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5 Financial Mistakes to Avoid in Your 20’s

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For most people in their 20’s, the only way to discover how to sustain and improve their financial health is through trial and error. Some need to experience failure before they can truly understand how to manage their finances. For those who wish to forgo these mistakes, read the following advice below.

Mistake Number 1 – Overly Excessive Student Loan Debt

As advantageous a college education may be for your career, one needs to understand that there are several financial mistakes that can happen while going to school. These mistakes can have long-term effects on your finances, and prolong you from taking that next step to home ownership in your life.

Mistake: Many kids get accepted to a private school or University and don’t even know what they want to major in. As prestigious as it is to go to one of these schools, many students take more than four years to graduate. This can be because their grades slip while adjusting to a new independent lifestyle, or they decided to switch majors half way through their college career. Nevertheless, tuition at many private schools can be very expensive and leave you in a lot of debt.

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Advice: Before enrolling into an expensive school, make sure you know what you want to do. Also, consider taking your general education courses at a State or Community College first. General education courses will be the same no matter where you go to school. Minimize your student loan debt and transfer to the school of your dreams after you have received your Associates Degree. This will allow you time to discover your career path and the freedom to switch majors without already having so much invested in your previous major. Lastly, once you have transferred to the prestigious school of your dreams, you will then receive a diploma at almost half the cost, versus if you had gone there for all four years.

Mistake Number 2 – Not Budgeting

As cliché as creating a budget sounds, it is very beneficial for your financial health. A budget is an overall plan to make sure that you have money for your fixed monthly expenses.

Mistake: People who do not budget can have a tendency to lose track of their expenditures and find themselves not able to pay their bills towards the end of the month. This in return can damage your credit score and cause unwanted late fees. You don’t want to be calculating your bills in you head every week wondering if you have enough to go see a movie.

alan-blackjack-oAdvice: Make yourself a budget that will cover your fixed payments and have some money left over for savings and unforeseen expenditures. When you get your paycheck, set aside your budgeted money in a separate “untouchable” account that is specifically for your monthly bills. By doing this you guarantee that you will have enough money for the entire month. As for the leftover money, feel free to do whatever you want with it, even though it is undoubtedly better to save.

Mistake Number 3 – Over Spending

Mistake: People who are new to the workforce can be overly excited once they start getting regular paychecks or a raise. This causes them to overspend on things like leasing an expensive car and moving into a better apartment. As great as all that is, in many cases, decisions like these can cause people to go paycheck-to-paycheck and prevent them from building equity for their future. All the money you spend leasing a car and on rent for an apartment helps someone else get rich, not you. Once your lease is up on both your car and your apartment all the money you invested in those two luxuries just disappears and cannot be used to help you down the road.

Advice: While you are in your 20’s, save as much as possible. Live with your parents or with as many roommates for as long as you can. The less you rent early on, the more you will have to buy with in the future. When it comes to a vehicle, ‘buy’ a reasonably priced ‘used’ car that is a year old. Make all of the monthly payments on time and pay it off as soon as you can. The sooner you pay off things like your car, the sooner you can then sell your car to invest that money elsewhere. This will help you save, it will help you build credit, and allow you to be more eligible to afford a mortgage sooner in your life.

Mistake Number 4 – Not Establishing Good Credit

Your credit score is a three-digit number between 301 and 850 based on your credit spending habits in the past, and the higher, the better. Generally, you do not want your credit score to fall below 650, as potential creditors will consider you less dependable and deserving of certain favorable rates.

Mistake: Younger people who are new to adulthood feel entitled to certain things they have always wanted. With that being said, just because you have a credit card, does not always mean you should use it. It goes without saying; if you do not have the money for a specific item, you should not be buying it. People in their 20’s can sometimes find themselves getting into a lot of credit card debt and spend the rest of their lives paying it off.

