So the strangest thing happened to me over the weekend. I got a hand-addressed envelope in the mail! You may think it's odd that I find that interesting, but really, how often does that happen? I told my friends about it, and they were all like, "Are you sure it wasn't auto-penned?" Nope, this was genuinely hand written.
It was from a bank too, a bank that I have dealings with actually. The bank my car loan is through. Inside this hand-addressed envelope was a printer advertisement for a mortgage special they have going until the end of February. Stapled onto the page was a business card from a local banker with them, and the (I'm assuming) national phone number that was printed on the sheet was blacked out.
Now, the deal actually seems really promising, something I'd be very willing to consider. The only real problem is, it has a deadline that comes before I'm going to be ready to actually buy a house. I'm sure there are some strings attached that they don't disclose on the form, or some other downside I didn't see (This is one of those larger national banks), but for the most part it seemed like a good deal.
The deal is actually so good, I've almost considered contacting the guy, just to see if they would be able to extend it till my deadline.
But what I find most interesting about this whole thing is, why did this guy feel like it was worth his time to hand-address an envelope to mail it to me? Is it possible he googled me and found this site and decided I might be a good candidate for a mortgage? Or is it just one of those random things where there is no meaning?
If I do decide to contact him about the deal, I'm going to ask. . . .
Tuesday, January 31, 2012
Friday, January 27, 2012
Friday already?
So, it's Friday again, and it's time to give you guys an update on where I am.
I still have that $358 in my FSA from last year, and I have been lazy about spending it, but I have until March, so I've got time.
I've now have $703.54 saved for the house fund.
Turns out that my tax refund is now expected this upcoming Wednesday.
My credit sesame score is holding steady at 772, but that's partly because it only updates once a month.
I have not contacted any lenders about a mortgage, or any realtors about finding a house yet. I did talk to a friend about the upcoming process and gained a little insight.
I have also been able to use the sharing option on Credit Sesame, you can see my badge at the bottom of the column on the right.
I still have that $358 in my FSA from last year, and I have been lazy about spending it, but I have until March, so I've got time.
I've now have $703.54 saved for the house fund.
Turns out that my tax refund is now expected this upcoming Wednesday.
My credit sesame score is holding steady at 772, but that's partly because it only updates once a month.
I have not contacted any lenders about a mortgage, or any realtors about finding a house yet. I did talk to a friend about the upcoming process and gained a little insight.
I have also been able to use the sharing option on Credit Sesame, you can see my badge at the bottom of the column on the right.
Thursday, January 26, 2012
My Financial Past
So, I've alluded to this a little in previous posts, but I figure I should give you guys a rundown on what has brought me to where I am now. I have worked for as long as I can remember. My parents were avid sci-fi fans and we went to conventions to sell merchandise in the dealers rooms, and many times I'd be left in charge of the table. Outside of that, I had a paper route and in my off time I would help my mother collect UPCs and coupons.
We were a very thrifty family. My mother had coupons for everything, she would trade with people through the mail even. We had filing cabinets full of UPCs saved in case there was a future rebate. I was taught at an early age the value of a dollar and how to stretch your money, but it never really sunk in.
At around 10 years old, my family moved down to Georgia. Things worked differently here, kids didn't have paper routes. It wasn't until I was 15 that I really started working again. I would go and help out at the local comic book store in exchange for credit I could use to buy comics with. It was good work, I loved the people and had a great time.
A little while later, when I got my own car, I had bills to pay, so I needed real money. After that I worked a few different jobs; I worked at a few fast food restaurants and even did a stint in retail. After high school, it was time for me to move out on my own, and like every other grown-up, I got credit!
That was a bad idea. Eventually, I was maxed out on all my credit cards and overdrafting my checking account all the time. In the end, at age 21, I was near bankruptcy, although somehow I never quite got there. I defaulted on 3 or 4 different credit cards, and eventually had no credit and only lived off what I made each paycheck.
You'd think I would have learned from that, but it wasn't until 2-3 years ago that I finally changed my life. I found Quickenonline, and it saved me. The feature that let you put in recurring bills and estimate your bank account on any given day was all it took for me to stop overdrafting. I would estimate that over the course of 10 years, I paid at least $9,000 in overdraft fees. Not to mention all the other fees on credit cards for being over the limit and only paying minimum payments.
But my story doesn't end there, because eventually, those defaulted credit cards drop off your credit report. And what happens then? You can get more credit cards. And I did, and I wasn't smart the second time either. I never let the cards go over the limit, but I carried balances, for a long time. And I'm sure I've paid my fair share of interest these past few years. But then something changed, I got to claim a dependent on my taxes, and my return was HUGE! And I paid off my credit cards! And now I barely carry any balance from month to month, and pay off most of my cards each month.
This all goes to show that no matter how bad you are financially now, there's always hope. You just have to be willing to make changes. I could have fixed all my problems sooner, if I had only tried. All it took was being able to estimate my bills and see where all my money was going for me to realize how to fix it. If I had just started keeping a paper ledger so many years ago and actually kept on top of it, I would have been fine. But I was lazy, and didn't do it. But now I check my bank accounts every few days, watch my bills and make sure they're all paid on time, and you can too.
We were a very thrifty family. My mother had coupons for everything, she would trade with people through the mail even. We had filing cabinets full of UPCs saved in case there was a future rebate. I was taught at an early age the value of a dollar and how to stretch your money, but it never really sunk in.
At around 10 years old, my family moved down to Georgia. Things worked differently here, kids didn't have paper routes. It wasn't until I was 15 that I really started working again. I would go and help out at the local comic book store in exchange for credit I could use to buy comics with. It was good work, I loved the people and had a great time.
A little while later, when I got my own car, I had bills to pay, so I needed real money. After that I worked a few different jobs; I worked at a few fast food restaurants and even did a stint in retail. After high school, it was time for me to move out on my own, and like every other grown-up, I got credit!
That was a bad idea. Eventually, I was maxed out on all my credit cards and overdrafting my checking account all the time. In the end, at age 21, I was near bankruptcy, although somehow I never quite got there. I defaulted on 3 or 4 different credit cards, and eventually had no credit and only lived off what I made each paycheck.
You'd think I would have learned from that, but it wasn't until 2-3 years ago that I finally changed my life. I found Quickenonline, and it saved me. The feature that let you put in recurring bills and estimate your bank account on any given day was all it took for me to stop overdrafting. I would estimate that over the course of 10 years, I paid at least $9,000 in overdraft fees. Not to mention all the other fees on credit cards for being over the limit and only paying minimum payments.
