Finance Archive

Getting a VA Loan: What Do I Need to Do?

A loan has been approvedHaving a car is great, but owning your own home is a sound investment. So you’ve got your eyes on one of these, but the only way you can afford one is to get a loan. If you’re a veteran, a VA Loan in Missouri can help you get the car or house you’ve always wanted to have.

Who Can Apply?

If you’re a member of the US military, a retired veteran, a military reserve or a National Guard member, you are eligible to apply. If you are a spouse of any of those mentioned who died doing their duty, you are also eligible to apply for a VA Loan.

What Do You Need to Prepare?

There are several things you can do to prepare for a VA Loan application. First, check your credit report. Make sure that your credit record is clean and that you have a credible status as a borrower. This affects how much you could borrow for your VA loan.
You should also prepare your Certificate of Eligibility (COE). Contact the Department of Veteran’s Affairs for your Certificate. You could also ask lenders such as Top Flite Financial, Inc. to assist you in getting your COE.
There are other documents you need to prepare, such as your recent tax returns, paycheck slips or stubs, and other employment documents.

What Are the Advantages of a VA Loan?

A VA Loan usually does not require a down payment. If you pay down payment, you only need to pay only 3.5 % of the total loan.
A VA Loan also offers lower than the average interest rates, so it is easier for many borrowers.
For those who want to own a car or a house but need to take out a loan, you should consider getting a VA Loan if you are a member of the military or the armed forces.

Close Your Mortgage Before Your Rate Lock Ends

Mortgage ratesMortgage rates fluctuate. The most recent movement sees a dip in interest rates on 30-year mortgages, the most common type of loan, at its lowest since the previous year. The best way to make sure you get the same interest rate that the bank quoted is to secure a mortgage rate lock.

A rate lock, according to migonline.com, gives you mortgage at the agreed-upon rate during the lock-in period. The lender adds that even when rates rise before closing, you will still get the lower interest rate.

Lock Period

Rate locks can last anywhere between seven days to 90 days. You can choose how long your rate lock will be. You can take into account any delays that may occur along the way. Sometimes, delays can even push your mortgage closing date beyond the rate lock period. In such times, you can ask for a rate lock extension that can cost you a fee of several hundred dollars.

Accomplish All Paperwork

You can make sure that you close your mortgage before any lock extension occurs, saving you from the hefty fee. You can fill out your mortgage applications quickly and submit them promptly. You can also submit any other documents your lender asks for immediately. You can have an easier time closing your mortgage when you finish all the necessary paperwork.

Follow Up on Your Mortgage

In addition to finished paperwork, you can also check your loan progress with your lender regularly. When you actively handle your mortgage, you can easily respond to any needed tasks. You can also easily check any incorrect information on your mortgage, sale contract, or closing date.

Negotiate with Your Lender

When delays happen, however, because of the seller, you can negotiate with your lender about a rate lock extension without paying any fees. You then have to ensure that your sale contract will include a clause indicating the seller’s responsibility for paying your lock extension fee. In other cases of delays beyond your control, you can also negotiate with your lender.

A mortgage lock can help you manage payments and stay safe from rising rates. But the rate lock also keeps you from taking advantage of low rates when they fall. There’s also the rate lock extension fee to think about. Considering the advantages and drawbacks of this feature, you’ll want to seek professional advice before committing to a loan agreement. This way, you don’t worry about rushing to close your mortgage to avoid paying an extension fee.

 

US Millennials Avoid the Stock Market but Invest Heavily in Real Estate

Man and woman looking at a tablet smilingMuch has been said about the financial behaviors of millennials – that they value experiential spending over more practical consumption, and they should be buying houses instead of avocado toast – but it’s something that only they can understand. As a witness to the Great Recession, millennials fear to take financial risks and spend money the way they know how.

However, millennials found hope in the Great Recession recovery of the real estate industry. The generation is ready to invest in rental and single-family properties, which is no small commitment, Americashousingalliance.com says. And there are reasons behind the skeptic generation’s trust in the real estate industry.

Great Recession Took Their Jobs

Many millennials graduated during the Great Recession, which brought them difficulties in job hunting. With the burden of student loan on their shoulders, millennials formed a rather negative impression of the stock market, one that prompted them not to get involved in that industry.

On the other hand, the Great Recession saw the burst of the housing bubble, but the industry recovered faster than the stock market. Seeing this upturn gained the trust of millennials, and 85% of the generation agrees that investing in real estate is a good thing.

Debunking the Avocado Toast Myth

A viral commentary on millennials’ financial decisions likened the generation’s spending behaviors to the consumption of avocado toast, and while it rendered laughs, the avocado toast debacle proved to be nothing more than a meme.

Despite buying and investing in homes later than their baby boomer parents, reports show that millennials arethe most active generation in the housing industry today, both as investors and buyers, with nearly 40% being under 36 years old.

This preference for investing in real estate than in the stock market can be attributed to the visual nature of the generation. Millennials are image-oriented – they like to know what’s happening and they want to see results. Stocks, being an intangible asset, are at a disadvantage in this aspect since they are hard to appraise and evaluate.

