Check Your Financial Health with an Assessment - Money Tip Tuesday

How to Know You're Ready to Buy a Home - Money Tip Tuesday

Buying a house is a huge decision. It takes a lot of planning and preparation. If you hope to own a home someday, you may begin wondering whether you’re ready to start the process. Fortunately, there are some basic questions and steps you can take to gauge whether it’s the right time or if you should prepare a bit more before such a big purchase.

Links:

• Learn more about Downpayment Assistance Programs
• Check out Triangle's mortgage resources and current rates
• Calculate your payment using out mortgage payment calculator
• Get in touch with one of our Mortgage Originators
• Check outTCU Universityfor more financial education tips and resources!
• Follow us onFacebook,InstagramandTwitter!
• Learn more aboutTriangle Credit Union

Transcript:

Welcome to Money Tip Tuesday from the Making Money Personal podcast.

When buying a house, you’ll find you’re faced with many choices. Going in new to the game can be intimidating, especially if you’re facing pressure from places like family, friends, or even the economy.

As you get started, you’ll need to determine a few important things to find out if you’re ready to make such a big purchase.

First, if you’re feeling ready to embark on this journey remember that you don’t have to do it alone.

The best way to start is by setting up an appointment or free consultation with a mortgage loan officer. They can review your finances with you, set you up with a plan of action that may include preparing your credit and accounts prior to applying, get you in touch with a realtor, and provide an idea of the price range you should be looking at when shopping.

Mortgage professionals will help youanswer essential questions to determine how ready you are to find the right home.

First, they’ll help you figure out how much down payment you’ll need. Determining the down payment is an essential step in the home-buying process. The more you put down, the less you’ll need to borrow. But for many people, this is a challenging step because it takes time and planning to save enough of a down payment that will even make a dent in the overall house price.

Lenders generally require 20% down, which as of this recording is averaging around ninety-five thousand dollars in New Hampshire—difficult for most to obtain. With the benefit of PMI (Private Mortgage Insurance), many lenders can offer a mortgage without that large down payment. Because of this, different lenders also offer a variety of first-time homebuyer programs that accept low down payments, some as little as 5% or even 3% down. That can make a huge difference for someone with little time to save up for a down payment. Being intentional about saving that down payment is critical, and it will make the difference in how much money you’ll have to borrow for your home.

Second, they may provide insight on whether you qualify for any down-payment assistance programs.

If you’re struggling to collect enough for a downpayment, you may find help through down payment assistance programs. These are special programs, usually for first-time home buyers, but not explicitly, that can provide funds like grants, particular loans with very low rates or no need for repayment, forgivable loans, and tax credits. These offers are very localized and differ from state to state, but it’s worth researching the opportunities that might be available to you. Remember that you may have to meet specific requirements to get the assistance, and some lenders might not work with all programs, so do your research beforehand to determine your likelihood of receiving downpayment assistance.

Third, they’ll help you get an idea of your interest rate and APR.

The interest rate significantly affects whether you’re ready for a mortgage. Getting as low an interest rate as possible is a top priority for many people. As a prospective homebuyer, you’ll find that you’re not only shopping for houses but that you’re also shopping for the best rate. Rates play a considerable role in how much you’ll pay in interest over the lifetime of your loan, and they vary by lender. But, to get as good a rate as possible, you need to have good credit. Make it a point to know your credit score. This is one of the most significant factors for lenders regarding what interest rate you’ll get, so nurturing a good credit score is ideal. Monitor it regularly and ensure you’re making all payments on time, reduce your debt-to-income ratio by paying down as much borrowed money on credit cards or personal loans as possible, have a good credit mix and a reasonable length of credit history. The better your credit score, the more likely you’ll get a reasonable rate and pay less overall for your mortgage.

Finally, they'll help you get an accurate estimate of your monthly payment. Once you have a good idea of your down payment and what rates you qualify for, it’s helpful to calculate what you can expect to pay monthly and whether that’s affordable.

Use a mortgage calculator to determine how different down payments and rates affect your monthly payment. Remember that insurance and taxes should also be factored in for the most realistic payment possible. Use the calculators to determine whether that monthly payment is something you can comfortably afford and if not, your mortgage professional can provide options or insight into how to make it more affordable.

