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June 29, 2017

7 Tips on How to Buy a Luxury Home

luxury home buyingLooking for a luxury home or condo? Don’t know how to find the best deal. The following 7 tips can help you buy your dream home.

1. Get familiar with the search process

Many luxury homes do not protect the privacy of their sellers. Those properties are quite often found later through the personal connections of Realtors. The large search engines don’t always cover everything you need. So, you may need to check a lot of online sources when searching for a real estate.

2. Go beyond the photos

Do not dismiss a real estate based on its front elevation photographs. The large homes and condos are often not photogenic. Your best bet would be to see a property in person. It’s also a good idea to do some search on Google Earth. This computer program can help you explore the property itself and its vicinity as well. This way you will be able to see what is around the home you’re looking for. You can also use the online search tools when searching for the luxurious properties. If you’re looking for a real estate within Hilton Head Island, make use of such a tool to find the best sea pines real estate.

3. Contact a local expert and reliable adviser

Once you’ve determined the location of your property, you should contact a buyer agent. A local expert can provide you with important info about the property you want to buy. Some high-end areas have a controlled access with the fewer open houses. Sometimes, you will have to make a few appointments to get access. Besides a local buyer agent, you should also hire a reliable Realtor for some suggestions.

4. Gather your financial documents

It is critical to document everything before heading to the high-end market. Pay attention to financial documentation in particular. People who are making a lot of money have an accountant or a manager to shelter their money.

5. Bank on your relationship

The banks keep the portfolios of their clients for many years. So make sure to go to the bank(s) you have the relationships with. It’s good to know the difference between the prequalification letter and pre-approval letter.

6. Don’t forget your title insurance

The title insurances ensure that you’re protected against possible issues that may occur. Before closing time, you need to take a look at the exceptions page. This page is included in the title insurance, but many people are not aware of it.

7. Get familiar with co-ops and condos

You need to know in advance what to expect with condominiums and cooperatives. Your attorney should represent you for condos and co-ops when you enter the field. The attorney should also do a thorough research on the financial viability of the real estate you are interested in. There is always a room to negotiate before you make an offer. Let your agent investigate the comparable real estates that have recently sold in that area. That will help you get the more affordable closing price.

Look into the future. Try to find out what buildings are planned around your property in the near future. And be aware of the timeline. Don’t tie your money up for an extended period of time. You may miss a good opportunity due to the construction delays.

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April 14, 2017

Finance Your Travel Smartly

smart finance tripHoliday plans are often spontaneous and happen when you’re desperately in need of a break from the monotony of your life. Suppose you are planning a family vacation when your spouse or kids have holidays but your funds are a bit tied up. Should you postpone your vacation till you have the money? Absolutely not! Instead of being disheartened by thinking that you do not have sufficient funds at the moment, you can simply plan a vacation with a personal loan.

You can finance your travel smartly by availing a personal loan. Based on your credit history& income source, the eligibility and amount will be determined and accordingly the tenure and repayment conditions for the loan will be laid out. Salaried individuals find it easier to avail personal loans as compared to self-employed businessmen. However, if you have filed tax returns & all company documents are in place, even self-employed individuals can avail a personal loan without providing collateral.

An online personal loan is extremely easy to avail and rarely require any form of collateral. If you meet the eligibility criteria set by the lending institutions and have the necessary documentation in place, there is a definite chance your application will get an approval. In fact, these days online personal loans can be completely paperless with online submission of scanned id and residence proof.

How do personal loans compare with credit card EMIs? There are tax benefits for personal loans. You can claim income tax benefit under Section 24 on personal loan which offers an overall interest benefit of 1.5 lacs for tax exemption. In addition, extending your credit card to finance your travel is not a good idea as they have predefined credit limits that may not suffice the amount you need for your travel.

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January 1, 2017

7 Tips for Families to Become Debt Free

debt attackMost families have accumulated a significant amount of debt due to auto loans or credit cards that have been used over the years. Acquiring debt can make it easy to feel limited with your finances, which can make it difficult to make ends meet. To become debt-free and obtain financial freedom, there are a few important steps to take.

1. Create a Budget

Creating a budget will allow you to determine how much money you can afford to put towards your debt each month. Calculate your household income and write down your expenses, which will allow you to get an idea of how much debt you will pay off with each paycheck.

2. Establish Goals

Establishing goals to pay off your debt in a specific time frame will make it easier to stay on track and avoid losing focus with paying off the debt in full.

3. Cut Coupons

You can save more money each month to put towards your debt by cutting coupons in the newspaper for food and household items that you already purchase. Combine manufacturer coupons and store coupons to double your savings.

4. Pay Off Lowest Balances First

Paying off the accounts that have the lowest balance first, which will allow you to stay motivated and will reduce the amount of money that you pay in interest each month. There are some credit repair companies that can help you consolidate and repay your loans.

