5 Reasons You Might Not Qualify for a Home Loan

Now that you have found your dream home, you thought qualifying for a home loan would be the easy part. However, this may not be the case. 

Although lenders are generally more eager now than in past years to approve mortgage loans, there are some instances where you may be denied the loan needed to purchase a home. 

Should you be preparing to apply for a home loan, here are some of the most common reasons why you may be turned down.

Poor Credit History

If you have had past credit problems, your poor credit history may be the reason your loan application was denied. Since a lender wants to make sure you are not a high-risk applicant, any problems with foreclosures, bankruptcies, or credit cards could be reason enough to deny your claim. Generally, if your FICO score is under 620, your loan will be denied.

Income/Asset Documentation

Even if you think you have enough money to make a monthly mortgage payment, your lender may not think so, especially if you are unable to provide sufficient documentation regarding your income to debt ratio. 

Should questions arise about this or other related areas, private equity representation may be what's needed to let everyone make a well-informed lending decision.

Very Small Down Payment

If you put down a minimal down payment on your new home, the lender will view you as a high-risk applicant, and thus may deny your loan. If possible, try to put down as much as 25% of the home's price as a down payment, since this will almost guarantee approval.

Issues with the Property

If your new home is appraised at an amount that is far less than the amount of the mortgage loan, your lender may deny your application. While you can get a second appraisal, your best option is to shop around for other lenders.

Limited Employment History

Should you possess a limited employment history or have one where you have changed jobs frequently, this can be used against you by your lender to deny the home loan. 

In most cases, a lender will want you to have at least two years of consistent employment with your current employer prior to approving your loan.

If you have had your home loan application denied, don't give up. By seeking out other lenders and making improvements where you can, it is quite possible you may still get the loan needed to purchase your dream home.

How to Prevent Foreclosure When Struggling to Pay Your Mortgage

When you cannot continue making your loan repayments, lenders and banks will consider selling the asset you had registered as collateral, such as a home. 

There are, however, steps that can help you prevent foreclosure from happening. Below are the hints that you need to consider.

Request for a Loan Modification

When you are stuck on repaying your mortgage loan, one thing you can do is negotiate with your lender. The negotiation will help you reduce the loan terms that you had agreed upon when signing the agreement. 

When requesting a loan modification, you want to either reduce the monthly interest rate or request an extension of your loan term. It, therefore, ensures that you do not struggle to pay for the remaining loan.

Forbearance Agreement

You are eligible to enter this agreement only when you are facing financial constraints on paying the loan. For example, it could be a medical emergency or sudden income reduction. 

You will, therefore, need to prove to your lender the situation that you are currently in, as this will increase your chances of the forbearance is granted. During this period, you should regain your financial stability hence can, after that, pay for the mortgage loan without trouble.

File for Bankruptcy

By filing for bankruptcy, you will be delaying the foreclosure process. You could either file for chapter 13 or chapter 7 bankruptcy. 

To know which is best for your current financial position, it would be best that you consult with a bankruptcy attorney. However, you should note that the lender has the authority to get full payment for the mortgage loan if your request for bankruptcy is suspended. 

Due to this legal move, you will have created a negative credit score, which means that you will not qualify for refinancing.

Consider a Short Sale

When you have considered all the available options yet are not working to your benefit, selling your home is the last resort. You will have to sell the lender your house even though it does not cover the entire outstanding balance. 

Before you proceed with this option, it would be best that you consult with your lender to know whether they agree with your plan.

To ensure that you do not get into this situation, it would help if you do not accumulate your debt. However, if it is inevitable, ensure to go through the options above to know which would be helpful to you.

How to Prepare for Your Next Tax Return

Statistics indicate that over 80 million Americans use a professional on a yearly basis to assist them with their tax returns. If you fall under this category, you've come to the right place. 

As the old saying goes 'Proper Preparation Prevents Poor Performance'. As such, the IRS recommends that you prepare for the next tax season as soon as possible.

Prepare Important Documents, Bank Statements, and Tax Forms

The idea of gathering your documents early, for the next tax season may seem minor, but gathering all the documents you need and placing them in a convenient location can help to ensure that you don't forget anything once the season actually approaches. 

Experts suggest that you should create a folder in which you place every document that you'll need for the upcoming tax season.

Make A Charitable Donation

Spring and summer are perfect for doing some thorough cleaning around the house. In the midst of doing this, you'll undeniably find clothing and other items that you no longer use. 

Therefore consider donating some items, because you can deduct them on your upcoming tax return.

Tax Attorneys

Depending on your particular circumstance, you may owe taxes for the upcoming season. For instance, as a private contractor, you have to set aside a portion of your income to pay in taxes at the end of the year. 

If you fall under this category or if you want to ensure that the process remains error-free, consider the possibility of hiring a tax attorney. Tax attorneys can help you to:

• Reduce your tax burden
• Establish a savings account for the sole purpose of accumulating money you think you may have to pay.
• Estimate how much you may owe and develop a budget that enables you to set aside a portion of your income to take care of said obligation.
• Maximize itemized tax reductions.

Lifetime Learning Credit

If you're in college, there's no reason why you shouldn't take advantage of the Lifetime Learning Credit (LLC). If you're currently in school and claim the Lifetime Learning Credit, you can get a tax return of up to $2000.

Dependents

If you recently became a parent, you need to gather information on your dependents so that you can include them on your tax return. In order for you to claim a dependent, you need the social security number and name of said person.

Every year, millions of taxpayers wait until the very last minute to file their taxes simply because they failed to organize the necessary paperwork beforehand. 

But, by preparing for the upcoming tax season way in advance you can submit your return as soon as possible which provides you with several benefits such as getting your refund faster as well as extra time to pay taxes in the event that you owe.

