ASK RUFF!

(Ruff is the ‘Official’ puppy of The Ruff Housing Team and for a dog, he’s amazingly knowledgeable in the field of real estate…go ahead! Ask Ruff a question at: Ruff@TheRuffHousingTeam.com.

In between watching the Stanley Cup Playoffs ('bark' my words...the Hawks will be there next season!!), Ruff will answer a monthly question, and receives no compensation but a pat on the head and a doggie treat!

What: are some steps I need to do to get my finances straightened out?

Jovylynn-Oswego, IL

Grrrrrrrrrrreat question! With National Home Ownership month coming up in June, it is time to get those pesky Cats...errrrrrrrrrufffff I mean finances in line!

Courtesy our friends at the Illinois Association of Realtors.

Steps to Get Your Finances in Order

• Develop a family budget. Instead of budgeting what you would like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses such as car repairs, illnesses, etc., as well as predictable costs, such as rent.

• Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 and 28 percent of income, you need to get the rest of your installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 and 10 percent of your total income.

• Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You will probably see some great ways to save.

• Increase your income. It may be necessary to take on a second, part-time job to get your income at a high enough level to qualify for the home you want.

• Save for a down payment. Although it is possible to get a mortgage with only 5 percent down—or even less in some cases—you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent down payment.

• Create a house fund. Do not just plan to save whatever is left toward a down payment. Instead, decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.

• Keep your job. While you do not need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.

• Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.
  
  Need more tips?
  Call SHANE today at 630.637.2547

Until next month ...GrrrrrrrRuff!

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