Category: Personal Finance

5 Tax Refund Tips That Get the Most Out of Your Money

May 24, 2018 Frugal Living Tips, Personal Finance

tax refund tips

After all the stress of filing your taxes in the first place, receiving a tax refund is fantastic. It feels like you just got a random gift of free money — even though it’s really just your own money that you’re getting back.

It can be tempting to hit the mall with all that new money in your bank account, but there are smart ways to spend your tax return. Before you go on a spending spree, take a look at these tax refund tips.

1. Pay Down Debt

If you have any high-interest debt like student loans, you should put at least some of your refund towards paying it down. You’ll thank yourself later when your principal is lowered.

You could also work towards paying off a car or put a little extra towards the mortgage if you own a house. Take a look at your financial situation and see where the best place is to spend that check.

2. Pay Off Credit Cards

Speaking of high-interest debt, do you have any credit card debt piling up?

If you took advantage of your credit limit over the past few months and now need a way to finish paying it off, plan to put some of your anticipated refunds towards your credit card bill. Since the interest rates on credit cards are usually so high, you should make it a priority to pay as much of your bill as possible.

3. Invest It

Don’t have any pressing debt you need to take care of? Excellent! Consider investing your tax refund instead so that your money can work for you.

No matter how much money you received back from the government, you can increase it by investing it wisely. Don’t worry if you’re not a stock expert — you can work with a financial advisor or download one of the apps that makes investing easy.

4. Build Up Your Retirement Fund

A different way to invest is to build up your retirement fund. The more you save now, the more it will grow over time. Even a small boost now could translate into thousands of dollars of savings down the road.

If you have a 401(k), put as much money as you can in it until you max it out. It’ll reduce your taxable income for next year, your employer might match the funds, and future you will thank you.

5. Put It In Savings

Finally, there’s nothing wrong with just sticking the money you’ve gotten back into a savings account. If you don’t have an emergency fund yet, this is a good way to start one.

That way, no matter what life throws at you — a flat tire, a family emergency, or home repairs — you’ll know that you already have the money saved away to take care of it.

Put These Tax Refund Tips to Good Use

We hope that these tax refund tips help you decide the best way to spend that check you got! Put this advice and way more to use when you take advantage of our library of resources.

Learn more personal finance tips right here.

5 Reasons Why Life Insurance Is Essential for Single Mothers

May 18, 2018 Personal Finance

why life insurance

What happens to your kids if something happens to you?

As a single parent, this thought can be terrifying. No one wants to think about dying. But when little ones depend on you, you can’t help but wonder what would happen if you were no longer there.

That’s why life insurance is important. When you’re the sole provider for your kids it’s even more important.

With the right life insurance policy, you can provide for your kids even when you’re not around. That would assuage a lot of worries, wouldn’t it?

Money is always pretty tight, though. Every cent counts. You may be wondering if you can really afford to buy life insurance.

Let’s take a look at some options. And then we’ll look at some reasons why you can’t afford not to buy life insurance.

Term Vs Whole Life Insurance

When you’re pinching pennies to provide basic needs for your children, every cent counts. You know that life insurance is important but you don’t know if you can afford it.

There are two general types of life insurance policies. Term life insurance and whole life insurance. The main difference is that term life insurance is good for a set term. Terms typically run from 10-35 years. Whole life insurance covers you your entire life.

Thus, a term life insurance policy is a lot cheaper. There is less risk that you’ll die during the term so the company can afford to offer a plan at a cheaper rate.

Term life insurance policies are very affordable. The peace of mind alone that a life insurance policy will give you is worth far more than the premium.

You can find more information about term vs whole life insurance and get a quote here.

Why Life Insurance?

Okay, so life insurance is affordable and gives you peace of mind. But what does that really mean? What do life insurance benefits cover and how will it put your mind at ease?

Let’s look at some of the reasons why life insurance is important for single moms. You can pick and choose what you want your specific policy to cover but here are some common options.

1. Death Expenses

It may surprise you to know but dying is very expensive. The average cost for all end-of-life necessities (not just the funeral) is a whopping $11,618!