But my story doesn't end there, because eventually, those defaulted credit cards drop off your credit report. And what happens then? You can get more credit cards. And I did, and I wasn't smart the second time either. I never let the cards go over the limit, but I carried balances, for a long time. And I'm sure I've paid my fair share of interest these past few years. But then something changed, I got to claim a dependent on my taxes, and my return was HUGE! And I paid off my credit cards! And now I barely carry any balance from month to month, and pay off most of my cards each month.
This all goes to show that no matter how bad you are financially now, there's always hope. You just have to be willing to make changes. I could have fixed all my problems sooner, if I had only tried. All it took was being able to estimate my bills and see where all my money was going for me to realize how to fix it. If I had just started keeping a paper ledger so many years ago and actually kept on top of it, I would have been fine. But I was lazy, and didn't do it. But now I check my bank accounts every few days, watch my bills and make sure they're all paid on time, and you can too.
Wednesday, January 25, 2012
The urge to spend is strong.
Saving money isn't just about not spending it. One mistake a lot of people make when trying to save money is to outlaw all frivolous spending. What that does is make the urge to spend even stronger. When creating a budget, it is important to not just leave a little wiggle room, but to also budget in money you can spend freely with no worry, Mad Money.
When you have money you don't have to account for, not a lot, but $5-$10 per week, it makes it easier to stay within budget. You're able to buy the small things you like, and more resistant to the urge to buy things you don't need. Of course, adding in an entertainment budget can help too. Setting aside a segment of your budget to do fun things, like go the movies, play mini-golf, or whatever, will help you feel less restricted, making you less likely to want to "fight back" against the restraints of your budget.
Of course, even with an money built into a budget for entertainment, and some extra mad money will still not keep the urge to spend down, and that's where my previous entry comes in, Saving more, spending less. It's important to be able to determine if a purchase really is worth the money in the long run.
What happens when you find one that doesn't fall in your budget that really is worthwhile? Change your budget, simple as that. Part of having a good budget is the ability to change it so that you can get what you want and what you need without resorting to bad decisions.
When you have money you don't have to account for, not a lot, but $5-$10 per week, it makes it easier to stay within budget. You're able to buy the small things you like, and more resistant to the urge to buy things you don't need. Of course, adding in an entertainment budget can help too. Setting aside a segment of your budget to do fun things, like go the movies, play mini-golf, or whatever, will help you feel less restricted, making you less likely to want to "fight back" against the restraints of your budget.
Of course, even with an money built into a budget for entertainment, and some extra mad money will still not keep the urge to spend down, and that's where my previous entry comes in, Saving more, spending less. It's important to be able to determine if a purchase really is worth the money in the long run.
What happens when you find one that doesn't fall in your budget that really is worthwhile? Change your budget, simple as that. Part of having a good budget is the ability to change it so that you can get what you want and what you need without resorting to bad decisions.
Tuesday, January 24, 2012
That's not good news . . .
So, I have this friend who works at a bank. I figured she'd make a great resource with the process, working in a financial institution and having gone through the process herself. So I gave her the rundown on where I was and how far along in the process I am.
So far I seemed to be right on the money, trying the credit union first for the mortgage, what kinda things will be required of me to qualify, the type of loan I'd need, stuff like that. But then there's the bad news. I'd need more like $6,000 and not the ~$3,000 I have. Closing costs increase the amount of money you need up-front to buy a house.
So here I am with cash to put down on a house, but not enough to pay those damned closing costs. Whatever shall I do? Well, I can try to find more money, but that might be tough. When it comes time to close, I'll have a little more money, but not enough to cover that wide a gap.
Can I just pay the closing costs and not put any money down? I'd heard of people doing that before, but that's part of what's caused the economy to go down the toilet, so you can't do that anymore.
How about rolling the closing costs into the loan? Not exactly. I can't do it myself, but if the seller were to pay the closing costs, then add that onto the sale price of the house, which will in turn roll it into the mortgage.
So it's not great news. Although I kinda expected something like this, I still feel confident that I'll make it through the process. And with this being a buyer's market, I'm certain I'll find a seller willing to work with me to get the house of of their hands and into mine!
So far I seemed to be right on the money, trying the credit union first for the mortgage, what kinda things will be required of me to qualify, the type of loan I'd need, stuff like that. But then there's the bad news. I'd need more like $6,000 and not the ~$3,000 I have. Closing costs increase the amount of money you need up-front to buy a house.
So here I am with cash to put down on a house, but not enough to pay those damned closing costs. Whatever shall I do? Well, I can try to find more money, but that might be tough. When it comes time to close, I'll have a little more money, but not enough to cover that wide a gap.
Can I just pay the closing costs and not put any money down? I'd heard of people doing that before, but that's part of what's caused the economy to go down the toilet, so you can't do that anymore.
How about rolling the closing costs into the loan? Not exactly. I can't do it myself, but if the seller were to pay the closing costs, then add that onto the sale price of the house, which will in turn roll it into the mortgage.
So it's not great news. Although I kinda expected something like this, I still feel confident that I'll make it through the process. And with this being a buyer's market, I'm certain I'll find a seller willing to work with me to get the house of of their hands and into mine!
Monday, January 23, 2012
Free Money! Free Stuff!
Part of my mantra is free is always good. There are a lot of ways to find great deals on things, but sometimes it can be a bit harder to find it for free. There are a lot of sites out there that offer free stuff, and a lot of scams too. So I'm just going to cover things I personally use.
The biggest best way to get free money or free stuff? A rewards credit card. You got one? No? Well, if you get approved, the Amazon rewards card from Chase is pretty good. That's the one I use mostly. Now, how does a credit card mean free? Simple. Every month, you have bills you pay. Insurance, water, electricity, whatever. These are bills you pay every single month without fail. So, since you're already forking out that cash every month, why not pass it through your rewards card first?
What you do is pay the bill with the credit card, then send the money you'd have have used to pay the bill to the credit card company instead. This way you're not carrying a balance (carrying a balance on your credit cards completely works against you) and you're earning 1-3% back. It's crazy simple, but I never thought about it until I read an article on doing this a few months ago.
Another site I use to get something extra for the things I do is MyPoints. This site is like a rewards card in that you earn points for things you do online. There are a lot of sites that you might buy something from, and if you go through the Mypoints link, you'll earn points that can be redeemed for giftcards at all sorts of different places. I have been a member of the site for over 13 years. Over those years I have earned hundreds of dollars worth of free gift cards. They even offer the option to earn points by answering a question everyday or even searching the internet with their toolbar.
