Guest Post - Home Mortgage Approval: 8 Tips for First-Time Home Buyers

Buying your first home is probably one of the most important purchases that you have to make. Not to mention that it can be both an exciting and stressful experience. 

You would be surprised to know as well that a lot of people buy homes on impulse. Hence, a home that is supposed to give them peace and happiness ends up as a source of financial struggle and stress. 

So, if you have been shopping around for homes and mortgages, make sure that you follow these tips:

1. Know how much you can afford

Keep in mind that the monthly payments that you have to make in your mortgage are only part of your overall monthly expenses.

You also have to pay for homeowner's insurance, property taxes, and repair and maintenance costs. 

Create a budget and then pick a mortgage payment that you know you can afford. Ideally, financial experts suggest that you should not spend more than 30 percent of your total income on your housing. 

So, if you are bringing home $5,000 every month, your mortgage should not exceed more than $1,500 each month. 

No matter what sort of calculation you use, the most important thing here is not to overburden yourself. 

2. Check your credit score and history

Before considering you for a mortgage, the first thing that lenders will do is to pull out your credit report and check your credit score. 

Ensure that you check your credit card in advance to make sure that there are no errors. Keep in mind that you're entitled to at least one credit report every year from one of the major credit bureaus. 

Having a better credit score means that you could also have lower mortgage rates. If you're concerned about your credit score, then you could always find proactive ways how to improve it before you could go looking for houses. 

Paying your bills in time and making sure your credit card balances are kept low will always help. 

3. Save for the down payment

Requirements on how you can get a mortgage loan changes constantly. So, if you're thinking of applying for a home loan, then you have to be prepared. 

Going to a lender's office without any cash at hand is one of the fastest ways for your home application to be rejected. Most of these mortgage lenders are cautious to the point that they would even require a downpayment. 

4. Be financially stable

Lenders will tend to avoid working with risky clients, so it is always best that you place your best foot forward. 

Be financially stable. Have a steady cash flow so that you will avoid acquiring new debt. Staying with your employer while you are in the process of buying a property is crucial.

Taking on a low-paying job, or quitting your job to become self-employed is usually one of the major red-flags for lenders. This might cause your application to be delayed or rejected altogether. 

5. Manage current debts

Debts are not necessarily bad, especially if you could pay for it.

But in your mortgage application process, any kind of liability on your part could be an additional problem in getting approved. So, it is best that you lower your debt as much as you can.

Ideally, your debt-to-income ratio should not be more than 36%. Meaning, your debt repayments should not exceed 36% of your monthly income. 

6. Prepare your documents

Now, if you're ready to apply for your first mortgage, you have to provide lenders with copies of your most recent paycheck stubs, bank account statements, and tax returns. 

Having these documents will help you prepare in advance and will make the entire process a lot easier. 

7. Get pre-approved for your loan

Getting your loan pre-approved allows you to know how much you can purchase before you officially start house-hunting. This lets real estate agents and sellers know that you're a serious buyer and you already have your finances in order. 

All of these can be advantageous for your part when it comes to making an offer. Without it, especially in a highly competitive housing market, you might not have the chance to be taken seriously. 

It also speeds up the closing process because most of your financial information is already there in the lender's system. 

8. Consider hiring a mortgage broker

A well-qualified mortgage broker can help you identify the kinds of mortgage that will suit your needs and budget. Thus, you can acquire your first home without having to bend backward just to pay for the monthly amortization. 

In relation to this, the people at ServicePros Mortgage Brokers Auckland advise to not go with the first offer that you will come across. Hence, it is best to compare offers first. 

The whole process can be tiring, but for most people, the stresses that come with home-buying are outweighed by the pleasures of owning a home. Just make sure that you do a little advance planning in your part, and saving as well, as it makes the whole process a lot easier.

Author Bio: Meredith Davis, is a freelance writer.

Guest Post - What’s Your Money Love Language?

We all give and receive love differently. With Valentine’s Day right around the corner, it’s nice to revisit, or learn, how you and those close to you like to receive love, and even see what that may mean when spending money. 

The majority of people now know about the famous relationship guru, Gary Chapman, who discovered the five major love languages and how to navigate them. Oddly enough, these love languages have something to say about you and your loved ones relationship with money. 

The five categories in which the majority of people prefer to express and receive love are: 

1. Acts of Service: Any action carried out to help someone else. 

2. Quality Time: Setting aside time to spend together without any interruptions or distractions. 

3. Physical Touch: Being physically close to reinforce your connection to one another.

4. Words of Affirmation: Verbal or written statements that ensure your love and appreciation for one another.

5. Receiving Gifts: Tangible and thoughtful proof of your love and support. 

Whether you are spending Valentine’s Day with your closest friends, or your life partner in crime, I challenge you to discover your loved language (if you haven’t already). Follow Mint’s flowchart to see how love languages may be affecting your finances.

4 Steps to Decluttering Your Finances

With the end of the year coming up, you may be considering making some New Year's resolutions. One of the most common goals people make is to save more money. But before you make that a resolution, you should take some time to declutter your finances.