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Advice: Do yourself a favor and be smart with your credit. Build your credit by making small manageable purchases and pay them off as soon as possible. This will allow you to make bigger purchases later on when you are applying for a mortgage or a loan. Your credit is very fragile; a couple mistakes here and there can make a huge difference down the road.

Mistake Number 5 – No Emergency Fund

It is always wise to have an “emergency fund” in case the worst should happen. While most people try not to even think about the possibility of losing their job, a medical emergency, or their car breaking down, these are all things that can potentially happen.

Mistake: In our youth we feel invincible and have the mentality that nothing bad will ever happen. The problem with that kind of attitude is you don’t prepare yourself if anything bad does happen. You spend your money on different things like vacations and other forms of entertainment rather than saving it to protect yourself if you briefly lose your income. Without an emergency fund, how will you pay your bills if you unexpectedly get laid off from work, or break your leg on a ski trip?

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Advice: Before signing a lease, be sure to have a backup plan and an emergency fund that can keep you afloat for at ‘least’ three months. It is recommended to have six months saved, but everyone’s finances are different. Having this emergency fund will help sustain your needs until you find a new job. It also gives you enough time to heal and rehabilitate if you have a serious injury or get sick.

Conclusion

Here at MonsterLoans we understand that for many people, their 20’s is a decade spent learning what it’s like to be an adult. It is a time of great opportunity and a time to live and learn. Some of our greatest memories are when we were in our 20’s but not all are perfect. That is what makes us human. Try to control what you can to better your chances, live your life to the fullest, and plan ahead to achieve the American dream of homeownership.

As always, if you have any questions, or are interested in finding out if you are eligible for a home loan, call us to speak with one of our trained loan professionals.

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5 Things to Avoid When Applying for a Mortgage

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Qualifying for a home loan is not easy, and there are several factors that go into the qualification process besides your income and credit score. As much as underwriters would like to see your loan make it to the finish line, it’s their job to evaluate your income and credit score to make sure you’re a qualified borrower. It’s important to avoid some of the common mistakes that many borrowers make when applying for a home loan. Be prepared and try to limit the mistakes listed below to increase your chances for success.

1.) Avoid making large purchases beforehand

To get approved for a home loan or mortgage, your lender needs to extensively analyze and calculate the probability of reimbursement. One way to prove to them that you are a strong candidate is by showing them that you have reasonable spending habits. Consistency in your finances indicates that you are liable for your expenses and that you can be trusted to manage consumerism. Try not to make any sizable purchases such as a new car, boat, or RV. The financial decisions you make before applying for a loan can greatly impact the likelihood of your loan being funded. Generally, it’s recommended to wait on any sizable purchases until after the loan process has closed.

2.) Avoid major lifestyle changes

Quitting your job to start a new career path is a major lifestyle change that could negatively affect your chances of qualifying for a loan. Try to establish longevity with your current employer before applying for a home loan. By showing  job security, Underwriters can better determine whether or not you will be able to handle the financial commitment of a mortgage. Bringing a newborn child into your family can create uncertainty as well when applying for a home loan. Children, although a blessing, are a huge financial commitment, which is why timing is so important.

3.) Avoid new credit accounts or credit inquiries

Your credit score is one of the most important factors when applying for a home loan. Resist the urge of opening new credit accounts with your local retail stores or bank. It might be tempting to save 15 percent on your new TV by opening up a credit card, but doing so could be the difference between you getting an affordable mortgage rate or not.

4.) Avoid closing any credit accounts

Closing a credit account might intuitively seem like it will help your credit score, but will in fact hurt your credit score. Instead of closing out any credit accounts, it’s recommended to continue to make your monthly payments at an amount that’s higher than the minimum due. When applying for a home loan, focus on maintaining consistent credit card payments, and try not to make any big purchases in the six months leading up to your home loan application.

5.) Avoid taking on the financial responsibility of others

When you co-sign on a loan and assume the financial responsibility for someone else, underwriters will question whether or not you can sustain a new monthly mortgage payment. Co-signing on a loan to support your family member or friend means that you’re liable if the worst should happen and they can’t pay off their own financial commitment.