Another option to get free stuff is old-school. It's as simple as writing a letter to a company. Not something I've done recently, but I'm tempted to start doing it again. Just write a letter (preferably snail mail, e-mail doesn't seem to work as well) and shoot it off to them. A great example of this is The $39 Experiment. The idea of mailing a letter to a company is just so rare these days I'd think you'd be even more likely to get something for nothing. Obviously, you have to pay for the postage, paper and envelope, but it still might not be much compared to what you get in return.
I'd love for you to share with me your favorite ways to get free money and stuff!
The biggest best way to get free money or free stuff? A rewards credit card. You got one? No? Well, if you get approved, the Amazon rewards card from Chase is pretty good. That's the one I use mostly. Now, how does a credit card mean free? Simple. Every month, you have bills you pay. Insurance, water, electricity, whatever. These are bills you pay every single month without fail. So, since you're already forking out that cash every month, why not pass it through your rewards card first?
What you do is pay the bill with the credit card, then send the money you'd have have used to pay the bill to the credit card company instead. This way you're not carrying a balance (carrying a balance on your credit cards completely works against you) and you're earning 1-3% back. It's crazy simple, but I never thought about it until I read an article on doing this a few months ago.
Another site I use to get something extra for the things I do is MyPoints. This site is like a rewards card in that you earn points for things you do online. There are a lot of sites that you might buy something from, and if you go through the Mypoints link, you'll earn points that can be redeemed for giftcards at all sorts of different places. I have been a member of the site for over 13 years. Over those years I have earned hundreds of dollars worth of free gift cards. They even offer the option to earn points by answering a question everyday or even searching the internet with their toolbar.
Another option to get free stuff is old-school. It's as simple as writing a letter to a company. Not something I've done recently, but I'm tempted to start doing it again. Just write a letter (preferably snail mail, e-mail doesn't seem to work as well) and shoot it off to them. A great example of this is The $39 Experiment. The idea of mailing a letter to a company is just so rare these days I'd think you'd be even more likely to get something for nothing. Obviously, you have to pay for the postage, paper and envelope, but it still might not be much compared to what you get in return.
I'd love for you to share with me your favorite ways to get free money and stuff!
Friday, January 20, 2012
My weekly update
So, it's Friday, and I figure it's a great time to give you guys an update on where I am.
I still have that $358 in my FSA from last year, and I plan on trying to use that up by the end of the weekend. My HR reps have confirmed that there is a grace period until the end of march to use that.
I've now got $678.54 saved for the house fund, just got paid today.
I have filed my 2011 taxes, and am expecting an estimated $3,000 refund next week.
My credit sesame score is holding steady at 772
I have not contacted any lenders about a mortgage, or any realtors about finding a house yet.
I suspended my exterminator today to save a little more money for a service I won't need.
I still have that $358 in my FSA from last year, and I plan on trying to use that up by the end of the weekend. My HR reps have confirmed that there is a grace period until the end of march to use that.
I've now got $678.54 saved for the house fund, just got paid today.
I have filed my 2011 taxes, and am expecting an estimated $3,000 refund next week.
My credit sesame score is holding steady at 772
I have not contacted any lenders about a mortgage, or any realtors about finding a house yet.
I suspended my exterminator today to save a little more money for a service I won't need.
Saving more, spending less
Part of being financially responsible is not wasting money. Every day, you make choices on how to spend your money, and each choice will either benefit you or it won't. It is important to think about everything you buy and all the money you spend. Do you really need to get the name brand frozen pizza, or will the store brand be just as good?
Some decisions are easy, it's hard to really tell much difference between one brand of bleach and the next, but some are harder. I personally don't like macaroni and cheese unless it's Kraft. I've tried other brands, and none have lived up to the quality of the name brand.
Every time you spend money, you need to think before you buy. It's really important to stop buying on impulse. A great article on So Over Debt describes a great process of determining if a purchase will really be good for you in the long run. This process goes for purchases of every size, whether it's a new car or a pack of gum.
Another great way to save money is to use coupons. I'm sure you've all heard of those extreme couponers who are able to save like 90% on their purchases. I wouldn't expect people to go that far, but if you're gonna go and buy a new toothbrush, there are coupons easily accessible across the internet for that and many other things.
Also, a lot of stores have some sort of savings club. One example is Kroger Plus, with that card you can save money on everyday purchases, and they'll even mail you coupons from time to time, plus they allow you to load electronic coupons on your card for later use. The program is free, and easy to use.
Now I'd like to ask, what do you do to save money from day-to-day?
Some decisions are easy, it's hard to really tell much difference between one brand of bleach and the next, but some are harder. I personally don't like macaroni and cheese unless it's Kraft. I've tried other brands, and none have lived up to the quality of the name brand.
Every time you spend money, you need to think before you buy. It's really important to stop buying on impulse. A great article on So Over Debt describes a great process of determining if a purchase will really be good for you in the long run. This process goes for purchases of every size, whether it's a new car or a pack of gum.
Another great way to save money is to use coupons. I'm sure you've all heard of those extreme couponers who are able to save like 90% on their purchases. I wouldn't expect people to go that far, but if you're gonna go and buy a new toothbrush, there are coupons easily accessible across the internet for that and many other things.
Also, a lot of stores have some sort of savings club. One example is Kroger Plus, with that card you can save money on everyday purchases, and they'll even mail you coupons from time to time, plus they allow you to load electronic coupons on your card for later use. The program is free, and easy to use.
Now I'd like to ask, what do you do to save money from day-to-day?
Thursday, January 19, 2012
Flexible Spending Accounts and you
My employer offers the opportunity to save money by way of a Flexible Spending Account, or FSA. An FSA allows you to put money in, before taxes are taken out of your paycheck, and set it aside to pay off certain types of expenses. My employer offers one for both medical and childcare expenses.
The obvious benefit to doing this is being able to pay your medical expenses with money that you don't have to pay taxes on. Doing so can save you hundreds or thousands of dollars per year. The one drawback is that if you don't spend the money in that year, it is gone, and you cannot get it back.
I choose to contribute $500 annually to my FSA, which I can then use to pay for things like co-pay, prescriptions, glasses, even some over-the-counter drugs and medical supplies. Each provider has their own list of exactly what will qualify as a valid medical expense for their FSA, and a lot of it is regulated. In the past, most over-the-counter drugs were covered flat out, but this past year the rules were changed, so you must have a doctor's prescription for them to be covered.
There are still many supplies that a lot of FSA will cover without the need for a doctor's not though. These include bandages, braces, gauze, heating pads, saline solution, supports, thermometers and more. It is important for anyone to verify these with their provider before purchase though.
Last year, I expected my medical expenses to be much larger, and only used a small portion of my FSA, leaving me with over $300 in the account. With it being 2012, I thought I was out of luck. However, after talking to my human resources representative, I've found out there is an extension for the healthcare FSA, and I have until March 15 to incur claims! So now, I must figure out how to spend this money as quickly and efficiently as possible. As the saying goes: waste not, want not.
