Many millennials are now entering the real estate market and
have different needs than the generations before them. Here are some home buyer
must-haves that may surprise you about this generation.
Location, Location,
Location
Some things remain the same across all generations; the
importance of location. Research has shown that millennials generally want to
live close to work and things to do. This is a huge deciding factor for them
when choosing a home.
You would think that urban areas would accommodate this
request more than the suburbs, but this may not be 100% true. Those between the
ages of 25-34 are actually less likely
to live in urban areas. This illustrates that an urban lifestyle may not always
be the perfect fit for this generation.
Technology
Automation is the way of the future. It allows for
millennials to free up more time to do the things they want to do. When it
comes to house hunting, they prefer almost everything to be automated.
Millennial buyers are interested in smart homes with the
most advanced technology. This generation is the most digitally engaged,
therefore, they want wireless thermostats, smart security systems, wireless
speakers, Wi-Fi cooking ranges, smart locks and eco-friendly automated light
and shade controls.
Low Maintenance
In the past, Gen-Xers were looking for fixer uppers. HGTV
was leading the charge with encouraging home buyers to buy a house and fix it
up. With their busy lifestyles most millennials are now choosing to go against
that norm. They want something that is move-in ready and something that doesn’t
require a lot of maintenance. They generally would rather spend their time with
friends or traveling than work on their home.
Social Media Presence
Not surprisingly, millennials do a fair amount of their
shopping online and house hunting is no different. They’re more likely to
browse the web than visit homes they want to buy. They can see everything they
need right from their comforts of the couch. If you want to sell your house to
a millennial, it may help to have a dominant social media presence in order to
get their attention. If you think just a few photos will fly, you’re mistaken.
They need to see every room of the house.
Quality of Life
Millennials are slowly changing the housing market. Many
desire some different criteria than past generations. Their priorities, to the
way they shop, are different now more than ever. True value for them lies in
the quality of life. They don’t want to give up their lifestyle to have their
dream home.
If you’re interested in selling your property to this
generation, get a realtor that can post your house on social media accounts,
help you make your house move-in ready with what is on trend for millennials,
and make sure it is in the ideal location for food and social activities.
https://texasloanstar.com/wp-content/uploads/2019/05/Copy-of-Untitled-Design.png315560Jessica Lakehttp://texasloanstar.com/wp-content/uploads/2015/08/tls_logo_334x123-300x110.pngJessica Lake2019-05-07 20:08:222019-05-07 20:33:34Millennial Home Buyer Must Haves
It takes a keen understanding of the home buying process to
be good at negotiating. Be sure you have it down before you make any offers on
homes. Especially, with the market heating up for Summer. Or better yet, rely
on your real estate agent to do the negotiating for you, but you should always
be part of the process. Realtors are professionals in the housing market and
have the best tools for you to use when looking for a new home. Here are some
tools and information the best negotiators use:
CMAs – Comparable
Market Analysis
Once you’ve found a home you want to buy, the first step in
negotiation is to assess the fair value. CMAs show what similar properties in
the area have sold for. Your real state agent will have access to CMAs and can
share them with you.
Generally, CMAs list houses in a particular location that
are currently on the market, have sales pending, have expired from the market,
or have sold. It is the “sold” properties you need to look at because the list
price and the offer aren’t necessarily the best indicators of what the house
will sell for. There can be a big discrepancy between those two figures.
The CMA often gives you general information about the houses
being compared: number of bedrooms and baths, square footage, the listing price
and the sold price. Make sure you focus on houses similar to the one you’ve
selected – both in description and location. The more recent the data, the better.
Condition
Once you have the CMA, drive by all of the properties listed
in the sold column. Condition has a lot to do with the ultimate selling prices
of a house. Does the home in which you’re interested shine above or fall below
those sold? Make a realistic comparison of condition and discuss with your
realtor, then adjust your thinking up or down according to what you see.
