5 Mortgage Problems You Want To Avoid So You Don't Lose Money

They say we learn from our mistakes, so that means it's a good idea to make them in the first place. What they really mean is that it's good to make a spelling mistake so the teacher can correct you. They're not telling you to make a terrible mistake when you're half way through the biggest purchase of your life. You'll still learn from the mistake, but it could cripple you. Let's look at a few things you don't want to mess up when it comes to your mortgage.

Don't go crazy with credit

Before you apply for a mortgage you don't want to have too much credit in your name. That means any big purchases you're thinking of making should be put on hold until your future mortgage is wrapped up. Even if you have the best credit rating in the world it's going to scare companies away when you owe lots of money to different people. What would happen if your circumstances changed and your finances were hit? Everyone who has lent you money would have to compete with each other to get theirs back.

Don't hide from your lender

A lot of people hate hearing bad news so they don't open their mail when it comes in. If they can't afford to pay their mortgage it gets worse because they stop answering their phone. Lenders find it impossible to reach people, but I'm sure you realize this will never make the problem go away. It could actually make it worse since lenders have a few options at their disposal and they could maybe save your home, but unfortunately this is never going to happen when they can't even contact you.

Don't skip the inspection

It's easy to fall in love with a beautiful home as soon as you walk through the front door. Sometimes they just 'feel' right and you know you want to buy it. Unless you can see into the future you don't know what is going to go wrong. The only way you can find any unknown problems is by getting a home inspection and you need one carried out before your offer becomes official. Your perfect home might look beautiful to the naked eye, but you don't know what is going on behind the scenes.

Don't lie on your application

At the moment you might not have the greatest income in the world and you could even owe some money to credit card companies, but you still have to tell the truth when you're filling in your mortgage application. It's even harder when you know you're due a big pay rise within the next year because you'll have to settle for a much smaller loan at the present moment. If your lender finds out you've lied to them you could end up in a lot of trouble and it could also be a federal offense.

Don't pick the wrong mortgage

I know it's easy to change your mortgage these days and everyone swaps around like crazy, but don't pick the wrong mortgage in the first place and you'll save yourself so much hassle. You might still need to change it further down the line, but at least you'll save yourself a few years of wasted money. People only choose the wrong mortgage in the first place because they choose the wrong people to help them, but you can take care of that by making sure you speak to a skilled financial adviser.

You only get one shot

Once you mess up you'll lose money and there is no getting away from it. You can always take out another mortgage, but your money will never magically appear again. Take your time if you're buying a home for the very first time because you don't want to regret something even if it only affects you negatively for a few years.

Author Byline:
The author of this article, Ian Andrews, is a freelance blogger, currently writing for First World Mortgage, well-known mortgage lenders in Connecticut. Ian loves cooking and on weekends he provides lessons to the underprivileged youth.

Jack Comeau on How Community Involvement Helps a Financial Planner

Finance (Photo credit: Tax Credits)

Undoubtedly, the responsibility of a financial planner, which is to provide sound, accurate financial advise to his or her clients in the goal of protecting and creating wealth for that client, is not a simple or easy thing. It takes years of experience in working in the financial markets; it takes acute people skills; and perhaps above all, it takes a real love for delivering quality client service.

The mentioning of this second requirement – people skills – touches on a point that I would like to write about. I think there sometimes exists among financial planners the erroneous idea that, in order to gather and deliver accurate financial recommendations to clients, knowledge of the client’s financial portfolio and the trends of the markets is the only thing needs to be known.

However, I think this is a real misperception in the financial planning industry and one that can lead to real consequences. I would argue that in order for a financial planner to be truly effective in their role, that is, in order for the advisor to be truly effective in sustaining and building their client’s wealth, an advisor needs to build profiles of his or her clients that go beyond simply including the client’s financial background and data. Questions need to be answered like, where is this client in life? Is the client close to retirement? Are they just beginning to set aside money? Does the client have any major short-term or long-term goals in mind? These types of questions are what I call “key life facts” and I would put my name, Jack Comeau, beside the argument that a financial planner’s knowledge of them is equally as important as his or her knowledge of the client’s financial facts.

But, how can a financial planner go about learning some of these key life facts about their client? Well, naturally, the first and easiest opportunity to do so comes when a financial planner first meets a new client and engages with him or her in an in-depth introductory conversation. Topics obvious to this conversation include how you, the financial planner, can best serve the client’s financial goals; a description of what the client’s financial goals are; and an introductory explanation of how you will go about achieving the client’s goals.

Needless to say, having this kind of introductory engagement with the client is paramount to creating a healthy, productive relationship between client and financial planner, and no relationship should go without it. However, what this sort of formal or informal meet-and-greet also provides is the perfect opportunity for the financial planner to ask the client about key life facts that, although fall outside of the direct sphere of the client’s finances, play a definite part in helping the financial planner get a more useful and more well-rounded idea of the client’s financial picture.