The obvious benefit to doing this is being able to pay your medical expenses with money that you don't have to pay taxes on. Doing so can save you hundreds or thousands of dollars per year. The one drawback is that if you don't spend the money in that year, it is gone, and you cannot get it back.
I choose to contribute $500 annually to my FSA, which I can then use to pay for things like co-pay, prescriptions, glasses, even some over-the-counter drugs and medical supplies. Each provider has their own list of exactly what will qualify as a valid medical expense for their FSA, and a lot of it is regulated. In the past, most over-the-counter drugs were covered flat out, but this past year the rules were changed, so you must have a doctor's prescription for them to be covered.
There are still many supplies that a lot of FSA will cover without the need for a doctor's not though. These include bandages, braces, gauze, heating pads, saline solution, supports, thermometers and more. It is important for anyone to verify these with their provider before purchase though.
Last year, I expected my medical expenses to be much larger, and only used a small portion of my FSA, leaving me with over $300 in the account. With it being 2012, I thought I was out of luck. However, after talking to my human resources representative, I've found out there is an extension for the healthcare FSA, and I have until March 15 to incur claims! So now, I must figure out how to spend this money as quickly and efficiently as possible. As the saying goes: waste not, want not.
Wednesday, January 18, 2012
How does employment affect a mortgage?
So, an interesting question was posed today, "How does changing employers affect a mortgage?" I was curious, so I did a little research and even called my bank.
The simple answer, at least for me, would be that it wouldn't. For any normal person, as long as they're staying in basically the same line of work, changing jobs won't make a huge difference on their ability to qualify for a mortgage. Obviously, your lending institution might have different rules, but my bank said that all they would need would be 30 days worth of pay stubs, basically to prove how much money you're making.
For some people, changing jobs can have a disastrous impact on the qualification process though. If your income is based off commissions, or a lot of your income is based off bonuses, it might be a good idea to put off changing jobs until after you purchase your new home. It is also recommended to put of becoming self-employed or changing jobs if you only work part time.
The reasons for this is the way lenders calculate your income. For the most part, they like to average your income for the past two years, and if your income varies from month-to-month in your new job, they won't have as much data to make their calculations and it may look bad.
The simple answer, at least for me, would be that it wouldn't. For any normal person, as long as they're staying in basically the same line of work, changing jobs won't make a huge difference on their ability to qualify for a mortgage. Obviously, your lending institution might have different rules, but my bank said that all they would need would be 30 days worth of pay stubs, basically to prove how much money you're making.
For some people, changing jobs can have a disastrous impact on the qualification process though. If your income is based off commissions, or a lot of your income is based off bonuses, it might be a good idea to put off changing jobs until after you purchase your new home. It is also recommended to put of becoming self-employed or changing jobs if you only work part time.
The reasons for this is the way lenders calculate your income. For the most part, they like to average your income for the past two years, and if your income varies from month-to-month in your new job, they won't have as much data to make their calculations and it may look bad.
Tax prep for 2012
So, I just filed my taxes yesterday, and already know what my estimated return is going to be. And now it's time to think about this year's taxes. Some people think it might be too early, but it all depends on how you look at taxes. Sure, it's nice to have this big check come to you once a year, it's like free money, right?
No, it's lost money. By getting money back from taxes, you are in essence giving the federal government a free loan. The money would do you more good if you reduce your withholdings and put that extra money into a savings account. As an example, if I were to pay the exact amount I owe in taxes every paycheck instead of the amount I have been, I would be getting at least $100 more per paycheck. If I then take that money and put it into my Roth IRA, I'd be nearly maxing it out each year. Or I could take that money and put it into a vacation fund, and have a few really nice getaways every year. Alternatively, you could take the money and put it into a savings account that you'll never touch except for emergencies, and then you'd be prepared for a lot of life's pitfalls.
Personally, I plan to adjust my withholdings, and max out my Roth IRA contributions. The amount of money I'll be getting from the change won't quite cover the contributions to my retirement fund, but the difference will be minimal and I'm certain I'll be able to handle it.
The one hurdle I have right now is making the actual change. I have to get in contact with human resources at my employer, and so far my luck with that isn't very good.
No, it's lost money. By getting money back from taxes, you are in essence giving the federal government a free loan. The money would do you more good if you reduce your withholdings and put that extra money into a savings account. As an example, if I were to pay the exact amount I owe in taxes every paycheck instead of the amount I have been, I would be getting at least $100 more per paycheck. If I then take that money and put it into my Roth IRA, I'd be nearly maxing it out each year. Or I could take that money and put it into a vacation fund, and have a few really nice getaways every year. Alternatively, you could take the money and put it into a savings account that you'll never touch except for emergencies, and then you'd be prepared for a lot of life's pitfalls.
Personally, I plan to adjust my withholdings, and max out my Roth IRA contributions. The amount of money I'll be getting from the change won't quite cover the contributions to my retirement fund, but the difference will be minimal and I'm certain I'll be able to handle it.
The one hurdle I have right now is making the actual change. I have to get in contact with human resources at my employer, and so far my luck with that isn't very good.
Tuesday, January 17, 2012
Tax Time!
Yay! W-2 is finally available! So, right now I'm doing my taxes, and things are looking great. Now, I know it's pretty easy to file taxes with a 1040ez, but I like the added benefit of using online filing, and since most places now let you file your federal taxes on line for free, I prefer it. And, because of how easy and free the federal returns are, I don't mind paying a little money to file my state returns electronically too.
I'm sure many people have their own favorite electronic tax company, but I prefer TaxACT Online. The price for filing state taxes is not too bad and I've used them to file for the past 6 years. I started with them because they were one of the first that I found that allowed free federal e-file before it was the norm.
So, I bet you want some numbers, I won't give you everything, but my combined federal and state refund will be over $3,000. This now gives me a hard number to use for a down payment for a house.
Now that my taxes are filed, I just have to wait for a return. I've got notifications setup to e-mail and text me when something changes, so I'll be ready in an instant.
I'm sure many people have their own favorite electronic tax company, but I prefer TaxACT Online. The price for filing state taxes is not too bad and I've used them to file for the past 6 years. I started with them because they were one of the first that I found that allowed free federal e-file before it was the norm.
So, I bet you want some numbers, I won't give you everything, but my combined federal and state refund will be over $3,000. This now gives me a hard number to use for a down payment for a house.
Now that my taxes are filed, I just have to wait for a return. I've got notifications setup to e-mail and text me when something changes, so I'll be ready in an instant.
