Spot The Fox

Nowadays, people file for bankruptcy for a number of reasons. Some unexpected medical bills, the loss of a job or perhaps overwhelming debt can be some of the reasons for one to file for bankruptcy. One may then start thinking if it is possible to buy a home after bankruptcy. And the answer is in the affirmative. There are many mortgage companies and online lenders out there who offer home loans for even those who have bankruptcy on their credit report.

You will then have to rebuild your credit once your bankruptcy is discharged. You can do this by opening a credit card account to which you will have to make regular payments. Another alternative is to save for a considerable down payment as the larger the cash reserve is, the better the rates you will get! Check on your credit report to make sure that all accounts linked with your bankruptcy are closed.

Make sure that the payment history information is right too as the difference in one late payment can greatly increase your interest rates by a percent or more. Once you improve your credit score through the repayment of the home loan, you can easily take out an equity loan on the home to consolidate any other debt you have since your bankruptcy or to use the extra cash on some business venture.

Before you actually start looking for the right house loan, it is better to look at your budget. Decide how much you can afford as a loan, how much you can make as a down payment, and the monthly payments you can make. With this information, you can decide how much loan to apply for, and the type of financing to opt for.

However, if you intend to live in that house for more than seven years, it is better to find a fixed rate mortgage as it saves money; in the long term. To get an idea of the type of loan to get, you could use a mortgage calculator for estimations.

Once you have an idea of the type of loan you need, you should start investigating the various financing companies. Lenders have little to lose when approving home loans after bankruptcy as the lender feels confident when your home serves as collateral for the loan. There are some lenders who need a certain amount of time to pass before approving for the loan. However, there are also lenders out there who will approve your loan even a day after the bankruptcy has been discharged.

Request free quotes and then investigate their rates. To get these quotes, you need only to furnish basic information, with no need of showing your credit card. This way your credit score is not affected. Once you get all the quotes, compare the APR for the real cost of the loan. It is no point just looking at the interest rates, as they are rather misleading.

Ask if there are any; fees related to the loan as if you plan in refinancing your home, you may have to pay thousands as fees. However, these fees can be negotiated.

Let’s face it, coming up with smart and simple ways of saving money takes thinking that is a bit more creative.

Use some of these shortcuts to managing your finances. They are guaranteed to save you time and money.

Trick your mind into saving

Can’t always come up with where your money goes? There is a simple solution: Trick your own mind into spending less and saving more.

If you are up for a challenge, allocate yourself a weekly allowance. Put a set amount of allowance into an envelope and determine that this will be all you will be allowed to spend for any given week. Next, divide your allowance to take care of your expenses. When you get down to the last $20, that’s the amount you put into your emergency fund. When the money is gone, there will be no more until next week.

Each payday, allocate a percentage to go into a secret fund used only for emergencies. When it’s crunch time, you will know it’s there.

Establish one dresser drawer just to toss single dollar bills. This way when the pizza man arrives, you will have the singles handy and won’t need to break the larger dollar amounts. This discipline forces your mind to think larger amounts and to save larger amounts. You get into the habit of spending only the singles. This works!

To control your credit card debt, carry just one card and pay it off each month. If you are tempted to over spend, the credit card goes into the safe where you only stash your emergency fund. When crunch day comes you have a credit card you can use that will always be in good standing.

Jot down expenses in a notebook and tally them at the end of each week to see if you are over or under your budget estimates. Build in more than you need so that you will always have a cushion in case of a cash emergency. Tracking your spending takes some work but if you take careful notes, you will always be able to see one or two areas where you’re leaking cash. You can then come up with an extra $20 or more per week in savings. That’s $1,000 a year in real money for an emergency fund.

More tricks to add to your own savings routine: Have your paycheck automatically deposited directly to savings rather than to your checking account. You will transfer money to pay your bills, but you’ll think twice about withdrawing additional cash.

Make ONLY one ATM withdrawal each week. Subtract your credit card purchases immediately from your checking account so you’re not surprised once the bill arrives.

When you pay off a loan, add the amount to payments you’re already making to the next lender on your list. You can also send the money to a saving or investment account earmarked for a house, a vacation or a new car and this money will be made available in case of a money emergency.