How Much Cash You Need To Buy A Home

Are you contemplating buying a new home? If so, have you ever considered how much cash you will need to have on hand? Many consumers would love to buy property, but find that their budget will not support the major expense. Of course, the cost does not deter some consumers from turning their dream into a reality. Regardless, if you are going to take out a mortgage, you will need a significant amount of cash on hand. Below, you will discover a list of factors that will help you determine your cash needs.

Average Down Payment

The average down payment requirement for a home is 20 percent. However, there are factors that can help reduce this amount. These factors include you income and credit history, as well as the lending program. If you have a high credit score, you may not be required to make such a large down payment. If your income falls within the median range, you could qualify for a lower down payment.

According to recent government data, the median household income in the United States is $56,500. About half of all Americans will fall above this amount and the other half will fall below. The lender will help you determine if you qualify for a lower down payment.

Poor Credit History

As mentioned above, a low credit score can impact the amount of cash you will need for a down payment on a new home. In fact, some lenders will require a down payment of 20 percent or more, if your credit score is between 300 and 629, it is consider bad. A credit score between 630 and 689 is consider fair, score between 690 and 719 is good and 720 and 850 is excellent.

Better Interest Rate

While some consumers do not have enough cash on hand for a down payment, others have access to plenty of cash. If you have most of the cash and only lack about $2,000 you could always take a short-term loan. This will give you enough money for the down payment, so you there will be no more excuses not to buy a home. The experts at offer fast cash for emergencies and other purposes.

Paying more down on a home can help lower your interest rate. Even if the lender you are working with requests a lower down payment, it would be in your best interest to pay more.

Mortgage Insurance

Consumers who are strapped for cash, but have a high credit score can save money by just agreeing to pay mortgage insurance. The purpose of this insurance is to protect the lender from financial loss associated with a default of a loan. This is when the buyer does not make mortgage payments. Of course, this is something that no consumers want to do, because it will have a negative impact on the credit score.

Mortgage insurance is beneficial to homebuyers as well. It helps them lower their down payment and many lenders will automatically remove the insurance after 20 percent of the loan is paid off.

Why File for an S-Corp Before Your Make Your First Dollar

An S-Corporation or S-Corp is a common type of business entity in the United States. Incorporating your business means more protection of your assets as well as avoidance of double taxation.

Visit for a simple and fast way to fill out and submit an S-Corp application. Gov Doc Filing has experts available to answer any questions that may arise before, during, and after the application process.

Advantages of an S-Corp

An S-Corp offers its shareholders (owners) the same limited liability offered as C Corporations. This means that the owners are not personally liable for the corporation’s liabilities and debt. However, an S-Corp has what is called Pass Through Taxation. S-Corps do not pay taxes itself but passes it on down to the owner’s personal tax returns where they report both profits and losses of the corporation.

In addition to limited liability and Pass-Through Taxation, an S-Corp provides easy transfer of ownership. This ownership transfer takes place through the sale of stocks. An S-Corp also does not have a limited life. In the event of a disabling accident or death of the owner, the corporation does not cease to live.

With an S-Corp, the capital is raised more easily. This is accomplished through the sale of stock. An S-Corp is also considered to be legitimate/professional than other entities. As an S-Corp, you have the ability to save self-employment taxes. This is due to the owners having the ability to classify themselves as employees.

Quick, Reliable, and Safe

To ensure you get all these benefits and more that are offered with an S-Corp, it is important to file for S-Corp prior to the company making any money.

To quickly apply for an S-Corp classification, head on over to GovDocFiling online. Their simplified application is processed through a secure connection and delivered to you fast through your email.

How A Family Can Survive On One Income

So your family is thinking about going from two incomes to one? Maybe you’re having a kid and one of you will stay home with the baby. It might seem scary to think about losing a big chunk of your family income. I know a lot of people feel like they can never make it work, but it is possible on almost any income.

It just takes work. It takes planning and, in many cases, sacrifices. What exactly does that look like? Follow these nine steps and your dream of staying home with your kids and making it on one income will become a possibility.

  1. Plan

Making this adjustment will require planning for most families. It can be pretty difficult to go from two incomes to one overnight so start living off one income before you make the change. See how you are doing. See what sacrifices you are making and how comfortable that is for you. And while you are doing this, you get to save.

  1. Get your finances in order

This means you should have a budget. A budget allows you to prioritize what is important and what isn’t. You should also be debt free (or close). Whether it’s credit cards, student loans, or something else, debt will just be a drag on your ability to make it on one income. And finally, have a secure emergency fund. Life will happen, and you don’t want to go back in debt when the hot water heater goes out.

  1. Live within your means

Your goal isn’t to keep up with the Joneses. It’s to stay home with your baby. Make sure your biggest expenses- such as your house, your cars or travel- make sense for your budget and your lifestyle. After all, what is most important to you?

  1. Buy used

Craigslist. Facebook marketplace. Consignment sales. Whether it’s big ticket items like cars or furniture or maybe it’s just clothes, particularly kid’s clothes, buy used. You’ll save big and after a few months (or less) you won’t notice the difference.

  1. Shop for deals

Outside of your rent or mortgage, think of other big expenses every month or every year. Homeowners insurance (if you own your house), auto insurance, health insurance. Put some time in to looking for the best deals for what you need. That savings could go a long way.

  1. Look for free entertainment

You need to get out of the house, but, fortunately, not everything that is fun costs money. Focus on the free entertainment around you. Parks. Libraries. State parks. Maybe you live near the beach or a lake. There is a lot your family can do and memories you can make without emptying your wallet.

  1. Side hustle

Just because you are staying at home doesn’t mean you can’t make money. Maybe your employer will let you do some side work. Maybe you can freelance. Or you can be part of a multi-level marketing team.  You can watch kids at your house. There are lots of options today.

  1. Have some fun money

While you are making sacrifices, you also need to have fun. It should be within reason but have money for a date night or a fun activity with the kids. Or maybe there is just something you love that you don’t need but you don’t want to give up. That’s okay. This will help you stay grounded.

  1. Remember your why

This is what will make staying at home possible. Why are you doing this? What is your reason for staying at home? If you think about that, especially during difficult times, it will make it all worth it.

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