4 Benefits to Being a First Time Home Buyer

If you have been renting for years and have now decided to finally purchase your own home, the journey ahead will be filled with excitement and anticipation. 

Also, since this will be your first home purchase, it will include many great financial perks along the way. Whether it's tax advantages, help with a down payment or other incentives, you will have plenty of opportunities to see your home purchase become easier than you ever imagined. 

As a first-time buyer, here are four of the biggest benefits you'll gain as you move forward with your transaction.

No IRA Withdrawal Penalty

As a first-time buyer, you can look to the money in your IRA to help fund your purchase. In fact, you can take as much as $10,000 out of a Roth IRA or traditional IRA without being required to pay the dreaded 10% penalty for early withdrawal. 

Once withdrawn, the money can be put toward closing costs, a down payment, or other related expenses.

Down Payment Assistance

When you are a first time home buyer, some states have programs in place to provide down payment assistance. Based on your income, these programs may also have limits as to the cost of the property you wish to purchase. 

However, if you qualify, you'll get help making a down payment, paying closing fees, and even making repairs to your new home.

Home Mortgage Interest Deduction

One of the biggest benefits you'll gain as a first-time buyer, the home mortgage interest deduction, will probably be the largest deduction you will take on your tax returns. 

To make sure you take full advantage of this perk, be sure you have your tax returns completed by an accountant or CPA who is up-to-date on the latest federal tax regulations.

Residential Energy Credits

If you have bought a new home and want to make it as environmentally friendly as possible, you will get plenty of help from the federal government to make this happen. 

By taking advantage of the Residential Energy Credits from the IRS, you can install solar panels, energy-efficient windows, heating and cooling systems, or even geothermal heat systems or wind turbines and be eligible for tax credits equaling 26% of your total costs.

Now that you are aware of the many great benefits you'll gain from being a first-time homebuyer, you can contact a real estate agent and get closer and closer to making your dream of homeownership a reality.

Have Junk Around? 4 Ways to Make Money From It

Like most people, you probably have some junk sitting around the house and garage, but you're not quite sure what to do with it. Did you know that you can not only have someone else remove it, but they will also pay you for your junk? Here are some of the popularly used items that shoppers are looking to buy.

Furniture

College students are always looking for used furniture for their dorm rooms or a private study area at home. They prefer buying second-hand tables, desks, chairs, and sofas that don't cost as much as new ones, since they are on a tight budget. 

Antique fans like to buy older furniture and refinish it for a retro look in their home. Some people buy used items, refinish them, and sell them for a profit online. Make sure your used furniture is clean and basically usable before offering it for sale.

Clothing

Children's clothes are often in demand, as kids grow rapidly from one size to the next. Baby clothing and blankets, children's play clothes and school uniforms, and dress-up outfits for holidays and church or special celebrations can sell very quickly at a garage sale or online at eBay and similar companies. 

Wash the clothes, sew on missing buttons if you have time, and fold them neatly to attract buyer interest. Label the sizes if possible.

Toys

Classic dolls, model cars, and action figures from previous generations are selling like hotcakes today. Some wildly popular toys like Barbie or Tinker Toys can fetch surprising amounts online from buyers to add to their collections. 

If you have the original packaging in good condition, the price can go even higher. Make sure the pieces are all there for kits, and everything should be clean and in good condition. Even at a yard sale, toys are one of the first types of merchandise to go.

Vehicles

Check your garage for bicycles, motorcycles, or a second family car that no one is driving. You can earn money for junk cars, from places such as A1 Towing & Cash For Junk Cars, that don't even run or are missing parts. 

In fact, you can sell just the parts if a vehicle is not operable or complete. Clean up whatever you have on wheels to sell, and ask a fair price to have someone remove it from your garage.

Getting rid of junk is not only fun and a huge relief, but it can also be profitable. Comb through your unwanted possessions to sell things that others will find valuable.

Get a business credit report online and keep your standard high

Lenders, investors, and even potential business partners may use business credit reports to determine how safe the company they are dealing with, is. However, unlike personal credit reports, business credit reports are not legally required. 

A business credit score is a measurement of the company's creditworthiness. Lenders and creditors use your credit score to determine if you are eligible for financing. 

Usually, business credit scores range from 0-100. You're already aware of the value of personal financial management as a small business owner. You already know that having Transunion business credit report online is essential for getting a home loan, a personal or car loan, or even a personal credit card. 

