Saturday, November 10, 2007

The power of information

Everyday we need information and we give information in all aspects of our life. We need to make sure we have all the information and that it's correct. When you talk to a Loan Officer about a home loan there are specific and basic pieces of information you will need. If you go prepared the loan application process will be so much smoother. You will need your ID, drivers license, passport or equivalent, and social security card. Your most recent pay stubs covering a one month period and past 2 yrs W2's. If self employed you need your past 2 yrs tax returns with all schedules. Most recent 2 months of bank statements, if you don't have a bank account now, you need to go open one up. Your money for closing costs, down payment and reserves needs to be documented as to where it came from, so get an account opened today. If you have a 401K through work bring the most recent statement or any life insurance policy with a cash value will also be good. If you have CD's, money market or a trust be sure to have all that information for the LO to be able to verify with a verification of deposit, VOD. If you pay or receive child support bring the divorce decree or child support order. Landlord information or if you live with family you will need those names and addresses. You will also need to bring a check for your credit report as the LO will pull your credit while you are there and be sure to review the whole report to be sure all credit good or bad is yours. If you have paid collections or tax liens or judgments in the past they may very well still show up on your CR as those places say they will report the payment to the credit bureaus and they rarely do, so also keep all your documentation and information of paying these things for the future.
Yes a lot of information is needed to buy a home, but the end result of home ownership a very rewarding feeling. So be prepared and the whole mortgage loan application will not be as painful as you have heard.

Remember: Information is knowledge

Friday, November 9, 2007


Most of us think discipline is something you do to your kids. You never realize it is something we need to do in our everyday lives. Discipline is what more adults need. It will help you achieve everything you want out of life. Too many people live in the fast lane all the time and do not discipline themselves as far as pleasure in life. Sure we all deserve to enjoy ourselves and do what we want, but we will stay in the hole forever unless we discipline ourselves to not getting everything we always think of.
For instance I know people that go out and buy whatever they think they should have, not "need", but want. One in particular gets a new cell phone every month, week, whenever and new computers, TV's, yet cannot keep up with the everyday living expenses and was a homeowner but let the house go. This is a prime example of someone who lacks discipline. She will now have to spend the next 3-5 yrs fixing her credit. This will require discipline and without it she will never gain credit again. This is what we do to ourselves.
So start today with discipline in your budget, spending and dealing with everyday life.

Remember: Discipline is not just for kids

Monday, November 5, 2007

Role Models

We don't know when growing up that we might someday have children and have to know what to teach them about life. They sure don't give you a handbook at the hospital while checking out that instructs you on how to be a good role model in all aspects for your children. We mainly rely on our Parents and Grandparents, who, by the way also were left with the same dilemma. So each generation stumbles through and we all try to do the best we possibly know how. What I have learned as a single Mom for many years is to show my boys how to work hard to earn a living and be successful and to SAVE. My Parents struggled like I have for many years and my Brother and I really didn't know it, because they covered up their money troubles, I'm sure they didn't want us to worry. Of course I am still to this day very fortunate to have both my Parents and they are still married to each other, 50 yrs. This is something many people today don't have. With that my Dad was and still is a hard worker and very smart. He worked outside the home while my Mom was the domestic engineer. She kept all the inner gears of our household running smoothly as possible, while Dad traveled for his job every week. So over the years after I became an adult, married and divorced with 2 boys to raise, I realized I had learned how to survive on very little money while trying to "rob peter to pay paul", after many years it became very tiresome and old. I have finally figured out how to make myself save money and am trying to teach this same philosophy to my boys so they won't have to face crisis's unprepared. There is nothing worse than thinking you have more money in your bank account and then you discover how wrong you were. One clerical error can cost you hundred's of dollars. I know, I have lost many, many dollars this way. Our Parents are our role models and they do the best they can. Mine did. I have learned from them that you continue to do what you believe in and be positive about it everyday and you will be successful. My Dad has been successful and I have too for not going to college. My degree is in the Mortgage business.
Think about what you have ever learned from your Role Models and try to incorprate that into your life.
So start today by writing down a simple budget plan for yourself and your kids can start learning as early as 12. You can use notebook paper, write down what income is coming into the household and what your bills, expenses are to go out for the month. Once you see it on paper and know in your head how much money you have for wiggle room, you will tend to not overspend. In today's times we all have to learn how to build our wealth by spending our money very carefully.
If you ever have a question or comment, please feel free to email me. I am always willing to help people think in the right direction.

Remember: Think smarter not harder