Extra Amenities
Does the house you’ve chosen have more or fewer amenities
than comparable homes? Although amenities won’t affect the value as much as
location or overall condition, they can be a factor. Be wary, though. An
outdoor hot tub, for example, may have been a major motivating factor in your
choice of a house, but it won’t add much to the value of the property when you
resell.
Motivation
A good negotiator gathers as much information as possible on
the house and the sellers. The owner’s reason for selling is at the top of the
list. Does he or she have to sell? Want to sell? Just throwing in on the market
at a high price to see if it’ll move? If your agent representing you in the
transaction is a buyer’s agent, they can try to secure this information for
you. If you’re working with an agent representing the seller, they typically
can’t disclose this information without the seller’s consent.
Preparation
Great negotiators always prepare themselves. The most
important factor is your frame of mind. Never let emotions override common
sense during negotiations. Set a realistic limit and stick to it. If the price
isn’t to your liking or is outside your budget, you must always be willing to
walk away. In addition to your emotional frame of mind, your finances should be
in order. An offer carries more weight if there are no dangling financial
problems and if you’re pre-approved for a mortgage.
Realism
Make a realistic offer. Nothing offends a seller more than a
low-ball offer on a house that is fairly priced. Often, negotiations will stop,
rarely to be revived again.
Call us today to get pre-qualified so you are prepared to negotiate on a home!
https://texasloanstar.com/wp-content/uploads/2019/04/realtor-3182376_960_720-1.jpg720948Jessica Lakehttp://texasloanstar.com/wp-content/uploads/2015/08/tls_logo_334x123-300x110.pngJessica Lake2019-04-30 20:59:082019-04-30 21:04:08How to Negotiate the Best Price on a Home (With Your Realtor)
There are some thing to keep in mind to ensure that your home buying process is simple. Here are six tips to help you feel confident when applying for a new home loan.
1.Pay All Your Bills on Time
When Applying for a home loan, it’s important you have good credit history, which includes paying all your bills on time, every time. A late payment may negatively affect your credit score and that can play a part in whether you’re approved financing and ultimately, the rate and term you may receive. Even after your home loan closes, it’s still important to pay your bills on time.
2. Be Wary of Employment Changes
A stable employment history is
important when preparing to buy a new home. After all, you have to show that
you have the stability and continuity of income to repay the loan.
Requirements may vary based on the type of employment you have, but for most salaried borrowers, there is no specific time on the job required. Generally, lenders will request to review at minimum a two-year work history.
3. Do You Own Research
With so many home loan options available, it may be difficult to determine the ones that’s right for you. While your lender will work with you to find the best option, it’s important that you learn the basics about fixed-rate and adjustable rate loans.
4. See What You Can Afford
After you’ve taken the time to do your own research, it’s time to see how much you can afford to spend on a home. For example, most budgets call for earmarking 28% of your post-tax income for a house payment, including your homeowner’s insurance and property tax.
5. A Few Things to Consider
What options are available in
rates, points and fees (and yes, there’s more than one rate).
Hold off on opening any new
accounts.
If you’re looking for a new home, there’s a good chance you’re going to be looking to furnish and decorate it as well. While that “5% discount on all furniture purchases” credit offer may look good at the moment, it’s best to put off opening any new credit accounts or lines of credit until after your loan has closed. Taking on more debt could impact the type of loan you receive or change the one already in process.
6. Hold Off on Closing Any Existing Accounts
Each item on your credit report
contributes to your credit history or the record of your responsible repayment
of debts. The longer your credit history, especially with a good payment
record, the better. When applying for a new home loan, don’t close any existing
accounts, even if they have a $0 balance.
Following these tips may help set
you up for a success with a smooth home buying experience. Call us today with
any questions you have! 713-802-0606
http://texasloanstar.com/wp-content/uploads/2015/08/tls_logo_334x123-300x110.png00Jessica Lakehttp://texasloanstar.com/wp-content/uploads/2015/08/tls_logo_334x123-300x110.pngJessica Lake2019-04-23 14:37:452019-04-23 14:37:466 Things to Know Before Applying for a Home Loan
Knowing what to expect when your house goes up for sale can
be half the battle of getting through the transaction. Most people are a bit
excited when they put their house on the market. Hopefully, they are moving up
to a better home or off to new challenges in another city.