What the housing industry needs is to welcome the fast-growing number of millennials as their new investors. The skeptic generation trusts real estate as a good investment because of the security and tangible results the industry offers.

Understanding the Advantages of Asset-Based Loans

Businessman and BusinesswomanDue to a recent economic crisis, many companies are finding it harder to get approved for conventional loans because of stricter policies implemented by banks and lending companies. Many business owners have decided to use asset-based loans to meet the financial needs of their operations.

Tabbank.com shares more information about this financing option.

Asset-Based Lending In a Nutshell

An asset-based loan (ABL) is a type of secured loan for businesses where entrepreneurs use their assets as collateral in order to get the money they need. These assets include equipment, inventory, accounts receivable, and other balance sheet assets. Any business, small or large, can easily qualify for an asset-based loan as long as it has strong assets with stable balance sheets.

Benefits of ABL

Obtaining ABLs can be faster and easier than getting a traditional loan because it requires fewer documents, meaning there is less to process. As long as you meet all the criteria set by the lender, you are good to go. This is also a good option for companies that need an immediate source of cash flow due to financial struggles or when they are going through an expansion.

With an Asset-Based Loan, you are just using the value of your assets as collateral for a cash advance, which will be repaid with future invoice or sales payments. This way, your company stays debt-free.

Costs of ABL

Not all lending institutions charge the same fee. Some will charge higher than others while some will base it on how much the company invoice per month is. The fees associated with this financing option vary depending on the collateral value and the total loan amount. In most cases, the total loan cost is based on the annual percentage rate (APR) that can range from 7% to 17%.

ABLs generally have a higher interest rate than traditional loans, but their accessibility is more than enough to outweigh the higher costs, especially for companies that cannot qualify for conventional loans. Furthermore, not all lenders charge the same fees, so it’s best to shop around before settling for one.

The Changing Ways of Cost-effectively Honoring the Dead

mortician carrying the urn to a bed of white rosesToday, funerals are more about honoring the dead than following religious traditions. And there is no problem with that. As you honor your late loved one’s wishes, you are preparing them for the afterlife–whether that’s Heaven in your religion or simply them laying on the ground waiting for natural processes to set it.

What are the changes that have made burials in Ogden more memorable but less costly, you ask? Here are some:

Cremation

Cremation is on the rise, with more dead bodies being cremated than buried traditionally in cemeteries as of recent. More people seem to prefer cremation because it gives them the ashes or cremains of their loved ones, which they can store in an urn at home, scatter in the deceased’s chosen spot, or keep in a crematorium. This eliminates costs such as casket purchase and digging a hole in the ground. There is also no need to prepare the body for viewing, removing costs associated with embalming and grooming.

Donating to Science

For those who would like their death to help future generations understand the human body better, donating to science is a great opportunity. Anyone can make arrangements for this in advance so that when they reach their end, their family members already know what to do. If you donate a body to a laboratory or educational facility, they often take care of the transportation of the body and its eventual cremation. Some facilities return the ashes to the loved ones, while others plant a tree in honor of the deceased donor.

Pre-paying

This is more than just a way to pay for the same amount in advance. Through pre-planning a funeral, you’re using money that would otherwise be used for taxes and paying for a senior home, where most retired individuals go to get the care and assistance they need. Rather than waiting for your money to be used up paying for assisted living, use it to buffer the costs of a funeral.

Being alive is expensive, but so is dying. Prepare for the costs so your family can focus on grieving.

What Makes Phoenix a Thriving City

a happy family sitting outside their homePhoenix is one active city, with its residents all contributing to Arizona’s overall growth. In Phoenix, you will not have to worry about staying out late or needing a quick burger fix in the middle of the night. You will not have to worry about unemployment either.

Here are some of the factors that make Phoenix a good place to settle down:

Competitive mortgage rates

Phoenix is home to plenty of mortgage lenders, one of which is the Primary Residential Mortgage, Inc., that collaborate with real estate agents to make the loan application easier. You can easily find a mortgage rate you will be comfortable to make payments for, and qualifying for it should not be hard if you keep your credit score in check. Even for those who have a bad credit score, there are mortgage options available.

An active crime-fighting community

There is a possibility of crime anywhere. It is impossible to find a place with no history of crimes at all. What’s good about Phoenix is that the residents genuinely care for each other, as evident in the police crime watch that they have in place. What started as a small group in WhatsApp is now the Phoenix Crime Community Assist, which helps residents deal with emergency situations. Not a lot of places can proudly say that they have such level of care for the safety of their residents.

Great work opportunities

Phoenix used to be a call center hub, but it has expanded beyond that. It is now a tech hub, where IT corporations plant their roots and thrive. This means great opportunities for you, especially if you are working in the technology sector. Moving to Phoenix would not seem like a tough choice if you have a job waiting for you.

Whether you are seeking to live independently or start your own family, there is no question Phoenix is a good place for you.