Angela Bergin | Flavin & Flavin Realty | Quincy,Braintree,Milton,Weymouth,Dorchester,Hingham RE


Being self-employed comes with a lot of perks. Self-employed workers often have the freedom to set their own schedule, work from home, and take breaks whenever they feel like it. They also have the ability to write things off as business expenses on their taxes. When it comes to buying a home, this last perk can become a huge problem. If you own your own business or work as a freelancer, odds are you'll be deducting things from your taxes that the average employee doesn't: travel expenses, advertising, licensing, equipment, repairs, or even rent for your office. When tax season rolls around, all of these deductions feel like a godsend. But if you plan on buying a home, all of these costs will appear as negative income. For people who spend a lot of money on their business or freelancing, it could do a lot of damage to your apparent income when lenders take a look at your finances. However, you do have options when it comes to getting approved for a mortgage that is to your liking. In this article, we'll cover some tips on how to apply for a mortgage when you're self employed to give yourself the best chance of approval.

Carefully document your income

When you sit down with a lender and hand them your proof if income, you want to make it as obvious as possible that you're earning money in a reliable and predictable way. Lenders will want to see multiple documents that can help paint a better picture of your income and finances, including:
  • Bank statements
  • Schedule C tax forms
  • Profit and loss tax forms
  • Completed tax returns
  • Credit score (they will run a credit check)

Separate your business and personal finances

If you own your own business, you likely have business banking accounts you use for expenses and invoices. But freelancers and contract workers often simplify things by just using their personal checking and savings accounts for income. To make things clear for lenders, you should put your income and business expenses into a separate business account. Not only will this make it easier for lenders to quantify your income, but they can also use this information to see that your expenses are for helping your business rather than personal spending.

Timing is everything

There are a number of factors that go into choosing the right time to apply for a mortgage. Being self-employed only complicates the matter since your income might not be as steady as your average wage worker. You'll want to commit to a mortgage at a time when you've had at least two consecutive years of good, reliable income. You'll need to prove this with the aforementioned documents (bank statements, tax forms, etc.). Part of this planning could be to avoid large business expenses in the two years leading up to your mortgage application. This isn't always possible, of course, but it could be enough to boost your apparent income to get you approved for a better loan.

Seek specialized lenders

Some lenders are aware that there is a large portion of the country made up of self-employed workers and small business owners. They go out of their way to work with people who are self-employed so they can give them fair deals on their mortgages. To find specialized lenders, you'll have to do some research online, but it could make all the difference when it comes to getting approved for the loan you're looking for.

Being a homeowner comes with a lot of responsibility. You'll need to keep up with your bills, cleaning and maintenance, and have a keen eye for managing your finances. What many people don't tell you when you buy a house is that you could also become the victim of scammers who specifically target homeowners. Like computer viruses, scams are constantly evolving to stay one step ahead of the game. However, many of them rely on behavior that should raise a red flag for homeowners. In this article, we'll cover some common scams that affect homeowners and tell you how to avoid them to keep you, your home, and your wallet safe.

You've won!

Congratulations! By reading this article you've won an all-expenses paid trip to the destination of your dreams. One of the most common scams affecting homeowners come in the form of phone calls, mail, or even door-knockers informing you that you've won some kind of prize. Unless you've specifically entered to win a certain prize, you can almost be certain that this is a scam.

Identity crisis

We've often heard of the dangers of identity theft, but homeowners in particular are an at-risk demographic. Identity thieves attempt to steal your personal information in order to commit fraud or crimes. To avoid identity theft, be responsible with your mail. Always shred mail with personal data and be sure to have someone take care of your mail for you when away from home for extended periods.

I noticed your roof needs to be repaired

Many scams come in the form of people knocking on your door to offer a great deal on a service. People who solicit you and ask to be let into your home or onto your property to "inspect" part of your home should never be allowed in. They may actually be a roofer attempting to convince you to repair your roof (regardless of whether it needs to be repaired). Or, they could be a would-be burglar scoping out your residence. These scammers will attempt to sell you anything from "subsidized" and "energy efficient" home energy products all the way down to fixing imagined water/moisture issues in your basement.

