The whole point of credit is to show that you are a responsible adult who will be able to pay a lender back when applying for a loan. Applying for a loan is especially difficult if you do not have credit. It is a good idea to start building credit at a young age. The sooner, the better. It is something that is definitely not taught in school but it should be. This information would have been so much more helpful than geometry in my personal opinion. You will need a few nuggets of advice first before you start your financial journey.
Get a credit card. There is a lot of negativity associated with credit cards and I understand. They are a quick way to debt before you realize it. Despite this, they are also a good way to build credit. The trick is to start off buying small things like gas and then paying it off completely each month. It will show the lenders that you are great at paying back debts. It’s important that you use the credit card every month, not that you have it and it sits in a drawer otherwise it defeats the purpose of having it.
Once you have one credit card, then get another. One line of credit is okay but two are amazing. This can be something small like a clothing store credit card. Get your work clothes from the store and pay it off every month as well. Different lines of credit create variety in your hypothetical portfolio.
Get a small loan. This can be as simple as a student loan. Paying back a little loan will open the doors for you to qualify for large loans such as a loan for a car or house. It may even be beneficial to take out a menial loan just to pay it back almost immediately. This is a quick way to build credit fast if you’re in desperate need of good credit.
Get something in your name. Whether it is a gas bill or auto insurance, a bill with your name on it signifies you have been paying someone consistently. Rent, utilities, and phone bills are all included in helping your credit score grow.
Credit building can be intimidating. Don’t let the details bog you down. Start with these few simple tricks and you will have an amazing credit score in no time.
Interested in building your credit to buy or invest in a home?
Tom Davies with Fairway Independent Mortgage Corporation
can guide you to methods or resources that will work best for growing YOUR credit score.
It’s already the New Year people and it’s time for big ideas and big changes. There is the one thing that has been on your mind for a while now but can’t seem to get started. Now is the time. Those homes you have been eyeballing secretly, following the buyer’s apps, and drooling over those historic district houses, well now is the time to act.
Make your New Year’s resolution to treat yourself
to a well deserved new home.
You’ve survived through 2017 so you’ve earned it.
Why is the New Year a good time to buy? Tax Deductions. Start this year off right with huge tax deductions that are ready to be taken advantage of. Next year you will thank yourself while filing in February. I know it seems like a long way off now but so did the end of 2017, am I right?
In addition to the usual perks of buying, the holidays and New Year make everyone a little more jolly. The freshness of the New Year may make people nicer as you start your journey into purchasing. Your real estate agent will be more attentive due to slow traffic; the seller may be easier to negotiate with in the spirit of the season. YOU will be less stressed and more easy-going in light of the exciting prospects of ownership.
Not many people shop for houses this season so many sit on the market for a long time. This will save you money by getting a great deal in a slow market. Sellers will be thrilled to negotiate and sell to you after waiting a spell on a bid.
It’s better than renting. On rentals you are essentially burning your money each month. Buying is an investment that will eventually make you money if you ever decide to sell your home.
Make your New Year work for you, make your new year’s resolution to own.
Keeping your rental unit looking its best can be tricky. You want it to look great but also don’t want to spend a lot because it’s purpose is to bring you income and not the other way around. Fortunately, there are some low cost ways to ensure your rental looks modern and well groomed before your next potential renter tours their future abode.
The first place renters are going to see is the front door area such as the foyer or entryway. This area should be a large focus since it is what creates the first impression. Tile that matches the kitchen or vinyl is a clean refreshment to this area that will tie it together. The kitchen is also a main interest of buyers. You will want the cabinetry to be appealing. If they need a little love then an easy way to do this is to wipe on a little liquid scratch if they are in fairly good condition. If they are in need of loads of love, then cover them in contact paper or paneling. Once accomplished and they still don’t meet your satisfaction, replace the knobs with some cool trendy ones to finish the motif.
The sink and faucet fixtures should be in good repair. Unable to replace them right now? Paint them. Yes, I said it. There are plenty of tutorials out there on your to paint your sink and fixtures, and not the terrible paint jobs like the painted tub in your college efficiency. I was a non-believer until my own mother, who is craftier in ways I will never be, painted her sink a dark gray and it was stunning. No one could even tell that she didn’t buy it like that.
Light fixtures and ceiling fans are a cheap investment that can update a space. Choose fixtures that are all matching colors and finishes to be consistent throughout the rooms. Are your switch plates ugly? New switch plates and plugs can also achieve a fresh and subtle look. New trim can liven up your borders. Especially if you current trim is cracked or worn, it can make a house seem outdated and unkempt. Off white Mini-blinds are so boring. Change them out with wood blinds, curtains, or shades to go from disgust to upper crust in minutes.
There are plenty of ways to make an old space look new. All you have to do is think outside the toolbox.
