Congrats! You are ready to move into your first home! However, you realize that a home is not a home without furniture! When you are furniture shopping, you may be worried about the cost of the items. However there are a few ways where the savings could add up.

New Items

Each month of the year, certain items go on sale due to the changing seasons or introduction of new models. Here is a handy list of what could be on sale each month:

• January – bedding, children’s toys, winter clothes
• February – mattresses, humidifiers
• March – elliptical, treadmills
• April – desktop computers, carpeting
• May – interior and exterior paint, wood stains
• June – indoor furniture, summer sporting goods
• July – deck, siding
• August – air conditioners, dehumidifiers, outdoor furniture
• September – lawnmowers, snow blowers
• October – laptops, gas grills
• November – TVs, baby products
• December – appliances, small electronics (e-readers, blu-ray, etc.)

Previously Owned Treasures

Second-hand furniture is a great way to furnish your new home for cheap. One place you can snag a deal is at your local garage and estate sales. You will find them around the spring and summer months. At those sales, you can find great items like dishes, flat wear, tables, lamps, and some furniture! Some of the items may be outdated, but it is always worth to take a look. Maybe vintage is your style!

Another great place you can look for pre-owned items are your local thrift stores. They are filled with hidden treasures and décor for your new home.

If online shopping is more your style, check out sites such as eBay, Amazon and LetGo app you can download to your smart phone.

DIY Savings

Sometimes when you do a DIY project, it can bring a personal element to your home without the price of a custom-made piece.

For example, a brand new coffee table can range from $100 to $200. However you can build your own (https://www.buzzfeed.com/carolineemiller/heres-how-to-create-the-perfect-table-for-any-wineaholic?utm_term=.oqwrAPgzd#.flRxaD58o) for cheap! This coffee table requires no power tools!

When you are trying to furnish your first place, furnishing your new home can be expensive. However, with these ideas, you can have a wonderful place and make it easy on your wallet.

Picture this: you found your perfect house. You put in your offer and the seller accepts! Now it’s all about obtaining that mortgage to secure the deal. But did you know there are some mistakes you could be making that will affect your mortgage? We advise you to avoid the following:

1. Picking any old mortgage – Look at all of your options and companies. Do the math and lay your choices side-by-side. Have emergency savings for the worst case scenarios
2. Confusing Pre-Approval or Pre-Qualification with Commitment – Yes, there is a difference in being pre-approved and being pre-qualified. When you are pre-qualified, the lender will give you an estimate of how much you can borrow from them based on the information you provide. When you are pre-approved, the lender looked over the information you provide and also to lend you up to a given amount at current interest rates within certain conditions. It is better to be pre-approved than to be pre-qualified, however, even a pre-approved is not a guarantee. The lender’s final clearance and loan commitment are subject to an appraisal satisfactory to the lender, a good title, and a last minute credit check and other verifications.
3. Having too much debt – You could be the perfect candidate and pay all of your bills on time. However, they also look at your debt-to-income ratio as well as timeliness payments. In other words, being up to your ears in debt is a sure way to be turned down for your mortgage. A way to avoid this is by avoiding buying any big-ticket purchases until you buy your house.
4. Forgetting about your credit – You should know your credit score and credit report from the inside out. Check your credit report for any possible mistakes and you can order a free report once a year from the big three credit agencies – Equifax, TransUnion, and Experian. If you see a mistake, dispute it. If your credit score isn’t what you want it to be, repair it before you apply for a mortgage.
5. Lying on your loan application – Exaggerating or putting down untruths on your mortgage application and income can be a federal offense. If the lender finds out, they can make your loan due and payable. The ultimate price for lying on your loan application will fall on you the borrower.
6. Hiding from payments – The worst thing you can do is ignore phone calls and letters from lenders and businesses you are behind on with your payments. Lenders have many options that could help you avoid foreclosure and losing your home, but they won’t be able to help if you don’t talk to them about your difficulties.
7. Skipping the home inspection – Failing to pay the extra free to inspect the home could be a very costly mistake. Good home inspectors examine houses from top to bottom. They are able to tell you how long the appliances will last, if the roof or basement leaks, and if the mechanical systems in the house are in good shape. If you get caught off guard by the necessary repairs, it will mean more money for you and your mortgage payments.
8. Making big life changes – It’s a good idea to keep your job for at least a year or two before applying for a mortgage. Lenders like to lend to people who have stability. If you are thinking of switching jobs, consider doing it after you closed the deal on your mortgage.