Having said that, many business owners are unaware that the same credit monitoring and reporting system is available to them as well.

What is a credit score for a business?

Let's start at the beginning: what is the concept of a business credit score?

In fact, just as your personal credit score is a numerical assessment of your creditworthiness as an individual, your business credit score is a numerical assessment of your and your company's creditworthiness. 

As a result, just as creditors and lenders use your personal credit score to decide whether or not to accept your home mortgage, credit card, or another form of personal financing, your Transunion business credit report online is used by lenders to assess you when you apply for a loan, insurance policy, or another sort of business financing.

What factors go into determining your business's credit score?

Let's talk about how business credit works and how business credit report is measured now that we know what a business credit score is and why it's relevant. As previously mentioned, your EIN is linked to your business credit, and your business credit is dependent on how you handle your company's finances, just as personal credit is.

After you start your company, you'll build business credit based on financial activities such as how efficiently you pay invoices on time, how you control your cash flow, how you keep track of your business bank account, and, of course, how you handle credit items like business lines of credit, credit cards, and loans. 

In essence, your company's financial operations and background are reflected in your business credit history, which influences your business credit score.

Though the method for calculating and reporting a personal credit score is fairly common, calculating and reporting a business credit score has a lot more variety. 

As previously stated, your business credit score will typically fall between 1 and 100, although the factors used to arrive at this numerical assessment will vary greatly depending on the credit bureau.

5 things that affect the business credit score

Despite the lack of consistency among the various business credit reporting agencies, you should expect these five variables to affect your business credit score, at least to some degree, regardless of which agency is involved:

1. Time in business

Because of a lack of credit, the business credit score would be lower when it is brand new. This will become less of an issue after the company has been in service for two years, at which point banks will be more likely to finance them with business loans.

2. History of payments

The single most important factor affecting your business credit score is your consistency in paying bills on time, every time. Even a single late payment can have a significant impact on your potential access to capital, so you'll want to make sure you set up a system to keep track of payments from the start.

3. “Credit mix”

You can create credit in several ways, including using a business credit card, taking out loans, and creating trade lines, as we briefly described. On the other hand, future lenders want to know that you can handle your finances properly in any borrowing situation. 

As a result, your business credit score is influenced by your "credit mix"—you can improve your credit score in this category by taking out different types of credit and handling them properly.

4. Credit utilization ratio

Reporting agencies want to see if you're managing your business credit responsibly, which means making frequent payments and not depending too heavily on the credit you've been given. 

Credit bureaus can measure your credit utilization ratio when calculating your business credit score; for better performance, keep your credit utilization at about 25% of the total amount you've been extended.

5. Mistakes on your business credit report

Unfortunately, the business credit reporting process is not flawless, and reporting errors occur more often than you would expect. As a result, debt or loan defaults can be misattributed to your business credit report, significantly lowering your business credit score. 

To prevent these problems, keep an eye on your credit reports regularly and seek corrections for any errors you notice in writing.

If you use Transunion business credit report online, you can save money and avoid the possibility of bad loans and the difficulty of finding new customers when someone unexpectedly goes bankrupt. 

A professional service will help the company grow, reduce costs, and avoid the negative consequences of a poor business decision.

Thinking About Estate Planning? What You'll Need to Include in It

Your property, cash assets, and debts will all need to be settled after you pass away. To protect your loved ones, it's critically important that you have your information in order. This doesn't mean that you have to have a price tag on each item you own, but you will need a list of

• real estate
• collectibles
• power tools
• vehicles
• account numbers to your investment accounts
• phone numbers to account managers
• insurance policies

Anything that can be thought of as an asset or a liability will need to be addressed upon your death, so try to get on top of this while you're healthy enough to get things organized.

Structure Is Key

What are you trying to fund and who do you want to help when you're gone? There are many different ways to pass on what you've accumulated over the course of your life. Connecting with an estate planning attorney early in the process can help to simplify things for those you leave behind.




If you want to put your remaining retirement monies in educational trusts for your grandchildren, set up the accounts before the money is available so it will flow through with minimum fees. 

For those who have a dependent who's special needs or will be collecting disability funds, a special needs trust will be needed. It's critically important that you get the structure set up before the money becomes available.

Simplify Where You Can

Consider what items you can easily pass on by listing the beneficiary as a partial owner. If you pre-decease your spouse, your belongings will generally go to them automatically, but if you are a single or a widow, you can reduce the burden on your beneficiaries by setting up payable-on-death arrangements to keep big ticket items out of probate.

