The Latest From Greg W. Anderson, Fort Collins, Colorado Financial Advisor
By Greg Anderson
Buying a new home is an enormous undertaking, and it's important to get your finances in shape before you begin. Balanced Financial Incorporated invites you to follow these tips for managing your money while preparing for your future.
Know What Lenders Look For
When you apply for a home loan, all lenders look at essentially the same things: your credit score, proof of income, and debt-to-income ratio. These will be the things that determine your ability to get a loan and your loan rate should you get approved.
According to Equifax, your credit score is drawn from a number of factors, including debt, payment history, length of credit history, and available credit. You can get your full credit report for free using an online service. Your proof of income demonstrates your ability to pay your loan. Creditors want two years of work history, though some lenders will accept fewer.
Your debt-to-income ratio is calculated by using your income and your monthly debts. You can easily calculate your DTI using an online calculator. Lenders look for a DTI of 43 percent or less, so take that into consideration when assessing how to pay down debts.
Pay Down Debt
Once you know your numbers, decide which debts need to be paid down first. If one is putting your DTI over an acceptable number, focus on eliminating it as soon as possible. Otherwise, consider using the snowball method, an efficient way of paying off what you owe.
With the snowball method, you pay off your debts one at a time. While paying the minimum payments on your larger accounts, you focus first on paying off your lowest debt entirely. Then, once you've paid it off, you combine the money you would have paid on it toward the next smallest debt and so on until you've snowballed your way into debt-free living.
Know Your Expenses
Buying a home comes with certain expenses, the most notable being your down payment and closing costs. Down payments depend on the cost of your home and the down payment required for your loan. It's important to research homes in the area and mortgage down payment requirements to get an idea of how much you should save. For example, in Fort Collins, homes are selling for approximately $478,000.
Many loans will let you pay less than 20 percent down on your home, with some such as USDA requiring no down payment at all. You may have to pay private mortgage insurance if you choose to pay a smaller down payment upfront.
While closing costs are a little more difficult to narrow down, you can use an online calculator to get an idea of what your closing costs might be.
Don't Neglect Your Future
Although your priority right now is purchasing your home, it's important not to achieve it at the expense of your future ability to live a full and comfortable life. Borrowing from your retirement for a down payment, for instance, is a risky move. Engage a professional, such as the experienced team at Balanced Financial Incorporated, to help you manage your money so you don't make a misstep that could cost you your future comfort.
Prepare for your home purchase by knowing where you stand and working to improve it intelligently and quickly. With the right moves, you can land the loan you want at the rate you desire without sacrificing your retirement funds.
Balanced Financial Incorporated strives to provide families and businesses with innovative financial solutions. Call us today at (970) 204-1500 to learn more about how we can help you.
In December 2017, the U.S. Securities and Exchange Commission (SEC) filed criminal charges against California’s Woodbridge Group of Companies, LLC, along with the Group’s former owner Robert Shapiro. 281 subsidiary companies were also named in the criminal filing. The SEC charges filed against Woodbridge and Shapiro were centered on operating a complex investment scheme where nearly 8500 investors to the group of companies lost their savings. In all, more than 2000 investors lost all of their retirement savings. According to the SEC criminal filing, the fraudulent Woodbridge scheme netted the perpetrators just over $1 billion.
Former owner and CEO Robert Shapiro was sentenced to 25 years in prison and ordered to pay back $125 million in restitution and fines. He is currently serving his sentence. Woodbridge was ordered to pay $825 million. The group of luxury real estate companies filed bankruptcy as an attempt to shield assets. Nevertheless, the distribution of funds to bilked investors is a good first step in settling the case.
Distributions in 2020 and 2021Greg W. Anderson, a prominent retirement planning expert and the founder of Balanced Financial, Inc., made it his mission to inform the public about the Woodbridge scandal. Since the initial court filing, Woodbridge has been ordered to reimburse investors.
The first distribution of 2021 is set to take place at the end of January. The Woodbridge Liquidation Trust declared an aggregate cash distribution of $50,000,000, which is equal to $4.28 per Class A Interest. Holders of record of these Interests will receive distributions. Four similar distributions took place in 2020; so far, these distributions equal about 30% of the total principal lost by investors.
Several law firms and attorneys who helped create the initial scheme are being sued by the bankruptcy trustee on behalf of investors. In addition, a class-action lawsuit against Comerica Bank was filed. In that lawsuit, plaintiffs are seeking $40 million in damages, alleging that the bank aided and abetted Shapiro and other Woodbridge stakeholders in the investment scam. Greg Anderson will continue to share information and updates on the lawsuits as well as the distributions on his personal website. As the author of “Woodbridge and the Lessons Learned”, he has been an invaluable source of information for people harmed by the scheme.
There are many excuses for not encountering this job. Some believe that when they reach those gold years, there will not suffice entrusted to plan for. Others believe their beneficiaries can work out the information.
That's according to the 2018 State of Women-Owned Companies record, which discovers that female entrepreneurship has boosted by a top 3,000 percent considering that 1972. And also, between 2017 and 2018, women started approximately 1,821 new endeavors per day.
Financial preparation involves creating techniques to help you in handling your economic events in addition to please your life purposes-- as well as additionally, the primary step is to see if you have the simplicity of ease of access to the maximum suggestions.
If you obtained your industrial functions by put cash away in the banks, you would certainly not call for an alternative strategy. Sadly, life is a little bit much more complicated-- it's checking to understand the complexities of monetary investment, tax obligation obligations, as well as likewise additionally ever-changing plans along with besides guidelines, so you require well-informed help.
Yet a massive quantity of people stands up against asking concerning if our economic future weren't equally as vital as our health and wellness and wellness or our youngsters' education and learning along with called well as understanding. We generally identify to manage our financial parties ourselves or leave it to a loved one or chum, which is a bit like asking your butcher for recommendations on veggies.
Great deals of people make the error of thinking that monetary pointers are just for the plentiful. However, financial support can aid individuals by any means degrees of financial health by providing approaches for raising along within a similar way, increasing your full selection. It can assist you to do prep work for aspects as straightforward as a retreat, to something as made complex as getting a house or commercial home or retiring gladly.
Why should I use a monetary organizer?
FPA research1 has found that Australians that speak to a financial organizer truly really feel far better, a bargain a whole lot more desirable worrying their financial health and wellness and wellness as well as health, and are a great deal far more positive regarding the future than those that do not.
That is an outcome of the fact that a financial coordinator will undoubtedly assist you to stay on the best track of both your momentary as well as, similarly, resistant goals. The faster you start preparing, the quicker you can establish the life you desire in addition to furthermore handle far better comfort.
Financial prep work is an expert task. In addition to you need to establish that you're obtaining assistance from an experienced financial coordinator that is appropriately qualified as well as besides recognized.
A monetary coordinator has technological performance in establishing a perfect strategy for you. They will identify among one of the most current lawful changes and guarantee you truly really feel economically informed and details concerning your future.
via YouTube https://youtu.be/M9GRc7vOxKM - Greg W. Anderson Finance Strategies
via YouTube https://youtu.be/gNTje4_oCm0 - Greg W. Anderson Finance Strategies
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