Determining you’re ready to buy a home should involve careful planning and research. Like many other significant decisions in life, rushing into a home purchase can be dangerous if you’re not ready. However, considering all the factors mentioned earlier, you will be encouraged to ask the right questions to ensure you’re as prepared as possible.

If you’re ready to buy a home, it’s time to contact a mortgage professional who can help you plan it all out. They’ll walk you through the process of getting pre-approved to finalize the deal at closing. Our team at Triangle is here to help you get the best mortgage option for the home of your dreams.

If there are any other tips or topics you'd like us to cover, let us know at [email protected], and don't forget to like and follow our Making Money Personal FB page and look for our sponsor, Triangle Credit Union, on Instagram and LinkedIn to share your thoughts.

Thanks for listening to today's Money Tip Tuesday. Check out our other tips and episodes on the Making Money Personal podcast.

Have a great day!

Episode 70: Business Resources that Support a Diverse Community | Adriana Torres

When it comes to running a business, there are bound to be a lot of challenges and many questions along the journey. That's why there are so many amazing people working every day to help guide small business owners and entrepreneurs towards their dreams of success.

In this episode, I chat with SCORE Representative Adriana Torres, about how her personal mission drives her passion for not only working at SCORE, but also as an entrepreneur herself.

Links:

• Adriana's Time to Share podcast: YouTube
• Contact Adriana at: [email protected]
• Learn more about SCORE
• Check out our upcoming Latino Connection for Small Business event on June 6th, 2024
• Check outTCU Universityfor more financial education tips and resources!
• Follow us onFacebook,InstagramandTwitter!
• Learn more aboutTriangle Credit Union
• View Transcript.

The Next Best Steps for Your High School Grad - Money Tip Tuesday

High school graduation day is a milestone for the new grad and the parent(s)! After the celebration, it’s time to discuss the real world, reality, and the next best financial steps. What would you say to your graduate? We have the answers to that question.

Links:

• Watch our Budgeting 101 Webinar now
• Get your grad up and running with a new checking account
• Check outTCU Universityfor more financial education tips and resources!
• Follow us onFacebook,InstagramandTwitter!
• Learn more aboutTriangle Credit Union

Transcript:

Welcome to Money Tip Tuesday from the Making Money Personal podcast.

CHOOSING YOUR COLLEGE/TRADE SCHOOL

Whether your new grad is heading off to college or a trade school, the next level of education can be expensive. The best way to pay is to save, avoid student loans as much as possible, and choose an affordable school option.

Many young adults choose to attend their local community college for the first two years for general education (Gen Eds) courses, such as college English, college math, etc. The cost per course is much lower at community college, and this will save considerable money over two years (as in thousands). Plus, a local school means living at home to avoid dorm and food fees that many students incur during their first year away.

How many times do new college students change their major? I know I did—and that cost me a couple of thousand to make up classes. The first two years at a community college is the perfect time to assess a career choice, and getting those gen eds out of the way at a lower cost per class is a smart money move. Most 4-year colleges quickly transfer new students and their credits—especially if the student has excellent grades!

A BUDGET IS YOUR NEW BEST FRIEND

Whether your new grad is off to work or school, it’s time to introduce the world of budgeting. A budget is simply a plan to tell your money what to do and should be prepared in advance (we recommend the beginning of the month).

Some young adults have few expenses, especially if they are still living at home—that’s okay; there will be fewer line items on the budget to manage.

Why budget? It’s a life skill that helps adults manage their money, save for their future, and live more flexibly. For more information on budgeting, I recommend our Budgeting 101 webinar on our YouTube channel.

GET A JOB!

Even if your new grad is heading to college, a part-time job is a great way to earn some spending money for some social time. Students with part-time jobs do statistically better in school because they are required to manage their time better than those who are not working.

Many students pay for college while they are in college, and this is a brilliant money move—avoid student loans as much as possible and never take out loans to cover living expenses, such as room and food.

THE BANKING BASICS

If your new grad doesn’t have savings or checking (with a debit card), now is the perfect time to head to your local credit union to set up these financial basics. Many credit unions have online account openings, so you no longer have to go to a brick-and-mortar branch.

If you are uncomfortable explaining how checking or debit card transactions work, head to your local branch. Branch representatives will take the time to explain direct deposit and debit transactions and how to avoid overdrafts and associated fees. Even if you are very comfortable with this subject, visiting the branch may be a good idea. Hence, your young adult gets this information from a credit union representative.