Here’s a look at what you can expect once you sign a listing
agreement:
Out of the gate
The first thing your agent will likely do is place your home
in the local Multiple Listing Service (MLS). This notifies all other agents in
the area that your home is for sale. Soon, a for-sale sign will appear in the yard
and a lockbox will be attached to your house, most likely on the front door. The
lockbox allows local agents access to the house when you aren’t home. It may
seem a bit unsettling, but it’s important to allow agents to show your home
when you are away, especially in a slower market. If you don’t have a lockbox,
many agents will put you at the bottom of their clients list of homes to see
because it’s a headache to track down your agent, who must track you down to find
out when you’ll be around, which may not fit into the buyer’s schedule.
Open house
Your agent will want to have a couple of open houses as soon
as possible, which is why it’s not recommended to list your house until everything is ready for a good showing.
This means you’ll likely be swamped with last-minute touch-ups and clean-ups to
get the house ready.
It is best if you are not present during open houses because
buyers want the freedom to peek into closets and make comments. That’s
difficult for most people to do it you are present. When potential buyers come for
a viewing, try to step outside while they tour your house.
Neat freak Keeping your house in tip-top shape, especially if you have kids and
pets, is one of the more difficult parts of selling your home. But remember,
buyers will walk into your house and try to imagine
themselves living there.
Most people don’t have the vision to look past toys
scattered throughout the house, dirty dishes in the sink or pet food spilled on
the floor. It doesn’t matter that they probably live the same way.
http://texasloanstar.com/wp-content/uploads/2015/08/tls_logo_334x123-300x110.png00Jessica Lakehttp://texasloanstar.com/wp-content/uploads/2015/08/tls_logo_334x123-300x110.pngJessica Lake2019-04-16 15:57:442019-04-16 15:57:45What to Expect After Listing Your Home for Sale?
Imagine that you’re nearing the closing of your home loan.
And what a process it has been. Pre-approvals, house hunting, income
verification, inspections, appraisals and so much more. For some, the amount of
paperwork feels daunting. But if you’ve prepared a bit ahead of time, you’ll
keep a cooler head while your eyes stay on the prize of the American Dream.
Closing a home loan can be a whirlwind activity, with a
frenzy of dozens of documents to be signed and verified, and instructions of
each one coming in from lenders and lawyers with the verbal rapidity of an
auctioneer.
Each document is significant, based on its own role in the
loan package. A prime example is the Closing Disclosure. There are numerous
documents spread between real estate agents, lenders and appraisers but the
Closing Disclosure is one of the big dogs you’ll encounter when it comes to
closing day.
This is not to be confused with the Loan Estimate, a
three-page document covering general information about the loan and property.
While not part of closing documentation, the Loan Estimate breaks down you
closing costs into a detailed explanation of origination charges (to cover
lender expenses), third-party charges like taxes and homeowner’s insurance, and
the estimated amount of cash needed at closing.
So, what exactly is the Closing Disclosure? It technically
covers the same points as the Loan Estimate, but includes additional
information regarding the escrow component of you loan. To understand the
Closing Disclosure is to know what escrow is. Escrow is money that your
mortgage lender puts into a separate account that pays your future property
taxes and insurance costs. It’s common to have escrow with a mortgage, but
isn’t always necessarily required.
The most important thing to be aware of is to receive and
sign it three days before closing, which is required as part of the new
Dodd-Frank guidelines. If it is not signed and returned to the lender within
that time frame, the closing will be delayed.
And this is quite probably the most significant part of the
Closing Disclosure. It’s one thing to understand the terms outlined in it-which
should be pretty familiar because you’ve likely discussed this already with
your real estate agent-but it’s just as important to understand the details as
it is to promptly sign it. The last thing anyone wants or needs is a surprise
delay arising at the closing.
Understanding the terms of the Closing Disclosure will help
lessen your concerns before going to the closing.
