Category Archives: Blog

Are There Rules in Buying a Home?

It has been everybody’s dream to acquire a house. People come in various passions and hobbies in life. But there is a constant need which units almost most individuals – the dream of having his or her own home. However, the bad news is that with the economy is unstable lately. This is why it is not surprising that there are those individuals who prefer to look for a realtor and then obtain a bank loan after.

Having your Own Home

Here is the truth – the current economic system makes it hard for an average individual to attain a homeownership. With the advent of unstable job markets, the double digits unemployment rates, the banks are most likely to require a list of requirements prior to the approval of a loan. Well, it is not a secret that there are those with crises in their credit. Since there are stricter rules with regard to this, only a few people become qualified. The traditional rules can be quite a handful to live by.

Now, the big question is – can you achieve a homeownership even without the presence of a bank? Any motivated home seeker is given the opportunity to partake a piece of land. Just do not forget to look upon traditional bank financing. This usually concentrates on ways to qualify for a loan. While it is true that there are tons of packages out there, the most common loan seen around today is that of FHA. There are guidelines that you must be aware of in order to understand more of this.

Working with realtors will not transpire unless you get pre-approved. As a matter of fact, there are those who will not allow you to have a glimpse of the house unless you have proven that you have the capacity to sustain the payment and financing of the property. This can be a painful process. Once you are determined to earn a pre-approval, here are the steps you must be aware of:

  • Credit score
  • Two to four years of tax returns
  • Paycheck stubs and an updated profit and loss statement for those who are self-employed

There are instances when you might be required by the bank to pay off the debt. This is necessary so that the credit score may be improved. This is also a chance to qualify for the loan. Just a head’s up though – the proof of creditworthiness may have to be undertaken for the whole home buying process. Yes, it will continue regardless of you being qualified for the home of your dreams. There are underwriters at the bank who will ensure that you are still qualified.

When you have already seen the home that you prefer, the traditional banks are going to inspect the house. There is a chance for the bank to require the seller to fix everything so that the bank may be open to the financing of the loan. There are individuals out there who only ask for a small discount on the house. This is why they might perform their own repairs. However, the bank will not allow for this to transpire!…


Dispel the Fright: Let’s Talk About Financial Literacy

Have you ever found yourself completely at a loss when it comes to your money? Personally, I know what it’s like staring at all my receipts and bills and just wondering. Why wasn’t I taught anything about this in school?

Money isn’t exactly the easiest topic to discuss. It can be quite a touchy subject—however, it always in your best interest to be frank about it. It is important to approach the topic of finances with both eyes wide open. You do that by improving your financial literacy.

 

What is Financial Literacy?

The term financial literacy pertains to the knowledge and understanding of the varying aspects of finances. This is all about being able to manage any financial aspect you are in: personal and professional. Financial literacy covers topics like investment, real estate, taxes, budgeting, and so many others.

Why is Financial Literacy Crucial?

Everyone, sooner or later, has to deal with the concept of money. Sadly, it does make the world go round. Money is needed to purchase things and even pay off fiscal responsibilities mandated by law. If you are willy-nilly about your finances, you end up in dire straits that can affect every aspect of your life.

As such, it is important to know how money works and how you can make it work for you. When you educate yourself suitably about the topic of finances, it opens up so many doors for you. If you’ve ever wanted to be self-sufficient or independent, paying your own bills is the way to go. Financial literacy will help you suitably determine if something or someone will be a financial boon or liability.

Financial illiteracy is the direct root of every single bad financial spot you’ve been in. Financial literacy will help you condition a positive attitude and mindset about what you are able to do with your finances. Smart financial decisions are made when there has been sufficient educated thought put behind it.

In order to avoid debts or any decisions that put you down that path, it is important to arm yourself with knowledge on how to spot red flags in your fiscal decisions.…