January 2018 // Real Estate & Home Builders Guide // 19W
Personal finance
resolutions 2018
So, as we move into 2018, and everyone
heads back to the gym and goes back on
their diets, here are some personal financial
resolutions you might want to make:
By Ilyce Glink
and Samuel J. Tamkin
Tribune Content Agency
H
ome buyer demand is the strongest
since 2000, according to a new
survey from Genworth Mortgage
Insurance. And, according the
National Association of Realtors, home
prices have risen 40 percent over the last
five years, while income has barely budged.
That means home buyers who focus on
their personal finances are going to be the
winners, because they will have the means
to make fast, substantial offers.
But as millennials are still struggling
under the weight of massive student loans
(only 55 percent make their payments on
time, according to the latest research),
getting your finances together enough to
buy a home could be more difficult than
imagined. Mortgage lenders follow strict
guidelines that limit how much debt you
can carry relative to your income.
1
. Bulk up your savings. How much do
you want to save this year? Do you have
a “magic number” that will get you into
a home? Whatever the amount is, write
it down, and then reverse engineer the
process of saving to that specific number.
In other words, if you want to save $1,000
by the end of the year, you’ll need to save
$2.74 each day in order to get there. If you
want to save $10,000 by the end of the year,
you’ll need to save $27.40 per day. Under-
standing how numbers work is the first step
to achieving your financial goals.
It may not be as much fun as blowing a
chunk of change at a restaurant or shopping
mall, but if you learn the art of “deferred
gratification,” you’ll soon find that the cash
is piling up, which should encourage you
. Pay down as much debt as you can.
As long as mortgage lenders require
borrowers follow strict rules regarding
debt-to-income ratios, you’ll need to focus
on your debt repayment strategy.
Low interest rates help. Lenders look at
how much of your gross income you spend
paying down your debt each month (called
your “debt service”) and they compare
that to your income and other required
$229,900
UMATILLA
RMLS
#17673125
HERMISTON
• 3 bed/1 bath
• Stainless steel appliances
$159,900
HERMISTON
UMATILLA
RMLS
#17004218
• 3 bed/2 bath
• Large covered back patio
3
. Watch your credit and credit cards. Sign
up to get auto-alerts from your credit card
company so that you’ll see each charge (and
can help with fraud protection in case you
didn’t make a charge) as it comes through.
Seeing each charge come through (especially
those that are on auto-renew each month or
year) gives you a sense of your spending in
real time. And, serves as a reminder to find
way to chop down your spend.
4
. Get your paperwork together. Lenders
want to see your docs. They want to
verify tax returns (especially if you’re
self-employed), see bank account statements,
divorce decrees and other items. Even if you
are going to provide these in an encrypted
electronic file, you’ll want to get those copies
in one place so that when the time comes to
apply for your loan, you’re ready.
Remember this: Whether you hit your
goal exactly by the end of the year is largely
irrelevant. What you’re trying to is build a
foundation of financial stability, with good
money habits, that will last you a lifetime.
CLASSIC HERMISTON HOME
• 2,048 sq. ft .
• 4 bed/2 bath
• ~400 ft . cellar
• Detached 3 car garage or shop
Call Bennett at 971-237-1403
$249,000
BRAND NEW CONSTRUCTION!
monthly payments (such as any spousal
or child support you’re obligated to pay).
When interest rates are low, your required
payments are less, which helps your overall
debt-to-income ratios. Getting your debts
paid off as quickly as possible will help too.
RMLS
#17566985
RMLS
#17055594
• Vaulted ceilings
• Open concept fl oor plan
Call Shirley at 541-561-7434
2
$132,000
LOTS OF UPDATES INSIDE & OUT
• Updated kitchen & bath
• New windows, roof & fl ooring
Call Nancy at 541-571-1723
to keep going. Try to find ways to save
everywhere. On one of Ilyce’s radio shows,
a listener told her that she still goes to
restaurants with her family, but no one gets
a drink other than water: no alcohol, no
sodas. Doing that shaves about one-third
of her bill, and helps her save more than
$1,000 every year.
Saving opportunities abound. Whether
you’re saving $5, $50 or $500, every time
you don’t spend money, you’re saving it. So
look for ways to trade out more expensive
options for less expensive or free options
in your category of expenses where you
spend the most discretionary cash. For most
folks, that’s typically your entertainment
spending, whether it’s concerts, movies,
date night, or eating out as a family. If you
can cook more from scratch, and bring your
lunch instead of buying it, you’ve got the
potential to save thousands of dollars a year.
Wayne Christianson
Bennett Christianson
Shirley Parsons
Principal Broker
Owner, CNE
541-992-0288
Principal Broker
Owner,CNE, SFR
971-237-1403
Nancy Walchli
Stephanie Hughes
Broker, GRI
541-571-1723
Broker
541-720-9769
Broker
541-720-1192
Melissa Mercer
Jessica Jacobson
Broker
541-701-4408
Broker
509-948-7714
Jacque Noland
Principal Broker
GRI, ABR
541-561-7434
24 HOUR LAUNDRY MAT
• Great location
• Bldg. only, reduce by $40,000
Call Sherie at 541-720-1192
• Lots of parking, storage bldg.
• Being off ered as business
Sherie Britt
541.289.4663
702 E. Main
Hermiston, OR
Oregon Licensed Realtors
Broker
541-701-7098