Hopefully, a seamless home loan closing is a reality when
you understand the Closing Disclosure (and
what funds will be necessary to bring to the closing).
For more information, contact our office today!
http://texasloanstar.com/wp-content/uploads/2015/08/tls_logo_334x123-300x110.png00Jessica Lakehttp://texasloanstar.com/wp-content/uploads/2015/08/tls_logo_334x123-300x110.pngJessica Lake2019-04-09 20:16:122019-04-09 20:16:14What’s a Closing Disclosure and Why is it Important?
Did you know financial fitness can save your life? Well, maybe not literally. But being well informed about money can reduce stress and help you and your family live a healthier and happier life. Here are three tips to get your started
Tip #1:
The U.S. has one of the lowest
personal savings rates amount the world’s economically developed countries.
As of this year, people in the U.S.
have saved less than 5% of their disposable income, on average, according to
the U.S. Department of Economic Analysis. While that number has undoubtedly
increased over the last few years because of hard lessons learned during hard
economic times, Americans as a whole still need to save more.
Saving money is crucial to
financial well-being. Savings can help you cope with financial emergency, make
a major purchase, and even get ready for retirement.
Saving is easier if you start early and make a habit of it. One good practice is to sign up for an automatic savings plan that deducts money from your paycheck or checking account and sets it aside before you have a chance to spend it. Stash your savings in a savings account, certificate of deposit (CD), investment account or retirement account to meet your future needs.
Tip #2:
Only 40% of adults have a budget and keep
close track of how much they spend on food, housing, entertainment and other
categories, according to a survey conducted for the nonprofit National
Foundation for Credit Counseling.
Approximately half of the adults surveyed said they had a good idea of how much they spend or tried to stay within certain limits. 7% had no idea and no set limits. A budget is an important toll to plan and track how much you’re spending and saving each month. To make a budget, start with your monthly income and then allocate specific amounts for each expense. Try to set aside at least 10% for savings, and no more than 30% on housing, 25% for living expenses and 15% for transportation.
Tip #3:
Nearly 70% of young adults have a
credit card and 64% worry about their debts at least occasionally, according to
a survey conducted for the National Endowment for Financial Education.
Paying credit card bills and other
debts on time is essential because a history of on-time payments strengthens
your credit score, which measures your overall creditworthiness. It’s much
better to build you credit record slowly and patiently than to take on more
credit cards than you can handle or spend more than you can repay.
Strive to learn more about savings,
budgeting and using credit responsibly, especially credit cards. Learn to improve
your financial literacy, which will, in turn, help you to achieve your goals,
both financially and personally.
http://texasloanstar.com/wp-content/uploads/2015/08/tls_logo_334x123-300x110.png00Jessica Lakehttp://texasloanstar.com/wp-content/uploads/2015/08/tls_logo_334x123-300x110.pngJessica Lake2019-03-22 15:42:282019-03-26 15:12:09How To Improve Your Financial Fitness
Millennial Home Buyer Must Haves
/0 Comments/in Blog /by Jessica LakeMany millennials are now entering the real estate market and have different needs than the generations before them. Here are some home buyer must-haves that may surprise you about this generation.
Location, Location, Location
Some things remain the same across all generations; the importance of location. Research has shown that millennials generally want to live close to work and things to do. This is a huge deciding factor for them when choosing a home.
You would think that urban areas would accommodate this request more than the suburbs, but this may not be 100% true. Those between the ages of 25-34 are actually less likely to live in urban areas. This illustrates that an urban lifestyle may not always be the perfect fit for this generation.
Technology
Automation is the way of the future. It allows for millennials to free up more time to do the things they want to do. When it comes to house hunting, they prefer almost everything to be automated.
Millennial buyers are interested in smart homes with the most advanced technology. This generation is the most digitally engaged, therefore, they want wireless thermostats, smart security systems, wireless speakers, Wi-Fi cooking ranges, smart locks and eco-friendly automated light and shade controls.
