Author: Staff Writer

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Financial Real Estate

10 Questions to Ask Your Mortgage Broker or Lender

mortgage broker

When you’re getting ready to shop for a mortgage broker or lender, you are preparing to make a huge financial commitment. Things can go as expected, but in some cases, there are may be significant fees that aren’t spelled out. Some lenders may even try to sell you on a different type of loan that could lead you into years of financial challenges.

1. What Loan Is Best For Me?

Any good, reputable broker is going to want to know more about you before they start loaning you large sums of money. You wouldn’t expect a medical diagnosis without any testing, your mortgage should be no different.

2. What Is The Interest Rate AND The Annual Percentage Rate?

Many brokers will calculate the APR slightly differently, and there is no APR for adjustable-rate loans. Be sure you have all info needed about your loan.

3. What Size Down Payment Do You Need?

Most sources will recommend about 20%, but that is not always needed. If you have good credit, you may be able to get a loan with less than 5% down. Lenders tend to increase closing costs and monthly payments with lower down payments.

4. Are There Discount Pints Or Origination Fees?

Discount points are tax-deductible, but each cost 1% of the total loan amount. Some lenders also charge origination fees for processing your loan application.

5. What Are The Total Costs?

Ask about the total costs. From the broker fees to any other fees that may be charged by a third-party. This can be appraisals, credit pulls, inspections, escrow, and more. There should be a legally required copy of the Loan Estimate that is given to you, which will include this information.

6. Are Fixed-Rate Loans Available?

Interest rates change daily depending on the Fed. This means that if you can get a loan with the interest rate locked in, it could mean saving thousands over other loan terms. Ask about fees though, some lenders charge for fixed-rates.

7. Are There Prepayment Penalties?

In some states, these penalties are not even permitted, therefore it’s very important to ask. Some penalties force the buyer to pay additional interest if you pay off early. Ask how long the financing offer was on the table.

8. Do You Do In-House Approvals?

Most loans need an underwriter’s approval, which can be dependant on conditions. If your lender does its own underwriting, that means your loan may be processed quicker. VA and FHA loans are known for taking longer.

9. How Long Is Needed To Fund The Loan?

In many cases, the time to fund a loan is around 40-45 days. You will have a closing date, so things will need to be coordinated. Inquire about the usual turnaround time, and if there is anything that can delay closing.

10. Are There Any Guarantees For On-Time Closings?

Closing can be stressful, and many contracts will include a date to close escrow by. This is usually subject to the ability of the lender to close on-time.

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Career & Education Education

Continuing Education and Online Learning

education and online learning tips

Choosing to continue your education is a big next step. The learning goals increase and you’ll need to dedicate more time to perfecting your craft and developing your education. Continuing your education may also mean you need to stop working full-time to dedicate the amount of time you need to your studies.

With the current pandemic, online learning has increased exponentially. While this can be difficult for many who connect around and in school, for those who want to continue with their education, online learning provides a whole new opportunity to finish school from the comfort of your own home.

We’ll be talking about some quick hints and tips on how to continue your education through online learning! You’ll find yourself at the top of the class without having to leave your home or quit your job!

Education Opens Doors

Practical experience will take you a long way but spending time in the classroom gives you a step up in an increased education-focused world. Continuing education classes are a great way for anyone from any background to take part in this step up for the world and economy.

Continuing education classes are specifically geared to adults within the community and are designed by school boards, colleges, and universities. The topics range across everything from art history to computer programming. There are even programs that end with a certificate so you can show you’ve passed the course.

Those who already have a degree may choose to continue their education as well to hone their skills and keep learning so that they can teach or train others. Many employers allow for people to take part in these classes but it can still put a strain on your schedule if you have to leave or commute to continuing education classes throughout the week.

Online Learning Takes Center Stage

This is where online learning comes in! Classes that were previously only offered on a strict meeting schedule are now up in different forms online. You can enroll through your local school or university or check out classes offered by Ivy League schools through other websites.

This opens up the topics that are available to an even wider range! You can learn French from teachers in Paris, take cooking classes with world-renowned chefs, or connect with a teacher in your community to become a better educator yourself. No matter what you want to learn, there’s an online class for that.

While online learning has opened doors for many, it doesn’t offer quite the connection that in-person classes do. Keep this in mind when you are looking for a way to get connected to the larger learning community. Classes offered through online learning often have very flexible schedules so you can do your classwork when you’re home after work or even when your kids go to take a nap in the afternoon.

Takeaway

Choosing to continue your education is a great first step to further success! But dealing with commute times and strict class schedules can make it hard to commit. Online learning allows for flexible schedules and a new, wider range of class availability. Leap, enroll today!

