Finance

Home Loan Mistakes to Avoid

money on the table and a house in the backgroundApplying for a home loan comes hand in hand with shopping for a new property, unless, of course, you are one of the lucky 1% of the population who can afford and pay with straight cold cash. Realistically, having a home loan, let alone applying for one, is a process that most people can easily go through if they follow the right process.

Knowing the mistakes to avoid when applying for a home loan in Portland is important, especially if this is your first time. Primary Residential Mortgage, Inc. cites some of them.

Not shopping for the best loan

As a first-time home loan applicant, you must shop around for the best deal on the market. Take your time and educate yourself about the trend that you need to know. That way, it will be easier to choose something that you won’t regret in the long run.

Having a bad credit

Having a bad credit before you apply for a home loan is almost always the reason people get their applications rejected. Make sure your credit score is admirable, if not reasonable enough, to impress the lender.

Not being able to budget properly

Have a weekly or monthly budget and stick with it for a long time. Doing so can help you manage your monthly expenses, including the mortgage fees and other initial payments that you would need to make upon application.

Not locking your mortgage rate

Mortgage rates fluctuate depending on the current market standing. Therefore, it’s a must to lock down your rates, lest you want to be surprised with an inflated rate in a few years’ time.

Mistakes are bound to happen, especially for first-time mortgage applicants. However, avoiding mistakes is always possible if you know what you should do.

May 24, 2018 at 11:58 amFinance

A Guide to the Various Types of Auto Loans

Approved Car Loan ApplicationAbout 85% of new car purchases are financed through loans. Approximately half of the people who borrow money to buy a car get their loans from car dealerships while the rest get their financing from credit unions and banks.

There is an 80% chance that you will be borrowing cash for you to get the keys to your new ride. As such, it pays to understand the various types of loans as well as the best auto loan rate in Utah. That said, this article focuses on your auto loan options.

Unsecured vs. secured auto loans

With a secured loan, the car acts as the collateral to the loan. That means the financing company has the security interest indicated in vehicle title. So if you default payment, the financing institution will seize the vehicle.

Other financing institutions offer unsecured loans. This means the lending institution has no security control over the vehicle. Consequently, these loans are only offered to people with substantial assets and income, as well as those with high credit scores. Additionally, due to their high-risk nature, these loans come at a significantly high-interest rate in comparison to the secured loan.

Simple interest vs. pre-computed interest

Pre-computed interest is calculated based on the total amount of the interest rate over the period of the loan. The total figure is then divided by the number of months you will be paying the loan. That means your monthly payments will include the specific amount of interest regardless of the remaining loan balance.

Simple interest loan, on the other hand, calculates the interest rate based on the outstanding loan balance. That means, if you took a car loan for $10,000 and you now have an outstanding amount of $5,000, the interest will be calculated based on the $5,000 and not $10,000.

Regardless of the auto loan that you want, shopping around is worth your while. Picking a loan is not just another paperwork procedure in car purchasing process. The loan is a purchase by itself and is likely to cost you thousands of dollars.

April 7, 2018 at 1:00 amFinance

How to Qualify for a Jumbo Loan?

Man computing using a calculatorA jumbo loan is the kind of mortgage you need to buy a property with a jumbo price. It chiefly refers to the size of the loan, but its classification depends on what’s considered the “conforming loan” in the region. In Utah, the difference jumbo and FHA loan limits can be about $150,000.

Unlike conforming loans, jumbo loans are not guaranteed by the government. In other words, the lenders that issue them a big risk appetite. Considering they don’t follow the underwriting guidelines of Fannie Mae and Freddie Mac, qualifying for a jumbo mortgage is harder than usual. As only a few lenders offer jumbo loans, their interest rates are naturally higher.

If you’re planning to apply for this kind of mortgage in Salt Lake City, here’s what most lenders are looking for:

Extra-Large Down Payment

Jumbo loan lenders might be open to taking greater risks, but they’re not willing to provide 100% financing. In most cases, you’re expected to put down at least 20% of the total property’s price. On the bright side, you won’t have to pay for private mortgage insurance for years, which offers no personal benefit to you.

Low Debt-to-Income Ratio

Applying for this mortgage puts your income under closer scrutiny. Your prospective lender will go great lengths to make sure you have an unquestionable capacity to repay for it. Apart from providing evidence of your employment and earning potential, you’ll also need to provide plenty of other assets.

