2020 is coming in fast! Can you believe it? It’s hard to say where the last year has gone. In preparation for the upcoming year, we thought it would be a good time to share with you some thoughts the housing market may face next year.

One hypothesis is that there will be a shortage of homes on the market, especially homes not incredibly expensive. Realtor.com suggests that inventory may reach a historic low, especially for entry-level homes. And although the production of homes has increased a bit, it will not be able to meet the demand.

The forecast for interest rates is expected to continue to stay low and move forward throughout the year. Although this can be not confirmed, as we cannot tell the future, many different outlets are in agreement.

Keep in mind that 2020 is an election year. This means anything can truly happen! No matter which side of the market you are on, it is important to be educated before making any decisions.

We heard back from many of you saying you are going crazy with scam calls but blocking the numbers have helped. We are glad you took our advice and started doing that! We did ask if anyone had any more tips to add to chime in with and the response was great. Thank you to those who gave their two cents. We will share them with you here!

A true debt collector will not ask you for any sensitive or private information. Not only does this include your social security number, but also your bank account, routing number, credit card number, passwords, etc. Someone who is not authentic is asking this type of information so they can try to commit identity theft.

A debt collector will not try to get you to pay off a debt via money transfer or any type of prepaid card. Both of these methods are untraceable. At the event you ever try to get your money back, it is not possible. Or if it is possible, it would be very difficult.

We reminded you last week to ask for a callback number at the event you do not feel like someone is being authentic. You can also contact the original creditor and confirm that they are the correct debt collector agency.

Also, we recommend you researching the First Debt Collections Practices Act. This protects you from a lot of things. Ultimately it is for your best interest.

A lot of friends and families are being inundated with scam callers – there are a lot of scams going around! (Quick tip: if they are calling your cell phone, once you have identified that it is a scam, block their number after you’ve hung up!)

Some of these calls sound pretty legitimate. There are a few warning signs to keep your ears open to in order to identify a scam call. (The obvious is out there – if you do not owe anyone money, it is most definitely a scam.) But like we mentioned last week, about 80% of people are in some kind of debt.

To start with, when a true debt collector is calling you, they must identify themselves and the amount of money they claim you owe. They must also send you written notice within five days of the phone call if they do not provide you with the information from the start.

You probably already know this but some people fall for it…a debt collector will not threaten you! There are some circumstances that may result in arrest if you owe fines for a criminal matter, though. A true debt collector will also not threaten to tell your employer, family, or friends. They cannot tell anyone without your permission.

Debt collectors also will not call you before 8am or after 9pm. If it is before or after these hours, they are likely trying to scam you.

When in doubt, ask them for a call back number and call them back! There is nothing wrong with being overly cautious.

Are there any other tips you would like to add to this list?

Did you know that roughly one in four employees do not put money away in savings every month? That is a lot of people! Almost eighty percent of Americans are living paycheck-to-paycheck. That is a lot of debt! The majority of debt comes from student loans, credit cards, car, and home. The amount of debt in those four areas has increased in 2019.

We want to help you get rid of some of your debt! We can’t give you a raise or a bonus. But we can give you some ideas!

To start off with, make paying off your debt a goal! If you have not written down all of your debt, we suggest you do so. When you write it down, be sure to include how much debt you owe from smallest to largest. You can also include your interest rate as well so you have everything in one place.

Have you started a budget yet? If not, please set one up. It is very important when paying off your debt is a goal. With a budget, you will be able to see where you are really spending your money and areas where you can spend less money. Once you have a more solid idea on your spending, you can put more money toward your debt. Start by making minimum payments on your debts.

Having an emergency fund will help protect you from getting in a similar situation again. It’s very important to have a fund like this! In the worse case scenario, you lose your job; you still have bills to pay. Emergency fund to the rescue!

Last but no least, do not accept advice from everyone. Like we mentioned earlier, the majority of people have debt. It does not make sense to accept advice from someone who has debt themselves. Keep that in mind when talking to others about your financial situation.

Whichever route you take, it will be a tough time but we know you can do it. It will take dedication but it is possible.

I am sure you can relate…you just moved into your beautiful, new home – congratulations! With the move, you probably forgot that Thanksgiving is right around the corner. You’re also probably extremely excited to show off your new home and want to host the holiday at your house instead of going somewhere else.

We have some tips we would like to share with you that will help you not have a super stressful Thanksgiving in your new home!

To start, make sure you unpack the supplies you will need for Thanksgiving. For example: dishes, pots, pans, etc. Hopefully you labeled your boxes well and it will be easy for you to unpack those items first. If there is anything you are missing when you unpack but you know you have it somewhere, instead of stressing out and trying to find it (if you are not in the position to unpack everything) ask a family member or friend if you can borrow theirs. Don’t go out and buy a new one.

If you plan to cook in your new home and the appliances are brand new, we would recommend you test the appliances out before you cook a large meal for many people. All appliances work a little different – especially ones that have heating elements involved. If someone offers to bring any dishes or desserts, say yes! This is another way you will be less stressed.

Hold off on any home renovations until after Thanksgiving. Unless it is an extremely easy renovation, just wait. Everyone will understand and not be upset if things are not 100% “perfect.” Don’t forget, you are always your worst critic! Your guests will be spending the majority of their time in the kitchen and dining room. Make those areas a priority.

Most importantly, enjoy making new memories in a brand new place with your loved ones. Not everything has to be perfect. Don’t forget to take a lot of photographs, too – especially if you plan on doing some home renovations. It will be fun to have before and after photos!