Low Maintenance
In the past, Gen-Xers were looking for fixer uppers. HGTV was leading the charge with encouraging home buyers to buy a house and fix it up. With their busy lifestyles most millennials are now choosing to go against that norm. They want something that is move-in ready and something that doesn’t require a lot of maintenance. They generally would rather spend their time with friends or traveling than work on their home.
Social Media Presence
Not surprisingly, millennials do a fair amount of their shopping online and house hunting is no different. They’re more likely to browse the web than visit homes they want to buy. They can see everything they need right from their comforts of the couch. If you want to sell your house to a millennial, it may help to have a dominant social media presence in order to get their attention. If you think just a few photos will fly, you’re mistaken. They need to see every room of the house.
Quality of Life
Millennials are slowly changing the housing market. Many desire some different criteria than past generations. Their priorities, to the way they shop, are different now more than ever. True value for them lies in the quality of life. They don’t want to give up their lifestyle to have their dream home.
If you’re interested in selling your property to this generation, get a realtor that can post your house on social media accounts, help you make your house move-in ready with what is on trend for millennials, and make sure it is in the ideal location for food and social activities.
How to Negotiate the Best Price on a Home (With Your Realtor)
/0 Comments/in Blog /by Jessica LakeIt takes a keen understanding of the home buying process to be good at negotiating. Be sure you have it down before you make any offers on homes. Especially, with the market heating up for Summer. Or better yet, rely on your real estate agent to do the negotiating for you, but you should always be part of the process. Realtors are professionals in the housing market and have the best tools for you to use when looking for a new home. Here are some tools and information the best negotiators use:
CMAs – Comparable Market Analysis
Once you’ve found a home you want to buy, the first step in negotiation is to assess the fair value. CMAs show what similar properties in the area have sold for. Your real state agent will have access to CMAs and can share them with you.
Generally, CMAs list houses in a particular location that are currently on the market, have sales pending, have expired from the market, or have sold. It is the “sold” properties you need to look at because the list price and the offer aren’t necessarily the best indicators of what the house will sell for. There can be a big discrepancy between those two figures.
The CMA often gives you general information about the houses being compared: number of bedrooms and baths, square footage, the listing price and the sold price. Make sure you focus on houses similar to the one you’ve selected – both in description and location. The more recent the data, the better.
Condition
Once you have the CMA, drive by all of the properties listed in the sold column. Condition has a lot to do with the ultimate selling prices of a house. Does the home in which you’re interested shine above or fall below those sold? Make a realistic comparison of condition and discuss with your realtor, then adjust your thinking up or down according to what you see.
Extra Amenities
Does the house you’ve chosen have more or fewer amenities than comparable homes? Although amenities won’t affect the value as much as location or overall condition, they can be a factor. Be wary, though. An outdoor hot tub, for example, may have been a major motivating factor in your choice of a house, but it won’t add much to the value of the property when you resell.
Motivation
A good negotiator gathers as much information as possible on the house and the sellers. The owner’s reason for selling is at the top of the list. Does he or she have to sell? Want to sell? Just throwing in on the market at a high price to see if it’ll move? If your agent representing you in the transaction is a buyer’s agent, they can try to secure this information for you. If you’re working with an agent representing the seller, they typically can’t disclose this information without the seller’s consent.
Preparation
Great negotiators always prepare themselves. The most important factor is your frame of mind. Never let emotions override common sense during negotiations. Set a realistic limit and stick to it. If the price isn’t to your liking or is outside your budget, you must always be willing to walk away. In addition to your emotional frame of mind, your finances should be in order. An offer carries more weight if there are no dangling financial problems and if you’re pre-approved for a mortgage.
Realism
Make a realistic offer. Nothing offends a seller more than a low-ball offer on a house that is fairly priced. Often, negotiations will stop, rarely to be revived again.
Call us today to get pre-qualified so you are prepared to negotiate on a home!
6 Things to Know Before Applying for a Home Loan
/0 Comments/in Blog /by Jessica LakeThere are some thing to keep in mind to ensure that your home buying process is simple. Here are six tips to help you feel confident when applying for a new home loan.