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Financial Real Estate

Selling Your Home? How Not To Lose Money

selling your home

Selling your home can be a challenge when you don’t know what it’s worth, or how to get the best price for it. We have a few great tips on how to maximize your profit potential when selling.

It Starts With An Experienced Agent For Selling Your Home

Working with an agent that has significant experience in selling homes in your area. You are going to want someone who is as invested in getting every dime of value out of your home as you are.

Occasionally sellers will try to save money by using an agent with lower commissions, but you are going to get what you pay for, as the saying goes. If an agent who charges even a single percentage point more can bring you 5% more profit, you’re already up by 4%.

The Price Has To Be Right The First Time When Selling Your Home

Pricing the home right initially is a huge benefit. The home will lose value the longer it’s on the market without selling. Opening the listing at the right price will benefit you in a couple of ways. First, it will encourage a short time on the market. Second, overpricing can not only cost you time, it can cost you money, as people will know that it is overpriced, and will use that in negotiations. Leveraging a skilled agent can help you get the best price initially.

Make sure you have personally researched local listings and recent sales. Look for trends. Touring open houses can also give insight into what is on the market. Call your bank and asking for a beneficiary demand can also give you an idea of what the home is worth.

Preparation Is Key

This one might cost a little bit of money, but the value added to the potential sale should far exceed what you put into it. This is the stage where you spruce up the cosmetic appearance and curb appeal of your soon-to-be-former home.

Basic home repairs can count for a lot here, as can a fresh coat of paint in several key rooms. Also make sure you pay attention to your landscaping, maybe hire a crew for an afternoon to get it ready for the weekend showings. This can help first impressions be great.

Keep An Eye On The Fees

When you receive an offer from a potential buyer, the offer will list the fees the buyer expects the seller to pay. Sometimes, the buyer requests inspections or other closing concessions. These can all be negotiated, and if they request a percentage toward costs, you might consider raising the price to help offset that.

Be sure to negotiate, particularly on the fees. The same goes for a home warranty, if the buyer wants reports for inspections or pests, for example, make sure you cap the potential expense that may make you liable for. Also shoot for the end of the month for closing, so that you can save a little money in interest.6

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Financial Real Estate

How to Find the Right Real Estate Agent for You

selling your home

Regardless of whether you are buying or selling a home, it’s very possible you would reach out to a real estate agent for guidance and help through the process. How do you know how to find the right real estate agent for your needs?

With realtors, full-time, part-time, and even family friends and relatives in the business, how do you know who to choose, or even how to evaluate a potential agent? We’re going to take a look at some of the factors that you should consider.

1.   Use A Professional

This cannot be overstated. There are part-time agents and agents that essentially do real estate as a hobby, but not as a career or even a full time job. When you are buying a home, and especially when you are selling a home, you want a real estate agent that is experienced and has a track record of closed deals and satisfied clients. They will be acting as your professional negotiator, so industry success is crucial.

2.   Sellers Need Special Attention

If you are selling your home, you will need the attentive service of a full-time, professional real estate agent. Having someone stop by and throw a “for sale” sign in your yard doesn’t cut it anymore, and it definitely won’t result in a sale.

A seller is going to want a real estate agent that will be proactive in their search for potential buyers. Particularly valuable real estate agents will be thoroughly familiar with leveraging technology in their trade. This is of extreme importance since most people will be viewing your listing on an app or website.

This also means they will need to be able to provide good pictures, enticing descriptions, and provide the details that buyers are hungry for.

3.   The Right Agent For Buyers

The buyers of new homes also need a particular type of attention in their quest for the perfect home. They benefit heavily from a real estate agent that has a history of successful buys and closed deals. Many real estate agents only sell a few homes a year, so finding one that has made significantly more than that is an indicator of quality and expertise.

Average real estate agents will simply search the MLS, and go through the listings with the potential buyers, without devoting much effort or care to the overall results. A great agent will find great homes that are about to hit the market and may be able to get a potential buyer into a very advantageous place to make an offer.

4.   Know The Difference Between Realtors And Real Estate Agents

Remember that not all real estate agents are going to be realtors. A realtor is a trademark of an organization called the National Association of Realtors, which is a professional organization with a formal ethics code. There are similar ethical standards in place by federal and many state agencies, but the NAR is additional.

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Financial Real Estate

Real Estate Tips for a First-Time Home Seller

real estate tips for selling your home

While buying a home often revolves around emotions, and how the house “feels” as a home. Selling should be detached as much as possible from that emotional aspect so that it can maximize the profit potential of the seller. These tips will apply to anyone putting a home on the market for the first time, as well as anyone who may need a quick review of some best practices.