Here at MonsterLoans we understand that life happens and sometimes financial setbacks can’t be prevented. Try to control what you can to better your chances of achieving the American dream of homeownership. As always, if you have any questions, or are interested in refinancing your home, call us to speak to one of our trained loan professionals so that we can provide you with our top-rated customer service.

 

 

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MonsterLoans Treats You Like Family

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Are you searching for the right mortgage lender to refinance your home? MonsterLoans understands the anxiety that comes with this process and would like to put your mind at ease. We’re proud of our excellent customer reviews, our streamlined in-house process, and the specialized service we offer to military veterans. Our staff treats our borrowers like family, which is why our business has thrived since 2003.

We know it helps to hear feedback from people who have worked with us before. In an effort to earn your trust, we gathered a few testimonials from our Yelp and Facebook pages , which average 4.3 out of 5-star reviews.

 “Rick Rawlin made the loan process seamless. In our first conversation he said he was a “man of his word” and would work his “tail off” for me—He delivered. Ask for him by name, he will make a sometimes stressful situation, less stressful. I give him my highest recommendation!” – Darren K. from California

 “These guys are the loan masters! They helped my sister with a complicated loan refi that we thought we could never get done. They were on top of it every step of the way, were so professional & knowledgeable & saved my sis & her hubby so much in mortgage payments helping them out immensely! Thanks guys for saving the day you are the best!!” – Tania J. from Maryland

MonsterLoans streamlines your loan by centralizing our services under one roof, from processing to underwriting, all the way to funding. This eliminates the possibility of miscommunication and delays, making the process simple and easy for everyone involved. With this advantage, MonsterLoans has been recognized to fund loans in half the time when compared to the industry standard.

 “My fiancé and I had the privilege of working with Dave at MonsterLoans and decided to refinance our condo in order to do some upgrades. He was very professional and always put our needs first. Our loan was funded in less time than originally anticipated thanks to Dave and we couldn’t be happier. If we decide to move in the future, or need other financial advice, we will definitely contact Dave! Thanks again!!!” – Courtney from California

MonsterLoans specializes in VA Loans to support the brave men and women who served our country. Our veterans risked everything to keep “our home” safe; the least we can do is help finance theirs.

Cash Out Refinance “My husband, a retired serviceman and I decided to refinance our condo in order to do some upgrades.  We previously had a V.A. Loan and were pleased to know we could refinance into another V.A. Loan. We had the privilege of working with Brian G. Harvey at MonsterLoans. What an attentive, personable, and thorough professional is Brian, with one thing in mind – serving the customer.  Brian was able to ask for documentation before it was requested which shortened the process greatly and assured us that Brian really knew his job As in most financial transactions there were several bumps to overcome, however, Brian assured us this was quite normal and the process continued with calls to let us know exactly what was going on day-to-day.  Our loan funded in less time than anticipated thanks to the expertise of Brian G. Harvey.  If we decide to move in the future, or have other financial interests, most definitely we would contact Brian once again for advice and direction. Besides the praises we have for MonsterLoans, we feel as though we made a friend throughout this process.- Frank S. from California

“Amazing group of people! You are in good hands with MonsterLoans!!”Jay C. from California

 “Dontae Ward knocked the ball out of the park, helping me with my refinancing on my home. This was an easy exchange and he will go the limit for you! Thanks Dontae!!!!!” – Michael G. from Colorado

Our numerous product offerings and capable staff help us meet the needs of clients both big and small. MonsterLoans takes the fear out of financing and we will go out of our way to treat you like family. Call us today at 1-866-808-0377 for a free quote.

Rent is Too High! It’s Time to Buy!

By | Adjustable Rate Mortgage Loan (ARM), FHA Loans, Fixed Rate Loans, HARP Loans, Monster News, VA Loans | No Comments

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Have you recently looked into renting a new home and been shocked by the high costs all around? You aren’t the only one. According to a report from CNBC, renters in the U.S. now are expected to pay 30% of their monthly income to rent alone, up 6% from pre-housing boom levels. Depending on where you live, that number can jump to as high as 40-50% of your income, specifically in areas like Los Angeles and New York.