Excellent Credit Score

Of course, stellar credit standing is a prerequisite for jumbo loan approval. The lowest FICO score to qualify for it is 700. Obtain a copy of your credit report and identify any error in your file before speaking with a lender.

Most people don’t qualify for jumbo loans for good reasons. Securing a mortgage of such size is a privilege, which can be abused without stringent qualifications.

March 30, 2018 at 1:00 amFinance

Top Options for Financial and Retirement Planning

coins in a jar labeled retirementThere was a time when people could make do with their Social Security checks and any pension plan their company has when they retire. That time has passed.

Rising costs for basic needs make financial and retirement planning necessary. Among the top options for you are IRAs, Roth IRAs, and 401(k)s. Here are the pros and cons to help you decide.

IRAs

The IRA or Individual Retirement Account is a good option if you have some money to put away and you want to be in control. You can choose where to put it, such as a bank or brokerage firm. You can also put in cash, stocks, or bonds. The good thing about IRAs is you pay taxes on your investments when you are ready to use the money. You can also add IRA contributions to your tax deductions if you don’t have a 401(k).

The problem is that the IRS limits your yearly contribution to just $5,500 if you’re not yet 50 years old. The limit rises to $6,500 once you hit 50 years old. You also pay a penalty if you take money out of the IRA before the age of 59.

Roth IRAs

A Roth IRA is a good option if you are young, you have some extra money, and you expect your income to rise. This is because your taxes will probably be higher when you get older. Putting money aside now while you pay lower taxes means you’ll have more money in the account by the time you retire. They are like regular IRAs except that you pay taxes on your contributions.

However, you do not have to pay taxes when you use the money after retirement age. The good thing about a Roth IRA is you can withdraw money from the account at any time without penalty. The bad thing is you have the same limits as a regular IRA in terms of the amount you can contribute to an account.

401(k)s

A 401(k) is a retirement plan sponsored by your employer. They deduct your contributions from your pay automatically. You can contribute up to $18,500 a year ($24,500 if you are over 50) to an account. Whatever you contribute is exempt from taxes, although you do pay taxes when you withdraw the money. The employer may also choose to match your contributions, so this is free money.

The problem is you do not get to choose where to invest the money. The employer might also require that you stay with the company for a set number of years before they can get the employer contributions. The fees for managing a 401(k) plan can be high as well.

Choosing the right plan will depend on many factors. The top options are generally sound, but it will still depend on your situation. Consult with a financial expert to get some pieces of advice on financial and retirement planning.

March 22, 2018 at 9:30 amFinance

A Bright Future for Healthcare RCM Services

healthcare providersRevenue cycle management (RCM) makes the administration of medical institutions easier and efficient. As more people seek for better healthcare, hospitals and clinics have to adapt to meet such demand; hence the need for effective healthcare revenue cycle management service.

RCM services consist of many solutions, like medical insurance claims processing, medical billing, and medical coding, all of which require data accuracy and quality management. These services may come directly via a purchase of RCM software solutions or through outsourced services.

With expectations from the current universal healthcare debates, you can expect the industry to grow in the near future.

Positive growth outlook

According to the latest Future Market Insights report, services that facilitate revenue cycle management in the healthcare industry will see an influx of demand in the foreseeable future. This was apparent during the previous years as about half of earnings in the global healthcare RCM software market were attributed to services.

The same is true with other non-software related services. Although the RCM software market will see growth in 2017 to plateau as the market matures, the revenue shares of the industry’s software and services segments are optimistic with healthcare RCM services gaining more ground in terms of adoption.

More outsourced services, stable software demand

Outsourced services are growing faster than software services in the RCM industry. Although the software solutions segment is the bigger segment due to the ease of securing a solution, outsourced services offer some support that software may not readily provide.

Outsourced healthcare companies provide all-around healthcare and medical services. From pre-registration, appointment scheduling, medical billing, and to medical coding, these companies do all the work for a hospital or clinic needing outside support for their healthcare services administration.

RCM services in both software and outsourced forms aim to modernize the administration of healthcare services. They limit costs and improve productivity by reducing present write-offs, hastening the revenue generation cycle, and enhancing the patient-provider relationship.

