The Best Time to Buy that House?


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Buying a house is both exciting and scary, especially for the first-time buyer.  Most people prefer to factor in timing, in order to get the best rates.  But other than being able to understand market trends, there are other things you need to look at to see if you qualify for that home mortgage.

You have a steady source of income.  Examine carefully your current cash flow.  Qualifying for a home mortgage means you are capable of a long-term payment commitment so you will need to consider your situation years from now.  Try to foresee future expenses, plans, job movements and changes.

You have enough money saved to last you at least three to six months in case your income source is cut or interrupted.  This means that you can continue to pay for your mortgage (along with other bills) and the lender has nothing to worry about.

Your debts are under control.  Sure you still make monthly payments on that student loan and that credit card and you still haven’t paid up the car loan, but if your debts are consistently paid with no bad marks at least a year or two from today, then you’re looking good.  That means you can be trusted.

Your monthly total debt payments (mortgage, loans, credit cards) remain below or well below 38% of your gross monthly income.  This shows the lender that you are capable of paying responsibly and that a home mortgage will not drive you to bankruptcy.

If your credit history is less than perfect, it will not automatically disqualify you for a home mortgage, but a good history means paying lower interest rates and monthly mortgage payments.  Before talking to a lender, check your history from one of the three credit bureaus.  There might be some errors you need to correct or you might want the best arrangement that can lift your credit rating a notch higher.

You can afford to pay down payment.  You will need a sizable amount of cash to pay downpayment for your house of choice.  That’s 20% of the total price.  You may also choose a low or zero down payment scheme, but it may not be cost effective in the long run.

Decide to buy when you’re ready.  A house is probably the biggest financial decision you will ever make in your life so be sure you go into it when you yourself feel that you can handle the responsibility.  All that timing in order to qualify really depends on you.

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Money-Saving Guide for College Students


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During college, a student tends to take money for granted because of  all the excitement generated by the activities, studying  and hanging out with friends.

You would not want to put yourself in debt or overspend your allowance that is why you need to keep a close watch of your spending habits.

Here is an easy to follow guide on how a college student can save up those hard-earned bucks:

1.    Make a list of your expenses.

By now, you should know how much money you expect to have for each week or month that you have classes. The money that you will live on could be from your parents, your part-time work or a student loan.

List down your spending essentials like food, school supplies and books. This should give you an idea of how much you would get to spend each week.

Do not forget to save some petty cash for unexpected expenses.

2.    Avoid using your credit or debit cards.

It would be easier if you do not have a credit or a debit card with you all the time. Just keep them handy for a big expense that you really do not have cash for.

For small items that you need to purchase, it is better to still use the cash that you have with you to keep yourself from overspending.

3.    Eat well.

Eating out a lot might save you time but it will definitely not save you money. In the long run, it will be more costly for you to eat each meal at fast food restaurants.

Instead, you can spend your food money on groceries and you can just eat in your dorm or apartment; and even pack your lunch when you have classes. With the right meal-planning, you would not just save  money but you would also get to  eat healthier.

4. Treat yourself once in a while.

By following this guide and keeping your luxury items to a minimum, you can save yourself a lot of money while studying for college. Who knows, you might even save enough to buy yourself a big item that otherwise, you would not even have the money for?

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