Whatever You Do...Don't Save Money!Written by Leo J Quinn Jr
No, that's not a misprint. Even though falling interest rates are good when you want to get a loan, they are bad for people with savings accounts.In this economy your best investment, best place to put your money is into paying off debts. Think of it as investing in your debt because that is exactly what you are doing. If you put $1,000 into a bank savings account earning 2%, at end of a year you will have $1,020. If you carry a $1,000 balance on a credit card with a 19% interest rate, and you pay minimum monthly payments, at end of one year you will have paid $190 in interest. If you get $1,000 in a tax refund, small inheritance or from somewhere else you now have a choice to make. You can earn 20 bucks in a savings account or save $190 by paying off that credit card. Keep in mind that your 20 bucks is taxable income so you'll be left with $15 or so after taxes. Do you need a savings account for emergencies? That savings account may be causing those emergencies! Think about it this way...
| | Why Get Pre-Approved For A Mortgage?Written by Chris Rocks
One of most important steps in home buying process is getting Pre-Approved as early as possible. The Pre-Approval process involves you speaking with a Mortgage Lender about your financial situation, what you'd like to accomplish, and any concerns you have. Armed with that information, a Mortgage Lender can obtain an approval from a lender up to a specified loan amount and provide you with monthly payment information and closing cost information. There are many benefits to getting Pre-Approved. First, Realtors will spend more time assisting you with your home search if they are confident you’ll be able to obtain financing once you’ve located a home you’re interested in purchasing. Second, Seller’s will take your offer more seriously since they know you will be approved for a mortgage -- and they won’t risk taking their home off market only to find out deal is going to fall through 30 days later. Finally, since you know you’ve been approved and much of paperwork has already been processed, you’re in for a much less stressful experience. Why is it important to do this as early as possible? Many loan officers report that over 50% of credit reports they see have inaccurate information listed. This inaccurate information could be difference between you getting a loan or not getting a loan - getting a rate of 5% or getting a rate of 7.0%. The earlier these errors are found, sooner they can be corrected. So, what do you need for Pre-Approval Process?
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