Get the Best Terms: 5 Things to Do Before Applying for a Mortgage

Applying for a mortgage is more complicated than a lot of people might think, precisely because crediting and credit scores are extremely complicated. 

The process can be especially daunting to first-time home buyers or people who have never had to take out a loan before. Fortunately, there are some pretty tried and true methods for making the loan process as painless as possible. 

We'll go over five things you should do before applying for a mortgage.

1. Familiarize Yourself with the Process

Do your homework and research ahead of time to know what will be expected of you, your lending institution, how much time you should allow and what information you will need to provide, among other things. 

For example, requirements for purchasing property vary between states and even between properties and complexes, so it's a good idea to know what upfront payments might be required. 

You should also be prepared to provide a copy of your credit report.

2. Clean Up Your Finances

Before going to apply for a mortgage, do what you can to eliminate any bad things from your finances. 

This can include paying all outstanding bills, debts and credit card debt. Run a credit check to know where you stand, and do not make any major purchases or take on additional debt before you try and get home financing.

3. Prepare to Answer the Tough Questions

When you meet with your loan officer, you will be asked about any red flags they see in your credit history. 

Just like in a job interview, you need to come prepared to give an acceptable explanation for odd occurrences in your bank balance and financial history, such as debts or where significant amounts of money that isn't a usual paycheck comes from.

4. Decide What You Want

There are different types of mortgages and you need to decide exactly what you want before you turn in your application. 

For example, would a fixed-rate or adjustable-rate mortgage be better suited to you? How long do you want the term to be? 15 or 30 years is common. 

A financial adviser, your lender or outside sources can inform you of all your options and give you the best advice for your situation.

5. Get Quotes

Many people do not do this, but it is a good strategy that will likely get you a better deal than you would have otherwise. 

ou shop around for most major purchases, from contractors to cars, so why not for your mortgage? 

Instead of just going to one lending institution, applying for a loan, getting approved and going to buy your house, get quotes from multiple and go with the best one.

It's important to prep and do your due diligence before applying for a loan in order to secure the best deal you can on financing for a new home. 

So keep these five things in mind and act on them before you apply for a mortgage for the best possible outcome.

4 Ways to Save Money on Family Expenses Each Month

As you look at your monthly budget, you may feel frustrated when it seems that each category of expenses keeps going up. 

When you need to save money, you do not have to shut down all the lights or live on Ramen noodles. These four actions can help you to save money on routine family expenses each month.

Adjust Your Thermostat

Raising your thermostat in the summer while you are away from home and lowering it in the winter can save on heating and cooling costs. 

Consider a programmable thermostat for doing this. These thermostats allow you to set schedules so you do not forget to make the adjustment.

Cutting Food Costs

You can cut your food bill without sacrificing on taste, quality or nutrition by choosing foods that are in season. 

Rather than choosing pre-chopped onions, buy a bulk bag and chop your own. Choose less expensive cuts of lean meat and prepare them in a slow cooker to soften them. 

Shop the loss leaders and buy generic, which usually cost less per ounce. Clip coupons for things you would buy anyway.

Automotive Work

Most families have one or more cars for getting to work, school, the grocery store and all of the other places that you need to go. 

Some companies, like Dualtone Muffler Brake & Alignment, realize that cars can eat a considerable amount of your monthly budget with fuel, insurance, and licensing costs. 

You can save money on automotive work by working with an honest mechanic with fair, up-front pricing. Ask for customer loyalty discounts or if they will honor a competitor's coupon. 

If you have two or more cars, see if you can get a small discount for having all of your maintenance and repairs done at their shop.

Choose Energy-Efficient Products

Swapping out incandescent light bulbs with CFL or LED bulbs could save you up to $3.80 per year per light bulb, explains the U.S. Department of Energy's website. 

If your home has several overhead lights in the dining area and kitchen, wall fixtures in the bathrooms and a lamp and ceiling fan with lights in each bedroom, replacing those 10 to 20 light bulbs could result in saving $39 to $75 each year from light bulbs alone.