Are you in that stage of life where it is time to purchase a home and you have all ducks in a row except for the fact that no one will give you a mortgage? Even if you have enough saved up for your down payment, closing cost, and have fallen in love with a home…you still need to qualify for a mortgage! A lot of people have this problem because of a very low credit score. First off, we want to remind you that you are not alone in this! There are many people who are in the same boat as you. Do not give up because there is hope for you…it is possible with some preparation! It could take up to two years (or more) for you to be in the position to make it happen.

One way to forgo the mortgage route is to work very hard to save up enough money to pay for a starter home in cash. We understand that this may not be completely feasible…but, there is hope! If you purchase a home at a time the housing market is very low, it may be possible. In the long run, it may even wind up working out great for you because you will not be in any debt whatsoever.

If you are a first time homebuyer, the Federal Housing Administration has a loan option for you. The government backs the loan so lenders are not put at risk. The Federal Housing Administration loan has two main qualifications. The first is to have a minimum basic credit score of 580. This requirement is much lower than others. Also, with time to prepare, you have the ability to get your credit score to this position! The second qualification is to have a minimum of at least two years of employment that can be verified.

We hope we were able to shed some light and give you hope that it is possible to qualify for a loan without qualifying for a conventional mortgage!

     We have briefly talked about closing costs in a few of our articles. Today we are going to go into further detail about it. If you are trying to get a quick estimate for budgeting reasons, it is about 2-4% of the purchase price of your home. It can fluctuate and anything can change but that is a good base idea.

     If you are unsure of what goes into a closing cost and what it is exactly, we will discuss it even further. One of the main – and very important! – components is your home inspection. The inspection will provide you with a list of what they find throughout the entire home. When hiring your inspector, do your research and ask for recommendations. You want to make sure you have a good one that does not cut corners and will tell you the truth. You need to know the ins and outs of the potential house you will own! For example, how are the pipes and foundation? Is the roof ok? Are there rodents in the attic? Does the air-conditioning unit function properly? This is something you want to pay for so you won’t be in for any surprises after you move in to the home!
Some homeowners decide to hire an attorney to help with the closing process. This is not necessary. But, if you do decide to do this, factor that in your closing cost budget. Most attorneys charge by the hour.

     Lender fees are something else you are responsible for. Each lender handles these costs differently so you will want to find out from your lending officer what their fees are and how they expect to be paid. For example, some lenders add the cost into the mortgage. Other lenders require a fee to be paid during the escrow signing. This also takes care of appraisal fees, paperwork fees, administration fees, etc.

     Title fees are a big proponent of closing costs – up to or more than 50%! Title fees consist of the cost of lender title insurance, title search, etc.

     Something else to keep in mind is the fact that you are likely putting a down payment down as well. Down payments are typically a minimum of 10% of the cost of the home. Some down payments can be more. It just depends what you qualify for.

     If you plan on purchasing a home in the foreseeable future, be sure to keep these additional costs in mind! As always, if you are ever unsure about anything, ask a professional for help and their advice!

There are many people who refinance their homes throughout their lifetime. There are a few reasons for that – which we will discuss today! Owning a home is not only something you should take pride in, but also a way you can use as an investment tool as well.

Some people will refinance their home in order to get a better (lower) interest rate. If your current interest rate is 5% and it goes down to 3.5%, it is something to think about. Before making the decision on our own, it is always recommended that you speak with a professional about your options. From the outside looking in, a 1.5% interest rate drop sure sounds enticing!

Then there are others that may have come into a significant amount of money and want to pay off their mortgage a quicker. For example, if they originally took out a 30-year mortgage and decide that they want a 15-year mortgage, they may refinance to a 15-year mortgage instead.

The reverse is also possible. What that means is…if you currently have a 15-year mortgage but can no longer afford the monthly payments, you have the option to refinance to a 30-year mortgage. By doing this, you would decrease your monthly payments.

We want to remind you that you should always pay off your mortgage in a timely manner and save as much money as possible in the process. Tough times happen and sometimes homeowners need money to pay for debt, education, or other things that may come up in life. You are able to refinance your mortgage and pull out some of your equity. As we mentioned earlier, please be sure you speak to a professional before making a decision such as this.

If you need to remove someone from your mortgage (think: divorce) you can refinance your mortgage to remove him or her.

Unexpected things happen in life sometimes and you have to roll with the punches! Before making any of these decisions, please do not forget to speak with a professional and see what advice they have for you.

For those people who want pay back on your mortgage as soon as possible, you may want to consider making extra mortgage payments. Some people will not dabble with it in case it has a negative impact, somehow, on them. Be sure to speak with someone reputable in regards to paying it back early if that is something you wish to do.

To begin with, you can just add a nominal additional amount as extra payment toward the principal. It can be as small as ten dollars. Over the course of your loan, depending on the interest rate and other facts, you could save a substantial amount of money. It is imperative that your loan servicer knows that these extra payments are to go toward the outstanding principal.

It is beneficial for you to make extra mortgage payments early on in your loan. This helps to lower interest in future months. The reason for this is that in the beginning of your loan, the payments are “interest-heavy.”

You could also save money, in the long run, if you make a significant single extra mortgage payment. Again, it is most beneficial if you make a large additional payment early on in your loan. You could also make just one extra mortgage payment every year. Some people will do this after receiving an unexpected bonus from work or after they receive their tax refund.

No matter which method you decide to use to make extra mortgage payments, we cannot stress enough that it is necessary to be sure the loan servicer is well aware that what the money is suppose to go toward. Also be sure you will not be penalized in any way for the extra payment.