Monday, January 16, 2012
Save it or spend it?
So, after my earlier post, I had a thought about all the money I have set aside for retirement; I might actually be able to take some money out of my 401(k) for the down payment on a house. It really does sound like a good idea, would allow me to buy a better house, without paying a whole lot more per month. So, before I even looked into the requirements and hurdles I'd have to jump through to get the money, I decided instead to look at the impact doing that would have on my retirement.
I popped on over to Bankrate.com's calculators and checked out the difference between how much I'd have saved for retirement if I started with what I have, or $10,000 less (for the down payment). Obviously, all the numbers are fudged a bit, I have no idea how much any of it will be worth, but with the numbers that were already filled in, by having $10,000 less in my retirement account I would end up with over $100,000 less when I retire.
If I adjust the annual rate of return down, it makes an even bigger impact in the percentage of money I lose over time. At half the return rate, it eats away almost half the money I have saved. Now, none of these calculations take into account any ongoing savings, because those numbers won't change one way or another based on this choice.
So, is it worth taking $10,000 out of my 401(k) for the down payment on a house? No, not at all. Putting that extra amount of money down on a house would save me just around $20,000. But keeping it in my retirement account will net me a lot more than that.
I popped on over to Bankrate.com's calculators and checked out the difference between how much I'd have saved for retirement if I started with what I have, or $10,000 less (for the down payment). Obviously, all the numbers are fudged a bit, I have no idea how much any of it will be worth, but with the numbers that were already filled in, by having $10,000 less in my retirement account I would end up with over $100,000 less when I retire.
If I adjust the annual rate of return down, it makes an even bigger impact in the percentage of money I lose over time. At half the return rate, it eats away almost half the money I have saved. Now, none of these calculations take into account any ongoing savings, because those numbers won't change one way or another based on this choice.
So, is it worth taking $10,000 out of my 401(k) for the down payment on a house? No, not at all. Putting that extra amount of money down on a house would save me just around $20,000. But keeping it in my retirement account will net me a lot more than that.
Saving for the future
So, here I am, 33 years old and thinking about retirement. You might think I'm too young to be thinking about retirement, and you couldn't be more wrong. Everyone, no matter how young should be working towards a comfortable retirement. ING has this cool tool that lets you enter a bit of information and compare your retirement savings against other people based on your age, gender, income, etc. So, I put in my information and come back with just over 1,000 people like me who filled out the form, and compared to them, I'm doing great. On average, people like me have barely socked away $10k for retirement, and I'm over double that amount.
To be honest, all the money I have set aside for retirement has been within the past year. The first, best, most important thing you can do to save for your retirement is start early. If I had started saving for retirement when I was first offered a 401(k) I would have so much more money waiting for me. A great article I found at Clark Howard's site compares what it takes to retire a millionaire. The later you start, the more you have to save every month to make up for it. If you save $2000 a year (that's only $167 a month) for 7 years starting at age 15, you will have over $1 million by the time you reach 65. If you keep saving for the full 50 years starting at 15, you will have over $2 million!
According to the site I need to save between $5,000 and $10,000 a year to be a millionaire when I want to retire. How in the world will I do that? Well, I haven't completely figured that out yet, but to start, if your company has a 401(k), use it! Max that sucker out as much as you can for your employer match (if there is one). I had the opportunity to do that many years ago when I was much younger and stupid with money. I chose not to contribute and in doing so wasted free money. If your employer offers a match on funds invested, even if it's only 50% match of up to 6% base salary, and you don't take full advantage of it, you're basically saying No to a raise of 3%!
Beyond your employer's 401(k) you have other investment options. Some are more complicated than others, and some require more money to start. Clark's site has a good list of investment options broken down by how much money you need to get started.
I chose to start a Roth IRA. I knew for a while that was what I wanted to do for my personal retirement account, the tax benefits are better than other investment options, and I liked the fact that I'd be using post-tax dollars to invest. I chose the Vanguard STAR because from the research I did, it appeared to do well historically, and I had heard good things about the fund.
The problem was, I didn't have $1,000 to start the fund, and I felt overwhelmed trying to save up that much money. It actually took me a couple years to finally start the fund after I had decided I was going to. Eventually, I ended up taking the money from my tax returns one year and used those to begin. I could have chosen a fund that required less money to start, but I felt that the Vanguard STAR was the best choice for me.
After getting the fund started, the rest was easy, I have the fund automatically taking money out every paycheck, and can simply increase that over time until I reach the maximum amount of money I can invest per year.
Everyone has to make their own decisions when it comes to retirement, but I urge anyone who isn't doing anything about it to start right away. The sooner you start saving, the more money you'll have!
To be honest, all the money I have set aside for retirement has been within the past year. The first, best, most important thing you can do to save for your retirement is start early. If I had started saving for retirement when I was first offered a 401(k) I would have so much more money waiting for me. A great article I found at Clark Howard's site compares what it takes to retire a millionaire. The later you start, the more you have to save every month to make up for it. If you save $2000 a year (that's only $167 a month) for 7 years starting at age 15, you will have over $1 million by the time you reach 65. If you keep saving for the full 50 years starting at 15, you will have over $2 million!
According to the site I need to save between $5,000 and $10,000 a year to be a millionaire when I want to retire. How in the world will I do that? Well, I haven't completely figured that out yet, but to start, if your company has a 401(k), use it! Max that sucker out as much as you can for your employer match (if there is one). I had the opportunity to do that many years ago when I was much younger and stupid with money. I chose not to contribute and in doing so wasted free money. If your employer offers a match on funds invested, even if it's only 50% match of up to 6% base salary, and you don't take full advantage of it, you're basically saying No to a raise of 3%!
Beyond your employer's 401(k) you have other investment options. Some are more complicated than others, and some require more money to start. Clark's site has a good list of investment options broken down by how much money you need to get started.
I chose to start a Roth IRA. I knew for a while that was what I wanted to do for my personal retirement account, the tax benefits are better than other investment options, and I liked the fact that I'd be using post-tax dollars to invest. I chose the Vanguard STAR because from the research I did, it appeared to do well historically, and I had heard good things about the fund.
The problem was, I didn't have $1,000 to start the fund, and I felt overwhelmed trying to save up that much money. It actually took me a couple years to finally start the fund after I had decided I was going to. Eventually, I ended up taking the money from my tax returns one year and used those to begin. I could have chosen a fund that required less money to start, but I felt that the Vanguard STAR was the best choice for me.
After getting the fund started, the rest was easy, I have the fund automatically taking money out every paycheck, and can simply increase that over time until I reach the maximum amount of money I can invest per year.