4 Steps Seniors Should Consider When They Want to Downsize After Retirement

Downsizing is a great way for you to simplify your life and potentially save yourself some money, but that project is easier said than done. If you have recently retired and are ready to downsize, then you need to come up with a long-term plan that is going to streamline that process.

Cleaning

When it comes to any move, decluttering is always going to be one of the most important steps. Spending a little bit of time cleaning up your home and the rest of your property is going to make each following step that much easier. 

If you own the home and plan on selling it, then you might want to consider getting it professionally cleaned as well. Professional cleaning services are very affordable, and they could save you quite a few hours of work and get a deeper clean than you might be able to get.

Categorizing Your Belongings

Once your home has been cleaned, it is then time to begin the process of categorizing all of your belongings and decluttering. While that task might seem daunting, you can turn each room into its own separate project, going as quickly or as slowly as you need. 

As you go through your possessions, you should break them up by items that should be thrown out, given away, sold, and kept.

Finding the Ideal Living Arrangement

After you have gone through your entire home and all of your possessions, it will be much easier to determine exactly what kind of new living arrangements you are going to need. 

For example, you might be looking for an apartment or condo if you don’t want to deal with a lot of space or yard maintenance. If you expect to have family over regularly, you might want something with a little more space.

Instead of looking for a new home on your own, you should consider working with an experienced real estate agent who understands the local market. 

Explain to them exactly what you’re looking for in terms of location, space, maintenance, and other considerations. As long as you start your search early on, you will have plenty of time to find the perfect living arrangement.

Preserving the Items You Want to Keep

Even if you are able to get rid of a sizable portion of your possessions, you will still probably need to put at least some of your belongings in storage. 

Many people are surprised to hear that quite a few everyday items require climate-controlled storage so that they don’t become damaged. Luckily, those units are often fairly inexpensive if you sign an annual contract.

Older adults who are getting ready to retire and downsize should try to start this process as early on as possible. Downsizing is going to be easier and less stressful if you take the first steps a few years before you plan on retiring and moving to a smaller residence.

Who to Consult About Your Taxes

Filing taxes is a process that is not always possible to do alone. There are several, major types of professionals to contact about your taxes. 

The type of provider you choose depends on your specific tax needs. Become more familiar with the various tax experts and their duties in helping the taxpaying community.

Tax Accountants

Tax accountants handle the numbers and calculations that must be filled into tax returns. They assist clients in filling out returns correctly and meeting IRS deadlines. 

They provide their expertise before, during, and after an IRS audit. They keep up to date on current tax laws that can affect anything from penalties to deadlines and tax incentives.

Tax Attorneys

Tax attorneys assist with the legal aspects of paying taxes. They understand the basic overviews of local, state, and federal tax laws that most people find to be too complicated. Many of these rules are written in legal jargon, seem contradictory, and tend to be ever-changing.

Tax Preparers

There are different types of tax preparers that vary based on their uses and benefits to each client. Certified public accountants have passed the CPA exam for meeting high standards in accounting. Enrolled agents focus more on taxes than accounting. 

They are federally recognized tax preparers who provide services for clients who are dealing with the IRS. Non-credentialed tax preparers do not have professional credentials but practice in preparing taxes.

Tax Advisors

Tax advising is a broad field that comprises certified public accountants, attorneys, enrolled agents, and non-credentialed tax preparers. 

There are professional tax consultants who specialize in developing strategies to reduce tax fees and increase savings over time. They go beyond answering basic questions to develop complex, individualized solutions on how to handle one's taxes every year.

Many tax advisors are available online to provide services to their clients at home. Some professionals provide 24/7 help, which is especially helpful for tax procrastinators. 

Online advising is recommended for people who have all types of questions from basic and generic to specific and detailed.

Today, many people are filing their taxes online through software programs. When there are errors in your tax returns or you're facing an audit, finding a professional to work with is recommended. 

Most tax professionals are not generic and have specialties that distinguish them from others. It's the taxpayer's duty to know which expert to consult the most for a tax problem.

Step by Step Guide to Getting Social Security Disability Benefits

Social Security Disability benefits are designed to help you provide for yourself and your family if you cannot work due to a disability or medical condition. 

It can be hard to get approved for disability benefits. In fact, most people who apply for benefits are denied the first time. However, you can do the following to ensure that you get approved for disability benefits.

Make Sure that You Qualify

Simply having a disability is not enough to qualify for benefits. You must have a condition that interferes with your ability to walk, stand, lift or sit. Cognitive issues can also qualify you for disability.

Your condition also has to last for at least 12 months. If you have a problem that you are likely to recover from within 12 months, then you may not qualify for benefits.

Get Your Medical Records Together

You need to submit proof of disability along with your Social Security disability claims. Your medical records can prove that you are disabled. That is why you need to make sure that you make copies of everything that you submit to the Social Security Disability Administration.

Submit a Copy of Your Work History

Many people are denied Social Security disability benefits because they decide to skip this step. The reason that the Social Security Administration asks to see your work history is that they want to verify that your disability will stop you from doing your job. 

You should make sure that you include when you worked, where you worked, your job title, and your specific job duties.

Hire a Social Security Disability Attorney

Many people wait until they are denied benefits to hiring an attorney. However, it is best for you to hire an attorney before you apply for benefits. 

Your attorney can help you file a claim and make sure that you have all of the information that you need to support the claim. Your chances of getting approved for benefits will be a lot higher if you hire an attorney.

Before you apply for benefits, you will need to make sure that you have a condition that qualifies for it. You will also need to get all of your medical records together and submit a copy of your work history. Furthermore, it is a good idea for you to consult with a Social Security disability attorney.