Are there any other mistakes you shouldn’t make? Are you not too sure if you should do this or that? If you are lost and confused and want a professional answer, call us at 973-577-7008 and we can connect you to a mortgage loan originator who can help you avoid these costly mistakes.

We’ve all made some mistakes in the past with credit. Missing a payment here, being late on a payment there. Thanks to the Federal Housing Administration (FHA), you do not need to have perfect credit to buy a home. Did you know that half of all FHA home buyers today have scores below 680?

The FHA mortgage program was launched in 1934 to help boost and stabilize the American housing market. In plain English, it means FHA makes it easier for people to qualify for a home loan compared to a conventional loan. A few advantages of a FHA loan are:

• An FHA loan is more accessible since you don’t need a high-paying job or the best credit.

• Credit score requirements are lower, allowing people with not so perfect credit to qualify.

• FHA Loans have lower down payments that can get as low as 3.5%, and can be used for a purchase or refinance.

• Your down payment can be gifted from a relative

• You can roll in all your closing costs

• You can also get cash out on a refinance

Thanks to some of these benefits and more, FHA loans will play a major role in the U.S. Housing Market.  If you have a low score, be upfront about it and ask your mortgage loan originator. Some lenders will allow a score as low as 580, yet some have additional “investor overlays” requiring a credit score of 620 or higher. But are you curious on how your credit score is “created”?

Credit scores are a way to measure the risk of the applicant’s willingness to make timely payments on their loan. They are measured by risk. Consumers who pay their debts on time usually have higher credit scores than others. It can also be changed regarding how much you owe based on your credit card limits as well as any collections in your credit history. To this date, the FICO credit score is the most common system used by mortgage lenders, scores ranging from 300-850. So when it comes to mortgage approvals, lenders use the scores published by the three well-known, major credit bureaus – Equifax, Experian and TransUnion.

To learn more about your credit and FHA loans rates in NJ, call us at (973) 577-7008.

To budget your finance is to get an estimate of your income and expenditure for a set period of time. Like jeans, there is no budget plan that fits for all. Your friend’s budget might be different from yours. So how do you create a budget that is made just for you?

• Determine your must-haves or budget untouchables – Figure out what NEEDS to be paid every month, even though we wish some monthly payments like electricity and rent should be optional. You might also have some other items that are untouchable and you can’t imagine living without it. For example, if you own a dog or a cat, you would need to budget every month food and litter/supplies for the pet if you want to keep them happy and alive.
• Try to re-negotiate on your bills – Almost everything can be negotiated. The trick is to speak to the right department. For example, if you are signing up for a new cell phone plan, ask if there are corporate discounts. Did you get a great deal on your internet/TV package that is only valid for a year? Talk to the cancellation department and try to negotiate a new plan before the price goes up. Even your rent can be negotiated. When you are looking for a property to rent, use a rental agent that know the specials as well as negotiate the monthly price for you.
• Consider online shopping or shopping at a store that matches online prices – With places like Amazon and Jet.com, they have home essentials that can be delivered to your door quickly at a fraction of the price you will find in a store. All you need to do is do your research before you buy. Some major stores, like Best Buy and Walmart, will match the prices you find on legit sites like Amazon to keep you as a customer in the store. Ask your store for details on the rules for price matching.
• If you won’t cook at home, then don’t kid yourself – Everyone knows that it is cheaper to make your own meals at home than it is to eat out. However, if you know you won’t be able to cook or really don’t trust your cooking instinct, then don’t waste the money you will spend on groceries that you will throw away in the first place. It’s ok if you go out to eat a lot, as long if you can budget it in! Consider smarter choices like saving a portion of your servings for lunch the next day or make smarter restaurant choices. Another great idea is check out deals on restaurants on websites like Groupon or Restaurant.com.

When you budget, you will be improving your financial situation and help you live the life you want to live! What are some of the “untouchables” in your budget? Did you try any of the tricks and it worked? Give us a call at 973-577-7008 and let us know!