Category Archives: Finance

Home Loan Mortgage

Boosting Your Dedication to Purchase Your Dream House

Home Loan MortgageYou have now set your sights on looking for your dream home. As this is another milestone in your life, you need to be fully prepared for it. Here are just a few suggestions to make purchasing your future home a fulfilling experience instead of a hassle-filled nightmare.

Pay Off Your Debts

Unless you plan to pay your home in cash, you’ll need to improve your credit score to get a better chance of being approved. Check for any outstanding debt, which can be cleared immediately. Reduce the use of your credit card when making purchases. All in all, try not to apply for any other loan until you’ve been approved for your mortgage.

Choose Your Mortgage Wisely

Your chance of being approved for a home loan is also dependent on what kind of credit package you choose. Find the right professional and licensed realty company and ask for expert advice on what kind of payment scheme will give you a better approval rate. Whether it’s a standard mortgage package or an FHA 203k loan, Primary Residential Mortgage, Inc. reminds that knowing what will fit your financial capacities would make your application a lot easier.

Reduce Your Expenditures

Simplify your lifestyle even before you start paying mortgages, realty taxes, and property maintenance. Minimize spending on leisure and entertainment. Consider cooking healthier meals and bringing them to work. Look for options to reduce your utilities and fuel cost.

Build Up Your Savings

This factor can add to your chances of approval, so start saving up as soon as you’ve decided to buy a house. If you still don’t have a private bank account, apply for one immediately. Whatever you’ve saved in cutting down on costs, you should automatically put it in your savings account. Set goals on how much you want to save within a year and stick to it.

It’s possible to see your dreams come true if you are truly committed to it. Just remain steadfast in your plans and be disciplined at all times. Your prize will be that new house that you can truly be proud of.

Woman handing the pen to sign loan document

Asset-Based Lending: Is It Right for Your Business?

Woman handing the pen to sign loan documentIf your cash flow problems can’t wait until your customers pay, you can use an asset-based lending product, to boost your company’s liquidity immediately. In this loan, you can use your receivables as collateral, and get a cash advance equivalent to up to 90% of your chosen unpaid invoice or batch of invoices.

Asset-based financing options from TAB Bank give you the luxury to forget about repayment schedules and get most of the money owed to you before your debtors pay up. However, it’s not all roses. It has restrictions and can be prone to misuse.

To know whether you should take a loan secured by your outstanding invoices, or other assets, answer these important questions:

How Much Is the Amount of Your Receivables?

Asset-Based financial products have a borrowing base of $700,000, which could go as high as a few million. This is why financing facilities, like banks, only offer them to more established companies. If the value of your receivables doesn’t meet the minimum requirement, consider invoice factoring instead, which involves selling your invoices to a third party.

What Do You Need to Funds for?

Financial experts would tell you that it only makes sense to apply for an asset-based loan to get on-demand funds. It’s a handy solution when your company suddenly becomes cash-strapped on particular occasions. But if you need an ongoing source of funds, just like a line of credit, invoice factoring might be the better choice.

Can You Handle the Costs?

Compared to factoring facilities, asset-based financing providers charge far less. But then again, you might wind up paying for more if you finance single invoices occasionally. The lack of a long-term contract would make the setup and maintenance costs to add up and lighten your coffers ultimately.

While the fundamentals are the same, the features of asset-based loans might vary from lender to lender. Understand how the product works to use it to good effect and spend the least amount of money.

4 Ways to Have Better Credit Score

Credit ReportThe credit score is one of the most important factors you have for you to be able to access financial assistance from banking institutions. If you have a good credit score, you are more likely to be able to have your credit card or personal loans approved.

A bad credit score is not the most helpful thing to have when you have financial difficulty. The following are ways you can do to improve your credit score.

Get a mortgage

It may seem like getting a mortgage is the antithesis of boosting your credit score. But it actually is quite helpful especially when you have a history of paying your monthly dues on time. Apart from that, it also has tax benefits, reins in the financial impact of asset depreciation and lessens the risks.

Get a Utah mortgage from firms such as Altius Mortgage Group to get these advantages.

Eliminate credit card balance

One of the things considered in determining the score is the balance of your credit cards. If you have money to pay these balances off, settle them right away to have better chances of having an improved credit score.

Put old debt on report

If you were able to pay off your old debt on time, it would be positive for you to put that on your credit report. This will improve your chances to get a loan approved.

Pay your bills on time

Always pay your bills on time. This is to ensure that the credit score is not too low and so that your credit history is flawless.

Whether you are going to apply for a loan to help you with financial difficulty or you are trying to make a big purchase, a good credit score will do a lot in giving you financial security. This should be enough reason for you to make it an endeavor to have a better credit score.

Is it Hard to Secure a Construction Loan?

Money, calculator and contract focused with house blurred backgroundIf you value customization over convenience, building your home from the ground up is better than buying an already existing one. New home construction projects are actually not uncommon in the North Star State. Despite the additional costs, many homeowners choose to build instead of buying to bring the home up to code successfully. Like a blank canvas, a vacant piece of land offers countless design possibilities.

