Should You Get Pre Approved Before You Start House Hunting?

Some house-hunters don't talk to prospective mortgage lenders until they find a property they want to buy. Others arrange to be preapproved before or while they hunt for the perfect home. Here are some reasons to get preapproved before you make an offer on the house of your dreams.

Preapproval Helps You Find the Right Lender

Look for the best financial lender for your housing needs before you start shopping for a home. It can take time to compare interest rates and mortgage loans to find the one you want to work with. Sometimes, the monthly payment amount will vary from one lender to another. 

The interest rate might also vary based on factors like your credit score and whether you authorize automatic payment withdrawals. When you find the best terms for a mortgage loan and choose a lender, you can apply for preapproval.

Being Preapproved Saves Time

The approval process takes time and requires documentation, so doing it before you find the home you want to buy can help to expedite the purchase transaction. 

You will be already approved and ready to buy your home without taking the chance that the lender will not accept your application for a mortgage loan. 

If you applied for approval after choosing a home to purchase, the loan approval process can be time-consuming. Prepare as much as possible in advance so the financials will be in place when you make an offer to buy a property.

You Will Know How Much You Can Afford to Pay

Some homebuyers fall in love with a house that is really beyond their budget. They discover that when they apply for a loan and learn that the price is more than they can afford. 

You may want to ask a mortgage broker how getting preapproved reveals how much you can afford to pay for a house before you start shopping for one. 

You will also be aware of your monthly mortgage payment, which can help you to choose a home that is worth the cost.

Homeowners Often Prefer Preapproved Buyer Offers

It is not unusual for a seller to receive multiple offers on their property. You might assume that the highest offer is automatically accepted. 

But many sellers prefer to negotiate with a preapproved buyer who is already eligible for a mortgage loan and adequate funding. This will give you an advantage in the housing market.

Mortgage preapproval is a valuable tool in the hands of a prospective homebuyer. Talk to mortgage loan experts about your eligibility for financing pre-approval.

How House Insurance Can Protect You and Your Family from Weather

Unexpected events such as storms, heavy rains, or vandalism can cause thousands of dollars in property damage. Most homeowners are not always in a position to cover the losses. Here are ways you can protect your home by taking an insurance policy.

Protect Your Home from Storms

One of the reasons you may want to have home insurance is to protect your property from storms. In recent years, the weather has become more erratic due to climatic changes. 

Your insurance can cover you in case of heavy rains, tornadoes, or fires. Home insurance can protect the main dwelling from damages caused by such weather events. If your roof caves in because a tree fell on it after a storm, your policy will pay for it.

Some policies will cover 80 to 90% of the cost. But ideally, you should get 100% coverage for your home. Be sure to review the terms of the policy and what it includes.

Cover for Valuable Items

Property insurance can also compensate for loss or damage to valuables in your home. The policy will cover your belongings or appliances against fire, lightning, or vandalism. 

You can protect precious items from your home, for example, when moving your house. Most property insurance policies will include the loss of valuables away from your home.

The valuables don't have to be within the building. For example, when you damage your portable device while on vacation, you can get reimbursement for the loss.

Protect Outdoor Shed or Greenhouse

You can protect outdoor sheds, greenhouses, or other detached buildings in your home through your homeowner's policy. The insurance covers the deck attached to your house from storms or vandalism.

Ensure Your Home from Liabilities

Depending on the coverage, it may include liability insurance. When someone is injured on your property, the insurance will cover the costs. Otherwise, you will be liable for medical bills that could be thousands of dollars.

The purpose of the policy is to protect you from lawsuits in case of an accident on your property. But it does not include injuries for tenants of the house. In such situations, you will not get reimbursements from your liability insurance.

Conclusively, it is always advisable to have a home insurance policy to protect your home from unexpected losses. However, policies may vary in what they cover. Most providers will include protection from storms, vandalism, and fire. But you ought to take the time to understand what the cover entails.

