Mistakes Homeowners Make

(1) Not knowing exactly what there credit score is before they get pre-approved.
As a previous Mortgage Broker I am experienced with this frequent unawareness of people. When you begin to think that you are interested in buying a home. Find out immediately what your score is. Yes the Broker/Loan Officer will have to pull your credit but you need to know where you stand for yourself, so you know what you can and cannot do.

(2) Not settling or paying off collection accounts. Face it the days of collection accounts being ignored ended from the mortgage housing deep fall. It is important to be as pristine as possible when you apply for mortgage. Think like the bank. Why would they risk getting into a 15-30 year loan relationship to a person who will not pay their medical bill or old light bill. Opinions differ on whether or not to pay off collections. My opinion is either settle it and request removal or pay it off especially when buying a home because 1st it will effect whether you are approved for the home of your dreams or 2nd it will effect your interest rate or deposit requirement on a 15-30 year old. SETTLE AND DELETE OR PAY IT OFF.

(3) Debt to Income Ratio (DTI). You can analyze this before you even begin looking for a house. You need to know and be prepared to lower your debt to income ratio to determine what and if you can afford a house. DTI is your total debt figure divided by your income. For example if your monthly debt is $2000 and your income is $6000 a month then your DTI is 33%. The 36% Rule states that your DTI should never pass 36%. So you are in good position. There are ways to lower your DTI quickly. (a) Increase the amount you pay monthly toward your debt. Extra payments can help lower your overall debt more quickly. (b) Avoid taking on more debt. Do not go finance a car right before you are buying a house. (c) Postpone large purchases so you’re using less credit. Do not go out and finance a laptop on our Best Buy card (d) Recalculate your debt-to-income ratio monthly to see if you’re making progress.

(4) Believing you do not need a down payment. It is best to be prepared. Have 20% of price ready and available to help with financing your home. It is possible to get financing without anything down but with your Dream Home purchase you do not want to be ill prepared for all situations.

(5) Not having enough good tradelines. You say but Cynthia you said do not spend. Ok I am sticking to that, but you need tradelines to help improve and increase your credit score to get the lowest interest rate available at purchase. So have minimally 2 open tradelines but with low low low balances under 10% of the limit on that account.


How to live your best life?

#1 You got to put yourself in your Super Position.

To Be in your Super Position I am defining that as being away from all the negativity. It is going to be some dead bodies along the way but better them than you. Do not let nothing in this environment affect your positive mindset or have you upset. Stay in your Super You Position. Do not move for no one.

BTW Road Rage is not cute!

Anyone talking negative -you got to cut them short and if necessary cut them out. You cannot stay at the bottom forever and sometimes just talking to someone who enjoys being at the bottom can weigh you down

#2 Do a self-evaluation of self? What makes you the best you? Define and list it. Is it when the kids grades are good and they are at peace? If that is the case go to free tutoring. Instead f Xbox play games buy them education games to use on computer or smart phone. Play old time games with them when they get home. Scrabble or Monopoly. As a matter of fact have a family game night. If their smile make you smile-play with them. Is it when you bills are paid and no more collection calls. Then answer the phone and talk to bill collector. Tell them to remove your number from their list-DO NOT CALL LIST and to only contact you by mail. That is that. They by law have to stop calling you. What makes you unhappy? Then list what make you unhappy or sad! Eliminate it. If that is eating the same food every day, day in day out. Change it up. Stop eating chicken and switch it over to Salmon for a day or two. Is it that same ole tired ride to work. Change it up-go a different route see some different traffic. That change alone might make you day go happier.

This post was inspired by Deonte!


Living on a Budget Includes Food

This month I went to a food panty sponsored by same company Forgotten Harvest. It looks like food came from Meijer and a restaurant chain. I got 8 hams, 8 carton of eggs, 3 large packages of cheese, water, chocolate milk, 3 cabbages, tomatoes,

and a host of other things. So I’m spreading the wealth to friends and family.


You can bring your own food from home to eat in the airport & on the plane. The TRANSPORTATON SECURITY ADMINISTRATION’s only restrictions on food are: … Do NOT bring food to the security checkpoint unwrapped. Food must be wrapped or in a container.

So if you go to Popeyes before going to the airport have a container to securely put food in. IJS

Solid food items can be transported in either your carry-on or checked baggage, while liquid or gel food items larger than 3.4 oz are not permitted in carry-onbaggage and should be placed in checked baggage if possible, according to the Transportation Security Administration. Ok here is how you get it. You can bring an empty water bottle. The airports are now full of purified water fountains to fill out your water container. I learned this flying to Hawaii. Water was $2.00 a bottle. Nope I brought my own bottle. I had a lay over on the way there and back. I did not pay a dime for water. I am sure I saved $20.00 just for water. That money was used for an alcoholic pineapple drink, which were $20.00 a piece but worth it.

Items allowed for travel in your carry-on include baby food, bread, candy, cereal, cheese, chocolate, coffee grounds, cooked meats, cookies, crackers, dried fruits, fresh eggs, meat, seafood, and vegetables, frozen foods, gravy, gum, honey, hummus, nuts, pizza, salt, sandwiches, and all sorts of dry snacks; even live lobsters are allowed in special clear, sealed, spill-proof containers. I remembered being hungry on a flight to Dallas and swore this would not happen to me again. So I also brought my own sandwich and cookies.


Sorry Jordan But Not Sorry


“If you are spending first then try to save what is left over, you will often find that nothing is left over.” Cynthia Shepard

So what do you do. Face the music. You do not have enough money but that will change. First put aside money for self or that 6 month emergency fund. No matter the amount put it away. I have mine in a bank out of state with no DEBT card attached. Honestly I forget about it a lot.

Consider: If you put $100 toward your retirement each month — rather than spend that money — at the end of 20 years, you’d have roughly $40,000, assuming a 5% rate of return.

Then take care of your needs, which are: basic food, shelter and clothing. Sorry Jordans are not included in necessities and neither are lashes. Save that money or put into retirement fund no matter how little it appears to be right now, while sitting in that retirement account it is GROWING unlike the purchase of Jordans who have no monetary value once your pay for them.

Rather than racing to pay down your mortgage or student loans (assuming these are low-rate, fixed loans), pay them down on schedule and instead use that extra money to shore up your retirement funds. That way you are using money the bank or the government lent you to fund your retirement. (Sadly, I made the mistake of rushing to pay off some loans that could have waited, but it is a lesson I learned).

Roughly half of high-net worth investors say they have some tangible assets like investment in real estate or farmland that can produce income and grow over time in value.Try that even if you just buy a parking lot to lease to others. Start somewhere. Or you really trying to be aggressive rent out a room in your current house/apartment for a year to get some extra to put towards retirement or savings.

This is just my off the cuff ideas that I have tired and which have worked for me.

LIKE. COMMENT. SHARE (do all 3 for ME)

Knowledge is power.