36 The Queens Courier • banking & finance • april 11, 2013 for breaking news visit www.queenscourier.com Tips on buying and financing your first home For many younger Americans, the dream of owning their first home is still alive and well. Here are some tips from FindLaw.com, the nation’s leading website for free legal information, on how to get started. Save aggressively for your down payment. Many first-time homebuyers seek a mortgage insured by the Federal Housing Association, which insures loans made by lenders for qualifying homebuyers. The program allows you to put down as little as 3.5 percent of a home’s cost. Get your finances in order. Lenders are taking a close look at debt-toincome ratio (percentage of monthly income that goes toward debt payments) and housing-to-income ratio (percentage of monthly income that goes toward housing payments). Clean up your credit report. Your credit score is critical to your mortgage application. The higher your score, the more likely you can qualify for a mortgage and obtain favorable terms. Don’t apply for credit. In general, it’s not a good idea to take on more debt such as an auto loan or a new credit card within a year of buying a home. Shop around for your mortgage. Compare proposals from at least three or four different lenders. First-year expenses. You should consider putting away an additional $5,000 to $10,000 for expenses such as a lawnmower, furniture and basic decorating, and for potential repairs for the furnace, water heater and other appliances. Shop around. It’s important to shop around to get the best home possible for your dollar. And likewise, it’s critical to shop around for a mortgage too. Get at least three to four proposals from different mortgage lenders before deciding on the best offer. Home inspection. Even if you’ve come across the deal of a lifetime, never buy a house without a home inspection. An inspection will alert you to potential problems that may not be obvious to a person buying his or her first home. It also may be useful if you need to sue the seller for concealing problems with the home. Courtesy ARA Content Protecting your nest egg from virtual crows Calling your retirement savings a “nest egg” is meaningful on many levels. Just as birds labor hard and long to create a secure roost, you and your mate work hard to provide for yourselves during your golden years. And just as crows and other invaders can come along to rob a bird’s nest, your nest egg can be at risk from predators like identity thieves and scammers. One out of every five people older than 65 - 7.3 million Americans - has been the victim of a financial swindle, according to a survey sponsored by the Investor Protection Trust. Identity theft statistics are also alarming: In 2010, more than 1 million people older than 65 were targeted by identity thieves, according to the Bureau of Justice Statistics. Factor in everyone older than 50, and that number soars to more than 3.5 million. According to the FBI, seniors may be targeted because: • They are less likely to be technically savvy about online predators. • They tend to be more polite and trusting, and may be less likely to recognize a phone scam. • They may be unaware who to report a crime to if they’ve been defrauded. • They often have large nest eggs to protect. Fortunately, you can take steps to protect your nest egg. Avoiding phone scams First, always know who you’re giving your money to. Never invest with someone who “cold calls” you on the phone claiming to have a great investment opportunity. Be especially wary of “companies” that have no physical address and operate out of a P.O. box or website. And remember, be suspicious if an investment promises amazing returns. If something sounds too good to be true, it often isn’t true at all. Never give your bank account, Social Security Number or credit card number to someone who calls claiming to be a bill collector. The law requires bill collectors to provide you with documentation of a debt. Request documentation and thoroughly check out any claims that you owe money. If you have any doubts about a phone call you’ve received, talk to friends or family members who know something about investing. Never trust a stranger you’ve just met on the phone more than the people in your life whom you know care about you. Guarding against identity theft In addition to being aware of investment scams, you also need to take steps to prevent identity theft. The Federal Trade Commission recommends that everyone monitor their credit report regularly to detect signs of identity theft quickly. Services like ProtectyMyID monitor your credit report on a daily basis to help you detect, protect against and resolve instances of identity theft. In addition to monitoring your credit, you can help protect your identity with these measures: • Safeguard your Social Security and Medicare cards. Never carry your Social Security card with you. Store it in a safe, locked location. Be wary of who you give the number to. If a merchant or health care provider wants it, ask why they need it and if they will accept an alternate form of identification. • Arrange to have all income checks - Social Security, interest dividends, pension payments, 401k withdrawals, etc. - deposited directly into your bank account. Never have a check mailed to your home, where it could be stolen from your mailbox. Courtesy ARA Content banking & finance s
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