In this day and age where almost practically everything is decided by practicality, planning out your finances may seem a better option because you won’t have to hire anyone else and pay extra. However, hiring an advisor provides perks that far outweigh any other supposed practical options. To prove this point, here are some the most noteworthy advantages of asking a financial advisor’s guidance.
If you’re leading a very busy life thanks to your career or business, chances are you’ll be having difficulties in trying to manage your investments due to lack of time and focus. Besides, you might prefer to spend all your extra non-working hours on things that matter like family, friends or rest. Financial advisors help out in this aspect by relieving you of having to fully manage your investments, allowing you to maximize the extra time you may be able to spare for yourself.
Managing More Than Just Investments
A common misconception is that financial advisors can only manage your investments when, in fact, they do more than just that. Anything related to handling your finances like overseeing your expenditures, taxation for your current businesses and other similar issues can be entrusted entirely to your financial advisor. Whatever concerns you have regarding your investments, your advisor will be able to provide excellent and expert advice regarding the matter.
Long-Term Financial Planning
Planning for the future is a must for someone in your position. This also applies with your finances because, now more than ever, you should be ensuring that your hard-earned earnings will not go to waste. By hiring reputable financial advisors in Park City, you guarantee yourself that you’ll have more savings available by the time you retire.
It’s only natural that you want to make the most out of your hard earned money and a financial advisor can assist you in doing so. The little extra you spend today will help you save thousands of your earning in the future. Time is of the essence so start looking for the right financial planning company today.
Seasoned funds are money that has been in your bank account for at least two months. They serve as your cash reserves, and make up your down payment; they’re liquid assets that will boost your mortgage application.
No matter how much a home mortgage calculator in Utah, Arizona, or New Mexico tell you to save, it has to be document-based. Here’s why lenders like American Loans want to see a paper trail:
Guaranteeing That You Can Pay Your Loan
First of all, your prospective lenders want to see proof of seasoned funds to make sure you’re not living paycheck to paycheck. A mortgage payment is the biggest and perhaps the most frequently recurring bill anyone could have. If you can get by without touching a significant amount of money in your bank account, it’s an indication that you can afford loan repayment.
Ensuring Your Debt-to-Income Ratio Is Accurate
Some borrowers get cash advances to create a false impression that they have adequate assets—and lenders know this. Seasoned funds must be savings, even those you might receive as gifts. When you take out a loan to make you look more financially flexible, you’re going to increase your debt-to-income ratio. Unless your income suddenly increased concurrently, borrowing cash to borrow more cash wouldn’t bode well for your mortgage application.
Lenders would look for proof to conduct an investigation. They want to see two months’ worth of bank statements because loans typically get reported to credit bureaus within 60 days.
Although your mortgage lender can take your property if you default on the loan, foreclosure doesn’t create the best situation for all parties. Foreclosed houses are non-performing assets, and staying that way could mean considerable financial losses for lenders. But when the borrower has enough seasoned funds, the level of risk they have to absorb decreases effectively.
Sufficient savings are a pre-requisite for home ownership. Not waiting until you have enough money to apply and deliberately tricking the other party would put you at a disadvantage.
Although most people think credit cards would increase their debt, they’re very viable tools for helping you build credit. Keep in mind though that building credit through the use of short-term debt would require a well-thought-out plan and a steely resolve not to overspend. Done right, a credit card could help build your credit, without worrying about debt. How? Here are some tips.
Pick The Right Credit Card
With all the various options out there, it’s quite difficult to pinpoint which credit card would suit your needs best. To help you out, look for the following features in credit cards, suggests an experienced financial advisor in Lexington, SC:
- Waived annual fee for the first year of use or no annual usage fee
- Low monthly interest rates
- A credit card you could use virtually anywhere such as American Express, MasterCard, or Visa
- A credit card that gives something back such as transferable points, cash back, or airline miles
Pay Your Credit Card Bill On Time, Every Single Time
Your credit score could significantly go down if you fail to pay your monthly credit card bill on time, and you would need to pay more next month. So instead of not paying your entire bill, consider making at least a minimum payment before the due date.
Use Your Credit Card Regularly, But Avoid Using Credit
It’s ideal to use your credit card for things you regularly buy such as bills, groceries, eating out, gas, etc. so that you could show how financially responsible you are and build good credit. However, you must be careful to avoid taking on debt, meaning that you should only use a card for things that you could comfortably afford so that you could pay your bill in full every month.
Consider Keeping Your Credit Card Open
Even if you have another card that offers better benefits, consider keeping your older one open even if you don’t regularly use it. This could give your credit a boost because it would show how responsible you are with your spending habits.
Yes, credit cards are beneficial for many different reasons, but they don’t usually get proper credit for helping people build good credit. Even if your credit score is on the lower end, it’s possible that you could bounce back by using your credit card responsibly. So keep the tips above in mind, spend wisely, and you could improve your credit sooner rather than later.
If you’re one of those people you like “to live in the now,” you probably don’t care much about saving or preparing for the future. While living in the present may seem exciting and glamorous, it actually isn’t. This is because you will constantly find yourself needing to wait for your next paycheck, especially if you want to do something fun like taking a spontaneous trip or adventure.
