Month: October 2020

It’s no secret that joining the military is one of the most popular career paths in the US. With more than 1 million people in active duty, it’s easy to see that this sort of role draws a lot of people in, though they aren’t often thinking about the benefits they will receive in the future.

To give you an idea of how being in the military could improve your future finances, this article will be exploring some of the financial benefits that come with a job like this.

Of course, though, you should only ever join the army if you feel comfortable with this career choice, with a lot of people regretting this when they do it for the wrong reasons.

Pensions

US military pensions are often regarded as some of the best in the world. For those who manage to get into officer positions, retiring much earlier than you would in other careers is often possible.

The pension you can receive from work like this will often be quite generous, enabling you to focus on improving your life for the future. Of course, this doesn’t work for those in lower ranks, as you will be expected to stay in the military for at least a decade or two before you can take advantage of benefits like this.

Mortgages

People often worry about their money when they are overseas, finding it hard to make the same sort of financial decisions that their peers outside of the military will be making.

Thankfully, though, securing a mortgage can often be much easier for those that have served than those who haven’t. Options like a VA loan make it possible for veterans to get their mortgage without having to pay a large deposit.

Loans like this are backed by the Department of Veterans Affairs, making them safe and secure while also giving veterans the chance to buy homes when they haven’t had a chance to focus on savings.

Savings

The limited chances you have to work with your money when you are on tour can actually serve as a benefit to some people. The military will pay you a daily rate based on your salary, and this will be paid to you for each of the days you are working for them.

You won’t have much to spend money on when you are working, with food, shelter, and entertainment being covered for you, and this means that many soldiers come home to massive savings pots. Having someone back home to put this into good savings account for you will be a good way to make the most of it without putting your earnings at risk.

With all of this in mind, you should be feeling ready to start assessing your military options. As mentioned at the start, though, money is rarely a good enough reason to go down a route like this, and you need to make sure that you’re thinking about your life when you choose to join the military.

Moving home is an exciting time, and we bet that you can’t wait to get into that new space! However, it can also be a stressful time if you don’t manage to keep yourself organized, especially when it comes to finances.

It’s for that reason that we’ve written this article, and we’re going to be talking about managing your money when you are moving home.

Keep reading if you’d like to find out more about this topic.

Mortgage

The first thing that you need to consider is getting a mortgage. If you’ve not already secured a new home, then this is probably going to be one of the things that you need to do.

Obviously, if you are buying a home outright, then this isn’t going to be necessary, but this isn’t the case for most people. It’s for this reason that you might want to think about using a tool like MortgageCalculator.org to help you work out what you’re going to be able to afford.

Don’t forget it isn’t just the deposit you’ve got to think about but also the monthly repayments. Of course, this isn’t going to give you a 100% accurate account of the mortgage that you will end up with because this depends on lenders, but it will help you on your way to working things out financially.

Moving Costs

You are also going to have to think about all the other moving costs that come when you leave your home. It might be the case that you need a removal team, or at the very least to hire a van to transport the larger items.

You should also think about hiring a cleaning service to come through and make sure everything is perfect for the people who are moving in. 

Selling Your Home

Finally, you’re going to have to think about what happens with selling your home. If you are relying on the money from this sale to help you move into the new home, you’re going to have to wait to move until the sale goes through.

Now, this might not happen in time if you need to move quickly, which means that you’ve got to make your home as attractive as possible. This might entail dropping the asking price to a lower amount so that people feel as though they are getting a bargain. It’s not ideal, but it might be the only choice you’ve got.

If you don’t need the money to move, then this isn’t going to be an issue. However, you still need to think about the costs associated with moving home.

These include things like attorney fees, estate agent fees, the cost of having the home valued, a survey on the new home, and so on. It can end up amounting to a lot of money, we know, which is why you’ve got to work out how much you actually have to spend on this move.

We hope that you have found this article helpful and now see some of the things that you’ve got to work out with your finances when moving home. It’s not simple, but it’s better to put the work in now than to have a nightmare later. Good luck!