March 17, 2018 at 1:00 amFinance

Filing a Chapter 7 Bankruptcy: What You Need to Know

A businessman got bankruptFiling for a Chapter 7 bankruptcy can be a tricky endeavor for people looking to seek relief from an enormous amount of debt. This underlines the need to do it properly and increase the chances of approval.

Most people consider themselves great money managers, even when the odds are weighed heavily against them. Studies reveal that over 52% of employees stress over their finances. A further 45% of them admit that finances are the leading stressor in their lives.

However, given the sensitive nature of the matter, people rarely open about their financial woes until it is too late. If your financial woes drive you to look for a Chapter 7 attorney in Salt Lake City, here is what you need to know:

It doesn’t cover all your debt

A Chapter 7 bankruptcy is a debt relief program by the federal government that seeks to ease the lives of people drowning in debt. Under this provision, you get a waiver of the unsecured loans such as the credit card debt, payday loans, and personal loans. However, it does not cover student loans, child support, alimony, and back taxes.

It is often a measure of last resort when you run out of options and are unable to service a bludgeoning debt. As such, you need to convince the federal government of your plight and pass a series of assessments over a period of six months.

It’s possible to derail the process by misconduct

While filing for bankruptcy gets creditors and bill collectors off your back, you should not take it as an easy way out. The government makes every effort to ensure that only the people who need the waive get it. As such, they will take a fine-tooth comb through your life until they are satisfied that you are up against the wall.

You should not try to transfer or hide any assets that you may have to qualify. Such underhand tactics are frowned upon and could land you in legal trouble while hurting people who genuinely need the waiver.

Filing for bankruptcy is a measure of last resort for people drowning in a debt they can’t hope to clear. As such, you should apply for a Chapter 7 when backed against the wall.

February 26, 2018 at 4:00 amFinance

Critical Questions You Need to Ask Before Working with a VA Lender

a banker handing a client a loan document to signThe VA Loan Program has been helping veterans, and active service members purchase homes and refinance their home loans since the ‘70s. But to use the VA loan and maximize its benefits, you need to find the right VA-approved lender.

Below are some crucial questions you need to answer when shopping around for prospective lenders.

What’s the VA Lender’s Background on VA Loans?

Although VA loans might not be the best option for all military borrowers, they’ve helped plenty of military people fulfill their dreams of homeownership.

But because they offer such excellent benefits — reduced rates, 0% down payment, and no PMI, among others — they are likewise considered a very specialized product, which means that they can’t be offered by just any lender.

Basically, you would need to find a lender that’s officially approved by Veterans Affairs because VA loans come with very specific requirements and guidelines that are slightly different from those that come with other types of loans.

Could the VA Lender Connect You with a Real Estate Agent Experienced with VA Loans?

For plenty of military homebuyers, working with real estate agents who have ample experience with VA loans is very crucial. This is because they fully understand the unique requirements of military homebuyers and know how to maximize the benefits that VA loans could provide.

What Do Real Clients Say About the Lender?

Many people depend on online reviews when trying to make buying decisions and a VA loan is probably one of the biggest purchases you’ll make in your life. Do your research and read testimonials and reviews of your prospective lender’s clients.

Make sure to read real testimonials and not those that look cherry-picked. Consider looking through trusted and reputable third-party review websites if you’re uncertain of the authenticity of the reviews on the lender’s social media accounts or official website.

Selecting the right VA lender could mean the difference between buying the house of your dreams and getting stuck a so-so house. Try to meet up with prospective lenders multiple times to get a feel of how they work with their clients.

February 20, 2018 at 8:04 amFinance

What You Need To Know Before Getting A Car Title Loan

Man handing over car keysAt some point in people’s lives, there may come a time when they would need to spend a certain amount of money, money which unfortunately they don’t have on hand. A medical emergency perhaps, or major house repairs that aren’t covered by their savings.

When this happens, one option for getting the money needed is to turn to cash loan service providers like Utah Money Center. In Salt Lake City, there are different kinds of loans available for those who need to borrow money fast. One of these is a car title loan, which is a small and short-term loan in which the title on a vehicle is used as collateral.

Here’s everything you need to know about a car title loan and when it’s ideal to apply for one.

How does it work?

Borrowers need to pledge their vehicle as loan collateral by giving the vehicle’s title to the lender until the loan is repaid in full. In order for you to borrow against your car, you need equity in it. In most cases, borrowers need to own the vehicle free and clear (with a clear title to show for it), but there are cases when lenders approve loan applications even if borrowers are still paying off a standard purchase loan.