Everyone has to make their own decisions when it comes to retirement, but I urge anyone who isn't doing anything about it to start right away. The sooner you start saving, the more money you'll have!
Friday, January 13, 2012
How do I save money?
Now, this topic could be read in a couple of different ways, so I'll try to cover savings, money you stash away for a rainy day or specific purposed. I'll cover ways to actually save money day-to-day in another topic.
So, how do you start saving? It's really hard to do when you live paycheck to paycheck. By the time you get your paycheck, almost every dime from the last one is gone. There doesn't seem to be any wiggle room, how can you save money you don't have? Well, the best way is to never have the money to begin with. Do you really think you'll notice a huge difference if you get $25 less from your paycheck? I doubt it, because I don't. So, when you get paid, set aside $25 in a savings account.
If you get your checks direct deposited, it's even easier, because all you have to do is tell your employer to deposit the $25 in one account and the rest in another, you never see or touch it. Personally, I have 4 different savings account, and I sock away $25-50 into each one of those accounts each paycheck.
The next problem is, how do you not spend the money? You have this ever-increasing balance in a checking account, and you might get the urge to spend it, but it's really easy to keep from doing that. Make sure your savings account is hard to access. Using an online account does just that. You can still get money out when you need it but it takes a few days and some planning, so you'll be less inclined to move the money around.
One great online-only bank I highly recommend is INGDirect. If you're interested, I would gladly send you a referral to them, which will net you an easy $25 just for starting an account, just drop me a line and I'll get you a link.
Please don't forget to check out the free online book linked to the right, "You Need a Budget (the book)" where you'll get even more ideas and ways to start saving money.
So, how do you start saving? It's really hard to do when you live paycheck to paycheck. By the time you get your paycheck, almost every dime from the last one is gone. There doesn't seem to be any wiggle room, how can you save money you don't have? Well, the best way is to never have the money to begin with. Do you really think you'll notice a huge difference if you get $25 less from your paycheck? I doubt it, because I don't. So, when you get paid, set aside $25 in a savings account.
If you get your checks direct deposited, it's even easier, because all you have to do is tell your employer to deposit the $25 in one account and the rest in another, you never see or touch it. Personally, I have 4 different savings account, and I sock away $25-50 into each one of those accounts each paycheck.
The next problem is, how do you not spend the money? You have this ever-increasing balance in a checking account, and you might get the urge to spend it, but it's really easy to keep from doing that. Make sure your savings account is hard to access. Using an online account does just that. You can still get money out when you need it but it takes a few days and some planning, so you'll be less inclined to move the money around.
One great online-only bank I highly recommend is INGDirect. If you're interested, I would gladly send you a referral to them, which will net you an easy $25 just for starting an account, just drop me a line and I'll get you a link.
Please don't forget to check out the free online book linked to the right, "You Need a Budget (the book)" where you'll get even more ideas and ways to start saving money.
Thursday, January 12, 2012
Making a list, and checking it twice.
So after yesterday's post I kept thinking about how I want to track these houses I'm going to end up viewing. I know I have a lot of time before I'll actually need it, but I wanted to be prepared, so I've started throwing something together.
After much internal dialog, I came to the decision that I needed an electronic form of some sort for this. I considered creating a website or something to do this, but decided that was more work than I really wanted to do, so instead I decided to see what I could do with Google Docs. I threw together a preliminary form, with just a bit of basic fields, which I will expand on later. This way I'll be able to share what I've found with my readers as well as easily track this for myself.
So, without further ado, my results page. Now, there's no real information there, but you can see the test house (based loosely off the place I'm living now). I will keep updating that house as I add onto the form itself. Now, I don't want anyone but me adding data to this checklist, so I can't really link you guys to the form itself, but if you're really interested, drop me a line and I'll see what I can do.
Please also feel free to leave me a note with any suggestions or comments you have.
After much internal dialog, I came to the decision that I needed an electronic form of some sort for this. I considered creating a website or something to do this, but decided that was more work than I really wanted to do, so instead I decided to see what I could do with Google Docs. I threw together a preliminary form, with just a bit of basic fields, which I will expand on later. This way I'll be able to share what I've found with my readers as well as easily track this for myself.
So, without further ado, my results page. Now, there's no real information there, but you can see the test house (based loosely off the place I'm living now). I will keep updating that house as I add onto the form itself. Now, I don't want anyone but me adding data to this checklist, so I can't really link you guys to the form itself, but if you're really interested, drop me a line and I'll see what I can do.
Please also feel free to leave me a note with any suggestions or comments you have.
Wednesday, January 11, 2012
Running my credit report
So, my phone just dinged, and alerted me to the event I created to remind myself to run my credit report. I originally planned on running it and dealing with anything I found on it before talking to a loan officer about a mortgage, but after discussing it with a good friend, I decided to wait. I ran my credit history just over a year ago. I ran the reports for free, via the only truly free credit report site, AnnualCreditReport, which I found thanks to Clark Howard. I was able to get all three of my reports (one from each major reporting bureau, Experian, Transunion, and Equifax) with no hassle.
At the time, I looked them over, and everything on them was positive, except for one thing, which only appeared on one report. The item was a debt that was sent to collection a few years ago from an apartment complex I where had previously lived. Originally, I felt I needed to address that debt before looking into a loan, as it would make it harder for me. I wasn't sure whether I was going to try to contact them and address the debt, or first run the report to see if it was still on there. I'm certain it is, but because of my credit score, I figure paying that off could wait until after I consult with someone about a loan.
I may be going in blind when I don't run the report, but I will have a few months between when I go to talk to a loan officer and when I will actually need a loan for a house. That time will allow me to address any issues they feel need to be addressed.
Now, the fact that it was over a year since I last ran my credit history may cause some concern, there's no telling what's new on there. I know that I haven't missed a single payment on any of my debt. I have opened very little new credit. And I don't think there have been very many requests for my history in that time period. There have been a few instances where my personal information may have been leaked because of things that happened to companies I've had dealings with (Sony, with their Playstation thing for one, and there were others that don't come to mind right away). But I've had no indication that anything has happened, so for now I'm going to live in peaceful ignorance. Obviously, at the first hint of anything from a loan officer I will be running my credit report.
Another thing to note, I am lucky when it comes to this, that I live in Georgia. The state allows for you to run an extra credit report from each agency (beyond the mandatory free one from the Feds) for free once per year. So if I need to, I can run it twice at no cost.
At the time, I looked them over, and everything on them was positive, except for one thing, which only appeared on one report. The item was a debt that was sent to collection a few years ago from an apartment complex I where had previously lived. Originally, I felt I needed to address that debt before looking into a loan, as it would make it harder for me. I wasn't sure whether I was going to try to contact them and address the debt, or first run the report to see if it was still on there. I'm certain it is, but because of my credit score, I figure paying that off could wait until after I consult with someone about a loan.
