Mind of Money

3 Things You Should Know and Do Before Applying for Housing Loans

home with coinsSo, you’re thinking of the next big purchase. Finally, you have saved some money and you are now looking to buy a new house for your family. At this point, you should be searching for different loan options.

To help you get started, here are some important tasks you should work on:

Evaluate Your Financial Capacity

Start doing the math. List down all your expenses and compare them with your monthly income. Don’t include the money you saved for the down payment. Another way to do this is to get evaluated by a potential lender. Usually, they will ask about your source of income, your assets, and your credit history.\

Pay Your Outstanding Debts

Before applying for a housing loan, it’s best to clear your debts. It’s a standard protocol for any lending companies to check your credit score. Any delinquencies or delayed payments can get you a red flag. The approval process would be easier if you don’t have any outstanding balance.

Maximize Your Loan Options

There are different loan options you can explore. Choose the best one that suits your needs and financial capabilities. To get an idea, check out the list below:

  1. Fixed-Rate Loan – This is one of the most common housing loans available, which requires a single interest rate. This is good for buyers who are looking for a permanent home or intend to live there for a long time.
  2. FHA Loan – Usually, lending companies require a 20% down payment. With this option, you can cut it down to as low as 3.5%. Primary Residential Mortgage, Inc. also recommends checking out the HARP home loan.
  3. USDA Loan – This development loan is ideal for families in the rural areas. If you qualify, the government will finance 100% of the actual costs. This means you don’t need to pay for the down payment and you’ll enjoy low interest rates.

These are just some of the important tasks involved in applying for a home loan. Consult a property manager, lender, or financing agent for more information.

June 21, 2018 at 1:00 amMind of Money

You Should Know These Things By The Time You’re 30

A young lady with a piggy coin bankIf you’re still in your early twenties, it could be easy to enjoy your new job without having to save much. This is especially true if you’re still receiving support from your parents. However, you need to realise that to be a reliable adult, you’ll have to do things on your own. Ideally, you should be able to do the following by the time you hit thirty.

Apply for a Loan

Mutual Marketplace would agree that applying for loans is crucial for any young adult living on their own. You can get a loan by asking a bank or a credit union to lend you some funds, which you promise to repay in full by a certain period.

Drive A Car

Learning how to drive is also an important adult life skill, especially if you’re the only able-bodied one in the house to do it. You can drive your family members to school, work, or wherever they need to be. You can also do tasks like doing the groceries.

Monitor Your Bills

Whether it’s for water, light, or the rent, it may not be enough to pay your bills. You also need to monitor them in case there are unpaid or overpaid bills.

Book Doctors’ Appointments

Going to the dentist may have been scary when you were young, but you’ll have to learn to book appointments with doctors once you’re older. This will benefit you in case of life-threatening emergencies. Most clinics and hospitals now have websites that have each doctor’s contact info and schedule.

Handle Your Taxes

If you’re employed, your company’s human resource team usually takes care of your taxes, as well as your healthcare plans. If you’re self-employed, you’ll need to handle taxes on your own, which can be done by hiring an accountant.

A Thing Or Two For Twenty-Somethings

In summary, you’ll need to learn a thing or two for you to function well as an adult. These things include applying for loans, driving a car, or talking with doctors. While you’re in still in your twenty’s you should be learning these, so you’ll be ready by the time you have a family of your own or if you’re living on your own.

June 13, 2018 at 3:42 amMind of Money

3 Reasons to Get a Mortgage While You’re Young

House model and keys on top of documentsThey say most young people don’t buy homes because they’re too busy chasing careers in several cities. That’s not always the case. There are many young people who see the value in investing in real estate early.

City Creek Mortgage cites some of the reasons to get a mortgage and buy a house while you’re young.

You have more than one source of income

This is a case-to-case basis, but chances are if you’re young, you may have a lot of things going on and you most probably have more than one source of income. That’s one of the advantages many millennials today enjoy. They always look for more than one way to make a living. It could be a contractual project, a side hustle, an online job.

If you have many sources of income, then you can save up for the down payment on a home faster than others can.

You’re not settling down for now

Many young people choose to rent because they don’t know when they’ll settle down. They are too focused on chasing their dreams, career, or people that buying a home in one city doesn’t really appeal to them until they’re old. If you have the capacity to buy, invest in the property through financing and enjoy it later.

You’re thinking of investments

Real estate is one of the best investments you can make because it’s something that increases in value as the years go by. If you want to see a forecast on the home’s value after 20 years or so, ask a mortgage company for a quick computation and run the numbers in your head.

You can really have it all, as long as you know what, when, and where to invest your money in. So, go through the list and see if you can start early with your plan to own a house. You’re never too young nor too old to get a mortgage.

April 27, 2018 at 7:10 amMind of Money