Top 5 Reasons to Refinance Your Home

Homeowners should consider refinancing their homes if they look to save money on their mortgage or obtain a lower interest rate. There are many reasons people choose to refinance, but the most common ones include paying off debts faster, consolidating debt into one loan with one monthly payment, and unlocking the equity in your home.

Refinancing can also be beneficial for homeowners who want to take advantage of recent changes in tax law by deducting some of the costs associated with refinancing. This blog post will cover 5 reasons why homeowners should consider refinancing their homes.

Save Money on Your Mortgage Interest

One of the biggest benefits of refinancing is that you can save money on your monthly interest rates. Refinancing allows you to get a lower interest rate, which in turn lowers your mortgage payment, allowing you to have more money in your pocket each month. 

Your credit and financial history will be considered when determining if you qualify for a refinance loan and what types of terms and rates are offered. Before applying for refinancing, the homeowner must have all their information together including making sure they don't have any late payments or taxes owed. 

It's also helpful if the homeowner knows how much equity they currently have to discuss options with their lender at the time of application.

Pay Off Debit and Credit Cards Faster

Refinancing your home can help pay off debt more quickly by allowing you to combine multiple debts in to one low monthly payment. 

For example, if the homeowner has a $200,000 mortgage and $10,000 of credit card bills, they can refinance their existing loan and apply any savings towards paying off these debts. 

This is especially beneficial for homeowners who have good credit and stable jobs that will allow them to keep up with payments on their new loans. Suppose the homeowner decides that refinancing isn't right for them. 

In that case, there are other options available, including consolidating your debt into one loan with just one monthly payment or creating a "debt snowball", which allows you to slowly pay off all your debt in order of interest rate.

Uncover Equity in Your Home

Some homeowners are also able to refinance to unlock equity in their homes. This is common for homeowners who have lived in the same house for years and watched home values increase over time. 

To renew their mortgage, these homeowners can use some or all of this equity that has built up over time to help them afford a lower monthly payment without refinancing their entire loan amount. 

Refinancing can be lucrative if you're planning on moving out soon because it may be beneficial to go through the process, even if just for the cash savings alone. Home refinance loan rates are lower than mortgage rates which means you could receive a larger sum of money in your pocket.

Take Advantage of Tax Deductions

Homeowners who have been paying off their current mortgage for years may find that they are in a better position to take advantage of recent changes in tax law that allow you to deduct some of the costs associated with refinancing your home. 

For example, homeowners who have paid off their old mortgage and refinance into a 30-year fixed-rate loan can claim a deduction on any points charged when refinancing. Alternatively, suppose the homeowner has an adjustable-rate or interest-only payment mortgage. 

In that case, they could receive tax deductions for the difference between what is considered "true interest" and what was reported to the borrower's lender by their broker/lender.

Improve Your Credit Score

Homeowners who have good credit will also benefit from refinancing their loans because it allows them to take advantage of lower interest rates, improving their credit score over time. 

A homeowners' FICO score is important when obtaining mortgages, refinancing loans, and applying for other types of financing. Hence, it benefits the homeowner to keep an eye on this number and make improvements along the way. 

If your score isn't as high as it could be, but you feel like you've done everything possible (like making on-time payments), look into refinancing your loan – especially if there is money involved. 

Keep in mind that improving your credit score is a long-term investment that pays off over time.

In conclusion, the housing market is in a state of flux, and many homeowners are looking for ways to make their homes more valuable. 

If you're struggling to make your mortgage payments or think the time has come to trade up, take a look at refinancing your loan. You may discover that it offers benefits you never imagined when you first purchased your home. 

When thinking about changes in the real estate market, it's important to remember that there are also financial benefits available by refinancing a current loan, including lowering monthly costs and improving credit scores over time.

7 Prominent Ways To Save Money Wisely in 2022

Saving money is one of the crucial aspects of building wealth and having a secure financial future. As they say, it is never too early to start saving; saving money provides you with an opportunity to enjoy a quality life.

