Veteran Focused Benefit Alliance
Our Work Is Not Even Close To Complete
Our mission is to educate EVERY Veteran on the various debt elimination options available to them. Read some important articles below to learn more and contact us to get started on your path to true freedom!.
01
Before You Buy A Home...
If you’ve been looking to buy your first home, you’re probably aware that the housing market is booming.
Interest rates are hitting historical lows, and many homes are sold before you get the chance to make an offer.
You’re probably eager to get your foot in the door before the market changes.
Still, before you purchase your first home, you need a plan.
It’s easy to jump at the first opportunity you get, but it’s just as easy to get stuck in a mortgage that you can’t afford, or a house that you end up hating.
It’s important to take your time, especially as a first-time buyer. So, if you’re looking for a detailed guide to help you on your home-buying journey, keep reading!
Our comprehensive 9-step guide will cover everything you need to know before purchasing your first home.
Before you Begin…
Keep in mind that buying (and owning) a home is never as simple as your lender makes it seem.
Purchasing a home can be extremely rewarding, but you probably know how stressful it is too.
The truth is, your path to homeownership won’t be quite like anyone else’s. It’ll take a lot of research and consideration of your unique financial situation.
So, before you start checking off the boxes on our home-buying guide, ask yourself:
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• How much square footage do I want/need, and does it fit my budget?
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• How much money should I put towards my down payment?
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• Are home prices in my desired neighborhood increasing or decreasing?
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• Is the home a reasonable distance from my workplace?
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• Are the nearby schools a good fit for my family?
Overall, these questions are about nailing down a home that you’ll love for years to come. And like we said earlier—take your time.
On average, it’ll take around 5-6 months to find the right home, secure financing, and close on your purchase.
Without further ado, here’s our 9-step guide to buying your first home!
1. Check your Credit
Your credit score is the main determining factor that the lender will use in your mortgage calculation.
It’ll help the bank decide how much they’re willing to lend, and generally, a higher score will mean lower interest rates (more money in your pocket).
If you have a low credit score, finding a good deal on your mortgage will likely be more challenging.
Even if you think your credit score is good to go, take the extra time to review a comprehensive credit report.
Because your credit report is reported by not one but three credit bureaus (Equifax, Experian, and TransUnion), there could be errors that are driving your credit score down.
Generally, a score above 720-740 will be good enough to get you the best deal possible on your mortgage.
If your credit score is lower than that, it’s still possible to find a good deal, but you’ll typically need a score of at least 600 to qualify for most loans. For more on more low-credit mortgage options,
2. Review your Budget
Sounds fairly simple right? You’ve probably spent a lot of time keeping track of your finances already, but make sure to take another look.
Paying off your loan with interest will probably be your largest monthly expense. But there are a handful of other fees that can drive your costs up:
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• Appraisal fees ($400 - $1000)
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• Inspection fees ($250 - $500)
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• Document preparation/underwriting fees ($300 - $900)
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• Origination fees (0.5% - 1.5% of your loan amount)
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• Title/Title Insurance fees ($1,300 - $1,600)
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• HOA fees ($200 - $700, depending on location)
Those fees can add up fast if you’re not careful, and that’s not all.
You’ll usually have to pay for the transfer of your home’s title, plus any county/state taxes.
Plus, if you couldn’t afford a down payment of 20% of your mortgage, factor in private mortgage insurance (PMI).
Because a down payment of less than 20% makes you a risky debtor for your lender, you’ll pay PMI—typically 0.5% - 2% of your loan principal.
Overall, you’ll want to give yourself a financial cushion. Buying a home is almost always more expensive than you’ll expect.
3. Find a Good Realtor
Our guide can only do so much, and you’ll want an experienced realtor to help you along the way.
A whopping 88% of home buyers used a realtor’s services in 2020, and it’s easy to see why…
They’ll be able to help you determine an offer price, recommend good neighborhoods for your needs, provide market insights and more.