Make $60k a year working from home!

Work-from-home jobs do exist, and they're growing in number as technology makes it easier and more efficient than traveling. However, some job offers are too good to be true. Be wary of job offers that require you to enter personal information like your social security number before ever having met the employer. Many of these "too good to be true" jobs can be spotted when they ask you for money to get started. They may say to need to pay for your own training but then can make thousands, or will ask for a company buy-in that will pay off later. Regardless, never give money to a potential employer.

I came to read the meters

Someone in a safety vest with a name tag and clipboard knocks on your door and says they're from the energy company, water company, etc. They seem legitimate and tell you how important it is to have your meter read. The might even say you're eligible for a refund or subsidy. It's important to always ask representatives to show you their ID or ask them to call and make an appointment before letting them enter your home.

It's no surprise that buying in bulk is cheaper. Manufacturers can offer you the same items with less packaging and fewer processing steps. Then, at the store, less time is required for employees to stock these items onto the shelves. Basically, bulk buying is a win-win for everybody. Knowing which items to buy in bulk, however, is a bit trickier. We would all buy everything in bulk if we had the storage space in our homes or a cart big enough at Walmart. There are certain home goods you can count on for always being smarter to buy in bulk. In this list, we'll cover the top bulk items that are worth the space in your closet and where to find them. 1. Toilet paper, paper towels, and napkins The trinity of paper items. These three purchases are always worth buying in bulk. Running out of them can range from an inconvenience to an emergency, so it's good to have plenty stocked up. The undisputed champion when it comes to buying toilet paper is Costco. However, most warehouse clubs also have good deals. If you'd rather spend a bit more and not have to carry a huge box to your car, Amazon also has some good deals on these three paper goods. 2. Liquid hand soap and body wash Those tiny bottles of liquid hand soap won't get you very far and can be quite pricey. If you have a favorite, odds are you can find a large jug of it on Amazon to refill your smaller bottles as needed. 3. Tupperware One good set of tupperware will outlast 5 cheap plastic sets. That said, you can still get a good deal on a large set of tupperware and it's worth it if you pack lunches in advance or have a large family. Amazon is also the price to beat when it comes to plasticware. 4. Batteries One item that typically isn't cheaper online is batteries. Walmart is the place to buy large packs of batteries. If you really need to have a lot of them on hand, however, it will probably save you much more money in the long run to buy some good rechargeable batteries, especially AAs. 5. Diapers If you're a parent, you've most likely noticed the magical disappearing properties of diapers. A full box of diapers seems to vanish into thin air within a couple days time. Frugal parents have found that off-brand diapers, such as Target's Up & Up diapers, are high quality and much more affordable than name brand options. Alternatively, Amazon Mom will help you save on gas and on diapers, and offers many other baby-related goods as well. 6. Over the counter medications First, go generic--it will save you a ton of money on non-prescription meds. As to where the best place to buy medications, consumer reports show that Costco and Sam's Club are the cheapest, whereas drug stores like CVS, Rite Aid are the most expensive.

 

Two thirds of American homeowners are somewhere in the process of paying off a mortgage. It may seem like common sense that everyone should try to pay off their mortgage sooner rather than later. However, there are circumstances when it benefits a homeowner more to hold onto their mortgage longer.


In this article, we’ll offer some tips on paying off your mortgage, when you should refinance, and offer some tools that will help you along the long road to debt-free homeownership. If you’re a homeowner and find yourself asking these questions, read on.

I can afford to pay more each month on my mortgage, but should I?

In many cases, paying off your home as quickly as possible saves you money in the long run. A shorter loan term means less interest applied to your loan which could save you thousands of dollars in accrued interest.


What many people don’t think about is whether that money could be better spent elsewhere. If your mortgage interest rate isn’t too high, you might be better off allocating that extra income toward investments or retirement funds where they could earn you more in the long run.


