Category Archives: Money

Can You Qualify for a Mortgage?

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The news is filled with cautious indications that the housing market may be beginning to rebound. However, many lenders are still very careful about extending credit to anyone who may be too big of a risk. They learned their lesson after the crash of the mortgage market which resulted in so many foreclosures that some banks couldn’t even manage them all. This leaves most people wondering whether or not they could qualify for a mortgage in today’s market.

The best way to answer that question is by staring with an honest and thorough assessment of your financial situation. Begin by calculating your net worth, listing all your assets. You should also figure out your regular expenses, not just monthly, but any quarterly, semi-annual, or annual payments that must be made. You will then look at your projected income as well as your credit history.

There are a bunch of tools available to help you with this online. You can request a credit report from the three credit bureaus. You should also be able to find a Mortgage Loan Calculator , a debt to income formula, and other credit and mortgage tools that will help you assess whether you really can afford a mortgage and how much of a house you can buy without putting a strain on your finances. Since many lenders use these same tools, as long as you have a clean credit report, good credit score, and get good numbers when you use the calculators, the odds are that you will qualify for a mortgage and can begin looking for a new home.

Your Social Security Disability Benefits

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The Social Security Administration was founded in order to provide financial support to citizens when they are no longer able to work. This includes those that retire as well as those who are seriously injured or ill and unable to return to their job. In the latter case, the ability to draw regular benefits is crucial to their ability to survive and support their families.

Unfortunately, the process of qualifying for social security disability benefits can be extremely complicated. This is a direct result of rampant abuse of the system in previous decades. At times it can make someone with a legitimate claim for disability feel like they are a criminal and undeserving of help. The same safeguards that are there to discourage fraud end up discouraging those who most need the benefits.

There are numerous organizations and attorneys who are willing to help disabled workers make their way through the complex claims process. This applies to people who have had their previous claim for benefits denied. Most cases that are denied are entitled to an appeal, which can result in the eventual awarding of benefits, if handled properly. There is nothing wrong with seeking help from those more familiar with the bureaucratic procedures involved when it’s a matter of a family’s financial survival.

Debt Consolidation is Not a Magic Cure-all

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With the collapse of the credit industry in 2008, many people were left with staggering amounts of debt in an economy with fewer and fewer jobs. Credit companies suddenly raised interest rates and became less willing to negotiate late payments and skipped payments. This has led many people to believe that debt consolidation is the best bet to get them out of trouble.

The reality is that debt consolidation is not a quick fix to anything. For those with significant amounts of debt, consolidation can lead to a long and difficult payoff process. Many people are misled into believing that combining their debt into a single loan and loan payment will automatically result in both lower payments and a shorter payoff term. The reverse is just as likely to occur: a larger payment and longer term due to higher interest rates and loan fees.

Individuals who are considering debt consolidation need to be extremely cautious before committing to a consolidation program. They may want to consider other options that might produce better results for their specific debt profile. Some of these include taking out a home equity loan or transferring debt from higher interest cards to one with lower rates and fees. The main thing they need to do is educate themselves both on the company offering consolidation, including the terms of their consolidation offer, and the other options available to them, including bankruptcy.