I may be going in blind when I don't run the report, but I will have a few months between when I go to talk to a loan officer and when I will actually need a loan for a house. That time will allow me to address any issues they feel need to be addressed.
Now, the fact that it was over a year since I last ran my credit history may cause some concern, there's no telling what's new on there. I know that I haven't missed a single payment on any of my debt. I have opened very little new credit. And I don't think there have been very many requests for my history in that time period. There have been a few instances where my personal information may have been leaked because of things that happened to companies I've had dealings with (Sony, with their Playstation thing for one, and there were others that don't come to mind right away). But I've had no indication that anything has happened, so for now I'm going to live in peaceful ignorance. Obviously, at the first hint of anything from a loan officer I will be running my credit report.
Another thing to note, I am lucky when it comes to this, that I live in Georgia. The state allows for you to run an extra credit report from each agency (beyond the mandatory free one from the Feds) for free once per year. So if I need to, I can run it twice at no cost.
What do I want in a house?
Today I'd like to discuss what I want in a new house. I'm pretty sure everyone has just about the same ideas, but this is my blog, so I'm going to share. I've discussed this topic with my son, to get his input and possibly come up with some ideas I might have missed, and he's been rather unhelpful.
I'll start with the outside of the house. Obviously, I want it to look good, the house itself. I'd like a large back and front yard, rather flat (especially the driveway) with very few trees. I would like a deck, or patio, or something in the back, and even a porch on the front would be great.
I would like a basement, it doesn't have to be finished, but I don't want like a root cellar. One big room, or many smaller unfinished rooms would be ok. A garage would also be a big plus, I'd like to actually park my car inside for a change. And if the garage has an automatic door opened, I'd be in heaven. I don't really have a preference as to whether the house has 1 or two stories, but I do want a lot of space. Oh, and real fireplace would be nice.
I'd love to find a house that has at least 3 bedrooms, 2+ baths, a dining room, family room, living room, office, and maybe some more extra rooms. I'd love for the master bath to be really big, maybe one of those with the separate shower, and whirlpool bath.
I'm not too picky on colors, but I'd absolutely love hardwood floors all over the house. The kitchen needs to be roomy, enough space for 2-3 people to work in without getting too much in each others' way.
The neighborhood has to be decent, nothing too upscale though. I'd like to be off the beaten path, but no more than 3-4 turns into any subdivision. And that has to have a good route to get me to work. The neighboring houses also have to look decent.
Now, I know I'd be lucky to get even half of that for the price I'm looking to pay, but if I don't have ideals and goals, I'll sell myself short. Obviously, when it comes to finding the right house, I'll have to make sacrifices and compromise on some things. But if I don't have a checklist of all the things I want, how can I compare one house to another?
So, what I'm going to do is actually put this all into a checklist, and then I'll bring that with me to every house I see, and I'll show you guys the results, along with a nice little vlog from within the house itself. Mind you, I won't be going to see any houses anytime soon, but when I do, there will be some entertainment for you.
I'll start with the outside of the house. Obviously, I want it to look good, the house itself. I'd like a large back and front yard, rather flat (especially the driveway) with very few trees. I would like a deck, or patio, or something in the back, and even a porch on the front would be great.
I would like a basement, it doesn't have to be finished, but I don't want like a root cellar. One big room, or many smaller unfinished rooms would be ok. A garage would also be a big plus, I'd like to actually park my car inside for a change. And if the garage has an automatic door opened, I'd be in heaven. I don't really have a preference as to whether the house has 1 or two stories, but I do want a lot of space. Oh, and real fireplace would be nice.
I'd love to find a house that has at least 3 bedrooms, 2+ baths, a dining room, family room, living room, office, and maybe some more extra rooms. I'd love for the master bath to be really big, maybe one of those with the separate shower, and whirlpool bath.
I'm not too picky on colors, but I'd absolutely love hardwood floors all over the house. The kitchen needs to be roomy, enough space for 2-3 people to work in without getting too much in each others' way.
The neighborhood has to be decent, nothing too upscale though. I'd like to be off the beaten path, but no more than 3-4 turns into any subdivision. And that has to have a good route to get me to work. The neighboring houses also have to look decent.
Now, I know I'd be lucky to get even half of that for the price I'm looking to pay, but if I don't have ideals and goals, I'll sell myself short. Obviously, when it comes to finding the right house, I'll have to make sacrifices and compromise on some things. But if I don't have a checklist of all the things I want, how can I compare one house to another?
So, what I'm going to do is actually put this all into a checklist, and then I'll bring that with me to every house I see, and I'll show you guys the results, along with a nice little vlog from within the house itself. Mind you, I won't be going to see any houses anytime soon, but when I do, there will be some entertainment for you.
Tuesday, January 10, 2012
Where I am now
I'd like to give you guys an idea of where I am now, and I hope to possibly give you one of these posts every week.
Right now I have $358 in my FSA left from last year. I sent an e-mail off to my HR rep today to see what the cut-off date is for expenses that can be submitted for the 2011 period, but have not heard back.
I have $628.54 (two accounts, both savings, one with HSBC and the other a local credit union) set aside for the down payment on whatever house I buy.
I have not contacted any lenders yet (nor will I until after I file my taxes) about a mortgage.
I am still waiting for my company to release our electronic W-2s so I can file my taxes for 2011.
I have a 772 score with Credit Sesame.
Right now I have $358 in my FSA left from last year. I sent an e-mail off to my HR rep today to see what the cut-off date is for expenses that can be submitted for the 2011 period, but have not heard back.
I have $628.54 (two accounts, both savings, one with HSBC and the other a local credit union) set aside for the down payment on whatever house I buy.
I have not contacted any lenders yet (nor will I until after I file my taxes) about a mortgage.
I am still waiting for my company to release our electronic W-2s so I can file my taxes for 2011.
I have a 772 score with Credit Sesame.
The Consumerist Review
What can I say about The Consumerist that you don't already know? What, you've never heard of The Consumerist? Then let me start from the beginning. They are a sister publication of Consumer Reports. They report new stories that relate to consumer and financial matters, as well as help get the word out from their reader base about things of interest. They've helped a ton of people find closure on issues they've had with large corporations and their customer non-service departments. You can find warnings about new scams and viruses, as well has helpful hints on how to save for the future.
I've found many great resources on this site for securing my financial future, as well as hours of entertainment reading articles about the follies of people and companies.
I've found many great resources on this site for securing my financial future, as well as hours of entertainment reading articles about the follies of people and companies.