Saving money is all about how calculative you are, along with the kind of techniques you use to save. Unfortunately, there are a handful of people who have mastered this art consistently.

Through this article, we aim at educating readers who find it difficult to save money, straight forward ways to save and have a financially secure life in 2022:

1. Always plan your expenses monthly: One of the essential things you should start doing as a habit is making a monthly expense budget and sticking to it as much as you can. This method is foolproof, but people avoid it as it is tedious. As you save money by the end of the month, you may use it to invest smartly and watch your money grow with a specific time frame. You may work on your budget and alter it according to your needs, allocating some for emergencies, savings, leisure, etc.
2. Saving maximum money to the best ability: If your monthly expenses are high and you cannot save as much as you want to, it is time to have a robust money-saving plan. You can identify things that you can spend less money on things like dining out or entertainment. Use resources like community events or free memberships. Limit activities like eating out, shopping, and watching movies to once a month. When tempted do an impulsive purchase, hold on for a few days. You may be glad you passed the urge to buy or look forward to saving up for it.
3. Smart investing: Saving and investing a certain amount of money in a recurring deposit is one of the best ways to save money every month consistently. This activity will inevitably make its way into your monthly budget plan. The early you start investing, the more benefits you can reap out of compounding eventually. SIP is another option if you are willing to incur a negligible risk. You can browse the internet for multiple investment options depending on how much and how long you are ready to save.
4. Manage your debts wisely: If you want to be debt-free at the earliest in life, managing them wisely is very crucial. Irrespective of the nature of the loan, you can be debt-free if you incessantly set aside the EMI amount money and make it a part of your monthly budget.
5. Manage your spending impulses: If you can list down all the expenses you can avoid in a month like limited eating out or shopping, it will automatically make it easier for you not to overspend or buy things on an impulse. This will help you to the extent to which we succumb to temptation typically boils down to our willpower. If you see something you like, wait at least a week before buying it, it might happen that the urge to buy that will pass.
6. Plan and eat home-cooked food: Food budgeting and groceries are often a large part of the monthly expense, especially when you live with your family. Planning your meals for the week, making a list of the ingredients, and prepping them accordingly is a great way to avoid wasting food, which saves money. Additionally, you may prevent packaged food and make dressings, gravies, and sauces from scratch. They taste better and cost less.
7. Earn a passive income at home: A single or even two sources of income are often insufficient with the ever-increasing inflation. A great way to earn a passive income is to channel your passion and creativity to supplement your current income. Baking cakes, making jewelry, tiffin services, or even a small online business, etc., are great ways to start.

All these techniques are tried and tested. Let’s start work on building a financially secure life in 2022.

Author Bio:

Aatish Khanna works with the Content Marketing team at Money Club, a digital chit fund platform that makes saving, borrowing, and investing your money more efficient. He writes on topics to help his readers understand processes so they can make better financial decisions. He’s the go-to person that his family, friends, and colleagues turn to for all their money matters. He loves to play board games and aspires to one day build his one finance-related board game and app.

4 Cost-Effective Winter Home Organization Tips to Get Ahead of Spring Cleaning

It is not uncommon to wait until the end of winter to start your spring cleaning, but you can make it easier on yourself by starting your spring cleaning early.

Why not start organizing your home in the winter? This way, you already have several tasks completed when it is time to start cleaning your home from top to bottom.

Getting started early will also help prevent unnecessary cleanup costs in the future. Use the following winter home organization tips to get ahead of your spring cleaning.

Start Decluttering Early

Why wait until after the new year to declutter your home when you can start now? There are plenty of organizations and thrift stores that are accepting donations for the holidays. 

This is a great time to donate clothes, appliances, books, toys, and other items that are in good condition but never used. It is easier to clean and organize your home when you lighten the load because you have fewer items in your way. 

Allowing your belongings to pile up too much may require you to hire a cleaning service if the mess becomes too much to handle alone.

