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Keeping Basic Accounts as a Freelancer

Keeping Basic Accounts as a Freelancer

Doing freelancing has always been very rewarding. You work all the way from your place. You work at your own time. You earn as much as you want. You don’t have a grumpy boss to whoop your ass around. And you don’t have jealous officemates ready to stab the moment you turn your back. No matter how you put it, however, you end up the guy who doesn’t have a stable job. That is why it’s important for you to keep track of your basic accounts. The following are important considerations you need to take into account:

Get a Solid Billing System—as online invoicing tools grow in numbers, you can try them and see what billing system you are convenient working with. You can register for a trial version, which allows you to test run their system. Make sure to compare each other’s features. See where you can make most of your money.

Keep a List of People Who Owes You Money—knowing the ones who are paid up and the ones who are past due allow you to catch a glimpse of your earnings for a specific month. Doing so will give you a real-time data of your income against your payable bills. It allows you to draw out or update your plans for the next working session should you see lapses in the previous one.

Save Every Eeceipt of Every Payment—might sound unhealthy hoarding of unnecessary things, eh? It’s not pointless at all. Do this and you surely save thousands of dollars yearly. Keeping all receipts from food, gas, electricity, internet connection and phone lines allows you to see whether you have large unnecessary expenditures or a cost-efficient way of life.

Create a Bank Account Intended Only for Online Purchases—you surely don’t want to mix up your personal accounts with your business account. You’ll be protecting the safety of your business, house and your money if you maintain it that way. Breach of this simple rule would endanger you to be exposed to legal hot waters that might result to the loss of your business and properties. So, again, keep different accounts.

Track Your Everyday Spending—earning is inversely proportional to your spending. The higher your expenses, the lower your income gets. You may want to make sure that your money is well spent than being thrown away for pointless things. List all things you purchase and all bills you paid. Categorize each purchase or payment into two: “necessary” and “unnecessary.” Of course, you owe yourself with the latter but make sure to keep it low.

Being a freelancer gives you the freedom—to earn and to spend. Your earning is boundless, not limited by a four-cornered office walls. You get to buy what you want, and spend like you just got your face on Forbes Magazine. But end of the day, you are still a freelancer. No work, no pay. And it is necessary that you think smart. Keep your basic accounts in check, because you don’t have a lifetime to work. Think ahead of everyone. Good Luck!

 

 

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How to Prepare Your Paper Work When Applying for a Mortgage

How to Prepare Your Paper Work When Applying for a Mortgage

So you’ve decided to apply for a Mortgage loan. Whether you need some dough to pump up your online business or just to get that glossy red car like the one on the next block, Mortgage loan is ideal for you. As much as it sounds interesting, applying has proved to be not an easy process though. But you still intend to apply for one, don’t you? So for a smarter and faster application for your mortgage loan, you should consider preparing the following paper works:

Good Credit History—in almost all loans, a credit history is necessary. And for you to have a good one, you should practice a good banking and spending techniques. Continuous employment (at least 2 years), an established savings and checking account, good payment history using personal checks, no history of past due monthly bills and pay stubs will serve as bases for your credit history performance. By making sure that you have all these things in regular check, you can have a good credit history to back you up anytime.

Bank Statements—you will be required to submit two current monthly checking account statements together with your passbook saving accounts. This will show the latest activities for the two (2) recent months. Explanation in writing is required for deposits seen as unusually high. Bill of sale of a personal property, gift or any kind of refund is accepted as valid sources. Gifts must be given in the form of checks and gift letter furnished by the giver should be produced, and then attached to the passbook or statement’s copy showing the gift deposited.

Tax Returns—information in the W-2 form should match the ones in the application.

Verifications—verification of employment or VOE is accomplished by the employer and is send back directly to the lender. VOE is required from the previous employer if you’re working below 2 years for your current employer. For individuals who don’t have previous employers, a valid explanation is required.  Moreover, you will be required to show your average monthly balance of the most recent two months and your balance for the current month, which is called Verification of deposit. You are allowed to send faxed copies, provided that you send by mail or deliver personally the originals afterward.

