Friday, April 25, 2014

Happy Home Hunting


The median home price in the U.S. continues to creep higher in 2014. The number of homes for sale has been growing, as well.  What does that mean for house hunters? Simple. Now is a good time to shop for a new abode.
For those of you inexperienced in the world of mortgages, we have compiled some pointers that should help you avoid some real estate land mines.
       Focus on your credit

The biggest factor in your purchase power is your credit score. If you have a strong credit score, you will want to keep it that way. Do not make too many major purchases as you prepare to buy a new home. This could negatively affect your credit score. If your credit score is not so stellar, spend the months prior to home shopping whittling down your debt-to-income ratio. In other words -- pay off your bills and credit cards as much as possible.
     Get pre-approved

Take the time to visit your local AltaOne 
Member Service Center and ask about a pre-approval. This is an important step in the home shopping process. It determines how much your financial institution will lend you. During the pre-approval process, your credit union reviews all your financial information and determines how much of a mortgage you can afford. The pre-approval process saves you time and allows you to focus only on the homes you can afford.
·         Draw the lines

You would be surprised how frequently border disputes arise because neighbors do not know their property lines. Accurate property lines may also save you money on your property taxes.
·         The best time to buy 

Interest rates rise and fall. Property values skyrocket and plummet. There is never a perfect time to buy ... on second thought ... there is a perfect time to buy -- when you are ready. Stop hemming and hawing and trying to predict the market trends. When it makes sense for you and your family, then it is a good time to buy.
·         Save up for the down payment
There are several benefits to making a down payment of 20% or more. First off, you will not have to pay PMI (private mortgage insurance) if you put down at least 20%. PMI provides insurance to your lender in case of default. Lenders look more favorably at borrowers who provide higher down payments. In addition, if you make a 20% down payment, then you instantly have 20% equity in your new home.
·         Find an agent
Every city boasts and abundance of realtors. It is important to conduct your homework and find a quality, experienced realtor who is going to represent your needs.
·         What's it worth? 
An appraisal determines the market value of the home. Lenders use appraisals to help determine the loan amount. Consumers have a legal right to obtain a copy of the home's appraisal.
·         Check the foundation 
A home may look squeaky clean and brand new -- but the structure may not be sound. In California, earthquakes may have caused cracks in structural beams. Termites, water leaks and other hazards often cause hidden damage. A thorough inspection by a reputable firm is an important element to the home buying process.
·         Let the negotiations begin 
Your agent will help to recommend offers. Be fair. Base the offer on comparable home sales in the neighborhood, the condition of the home, extras such as a pool, etc. Remember, the sellers probably want to sell the house as much as you want to buy it.
There are many more aspects of home buying to consider, such as homeowners insurance, the local schools and much more.
Good luck -- and happy home hunting.

(Every new mortgage and HELOC funded through AltaOne Federal Credit Union through November 14, 2014 qualifies for the Imagine Sweepstakes and could win a year's worth of mortgage payments!)
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Thursday, April 17, 2014

The Thrill of That First Car


There is nothing quite as monumental as your first car purchase ...Well, maybe your wedding day or the birth of your children or your first home purchase. But, the first vehicle is pretty high atop the list of great firsts.
It is easy to get lost in the moment as you shop for your car. So, before you make an impulsive buying decision, there are several important matters to review to prepare you for the car buying process.
  1. Budget Have you penciled out your budget (or worked it out on your personal financial manager)? Your first step in the car-shopping bonanza is your budget. Do not stretch your finances too thin.
  2. Shop online You can get a good idea of what is available and the potential costs of the vehicles you are eyeing.
  3. Outside Costs Consider the insurance and maintenance costs. High performance cars not only come with a higher sticker price, but high maintenance costs and insurance premiums, as well. Conduct your research before you buy so you are not stuck with unexpectedly astronomical expenses.
  4. Pre-approved Loans vs Dealer Financing Understand the difference between a loan pre-approval and dealer financing. Every car dealership has a finance department that is the final stop in the purchase process. All new car buyers must understand this is not your only finance option. It is frequently more prudent to shop around to your credit union or other financial institution. In many instances, they will pre-approve you for a specific loan amount and rate. In addition to obtaining a competitive loan rate, you know exactly how much you can pay for your new car, giving you much more buying power.
  5. Registration Most dealerships will handle your tags and title for you - but not all. You may need to visit your DMV to get the title in your name and to order the tags.
  6. Counsel You may want to invite an experienced car buyer to help with the process. They may be able to fend off any high-pressure sales tactics and answer questions before they occur.
  7. Warranty Almost all new and many used vehicles come with a standard warranty. The dealer's finance manager will likely offer you an extended warranty product. Similar products are available from various financial institutions -- often for a bit lower price.
The bottom line -- do your homework. Do not buy the first vehicle you see. The salesman does not want you to leave the dealership, but they know most consumers shop around.

Good luck — and happy car hunting.


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Tuesday, April 1, 2014

Give Yourself a Financial Check-Up


Once a year, you take your children for a physical, even if they are not sick. You take your car to the shop for an annual tune-up, as well. You are careful with your family and your major assets.  So, why do you not take the same care with your money?

Every individual should schedule some time each year to undergo an annual financial check-up. The exam should be rather painless, and it may save you a bundle of money.

The items to review may include:

Check for Accuracy
You may want to schedule some time with your financial institution to determine whether all your information is up-to-date, and to make sure you are utilizing the services they have available. Many institutions have implemented some high-tech, convenient enhancements. It pays to check out the latest and greatest services.

Are You Properly Covered?
As your life and circumstances change, your insurance needs change, as well. When was the last time you had a conversation with your insurance agent about your coverages? You may be eligible for some new discounts. Is your coverage adequate to protect your family and your assets? You may be able to reduce deductibles and save some money.

How do Your Mortgage Rates Stack Up?
What is your current mortgage rate? When was the last time you examined the mortgage rate marketplace? Refinancing may be a viable way to reduce your mortgage payments.

Time to Trim Expenses?
Have your expenses grown lately? Been hit with some unexpected bills? Is it more difficult to make it to the next payday? You may need to do some serious belt-tightening to get you through the challenging financial times. Create a budget. Slice unnecessary costs. Look into a handy budgeting program such as AltaOne's BudgetPro. These tools may save your bacon and help you to save for short- and long-term goals.

Dust off Your Retirement Portfolio
Many folks have college funds and retirement plans such as an IRA or a 401(k). But, many times the money goes into the fund and the individual spends very little time investigating ways to enhance those earnings. A call to your financial advisor may open your eyes to some exciting new ways to invest.

Once you have completed your annual financial check-up, you should ask yourself the following questions to help grade the performance of your finances:

  1. This past year, have my checking/savings balances grown or shrunk? If it has grown, maybe you can slice off a little more for your 401(k) or plop some money into a CD.
  2. Are my credit card balances higher or lower than last year? A spike in your credit card balances may be a sign that you need to apply the brakes with your spending.
  3. How liquid am I? If you need money immediately, can you access enough to take care of certain emergencies?
  4. Is my retirement plan on target? If you do not see enough growth, you may want to look into a different investment strategy.
Diligent financial check-ups will lead to improved fiscal health. 


Remember, you will want to enlist the help of the specialists at your financial institution, your insurance agent and your investment advisor when completing your annual financial exam.
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