The best part about it? The seller will pay the fees associated with your realtor’s services.
4. Pre-Approval & Mortgage Structure
If you’re like most first-time buyers, you’re probably not purchasing a home in cash.
So you’ll have to get pre-approved and spend some time structuring your mortgage.
This step is crucial—without a pre-approval from your lender, you won’t know how much you can borrow and the seller won’t accept your offer.
And if you don’t take some time to structure your mortgage, you could lose thousands or hundreds of thousands.
Your lender will take into account your assets, income, and debts when determining your pre-approval amount, but the main thing you’ll want to focus on is your debt-to-income ratio (DTI).
To figure out your DTI, add up all your monthly debt payments and divide that number by your monthly income. You’re looking for a ratio lower than 43%. If your ratio is higher, it’ll be difficult to find a lender that will give you an offer.
In terms of structuring your mortgage, the most important thing you’ll need to worry about is your interest rate.
A difference of 0.5% or 1% over a 30-year loan term could make or break your bank account. See our blog on structuring your mortgage for more information!
5. Start Shopping
You’ve probably got a very specific set of wants and needs for your first home. You should prioritize the features you need, but it’s important to be flexible.
Chances are, you won’t find everything you’re looking for within your budget—most homeowners don’t.
Still, remember that your home is an investment, and you can make changes as you see fit.
Have your realtor send you home listings to suit your needs. They can set up showings for you as well.
Just keep the health of the home in mind.
Sure, your home can be a blank canvas ready for renovations, but it shouldn’t be falling apart either. Take a look at the home’s structural integrity, the condition of the roof, water pressure, and electrical issues.
If you’re not careful, these issues could end up making your dream home a nightmare.
6. Make an Offer
Like we said earlier, the home-buying process takes 5-6 months from start to finish, so if you’ve made it this far, congratulations!
One of your final steps is to make an offer. This is where your realtor comes in handy.
Your realtor should begin with a comparative market analysis (CMA).
Essentially, you’ll receive an estimate for a fair offer price depending on the price of similar homes in your area.
And don’t forget about earnest money.
Think of it as insurance for the seller. It’s a deposit to show you’re serious about buying the home.
When everything is said and done, that money will typically go towards your down payment.
7. Inspection & Appraisal
You can only see so much during your house showing, so it’s vital to call in an expert to inspect the home after you’ve signed the paperwork.
The inspector will check for any significant damage in the home, and they’ll typically give you more information on the guts of the home.
After an inspection, you’ll be able to ask the seller to pay for any damages.
Finally, the lender will send an appraiser after you’ve signed the mortgage paperwork.
This is where things can get tricky:
If your appraisal is low, your lender won’t approve your loan amount. In this case, you’d have to pay back the difference between the appraisal and your offer price.
If your appraisal is at your offer price, you’re good to go.
And if your appraisal comes in above your offer price, great! You’ll be buying a home below its market value.
8. Move-in!
This one is pretty straightforward. Close with the seller, set up your utilities, and enjoy your new home.
But before you go, we have one more step that we want to share with you.
9. Save from the Start
Home buying is never going to be an inexpensive task.
The problem is, you’ll end up paying hundreds of thousands in unnecessary interest payments by the end of your loan term.
We believe the home-buying process should be more about enjoying your first house than worrying about debt payments.
That’s why we created the Money Max Account.
It’s an all-in-one account and financial tool designed to help you get out of debt as soon as possible.
In as little as 7-10 years, you could have your first mortgage (and any other debts) paid off.
And while the Money Max Account works for anyone and everyone, it’ll help you save even more as a first-time buyer.
Why put more unnecessary interest in your lender’s pocket when you could spend your money on the things that matter: your family, your home, and your lifestyle?
The answer is pretty obvious, right?
The Money Max Account was created to help people everywhere save their money for the things that matter most.
Money Max has already helped homeowners save over $2 billion.