Credit Report—the lender will spare a copy of your handwritten application and will be sent to the credit report company. Information verification will be done. The lender will received a copy of the credit copy report. A copy will be sent also to you should there are issues in the information provided.

Explanation Letters—you are required to submit a letter explaining adverse credit info—like late payments, queries from creditors in recent months & etc. Divorce, Illnesses or errors on the part of the creditors are considered acceptable. You should be able to prove that you are not negligent.

Document Updates—you are required to update some of the documents submitted should the loan processing goes beyond allowed 90 days.

Producing the necessary documents is a real hassle if you don’t do it ahead of time. The above papers should be prepared if you’re planning to take a mortgage loan. Once you already have them, find the right mortgage loan you think is suitable for you. And that is another interesting homework for you.

 

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Different Type of Mortgages Explained

Different Type of Mortgages Explained

In these present times where opportunities lurk in every corner, isn’t it comforting to know that there are people offering to lend a hand when our budget needs an extra nudge for us to be able to grab a passing opportunity by the rein? Mortgage loans have been the strong wall for individuals badly in need of money. And you also can benefit from these loans should the need arises. But before you go stumbling to apply for one, isn’t it better to take a moment and learn the different types of mortgage loan?

Mortgage loans, basically, are given loans protected by a borrower’s property. A mortgage note is used to prove the presence of the said loan and the property as collateral. And whatever reasons you have in applying for a mortgage loan, a property—termed as mortgage—is required to be encumbered to secure the loan. But aside from the granted mortgage, you must be able to prove that you are a good payer through a good credit history.

There two types of mortgage loan: the fixed rate and the adjustable rate mortgage. Fixed-rate mortgage is a loan with a fixed interest rate to be paid over a periodic payment schedule for the entire lifespan of the loan, while the adjustable rate mortgage is a loan that offers a fixed interest rate over a certain span of time—say a year—and gradually lowers down as the loan approaches its maturity. The latter presents a transfer of interest risk from the lender to the borrower.

The advantage of adjustable rate mortgage over the fixed rate loan is the ability of the borrower to evade later months’ interests by paying off the loan the soonest. But the factors you need to consider in applying a mortgage loan are the interest rates, maximum loan you can get and maximum time allowed of paying off the loan. So it’s necessary for you to study each mortgage loan being offered. You don’t want to end up in a loan with a sky-high interest rates, shorter payment maturity or lower loan offers.

Once you’ve already assessed all the above factors, make a list and slowly narrow them down. Verify their legitimacy and start choosing the best one. One more thing, don’t go applying for two or more lenders. It’s not advisable. One failed mortgage loan application takes one point from your credit record score. So get the best one. Focus on it. And you should just be fine.

 

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What are mortgages?

What are mortgages?

Mortgages simply means the act of pledging a property to give security to the money lender. To some other people, a mortgage is just a loan. The truth is, a mortgage is a loan wherein the collateral is the house itself that you loaned for. It is not easy to get a mortgage loan to the bank. There are plenty of requirements which banks require in order for you be qualified to avail this product.

Like other forms of loans, mortgage also has an interest rate. This interest rate varies depending on the lender from which you will borrow. This interest rate ranges from 1.99 % to 3.28% and also depending on the amount of mortgage and the terms of payment.

Contractor mortgages

There are also mortgages that were specifically created for freelancers and contractors and these are called contractor mortgages. Unlike the regular mortgage which you can get from the bank, these mortgages can be bought through contractor mortgage companies. Contractor mortgages are easier to avail because the requirements jive specifically for contractors.

The Advantage of using a mortgage

Use the property pay later – with a mortgage, you can use the property that you mortgage for even if you are not yet done with the mortgage payments. The good advantage of this is that you can use your money and invest it into something else or use it for something else while reserving necessary amount of money to pay your mortgage payments.

 

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