taking the risk of not getting paid in case borrowers default on their loans. Likewise, lenders keep construction loans in their portfolio because there’s no demand for them. This means that you must have an outstanding credit score to qualify for a construction loan, explains American Loans and other loan officers in Utah.

Outstanding credit usually means a 750 score or higher, which is true if the amount of the loan exceeds the $417,000 conforming loan limit for the majority of loans. If the loan is lower, however, some lenders might consider credit scores between 680 and 700, which are subject to compensating factors. These factors include a stable and long income or employment history, financial reserves, and low debt-to-income or DTI ratio.

What About Credit History?

In general, you should demonstrate your ability to repay your debts on time, every time, and your responsible use of credit available to you. Your credit history shouldn’t have missed or late payments spanning the past two years, with minor exceptions subject to certain conditions. Likewise, it must be free of bankruptcies, foreclosures, or other credit issues, or if there are, they should be four years or more behind you. Additionally, your history shouldn’t have any unresolved federal debts, judgments, and collections.

Lastly, take note that lenders would also factor in your credit utilization rate. This means that you’ll be considered a bad credit risk if you use your entire available credit. That said, when you apply for a construction loan, make certain that you have less than 20% of your outstanding available credit.

Thinking of applying for a construction loan? Know if you’re qualified based on the above-mentioned info.

Newlywed Vows When Buying A New Home

Buying a House in Salt Lake City

Buying a House in Salt Lake CityIt’s a sad fact that one of the top causes of divorce in the U.S. is arguing about finances. Newlyweds like you and your partner want to avoid that sort of situation, especially when you intend to buy a new home in Salt Lake City. Here are a few pointers to avoid money problems while you’re in the process of property purchasing.

Set Goals

Whether it’s creating your monthly budget or increasing your savings, you need to clarify your priorities and objectives with each other. Create monthly and yearly financial plans. Decide on what needs are required for your everyday living, then include the other projects carefully so you don’t destroy your budget or your relationship.

Decide Together

Whatever projects you plan, or purchases you intend to make, remember that you’re in this together, no matter how big or small the decisions. Communication is a requirement for married couples. Your openness with your partner regarding spending habits, payment priorities, and recreational expenditures is critical in keeping a good credit score. This gives you a better chance at pre-approval when you buy your new house.

Make a Commitment

When you set goals and make that decision to buy (whether it’s a house, car, or vacation tour), commit to complete it. You made a commitment to each other during your marriage vows. Making decisions together tests those vows. Altiusmortgage.com reminds that home ownership is a big step. For you to reap the rewards, commit to paying your loans on time.

Having the correct financial mindset is critical in a good marriage. Setting your goal, owning your house, and having a family will demand such a mindset. Just remember that everything is better when you and your spouse do it together.