I would also argue that there is another way for a financial planner to gain a more well-rounded perspective of the client and his financial picture, and that’s through active community involvement. The benefits for a financial planner of community involvement I think are often overlooked, but I know from personal experience just how important it can be. I’ve been living in the Saskatoon area now for many years now and community involvement has always been a priority of mine. I’m a member of the Saskatoon Estate Planning Council, the Saskatoon Chamber of Commerce and my area’s CLU Chapter, among other community organizations. Now, yes, taking an active role in my community means that I have the opportunity of meeting more potential clients and, thus, expanding the business of Comeau Financial and advertising my name, Jack Comeau, to more people.

However, business interests set aside, I have come to find that networking and regularly connecting with members of my community does something far more vital for my role as a financial planner – since many of my clients are also members of my community, associating with them outside of my office yields a much better and much more intimate understanding of such things as their values, where they are in the path of life and what kind of short-term and long-term goals they may have. This in turn provides me a much stronger base of understanding for my responsibility of delivering financially sound advice to them.

In the end, we as financial planners must realize that making financial recommendations for a client is not something that happens in a vacuum. Our recommendations to our clients both affect and are affected by a client’s values and the milestones in their lives, two “key life facts” that we must continually strive to gain a better understanding of.

Trading Precious Metals from Home

Retired investors interested in fixed asset investments will love the rewarding experience of trading precious metals from home. Investors seeking the opportunity to buy gold bullion or buy silver bullion will find that the online trading environment is optimum for purchasing precious metals.

The Investment Potential in Precious Metals Assets

Traditional rationale for investing in gold or silver has always been that precious metals provide a safe haven. The most traded fixed asset, precious metals have been important to both domestic and foreign investment in the past several years. When markets are volatile due to the economy or government policy decision, safe haven assets buffer a portfolio from exposure and fluctuations in currency value.

Diversification in precious metals investments can now be found in the online trading environment. Competition has promoted the establishment of a number of reputable, online exchanges trading both safe haven fixed assets, securities, and secondary market contracts Investors buy and sell precious metals via digital exchange. Physical gold and certificates are vital financial instruments that retain value long-term. Gold prices dictate the precious metals trade. Calculation of silver price to gold has much to do with global demand for physical silver bullion. 

Buying and Selling Gold and Silver Bullion

The demand for physical silver internationally has also advanced recently in response to its use in manufacturing. The lower price than gold has also made silver a favorite safe haven investment in emerging markets, where at least part of investor liquidity is invested in precious metals. Although precious metals prices are expected in drop in the near term, continued demand in China and India in 2014, makes silver a viable investment choice. It is a great time to buy safe haven investments, and it can be done online.

Storage is a consideration when investing in physical gold. When trading precious metals online, research criteria to purchase of gold or silver bullion or coins. Reputable online traders will be expert numismatists, and licensed dealers of precious metals bullion and other physical assets such as coins. The best part about physical precious metals is that they are not subject to capital gains tax by the Internal Revenue Service. This presents a good reason to transfer other more risky investments to precious metals assets. 

The Primary and Secondary Precious Metals Markets

Securitized exchange traded funds (ETFs) and exchange traded commodities (ETC) offer investors another version of precious metals asset. Widely traded across global exchanges online, ETF and ETC valuation is only partly affected by the price of physical gold. More responsive to upward swings in market activity, secondary market funds are set to outperform physical precious metals in the near future. This offers investors an opportunity to transfer safe haven assets to higher earning ETFs and ETCs. Shares and investment funds established by mining corporations are another form of precious metals asset. 

Trading Precious Metals Assets Online

A licensed financial advisor specializing in precious metals trading can provide more information about gold and silver investment. Gold and silver have traditionally been long-term return assets, yet the expansion of the ETF and ETC market, as well as the securitization of mining has created new investment opportunities in precious metals. Online trading platforms offer a range of asset listings, volume of assets available for trade, and tools for analysis of markets, price changes and up-to-the-minute tips for making the right precious metals investment decision.

Retired investors can substantially improve their retirement investment portfolio with precious metals assets. Digital trading environments offering retired investors real time reporting of global precious metals markets, research, tools and trade exchange are one of the fastest growing segments in the financial sector. If you are an investor looking to buy gold bullion or buy silver bullion, you can now buy gold online and buy silver online. Invest in precious metals safe haven physical assets, or secondary market exchange to add stability and growth to your retirement income.

Protecting Your Income After an Accident

Protecting your income after an accident should be one of your top priorities aside from getting better. If you were deemed at fault for the accident, you could be paying for your own injuries as well as the injuries suffered by others. If you are not at fault for the accident, you could still see your finances jeopardized due to lost wages and a settlement payment that may not arrive for months or years after the accident. 

Settle the Case as Soon as Possible

It is in your best interest to settle the case as soon as possible. While you don't want to take a deal that isn't to your benefit, you want to find a personal injury lawyer who can help you get your case settled within weeks or months.

Until your case is settled, you should talk to your creditors about alternate payment arrangements that may be available to you. It may be possible to defer or push back payments until your case has been settled. A debt settlement may also be a possibility to help you pay your bills without draining your savings account completely.

Keep in mind that if you settle your case, you can keep most or all of that money without having to pay taxes on it. Although you should consult a tax attorney or an accountant before determining how to treat any award you receive, it is good to know that you can be made whole without having to worry about the government making things even harder on you.