That’s an astronomical number to be paying for something you will likely never own. And with more people renting now than ever, there just are not enough new apartment buildings to keep up with consumer demand.

This isn’t all necessarily a bad thing. While the renting market is hovering near historic highs, buyers are spending half as much as renters, 15% of their monthly income on average, on mortgage payments. Unlike with rent, this is actually down 6% from pre-housing boom levels.

And the numbers indicate that owning will be cheaper than renting for the foreseeable future. Even if rates nearly double to 6% in the next year, home owners will still be spending less than 30% of their income on average for mortgage.

To put things simply, if there was ever a time to stop renting and start owning, it would be now. With the recent loosening of credit restrictions for new home owners, buying your dream home today may be more realistic than it’s ever been.

So what are you waiting for? Get a free MonsterLoans quote today!

FHA Loosens Credit Requirements for Potential Home Owners

By | FHA Loans, Monster News | No Comments

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In a move that could have huge implications on the housing market, the Federal Housing Administration (FHA) announced new steps that would encourage lenders to work with what are considered ‘riskier’ customers.

How does this affect potential new home owners? Credit restrictions that in the past may have prevented borrowers from qualifying for a home loan have now been loosened to help the approval process become easier. Under this initiative, borrowers with lower credit ratings or tighter credit restrictions are now more likely to qualify for a loan than any other time since the collapse of 2008.

This is huge news in a housing market that has seen costs skyrocket. Borrowers who now would have needed to wait a few more years for their credit scores to rise can move forward before home prices climb even higher.

The move will also help lender confidence as it allows the FHA to look over a much wider variety of credit scores to better determine which loans are acceptable risks. In the past, lenders were only able to compare a borrower’s credit to that of peers in the market, but now their credit scores will only be compared with FHA’s risk tolerance. This means that lenders will have more comfort handing out these loans and borrowers will have an easier time qualifying for them.

Overall, this is great news for all potential home owners and the housing market!

About MonsterLoans

MonsterLoans is a privately-owned mortgage lender based out of Irvine, CA. Founded in 2003, MonsterLoans is the premier national mortgage lender specializing in VA, FHA, Harp, Fixed, ARM and Jumbo loans. With all services centralized under one roof, MonsterLoans is able to provide precise and specialized attention to every client, ensuring the best loan possible for each specific situation. At MonsterLoans, we depend on your loyalty and satisfaction, and our mission is to never let you down. For more information, please visit http://www.MonsterLoans.com

Tracking Today’s Market Trends

By | FHA Loans, Fixed Rate Loans, HARP Loans, Monster News, VA Loans | No Comments

 

mortgagesavingsWith the housing market constantly evolving, keeping up with trends can be a tedious task. Should you refinance? Is now the time to buy? Are home values at a place where you want to sell? These are all questions that can be difficult to answer if you do not have a solid grasp of the market and its trends.

But fear not!

Instead of leaving you to read the market and figure things out on your own, MonsterLoans has put together a list of key trends in today’s market to help you decide your next step!