1.Pay All Your Bills on Time
When Applying for a home loan, it’s important you have good credit history, which includes paying all your bills on time, every time. A late payment may negatively affect your credit score and that can play a part in whether you’re approved financing and ultimately, the rate and term you may receive. Even after your home loan closes, it’s still important to pay your bills on time.
2. Be Wary of Employment Changes
A stable employment history is important when preparing to buy a new home. After all, you have to show that you have the stability and continuity of income to repay the loan.
Requirements may vary based on the type of employment you have, but for most salaried borrowers, there is no specific time on the job required. Generally, lenders will request to review at minimum a two-year work history.
3. Do You Own Research
With so many home loan options available, it may be difficult to determine the ones that’s right for you. While your lender will work with you to find the best option, it’s important that you learn the basics about fixed-rate and adjustable rate loans.
4. See What You Can Afford
After you’ve taken the time to do your own research, it’s time to see how much you can afford to spend on a home. For example, most budgets call for earmarking 28% of your post-tax income for a house payment, including your homeowner’s insurance and property tax.
5. A Few Things to Consider
What options are available in rates, points and fees (and yes, there’s more than one rate).
Hold off on opening any new accounts.
If you’re looking for a new home, there’s a good chance you’re going to be looking to furnish and decorate it as well. While that “5% discount on all furniture purchases” credit offer may look good at the moment, it’s best to put off opening any new credit accounts or lines of credit until after your loan has closed. Taking on more debt could impact the type of loan you receive or change the one already in process.
6. Hold Off on Closing Any Existing Accounts
Each item on your credit report contributes to your credit history or the record of your responsible repayment of debts. The longer your credit history, especially with a good payment record, the better. When applying for a new home loan, don’t close any existing accounts, even if they have a $0 balance.
Following these tips may help set you up for a success with a smooth home buying experience. Call us today with any questions you have! 713-802-0606
What to Expect After Listing Your Home for Sale?
/0 Comments/in Blog /by Jessica LakeKnowing what to expect when your house goes up for sale can be half the battle of getting through the transaction. Most people are a bit excited when they put their house on the market. Hopefully, they are moving up to a better home or off to new challenges in another city.
Here’s a look at what you can expect once you sign a listing agreement:
Out of the gate
The first thing your agent will likely do is place your home in the local Multiple Listing Service (MLS). This notifies all other agents in the area that your home is for sale. Soon, a for-sale sign will appear in the yard and a lockbox will be attached to your house, most likely on the front door. The lockbox allows local agents access to the house when you aren’t home. It may seem a bit unsettling, but it’s important to allow agents to show your home when you are away, especially in a slower market. If you don’t have a lockbox, many agents will put you at the bottom of their clients list of homes to see because it’s a headache to track down your agent, who must track you down to find out when you’ll be around, which may not fit into the buyer’s schedule.
Open house
Your agent will want to have a couple of open houses as soon as possible, which is why it’s not recommended to list your house until everything is ready for a good showing. This means you’ll likely be swamped with last-minute touch-ups and clean-ups to get the house ready.
It is best if you are not present during open houses because buyers want the freedom to peek into closets and make comments. That’s difficult for most people to do it you are present. When potential buyers come for a viewing, try to step outside while they tour your house.
Neat freak
Keeping your house in tip-top shape, especially if you have kids and pets, is one of the more difficult parts of selling your home. But remember, buyers will walk into your house and try to imagine themselves living there.
Most people don’t have the vision to look past toys scattered throughout the house, dirty dishes in the sink or pet food spilled on the floor. It doesn’t matter that they probably live the same way.
What’s a Closing Disclosure and Why is it Important?
/0 Comments/in Blog /by Jessica LakeImagine that you’re nearing the closing of your home loan. And what a process it has been. Pre-approvals, house hunting, income verification, inspections, appraisals and so much more. For some, the amount of paperwork feels daunting. But if you’ve prepared a bit ahead of time, you’ll keep a cooler head while your eyes stay on the prize of the American Dream.