How much can you borrow?

The loan amount is based on the car’s value or the equity in it. In general, the greater the car’s value, the bigger the amount that you can borrow. However, the full value of a car is rarely given because the higher the amount lent, the more difficult it will be for borrowers to pay it back. Lenders may give only the amount that they can get for the car if they have to repossess and sell (it if the borrower is unable to repay the loan).

What is the usual loan period?

Car title loans are often due for complete repayment within 30 days. In cases where borrowers are unable to repay within that period, they can extend repayment by rolling over the loan. This means they get a new 30-day loan, but they would have to pay new loan fees and additional interest.

What do you need to apply?

Applying for a car title loan requires you to complete a loan application, after which you will need to present your car, a photo ID, proof of insurance, and the clear title. You may also be required to provide duplicates of your car keys.

When applying for a car title loan, make sure you review the loan terms. Ask the lender to tell you the total cost of the loan as well as the annual percentage rate or APR. Lastly, borrow only what you can repay in full by the date the loan is due so that you avoid paying for a loan rollover or worse, losing your car.

February 9, 2018 at 7:53 amFinance

4 Reasons to Opt for a Mortgage

a couple looking at their new houseDo you happen to be among the elite with cash enough to buy property up front? If not, then you will be better off getting your newest asset financed by a bank. Learn the many advantages of using a mortgage to secure a house, a car or a business.

1. You do not have to be liquid.

If you have enough cash to get yourself your dream house, you can always aspire for one through a home loan in Portland.

You need not pay in full to acquire the property all because the bank will take care of the payment. All you have to do is comply with the requirements to get approved by the banker. Next thing you know, your loan is good to go.

2. You decide on the payment terms.

While it will be beneficial for you to pay the mortgage in a short period, you have the freedom to choose not to do so.

You could prefer to pay the loan amount for a longer period in case you do not have the right amount of cash. Besides, the bank will be earning more interests should you decide to stretch the period of payment.

3. You got different payment options.

What’s interesting about mortgages is that you have several options when it comes to payment. There’s the so-called monthly amortization that ideally covers part of the principal and the interest.

In some cases, you could opt to pay the interest alone every month and pay the principal in full on or before the entire obligation matures.

4. You get to secure competitive rates.

When you go for a home loan, you can anticipate competitive interest rates. You might want to check out the existing rate and see the trend whether it is wise for you to buy a property at the moment.

A lower rate would signal a good time to buy, while a higher rate would tell you to defer the purchase somehow.

With a mortgage on hand, you don’t have to pay your property in cash up front. Plus, you get to enjoy yourself with several options.

January 17, 2018 at 10:57 amFinance

3 Biggest Benefits of an Accounts Receivable Loan

Approved Loan ApplicationEvery business needs to grow to succeed in today’s competitive field. To that end, many rely on financing options to expand. Traditional micro-business financing, however, has proven to be beyond the reach of small business owners. One popular option that these owners can turn to is accounts receivable financing.

At its core, it’s the selling of receivables at a lower price to a financing company, which then assumes the risks of these receivables. In turn, it issues your business the much-needed cash to help it grow. Here are the advantages of this type of loan:

No collateral needed

Unlike other loan types that require collateral to secure, this type of loan doesn’t need that. That is of a distinct advantage for small business owners who might not have enough in terms of possessions to put up as collateral. Plus, it’s also good that you don’t have that much in the way of risk—perfect for having a little bit of peace of mind while focusing on actually growing your business.

Ownership retention

One of the most attractive benefits of accounts receivable financing is that you don’t have to give up a portion of your business to secure your loan. One problem with other types of unsecured loans is that they might not ask for collateral but might request for a percentage of your company in return. It’s already assumed that the financing company will take on the risk of your receivables.

Quicker cash flows

Finally, this type of loan actually nets you soluble funds quicker. That’s because you essentially monetize your receivables without needing to move it yourself. That becomes the burden of the financing company. This ultimately means that cash flows in more quickly that you can readily use to grow your business in any way you deem necessary.

If you’re a business owner looking for an effective and easy way to gain cash, a loan from your accounts receivable is the way to go.

January 17, 2018 at 2:20 amFinance