1.   Make Sure You Have An Accurate Price Listed

This is one of the areas where having an experienced and reputable agent can help you immensely. Particularly one that has already had success in your general neighborhood. Make sure that they will perform a comparative market analysis for you. This should help you set your price as high as possible while not deterring offers or needing to reduce your price.

2.   Staging Can Add Incredible Value

Get advice from your agent on prepping for the sale. Many homes can benefit greatly from being professionally staged prior to an open house. Most homes show better and get more positive results from having about half of the furniture removed before showings. Professional home staging can add significant leverage for appeal and selling power.

3.   Stay Flexible With Showings

You may have to have several showings, so if they are too much of an imposition, or if watching someone tour your home seems weird, consider just not being around for the first weekend your home is on the market. This will allow your agent to show your home at times that work best for the prospective buyers.

4.   Host An Open House For Potential Home Buyers

If you have had your home staged, you may get noticeable benefits from hosting an open house. Your agent will know if this will be a viable option for your home. Some homes may not be conducive due to traffic patterns in the area, or even the home layout.

If there is a reasonable expectation of a benefit from the open house, put signage nearby, preferably on the main road likely to draw in viewers from the traffic. Sometimes all someone needs to know your house is the one, is to walk through it.

5.   Get The Commission Details

Don’t hire an agent purely based on a cheap commission. Many times the agents who offer a reasonable standard commission should be seriously considered. Don’t expect a cheap agent to give your listing the full service and attention it deserves. Likewise, be sure that the agent you do go with has a proven track record of selling homes, and of the sellers being satisfied.

6.   Respond Quickly To Home Buyers

If you’re putting in serious effort to sell your home, make sure you put in serious effort to respond to offers. It’s not uncommon for purchase offers to expire relatively quickly. Even if they don’t, prospective buyers will not appreciate waiting for the acceptance of their offer, or possibly even more frustrating, a counteroffer. Responding the same day, or within 24 hours, is ideal.

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Financial Real Estate

Types of Contract Contingencies for Homebuyers

Contract Contingencies for Homebuyers

Buying a home for the first time or the 15th time requires a lot of detailed work. It can even be a bit nerve-wracking for everyone involved. To help protect homebuyers and sellers, contract contingencies have become a common-place way for anyone to work within the deal and get their money back.

What are Contract Contingencies?

Contingencies are built into contracts as a way for prospective homebuyers to cancel the contract without the penalties that were typically incurred. Homebuyers can also get back their earnest money deposits which help lower the risk for buyers when they’re looking to purchase.

Common Contingencies

Detailed contingencies vary from state to state as some take different views of different inspections. Whether it’s roof inspections or septic tanks, before you buy a home you’ll need to research which ones are specific to your state. There are a few common ones that are standard across state lines!

Appraisal

This is when the home is checked out and evaluated to determine what the purchase price will be. So what happens if a home is appraised at a much lower value than originally thought? Buyers may back out of a sale when the lender doesn’t want to approve the mortgage amount.

Home Inspection

Before buying a home, buyers are encouraged to have the home inspected. If the home has issues and the buyers request a repair, the seller must first receive a copy of the home inspection before making repairs. During this stage of the buying process, the buyers want to drop out due to difficulty to repair issues, the home inspection contingency allows them to do so.

Lead-based paint

In many homes built before 1978, lead-based paint was used all over the place. Buyers have ten days to inspect this paint. If it’s found they’re allowed to drop out of the deal through the lead-based contingency.

Wood Destroying Pest Inspection

Who doesn’t love some little neighbors already burrowing into the woodwork? If pests or dry rot is found, the contract will specifically stipulate who needs to deal with the issue. Additional costs may be incurred during this time causing the buyers to can drop out of the deal in general.

Roof Inspection

Your roof does a lot more than just keep the rain off your home! During home inspections, buyers can hire a roofing company to do a complete roof inspection. They may even call off the deal if there’s too much damage. Putting in a new roof or repairing something that’s severely damaged is costly and may not be worth the price.

Sewer Inspection

Sewers can be delicate contraptions and easily susceptible to tree roots or deterioration over time. During a sewer inspection, plumbing companies check out the pipes for damage so buyers can determine if it’s sound before going forward with the sale. Installing a new sewer system is very costly and to put one in right after buying may be too much for homebuyers.

Takeaway

Buying a home is a risky business. Getting all of your inspections done on a new home is one of the best ways to be sure you’re getting exactly what you want. Contingencies offer you an escape route in case the home doesn’t stand up to scrutiny. Take your time and get all of your inspections completed before signing the final papers!