DON’T OVERSPEND WITH A NEW CREDIT CARD

Post-high school is a time for freedom—including spending. At 18, young adults are now eligible to apply for their credit cards, which means their world is about to open wide.

When I was in college several years ago, credit card companies offered free t-shirts to those who applied. “Build your credit,” they said. While building credit is a good, responsible step, young adults need to consider the consequences of credit. Take time to explain credit and how credit can be adequate. The rule of thumb to follow: if the bill can’t be paid in full when it’s due, don’t spend the money on the purchase.

If you have any tips on this topic or ideas for future issues, please email us at [email protected]. For more great content, be sure to subscribe to the Making Money Personal podcast wherever you listen to podcasts.

Tips to Avoid Student Loan Forgiveness Scams - Money Tip Tuesday

As of 2024, U.S. students currently owe $1.74 trillion in both federal and private student loans. That amount is ridiculously high, and students who owe money on their loans are scrambling to pay them off and are hoping that student loans will be forgiven. Unfortunately, this creates a big opportunity for scammers to exploit students. Here's how you can avoid getting scammed regarding student loans.

Links:

• Worried you've been scammed? Contact any of these agencies for help: US Department of Education, Federal Trade Commission, and the Consumer Financial Protection Bureau
• Get identity protection with Triangle's Better Checking account for affordable fraud monitoring and resolution services
• Check outTCU Universityfor more financial education tips and resources!
• Follow us onFacebook,InstagramandTwitter!
• Learn more aboutTriangle Credit Union

Transcript:

Welcome to Money Tip Tuesday from the Making Money Personal podcast.

If you have student loans, here's what you need to know about student loan forgiveness scams. They are prevalent, especially with student loan forgiveness in the news. The scam can come in different forms of delivery, with phone calls, text messages, and emails being the most common.

Here are some tips to spot a student loan forgiveness scam. First, look out for aggressive advertising language. For example, if the message you received wants you to act immediately or if your account has been flagged for investigation, it most likely isn't legitimate. The U.S. Department of Education says that while they might reach out to highlight temporary programs, they wouldn't use aggressive advertising language.

Another way to spot a student loan forgiveness scam is if it seems too good to be true; it probably is. Some scammers will ask for an up-front or monthly payment while promising immediate student loan cancelation. Most government forgiveness programs require years of qualifying payments and/or employment in a specific field to qualify for student loan forgiveness.

One common way to spot a student loan forgiveness scam is if they ask for your login information. The U.S. Department of Education has stated that they and their partners will never ask for this information.

If you are unsure if the message you received is legitimate, check who sent it to you. Scammers can easily spoof messages to look like they are sent from an official source, but making sure is essential. Studentaid.gov has some helpful resources that include a list of email addresses and phone numbers that they use, as well as their trusted loan servicers.

If you think you have been scammed, there are several options you can take. You can contact your federal loan servicer to ensure there was no unwanted activity on your loans. You can contact your financial institution to stop all payments to the company you think is scamming you. You can also submit a complaint to the U.S. Department of Education, the Federal Trade Commission, and the Consumer Financial Protection Bureau.

If there are any other tips or topics you'd like us to cover, let us know at [email protected]. Also, remember to like and follow our Making Money Personal Facebook and Instagram to share your thoughts. Finally, remember to look for our sponsor, Triangle Credit Union, on Facebook and LinkedIn.

Thanks for listening to today's Money Tip Tuesday. Check out our other tips and episodes on the Making Money Personal podcast.

Episode 69: The Importance of Assessing Your Financial Plan | Brian Luce

Financial Planning can be intimidating and often confusing for anyone new to putting together a sound financial strategy. But if you want to be successful with your money, it's important to know your financials and even better to have someone available to support you along your journey.

In this episode, we're chatting with Brian Luce from Triangle Financial Group about what a financial plan is, why it's important to have one, and how his team can help you get started.

Links:

• Check out Triangle Financial Group resources at trianglefinancialgroup.com
• Contact Brian and his team to get started building your financial plan
• Try out the Financial Wellness Assessment
• Check outTCU Universityfor more financial education tips and resources!
• Follow us onFacebook,InstagramandTwitter!
• Learn more aboutTriangle Credit Union