You barely have two pennies to rub together on any given day so it can’t come out of your savings. Who’s going to pay for your death expenses?

With a life insurance policy, you don’t have to worry about that question. The policy will cover your death expenses.

This makes things a lot easier on family members. They have enough to worry about during such a difficult time.

2. Pays Off Debts

Are you still working diligently to pay off your debts? What happens when you die? Do they just go away? In some cases, they do. In others, they don’t.

For example, say you are paying off a mortgage. If you die, the house would most likely have to be sold to pay back the debt. Thus, in addition to losing you, your kids would have to leave their home.

A life insurance policy can pay off your mortgage. Your kids’ new caregiver could come to live with them instead of having to be uprooted during such a tumultuous time.

3. Covers Estate Taxes

The government is only too happy to have a tax for everything and that includes your estate. Of course, as a single mom, you might not have much of one. But what you do have you want your kids to be able to keep.

Estate taxes vary depending on the state you live in. Plus, if the estate is worth less than a certain amount (that varies by state) they won’t be levied against your estate.

But, if estate taxes do come into play, your kids won’t have to worry about them if you have a life insurance policy that covers them.

4. Covers Your Kids’ Expenses

Your mom, sister, cousin etc may be totally willing to look after your kids if something should happen to you. But, as you know, kids cost money.

Can your mom support your kids on her fixed income? Probably not. Your sister or cousin may already be stretched thin caring for her own kids.

A life insurance policy will ensure that the money needed to take care of your kids is there.

Life insurance policies don’t typically pay out to your children. That makes sense as they wouldn’t know what to do with the money anyways. Instead, you can name a guardian or create a trust that will pay out the money at specific intervals that you can choose.

Regardless of how you want to set it up, you can rest easy knowing that the necessary money will be there.

5. College Expenses

You can even include college expenses in your life insurance policy. Your premium may be higher with this option included. But if a college education is something that you really want for your kids, it may be worth it to you to include it.

Final Thoughts

It’s not a pleasant thought, but one day you’re going to die. You hope it’s when you’re old and your kids are already raising kids of their own.

But you don’t get to choose. You can eat healthily and exercise all you want, but you don’t get to choose when you die.

Take away the fear that your kids won’t have what they need by buying a life insurance policy. You can hope your kids will never need it, but it will be there just in case. That’s why life insurance is so valuable.

For more great personal finance and budgeting tips be sure to check out our blog.

What Are Paystubs And Why Are They Important?

May 9, 2018 Personal Finance

paystubs The best part of being employed is getting paid. But did you know your paycheck holds valuable information that’s of grave importance to you?

Due to the convenience of direct deposit and easy check cashing, most people rarely pay attention to their paystubs, except to verify the amount and sometimes the hours worked.

Pay stubs matter for so many other reasons. So, what are pay stubs and why are they important?

What Are Paystubs?

A pay stub is the retainable part of a paycheck that details how an employee is paid. It lists how much a person earns per working period–weekly, biweekly, or monthly–as well as year-to-date earnings.

The stub also particularizes how much taxes are paid each pay period and how many deductions, like benefits and RPO (Retirement Plan Options) payments, are deducted from an employee’s gross pay.

The taken home pay (net pay) is also itemized on the stub.

Why Stubs Matter

Check stubs are important for employers and employees, as they prove earnings paid out and earning received.

All employers are required to list mandated deductions such as social security and Medicare. Detailing this information on check stubs serve as evidence.

Renting or buying a house, applying for a credit card, and purchasing a new car all require proof of earnings. Stubs verify active employment.

Also, the IRS can audit tax records up to six years. If you’ve lost or misplaced important tax returns, check stubs act as documentation of earnings and taxes paid.

How They Help Employees Understand Their Pay

Most of the time, employees look at their paycheck simply to make sure they’ve been paid what’s promised and go about their everyday business.

Check stubs help employees understand how they are paid and exactly how federal requirements are deducted from their pay.

Gross Pay

People confuse gross pay and net pay frequently. Gross pay on a stub indicates exactly what an employee earned for each hour worked before any deductions are taken out.

