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Wealth Building, Financial Freedom

This is something I wrote in Mar of 2015
The best way to build wealth is to buy assets that make money for you, and to live below your means and spend less than you make. Use those savings to buy assets and when those assets make money use that money for your spending. Letting your money to sit in a savings account and not having it work for you is a losing plan. What assest to buy? Buy money making things that are on sale (reduced), rental properties, dividend paying stocks, and or small businesses that is easy to run. If you had to work for that money than don’t spend it reinvest it.
TIP: don’t put all your investments in one category.
Always keep learning don’t stop teaching yourself how things work and how to make yourself better. Keep buying books, audio books, and info on the net. I like audio books, I like to listen to them on the way to work or when i have to kill time, might  as well learn  something. You need to learn about what dividend stocks to invest in, what rentals of real estate, and how to run a small business.
TIP: on small business, don’t let it run you, you run the business, create the systems to have the people to run it.

Tips for a Home Loan – Mortage

Here are some tips for getting a Home Loan – Mortgage.

Since the mortgage crash around 2006 – things have gotten harder to get a mortgage. Bad loans giving to people that couldn’t afford the home to begin with. Fraud on the loan docs as well didn’t help, appraisals coming in higher than real value, Mortage Brokers doing creative paperwork, and so on. Trust me it’s easier to get a loan on a car than a house. But the dream of owning a home is still out there:

Prepare to be asked alot of question, I mean a lot of question and paperwork needs to be copied and sent over to them. They are going to want all your personal information and paperwork to back it up like Credit Score, Down Payment, 2 years of taxes, Check Stubs, W-2, Driver License, Bank Statements, you might even need to get letters from your bank with a checking account and/or savings. Then if you are married then you can repeat this process for two, if she is going to be on the Mortgage as well.
If you have a scanner at the house with internet connection you will save a lot of time and headaches.
You can start saving and naming these files to your PC to save you some time later on.

Start getting everything ready now and keeping it all together so the process will be easier. As your bank statements come in and check stubs, start saving them in a safe place. When you do your taxes start putting your taxes in a special folder with your W-2 as well.

Credit Score – Start looking over your credit score and credit report, do you notice anything wrong or even missing? Hopefully your score is over 700 and also make sure you have 3 lines of credit on your account. This will build your credit as well. If something is wrong take the step now to fix it, do your research. TIP: if you getting a car DON’T not till you have the house first.

Down Payment – some banks want 10% others want 5% depending on the bank/lender and your file.
If you are buying a house for $100,000 then you have to put 10% down then you need $10,000 in cash for the down payment.  If you have to borrow this money then a few more question are asked.

Always get a second quote try a well known local bank and then a well known lender of home loans. Try your bank with your checking account as well. They can give you an idea of interest rate, and closing cost. Take notes and don’t be affraid to ask questions.