Closing a home loan can be a whirlwind activity, with a frenzy of dozens of documents to be signed and verified, and instructions of each one coming in from lenders and lawyers with the verbal rapidity of an auctioneer.
Each document is significant, based on its own role in the loan package. A prime example is the Closing Disclosure. There are numerous documents spread between real estate agents, lenders and appraisers but the Closing Disclosure is one of the big dogs you’ll encounter when it comes to closing day.
This is not to be confused with the Loan Estimate, a three-page document covering general information about the loan and property. While not part of closing documentation, the Loan Estimate breaks down you closing costs into a detailed explanation of origination charges (to cover lender expenses), third-party charges like taxes and homeowner’s insurance, and the estimated amount of cash needed at closing.
So, what exactly is the Closing Disclosure? It technically covers the same points as the Loan Estimate, but includes additional information regarding the escrow component of you loan. To understand the Closing Disclosure is to know what escrow is. Escrow is money that your mortgage lender puts into a separate account that pays your future property taxes and insurance costs. It’s common to have escrow with a mortgage, but isn’t always necessarily required.
The most important thing to be aware of is to receive and sign it three days before closing, which is required as part of the new Dodd-Frank guidelines. If it is not signed and returned to the lender within that time frame, the closing will be delayed.
And this is quite probably the most significant part of the Closing Disclosure. It’s one thing to understand the terms outlined in it-which should be pretty familiar because you’ve likely discussed this already with your real estate agent-but it’s just as important to understand the details as it is to promptly sign it. The last thing anyone wants or needs is a surprise delay arising at the closing.
Understanding the terms of the Closing Disclosure will help lessen your concerns before going to the closing.
Hopefully, a seamless home loan closing is a reality when you understand the Closing Disclosure (and what funds will be necessary to bring to the closing).
For more information, contact our office today!
How To Improve Your Financial Fitness
/0 Comments/in Blog /by Jessica LakeDid you know financial fitness can save your life? Well, maybe not literally. But being well informed about money can reduce stress and help you and your family live a healthier and happier life. Here are three tips to get your started
Tip #1:
The U.S. has one of the lowest personal savings rates amount the world’s economically developed countries.
As of this year, people in the U.S. have saved less than 5% of their disposable income, on average, according to the U.S. Department of Economic Analysis. While that number has undoubtedly increased over the last few years because of hard lessons learned during hard economic times, Americans as a whole still need to save more.
Saving money is crucial to financial well-being. Savings can help you cope with financial emergency, make a major purchase, and even get ready for retirement.
Saving is easier if you start early and make a habit of it. One good practice is to sign up for an automatic savings plan that deducts money from your paycheck or checking account and sets it aside before you have a chance to spend it. Stash your savings in a savings account, certificate of deposit (CD), investment account or retirement account to meet your future needs.
Tip #2:
Only 40% of adults have a budget and keep close track of how much they spend on food, housing, entertainment and other categories, according to a survey conducted for the nonprofit National Foundation for Credit Counseling.
Approximately half of the adults surveyed said they had a good idea of how much they spend or tried to stay within certain limits. 7% had no idea and no set limits. A budget is an important toll to plan and track how much you’re spending and saving each month. To make a budget, start with your monthly income and then allocate specific amounts for each expense. Try to set aside at least 10% for savings, and no more than 30% on housing, 25% for living expenses and 15% for transportation.
Tip #3:
Nearly 70% of young adults have a credit card and 64% worry about their debts at least occasionally, according to a survey conducted for the National Endowment for Financial Education.
Paying credit card bills and other debts on time is essential because a history of on-time payments strengthens your credit score, which measures your overall creditworthiness. It’s much better to build you credit record slowly and patiently than to take on more credit cards than you can handle or spend more than you can repay.
Strive to learn more about savings, budgeting and using credit responsibly, especially credit cards. Learn to improve your financial literacy, which will, in turn, help you to achieve your goals, both financially and personally.