Hours Worked

The average employer uses some form of punch clock like Kronos to keep track of how many productive hours employees have worked.

These hours are digitally captured, calculated, and printed on check stubs for both employee and employer record. Pay rates are listed as well.

Deductions

Deductions are subtractions from an employee’s gross pay. Some are pre-tax and some are post-tax.

A lot of times employees don’t understand deductions in their pay because they don’t understand how deductions work.

Pre-tax deductions lower an employee’s taxable income. Health insurance, 401K, and flexible spending accounts are all pre-tax deductions that affect gross pay.

Garnishments and life insurances are examples of post-tax deductions that are debited from an employee’s pay after payroll pre-taxes.

Net Pay

Net pay is what an employee takes home after deductions. This amount gets deposited into an account or a paper check is issued by a pay stub generator.

Stubs include all of the relevant information to help people understand how they get paid.

Save Your Pay Stub

Paystubs are salary records that help you keep track of your salary and tax requirements. They also give you an understanding of how your money is allocated before you handle your net pay.

Want more information? Check out our articles on how to earn money for more thrifty financial tips.

Top 5 Reasons to Use An Expense Tracker

April 25, 2018 Frugal Living Tips, Personal Finance

Think of an expense tracker, and two emotions will likely pop into your head. You either feel intimidated, or you see how it can add value to your budget and keep spending on the right path.

We know how people view technology can vary depending on generational barriers or an absence of financial literacy. But in much the same way smartphones had a small learning curve when you first bought one, these tools are no different.

The make the complex intuitive, and they add several life-changing benefits. Let’s look at the top five.

1. They Isolate Spending Problems

Low-income households spend a higher percentage of their budgets on the necessities of life. This makes tracking each dollar of the utmost importance.

Four-dollar lattes just aren’t as appealing when you realize the same amount of money could feed the entire family for a night. Using an expense tracker helps you identify such problems and regain control.

The good news: you can make your dollar stretch further by bulk-purchasing wholesale items. It may take planning and a few weeks of sacrifice while you stock up, but once the routine is in place, you don’t have to look for the money you’re saving.

2. Help Maintain the Household Budget

Any budget breaks down into five essential categories. They are as follows:

Income/revenue sources: how you meet every other goal; easy to calculate because sources are usually more limited than they are on the debit side.
Spending and expenses: things you don’t necessarily have to buy, but you feel compelled to (health insurance, grocery bill, entertainment, for examples).
Bills: what you either have to pay if you wish to enjoy civilization, or what you’re legally obligated to pay (taxes, water/sewer, utilities)
Planning for future purchases: boats, homes, braces for your kids, etc.
Long-term savings

To keep it all running smoothly and to meet your life goals, you have to know where each dollar is going. Or else, you could end up getting the electricity turned off.

3. Get You Back on Your Feet Following Missteps

The key to staying on budget is to understand failure is part of it. You must have a contingency for when that happens, because it will.

Using an expense tracker motivates you to do better. But to get the most out of it, find one that’s easily accessible and incorporates with the cloud.

This Tiller Money review highlights a budgeting tool that links to Google Docs, so you can work with one of the most widely supported systems you’re probably already using. Other worthwhile trackers include Personal Capital and Mint.

4. Make April Easier

Tax season is the most stressful time of the year. But it’s much worse if you wait until the last minute to locate and add up a year’s worth of receipts.

Using a tracking tool to do it eases the pressure. Most of the good ones allow you to log receipts as you get them (with images), categorize in compliance with IRS reporting regulations, and easily retrieve the necessary numbers when you need them.

5. Detect Fraud

If you bank online, then you have sensitive data on your email accounts. If your email account is set up through Yahoo, then you’ve been compromised at some point.

To what extent, who knows? The important thing is being aware of it and taking appropriate action.

An expense tracker will bring awareness to fraudulent activity. It also will enable you to act before too much damage occurs.

After Your Expense Tracker Is in Place

Once you’ve got a tracker you can trust, we encourage you to take positive actions with your budget. You can start by making these 10 healthy money-saving choices.

In the meantime, which of these budgeting tools do you use, and why do you prefer it? Drop us a line in the comments section.

