Jeffrey Harrington's Blog
A mortgage could put you on the hook to a lender for longer than a decade. The last thing that you want to do is to enter a financial relationship with the wrong mortgage lender. Engage the wrong mortgage lender and you might enter a legally binding agreement with a company that is on the brink of financial ruin.
Why you may want to hold off on signing that mortgage
Even if the wrong mortgage lender is solvent and not at risk of steep financial challenges, there could be negative fallout. An inexperienced lender might not perform sufficient due diligence to prevent unscrupulous workers from being hired by their organization.
If they don't, your financial data could be at risk. Other reasons why you may want to hold off on signing that mortgage, especially if doing so legally binds you to the wrong lender include:
- Identity theft - Regardless of who you get your mortgage through, you'll share a lot of personal data with a potential lender. Someone at the wrong lending agency could take your information and make illegal purchases.
- Kickback schemes - The wrong mortgage lender might push you toward specific homeowner's insurance providers, home inspectors or home goods retailers. These lenders might get kickbacks off of sales that you make with these vendors.
- Non-competitive interest rates - Should the lender not have a strong balance sheet, you might get a mortgage with less than stellar interest rates. Over time, this type of deal could force you to pay thousands more over the life of your home loan than what you would pay with a lender who had a stronger balance sheet.
- Illegal contract clauses - An unscrupulous lender might add illegal clauses into your mortgage contract.
Why just getting a house is not enough
You might not have hit the bull's eye even if you found a lender to approve you for a mortgage. In fact, you might have just stepped into a business venture that could force you to pay more for your house within five years.
That may happen if you allowed a mortgage lender to talk you into signing a variable rate mortgage. If you've ever had your student loans balloon after a grace period ended or interest rates climbed, you know the pain of having to deal with an unexpected payment increase.
Misuse of your personal and financial records is another negative that might result from entering a mortgage deal with the wrong lender. At the worst, you could become a participant in a Ponzi scheme. This could happen even if you enter a deal with a relative or friend who works in the housing or financial industry.
Protect yourself by performing the same level of due diligence that a home loan provider performs on you. Check financial performance, mortgage interest rates and the types of mortgages that lenders normally go with. For example, you could find out if a lender generally takes risks with subprime mortgages. Also, and this applies to any deal, trust your gut and avoid putting on blinders simply because you want a certain house right now.
If you recently bought or sold a house and plan to move out of state, now is the time to start planning for moving day. By doing so, you can ensure that you're fully prepared to take all of your belongings to your new address.
Now, let's take a look at three tips to help you prep for an out-of-state move.
1. Create a Moving Calendar and Budget
Determine how much time is available before moving day. Then, you can put together a list of items that you will need to pack, along with various pre-moving day tasks that must be completed. With this plan in place, you'll be better equipped than ever before to seamlessly navigate the moving process.
Also, don't forget to budget for your out-of-state move. If you craft a budget today, you can avoid the risk of overspending on moving boxes and other moving supplies.
2. Don't Wait to Start Packing
Moving day will be here soon enough, and as such, there is no reason to wait to start packing your belongings.
Enlist friends and family members to help you pack – you'll be glad you did. With loved ones at your side, you can get plenty of assistance as you prep your belongings for your out-of-state move.
In addition, you may want to contact a moving company that specializes in out-of-state moves. If you hire a moving company, you can receive comprehensive support throughout the moving cycle.
3. Cancel Various Services
Reach out to your current utilities providers, along with cable, internet and phone services providers. This will allow you to find out exactly what you'll need to do to cancel various services prior to moving day.
Remember to connect with services providers in your new city or town too. If you contact these services providers today, you can guarantee that all of your essential services can be set up as soon as you reach your new address.
Lastly, if you need help getting ready for an out-of-state move, you may want to reach out to a real estate agent. By collaborating with a housing market professional, you may be able to simplify the moving cycle.
A real estate agent is happy to help you buy or sell a house, as well as connect you with the best moving companies in your area. That way, you can receive plenty of assistance as you count down the days to your out-of-state move.
Furthermore, a real estate agent is happy to provide expert insights into the housing market. If you need to find a new house out of state, this housing market professional can help you discover a great residence at a budget-friendly price. Or, if you need to sell your current residence, a real estate agent will help you find the best ways to optimize the value of your house.
When it comes to moving out of state, why should you be forced to leave anything to chance? Instead, use the aforementioned tips, and you can streamline the out-of-state moving process.
When choosing a house or condo to live in for the next several years, comfort, convenience, and affordability are among the most important factors to keep in mind. A fourth item that many real estate agents would add to that list is "location."
The location of your next home is crucial for many reasons -- not the least of which is future resale value. Ideally, you want the value of your home to appreciate over time, which will help improve your financial situation. Whether you decide to upgrade or downsize in your next real estate purchase, the equity you've built up can benefit both your lifestyle goals and real estate objectives.
In addition to the investment features of picking a good location for your next home, there are also several other worthwhile advantages.
- A reasonable commute time, preferable under a half an hour, will help reduce your stress level, enable you to spend more time with your family, and reduce the amount of wear and tear on your vehicle. A short commute can also help you save money on gas, highway tolls, depreciation, and insurance. One way to reduce your driving time is to look into telecommuting possibilities at your job. Even if you have a relatively long commute to work, that can be offset by having the freedom to work from home a couple days a week. Fortunately, more and more businesses are realizing the mutual benefits of allowing or even encouraging telecommuting. While it may be necessary to prove to your employer that your productivity won't suffer when you're working from home, doing so can save you money, lower your stress, and improve your overall quality of life. Let's face it: There are a lot more fulfilling things you can do with your time than getting stuck in traffic jams and feeling frazzled when you return home every night!
- A convenient location can also mean proximity to shopping, entertainment, recreation, family, friends, and places of worship. Being close to medical, dental, and veterinary services can also make your life a lot easier -- especially when you need to get there quickly.
- From a health and fitness standpoint, it also pays to live within a short distance to public parks, tennis courts, golf courses, bike paths, gyms, and bodies of water for swimming, kayaking, and other aquatic sports.
- For younger families, being close to childcare resources -- whether it be a daycare center or nearby (and available) relative -- can also be a major factor in getting to work on time, making sure your children are properly cared for, and minimizing chaos in your life!