Buying a house is one of the most exciting moments in your life. But it can also be intimidating.

We want to help curb some of those fears. Here are seven tips to help you get into your first home.

Decide how much home you can afford

Before you start saving, shopping, or packing, you need to know how much home you can afford. 

The best way to figure this out is with the help of a mortgage calculator. These online tools take into consideration your purchase price, your down payment, and current interest rates. Some mortgage calculators let you work backward by letting you plug in your desired monthly payment. Fool around with these calculators for a while to determine a baseline of what you can afford.

Don’t forget, though, that these tools won’t typically include other monthly expenses like home insurance and property taxes. That brings us to our next point …

Start saving early — and more than you think you’ll need

If possible, try to start saving as far ahead as possible. The more you save, the more you can put into a down payment that will lower your monthly mortgage costs.

You should also plan on saving more than the actual price of the home. Once you close and make your down payment, you’ll need to plan on paying around 5% of the total cost of the home in closing costs as well. You’ll also want to furnish your home and make any immediate repairs or renovations. 

Improve your credit score

As you’re saving your money, try and boost your credit score wherever you can. A high credit score could help you get a better interest rate on your home.

Here are a few quick ways to boost your score:

• Make payments often and on time;
• Pay more than the minimum balance due;
• Don’t max out your credit;
• Pay off as much debt as possible.

Do not, however, make any major purchases in the months leading up to your home purchase. That could increase your debt-to-income-ratio and make lenders suspicious. 

Choose the best mortgage for you

We know you’re eager to start looking at houses — and judging some of those interior decoration choices — but there’s still more prep work to do. Stick with us, we promise it’ll be worth it!

Before you pick a home, you’ll need to pick a mortgage type. There are a few options, so work with your lender to decide which one works best for you.

Amy Moser, vice president of mortgage services at Mountain America Credit Union, advises, “Start preparing ahead of time to make sure everything is in order to be able to make this big purchase. Do what you can to improve your credit score, and start cutting back in your budget to save up more and more for that down payment. Every little bit counts.”

Your basic options include the following:

• Fixed-rate home mortgage: Your interest rate won’t change over the life of the loan.
• Adjustable-rate home mortgage: Your interest rate could change a few years into your loan.
• Federal Housing Administration loan: You can get a loan with a low down payment or low credit score.
• Department of Veterans Affairs loan: Veterans and their families can get a flexible, low-interest loan.

Get a pre-approval letter

Once you have an idea of which loan is most beneficial to you, you can start shopping around for pre-approval letters. Aim to get two or three pre-approval letters so you can compare rates.

Once you pick one, send it to your realtor. Think of this as your golden ticket to entering the home-buying market. This letter shows realtors and buyers agents that you’re eligible to buy and makes you a serious contender in multi-offer situations.

This will require a hard credit check, so don’t be shocked when your credit score changes. It should bounce back within a few months.

Stay strong when it comes to your budget

Now you can start shopping for homes! Self-control is key, here, though.

Adjust your saved home searches to fit well within your budget. Try not to tempt yourself by going outside your desired price range, it’ll only make you want to overspend. Work with your realtor to set stern price limits when you go to open houses.

Do, however, explore homes in areas you might not look otherwise. Sometimes, you’ll only need to go a few miles away to get more bang for your buck.

Don’t skimp on inspections or insurance

Finally, be sure to budget for inspections and insurance. 

You can get a number of inspections done once you’ve gone under contract. Most people recommend looking into meth, mold, radon, and lead levels in your home. You’ll also want a general inspection to be completed — this will tell you if the home is generally safe and what kind of repairs you’ll need to make.

Insurance is usually required, but it’s best not to go with the cheapest, quickest option. Look for one that best suits your area. Most insurance policies are weather-based, so find a policy that will tailor to your specific needs.

Both inspections and home insurance will give you peace of mind in your new home.