8 Tips For Negotiating the Best Real Estate Deals

March 25, 2018 Frugal Living Tips, Personal Finance

real estate deals

So you’re ready to buy a piece of real estate.

Or maybe you have property to sell. Whether you’re a buying or selling, you should work with a real estate agent. Here’s why.

Negotiation skills matter a lot. Great real estate deals are only available to powerful negotiators. If you buckle too easily, you risk being taken advantage of by knowledgeable buyers or forceful sellers.

Here are 8 tips that you need to master before you negotiate your next real estate transaction.

1. Hire A Good Real Estate Agent

A bad real estate agent can cost you tens of thousands of dollars.

Spend time choosing your agent. A strong choice will pay off your investment tenfold. The person you choose should have shark-like negotiation skills needed to secure good real estate deals.

Interview your choices, preferably in person. A seasoned, experienced agent will be able to answer all of your questions.

2. Understand the Neighborhood

Real estate deals depend on the neighborhood. If you don’t know how much the neighbor’s house sold for, you won’t know how much your house is worth. Become an expert in the neighborhood.

If you’re selling your house, you’ll get a better deal if you price the home to suit the neighborhood. Your Realtor(R) should be able to help you.

If you’re buying a property, become an expert in its location. Visit at all hours of the day. The charming neighborhood may seem quite different at night when most of the partying residents are home.

Are there any good schools nearby? Even if you don’t have kids, your proximity to quality schools affects your home value.

Your real estate agent should be able to answer most of your questions about the neighborhood. Choose someone who is well-respected in the area.

Searching for a vacation home near Disneyland? Choose Jeeves Realty. Looking for a fabulous loft in Cancun? Choose a Realtor(R) who’s based nearby.

3. It’s Not Real Unless It’s In Writing

In real estate, words are meaningless until they’re put on paper. Don’t depend on verbal contracts. If you haven’t signed your name to it, the agreement doesn’t exist.

Sellers sometimes lure buyers by feeding them false hope. Once offers start flying in, the seller manufactures a bidding war to entice desirable buyers. Don’t get your hopes set on a single property.

4. Don’t Be Discouraged By Friction

Negotiations only end quickly if one person is making a mistake. If buyers leap at your price, you’re probably asking for too little. By the same reasoning, buyers should be wary if the seller is too eager to close the deal.

If the entire negotiation goes smoothly, it might mean you could have gotten a better deal. Be cooperative but don’t bend over backward to make the other party happy. It’s ok if there’s a little friction

5. Someone Has to Get the Last Concession — Make Sure It’s You

Here’s a simple rule to remember during the negotiation process- always get the last concession.

A concession in real estate is anything that sweetens the deal. You might be able to convince the seller to repaint the property’s walls or perhaps install new flooring. Realtors(R) often negotiate for the seller to cover entire closing costs.

If you always demand the last concession, the other party will quickly learn to stop trying to get extra goodies. She’ll realize that nothing that she wants is free. If she’s going to ask you to give something up, you’re going to do the same to her.

For example, during the last round of negotiations, instead of announcing that you’re happy with the proposed price, say that you agree, as long as you can have one last thing.

Perhaps you want the contractor to finish sooner. Maybe you want a couple of appliances thrown into the deal. It doesn’t matter what it is.

6. Remember: You’re Buying a House, Not Choosing a Life Partner

If you’re buying a house, focus on what you’re trying to do. Great real estate deals aren’t made based on emotions. You might be in love with the cozy breakfast nook or the spacious backyard, but don’t let that blind you.

Real estate investments are tricky, so you need to go into them with your eyes open. A bad financial decision can take years to recover from.

7. Real Estate Deals Depend On The Market

The type of deal that you’ll be able to negotiate depends on the market conditions.

Buyer’s Market

A buyer’s market means that there are more homes on the market than homebuyers. It’s the best time to be a buyer, so push your advantages.

If you’re trying to sell a house in a buyer’s market, you need to be flexible. Properties may take longer to sell. Buyers might demand that you lower your listing price.

Seller’s Market

In a seller’s market, buyers fight for a limited number of homes.