You Need a Budget (the book) Review
Now, I'm not personally familiar with this program, but they have a book available to read free of charge online, and it is wonderful! I read the whole thing, and it basically describes the exact process I use for managing my money. I had already put a process in place, using Quicken Online (which is unfortunately no longer available) that basically follows the principals of the book to a T. For anyone who is in need of a budget, I highly recommend you start by reading the free book.
The software associated with the book does offer a free 34 day full-featured demo. The software integrates all the best things you would want from a budgeting standpoint, including tracking your spending and savings, and planning future expenses.
The software associated with the book does offer a free 34 day full-featured demo. The software integrates all the best things you would want from a budgeting standpoint, including tracking your spending and savings, and planning future expenses.
Mint Review
Mint.com has been a big name in online budgeting tools. Personally, I don't use it a lot, but when I do I am amazed at what I find. This is the very best tool to figure out where you spend your money. They take the data from your bank accounts and give you a wonderful visual indicator as to where you spend your money. You can break down expenses into any number of categories, and the site does a good job of figuring out what categories most expenses fall into automatically.
Mint also offers a smartphone app (Available for Android and iPhone) that will let you see where all your money is and where it is all going. I use the app all the time before spending money to make sure I have enough to cover expenses from the account I want to use.
Mint also offers a smartphone app (Available for Android and iPhone) that will let you see where all your money is and where it is all going. I use the app all the time before spending money to make sure I have enough to cover expenses from the account I want to use.
Bankrate Review
Bankrate.com is THE site to use for all of your loan questions. The site is chock full of information about current loan rates and trends as well as numerous calculators to help you determine what you can afford, or how you can save money. Thanks to this site, I have a decent understanding of the mortgage process, as well as how much house I can afford and how much it will cost me. Using their calculators, I've determined that I could easily buy a better house than I thought I could afford for less than I'm paying in rent now, and still pay it off nearly a decade before the loan is due.
Even with all the information, they also give you access to an untold amount of lenders who are eager to help prospective customers. Once I've gotten my tax return, and am ready to start the pre-approval process for my mortgage, Bankrate will be one of the sites I start with.
Even with all the information, they also give you access to an untold amount of lenders who are eager to help prospective customers. Once I've gotten my tax return, and am ready to start the pre-approval process for my mortgage, Bankrate will be one of the sites I start with.
Yodlee Review
The name may sound funny, but the Yodlee is one of the biggest tools I have in managing my money. The site will allow you to enter your online banking credentials and download your transactions, showing you were your money is, and where it's going. That in an of itself is great, but what has really helped me is planning ahead. The site will allow you to add future transactions (recurring and one-time) and see how they will affect you. Some of you may be familiar with this concept if you ever used Quicken Online, but since the site shut down and Mint took its place (I'll review Mint separately), Yodlee became the best site for this kind of financial forecasting. Using current bills you can estimate what your future bills will be, and have a better understanding of how much money you actually have available. Before I started using a service like this, I would never know how much money I actually had free, and was constantly over-spending. Now, with the help of this tool I can keep track of all of my accounts in one place and plan for the future.
Clark Howard is the man!
Every chance I get, I listen to Clark Howard. He is a great resource for financial advice and tips, and he's fairly entertaining. His site is full of links and suggestions to get your financial situation under control. It is all thanks to him that I am where I am now, with my credit debt manageable and living within my means. I have used his site a lot, and will continue to use it as an invaluable resource in researching the process of buying my first house.
Credit Sesame Review
I figure I'd start off reviewing my suggested links with Credit Sesame. This site will allow you to track your current rating. It gives you a score on par with your FICO score, ranging from 300-850, although I do not believe the score it gives is actually your FICO score. It will update you monthly on your score, as well as changes over time in your score. With this site, it will also give you recommendations and ideas on how to save money and improve your credit. It also gives you a list of factors that may impact your score and possible ways to improve.
Along with all this, they offer badges, based on your credit, that you can share to "promote your financial responsibility and showcase your good credit standing". Unfortunately, at this time the sharing isn't working so I can't show you my badge, but when it's back up and working, you'll be able to see I've earned the Excellent Badge.
Along with all this, they offer badges, based on your credit, that you can share to "promote your financial responsibility and showcase your good credit standing". Unfortunately, at this time the sharing isn't working so I can't show you my badge, but when it's back up and working, you'll be able to see I've earned the Excellent Badge.
The Beginning
Hello, my name is Loren and I'm starting a new financial blog. Currently, I'm just beginning the process of buying a house. I'm at the very beginning stages, and I'm going to try to be as transparent about this process as I can. I'll also be going over other financial related stuff on this blog, along with helpful links and tips I come across.
I'll begin with an explanation of where I am as of now. I have not begun more than just trying to get my ducks in a row. I ran a credit report on all three bureaus just over a year ago, and all of them came back with good stuff. I did have one negative thing on a single report from a residence over 5 years ago. It is a debt that went to collections on cleanup costs for an apartment. I won't bore you with the details of why I owe the money or why I didn't pay (Unless you want to hear about it), but since then I've had nothing but on-time payments. I've increased my overall credit since the report was run, and I've kept my debt-to-credit ratio at a decent level.
Currently I am paying around $800 in rent to my parents, which is basically paying their mortgage payment on the house I'm living in. I did some research at BankRate.com and determined that I could hope for a rate around 4% and with that I could easily afford a $100,000 home with a 30 year mortgage.
I've also been watching my credit score using CreditSesame.com. The site will keep your credit score up to date, and it uses the same 300-850 scoring as the real FICO scoring system does, but I don't think what they give you is a true FICO score. Currently my score is 772, which has earned me their Excellent Credit Badge.
I'll begin with an explanation of where I am as of now. I have not begun more than just trying to get my ducks in a row. I ran a credit report on all three bureaus just over a year ago, and all of them came back with good stuff. I did have one negative thing on a single report from a residence over 5 years ago. It is a debt that went to collections on cleanup costs for an apartment. I won't bore you with the details of why I owe the money or why I didn't pay (Unless you want to hear about it), but since then I've had nothing but on-time payments. I've increased my overall credit since the report was run, and I've kept my debt-to-credit ratio at a decent level.
Currently I am paying around $800 in rent to my parents, which is basically paying their mortgage payment on the house I'm living in. I did some research at BankRate.com and determined that I could hope for a rate around 4% and with that I could easily afford a $100,000 home with a 30 year mortgage.
I've also been watching my credit score using CreditSesame.com. The site will keep your credit score up to date, and it uses the same 300-850 scoring as the real FICO scoring system does, but I don't think what they give you is a true FICO score. Currently my score is 772, which has earned me their Excellent Credit Badge.
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