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Career Career & Education

Want to Reinvent Your Career? Here’s How

reinvent your career in 2021

1.   Start Now

Are you still stuck at home, or maybe still on lockdown or stay-at-home orders? Well, there is no better time to start thinking of how you want to develop yourself with your career. You have plenty of time where the social gatherings will still be relatively restricted. So you can use some of that to position yourself to potentially jump at an opportunity and reinvent your career.

So, knock the dust off your resume, and make sure your LinkedIn profile is up to date (when have you logged into that thing yet this year?). Add any new job details, purge any old info, and be sure to update your accomplishments. Remember to keep it to about a single sheet for maximum effectiveness.

Take a look at LinkedIn, and find some people doing what you envision yourself doing, and browse their journey. See how they got there from where they started, how did they handle crucial steps. Even if you can’t find examples of those positions, particularly if you’re pivoting to something pandemic-influenced, you can still get value from it.

You’ll get ideas. You’ll see trends of how important, influential, or otherwise successful people describe and market themselves. This can lead to a lot of scrolling. However, if you see someone that is doing exactly what you want to do, don’t be afraid to reach out.

3.   Think Outside The Box

Step back and look at your personal, job, and educational experiences. How can those things benefit you in various roles and capacities either within or outside of, your current organization?

Many people don’t take this vital step in figuring out how they can add value. They only take into consideration their immediate day-to-day job. You may be able to find a version of your current job at higher value. For example, getting paid more for doing essentially the same work.

4.   Make A Plan For Your Career

Now that you’ve taken a look at people on similar paths, as well as taken an objective look at your own experience, you should try to map out your next steps. With bigger changes, this may be a multi-phase plan, while shifting from one industry to another doing the same work may only need a few steps.

5.   Profit From Your Pivot

With the huge shift in business operations from everything that does not require a presence in a “brick and mortar” building, there are a lot of new positions to fill. These are going to be positions that end up being created or staffed for the sole purpose of saving money or refining operations from remote working.

If you have an idea of how something can be done better now that business is largely virtual and remote, now is the time to pitch it! The old systems are out the window with the pandemic, and organizations (read: older generations that can benefit from your tech-savvy skills) are in need of help and ideas everywhere.

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Financial Real Estate

Selling Your Home? Here’s a Moving Timeline

selling your home moving timeline

Selling your home can be a very stressful time. From worrying that you’ll make enough money on the sale to concern about having to move in the midst of everything else that you have to deal with when selling your home. Generally speaking, the process of selling your home is not done quickly. Most people plan for months before even listing, and then from there you never know how long it could take.

Right Now

Whether you think you’ll be ready to move in 3 months or 6 months, you should have a list date planned, as it makes it easier to plan ahead and get your home ready to show potential buyers. Not only this, but it also simplifies the moving process when you finalize your plans on where you will be living next.

Two Months Prior to Listing Your Home

The market can fluctuate greatly, so it is a smart move to wait to decide on your list price until closer to when you will place your home on the market. Browse the local market; the comparable homes will help you set a price that isn’t so low you lose out on money but not so high that people are not interested.

Six Weeks Prior to Listing Your Home

If you do not already have a real estate agent in mind, this is the time to start getting recommendations from friends and family so you can interview a few candidates. You may get lucky and find someone great right away, but it could take you a few weeks to pick.

You should also get your home ready. A fresh coat of paint inside and outside and a few simple upgrades can make a big difference.

One Month Prior to Listing Your Home

This is a great time to start moving out. Renting a storage unit and eliminating unnecessary clutter, seasonal items, and things you have been storing in your home allows potential buyers to really see the home, helping them visualize their belongings and families in the space.

Two Weeks Prior to Listing Your Home

Contact the company that is handling your mortgage and get the payout information. You will need to know exactly how much you owe so you can price your home right. Also, you want to get any liens on your property taken care of.

If you have decided to use a real estate agent, this would be a great time to discuss staging so your home is ready to be listed.

One Week Prior to Listing

It’s almost time! This is the time where you or your agent will take pictures inside and outside of your home. First impressions matter and these photos will likely be the first thing potential buyers see about your house.

Listing Day and Beyond

Now that your home is on the market, your agent could call you anytime saying someone wants to view the house. It is best to keep your home as clean as possible so you don’t have to scramble at the last minute to get things ready to view.

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Financial Real Estate

How to Sell Your House Faster by Its Curb Appeal

sell your house curb appeal

It’s getting to the time of year when home sales absolutely explode. If you are getting ready to sell your house, you should know most of the main ways that you can squeeze all the extra value out of the inside of your home.