If you’re trying to buy a house, understand that the seller has the advantage. If you’re tangled in a bidding war, trying to convince the seller to cover the closing costs or take a couple thousand dollars off the final price probably won’t work.

8. Get a Home Inspection

Hire a home inspector. It’ll cost a couple hundred dollars upfront but it could potentially save you thousands. A home inspector will give you an unbiased opinion about the property and any issues it has.

Here’s what you need to do if you’re the buyer:

Research your inspector
Attend the inspection in person
Read the inspection report

If you’re the seller, you should:

Prepare your home
Get a presale inspection

Thinking About Buying Or Selling A Piece Of Real Estate?

Everything is negotiable. Choose a real estate agent with fearsome deal-making skills and you might walk away with a great deal whether you’re buying or selling.

Practice before you come to the negotiation table. Prepare yourself mentally for battle. If you don’t fight for what you want in real estate, you’re not going to get it.

There are others ways that you can prepare to make a great investment. Poke around on our site to discover more tips.

How to Save Money While Searching for a New Job

March 19, 2018 Personal Finance, saving money

searching for a new job

As of February 2018, the American unemployment rate sat at approximately 4.1%.

Being unemployed and searching for a new job can feel undoubtedly overwhelming and stressful.

If you’ve been recently laid off, you may be scrambling around, trying to set your finances order, apply for new positions, and doing what you can to keep sane in the process.

You may also be stressed about all the upfront costs, such as interview clothes or gas mileage, that come with searching for a new job.

We’ve got you covered on the best tips for saving money during this stressful process. Let’s dive in!

Cut Back on Living Expenses

This should go without saying, but when you’re searching for a new job, money will probably feel a bit tight. This is especially true if you are supporting your family or experiencing a major wage loss.

Fortunately, there are several areas that you can cut back on. For example, can you reevaluate your grocery budget and eliminate or cut back on eating out? What about finally committing to cutting the cable cord?

When you’re jobless, every cent counts. You don’t need to be buying any luxuries or indulgences right now.

The only expenses to continue focusing on? Ones that are related directly to a job. This can include headshots, resume-building services, gas, your cell phone bill, and the Internet.

Anything else? Wait until that first paycheck comes in.

Upgrade Carefully

So, you’ve landed a few interviews, but you have nothing to wear? You were diligent and followed the guideline to cutting back on living expenses, but what if you desperately need a haircut and some clean shoes?

As we know, interviews are your first (and sometimes only) impression to show off what you got to your potential employer. If you look shabby, this may reflect very poorly on your potential performance.

With that in mind, you don’t need to blow hundreds of dollars on an expensive interview outfit or makeover.

Check out the local Goodwill or consignment stores near you. Many people outgrow their work clothes (weight change, pregnancy, change in styles), and so many of these stores have plenty of business casual clothing in stock.

No luck? Check out online retailer or apps like eBay or Poshmark where you can score some serious discounts. Or, just ask your friends and family if you can borrow one of their outfits!

As for your hair? Check out a local cosmetology school. You’ll get a polished new look at a fraction of a salon price.

You don’t have to worry about major hair disasters either. All students receive supervision and monitoring from trained, licensed professionals.

File for Unemployment

Before searching for a new job, take care of the financial matters from your last job.

You’ll need to file a claim with your state’s unemployment program to receive benefits. This means you should contact the program immediately after you become unemployed.

When you file your claim, you will need to provide information about your job, such as the dates you worked and the facility address.

It may take between 2-4 weeks after you file your unemployment claim to receive your first check. Some states work faster than this, but it’s important to realize that it won’t happen instantaneously.

And, remember unemployment benefits aren’t just for employees who get laid off. Many states offer benefits for fired employees, as long as the firing wasn’t due to intentional misconduct.

Get Your Healthcare Appointments

Were you procrastinating on that dental exam or a yearly check-up with your primary care physician due to a busy schedule? Well, now is the time to make those much-needed appointments.

If you are on an employer-sponsored insurance plan, you’ll likely receive your health benefits until the end of the month. Take advantage of the coverage and make it a point to schedule any needed appointments.