The only challenge to those who tackle new home construction in Lakeville, MN, and nearby areas are obtaining a favorable mortgage to fund your project. Here’s why it can be hard to secure a construction loan:

Stakes Are Extraordinarily High

Most lenders are reluctant to loan a considerable sum of money for a property that doesn’t exist yet. The construction process is full of uncertainty, making it an extremely risky endeavor. If things don’t go as planned, the lender might find it difficult to recoup the money even if the piece of real estate is used as a collateral. In the end, absorbing significant financial losses is highly probable.

Strong Lender Relationship Is Important

Considering most lenders don’t aggressively market high-risk construction loans, the ones that are likely to provide you with the funding are those that are already known to you. Talk to financial institutions, such as banks and credit unions, which you’ve already established relationships with. Not only they increase your chances of approval, they are likely to offer lower interest rates as well.

Large Down Payment Is Necessary

Even if you manage you find a willing lender, don’t expect the mortgage to finance the entirety of your project. To reduce the risk of your new home construction project, the lender may only offer to cover 80% of the expenses — or even less. Be ready to put down at least 20% of the project’s overall cost to get it off the ground.

Don’t let the scarcity of construction loan providers discourage you from realizing your goal of building your dream home from scratch. Take your time to explore the available financial products and study your options to identify the most favorable ones.

How Business Owners Can Save on Overhead Costs

A money box and electronic calculatorAs a business owner, you should always find ways to reduce your overhead costs without sacrificing the quality and value of your services or products. There are ways to reduce your operating expenses while maintaining every aspect of your company that keeps customers happy.

Consider a Modern Workspace

If you operate a smaller business, consider the benefits of a modern workspace. A virtual workspace allows you numerous modern benefits, including a reputable address and phone number, and even a secretary who will answer customer calls for you.

Contact a company that offers virtual office franchise services in your area for assistance, such as Venture X.

Sublet Your Extra Space

If you have extra office space that goes unused, it is a waste of resources. Unfortunately, many new startup companies find themselves locked into 3 or even 5-year lease terms, making it impossible to move on and find a space that is better suited to their needs.

Fortunately, you can reduce overhead costs and wasted space by subletting the unused office space.

Switch to Electronic Paperwork

It costs money to store paper files. Paperwork takes up space in your office, and you lose time and money when you have to dig through stacks of paper to find what you need. Rather than investing in a space with a storage space or digging through files, switch to electronic paperwork.

Aside from reducing overhead costs, you will also save at least a few trees.

Control Purchases You Make

Another way to reduce overhead costs is to reduce the purchases you make. Evaluate every purchase made to determine if it is necessary. If you find that it is something you can go without, skip it. Also, look into alternatives to what you want to buy to see if there is a cheaper option.

Controlling your purchases can save you money and reduce overhead costs greatly.

You will find that once you reduce your overhead costs, your profitability will increase. You need to improve your profitability to succeed as a business owner in this day and age.

Buying a Boat on Black Friday Offers More Than Just Discounts

mature man driving speedboatBlack Friday may be over and for those who decided to buy a boat, the advantages of doing so on this day involve more than just discounts.

Aside from saving money, shopping for a new boat in late November often allows you to choose from different models. That is because most retailers seek to clear their summer inventories before stocking on the following year’s new models.

Inventory sale

Since most sellers aim to clear their inventories to make room for new boats, this will prompt them to offer attractive prices that you otherwise were unable to afford during the boating season in the middle of the year.

Even if you live in states such as California where there are no off-peak times, you may still find several dealerships that want to get their hands off old models. In states with cold weather, a purchase during the holiday season provides you with more time to customize your boat before using it in spring. Take note that you should not use basic household products such as bleach to maintain your boat, which seems to be a common practice.

First dibs

If you have some money to spare, you may also be able to afford new models that are due to be launched in the following year. The winter season often marks the start of boat shows nationwide. Boat manufacturers aim to take advantage of holiday spending by offering discounted top-of-the-line boats.

Boat shops also sell various accessories, including a custom boat cover at an affordable cost. The cost for these ancillary products also goes down during Black Friday. If you dislike shopping along with many people, you can take relief that not many Americans go to boat shops on this day.

With all the advantages of buying a boat during Black Friday, do you think there are other days that are better to make a purchase?

Types of Adjustable Rate Mortgages

MortgageThere are various mortgages on the market for homebuyers. One of the popular options is an adjustable rate mortgage (ARM), which is also known as a floating rate or variable rate mortgage.

In an ARM, your interest rate varies over the life of your mortgage. The rate is reset periodically based on a scale known as an ARM margin. Depending on your mortgage lender in Lake Oswego, an ARM can take different forms.

Here are the most common types of adjustable rate mortgages:

Hybrid ARM

This is a mix of adjustable and fixed-rate period loans. Hybrid ARMs have a fixed interest rate for a specific period after which the rate varies. They are often advertised in two digits. The first figure indicates the period for a fixed interest rate while the second indicates how often the rate will change. A 5/1 loan, for instance, means a fixed interest rate term of 5 years and an annual adjustable rate after that.