  1. MI Reduction in your FHA Loan – Not all home-owners are interested in a refinance that totally changes their loan. Instead, they are just looking to save a couple hundred dollars a month to help with other bills. Due to the Department of Housing and Urban Development (HUD) dropping the mortgage insurance premium on FHA loans, a simple refinance can drop your MI premium and easily give you some extra cash every month!
  2. Converting Your Conventional Loan – MI reduction sound great, but not an FHA loan holder? No problem! Converting from your conventional loan to an FHA will help you take advantage of the MI Reduction and put some cash in your pockets. Rising home values indicate that it’s likely you are in a better position today to refinance than any time in the past.
  3. Home Values Continue to Skyrocket – Speaking of rising home values, industry experts predict that we will continue to see them climbing through the end of the year and into the foreseeable future. In fact, some forecasts predict a 4-5% annual gain in home prices. With your homes value likely up in a big way, now is the time to cash-out on your equity and get some immediate cash!
  4. I’m Cashin’ Out! – With home values on the rise and debts continuing to pile up, it’s no surprise that one of the fastest-growing refinance methods in the country today is the Cash-Out refi. Home-owners are taking advantage of their equity to pull some cash for immediate relief. The best part? There are NO RESTRICTIONS on how you can spend this money. Use it for home upgrades, credit card and debt relief or just to take a vacation!
  5. Streamline to the Rescue – In today’s economy, a lot of people are just getting by making mortgage payments and trying to get their credit score back on track. Saving money and refinancing don’t seem like much of an option, but there’s a program out there that can turn lowering your rate from a dream to a reality! The VA’s Streamline Refinance program (aka IRRRL program) can be done with zero out-of-pocket cost and can help a home-owner in need of financial relief without the burden of a high-cost refi.

About MonsterLoans

MonsterLoans is a privately-owned mortgage lender based out of Irvine, CA. Founded in 2003, MonsterLoans is the premier national mortgage lender specializing in VA, FHA, Harp, Fixed, ARM and Jumbo loans. With all services centralized under one roof, MonsterLoans is able to provide precise and specialized attention to every client, ensuring the best loan possible for each specific situation. At MonsterLoans, we depend on your loyalty and satisfaction, and our mission is to never let you down. For more information, please visit http://www.MonsterLoans.com

Five Reasons to Consider a Cash-Out Refinance

By | Fixed Rate Loans, Monster News, VA Loans | No Comments

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Thinking about refinancing your home but unsure which way to go in today’s market? Here are five reasons you should consider a Cash-Out refinance!

1. Upgrade Your Property – By using a Cash-Out refinance, home owners have the opportunity to give their homes some much-needed upgrades. Remodeling or adding to your property will not only help aesthetically, but it will also add more value to your property long-term.

2. Eliminate Credit Card Debt – Looking to raise your credit score and get rid of those credit card debts that follow you around month to month? With a Cash-Out refinance you could potentially pay off your credit card debt entirely!

3. Pay Your Cars Off – Similar to credit card debt, a car payment (or two or three) is a monthly cost that many home owners would be happy to see gone. With the cash from your refinance, you can get rid of your car loan and boost your credit score at the same time.

4. Take a Vacation – Imagine yourself on an island, soaking in the sun without a care in the world. That would be great wouldn’t it? Well by taking advantage of the Cash-Out refinance, you can finally have enough cash to plan your dream vacation and escape the daily grind.

5. Pad Your Savings! – So your home isn’t in need of upgrades, you’ve paid off your credit cards and your cars, and you just got back from the Bahamas a few weeks ago. That doesn’t mean you shouldn’t take advantage of the Cash-Out option! By cashing out the equity in your home, you can put a nice chunk of change into your savings account.

About MonsterLoans

MonsterLoans is a privately-owned mortgage lender based out of Irvine, CA. Founded in 2003, MonsterLoans is the premier national mortgage lender specializing in VA, FHA, Harp, Fixed, ARM and Jumbo loans. With all services centralized under one roof, MonsterLoans is able to provide precise and specialized attention to every client, ensuring the best loan possible for each specific situation. At MonsterLoans, we depend on your loyalty and satisfaction, and our mission is to never let you down. For more information, please visit http://www.MonsterLoans.com

 

What Do Rising Interest Rates Mean to Home Owners?

By | FHA Loans, Fixed Rate Loans, HARP Loans, Monster News, VA Loans | No Comments

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In recent months, the housing market has seen increases across the board. Fortunately for home owners, there has been a surge in home values throughout 2015. However, we have also seen a spike in interest rates in recent months, and with the Fed expected to hike rates as soon as September, the low rates we have seen over the past year could soon be a distant memory.