But what about the exterior? How can you boost your curb appeal and have those buyers ready to make an offer before they even hit the living room? We’ve got the top tips, take a look.

1.   Quality Signage In Front Of Your Home Is Important

It may seem like one of the more trivial things, but the real estate signage in front of your home is a direct reflection of how you and your listing agent regard your property. It should be clean and made from quality materials.

2.   Trim Your Trees And Shrubs

The foliage around your home should accent it, not define it or hide it. It doesn’t take an award-winning artist to trim some hedges and shrubs to make them look nice before going on the market. Bigger trees may need a professional trimmer to come do it safely. Attractive pruning is one of the things noticed immediately by those pulling up to your home. If there are any diseased trees or limbs, you may want a skilled arborist to address those.

3.   Pamper Your Lawn

Make sure you keep your lawn neatly mowed and precisely edged. If you don’t have the right equipment, don’t be afraid to call a local landscaper to come one afternoon before the listing goes live or before an open house. Depending on the time of year, a quick lawn feeding can green it up and really impress potential buyers.

4.   Add Some Color To Your Home

A few flats of flowers from the local nursery or home improvement center can be worth their weight in gold when placed strategically around visible gardens. A splash of the color outside can really help, particularly in areas where HOAs prevent many colors in exterior paint shades. Stick with simple flowers and bright colors, but don’t go overboard. Top it off with fresh mulch.

5.   Refresh Your Walkways In Front Of Your Home

This is often overlooked, but it can add incredible value to your potential sale price on your home. Having your driveway, walkways, and sidewalk professionally pressure washed can make them look nearly new. If you have a blacktop driveway, throw a coat of sealant on it so that it looks nice and crisp.

6.   Stage Your Deck

Really want to sell your house? Make your outdoor spaces look inviting. Clean furniture, pressure washed deck and patio area, and maybe a fresh coat of stain makes for a beautiful and welcoming outdoor relaxation area.

7.   Get Neighbors On Board

Selling your home for top dollar doesn’t stop at your wallet. Your neighbors benefit from higher property values when a home on the block sells for a good price. Let them know you’re selling, and ask (as nicely as possible) if they could match your efforts at making things beautiful for the potential buyers.

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Career & Education Debt Education Financial

How To Deal With Student Debt

student debt

It seemed like a good idea at the time, right? Getting a few student loans to make it simple to focus on college without having to worry about funding it with your already thin paycheck. But now you’re looking at graduation, or maybe you have already turned your tassel, and that loan balance is weighing heavy on your mind. It certainly can be a daunting situation, but it doesn’t have to be completely overwhelming.

The first thing you need is a plan, which is probably what brought you here. You’re intelligent, so you’re likely searching for some of the best ways to deal with what seems like a mountain of student debt. Don’t worry, we’ve got you. Here are some of the most effective ways to handle and pare down student debt:

1.   Keep The College Lifestyle

You just left what was in all likelihood one of the most frugal lifestyles that you have lived thus far. Why stop now? Many people learn to get by with so little in college, and when you leave school that can repay dividends.

While others are splurging on meal services and subscription boxes, you can still be eating on a tight budget and putting the extra money into your debt payments. Living like a pauper for a few years means you could be debt-free a lot sooner than many of your peers.

2.   Follow The Snowball

The snowball method of debt payment is a popular technique, and for good reason, it works well. First, you list all of your existing debts, from small to large. Every type of loan you have.

Maintain all minimum payments, and focus all additional liquidity on the smallest debt. When that one is done, move to the next smallest, and so on. Each time, gathering up the minimum payment from the previous debt and rolling it into the current one.

3.   Push Your Extras Right Into That Debt

This one’s simple. Did you get a bonus? Debt payment. Raise? Debt payments. Any other non-essential liquidity? DEBT. PAYMENTS.

4.   Sharpen A Side Hustle To Cut Your Debt Fast

If you can work up a profitable side hustle you can shrink your debt must faster than with your single income. Additionally, if you can create income streams from streaming, Patreon, or other paid content sites, you may be able to become debt-free incredibly fast, followed closely by being financially independent.

5.   Refinance Only If It Makes Financial Sense

This is something you should only consider if the interest rate variance makes the process truly worth it. Sometimes people are much too eager, and they run right to an unscrupulous lender, or even a lender who simply doesn’t care if it’s the right move for the consumer.

Make sure the result is going to be an improvement on what your loan terms and payments are currently. The last thing you want to do is refinance, only to find out your payment is now much higher than before and you cannot meet it.