Millennium Realty



Posted by Millennium Realty on 11/25/2021


Everyone talks about preparing financially to purchase and own a home. However, it’s not always exactly clear how to prepare. Rather than get overwhelmed by details, there are some basic things you can start with in order to get your finances ready for home ownership. Here we will go over the best ways to prepare.

Take Care of Your Credit Score

Unfortunately, there is no quick cure for a low credit score. It’s based on a lot of long-term factors like bill payment history and age of your credit accounts, so it’s difficult to boost your score short term. However, the more you prepare for buying a home, the better—and creating and maintaining good credit habits will help you in the long run. The first thing you can do is sign up for a free credit monitoring service so you are aware of your starting point. You can also identify any errors that might count against you so that you can dispute them. Some other things you can do are:

  • Hold off on opening any new credit cards or loans to avoid “hard inquiries” on your credit

  • Set up auto-payment with any recurring bills to avoid late payments

  • Don’t completely close any old accounts, even if you don’t use them anymore

These are just the basics and while they are general best practices, only consider them in your own credit situation. For detailed financial advice, always consult a professional.

Start Saving for a Down Payment

The down payment on a new home is the largest upfront expense to prepare for. The size of the down payment will depend on the terms of the mortgage you choose, as well as the purchase price of the home. However, most experts recommend aiming for 20% of the price on the home. While the amount you need in the end might be lower, consider the advantages of saving more than not enough. Some simple strategies for saving up for this expense include automatic deposits into savings and redirecting funds you would normally contribute to a retirement fund. Everybody is different, and it’s important to consider the details of your particular financial situation. Hiring a financial advisor who can create a customized savings plan is a great idea for getting the most savings possible.

Look Into First-Time Homebuyer Assistance Programs

Among the myriad loan options available for homebuyers, there are some programs that exist specifically to help first-time homebuyers. There are various forms of financial assistance available, including special mortgages with low interest rates or tax credits. You can usually find these types of programs available through state governments. Take some time to research whether your state offers any financial help in buying your first home — it might surprise you how many opportunities are available.

The financial aspect of buying your first home is complicated and so is saving for it. However, if you follow these general best practices, you’ll be creating a solid foundation for yourself and your financial future.





Posted by Millennium Realty on 7/31/2014

Many individuals cannot fully understand why they should invest in anything.  When looking at it from the perspective that the right investment could provide a secure financial future, one might see reasons why they should. The goal being not having to work for the rest of your life, instead, have your money working for you. A secure financial future is achievable by investing in the right areas. After savings, the next way to watch your money grow is through investment.  If you are a business owner, profits need to be reinvested in the company to support expansion. In general, whether you invest in precious metals, real estate, stocks or bonds, it does not matter as the objective is the same, the generation of more cash. Although there are risks associated with investing, the financial gain is typically faster than the interest earned through a savings account. Types of Investment Let us have a look at some classes of investments as there are several methods to consider. This is just a few in the financial sector.

  • Cash
  • Bonds
  • Shares
  • Property
Cash This is the most basic form of investment. It can be made in the form of a savings deposit with a bank, credit union or society. This is a relatively secure form of investment. The risk involved with this type of investment is that it may lose value if the interest rate is not above the rate of inflation. Bonds This is a loan you make to a company or the government.  As an investor you will receive back your initial investment plus the interest generated at the predetermined maturity date of the bond. This is a secure form of investment with regular income, however, in some cases, the bond issuer is unable to pay in full. Shares Investing in shares is investing in a company. In return, you are paid returns on your investment if the company makes profit.  You may also be entitled to have a say in the company's method of operation. This form of investment has growth potential over time. The downside is that the price of shares fluctuate and a fall in share prices reduces the value of your investment. Property Owning rental property can be a great source of extra income. There is a wide range of properties to invest in, such as residential buildings, events centers, commercial centers or even a piece of undeveloped land. This is an investment with stable revenue, having the potential of growth over time. The downside is that prices can fall, negatively affecting the return on your investment. Secondly, it could take a long time to recoup your investment, keeping your money tied up longer than expected. Everyone should consider investing to help secure their financial future.  Research will help you determine what form of investment will best meet your individual financial needs.  







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