If you need to extend your coverage, you’ll want to apply through the COBRA federal program.

Hang Onto Your Receipts

Did you know that the IRS will let you deduct certain job-hunting expenses? Even if it’s not a ton of money, every little cent helps, right?

A few helpful deductions to keep in mind:

employment and outplacement agency fees
preparing and mailing resume or application copies
travel expenses related to looking for the job

You cannot deduct any job search expenses if there is a significant break between the end of your last job and the time you begin searching for a new job. You also cannot write off anything if you’re looking for a job for the very first time.

Furthermore, you need to itemize your expenses to receive a deduction. Currently, your miscellaneous expenses related to searching for a new job must exceed 2% of your adjusted gross income.

With that in mind, it’s a good idea to hang onto any receipts related to your job-searching expenses. Consult with your CPA to determine if you will qualify for any tax breaks.

Commit to a Disciplined Schedule

The best way to stay sane while searching for a new job? It’s all about the discipline and motivation that you hold onto.

Listen, it’s easy to feel burnt or discouraged in a tough job market. It’s easy to feel depressed or anxious and give up hope.

But, these are all traps! They only keep your spirits down, and guess what? They don’t put any more money in your pockets. Instead, commit to landing yourself a job by putting in a dedicated hustle.

Reach out to your network. Got outdated documents or cover letters? Follow the complete guide to creating your resume.

Set daily and weekly goals for yourself for applying to X amount of positions. Stay active and stay on track.

No, this doesn’t mean you have to grind it out all day. In fact, you should take routine breaks. But, if you treat your unemployment like a job- with disciplined hours and goals- you’ll be well on your way to landing a job in no time.

Prioritize (Cheap) Self-Care

It may seem counterintuitive to allow yourself to relax while searching for a new job, but stress reduction is critical for maintaining a positive mindset and attitude.

When you do land that dream interview, you want to go in feeling assured and confident, right?

Make sure that you’re still taking care of yourself in the meantime. This means eating a healthy diet, working out regularly, engaging in pleasant activities (like art, movies, outdoor activities), and spending time with people that you love.

You want to stay sane during this process. It will help you in both the short run and the long run, and you’ll be thankful that you took care of yourself once you land that dream gig.

Get Your Side Hustle On

Did you know that more than 44 million Americans have an active side hustle? As you’re searching for a new job, it’s important to think outside the box.

You may want to focus on a creative pursuit or other job opportunities that you’ve “pushed aside” because you haven’t had the time.

In today’s increasingly digital age, you can essentially start a side hustle with very little to no money.

In fact, many people find their passion and niche in working from home, and this may be just the time to plunge in and start your own business!

Whether it’s blogging or crafting, photography or cooking, you may want to consider investing some time and energy into your own side hustle. Who knows? It may end up becoming your next successful career move.

Take What You Can Get

If money is especially dire, you may need to jump on the first opportunity you can land, even if it’s not the ideal career.

Yes, this may mean working in a position that you’re overqualified for, but it’s important to say open and avoid being picky- especially when the bills need to be paid.

Look for businesses that are hiring for seasonal help, such as restaurants or amusement parks during tourist seasons and retail stores and malls around the holidays.

If you can only secure part-time work, take whatever you can. It’s always better to make some money than none at all.

With that said, it’s important to stay active and on top of your job search during your downtime. Your “what you can get” job is a temporary gig, and it should be treated as such.

Final Thoughts on Saving Money While Searching for a New Job

Nobody likes the frantic feelings that come with unemployment, but most of us will face the distress at some point in our working lives.

Stay focused, and stay the course. If you do just that, you’ll be back in the working world in no time at all.

Interested in learning more ways to live frugally no matter what your circumstance is? Be sure to check out our blog today!

Buying a House: How to Prepare Financially

March 11, 2018 House and Home, Personal Finance

buying a house

Are you looking at buying a house? Before you start looking at homes, you need to make sure all of your finances are together. 88% of all homebuyers in 2016 financed their homes.

The need to understand the finances surrounding a home purchase is crucial.

In this article, we’re going to take a look at what you need in order to get your finances together for a home purchase.

