How To Make The Home Buying Decision Easier

By Gregg Hall

Purchasing a home can be a very big decision. There are many things that you need to consider when purchasing a home. Nothing about this process is easy. First you have to decide where you want to be located, and what you want your house to have. A few questions you need to think about are: do we want a garage, how many bedrooms and bathrooms do you want, do you want a basement, and how big of a yard do we want? You will also need to decide which of these items you are willing to compromise on.

If you are serious about purchasing a new house you may also want to start shopping around for a bank where you can get a mortgage that you like. Once you find your house you want to purchase you will not want to waste any time getting moved in.

Many banks offer you the option of pre qualification. With this you will know how much you can spend on a house based on how much your loan can be. Banks take into consideration your income and your debt to determine how much they think you can afford for a house payment. This may be something you want to know before you start getting too excited about a house. You may have a limit to how much you can spend, and this could save you time when looking at houses.

The bank will also run a credit check to see how your credit is. Your credit score is based on how good you are at paying your bills on time. It also allows the bank to see who else you are in debt to and how much you are in debt. This may also affect your loan amount. If you have good credit the bank may be more willing to work with you on a loan amount.

You will also want to check around to see which bank can get you a better interest rate. Some banks can offer better interest rates than others. Your interest rate may also depend on your credit score. You want to find the bank that will give you the lowest interest rate, as this will also affect your payment. Your interest affects how much you actually end up paying for your house by the time it is paid off. You will also need to decide if you want a fixed interest rate or not. Some banks offer you a lower interest rate to begin with, and then increase the rate later on. You will want to check if this type of interest rate has a limit to how high it can go.

Not all banks can offer you the same types of loans. If you would like a first time homebuyer's loan you will need to talk to the banks that offer this type of loan. They are loans that are backed by government. Loans that are not backed are called conventional loans.

You can also get loans that require no or low down payments. Closing costs are another expense you need to consider. Some banks charge more than others and some offer no closing costs.

You have many things to consider when choosing a bank for your loan. Make sure you do not limit yourself, shop around before you make your decision. Find a bank that is willing to work with you. You need to keep in mind what kind of loan you want, what kind of interest rate and payment works for you, and how much you have for down payment and closing costs.


Gregg Hall is an author living in Navarre Florida. Find more about this as well as Shop 4 Mortgage Rates at http://www.shop4mortgagerates.com
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Study Shows Volunteer Tax Preparers Are Often Wrong

By Martin Lukac

If you ask a volunteer to help you prepare your tax return, you are risking errors in your return.

According to the Treasury Inspector General for Tax Administration, volunteers run a 6 in 10 chance of errors, only a slight improvement over last year.

The Inspector General asked volunteers to prepare tax returns for two hypothetical taxpayers. Only 39% of this year's returns were prepared correctly. Last year, 34% were correct.

The IRS has been encouraging taxpayers to seek tax filing assistance at volunteer centers, instead of from the IRS. The centers have been developed to assist low- to moderate-income, elderly and disabled filers. They also assist taxpayers with limited English. The IRS provides training and support to volunteer centers that are run by community based organizations.

The first scenario that the volunteers faced was a divorced taxpayer with a 10-year old child. The taxpayer worked as a store clerk and received child support. The second scenario was a single taxpayer who lived with her sister and only had her three children during the summer months.

In most cases, the errors were in the taxpayers' favor. In general, the taxpayers would have gotten $31,828 as a group more than they should have.

There were a few cases where the taxpayers lost out. Those taxpayers paid out $4,411 more in taxes than was necessary.

The auditors noted that volunteers did not always use their interview sheets to get the basic taxpayer information from the taxpayer before they prepared the return. In some cases, taxpayers left many answers blank.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!
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Where Can You Get Qualified Financial Help In Retiremen

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By Larry Klein

The needs of people in retirement or about to retiree are
different than those of baby boomers. Yet all you see in
articles is advice for baby boomers on how to prepare for
retirement. What about help for those age 60+ who have already
cashed in their chips or about to do so?

Good news. There has been increased education, albeit slowly,
for financial advisors to help people in retirement. But be
careful about the several designations you may see.

The most widely held senior designation, Certified Senior
Advisor (CSA) is not a financial training at all. Although many
financial professionals gain this designation, so do nurses,
gerontologists, funeral home directors and others dealing with
older people. The designation is really a training in
communication skills and issues of aging and not in financial
issues.