Make Your Insurance Company Pay Everything That it is Obligated to Pay

Your insurance company should be forced to pay everything that it is obligated to pay under your policy. However, you should be aware that your insurance company is going to take steps to pay as little as possible. The insurance company may try to claim that you were acting recklessly or in bad faith when the accident occurs.

Those who live in a state that has no fault laws, you will be going after your own insurance company for compensation whether you were at fault for the accident or not. If you were hurt at work, the insurance company representing your employer may attempt to stonewall as well. This is where workers compensation lawyers can help you get everything that you are entitled to.

Have an Asset Protection Plan Before an Accident Occurs

It is said that the best offense is a good defense. In an accident case, having an asset protection plan can overcome what even the best workers compensation lawyers or other attorneys can throw at you.

If you are at fault for an accident and don't have sufficient insurance, having your property or cash in the hands of a trust or a LLC could keep a victim from getting too much of your personal property.

However, be aware that some or all of your protected property could still be liquidated or handed over to anyone who is suing you related to injuries suffered in an accident that you caused. Your lawyer will most likely try to shield your assets in a settlement in exchange for some other form of compensation.

If you are the victim of a car crash or a slip and fall accident, you have the right to have your case heard without worrying about losing everything before the case is settled. Those who cause accidents can settle their cases in an equitable manner without having to live in poverty if they carefully plan for it. The key is to work with your personal injury lawyer and other legal counsel to determine the best course of action in your particular case. 

Can You Get a Car Loan If You Are Retired?

If you're a retiree and are wondering if you can borrow money for a car, this helpful guide will answer your questions. Though retirees are no longer working, you could have a leg up when choosing the right car loan.

Retirees own more assets and have less debt

Retirees are people that have worked all their life. They usually have high equity a home, or have completely paid off a mortgage. Having collateral like this means retirees can qualify for a loan and in some cases, lower interest rates.

A good credit history

Having a good credit history also increases your chances of not only securing a loan, but getting one at a lower interest rate. It makes sense to check your credit history to fix any mistakes.

Income beyond work

A lender usually asks prospective borrowers for their proof of income. This really means proof you have a stable job. Many retirees have alternative forms of income. They tend to have significant savings and/or superannuation packages. Some retirees have stock or property portfolios that provide a part of their income. This proves they have the funds necessary to pay back a loan.

Age can be a factor

Typically, five-year loan terms aren't a problem for financial institutions lending to retirees. They may offer 36 to 24 month loan terms if age is a factor. If you have significant savings, you can opt to put a larger deposit on the car, which reduces your monthly repayments further.

Find out what's right for you

Remember; it pays to find out what's out there. Don't apply for too many loans, as it will reflect negatively on your credit history. Consult a financial professional to help choose the most manageable and affordable car loan for you.

Seven Easy Schemes to Clear Off Debt from Credit Cards

Credit card debt, this is one of the main problems that common people face concerning their finances. Having credit cards are tempting, these can make you spend more than what you actually earn. Excessive use can lead to more bills to pay with crippling interest rates and finance charges; making impossible for others to get out of debt. There is no automatic remedy for credit card debt but there are few steps to take in order to become debt free.

All you need is planning and budgeting, sooner you’ll find yourself getting out of credit card debts even faster than you can imagine. Study these seven steps to be able to pay your credit card bills sooner.

1) Make a list

List down all your credit cards, outstanding balances, interest’s rates, and required minimum payments. Do this so that you can easily track down your total debt.

2) Arrange from highest to lowest

The bill with the highest interest rate must be at the top, and so on, making the lowest at the bottom.

3) Calculate the total amount

Compute for the total amount of minimum payments billed for each card. So you will know how much monthly budget you’ll need for credit card payment amortizations.

4) Set a priority payment

Although there is a minimum amount being set for minimum payment, you must still desire to pay debts faster. In order to clear debts quickly, add extra payments for each credit card due.

5) Pay off one at a time

Clear off one credit card bill faster. Begin from the number 1 on your list because higher interest rates will cost more bill amount. This means, pay more than the minimum amount if you have extra cash.

6) Create a payment pattern

Continue doing this process up until the first credit card debt is paid off. Once it’s cleared continue with the second card but follow whatever amount you paid with the first one.

7) Repeat steps 1-6 until all your credit card debt have been paid off

It is important to understand how minimum payments work. When your total bill decreases, your minimum payment also decreases. That is why; it would take many years before you can actually clear off your debts if you will just stick to paying the minimum amount. So, the secret is to always increase your payment. Make it double or triple the amount. Just ignore the required minimum amount, stick to your plan. In less than a few months, you will notice that you finish paying credit card debts one at a time. Although this process will take time, be patient enough because it might take months or years before you can say you’re debt free. If you want to speed up the process, you can pay all of your debts whenever you have much money. You can also avail of balance transfers. These usually have smaller interest rates.

While credit cards exist, debt also exists. If you will only exercise self-control and practice paying debts on time, you may not go wrong in using your credit cards and not be worried of debts anymore.

Claire Reed is a finance writer for https://www.Loansforbad-credit.co. Claire Reedif is always online. If you have any questions, please, let him know!