If you’re ready to add your debts to that number, visit our website or give us a call. Our representatives are standing by to answer all of your questions.
02
4 Ways To Safeguard Your Savings
There’s nothing like seeing some extra cash in your checking account.
Maybe you’ve been logging some extra hours at work or you got a bonus. Maybe it’s from a tax refund or a return on a wise investment.
The point is, you’ve got some money to spare.
If you’re like most people, it’s burning a hole in your pocket. In other words, you might be ready to spend. And while you could do that, we’re willing to bet that you’ve learned to be careful with your extra cash over the years.
Unless it’s something you absolutely have to have, why spend your cash straight away?
Chances are if you’re reading this, it’s probably because you agree! Of course, there’s a time and place for buying yourself and your family a gift…
But investing that spare change in yourself, your family, and your future is something else entirely, and it can lead to you making even more money. So, if you’ve got some cash to spare and you’re not quite sure how to make the most of it, keep reading! We’ll explain 5 ways you can put your cash to good use.
Consider your Budget First
We get it—if you know you have some extra cash to spend, it’s probably because you’ve already considered your budget.
Still, it’s worth taking a minute to learn about the 50/30/20 rule. It’s a good foundation for your budget, and it could help you decide where to put your extra cash to work.
In a nutshell:
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• 50% of your budget (after-tax income) should go towards your necessities: your mortgage payment, outstanding debts, car payments, insurance, etc.
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• 30% of your budget should go towards the things you want: a family vacation, going out to eat, shopping expenses, etc.
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• 20% (even more than 20% is better!) of your budget should go to investments, a rainy day fund, debt payments, retirement funds, etc.
Obviously, the 50/30/20 is just a starting point, but it’s a good one. Everyone’s budget is different, and you probably won’t be able to follow this budget all the time.
Just keep that 20% in mind! In most cases, the more money you’re able to set aside for smart investments, the better off you’ll be down the road. With that in mind, let’s dive into the specifics!
1. Create an Emergency Fund
An emergency fund is a must-have for anyone and everyone. Life happens. You could have an emergency, fall victim to a natural disaster, your home could need repairs, or your car could break down.
The truth is, the list of things that can go wrong is endless. The best you can do is be prepared for it. Even if it means starting with a few hundred dollars—any amount of cash you can set aside is better than nothing.
So, consider putting some or all of your spare cash into an emergency fund. A general rule of thumb is to have 3 - 6 months of living expenses covered by your emergency fund, but a full year’s worth of cash is even better if you can manage it.
You can think of it as investing for your future… just don’t put your emergency fund into your investments.
Some people put their emergency cash into mutual funds or investment accounts. Bad idea! An emergency fund is a rare instance where you need to let the money sit because you need to have instant access to it at all times.
2. Invest in a Brokerage Account
This is where your money really starts to go to work.
A brokerage account is easy to set up, generally free to use, and you won’t be penalized for withdrawing your cash like you would with some mutual funds and retirement accounts.
The thing is, investing in stocks with a brokerage account is a gamble. That means you can win big, or lose a lot.
So, you’ll have to do some serious research before you start investing. If you don’t have much cash to spare, low-volatility (low risk) stocks are your best bet. Look for stocks that suit your interests, and keep an eye on them.
And when you do make some cash on your investment, be aware that capital gains (your investment profit) generally come with a significant tax.
Still, investing with some research and a little bit of patience, you could turn your extra cash into even more cash—plus, you can turn it into a hobby.
3. Boost your 401(k) or IRA
Remember what we said about investing for your future?
Well, a 401(k) or an individual retirement account (IRA) are both great options for boosting your savings later in life.
One of the benefits of a 401(k) is that they’re generally tax-deferred. Your employer will offer a few options to choose from, typically they’ll match a percentage of whatever you put into the 401(k), and you’ll only pay taxes on it once you start withdrawing funds.
