Money is a touchy subject, and our attitudes about it and our relationships with it harken back to things we learned as children. As such, far too many soon-to-be-married couples avoid specifically discussing it. Maybe they’re embarrassed by their lack of personal savings or their amount of consumer debt, or perhaps they grew up in a house where money matters weren’t out on the table. And then the lovers wed, only to discover that one or both spouses is saddled with massive debt, collections, or even a bankruptcy. This can delay plans to buy a house or start a family and create a damaging rift between the couple.
So you’re ready to buy a new car. That’s always an exciting move, but before you jump in, there are some important considerations to make regarding selling your current vehicle. The easiest solution is simply to trade in your car at the dealer if that’s where you’re making your purchase. However, going that route has unique pros and cons, and you won’t get the most money.
Are you looking to get rid of your current vehicle? You’ve got several options: You could put a “for sale” sign in the window of the vehicle and hope an interested passerby spots it. You could list the car in the automotive classifieds or on Craigslist and field calls and emails from potential buyers who will likely haggle over price. Or, you can simply trade in your auto to a dealer and purchase a new one.
Buying a house isn’t cheap, and cash flow and income problems can result in a missed opportunity to buy your own place. Plus, getting a mortgage loan has become more expensive in recent years, as the majority of lenders now require a down payment of approximately 5% of the sale price. But this isn’t the only big expense associated with ownership – buying a house also involves closing costs, which can equal 3% to 6% of the mortgage balance.
Whether you’re a young adult searching for your first apartment, or a seasoned renter in need of a new place, looking for a new apartment can be an exciting process. You may already know what you want in an apartment, and you probably have your heart set on a specific area or neighborhood.
However, some aspects of finding an apartment and renting are not exactly enjoyable. And while renting an apartment is often cheaper and quicker than buying a home, getting approved for a rental isn’t always easy. However, there are a number of things you must keep in mind, as well as steps you must take, to help make the process simpler.
When I bought my first house a few years ago, I quickly discovered that there’s nothing cheap about the process. With closing costs, the down payment, the home inspection, and the home appraisal, you can wipe out your savings before you even receive the keys to your new home.
These expenses can be particularly difficult to control for first-time home buyers, who may be naive to the process. However, by educating yourself, you can avoid common mistakes and potentially save yourself a great deal of money.
First-Time Home Buying Mistakes
Living paycheck-to-paycheck greatly impacts your financial choices. You may face high credit card balances but have no way to pay down the debt, or you may wish to save for college or retirement but barely be able meet your monthly bills. However, if you land a new job that pays well or obtain an additional income source, the extra money could provide enough disposable income to pay off your debt or start saving. But which do you do first?
Opinions among financial experts vary, and there are benefits to both approaches. Consider the various reasons for both methods to figure out which would work best for you.
Whether it’s going to the movies or checking out a new restaurant, I’m always looking for an excuse to get out of the house and explore the town. However, if I don’t keep my personal budget in check, my spending can easily spiral out of control, and paying off my credit card bill at the end of the month becomes an unpleasant experience.
Between unemployment and higher gas prices, I can understand why some people might cut entertainment entirely from their spending. But before you swear off fun altogether, consider ways to trim your entertainment budget without sacrificing it.
There is no shortage of decisions to be made when applying for a new mortgage loan. You have to select a lender and decide between a fixed or an adjustable rate – and then you must make the biggest decision of all.
Paying on a mortgage loan for 30 years is typical, and in fact, many homebuyers assume they need to accept a 30-year mortgage term. However, this standard mortgage length is not written in stone, and you can choose to pay off your mortgage sooner with a 15-year loan.
Advantages of a 15-Year Mortgage
Many financial experts report that the average household carries at least $10,000 in credit card debt. In addition to this debt, many people take out upside down car loans and overextend themselves on home purchases. While debt is generally an unfortunate part of life, if you decide to buy a house or car, it shouldn’t be an excuse to rack up huge credit card bills or take out unnecessary loans.
Some people don’t know the first thing about getting a mortgage loan. They hear reports of dropping interest rates and lower home prices and hastily decide to jump into home ownership. But the process of getting a home loan differs from getting a car loan or renting an apartment, and applicants who don’t recognize these key differences are often disappointed when a lender denies their mortgage loan application.
Educating yourself is key, and there are a number of ways to avoid this heartache and disappointment when applying for a mortgage loan.
Getting Your Mortgage Loan Approved