Debra Parker's Blog
Getting into physical shape takes effort and consistency. You will need to outline the steps it will take to get to your goals. A healthier financial life takes the same thing. When it is your goal to take steps towards having a healthier relationship with your money, it is good to get something written down. If you do not know where to start, do not worry. Start by considering what you would like to achieve in the next 90 days. This time-frame will give you enough time to take a few small steps toward progress and then evaluate what to continue to work on and what to adjust.
Personal finance experts recommend tracking your spending for 30 days so you can see where your money is going. If you have one income source and one bank account that all your expenses go through, go back through the last couple of months and use that information to track your spending. You may not completely realize how frequently you are spending money on convenience items or extra trips to the grocery store just for one item but coming home with ten. Maybe you have subscriptions or memberships you are no longer using. When you track all the places your money goes over a period, you can then decide where adjustments will help you achieve your goals. In today's world of online transactions, it is easy to spend money with little thought or intention. You may have almost all your bills on auto pay or your bank’s bill pay option making that part of your financial life easier to manage. You may also be unaware of where you could save money because so many bills are on automatic.
Take the time to outline a few goals. An emergency fund is a good idea. Most of the population is only one to two pay cycles away from disaster. Having even a small amount in savings can help you keep your financial life predictable. Life will throw you curve balls and when you can meet those without throwing your goals off track, you will feel empowered and encouraged. Do not let that thought overwhelm so it keeps you from starting where you are with what you have. The realization is that you are ensuring that you will end up with financial health down the road.
Write what you think your monthly total expenses are and then go total up the last 30 days of spending. Were you close?
Myths are lies that are perceived to be true. Like every other industry in the world that has myths surrounding them, the real estate industry has its tales. People have ideas in their head about the mortgage industry that are not true. If you are buying a house and all you feel is happiness, then you might be working with a myth you heard and perceive as being real; same also applies if you are buying a home and all you feel is dread.
Below are few mortgage misconceptions that many buyers and sellers mistake for truth:
You Need A Near-Perfect Credit Score
It's essential to have a high credit score, but lack of it doesn't mean you are out of the game. Even if you have some credit blemishes but always ensured you paid bills, you probably won't have a lot to worry. If you are bothered about your credit score, other factors could offset adverse credit. Depending on your loan type, each situation is analyzed differently.
A Down Payment of Twenty Percent Is Needed
Compulsorily providing 20% of the purchase value of the home as a down payment is also a myth. Making a down payment of 20% is helpful in the long run, especially to avoid paying monthly insurance to a private mortgage. Presently, mortgage companies and banks provide loans to individuals without requesting for a down payment close to 20%. It all depends on your financial situation.
A House Is an Excellent Investment
A home could be considered as a long-term investment if you do not intend living in it – but then, nothing in the real estate business is guaranteed. If you purchase a house to live in for several years, it's better you don't think about it as a financial tool for padding your investment or retirement plan. Buying a house is part of your net worth, but you shouldn't count on getting a return after investing much money into the home. Something most home buyers fail to understand is that the value of houses appreciates at a shallow rate and can have negative growth for long periods.
The House Belongs to You After You Get the Keys
It's one of the myths that homebuyers assume is true. When you purchase a house via mortgage; if you do not have equity or a significant amount as down payment, your bank owns your home. For as long as it's required to finalize payment for your home - including interest, the house doesn't belong to you.
The American Dream
In as much as owning a home is supposed to be the American dream; it can also be the American nightmare. Acquiring a home via a mortgage and not being able to meet up with payment can turn out to be your worst nightmare. Owning a home is a decision that requires thorough thinking without jumping into any decision
Buy a house if you can afford it but be sure you have your facts right.
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487 Washington St, Easton, MA 02375