Category Archives: Money

How to Buy a Home with Bad Credit

Life can be somewhat of a numbers game. You need to be a certain age to drive and to drink alcohol, you need to have a certain grade point average to get into your dream university, and you need to make a certain income to live the lifestyle you’ve always wanted. Then, let us not forget, the dreaded credit score, a number which not everyone even knows exists. You have always been told that you need the perfect credit score to get that dream house, but is it necessarily true? Well, rest assured, you have some options that can make it possible to buy a home with bad credit.

Understanding Your Credit Score

First off, it’s important to understand what a credit score is in order to understand why it is making home buying more difficult. As one of the main factors in determining whether or not you qualify for a mortgage, the higher the credit score the better. Your credit score is basically split up between your payment history (whether you make payments on time), length of credit (the earlier you started accumulating credit, the better), debt-to-credit utilization (your debt amount divided by your credit limit on the sum of your accounts), credit mix (a combination of all your different credit types, i.e. credit cards, car loans and retail accounts) and new credit (every time you apply for a new account is a hit against you). Don’t worry though; even if you have awful credit and $20,000 left to pay on your credit card, you can still purchase a house. You will just have to put a little more prep work in at the starting gate.

What If I Have a Low Credit Score?

If your credit score is pretty low, you’ll need to gather up a large down payment for that house you want.  Offering a down payment of at least 20 percent of the home value (or even more) basically tells the lender that though you might have a low credit score, you are fully capable and ready to take on the responsibility of the loan. After all, if you were not ready to take it on, you would not exactly be investing more up front, would you? Making this move will also increase your equity up front, which will lower your loan-to-value ratio.

Improving Your Credit Score

Improving your credit score can have a major impact on whether or not you will be able to score a loan, so you should start preparing for this at least a year before putting the purchase in motion. You can start by paying of your debts (or as much as you can manage) and getting your credit card balances as low as you can. Do not switch jobs; stick with the one you have for as long as you can, as some lenders require two years of steady employment with one company to qualify.

Hard Money Loans

You can also apply for a hard money loan, since these are generally short-term. Though they come with a high interest rate, you are able to make the home purchase much quicker than with a standard loan since the funds become available immediately. For instance, say you are looking for a home in Northern California; accessing San Francisco or Sacramento hard money loans can give you the upper hand in areas like these that see fierce competition. If you are completely confident that you will be able to renovate a home quickly and make more money at the end through a fix and flip venture, a hard money loan is a great option to pay for the house itself, along with the renovation costs. The catch with hard money loans? You have to know what you are getting into and have an action plan for paying them off.

Don’t let bad credit prevent you from purchasing your dream home or an investment property. Keep these tips in mind—don’t let your credit score rule your life!

Starting a Business

Many individuals have a dream to start their own business. They have a business idea and want to make their dreams come true by starting their entrepreneurial adventure. Ideas, business sense and time are all required to make this happen but a major factor in starting a business is money. A lot of money is needed to jumpstart your ideas.

Some people are blessed with already having startup funds either by saving, inheritance or previous success. However, for most of us, it is required to take on a source of debt to start your business. Below are examples of different sources to help you in your journey.

Loan

The most popular form of debt for a business to start is a loan. Most loans are an offered product from a bank but some people take on loans from investors.

When an individual or business offers funds for you to borrow, it can be referred to as a loan. When someone does this they typically ask for a percentage of ownership in the business. They are taking a risk on your idea and think you will succeed so ask for this in return.

If you do not have individuals lending you money, you must go to a bank to acquire a loan. There are many things you need to consider when you apply for a business loan. In order to be approved for a loan, you and your business need to have good credit. If you do not have good credit than you may not be approved or you may receive a high interest rate. In some cases, business owners have people co-sign the loan in order to allow them to be approved. It is also important that you evaluate if your business should even take on the debt. Taking on debt is a major responsibility and can affect your credit if not paid back in a timely manner.

Credit Cards

An easier form of funding for a business is a credit card. The total dollar amount will be smaller than a loan but it can help you afford smaller start up costs. The application process is a lot easier than applying for a loan, however the standards as to which you can be approved are similar. You still need to have good credit. It is best to shop around for the best interest rate and rewards to make it the most economical.

Line of Credit

Another form of debt that can be acquired to start your business is a line of credit. A line of credit is basically a combination of a loan and a credit card. You are approved for a sum of money and you can tap into it/pay it back however you like. An advantage to this product is its flexibility. Your business can be approved for a certain amount but you do not necessarily need to use it. This means that you only spend the money that you need to and aren’t tempted to spend the whole lump sum.

Overall, there are many resources out there for businesses to tap into. If you have a business idea and want to follow your dream, look into any of the products above to help make it happen.

3 Jobs for Stay at Home Moms

Being a stay-at-home mom means working all day with the kids and supplementing that with some additional income. In these situations, employment must be flexible enough to work around kids’ schedules while also being steady enough to add to the household financials.

Work as a Freelancer

The work isn’t glamorous nor is it always the best paying. However, working as a freelance writer, artist, or photographer can give you the freedom to work in the field where you excel while still focusing on your family. With the rise of the e-society, freelance work has become increasingly accessible. One of the best ways to get work is to do work. For writers, Upwork is a great resource. For those with an IT background, Sologig can help you find some work. Finally, there are more generalized websites that incorporate multiple different areas where companies are looking for contract workers that fit their needs. Having a portfolio of your work available for prospective clients can also help snag that position that looks great.

Become a Children’s Party Planer

Think about all the times that you’ve wanted to have your kid’s party at your house or a park but had no interest in planning it. All moms feel this way, meaning that there’s a market for children’s party planners. If you’re already a mom, you’ve got a built-in clientele of playground friends, local friends, and school friends from which to pull. In addition, going to local libraries or kid-friendly businesses and asking to leave cards or fliers can help find clients. As a parent, you already know kids’ likes and the current kid trends. Startup costs can range depending on what services you want to provide. The good thing is that you can start out small and then move into more sophisticated services as you build a stronger clientele. Meeting with entertainers takes some work, but often local clown, magicians, and storytellers will be more than willing to work with you so that they can also broaden their connections. For people who are organized and love throwing parties, this job can be not just an income but a calling.

Open a Beauty Business

Although the beauty business is increasingly male, women still dominate the market. If you’re looking for something that is both fun and takes up little space in your home, opening a beauty business is the best route. Miskn, beauty business offering pigmentation removal in Perth, Australia, is a good example of a successful business model. Focusing on women as its main audience, independent of age and needs, the business doesn’t fall short when it comes to transforming local factors into opportunities. MIskn’s success lies in its branding. Once you source successful products like Miskn’s Lycogel and Medik8, the key is to tell your own story. Focus on public relations and marketing to build your clientele. With the ability to work after traditional business hours in a market on the rise, this might one of the least considered but most profitable options.

 

Being a stay-at-home mom doesn’t mean being unable to bring in an income. In order to be a successful work-at-home mom, however, you need to find the right career path for yourself that matches your family’s needs.