Are you ready to invest in Real Estate? It can be overwhelming knowing where to begin or what the specific goals you have in mind are. You may have heard your neighbor talk about how their rental properties pay their mortgage and you want a piece of that pie. It sounds like the hot set up and it is. Though rentals can be hard work, they also are a great way to aid in your retirement or passive cash flow. Most millionaires in the United States started by real estate investing and own multiple properties. You can become a landlord, a flipper, or owner as well. “Property Owner” has such a nice ring to it, doesn’t it?
Helpful hint #1: Do your research. Find out what kind of investor you want to become. Most people have in mind when looking to invest is to own the property, be a landlord and rent the unit out to a tenant. If this sounds too much to handle then there are investment groups that will give you the benefits of being a property owner without the hassle of managing and maintaining it. You would invest in one unit of a complex and the company will manage it all for you. Flipping is also a popular investment strategy. It is where a potentially livable house is bought and renovated in a short period of time to resell. Who wouldn’t jump at the chance to have their own show on HGTV…
Helpful Hint #2: Sweat the small stuff. Start small when investing such as a condo, small home, or duplex. It will be a better option for your checkbook and will give you a steady income to slowly build your empire of units. Once you feel comfortable with how the process works then you can move on to bigger and better buys.
Helpful Hint #3: Know Your Market. Shop around and don’t settle. Identify what region you want to purchase in. It is recommended to buy in working class areas. Make sure it’s a good investment and a profitable area. Look into any restrictions that purchasing in that area may arise. Research is the key of successful rental ownership.
Don’t stop here. Go research your next rental before someone else does.
Renting is overrated. The money is being thrown into the wind while your landlord is rolling in your hard earned cash and paying off their mortgage while telling you they’ll get to that leak under the sink “soon.” I remember renting one year when I didn’t even see the landlord. I couldn’t tell you what they looked like. My dishwasher was broken and the maintenance man told us to not use our health hazard heater because it was outdated. Needless to say it was a cold winter and we moved out of there quickly as possible. Does this sound like a familiar situation? Then you may be ready to sail into the sea of ownership where you are the Captain and that ship is under your control.
Buying a home comes with certain freedoms. One of those freedoms is not having a landlord. You are able to paint, hang wall art, and landscape as you please without the risk of not getting a deposit back. There are no noise restrictions, pet deposits, or remodeling. Butters, the hound, can run and be free in his house without his human worrying about what the landlord will say about his accident on the carpet. Renting stifles this ability to truly make a space your own. A home is yours to customize into a beautiful space that mirrors your personality with no guilt.
Taxes are a big stressor. Who doesn’t want a little relief when April comes around? Homeowners are offered several tax breaks. Some of those include Mortgage Interest, Tax and Penalty Free IRA, Home Improvements, Energy Credits, Home Equity Loans, and Real Estate Taxes. There is even a Home Office credit if you work from home. So many deductions, so little stress.
A homeowner’s net worth is 45 times that of an average renter. While rent is never recovered, mortgage payments build equity. It is an investment in the future by increasing an individual’s net worth. Not to mention it is cheaper to buy than rent. The average mortgage is lower than a rental payment and over time the interest portion of the mortgage payment decreases therefore the interest that you pay will be lower than a rental cost.
Having a home in a neighborhood provides a sense of community. You know your neighbors. You know where your children will grow up and go to school. You know that you can walk your dog every night with a peace of mind. One doesn’t always get that when renting because you never know when the rent may be raised depending on your lease. You may not even be able to renew your lease when the time comes. Community is a sense of stability and security.
Free yourself of the waves of rent, buy your dream boat.
Come to our First Time Home Buyers Workshop if you would like to learn more on August 26th:
Many people want to add a little pizzazz to their homes but don’t know where to start. Whether it be to prepare to sell or for the owners personal appeal, these small updates can turn around an entire vibe to make a house a home.
Never underestimate the power of a can of paint. One can completely revitalize a room. If you still have that pea green wall color that your friends complimented you on in the 1970’s then it may be time to change up your style. Fashions change and our tastes change with them. If you are selling then choose a neutral color even if they all look the same to you and are only slight variations of “baguette” or “camel.” If you just want to spice up your life then choose a hue that shows your personality.
Replace old hardware on cabinets and drawers. I remember when my mother inherited our grandparents’ house. I had never really thought much of the handles to cabinets. My mother changed them because I am pretty sure they were the originals from 1955 when my grandparents bought the house. I immediately noticed the change even though I had never given them thought before. All her family members commented on them as well. It was such a little thing that made a large impression. Along with hardware, light fixtures and faucets are the next items that can really date a room. Replacing these with a more sleek look will instantly modernize the space.
Give the outside love. The inside of a home is important, but the outside can be just as inviting or uninviting. Simple ways to add curb appeal is to add a small flowerbed around that tree in your front yard. You can paint your rusty mailbox to a nice warm tone. Of course, don’t forget to mow and edge the lawn. It is an easy and cheap fix to spruce up the yard. Placing flower pots around the porch and a few decorations can really increase the visual appeal and make you want to come home after a long day to sit on your relaxing porch.
There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.
As The Joint Center for Housing Studies at Harvard University explains:
“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.
That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:
“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.