Preparing Your Credit For Buying A House

Having a great credit score is an important thing when you’re buying a house. If your credit is not where it should be, there are ways you can prepare it before submitting a mortgage application.

One of the best places you can start is by getting a free credit score to see what’s on your credit report. There are a ton of valid and secure websites that do this for free. You may also be able to get a credit report from your bank.

Analyze Your Credit Report

Once you have your credit report in your hands, it’s important to look it over thoroughly. Getting your initial credit report six to nine months before you start home shopping is the best way to start to turn your score around if it’s not so great.

If you have late payments on accounts or other things that reflect in a negative light, having this time is key. If you know that you pay your bills and accounts on time, getting your credit report a couple of months in advance is appropriate. This way you can make sure there are no mistakes.

Find Inaccuracies

Does your credit report have any invalid or inaccurate information on it? Finding these mistakes is important so you can dispute them. The dispute goes directly to the credit report company. Having mistakes or errors on your credit report can significantly affect or lower your credit score.

It’s imperative that these mistakes be addressed so your report is accurate and up to date.

Keep Old Lines of Credit Open

Having older lines of credit open help to give your credit score a boost when you’re buying a house. You may have a line of credit open that you haven’t used in several years. Even if you haven’t used it, it’s still good to keep it open.

If they aren’t in good standing, closing them may help. For those that are older and are in good standing, they consistently add good points to your overall credit.

Don’t Open New Ones

Opening new lines of credit can put a temporary dent in your credit score. It’s recommended that you hold off taking out any new loans or opening any credit lines for up to six months before applying for buying a house.

Opening up a new line of credit is viewed as a risk because the credit report company doesn’t know how well you’re doing to treat that credit. If you have to open up a new line, wait until after your mortgage application has been approved.

Charging to Your Existing Credit Lines

Buying a house can be an exciting time! The worst thing you could do though is to go out and buy things. Resisting the urge to purchase new appliances and decorations before the process of buying a house has come to a close will benefit you.

Even if your loan has been approved, if you don’t meet the conditions or violate the terms of debt, they have the right to cancel and disqualify you for your loan.

Hiring Financial Advisors

Having financial advisors to help you in the process of buying a house can make the process easier. The financial terms and conditions are complex and overwhelming.

Knowing the terms, what they stand for, and how to deal with them comes with years of experience. From making an initial offer on a home to the closing process, financial advice is necessary unless you’re already a financial guru.

Unless you’re an expert, you don’t know what is coming, what it means, or the best way to deal with it. Here are a few financial advisors you can hire to help you in this process.

Real Estate Agent

Are you using a real estate agent for your home buying process? They have great advice about finances because they have to be savvy on how to place an offer. They know the ins and outs of offers, negotiations, and closing.

They can analyze the home listing and verify the worth of a home. They can inform you on whether the asking price is too high or too low and what negotiations you can bring into play.

While they aren’t financial advisors, if you already have a real estate agent, getting their advice is going to help you out.

Mortgage Lender

It’s important to be especially choosy when selecting a mortgage vendor. You want someone that is going to look out for your best interests and be able to help you out when you have questions.

If you just go with a mortgage lender that has the best rates and don’t take personality into account, it may come back to haunt you. Find someone that will go out of their way to give you one-on-one support and establish a valuable relationship with you.

Attorney or Lawyer

A lawyer is often provided by your real estate agent at your home closing. In the case that it isn’t, you’ll want to hire one to help you go through all the paperwork. It’s important that you know exactly what is being said in the contracts and make sure there isn’t something you don’t agree with.

Having all of these financial advisors on your team, or just one assists you in buying a house and ensures you get the best experience possible.

Are Your Finances Prepared?

Now you have some actionable steps you can take to determine if your finances are ready enough to purchase a home.

If they aren’t, you can start with getting your credit report score and combing through it to see what you can change. Hire a financial advisor to help you through this process or take a look at Jeeves Realty champions gate resort.

Having your finances in order before looking at homes will make this process and easier one! If you’re interested in learning about where you can get affordable furniture after you buy a home, read this blog now.