If you don’t have a respectable amount of savings, Fcacu.org and other credit unions suggest looking into and overcoming these reasons.
- You don’t follow a budget. Having an opportunity to track your spending can help you identify ways to save. If you don’t know how to create a budget, you can start with listing down all your monthly expenses and know how much you’re spending on each item listed. Then, you can add up the cost and compare that to your take-home pay. If the total eats up or exceeds your earnings, you need to make some lifestyle changes.
- You have a lot of debt. If your debt situation makes you strapped for cash, you need to take an action to change your situation. You can start tackling your credit card debt, as they are costing you a lot more on interest. You can also apply for a personal loan with a lower rate that can help you pay off your balances. When it comes to other debts, it is best to cut back on other expenses or take a second job.
- You always make excuses not to save. If you’re young, you may feel that you can start saving later or when you reach a certain age. Other excuses for not saving include: "I don’t make enough money, I am no good with numbers, or I don’t know how to save." If you hold on to these reasons and attitude, you are likely to be trapped in a bad financial situation. It is best to start saving now — you can open a savings account or set up automatic deductions for savings.
Saving may seem like a chore, but it can actually give you a financial freedom. It will make you better equipped to buy or afford the things you want without having to borrow money or put things in credit. You can get the help of a financial planner or a credit union when building your savings.
If you’re thinking of purchasing a home, then there’s a good chance you’ll be applying for a mortgage to finance it. Well, unless you have gone through the mortgage application process, then there’s still much you probably want to know about it.
In this article are four of the best-kept secrets about mortgages.
Mortgage rates are sometimes very volatile
Don’t be fooled that rates change very slowly every time. History has shown that these rates may make surprising leaps or drops. In just a single year, rates can move up by more than two percent.
For this reason, it’s best to take advantage of a friendly mortgage rate in Phoenix from lenders such as VIP Mortgage when you have the chance to. You never know.
The difference in rates between lenders can be significant
The best advice someone can give you as you look for a mortgage is to check out different lenders first. Incredible as it seems, two lenders in the same city can have rates that differ by as much as $60 per month for borrowers with the same credit score and loan repayment period.
Considering you’re going to be repaying the loan for decades, that’s a huge difference.
Paying a little extra can make a massive difference
A hundred more bucks for your monthly installment may sound like a lot of money, but you’ll be surprised by the difference it makes in the long run. Why? When done consistently, it can shave up to five years off your loan repayment period. That saves you a lot in terms of interest.
Your mortgage can be sold
Many borrowers are surprised and unsettled to discover that their original lender sold the mortgage to a different lender. Actually, there’s nothing to be concerned about, as mortgage selling is quite a common practice. Your original lender ensures that your mortgage is still serviced, as should have been the case.
Knowing as much about mortgages as possible is a good idea. Not only do you make the right decisions when buying a home, but also sound more knowledgeable around your friends.
Applying for a loan in mortgage companies in Fort Myers is the best way to get your own home. However, a mortgage is a huge financial commitment that you’ll have to pay off for years.
But what if there’s a way to shorten your loan? This may sound impossible at first, but you can pay off your mortgage in less than ten years if you follow these tips.
1. Get a house that you can afford.
Choosing the right house can be a challenge, especially when there are so many options available. You can make it easier if you look at houses that are within your budget. So, examine your monthly earnings to help you determine how much you can spend on a house.
2. Consider paying bi-weekly.
You could consider paying half payments every two weeks instead of making just one monthly payment. It may seem the same, but since there are 52 weeks in a year, paying it bi-weekly will ensure that you’ll be making 13 full monthly payments each year.
3. Make extra payments.
Most mortgage companies will allow you to make an extra payment and put it towards your principal balance. Doing so can help you pay a bit of the principal much earlier than expected. This will save you in interest charges in the long run.
4. Be frugal.
It’s not bad to be frugal at times, especially when you want to finish your loans much faster. So, try to be frugal and think of ways on how to reduce your bills.
You could cut off your cable service, for instance, if you already have a stable internet connection. There are several streaming sites that you can choose from, which is a much more affordable option than a cable service.
Paying your mortgage much faster is the best way to free yourself from financial commitment. You might want to talk to a financial adviser or think of ways on how to save your money and put it on to your existing loan.
Homeownership is a dream come true for everyone. It might, however, be a steep venture without the money to buy or build your house. A mortgage is the best solution to achieve your homeownership dream regardless of your income. Exercising caution, however, is essential to get the perfect Texas mortgage for your situation and to avoid some of the common mistakes borrowers make. A mortgage is, after all, a long-term commitment. Ensuring it fits various patterns and circumstances in your life is vital.
Here are some tips to help you avoid some common mortgage mistakes:
Being House Poor
This is among the most prevalent mortgage mistakes. Being house poor is a consequence of committing a significant amount of your monthly income to mortgage repayment, leaving you with little to no funds to sustain yourself. To avoid making this mistake, allocate not more than 30% of your pretax income to mortgage repayment.