Interest-Only ARM

The payment plan of an interest-only ARM allows the borrower to pay interest only for a specified term. The loan has small monthly payments initially, but these increase once you start repaying the principal and interest. The interest rates adjust throughout the loan term.

Payment-Option ARM

This option allows the borrowers to choose the best payment option for them. A conventional payment option means you pay the interest and principal over a set period. You can also opt for a limited payment. With this option, you may pay a lesser amount than the interest you owe. The balance is however added to your principal; therefore, increasing your loan amount and subsequently, your future monthly loan payments.

Depending on prevailing interest rates, you might end up with low-interest rates in an ARM. The initial interest rates are also lower than other mortgage rates. In addition, you can make higher loan payments during the fixed period to reduce your principal.

Understanding Your Credit Score and Mortgage Application

Credit Score ReportYour credit score is one important factor that can affect the interest rate of your mortgage and your eligibility to get a loan. You can improve your chances of getting a better mortgage by boosting your score, staying current on your payments, and paying some of your debts. Note that some portions of the score depend on how much debt you have and whether or not you pay your bills on time.

Where Should You Start?

Know your score by getting a free report and checking it for errors. If you find some, submit a request to the fix the mistakes. It is ideal to do this before you apply for a home loan, as investigating disputes can take up to 30 days or more. According to the Consumer Financial Protection Bureau, reporting agencies will notify you of the results five days after they finish the investigation.

Should You Apply Now?

Lenders offering mortgages in Utah note that if your score is 740 or more, you can qualify for the best interest rates. Good credit score means saving thousands on your home loan. If it is, however, below 700, you will have to pay more interest on your mortgage. Note that many lenders prefer borrowers with a stable history of on-time payments as well as low balances.

Is it Better to Apply in the Future?

If you have a low score, you can put off buying to save more money and improve your credit rating. Good credit habits include paying credit card debts, paying bills on time, and keeping balances low. If you keep up with these practices, you can see an improvement in your score. Note that improved credit can help you save up to $100 on a normal monthly loan payment.

Focus on improving your score to get better loans and rates. Be sure to avoid making large purchases on credit before you apply for a mortgage or close on a house, as this can negatively affect your chances of getting a loan.

4 Quick Tips For First-Time Homebuyers

Old Couple In Front Of The House With Sold SignFor first-time homebuyers, buying a home can be a challenge. The challenges that go with buying a house go beyond choosing one with the best interior design and curb appeal. Check out these four quick tips on how to get a good deal.

Choose the right type of mortgage

Having the right type of mortgage is important. Work with the best mortgage company in Utah to get the most convenient rates and terms at the lowest closing cost. Your lender should provide first-time homebuyers quick and efficient ways to move in.

Mind your credit rating

Credit score and rating are two important factors when taking a mortgage loan. First-time homebuyers should keep their credit scores on the good side. They should aim to improve their credit rating and correct any errors that might affect their credibility as borrowers.

Secure the down payment early on

As a rule of thumb, first-time homebuyers should start saving early for their down payment. Paying a higher down payment can lower the costs. If this is not possible, there are plenty of down payment options, such as the federal mortgage programs and other similar programs provided by the state or the county.

Consider quality over price

In some cases, cheaper houses turn out to cost more due to major repairs and maintenance that do not become visible after the move-in period. While it’s advisable to save some cash for the move-in and do some basic shopping, it would be better to spend less on maintenance and repair.

First-time homebuyers should do their research to know what type of property is best for them. Looking for several mortgage options is also important to help you compare the rates and find the most convenient one.

Do You Know Enough About Insurance?

A couple discussing their insuranceFor many people in the United States, insurance is often needed for most everything in their daily lives. From homes, vehicles, to any kind of property, insurance is an essential feature of their daily life. However, the experts at Haffner Law say it’s essential to find the right insurance company. In Los Angeles, only lawyers with an expertise in bad faith insurance cases can help you.

Why do you need insurance?

Insurance is a way of being able to manage particular risks. Since nobody knows what the future holds, there is always the possibility of loss. A potential loss can affect you financially, but when you have insurance, you pass the cost of that loss to your insurer. Of course, that coverage also comes with a price. Your insurance company looks for secure forms of investment to make sure your money grows, and that the company can afford to pay your claim.

What can insurance cover?

There are different insurance policies to cover different needs. For example, when you buy a house, your mortgage lender is likely to require that the house should have insurance coverage.

Auto insurance lets you drive your vehicle. Without it, you have to pay out of pocket for repairs in case of an accident, legal costs, etc. Without insurance, if your car gets stolen, you will not be compensated. With insurance, you can receive payment for the market value of the car at the time it was stolen.

The risks of ownership of a business can be covered by insurance. Insurance can cover healthcare costs, as well as provide for your family in case of death or disability.

What happens if the insurance company refuses to pay?

If you file a claim and the insurance company refuses to pay out, you may have a case against the insurance company. This situation is called “bad faith insurance”, in which the insurance company refuses to pay what they owe you. You need a bad faith lawyer in Los Angeles to help recover what is yours.

Insurance is an important part of living with peace of mind. Think about keeping yourself, your properties, and your family safe.