What One Should Keep in Mind before Buying a Home?

Various financial turbulences and debts have made people aware of their economic weaknesses and shortcomings related to their assets and liabilities. Apart from taking help of various debt relief options and best debt settlement companies to get rid of their neck-deep outstanding; they also understood the value of acquiring wealth and assets, of which buying  a home plays the most important role. However one should keep in mind the following factors before buying a home:

1-   While buying home in a competitive market, ensure that there exists not much conditions with your purchase offer, as these often act as deal killers. The seller may accept a competing offer for less money rather than take the risk that you won’t be able to raise mortgage money. A pre-approval letter from your lender tells the seller you are ready and able to commit.

2-    While buying home is a profitable and return-sensitive asset, keep your emotions at a bay and follow the guidance of reason as the former may end you up in paying too much money in vain. As we get much attached with and attracted to a particular house and start fantasizing about residing in it, this tends to make you over-evaluate the price of the house. Another reason you may be driven to pay too much is that a bidding war triggers your competitive instincts which makes you feel that it is a must buy at all costs – which you will regret later.

3-   Be sensible enough to keep aside a considerable amount of money to cover not just the down payment but also the cover closing costs, which can prevent you from future monetary deficiencies and financial dependency. Closing costs can add up to between two and six percent of your loan, so ask your lender to give you a Good Faith Estimate of the loan-related fees you’ll have to pay. Get your real estate agent to compile a list of other expenses.

4-   Co-ordinate the dates of your house-possession and moving out from the previous one as it is advisable to avoid a situation where you’ve got to camp out with relatives or find a short-term rental because you must vacate your old house or apartment before you can move into your new digs. Moving once is enough.

5-   Make sure to inspect your home before moving into it and repair or replace all faulty or inactive fittings and infrastructures inside the home. Make cost estimation for repairing all defects. If the seller won’t help to bear the costs, and you want to go ahead with the purchase, make sure you can afford the necessary repairs on top of your mortgage.

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Tips for property insurance

Property insurance is responsible for protecting a property from damage, theft and natural disasters such as earthquake, flood and fire which truly causes damage to the residence. Homeowner’s insurance can be expensive enough particularly for those citizens who live in the risk prone zones and are actually made to pay high insurance premiums against their property. Therefore, for all the uncertainties of life, property insurance is a must to safeguard the property against any kind of damage. On a closer analysis you will discover that it may take a lifetime’s fortune to build another house of the same stature, so it always remains beneficial to have a property insurance which can offer the best coverage and compensation. Let us have a look at some of these tips to secure the best insurance policy for home: 

• The first thing that you need to look for is to select the best company from an array of these agencies that exist much similar like the way you looked for the debt settlement companies to resolve your debt issues. You should have the necessary acumen to choose a company with the right premium amount to suit your needs.
• It is important to choose a higher deductible option, for, the higher the deductible the lower will be the amount of premium. 
•   Opt for multiple policy discounts, as many of these agencies offer a discount for keeping the other insurance such as auto and health under the same coverage.
• Those homeowners who are able to pay off their mortgage faster can actually get a reduction in their premiums.
•  Your property insurance should provide coverage of your personal property as well which is usually around 50% of your replacement coverage.
•  Lastly you should also look for a policy which is compliant with rebuilding costs which will provide you with maximum benefits if your house is destroyed.

Since calamities are a part of life, property insurance is the best bet to get an extended protection for your property against a possible damage.

 

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Some of the best books on personal finance

There have been enough postings and articles on several tips about personal finance, for it provides the much required motivation and the impetus that is frequently needed by people to get their ideas into work. The recent financial crunch which have devastated the financial hold of numerous citizens across US and pulled them down to the mercy of the credit card debt management services, have now prompted them to gather the necessary financial knowhow and the hidden tactics in order to manage their finances. Fortunately books can offer the best insight and a comprehensive view when it is a question of putting the hard earned bucks in the right practice. These books which are written by some of the top honchos of finance can be used to refurbish the old and invalid ideas with newer and innovative methodologies to save money or various aspects of financial handling.

Though it is not possible to gain knowledge overnight, but reading these books over a period of time and can prove to be a great resource and collection of useful materials. The following are the list of some of those great books which can help you to improve your financial knowledge as well:
•    The Intelligent Investor which is a classic in its own terms.
•    The Millionaire Next Door written by Thomas Stanley and William Danko which can change your              perspective on spending or making money.
•    Rich dad, Poor dad by Robert Kiyosaki which focuses on various investment strategies and the principles of entrepreneurship.
•    Multiple Streams of Income by Robert Allen which provides knowledge and importance of having several options of income.
•    The Snowball which emphasizes on the life of Warren Buffet and what has made him the man that he is today.
•    The Richest Man in Babylon by George Clason which talks about managing money and building wealth.
•    The 4 Hour Work Week by Timothy Ferriss, a challenging book which drifted away from the normal tenets of money management.
There are hundreds of suggestions about personal finance which have been highlighted in these books. These collections could help you in bringing about a change in the way you have been looking at your finances till now, and could help you to move forward with the correct financial knowledge.

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Which credit cards should you never close?

The US consumers have been relying too much on the aid of credit cards, either because they are opposed to using cash amounts or simply that they may not have too much cash in hand. At least this is what the recent economic downturn has established, when people had incurred huge debts and were obliterated with overextended credits which on the other hand had led people to rely on the best debt management programs to recover from their debt burdens. However in spite of all the negative things that have been spoken about the credit cards, canceling them may not be the right thing to do always, and let us have a look at those credit card accounts which we should never close:

•    Those cards which has some balance left should never be discarded simply because the total balance that is available is lowered to zero amounts or rather those credit cards with no credit limits have still been left with some balance it can also be said that the card has been maxed out which has a negative implication on the credit score.

•    If you have intended to close the only credit card that you owe it will lower the total credit that is available or it can also rob you of the power of utilizing your credit which is highly disagreeable.

•    A portion of your credit score is controlled by the total number of credits that you actually use therefore maintaining a credit card can also imply that it can be used towards building a higher credit score. Furthermore you can have problems to secure a credit card in future for the creditor may think of you as ineligible.

•    The old credit cards should never be canceled as these accounts are considered to be of more worth when the creditor will assess your credit report as borrowers with short credit history are termed as riskier than others.

•    Those credit cards with good terms of contract should not be canceled for cards with lesser rates of interest and annual fees will be of more use in the long run because they will charge you much less than others.
Consumers are often confounded with the idea of whether to close a credit card account or not, because there are too many of the accounts which have turned delinquent however they should remember that even closing a delinquent account can damage the credit score more than helping it to get settled.

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