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What First Time Home Buyers Need to Know About Their Credit Card Balances

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Many people who feel they are prepared to enter the real estate market by purchasing their first home have experienced a roadblock to good mortgage rates – their credit cards. Credit cards can play a positive, but also a negative role in the process of purchasing a home.

There is not a doubt that having a credit card can work highly in your favor when it comes time to shop around for your first home.  If you have a consistent history of timely credit card payments this builds a strong credit rating.  Having a high credit score not only will secure you a mortgage quickly, but one with very competitive rates.

Your credit card can be very influential when determining what mortgage you are seeking because the credit card payments are added to what the payments ‘would be’ on a possible mortgage to determine how much can be afforded.
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When is a Good Time to Consider Refinancing Your Mortgage?

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For many of us who are mortgage holders from time-to-time we find ourselves asking, “When is a good time to refinance my mortgage?” Hardly a day goes by without noticing many lenders advertising tempting deals to entice you to refinance your mortgage.  That temptation to refinance can be huge because depending on your situation, refinancing your mortgage can be beneficial in areas such as reducing the interest rate, shortening or extending the mortgage loan, and even by getting some extra cash flow happening by lowering the monthly mortgage payments.  A word to the wise though, refinancing must be done with great caution because not every situation can have the desired benefits.
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Planning on Buying a House? Put in the Legwork First!

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So you want to buy a house?  That’s awesome!  Congratulations.  But are you ready to buy a house? Have you done your research and legwork to find out the best house in the best neighborhood for you?  I’m talking about all the other little things that influence your buying decision and the neighborhood you pick.  Read on to see what I’m talking about.

Here are steps you need to take to put in the legwork of buying a house (in no particular order):

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Ways a Bigger House is More Expensive (Besides the Mortgage)

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There’s been a movement the past couple of years to move to a smaller home in order to save money.  It’s understandable with the economy the way it is and all.  Still, many people look to the time when they can get a bigger home.  Sometimes you just need more space.  Some just want the bigger place.  I still see homes being torn down and re-built into much larger houses.  Thing is, when you buy a bigger house you aren’t just paying a bigger mortgage.  With a bigger house comes some other expenses and costs that increase.

Some Ways You Will Pay More With a Bigger House:

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It’s Not Too Late to Claim Energy Efficient Home Improvement Tax Credits

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It’s never too late to make some needed improvements to boost the efficiency of your home’s energy usage.  For tax purposes, making a few around-the-house upgrades before the end of the year can contribute to a larger tax refund.

Not only will you be more energy resourceful, but you will save money in the long term, and the IRS will recognize these efforts by rolling out some energy credits to assist you with the costs.

Tax credits can help you save on home energy costsThere are two main types of credits available. The most common credit is money that you can get back for conventional home usage improvements, such as energy efficient windows and doors.  The second type of credit targets alternative energy investments, such as solar or wind powered additions.
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