Get Your Finances in Order: To-Do List

Get Your Finances in Order: To-Do List

Money, Money, Money

photo © 2009 Daniel Borman | more info (via: Wylio)

  
1. Develop a household budget. Instead of creating a budget of what you’d like to spend, use receipts to create a budget that reflects your actual spending habits over the last several months. This approach will factor in unexpected expenses, such as car repairs, as well as predictable costs such as rent, utility bills, and groceries.

2. Reduce your debt. Lenders generally look for a total debt load of no more than 36 percent of income. This figure includes your mortgage, which typically ranges between 25 and 28 percent of your net household income. So you need to get monthly payments on the rest of your installment debt – car loans, student loans, and revolving balances on credit cards – down to between 8 and 10 percent of your net monthly income.
3. Look for ways to save. You probably know how much you spend on rent and utilities, but little expenses add up, too. Try writing down everything you spend for one month. You’ll probably spot some great ways to save, whether it’s cutting out that morning trip to Starbucks or eating dinner at home more often.

4. Increase your income. Now’s the time to ask for a raise! If that’s not an option, you may want to consider taking on a second job to get your income at a level high enough to qualify for the home you want.

5. Save for a down payment. Designate a certain amount of money each month to put away in your savings account. Although it’s possible to get a mortgage with only 5 percent down, or even less, you can usually get a better rate if you put down a larger percentage of the total purchase. Aim for a 20 percent down payment.
6. Keep your job. While you don’t need to be in the same job forever to qualify for a home loan, having a job for less than two years may mean you have to pay a higher interest rate.

7. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills, too. Pay off the entire balance promptly.

It is a GREAT time to buy with prices down, interest rates low and the tax benefits of Home Ownership! It is important to understand the home buying process before you start looking at homes so that you know what to expect. I explain the entire process and provide my new buyers with a buyer booklet outlining the steps and what you need to know. If you are looking to buy a home locally or looking to relocate to the Triangle Area of North Carolina – Cary, Apex, Raleigh, Morrisville, Chapel Hill or another town, I would love to help you find your new home. Give me a call with any questions or visit my website.

I strive to help people get from where they are to where they want to be.

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About K.C. McLaughlin

K.C. McLaughlin, REALTOR®, e-PRO® with RE/MAX United My mission is to provide every client with an experience so exceptional that I'll be considered the only one who does what I do. I am highly organized and knowledgeable about the process and the marketplace, I'll guide you through the sequence of steps you'll need to take. Whether you're buying or selling a home, I aim to establish open communication and an information-sharing collaboration. Truly understanding your needs and desires enables me to make effective buy/sell connections for you. As your partner in real estate, I make it my business to stay ahead of the curve and keep you informed about what to expect and when. I'll equip you with reference materials, decision-making devices, and lists of technical service providers and expert professional resources. My long career in computer technology, software and marketing honed my skills in working with people, efficient process management, flexibility, creative problem solving; and my ability to focus if things begin to break down. I'm well versed in the strategies and methodologies needed for an effective, targeted campaign aimed at buying or selling a property and realizing the most positive cost/value outcome. These tools have provided a firm platform on which to build my second, and much enjoyed, career in real estate. -------------------------------------------------------------------------------- Education B.S. Business Management at Stony Brook University M.S. Management and Policy at Stony Brook University Experience RE/Max United - The Triangle Team Broker Associate/ REALTOR® 35 Years of Experience Among Triangle Team Members 20 Years Managerial, Training and Customer Service/Support Member of the National Association of Realtors Member of the North Carolina Association of Realtors Member of the Raleigh Regional Association of Realtors Testimonials "It is truly a pleasure to work with K.C. She is a very patient and kind person who really went out of her way to help us find our new home. She is not pushy and just out "looking to make a sale." K.C. took an interest in what my wife and I desired in a home, and then made sure it happened. We would definitely use K.C. again to sell or purchase another home. She is fantastic!" Mike and Lynn Di Ruscio
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