5. Avoid Eating Out

Reduce the money that you spend each month by making your meals at home and avoid dining out when you’re on the go. Prepare meals and have easy snacks on hand to take to work and stay within your food budget.

6. Shop at Secondhand Stores

Shopping for clothing or goods at secondhand stores can allow you to avoid paying full price for products that your family may need when it comes to purchasing school clothes or work attire.

7. Use the Envelope System

Convert your paycheck into cash and transfer it into different envelopes to avoid overspending and track how much you have left to spend. This will allow you to become more conscious of how much money you spend without relying on a credit or debit card.

Although it can be challenging to pay off debt as a family, there are several lifestyle changes that can be made to make progress with the money that you owe. By establishing rules with your finances and making goals, you can track the money that you pay off to ensure that you obtain freedom in a realistic time frame.

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December 14, 2016

How is your Home Loan Eligibility Impacted by CIBIL Score?

home loan appliedWhen you find that house of your dreams, the first thing that springs to mind is to apply for home loan since it’s your ticket to funding the big purchase. But sometimes, loan applications get rejected for various reasons, among which the most common is a low CIBIL or credit score. It is major factor that determines your loan approval, loan amount and even rate of interest.

Why is high and low credit score important?

While a high credit score is viewed as a low probability of a default, a low credit score reflects the opposite, making financial institutions wary of the person applying for a home loan.

Credit score is a three digit number that ranges between 300 and 900. It reflects your creditworthiness as it is a summary of your payment history, outstanding balances, number of loans, total credit limit, credit utilization, every loan detail taken from different lenders. Higher credit scores are great for you if you are applying for a home loan. On an average, a credit score of 750 is great for borrowers as lenders find themselves at less risk. Moreover, at this score, you can get good deals on your home loan and better rates of interest.

Your credit score is impacted positively by:

● Consistent payment of loan EMIs
● Credit card bill payments on time
● No over-leveraging
● Payment of credit card bills in full as opposed to minimum due amount each time
● Good financial records
● Many types of credits, especially unsecured personal loans in family
● Good utilization of credit limit on cards

Your credit score is impacted negatively by:

● A lot of credit report enquiries by banks and financial institutions
● Dishonoured or bounced cheques
● Loan repayment irregularity
● Defaults on credit repayments and even defaulting as a guarantor
● Late payments on credit cards or making part payments consistently
● Number of unsecured credit (multiple personal loans)
● Numerous applications for unsecured loan, especially when rejected
● Going beyond the approved credit limit and even high utilization of it

Other than these, your credit score can also be impacted negatively when banks or financial institutions you are dealing with make errors in their records. Hence, it’s important that you keep checking whether or not your banks are submitting the right information. It comes really handy if you request and maintain a copy of your credit history personally as compared to a financial institution doing that for you.

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December 13, 2016

Why you need Good CIBIL Score for Home Loan Approval

approved loan for your homeCIBIL Score is a crucial aspect in determining your home loan eligibility. Every time you apply for home loan, your lender checks this score for approving/disapproving your application. It is a summary of your credit history as per your credit behaviour. It depends on the following factors:

Past payments: All your previous payments, whether on time or delayed, are recorded with CIBIL. Consistency in making payments is considered good whereas more recent delays are seen negatively.

Settlements, defaults and write-offs: Multiple write-offs, defaults on previous loans and more recent write-offs (as opposed to older ones) have negative effects on your credit score. Defaults and delays on secured loans are worse than on unsecured loans.

Credit as proportion of income: The higher the loan balance you have, the lower your credit score will be. Less loan balance shows smart credit utilization on your part.

Credit cards: If you have high credit card balances, your credit score will be low. Consistency in repaying credit card debts improves the score. Credit cards (unsecured loans) are viewed negatively by lenders as compared to secured loans.

Different ranges of CIBIL Score

Every person with a financial history has a CIBIL score and it can range anywhere between 300 and 900, with 900 being the highest. A person can also have a score of 0 or -1, which means that they have no credit history in terms of loans and credit cards. So to get the credit history started, you must have at least one credit card or applied for a loan. Here is a breakup of CIBIL scores and what it means:

  • 550 – 650: It is a fair score and accepted by many lenders. This score shows that you have been quite regular with your repayments, other than a few exceptions. Most lenders trust borrowers with this score and approve their home loans but usually with a higher interest rates.
  • 300 – 550: This is the worst score anybody can have and it means that you have been defaulting on your payments. With such a score, getting credit is extremely difficult.
  • 650 – 750: For home loan eligibility, this score is very promising. And if you have this credit score, you will not face any issue regarding approval of application.
  • 750 – 900: It is the best possible score anybody can have and it indicates your expertise at managing your finances. Lenders will approve even a larger loan amount to you at great rates when you apply for home loan.
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