Your Financing Strategy
Ask questions from your bankers which of one these will benefits you most and which one could be costly to you. You can also get free checks when you open your account, you do not need to pay for checks. All checks are processed the same way that is up to you and how you manage your money.
-Savings Accounts: Custom Savings, Money Market Account Checking Accounts: Economy Checking, Express Checking, -Regular Checking, Senior Checking, Student checking
-Your Debit/Visa Card to use for shopping could be free when you open your account, make sure you ask for it, at times they will ask you if you want one or not. Where you use your Debit/Visa Card to withdraw money matters to your bank, it could cost you for using it at the wrong places, ask your banker for information where you could use your card without paying extra charges...
Some banks charges between $1.00 up to $3.00 if you use their card to withdraw money from another bank that they do not do business with. It is your money...
Each one of the above has advantages and dis-advantages, be careful when you are opening your accounts; you could loose money to the bank right away. You also need to know if your monthly statements are going to be free or not, when you make inquiries, the bank could be charging you for too many inquiries. Some things are free from the big banks and something's are cheaper from the community banks.
Basic Requirements for lending you money:
· Savings and Checking Account
· (2) Good Credit or No Credit it depends where you are getting the money.
· (3) Collateral such as your House, Car, Boat, Gold/diamond or any valuable assets they can hold on
· Driver's License,
· Social Security numbers
· Good Employment, at least for six months.
Lenders Information:
Big Bank requirements-
Can be very tough to meet because they have to abide by the 'Federal Reserve Bank or Federal Deposit Insurance Corporation (FDIC)' regulations. They got their money from the Federal Reserve Bank at a lower rate, however, they could turn around and loan it to the smaller banks at a higher rate, and the smaller banks loan it at higher quote rate to the public.
Community Bank requirements/Credit Union:
Well, the community bank is no different either, they turn to the big banks to borrow money at a lower rate so that they can loan it to their customers/clients at a higher rate to make some profit to stay in business.
Private Capital market requirement:
This is where the business gets tougher. The Capital Market enterprise is a big boy on the Wall Street, where they can finance just about anything they like, because they are not being regulated by the government, it is an individual rich businessmen that have money to loan out at a higher rate. They are not required to follow financing rule rigidly as the bank does, but they still have follow the consumer law that protect all of us from being taken advantage of.
Family friends requirement:
This one is your best source of financing, if you could find a rich friend or family friends that can loan you money without any attachment or collateral. They may ask you to pay them some small interest, or none it all depends what you are using the money for, at they would like to get a piece of the apple when they know you are going to make a lot profit.
Collateralization:
There some companies out there that would loan you money to meet your emergency needs, but becareful, they may ask you to give them your house, car, motor cycle or any of your valuables for collateral just in case you were unable to pay them back, but, they are very quick to take your valuables and you may not have any re-course to take them to court for doing so. I would stay away from such financing unless you have to...
There is going to be a time when we are going to need finance or re-finance our mortgages, car, motorcycle, big boat, air-planes etc., that we cannot come up with up-front lump sum money to pay for it This force us to turn to our bank, family friends, private capital market, small loan companies to loan us that money. This is where we are being taken advantage of by offering us some sort of un-affordable rates. At first you would think this a great opportunity that it will not be problem, you could afford that payment being offered to you by your lender, you better think again before you sign that dotted line. They could be collecting interest from you money for long time without any of it going to your principle.
Pay attention to dotted Line and Small print in the loan documents:
The loan documents can be very tricky to read when you are not an attorney, the small fine prints areas are very important areas to pay attention to, because this is where they hid rates, timeline, and warrante, but if you don't pay attention to the rates they quote or offer to you in the loan document that you are going to sign you could be losing a lot of money. You probably better off to take to your attorney before you sign the dotted line.
In the fine print of the loan documents is where they hid most important information that your lender did not want you to know about, especially mortgage and credit card documents. It sounds strange, but it is true, If you don't believe what I said here in this document, go to your loan documents and read the small prints in there you may find out something that you would not like to see or hear about, or if don't believe what I said here, ask yourself a question of why didn't they just print the whole loan documents in a readable format with nice fonts that an average third grader can read and understand it without having to scratch their head or look up words in the webster dictionary for interpretation of words, after all you are the consumer paying them for this services and they will be collecting interest from your financing for such a long time. 95% of mortgage homeowner never gets to the point of paying principle or their mortgage finance off before being taken away from them, but the bank or private investor already started to benefit. Yes, I understand they took the risk to finance us.
I think what is fair is fair, they should make the loan documents more readable for us, and there should be no small prints that is had to read on any loan documents. They should be in a readable format that average Joe can understand; my question all the years was why are they making it so complicated to read if they do not have anything to hide? I also think the loan documents should not have so many pages when we are talking about saving the threes... Not too many consumers read all these pages, it has no value to have so many pages when no one really reads it, of course the attorney will not be making money if they these document could be reduced to minimum.
