money

Essential Money Advice For First-Time Property Buyers

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Getting on the property ladder isn’t straightforward. Today, people are moving towards renting and moving out of their parents’ home later to ensure they can afford the cost. That’s because there’s been a drop in first-time buyers, with the figure at 1.5% of all household purchases. Before the turn of the millennium, it was 2.1%, and that’s a significant shift.

 

So, imagine trying to buy a house without good credit. It doesn’t sound as if it’s doable, and you might have the first-hand experience if your previous spending habits are wreaking havoc currently. But, no one should have to rent an apartment for the rest of their lives or live with their parents. It is going to be hard, but it is possible if you search for the money in the right places and change your attitude to money.

 

If you want to learn more, you can by reading the advice underneath. Hopefully, it helps to secure you the mortgage you’ve dreamed of regardless of your credit rating.

 

Organize Your Debt

 

How much you owe and haven’t paid back is a significant factor when it comes to your credit. It’s almost impossible to get a mortgage if you have the type of arrears that creditors hate. An example of this would be a repossession. The fact the bank had to claim your house as collateral is a black mark on your report that will stay for a long time.

 

Thankfully, there are levels to the severity of debt, and some are better than others. Having no credit isn’t great, yet you can still find a lender if it’s happened recently. And, the rates aren’t particularly high. You might need to pay up to 10% regarding your deposit, but that isn’t a massive deal.

 

Aside from little to no credit history, you will want to organize your arrears into two more categories: “low credit score” and “late payment.” These are the lowest tiers in terms of the impact of your debt.

 

Top-Up Your Deposit

 

Lenders, especially banks, speak the language of money. Therefore, you can boost your chances of securing a favorable loan if you can find a cash injection. Although it seems impossible, there are avenues for people with bad credit. A fantastic option is a guarantor loan with bad credit that uses someone else’s rating as collateral. You take out the loan, yet they act as a backup in case you default.

 

Of course, an easier option is to borrow the money directly and save the hassle of late fees and high-interest rates. Still, it’s sometimes better to apply for a loan to top-up your budget for various reasons, the main one being your independence. Plus, it helps your credit rating by proving you are trustworthy. The size of your deposit will depend on the lender as they aren’t all the same.

 

A general figure you can use as a reference point is 30% of the property’s value. It’s steep, but it’s something you must do to own a home with bad credit.

 

Don’t Put Your Name On The Application

 

Any reference to you on the mortgage application will make it harder to be accepted. The excellent news is that you don’t have to sign your name if you and your partner are buying together. Instead, you can use their good credit to get a mortgage that isn’t a rip-off.

 

Of course, there are drawbacks with this option, the main one being that you aren’t liable for the payments if you split. So, it might be necessary to go to a lawyer and draw up a contract outlining your commitment to the mortgage in case the worse happens. Alternatively, you can divide the responsibility into sections. For instance, you commit to paying X amount per month and save up the money for the insurance and deposit.

 

As long as you are both comfortable with the arrangement, you should be able to swerve your poor credit rating.

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Wait

 

It’s not what you want to hear, but waiting an extra year or eighteen months might be the difference between your application being accepted or rejected. The reason is that debts that impact your score don’t last forever. Some, such as bankruptcy, will stay for a while, whereas others will disappear in three to five years.

 

Even if you declare bankruptcy, it can help you erase unsecured debts and make your situation less bleak. And, if Chapter 13 doesn’t budge, at least the time you waited helped to save deposit money.

 

Just remember that getting on the ladder with bad credit takes time. It won’t happen overnight.

20 Ways to Save Money on Everyday Items….

Growing up money was tight, I learned at a very young age you had to work hard for everything you want in life. This also taught me the importance of money. Saving it, making it and especially how to spend it.

After marriage and graduating college money issues were not as “tight”, but I still took those young values I learned with me and it has paid off!

Here are ways I like to save money!

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  1. Cell Phone bill – I had AT&T for years, I would call every so often and explain that I will have to cancel my account since the prices were constantly going up. It wasn’t until a blog conference that I recently found out Cricket is owned by AT&T. I did my research and found out they use the same towers and covered the same area. So I switched from a 160.00 for two lines to 100.00 for four lines.
  2.  Cable bill – I hated writing the 124.00 a month check to Directv every month so I did a little research and sure enough if you call them when they have promotions and ask for it, you can cut your bill to half of what it is. I now pay around 60.00 a month. The only reason we keep it is the husbands wants the SEC channel.
  3. Filters – Changing out your air conditioner/heater filters often will help save on the electricity bill. The more clogged they are the more the air conditioner/heater will have to run.
  4. Shop wisely – When I am browsing in a boutique, I usually take a picture of the tag of something I really, really, like 99% of the time I can find it online way cheaper than in the store!
  5. Dollar Tree – This place will save you 5.00 – 10.00 a week if you shop there first. I buy all my cards and gift bags from here and every now and then you will find something on your grocery list there for a dollar!!
  6. Wash your sheets – Keeping your bed clean will help you not to get sick as much. Besides the fact that clean bed is amazing!
  7. Coupons or Sales– Check for printable or app coupons before leaving to shop, plan meals around what is for sale that week. Regardless of how great the coupon is, only buy what you will use.
  8. Bulk – Take a calculator with you, if it is a lot cheaper to buy it in bulk then do it. I love when something in bulk is on sale and I have a coupon, I stock up!
  9. Budget – Make and stay on a budget regardless!! This is important to learn, I remember weeks when I would say we are going to have a “leftover” night or let’s find a meal at the “Dollar Store”. Really what I meant is that is all we could afford but wanted it to seem like a fun activity. Staying on the budget meant getting creative.
  10. Electricity – It is important to seal off any air leaks or making sure your home is insulated to reduce the electricity bill.
  11. Intrest Rate – Negotiate those as often as possible.  You will be amazed at how willing a company will be to work with you if you make payments timely.
  12. Pyramid payment – This took us several years to master but now I am happy to say we are debt free! You take your smallest bill rather if it is a 300.00 jewelry store account or 500.00 hospital account and you pay extra until it is paid and continue this until everything is paid off. We paid cash this year for my new Cadillac and it sure felt good!
  13. Savings – Regardless if you put 5.00 a week away, make sure you start and have a savings account. You need something to fall back on when you have an emergency!
  14. Education Degree – The more education you have or can receive the more you make in life, as a general rule. Try and get some type of degree even if you can only take one class a semester. There are so many grants and aids that can help you with this.
  15. Church – Most churches have a ton of really fun free activities you can do as a family. Church communities love to help out.
  16. Yard Sales – I can’t tell you how many times, my new wardrobe consisted of my latest yard sale finds. Most yard sales have clothes really reasonably priced. I clothed my children for years from yard sale finds.
  17. Garden – Plant a small garden of veggies your family likes. If you don’t have room for a garden put them in a pot, people love fresh veggies and it is a great way to give to others.
  18. Fix broken items – If there is an issue with something like a vacuum or dripping water faucet, fix it immediately. You will save money in the long run by taking care of it right away.
  19. Money saving sites – Shop sites like slickdeals.net before making online purchases to see if there are any great deal or prices. I recently found a 99.00 gift that I wanted to get my grandson for his birthday on there for 25.00 at a certain store. I was so excited!!
  20. Ebates – If you download Ebates to your dashboard every time you shop online it will pop up and tell you how much $$ you will make from the purchase not only that but it will find if there is any money saving coupons out there. I use it for every purchase and get a check in the mail!!

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These are a few of my favorite ways to save money! I am sure there are a ton more ideas and would love to hear yours!!