These four actions will not make a drastic decrease in your lifestyle or comfort. They do not even require any additional time beyond your initial investment. 

With each of these tips, you could save hundreds of dollars each year, providing you with budget wiggle room.

Sizeable Spending: 4 Tips For Saving Up For A New Car

Getting a new car can be extremely expensive, but sometimes it is absolutely necessary. However, knowing how you are going to pay for it isn’t always easy. 

Luckily, if you look at enough dealers, such as those with Young Automotive Group, you can generally find a new car that fits within your budget. Also, if you need too loans are always an option. 

However, though you can get a loan to buy a used or new car, dealers typically want you to put at least some money down on a car. Saving up money for a down payment also will help to make your car payments more affordable. 

Here are four tips for saving up for a new car.

Cut spending

One of the best ways to save extra money for a car is to cut spending. Most people have things in their budget that they could reduce spending on or cut out altogether. 

For example, are you eating out a lot or getting coffee every day. Pack yourself a lunch and make your own coffee, and you can easily save $10 or $20 extra a week. 

If you are paying for a gym membership you aren't using, consider dropping it. You can make lots of little spending cuts that can add up to extra money for a car.

Make Savings Automatic

You will tend to spend more money if you make your savings automatic. Have money directly deposited from your check into your savings account every month. 

You also can see if you can set up a regular transfer from your checking account to your savings account each month. By making savings automatic, you are more likely to stick to it and build up money for a car.

Bring In More Money

You will have more money to save if you are earning more money. There are a number of ways to do this. 

If your job offers overtime, see if you can pick up a few extra shifts. You also can see about getting a second part-time job or doing some sort of contract work. Another way you can earn more money for savings is to sell items you no longer need.

Consolidate debt

If you have credit card balances, consolidating them onto one card with a lower interest rate could free up money to save. 

Other ways to consolidate debt include refinancing your house. Lowering your interest rate on debt should lead to lower monthly payments, which will create more money in your budget that you can dedicate to saving for a car.

Saving money for a car or other large purchase is easier than it sounds. Being disciplined and making a few smart financial changes can lead to a considerable amount of extra money, which will make your car purchase more financially feasible.

4 Investments That Will Save Your Family Serious Money in the Future

'It takes money to make money', goes the old platitude, but it's even more true to say that it takes money to save money. 

It may be a struggle to save up the money for these moderate investments, but putting the effort in now will reward you well in the future by reducing your expenses. Here are four things you can do:

Replace Your Incandescent Light Bulbs

This idea is the easiest to budget and do, even if you're working with a shoestring budget. You can sometimes find these on sale at $8 for a 4-pack. 

A 60-Watt equivalent LED bulb uses 11 Watts, meaning that each one can save you over $500 over its lifespan. 

Lighting is about 40% of your electric bill, so this small investment starts keeping money in your pocket right away.

Get a Chest Freezer

This is a larger investment, but it lets you stock up during sales and really cut down the grocery bill over the long run. 

When you can start buying quarters or sides of beef, you'll eat far better cuts for not much more than you're paying for hamburger now. 

Store gallon or 2-liter jugs of ice in your freezer to keep it full to minimize electric use.

Upgrade Your Air Conditioning

If your air conditioner is more than a few years old, you're probably paying too much to run it. 

Look at the energy efficiency of your present unit, and then the energy costs of the models available now. As Seliga Heating and Cooling explain, you may recoup this investment fairly quickly if your AC is even moderately old. 

Heating and AC can be as much as half of your electric bill. All of the savings after your investment is recovered are profit.

Trade In Your Appliances

Appliance manufacturers have made tremendous strides in energy efficiency in recent years. 

Go through your house and make a list of all of your electric appliances, noting their model numbers and energy ratings. Then look online at the current models and their energy ratings. 

Rank your appliances by annual energy savings and start with the biggest one. It's not uncommon for a refrigerator's savings to be over $50/year. 

Don't forget to ask dealers for trade-in allowances and look for rebates and tax credits when you're figuring your costs.

Hopefully, these tips have been useful to you and will help you save in the years to come. You don’t have to do everything all at once, though, just start with one at a time.