An IRA works a little bit differently. It’s an investment account that you manage yourself rather than your employer. Because you manage it on your own, you’ll have a lot more investment options. Plus, your IRA could qualify for tax-free withdrawals.
The downside of an IRA is the contribution limit. As of 2021, the contribution limit for an IRA is $6,000 per year, whereas the annual limit for a 401(k) is $58,000.
With either investment option, the general rule is you won’t be able to withdraw your cash until you’re 59 and a half years old. If you do, you’ll likely be penalized by the IRS.
4. Pay off your Debt…
Our final and most important tip for spending your extra cash is to pay off your debts.
We get it, paying off your debts is the last thing you want to spend your extra money on. But if you have a mortgage, student loans, a car payment, or any other outstanding debt, you’ll know what we mean.
And what do all debts have in common?
Interest! It funnels thousands of dollars of unnecessary payments out of your bank account and into your lender’s pocket.
So, it’s worth putting a few hundred—or a few thousand—dollars towards paying off your debts. The less time you spend paying them off, the more money you’ll save.
But the trouble is, you’re probably locked into a 15 or 30-year loan term. Your extra cash is just a drop in the bucket, right?
Investing in the near future
When we talk about ‘investing in your future you probably think in terms of 10, 20, or 30 years from now.
And on that timeline, your bonus cash is just a drop in the bucket for your lender. The interest will just keep adding up…
If you let it.
But we have another idea. What if investing in the future meant the near future. We’re not talking 15 or 20 years—we’re talking 7 - 10 years.
Well, now you can, with the Money Max Account by United Financial Freedom. It’s an all-in-one account that really can help you pay off your mortgage, car payment, and every other debt in as little as 7 - 10 years.
That means you can keep your extra cash for your investment in yourself, not your lender. Plus, you can save thousands or even hundreds of thousands in interest payments.
How’s that for extra cash?
The Money Max Account works by carefully tracking your payments, expenses, and income around the clock. Then, it uses advanced banking algorithms to find the quickest way out of debt for you.
24/7, 365 days a year—Money Max calculates and consistently updates your ideal debt payment, telling what debts to pay and when to pay them. And unlike your lender, you have the final say about where your money goes—that’s what the Money Max Account is all about.
You end up with a strategic debt payoff system that has already helped people across the country save over $2 BILLION in debt payments.
03
Avoid Bankruptcy
Going through the filing process for bankruptcy is one of the most truly terrifying things any homeowner can experience. Even thinking about it probably makes you uncomfortable.
And that feeling is for good reason…
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Getting out of debt is hard enough. Getting out of bankruptcy is something else entirely—it can be one of the most difficult challenges anyone will ever face.
It’s like trying to climb out of a quicksand.
But there is something you can do about it. Avoiding bankruptcy starts with making wise financial decisions and can end with you getting out of debt entirely if you make the right choices.
If that sounds like a good deal, keep reading! We’ll give you 5 tips for avoiding bankruptcy, as well as a pro tip for unlocking your entirely debt-free future.
The Consequences of Bankruptcy
Let’s start with the potential consequences of filing for bankruptcy.
First of all, your credit score will drop significantly.
As a result, you won’t be able to borrow money at market rates for up to 10 years. This is what we mean by ‘climbing out of quicksand’—if you have to borrow more, you’ll go even deeper into debt.
You may be required to attend credit counseling or financial education classes as well, but that’s not the worst part.
If you file for chapter 7 bankruptcy, your lender could take certain possessions to pay back your debt. These possessions can include jewelry, collectibles, antiques, second homes, boats, RV’s, and artwork.
For more on the consequences of filing for bankruptcy, click here.
1 . Start with your Budget
Now, let’s dive into the strategies you can use to avoid bankruptcy…
If you’re like most people, your lifestyle revolves around your budget. Of course, if you don’t budget effectively you run the risk of going bankrupt eventually.