The Certified Retirement Financial Advisor designation (CRFA)
is ONLY for financial professionals that have at least 2 years
experience in financial services. The enrollees seek to polish
their retiree-specific financial knowledge and the course
covers every aspect of financial concerns to someone in their
retirement years: how to avoid tax on social security income,
how to liquidate assets for the lowest or zero capital gains
tax, how to utilize section 72 rules for early retirees who
need to tap their retirement funds before age 59 ½, IRS
sections 1035 and 1031 exchanges for tax deferral, Roth IRA
conversions, how to minimize taxes on IRA distributions, how to
build retiree portfolios for greater secure income, how to
create low risk equity portfolios, training in estate planning
and asset protection, long term care planning and related tax
issues, trusts, advance directives, integration of your
retirement plan and estate plan, asset titling issues,
beneficiary selection for retirement accounts and other assets.
Fifteen hours of continuing education is required annually to
maintain the designation.

The other legitimate designation is Chartered Advisor for
Senior Living (CASL). However, of the 5 courses that graduates
must complete, 2 of them are general and not retiree specific.
Fifteen hours of continuing education is required every 2 years
to maintain the designation.

Be cautious of any other designations held by a financial
advisor who contends that the designation has prepared him to
give appropriate financial advice for people in retirement.
There are several designations that have no substance and are
programs designed to make a financial sales person look like a
professional.

Here are some simple questions you can ask a retirement
planner. If the professional cannot answer them easily, then
move on:

How can IRS section 1031 help me (it helps people divest real
estate without current taxation)

What is the lowest possible rate on capital gains that I could
possibly qualify for (5% currently, 0% starting in 2008)

Can anyone convert their IRA to a Roth IRA (their modified
adjusted gross income must be under $100,000 currently)

If I want to leave my IRA to my 3 children, do I need to split
it into 3 accounts (no, the children can split the IRA after
your death into 3 accounts)

Will a living trust help me save taxes (no—the benefits of a
living trust that cannot be accomplished otherwise is the
avoidance of probate and privacy)

What’s the difference between an annuitant driven and owner
driven annuity (all annuities are owner driven—if the owner
dies, the owners beneficiary gets the proceeds)

Can I lose money with an equity indexed annuity (yes, if you
withdraw funds during the surrender period, the surrender
charge could be larger than anything you have earned resulting
in a loss)

Why shouldn’t I put my sons name on my accounts as joint tenant
so he inherits them directly if I die (you can be deemed to have
given a gift which may have tax consequences and you have
exposed jointly held assets to your son’s creditors).

About the Author:Larry Klein CPA/PFS, CFP(r) is president of the Society of Certified Retirement Financial Advisors. He has several educational web sites for retirees linked from Retirement Financial Advisor.
Source: http://www.isnare.com

The Link Between Your Credit History and Your Insurance Premium

By Joseph Kenny

Did you know your credit history and score could have a tremendous impact on your ability to obtain insurance and how much you pay for it? Many consumers are not aware of this link and because of it they are often in for quite a surprise when the time comes to take out a new insurance policy.

Insurance carriers are becomingly increasingly aware that a tendency to pay other bills late may mean that you will pay your insurance premiums late as well. As a result, more and more carriers are opting to run your credit history before providing a quote. In some cases, a poor credit rating may mean you pay more for your insurance while in other cases it could mean you may not be able to obtain insurance at all.

Just how bad does your credit have to be to interfere with your ability to obtain insurance? It really depends on the guidelines used by that individual insurance company; however, in some cases, missing just as few as two credit card payments could mean you might have problems. In some instances, missing just two payments could mean you premium might be doubled.

You are not necessarily exempt from this type of problem even if you’ve been with the company for a long period of time or if you’ve had a good history in terms of losses, either. Some consumers have been rudely surprised to learn their policy has been cancelled due to credit score problems even though they had previously had a long relationship with their insurance carrier.

How can insurance companies do this, you might ask. As previously stated one reason is that many companies feel that you may have an increased tendency to pay your premiums late. Other companies justify the practice on the basis that if you’re irresponsible with money you may also be irresponsible with other aspects of your life. Some statistics serve to back up this theory, indicating the thought that individuals with poor money management skills also handle other areas of their life with less responsibility, such as driving or even taking care of their home.

Of course this doesn’t take into consideration the number of people who have a poor credit score due to the fact they have experienced financial difficulties rather than possess poor money management skills.

Is there anything you can do about this practice? Not really. If you have been with the company for a long period of time, you could try protesting it, but your chances of winning aren’t very good.

Ideally, it’s best to try to get your credit score in shape by running it yourself and making sure there are no errors on there to drag down your score. Then concentrate on raising it by paying down other debts and paying your bills on time. You may have to live with a higher premium for awhile but the good news is that when your credit score starts to rise your insurance premiums should go down.


