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Jennifer Bunker
CRS, GRI
Owner/Broker
Coldwater Creek
Properties
Utah's Wasatch
Front
Northern Utah 84405
Office:
801.475-6025
Cell:
801-791-0365
Fax:
801-475.6027
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8 Steps to Getting Your Finances in Order |
1. Develop a family
budget. Instead of budgeting what you'd like to spend, use
receipts to create a budget for what you actually spent
over the last six months. One advantage of this approach
is that it factors in unexpected expenses such as car
repairs, illnesses, etc., as well as predictable costs
such as rent.
2. Reduce your debt. Generally speaking, lenders look for
a total debt load of no more than 36 percent of income.
Since this figure includes your mortgage, which typically
ranges between 25 and 28 percent of income, you need to
get the rest of your installment debt—car loans, student
loans, revolving balances on credit cards—down to between
8 and 10 percent of your total income.
3. Get a handle on expenses. You
probably know how much you spend on rent and utilities,
but little expenses add up. Try writing down everything
you spend for one month. You'll probably see some great
ways to save.
4. Increase your income. It may be necessary to take on a
second, part-time job to get your income at a high enough
level to qualify for the home you want.
5. Save for a downpayment. Although it's possible to get a
mortgage with only 5 percent down—or even less in some
cases—you can usually get a better rate and a lower
overall cost if you put down more. Shoot for saving a 20
percent downpayment.
6. Create a house fund. Don't just plan on saving
whatever's left toward a downpayment. Instead decide on a
certain amount a month you want to save, then put it away
as you pay your monthly bills.
7. Keep your job. While you don't need to be in the same
job forever to qualify, having a job for less than two
years may mean you have to pay a higher interest rate.
8. Establish a good credit history. Get a credit card and
make payments by the due date. Do the same for all your
other bills. Pay off the entire balance promptly.
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Budget Basics Worksheet |
The first step in
getting yourself in financial shape to buy a home is to
know what you make and what you spend now. List your
income and expenses below
| Income |
 |
| Take Home Pay/All
family members |
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| Child
Support/Alimony |
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| Pension/Social
Security |
|
| Disability/Other
Insurance |
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| Interest/Dividends
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| Other |
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| Total Income
|
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| Expenses |
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| Rent/Mortgage
(include taxes, principal, and insurance) |
|
| Life Insurance |
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| Health/Disability
Insurance |
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| Vehicle Insurance |
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| Homeowners or Other
Insurance |
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| Car Payments |
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| Other Loan Payments |
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| Savings/Pension
Contribution |
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| Utilities (gas,
water, electric, phone) |
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| Credit Card
Payments |
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| Car Upkeep (gas,
maintenance) |
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| Clothing |
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| Personal Care
Products (shampoo, shaving cream, etc.) |
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| Groceries |
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| Food prepared
outside the home (restaurant meals and carry out) |
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Medical/Dental/Prescriptions |
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| Household Goods
(hardware, lawn and garden) |
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Recreation/Entertainment |
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| Child Care |
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| Education
(continuing education, lessons for children) |
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| Charitable
Donations |
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| Miscellaneous |
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| Total Expenses = |
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| Remaining Income
After Expenses = |
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8 Ways
to Improve Your Credit |
Credit
scores, along with your overall income and debt,
are a big factor in determining if you'll
qualify for a loan and what loan terms you'll be
able to qualify for.
1. Check for and correct errors in your credit
report. Mistakes happen, and you could be paying
for someone else's poor financial management.
2. Pay down credit card
bills. If possible, pay off the entire balance
every month. However, transferring credit card
debt from one card to another could lower your
score.
3. Don't charge your credit cards to the maximum
limit.
4. Wait 12 months after credit difficulties to
apply for a mortgage. You're penalized less for
problems after a year.
5. Don't order items for your new home you'll
buy on credit—such as appliances—until after the
loan is approved. The amounts will add to your
debt.
6. Don't open new credit card accounts before
applying for a mortgage. Having too much
available credit can lower your score.
7. Shop for mortgage rates all at once. Too many
credit applications can lower your score, but
multiple inquiries from the same type of lender
are counted as one inquiry if submitted over a
short period of time.
8. Avoid finance companies. Even if you pay the
loan on time, the interest is high and it will
probably be considered a sign of poor credit
management.
This information is
copyrighted by the Fannie Mae Foundation and is
used with permission of the Fannie Mae
Foundation. To obtain a complete copy of the
publication, Knowing and Understanding Your
Credit, visit
http://www.homebuyingguide.org |
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5 Factors That Determine Your Credit Score |
Scores range
between 200 and 800. Scores above 620 are
considered desirable for obtaining a mortgage.
These factors will affect your score.
Your Payment History. Whether you paid credit
card obligations on time
How Much You Owe. Owing a
great deal of money on numerous accounts can
indicate that you are overextended.
The Length of Your Credit History. In general
the longer the better.
How Much New Credit You Have. New credit, either
installment payments or new credit cards, are
considered more risky, even if you pay promptly.
The Types of Credit You Use. Generally, it's
desirable to have more than one type of
credit—installment loans, credit cards, and a
mortgage, for example.
For more on evaluating and understanding your
credit score, go to
http://www.myfico.com/?lpid=NARI3.
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Your Property
Wish List |
While your
opinions on the type of home you want to own may
change during the homebuying process, use this
easy checklist to help you set your priorities
and make the shopping process less time
consuming.
What neighborhoods
would you prefer?
What school systems do
you want to be near?
How close do you need to be to:
(a) public transportation
(b) schools
(c) airport
(d) expressway
(e) neighborhood shopping
(f) other
What architectural style(s) of homes do you
prefer?
Do you want a one story or two-story house?
How old a home would you consider?
How much repair or renovation would you be
willing to do?
Do you have special facilities or needs that
your home must meet?
Do you require a fenced yard or other amenities
for your pets?
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Prioritize each of these options |
Must
have |
Would
Prefer |
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| Yard (at
least_________) |
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| Garage
(size________) |
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Patio/Deck |
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| Pool |
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| Bedrooms
(number_________) |
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| Bathrooms
(number_________) |
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| Family
room |
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| Formal
living room |
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| Formal
dining room |
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| Eat-in
kitchen |
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| Laundry
room |
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| Basement |
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| Attic |
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| Fireplace
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| Spa in
bath |
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| Air
conditioning |
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Wall-to-wall carpet |
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| Hardwood
floors |
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| View |
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| Light
(windows) |
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| Shade |
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