If you catch the problem early, there are a couple rules you can follow to keep a tight, effective budget:
• The 28/36 Rule: Essentially, you’ll want to spend no more than 28% of your gross monthly income on your monthly mortgage payment, and no more than 36% of your gross monthly income on housing-related expenses and other debt payments (car loans, student loans, credit card payments etc.)
• The 50/30/20 Rule: This rule states that 50% of your budget should go to necessities: utilities, rent or mortgage payments, insurance, car payments, and other debts 30% of your budget should go to the things you want: a family vacation, going out to eat, a new cell phone, etc. And 20% should go towards investments: any brokerage/investment accounts, your 401(k), savings bonds, etc.
These are great rules to follow at first, but the truth is, you might need to take more drastic budgeting measures if you’re worried about bankruptcy. Consider:
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• Refinancing your home mortgage
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• Selling your home and downsizing
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• Sell your recreational vehicles
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• Don’t go on vacation
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• Withdraw money from your investments/retirement accounts
These aren’t considerations anyone wants to make, but that’s the unfortunate reality of debt and bankruptcy.
Your lender won’t stop trying to get their money back—so, you may end up losing many of the items we mentioned anyway.
2 . Negotiate with your Lender
If you tackle your debt problem early, your lender may be more willing to work with you at the negotiating table.
You can think of bankruptcy as a lose-lose situation for you and your lender in most situations.
Obviously, you might lose a lot of money and assets, and your lender typically won’t get all of their cash back.
So, if you talk with your lender they may allow you to extend your payment period, reduce your monthly payments, waive your late fees/increased interest, or accept a sum of money less than what you owe…
3. Consider Debt Settlement
Debt settlement should be one of your last-ditch efforts to avoid bankruptcy. Essentially you’ll be negotiating with your lender to pay off a certain percentage of your outstanding debt.
For example, your lender might agree to let you pay off $5,000 of your $10,000 to save you (and your lender) the impacts of filing for bankruptcy.
There are a couple things to be aware of with this method…
Many people utilize a debt settlement company to negotiate with their lender. This can help you get a successful settlement without the headache of doing it on your own, but you’ll likely owe fees after an agreement is reached.
Most debt settlement companies ask you to stop paying off your monthly debts so you can save up to pay off part of your debt in a lump sum. As a result, your credit score will probably take a hit.
4 . Consolidate your Debts
Debt consolidation is one of the best decisions you can make if you’re in any amount of debt—not just if you’re nearing bankruptcy.
Essentially, debt consolidation combines all of your ultra-high interest debts, and you pay them off with a single low-interest loan.
The result is some or all of your debt paid off in less time than you probably expect.
So, what’s the catch? Well, when you consolidate your debts, you’ll free up a lot of cash…
That makes spending that extra cash a slippery slope. So, you’ll need to stay on top of your budget.
5 . Secure your Financial Future…
So, what if there was a method that took the guesswork out of budgeting, spending, and paying off your debts?
What if there was an all-in-one debt consolidation account that could track your debts, expenses, and payments, giving you a debt-free future in as little as 7 - 10 YEARS with NO changes to your current lifestyle?
Well, you’ll be glad to learn there is!
It’s called the Money Max Account, and it really can help you pay off every single one of your debts in as little as 7 - 10 years!
In fact, Money Max has already helped people just like you save over $2 BILLION in mortgage payments and other debts.
So, how does it work?
Well, it starts with debt consolidation. Your debts go into the Money Max Account, and it uses advanced banking algorithms to tell you how much you should pay and when you should pay.
By using this strategic payoff method, you can be out of debt in less time than you ever thought possible.
Not to mention, Money Max saves you the headache of budgeting. It does that for you too!
That means you won’t have to think about bankruptcy ever again—if you play your cards right, you won’t have to think about debt either!
Your debt-free future is sitting right in front of you…
Are you going to seize this potentially life-changing opportunity?
If your answer is yes, good choice! We’re ready to help you get started on the path to a secure, comfortable financial future.
