Five Financial Tips to Keep You on Track–Stacie Kvanvig

The mortgage and lending climate has never been in such turmoil since I have been selling real estate. They have lent to substandard borrowers, lost loads of money and don’t want to lose anymore of it. As a result, lending requirements have become very stringent and buyers better have a plan.

Whether a buyer has a 20% or a 3.5% down payment; are doctors or teachers, borrowers need to have a solid financing plan. Having a plan is more than just the down payment and the ability to maintain a monthly mortgage. Banks and lenders are looking very closely at sources of down payments, reserves, tax returns, open credit accounts, and as usual credit and employment histories.

Here are some simple steps to help get and keep you on track so that you can be that perfect borrower that banks want.

Five Financial Tips to Keep You on Track

Use these ideas to help you save and stay on the right track

RISMEDIA, May 10, 2010—With the economic hurdles over the past 18 months, it’s easy to see how some people may have lost their financial way.

Rather than making drastic changes, sometimes the best route to financial security is setting small, yet achievable goals.

Here are five ways to keep your finances on track, according to smartypig.com:

Know your credit score
Good credit is the foundation for achieving financial goals. It’s crucial to stay on top of your score. Services such as Equifax can tell you where you stand. If outstanding debt has lowered your score, start paying it down, prioritizing high-interest debt.

Define specific savings goals
General savings accounts are great, but experts say that saving is easier with specific goals because you visualize the prize rather than the process.

Cut up credit cards
According to Experian, the average consumer carries 4.5 pieces of plastic—4.5 potential paths into debt. By eliminating extra cards, you limit opportunities to spend money you don’t have. Start with cards that have high rates or punitive fees—then use your scissors! Canceling cards can impact your credit score; cutting them up makes them just as inaccessible.

Increase your 401k by 3%
You already know that you should contribute as much as possible to your 401k retirement savings plan—especially if your employer matches. An easy way to boost that savings is by increasing your contributions by a minimum of 3% each year. As your career progresses and your salary increases, it’s unlikely you’ll miss the money.

Make a date with your finances
Most of us are too busy to tackle anything but the most necessary financial assignments. Set aside time for crossing items off your financial to-do list. Do what works for you whether it’s annual, quarterly or monthly appointments, though it helps to schedule this time when banks and other institutions are open. Time spent finding high-yield savings accounts, better insurance plans, and no-fee cards results in money in your pocket.