Even the most savvy money handlers can fall on hard times when unexpected circumstances push your budget beyond its limits. These ideas may help you emerge from a tough financial situation and get back on track.
How to Conquer Tough Financial Times
(Family Features) Even the most savvy money handlers can fall on hard times when unexpected circumstances push your budget beyond its limits. These ideas may help you emerge from a tough financial situation and get back on track.
Cut non-essential spending
Start by taking a close look at where your money goes by listing every bill you pay each month and the amounts you pay. Then include all the day-to-day extras, such as eating out, shopping and other entertainment. If the total of your bills and extras don’t match or exceed your income, it’s time to make cuts, and the extras are the best place to start.
Eliminate overwhelming debt
Fortunately, Smith recalled a conversation with her neighbors John and Corinne Tesh, owners of Citygate Homes LLC in Greensboro, North Carolina, an independently owned and operated HomeVestors franchisee.
The Tesh’s toured the house and felt it needed a lot of renovations, but they knew it would sell quickly after they rehabbed the property because of the neighborhood. They made an offer to purchase the home in cash. After the renovation was complete, they listed the home and received a full-price offer the first day on the market.
Extending their sensitivity and kindness, HomeVestors – largest home buyer in the U.S. with more than 65,000 houses bought since 1996 – hired movers for Smith and paid for six months of storage for items that did not fit in her new place. This allowed Smith to move without the burden she was expecting, including costly, time-consuming repairs and showing the home to potential buyers.
Learn more about the real estate resources available to help you overcome a difficult financial situation at homevestors.com.
Photo courtesy of Getty Images
(BPT) - You’ve saved enough for a down payment, your budget is looking good and you’re earning steady income. You’re at the point in your life where you feel confident you’re ready to buy that first home. Congratulations! Buying a home is one of the most exciting and rewarding purchases you’ll ever make. However, if it’s your first time shopping for a mortgage, you may not be super knowledgeable about some of the financing terms you’ll hear, including “interest rates.”
If you’ve used any kind of credit before, you probably have a basic understanding of interest — it’s the money lenders charge in exchange for allowing you to use their funds to make a purchase. While the basic concept is simple, mortgage interest rates can be complex and differing.
“Many factors go into determining the interest rate your lender will offer you,” says Eric Hamilton, president of Vanderbilt Mortgage and Finance. “By understanding the factors that influence your interest rate, you can obtain the best possible mortgage plan and get into the home of your dreams quicker.”
A variety of factors determines your interest rate, including:
* Down payment — Just as you put money down on a new car, mortgage lenders like to see down payments from homebuyers. A down payment not only reduces the total amount you need to borrow, but it also shows the lender you are able to manage money. Different lenders require different amounts for a down payment, but most would likely view 10-20 percent of the home’s purchase price to be a good down payment.
* Collateral — This is the property you agree to “put up” in exchange for the loan and serves to protect the lender against a borrower’s default. If you’re buying a manufactured home, you can collateralize the loan with either the home itself or with the home and a piece of land together. For site-built homes, the loan would be collateralized with the home and land together always.
* Loan amount — The amount you need to borrow is calculated by taking the purchase price of the home, less your down payment, and adding any other expenses that will be financed as part of the loan, which could include closing costs, discount points and third party fees.
* Credit score — Lenders will want to review the credit reports and scores for everyone who is listed as a borrower on the mortgage application. With your written permission, the lender will obtain your credit report from a credit reporting agency. Generally, the better your credit score is the more likely you will be approved, plus qualify for the best available interest rate from the lender you choose.
* Origination cost — This is the amount the lender charges to process the loan application, which includes gathering and reviewing all loan application documents, underwriting and closing your home loan. This expense typically appears on your loan documents as a “loan origination fee.”
“After you apply for a mortgage, the lender should be able to give you an idea of the interest rate you’ll likely qualify for,” Hamilton says. “With that information, you can use a monthly mortgage payment calculator to estimate just how much the mortgage payment will be each month. Knowing the monthly payment can help homebuyers make better decisions about budgeting, savings, spending and investing.”
To learn more about mortgages for manufactured homes, visit www.vmfhomeloan.com.
Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, ( http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), Illinois Residential Mortgage Licensee, Licensed by the NH Banking Department, MT Lic. #1561, Licensed by PA Dept. of Banking.
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