So how does this affect you, the homeowner?

If you are considering a refinance on hour home, these trends indicate that moving forward in the process now while rates are still low is your best option.  While we are yet to see drastic spikes in our interest rates, we have seen a noticeable increase. As a home owner, you may see the rate jump from 3.735% to 4.25% and not think much of it, however on a $200,000 loan not only is that a $70+ increase in payments, but also an issue that could affect loan and refinance approval.

At MonsterLoans, we want to help you kick-start your refinance and guarantee the lowest possible rate on your refinance. Simply put, with rates on the rise, now is the time to lock in your low rate!

About MonsterLoans

MonsterLoans is a privately-owned mortgage lender based out of Irvine, CA. Founded in 2003, MonsterLoans is the premier national mortgage lender specializing in VA, FHA, Harp, Fixed, ARM and Jumbo loans. With all services centralized under one roof, MonsterLoans is able to provide precise and specialized attention to every client, ensuring the best loan possible for each specific situation. At MonsterLoans, we depend on your loyalty and satisfaction, and our mission is to never let you down. For more information, please visit http://www.MonsterLoans.com 

Taking Advantage of Rising Home Values

By | Monster News, VA Loans | No Comments

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Slowly but surely, home values are on the rise in today’s market. Industry experts predict that trend will continue through 2015, with some expecting a 4-5% annual gain in home prices according to Forbes. If you are current home-owner, you are in a great position to take advantage of these rising values with a cash-out refinance.

In a situation where your home value has in fact gone up, you might be able to turn that equity into some immediate cash. The best part of cashing out? There are no restrictions on how you can spend the cash you pull from your home!

Looking to get rid of some high-interest credit cards or finally finish pay off your car? What about making some upgrades to your home and raising its value even more? Or you could just take the cash and go on a nice family vacation! You really have unlimited options and it all starts with a cash-out refinance!

If you believe your homes value has risen and could use some extra cash, contact our loan experts at MonsterLoans today!

About MonsterLoans

MonsterLoans is a privately-owned mortgage lender based out of Irvine, CA. Founded in 2003, MonsterLoans is the premier national mortgage lender specializing in VA, FHA, Harp, Fixed, ARM and Jumbo loans. With all services centralized under one roof, MonsterLoans is able to provide precise and specialized attention to every client, ensuring the best loan possible for each specific situation. At MonsterLoans, we depend on your loyalty and satisfaction, and our mission is to never let you down. For more information, please visit http://www.MonsterLoans.com

 

What Are the Benefits to Converting Your FHA Loan?

By | FHA Loans, Monster News, VA Loans | No Comments

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Could you use a couple hundred dollars extra per month to help pay your bills or pad your vacation fund? If the thought of refinancing has crossed your mind, there is an option out there that could save you money immediately. By converting your FHA Loan, you may be able to eliminate your month Mortgage Insurance (MI) premium, saving you hundreds of dollars monthly.

With home values on the rise, there is no better time to refinance with no MI payment included. For those who have attempted to refinance in the past, it is likely that you are in a better position to do so today due to your home likely having a higher value.

Another benefit of converting your FHA loan is that these mortgages often times can offer lower interest rates. Along with dropping your MI payment, this refinance could in fact save you money on the total amount due on your mortgage.

While converting from an loan does offer these great benefits, whether or not you should refinance in this manner should always be looked at on a case-by-case basis. Let our MonsterLoans experts help you find the best option for YOUR refinance today!

About MonsterLoans

MonsterLoans is a privately-owned mortgage lender based out of Irvine, CA. Founded in 2003, MonsterLoans is the premier national mortgage lender specializing in VA, FHA, Harp, Fixed, ARM and Jumbo loans. With all services centralized under one roof, MonsterLoans is able to provide precise and specialized attention to every client, ensuring the best loan possible for each specific situation. At MonsterLoans, we depend on your loyalty and satisfaction, and our mission is to never let you down. For more information, please visit http://www.MonsterLoans.com

 

 

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