Having a will doesn't protect your beneficiaries from having to go through probate; it actually makes probate a requirement. Tools such as a joint ownership deed on real estate and payable-on-death bank and retirement account structures will protect your loved ones from the time and legal hassles of funneling your estate through the courts.

You want your loved ones to think of you fondly, so do what you can now to protect them from having to deal with estate pressures on your death. Inventory what you have. 

Set up a list of bank accounts, retirement accounts, and insurance policies with contact phone numbers and passwords. Put this list in a very secure place and let your loved ones know where to find the information.

How to Budget for Insurance and Other Needed Items

As you get older, you need to budget for a number of different types of expenses each month. Insurance is one of the most important types of expenses that can reduce your risk of significant loss if accidents or injuries occur. 

There are a few tips to follow to get started if you want to know how to budget for insurance and other needed items.

Use a Spreadsheet

Use a spreadsheet to itemize your different insurance costs each month to ensure you can calculate the total cost. Write down the date that you’ll need to make the payment each month to ensure you can avoid late payments. 

If you’re not sure of the cost of your policy, contact the insurance company or review your previous statements to know how much to budget for in the coming months. 

After you obtain an insurance quote and get a policy, set up automated payments to avoid late payments and make it easier to maintain your budget.

Create a Separate Savings Account

Setting up a separate savings account can allow you to have a place to store extra money to pay for your insurance and other needed items when you get paid. 

This can prevent you from spending money on splurges or unnecessary purchases. Calculate how much money you need to set aside each paycheck to ensure you can afford the payment.




Setting up an automatic savings plan will also make it easier to automatically put the money aside to develop more discipline with maintaining your budget.

Save an Emergency Fund

Save at least $1,000 for an emergency fund, which you can use to put towards unexpected bills that you’re charged for each month. This can include last-minute car repairs or even a trip to the emergency room. 

With the extra money available, it’ll help you to avoid stress and debt when your budget fluctuates and changes at times.

Use Cash

Setting aside cash and placing it in different envelopes for some of your expenses each month can allow you to become more organized and have self-control. Use the gas for fuel, groceries, and dining out to stay within your budget and avoid overspending.

Learning how to budget for insurance and other needs will make it easier to have a system in place and have more control of your finances. You can avoid overspending and have the necessary funds to keep your insurance policies.

How to Determine if You're Financially Ready to Upgrade Your Home

If you're finding that your current home doesn't meet your needs, it's time to start thinking about upgrading. Before you can call a new house "home," though, it's important to make sure that you're financially ready to begin the process. 

By taking some smart steps in the preliminary stages of the home buying process, you'll ensure that you're able to afford your new home and still have money left over to enjoy other pursuits in your life as well.

You've Got a Handle on Debt

A major debt load can quickly hamper your efforts to upgrade to a new home. Large amounts of debt will cause lenders to see you as a higher risk, meaning that you'll likely have higher interest rates than you would otherwise. 

Plus, even if you can obtain a mortgage, your high debt load will put you at greater risk of defaulting on your mortgage and potentially losing your new home.

You've Spoken With the Experts

Trying to decide whether or not you're ready to upgrade your home can be a challenge if you base your decision only on the nuggets of information you've learned through the years. 

That's why you'll want to speak with knowledgeable individuals to better understand your financial situation. A financial advisor can look at your complete financial picture to determine if you're a good fit for a home upgrade. 

You can also speak with home experts in your area to determine how to get the best value for your money when you're cleared for an upgrade.

You Can Separate Your Needs From Your Wants

There are many features on a home that can increase its price. However, not all of those features are items that you need to have to enjoy your home. 

That's why it's important to find the best realtor in your area so that they can help you separate what you want from what you truly need. This will help keep your search scope limited to homes that are more affordable so that you don't bust your budget chasing after features that you might not use.

Your Job Is Stable

Long-term financial stability is absolutely crucial when you decide to upgrade your home. Even if you currently have enough money for a down payment, you'll still need a lot more money down the road to ensure that you can comfortably make your monthly payments. 

Therefore, if you think that your job might be changing significantly in the coming months, it's probably better to wait to upgrade your home. Once things settle down, you can get more serious about finding the right home for you.

For most people, the home buying process brings with it a lot of unknowns. To ensure you make good decisions along the way, it's important to ask any questions during the process. 

Don't pretend that you know all the answers and find out later that you missed something important that makes the buying process more difficult.