Review Your Budget 

The first step to cleaning up your finances should be to review your monthly budget. You want to make sure it is up to date and not missing any items like subscription services or additional income. Check to see if any areas have spending leaks. Are you spending a lot of money on take-out food or clothing? This is the perfect time to figure out where you can cut back! You can also start using an online tool, like Schwab MoneyWise, to track your monthly budget. It will alert you on your spending habits and encourage you to save a few more dollars each month.

Organize Your Bank Accounts 

Now that you have your budget squared away, it's time to look at your account balances. If you have your money spread out over many banks, consider consolidating into one. This can simplify the organization of your finances by seeing all of your accounts under one roof. You can even shop around and look for a better banking option that offers perks like no hidden fees or early paycheck deposits. That way you can spend less money on service fees and more money on holiday shopping.

At the same time, take a look at your savings accounts and figure out how you want to organize them. Think about establishing a separate emergency fund and sinking fund. If you're going to start saving up for a new TV or computer, you can stash away money into the sinking fund instead of stealing from the emergency fund. This ensures that when you do have an actual emergency, you will have enough saved up to cover it. 

Switch to Paperless Billing Statements 

Another fantastic way to cut down on clutter is to enroll in paperless billing statements. Not only is this eco-friendly, but it also helps you cut down on the amount of paper floating around your home, and it allows you to keep your statements organized digitally. Plus, some providers offer a discount for choosing paperless billing. While you're there, set up automatic payments too, so that you don't forget to pay any bills. 

Cash in on Credit Card Rewards 

If you have any credit cards that reward you with gift cards, travel miles, or discounts, cash them in now! The holiday season is the perfect time to convert those rewards into gifts for friends and family. Plus, you can use the leftover balances to pay off your credit card bill. The less money you spend on those things, the more money you can save for your New Year's resolution! 

Guest Post - Disorganized and Debt

You're disorganized and in debt. That puts you in good company.

You just tossed that Final Notice letter on the table where it landed with its fellow notices, late payment charges, and unpaid bills. You sidestep the overturned chair in the kitchen and make your way to the couch where you slide a pile of laundry aside to make room to sit down. You’re in a mountain of clutter and debt. What happened to you?

The answer is nothing. At least, not to you specifically. Believe it or not, the same thing that brought you here affects thousands and thousands of others.

Every day we’re bombarded with suggestive and sub-suggestive marketing, playing on every emotion with only one goal in mind - to separate you from your money. Seriously, Perrier is using sex to sell seltzer. Big data is unearthing ways to increase customer responsiveness, to price products more optimally, and even to up consumer loyalty. The point is, we live in an environment where coming home with something new, however niche, is looked upon as “helping the economy” or shrugged off with a blasé “YOLO.” It’s part of the territory now.

To wit, American children make up 3.1% of the world’s population under 18 and yet account for an astonishing 40% of global toy ownership. Indeed, why go to the grocery store when you can go to Costco and get so much more, even if it means purchasing a freezer chest just to store it all? You can buy the freezer on Amazon, and with only a few more clicks you can pick up more items that only increase in absurdity: dedicated quesadilla makers, pens just for her, and banana slicers.

The rampant consumerism is taking a toll, and it’s doing so in ways that no pre-1990s American would ever conceive possible. James Wallman, author of Stuffocation, puts it bluntly: clutter kills. Wallman’s book discusses a study that found that women who are asked about the uncontrollable clutter in their homes begin to exhibit the same levels of the stress hormone cortisol as those who have experienced post traumatic stress disorder. That’s a sobering discovery. Basically, it’s quantification of just how damaging to our very being it is to over accumulate stuff to the point of saturation. If you’ve gotten there, you have increased risk of everything from fatigue, to depression, to death. No amount of sexual innuendo is worth taking that on.

If you’re freaking out at this point, pause and take a breath. There are two things to consider here. First, one more click on Amazon won’t be the difference between a clutter-free life and a breakdown. Second, there’s a difference between you wanting something, and your brain revving its instant-gratification engine. That second one is a powerful piece of knowledge to have. It means that given time and dedication, you’ll be able to rewire your brain to look for gratification elsewhere.

Psychology Today discusses the Four Steps program to literally change your brain. 

Relabel: Be aware of your mindset when the urge to buy hits. Label the experience with whatever word you want: impulse, craving, desire, need. Whatever you use, what it is not is you consciously saying to yourself that it’s time to purchase something you objectively need. In other words, identify if you are actually looking for something necessary, or just something to buy and then explicitly recognize each.

Reframe: Understand that the need is coming from your brain, not something you’re consciously doing. Here you can change your own perception of the importance of the urge.

Refocus: Refocusing mean redirecting your attention to something more constructive. Take a walk, work on something important, or call a friend. This will distract you until the urge passes.

Revalue: If the temptation continues, simply acknowledge it and move on. While your brain can whine about something it wants, you are ultimately in control and you are the one who decides whether or not to act. The urge has far less power to act than you do.

Ben Oatis is a freelance writer based in Connecticut with over 10 years of experience as a technical writer for global tech companies. In addition to writing about technology, he also covers politics, lifestyle, and health and nutrition. He can be reached at boatiswrites@gmail.com.