This technique is typically most beneficial for younger homeowners. In your 20s and 30s you stand the most to gain from long-term investments, especially tax-benefitted retirement funds. Ultimately you’ll have to do the math, which is tricky because circumstances change; markets vary, our income goes up and down, etc. However, a good starting place is to determine whether you could earn more in retirement and investments than you could by paying off your mortgage sooner and therefore saving on interest. 

I’ve owned my home for a few years now, should I refinance?

Refinancing is a term that has become ubiquitous for homeowners. There are a few important things to understand about refinancing. First, lowering your monthly payments is not always ideal if it means you’ll end up paying more interest in the long run. Ideally, refinancing your mortgage will help you pay the least amount in total.

One way this can be accomplished is by refinancing to a 15-year fixed-rate mortgage which often darry slightly lower interest rates. This option is designed for people who have improved their credit and increased their income since signing their first mortgage.

Math isn’t my strong suit. How can I figure out my finances?

If all of the numbers and percentages associated with mortgages and refinancing seems overwhelming--you’re not alone. Fortunately, there are mortgage and refinancing calculators that will give you a good idea of where you stand if you decide to increase your payments or to attempt to refinance your loan. Here are some great tools:
  • Use this mortgage calculator for determining how much you would save by making extra payments.

  • This refinance calculator will help you understand the potential benefits of refinancing your mortgage.

  • To determine how much you could earn through investments (rather than paying more toward your mortgage) use this helpful tool.

  • You might be able to increase your savings by creating a better budget for yourself. This website will help you make a detailed budget and hold yourself accountable each month.




There's nothing more frustrating than being at a climactic moment in your favorite show on Netflix and suddenly losing internet connection. On my TV, it actually shows my download speed slowly disappearing. 10mbps... 7mbps... 2mbps... flatline. At this point, many people are prone to either throwing their remote across the room or calling their internet provider to complain about horrible service. However, there are some things you can do right in your home that can help you boost your internet speeds.

Diagnosis

Before you start buying new routers or range extenders, you should first get an idea of what your average download speed currently is. There are many free websites out there that can tell you this information, but speedtest.net is one of the veterans in the field that is user-friendly and widely trusted as one of the best. Run the test at different times of the day. See how it's affected by someone else streaming videos on a another device. This will all help provide insight into the issue you're having. If you notice a problem only at certain times of the day, the problem might not be your modem or router, but rather that your internet provider is oversubscribing and getting backed up during internet rush hours. It's also a good idea to change the password on your Wi-Fi network in case you have a neighbor that you're providing free internet too.

Update your hardware

If you're paying $60+ per month on high speed internet but can't ever stream videos there's a problem. Many people assume that paying more for internet automatically means they'll get faster download speeds. If you're using an outdated router, however, it won't matter how much you pay monthly, you're still going to see slow speeds. Check out some of the latest model routers on Amazon or at Best Buy and read the customer reviews. You won't want to buy any routers that are more than a couple years old as Wi-Fi technology progresses somewhat rapidly.

Tweak your router

If you recently purchased a brand new router but aren't getting the results you expected, maybe you need to make some changes to the router itself. Try setting the antennas vertically and placing the router on top of a cabinet in your house for better signal reception. Alternatively, you could look into replacing the antennas on your router for ones that will emit a stronger signal.

Expand your signal

If you live in a large house or often use devices in the basement, far away from your router, you might consider buying a wireless range extender. Extenders come in various shapes and sizes. Some are tiny adapters that stick out of your power outlet, others look just like routers, and others work as a system of small routers that you place around your home to provide blanket internet coverage.

Pretend you're in IT

There might be some changes you can make to your router that will make a huge difference in internet speeds. Sometimes that means updating the firmware of your router, other times it means switching the channel your router is broadcasting on to avoid interference with other routers or wireless systems. To make these internal changes, type in the IP address (usually located somewhere on the bottom or back of your router) into your browser and type in your username and password, then follow instructions for your specific router.



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