Ignoring the Real Price of Homeownership
Varied costs come with homeownership. Without proper preparation, they might surprise you along the way and leave you disappointed. Property taxes and maintenance and utility costs are some of the expenses that come with owning a house. Ensure you factor these before picking your mortgage, so your costs and monthly mortgage payments fit your budget perfectly.
Most mortgage borrowers only focus on their advertised loan’s monthly interest rates. Some lenders will advertise low rates, but compensate with high loan fees that ultimately increase your yearly repayments. Base your choice on the annual percentage rate (APR) since it includes the lender’s fees and interest, and is the ideal reflection of your mortgage.
It’s possible for you to make a smart choice when taking a mortgage. Avoiding these common mistakes is a big part of a stress-free mortgage, though not the only one. Having a trustworthy mortgage lender is the other crucial part of a hassle-free mortgage.
Scammers will hack either your email or the solicitor’s email to conduct their fraudulent activities. They start sending fake emails instructing you to divert payments from the initial accounts provided, to their accounts.
Buying a house is one of the most difficult processes you would deal with in your life. From finding a cheap or affordable solicitor to dealing with agents, you may find it stressful. Add to that the possible threat of fraud. Conveyancing scams are now listed among the most popular types of cybercrimes that can lead to extreme financial losses.
It mostly happens to first-time buyers who are not well versed in the conveyancing process. Here are some of the things you can do to protect yourself and your finances.
Do not send the entire payment at once
Even after verifying the bank accounts and payment platform with the firm, never send all the money at once. Instead, transfer small amounts first and ensure that the firm confirms receipt of the money in the right account.
Be smart with email communication
Fake email addresses are difficult to identify since their difference with the original email address is as meagre as an additional or missing number, letter or symbol. Good thing email service providers or platforms today have different security features to make sure you are not sharing or sending personal information to malicious accounts.
Get the solicitor’s name and contact number
Get the number of a staff member or the receptionist so you can contact the firm directly. In that case, work with solicitors who have strong security measures, and whose employees are willing to verify information whenever necessary. If possible, go to the firm and meet your contact person.
You should avoid becoming a victim of any fraudulent activity at all cost. Do not trust anything that pops up in your inbox. Instead, call a reliable solicitor or conveyancer and talk to them in person so you can ensure a smooth, safe and successful transaction.
Have you been on a tight budget for quite some time now? Do you find yourself scratching your head once your monthly bills start to come in? Maybe it’s time to sit down and sort out your finances like you should’ve done years ago.
Palmetto Citizens Federal Credit Union believes that a monthly spending plan can help you take control of your finances. Here’s a step-by-step process on how to start yours.
Step #1: Determine your total monthly income.
This is the amount minus taxes and any other company deductions you may have. If you have any other sources of income, include them as well. Use averages if monthly amounts vary.
Step #2: List down all your monthly expenses.
Then, subtract it from your income. This would include school tuition fees, groceries, date nights, and even ice cream weekends. You must include anything that you spend every month.
Step #3: Allot for unexpected expenses.
After Step #2, if you still have much left, set aside an amount for any unexpected expense. If you can’t come up with an amount on your own, 10 percent should be a safe amount.
Step #4: Work on your budget.
This is where your saving skills should come in. If you reach this step with a negative amount, go back to Step #2 and see where you can cut down on expenses. Then move on to the next step until you can work with enough money to continue.
Step #5 Invest.
No matter what amount you come up with by this point, you must still invest in yourself. The savings you set aside every month can be your lifesaver, your future, or your next business investment.
No two months are the same. Make sure you’re ready for any changes and adjustments your finances will need like emergency dental or medical appointments. It’ll only take you half an hour to come up with your monthly spending plan. Take control of your finances today, before it takes control of you.
Businesses are increasingly choosing other options of financing as banks institute more stringent rules on lending. As a business owner, it is important to be aware of all the alternative ways to raise money when the need arises. Here are four simple avenues you can get financing for your firm.
Try purchase order financing
Purchase order financing companies can help you out when you need to fill customer orders. Sometimes, you are going to get an order from a client but do not have enough money to supply the merchandise. You can have the PO financing company pay the supplier directly for the merchandise, and then you ship the products to your client and pay the financing company later.
Use your credit card
When stuck and in need of a quick way out of the jam in your business, you can opt to use your credit card. Seasoned entrepreneurs will tell you to use your credit card as a last result, however, given the risks involved. Failing to pay on time will dent your credit score, and that is something you do not want to do when you run a business.
Pledge part of expected earnings
While this is relatively a new way to raise money for your business, it can be effective. In this approach, you pledge a percentage of your future lifetime earnings to people who provide funding for your venture. The trick is to convince them of the viability of your idea. It is a personal investment contract, and your part is to honor it.
Find an angel investor
It was once easy to attract angel investors, but recent economic uncertainties have made the game complicated. Finding an investor to believe in your idea takes much more than you may expect, but you can still pull it off. All you need is to do is to communicate effectively, show experience, and demonstrate that you know what you are doing.
Given the current unpredictable economic times, securing funding for your company can be rather tough. But if you are creative enough, you will find that getting a bank loan is not your only lifeline when you need to push your business forward.