Toss Unusable Items

There are items that are not salvageable or reusable at all, from stained clothes to damaged electronics. Damaged appliances can even lead to costly property damage if they are an electrical hazard. 

This also includes expired medication, toiletries, and cosmetics. It is time to get rid of these items to make room for items that are wearable or usable. 

One idea is to look into dumpster rental to avoid making several trips to a local dumpster. Renting a dumpster is also ideal if you are getting rid of heavy or bulky items, such as a broken washing machine.

Consider Storage Solutions

You also want to consider the storage solutions you are using in your home. Do you need shelf risers or a lazy Susan for your pantry? Are you looking to reorganize the bookcase in your living room? 

Maybe you want to invest in a storage cubby for your child's playroom, and do not forget about the storage solutions in your home office. 

It is easier to organize certain areas when you consider the storage solutions you have or need for your home.

Organize Main Areas

Finally, you may want to start organizing the main areas before the holidays. For example, you can divide your pantry into zones to make meal prep a breeze. 

Another example is separating everyone's toiletries into labeled containers for easier access. Of course, you should also organize the cabinet or closet of cleaning supplies. 

You can organize the areas that are not used often during your actual spring cleaning.

It never hurts to get a head start on your spring cleaning. If you keep the above tips in mind, you can cross several tasks off your to-do list before winter is even over.

How to Correctly Manage Your Bank Account

Controlling your finances is essential if you want to be ready for all the unexpected events life may throw at you, but doing it effectively is not as easy as it sounds.

Too many people go shopping without looking at the bigger picture while others might keep a savings account that’s too big, to the point where they’re unable to enjoy their daily lives.

Living with an obsession or being too carefree is equally counterproductive, and that’s why finding balance is important when you finally decide to manage your bank account effectively. 

Choosing the best checking account and being smart with your financial decisions is a good start, but that’s not all you can do.

Taking It Slow

When dealing with your finances, rushing things will only give you bad results. Your cash flow needs to be managed patiently over the course of months, even years if it’s necessary. 

Do not wait for something to happen before you start being active with your bank account. Following general guidelines and keeping essential tips in your mind will allow you to do everything patiently, so you can make the most of your situation.

Using Automation

Automating your finances will allow you to save time and have your money ready for all occasions. If it’s possible, try setting up a direct deposit with your employer so your paycheck is ready to be used when it’s time to receive it.

You can also set up your account in a way that monthly bills will get paid directly from it, so you won’t have to keep track of every due date and you won’t have to do it manually every month.

If you’re trying to save money, setting up automatic transfers to your savings account can help you avoid the temptation to go shopping or do something that will make you spend your entire paycheck.

Be Smart About Lawsuits

Accidents happen, and sooner or later, you’re going to find yourself dealing with a lawsuit because of someone else’s negligence. Everyone is afraid of dealing with legal issues because they can be expensive and many months can go by before seeing a settlement.

But there’s no need to empty your entire savings account while trying to deal with it. Patience is always repaid when trying to win a case, and that’s why asking for a pre-settlement loan is a smart choice for you and your bank account.

You won’t have to pay anything back if you lose your case, so there’s no risk to worry about. Always remember to ask for all the necessary information when taking out one of these loans, as they are regulated differently from state to state, and asking for one in Las Vegas will be different when compared to another area. Keep that in mind when you’re looking for pre-settlement funding in Nevada.

Fees

Account fees are often overlooked, but they can make a world of difference. Many banks charge maintenance fees, and the last thing you want to do is pay for the privilege of letting banks hold your money.

Do not choose the first bank available, but look for an online one that offers an account with low or no fees. Remember to avoid banks that make you pay an ATM fee, you shouldn’t have to pay just because you need to withdraw cash.

Doing What Works for You

Creating a routine that works for you is essential when managing your finances. Look at your cash flow and consider what you could be doing differently. Look at your old habits and close accounts that are too expensive to maintain. Remember to find the right balance and your money will always be in a good place.