My solution to this big fat loan documents should be to reduce them to minimum, all it should it be contain is, who own the house, the rate, how long is going to be paid, warranty, borrower's and co-borrower, and all other very valuable information it should not be more than 10 pages long.
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12 End-of-Year Personal Finance Must Do's
With the end of the year looming, there are many tasks that must be completed before this impending deadline. There are even a few perks that might help to ease the transition into the new year. While I am by no means an accountant, financial planner or lawyer, I have come up with a list of items that our family is sure to address before midnight on December 31st. I would recommend getting in touch with a professional for a complete listing of to-dos and their financial implications. 1. Make Donations to Non-Profit Organizations - The winter season is a great time to do a little "spring cleaning" and get rid of items that you no longer need. Not only will you get a tax deduction from most of the items that you donate, but more importantly, people in need will be the recipients. Warm coats, winter clothes, and blankets are perfect items to donate this winter season. Spring and summer clothes, are too, as secondhand retail stores stock items one season ahead. Appliances and electronics end up as gifts during the holidays. Bathroom towels and accessories and comforter sets find their way into homes where couples are just starting out. Just make sure to talk to an accountant about the requirements to receive a deduction. 2. Pay Regular Household Bills - With the hustle and bustle of the season, make sure that you stay on top of your bills. Put a reminder in your smart phone or on your calendar. You can even tie a big bow around a stack of bills and leave them out on a kitchen counter or on the desk in the office. 3. Pay Taxes and Fees - There are many types of taxes and fees that have a deadline of December 31st, so be sure you know what your liabilities are and make them a priority. While federal taxes are not due until April 15th, quarterly taxes are due at year-end. You may also have association fees that are tied to your neighborhood or professional memberships. Review your bills because the due date may actually be January 1st, which poses the risk that you will mentally categorize them as a responsibility that has to be taken care of in January. 4. Mail Rebates - Oh how rebates are a procrastinator's nightmare, but luckily, many of them have a mail-in-date of the end of the year. Companies are betting that you won't send them in, which means you will have paid full price for that item that seemed like a steal when you bought it. If you do not take care of a rebate as soon as you get it, make sure to staple the form, a cut out UPC code, serial number, item number and the original receipt to a white piece of computer paper and write the deadline date across the paper in bold marker. Fortunately, many rebates are online these days, so they are a bit less of a hassle. 5. Annual Benefits Elections - Most companies have an annual enrollment and benefit election period between November and December. This period has a firm close date, after which adjustments can not be made unless there is a major life change. You will want to review your 401K contributions, medical, dental, and vision plans, health care spending account contributions and short-term and long-term disability options. For the time being, some companies might even offer other perks such as additional life insurance, legal services and stock options. Take advantage of these while you can. 6. Retirement Account Contributions - There are several options for saving money for retirement, but many have contribution deadlines of year-end. Talk with a financial planner about a 401K, Roth IRAs, and Traditional IRAs as well as other investing options such as stocks, mutual funds, bonds and T-bills. 7. Funding College Accounts - There are quite a few opportunities for funding a child's college education, as well. Some states have plans that freeze the cost of a college education at today's price, even if your child will not be attending for years to come. There are also investment accounts, such as Education IRAs, that should be discussed with a professional to obtain maximum benefit and protection of your contributions. 8. Transferring Money - With the Death Tax alive and well, many people take advantage of transferring assets to their loved ones long before they pass. The federal government allows between $13,000 and $14,000 to be gifted to any individual per year without incurring a gift tax. This is also a topic to discuss with a financial planner to get a complete understanding of the rules and tax implications. 9. Financial Contributions to your Religious Institution - Any contributions that you make will not only serve you well from a tax deduction standpoint, but it allows your religious institution to reach out to hurting or needy people during the holidays. Your institution also has an annual budget that relies on end-of-year contributions to help meet it. 10. Use Gift Certificates and Gift Cards - Since companies generally run their business by calendar year and perform end-of-year duties in December, your unused gift certificates and gift cards are in danger of expiring. Make sure to contact the places for which you are holding credits to find out their holiday hours of operation. This little perk can at least provide some relief from the stress of spending money. 11. Buy a Car - Car dealerships often have end-of-year buying incentives that help reduce inventory before they incur year-end carrying costs. These rebates are often quite substantial since they have met their sales quota for the year and have received their marketing and advertising dollars from the manufacturer. Plus, with the new year's models already on the lot, last year's models become much less attractive to buyers. Throw in the fact that salesmen's bonuses help pay off their holiday purchases and you've got a dealership that is motivated to move cars. 12. Buy a House - The winter break is the second busiest time of year to buy a home. Kids are out of school and adults have vacation time that they have to take. Couple that with the fact that builders also pay inventory taxes and you've got yourself a wonderful opportunity to take advantage of. One very important detail - make sure that you purchase the home early enough to get your homestead paperwork filed for the following year. I hope this list of the 12 End-of-Year Personal Finance Must Do's provides you with some financial benefit, too. Here's to another Inspired Minute!