Joe Kenny writes for CardGuide.co.uk, with the latest 0% balance transfers, and more credit info in the credit card guide.Visit today: http://www.cardguide.co.uk/
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How To Erase Bad Credit

By Nic Ricciuti

A person's credit record has substantial influence on many aspects of a their life. Aside from the obvious financial influence, a person's credit history can sway major instances such as buying a home, purchasing a car, applying for credit cards and in some cases, obtaining a job. It is crucial to maintain a good credit rating to avoid harmful effects on certain circumstances.

If you have a bad credit record, it is imperative to take the necessary steps to fix this problem. A wise first step is to consult a credit counseling agency to guide you towards your way to repaired credit. These organizations have people on staff who are trained and experienced in the field of credit. When turning to such agencies for assistance, it is important to remember that they are there to assist you in fixing your credit problem, not to actually fix it for you. Some work is necessary in achieving your goal of a good credit standing and although a credit agency may be a great help, they cannot do the work for you.

Another sensible step in correcting bad credit is to obtain your credit report. This is a simple, yet effective way to give you knowledge about your credit and let you know exactly what position you are in. Contact the credit bureaus, Trans Union, Experian and Equifax, and ask for your credit score. Many times, incorrect information has been added to your credit report further damaging your score. If you find erroneous data in your credit report, contact the credit bureau in writing immediately. Let them know of the error and the corrective action which should be taken.

The best way to erase bad credit is to pay off all your debts. In most cases, this is easier said than done. After all, if you had the funds to pay all your debts, then most would not be in this situation to begin with. However, there are other effective ways that will lead you to a debt-free life with a positive credit rating. First and foremost, make a budget. The easiest way of doing this is to take the time to write down a complete list of expenses. This list must include every cost from day to day expenses to monthly bills. Then, compare this list to your income. If your expenses are more than your income, you must cut back on expenses in any way possible.

Other important steps to take to repair bad credit is to be sure to make all payments on time. If you are able to prove income stability and payment regularity to lenders, this can help fix bad credit in as little as two or three years. It is also wise to reduce the number of credit cards you use or carry. This will decrease the temptation of over-spending. Avoid bankruptcy, tax liens and collections at all costs. Some people might even opt to ask a friend or relative to co-sign a small loan in order to pay past debts.

Another good way to repair bad credit is to add positive reports to your credit history. Some ways of doing this is to open a new savings account. Another way is to obtain a low interest credit card and maintain a low balance. You can also add positive reports by refinancing with a home equity loan in order to pay old debts.

Although possible to repair bad credit, it takes time, sometimes as long as five to seven years. Though your credit score may rise slightly while practicing these good credit followings, it takes time to rectify the damage that has been done over the years. By following the techniques listed above, you will be on your way to having a good credit report.

Nic Ricciuti is a successful freelance writer and website publisher of badcredit-info.net. The site offers tips and articles on Erasing Bad Credit and other free bad credit information.
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Choosing a College Savings Plan

By Jonathon Hardcastle

There are two basic types of tax-free college savings plans, the Coverdell educational savings account and the 529 savings account. Each has advantages and disadvantages depending on the situation of the individual family.

529 college savings plans allow parents, and in some cases grandparents and other family members, to contribute tax-deferred money to a savings account earmarked for college. The money gains tax-free interest and there is no tax assessed on the principle if it is withdrawn to cover eligible college expenses. The current tax rules will be in effect until 2010, but even if Congress does not reauthorize that section of the tax code, tax will still only be applied to the earnings on the account, not the principle.

Every state now offers a 529 plan and some offer more than one type. For example, some states like Florida offer prepaid plans that lock in today's tuition rates and also offer traditional savings plans. It is a misconception that signing up for a state-run college savings program requires your child to attend college in that state. All states have reciprocal agreements allowing participants to choose from a huge number of colleges all over the country. If you have chosen a prepaid plan, however, your child will only receive tuition at the rate you agreed to when you signed up regardless of what college they attend.

Coverdell education savings accounts work in a similar way to Roth IRA accounts. Parents can deposit after-tax income into an account to save for college or private school (one of the unique benefits of a Coverdell account). Any interest on the account is tax-free if withdrawn for eligible educational expenses. However, unlike 529 plans, Coverdell accounts are capped at $2,000 per child. Even if the child has accounts established by grandparents or other family members, the total invested in the child's name cannot exceed $2,000. For this reason, many families choose both a 529 plan and a Coverdell plan.

Also, since Coverdell accounts are held in the child's name, any funds not used for college will eventually be distributed to your child, not back to you. This is the opposite of 529 college savings accounts which are held in the parent's name and can be transferred to other family members.

Finally, the rules covering 529 plans are easier to understand than those covering Coverdell accounts. Families considering opening a Coverdell account should consider consulting with a tax professional to be sure they understand all the rules and tax implications.


Jonathon Hardcastle writes articles on many topics including Finance, Real Estate, and Business
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