Beating Broke

Personal Finance from the Broke Perspective

Now Is the Perfect Time to Increase Your Pantry

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In the first few months into the global pandemic, you might have had trouble finding the food you prefer to eat.  However, now that the supply chain issue seems to have eased, finding the particular food you want to eat is easier.  That means now is the perfect time to increase your pantry.

Now Is the Perfect Time to Increase Your Pantry

Why Now Is the Perfect Time to Increase Your Pantry

There are several reasons why you might want to consider increasing your pantry goods now.

You Should Have at Least a Two-Week Supply of Food

If you do happen to get COVID-19 or get exposed to it, you will likely either be unable to leave the house or need to quarantine for 14 days.  That means you should have at least that many days of food in your home because you won’t be able to go to the store.

Keep a Stock of Specialty Foods

If you have food allergies or intolerances, having an ample pantry is even more important.  For instance, if you can’t have gluten or dairy, there are many items you can’t eat.  You can’t go to the store and buy whatever foods you may find on the shelf as other people can.

Take the time now to stock up in case there is a supply shortage later.

The Supply Chain May Be Broken

Now Is the Perfect Time to Increase Your Pantry
Photo by Annie Spratt on Unsplash

In our city, the local UPS hub has nearly 50 cases of coronavirus, and the union wants to temporarily shut down the hub.  Like many people, I’m trying to avoid going to the store by buying items online.  Now, if our UPS hub closes for a few weeks, I won’t be able to get many of my orders.  Having a pantry and freezer full with enough items to feed my family for a few weeks or a month gives me peace of mind.

States May Shut Down Again

No one knows what will happen in the future.  If cases of the virus continue to climb, government officials may have no choice but to shut down the states again.  If that happens, there may be another run on groceries as there was the first time the states started to shut down.  You don’t want to be in the same position you were in March when there were very limited groceries to buy and the shelves were bare.

How to Stock Up

Of course, you don’t want to be a hoarder.  Be prudent and fill your pantry and freezer with enough food to last for a few weeks.

If you don’t have a lot of extra money in your grocery budget (and who does right now as the price of groceries continues to rise?), stock up little by little.  Maybe one week buy a few extra pounds of beans.  The next week, buy a few extra cans of veggies and fruit.  Each week that you do this, you’ll be expanding your pantry.  In addition, you won’t feel the financial hit as much as if you bought everything in one week.

Final Thoughts

Having a full stocked pantry is always a good choice, even in normal times.  In the time of a pandemic, which we currently face, now is the perfect time to increase your pantry.

How to Make a Refinance Appraisal Checklist

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If you’re looking to refinance your home, you will likely need to have an appraisal as it’s the first step to putting an official price value on your home.  You may not know where to start, but learning how to make a refinance appraisal checklist is the perfect place.  Once you do this, you can work on improving your property for the appraisal.

How to Make a Refinance Appraisal Checklist

How to Make a Refinance Appraisal Checklist

My husband and I recently called our real estate agent because we wanted to refinance our house.  She gave us several pieces of advice to prepare for an appraisal.

Get Rid of the Clutter

How to Make a Refinance Appraisal Checklist
Photo by Minh Pham on Unsplash

Most Americans have at least some clutter.  Your job is to get rid of the clutter in preparation for the appraisal, much the same way you would if you were preparing your home for sale.  Our real estate agent specifically said, “Make your house show ready.”  However, she also added that in general we didn’t have to make places like closets pristine for an appraisal.

Make a List of Improvements to the Home

Since you’ve lived in your home, what improvements have you made?  Make sure you have a list of what you’ve done and when you did it.  Since we moved in, we’ve replaced the water heater, the HVAC, and two bedrooms’ flooring.  Big ticket items like replacing the HVAC system help the appraiser increase the value of your home.

Make Easy Cosmetic Fixes

When you’re in your house every day, you tend not to notice the little things like the paint that is chipped off your kitchen cabinets or the hole in the dry wall where your child’s bedroom door handle hit the wall.  You might not notice dingy floorboards or dusty door hinges, but the appraiser will.

These items don’t cost much to fix, but they can increase the value of your home by creating the appearance that you care for your home and that it is well-maintained.

Look at the Curb Appeal

How to Make a Refinance Appraisal Checklist
Photo by Matt Chen on Unsplash

How does your house look on the outside?  Is the paint fresh or the siding clean?  Is the lawn mowed?  Nicely landscaped?  Or, do you have piles of clutter outside?

A tree fell in our backyard during a windstorm, and while we had taken care of most of it, the trunk of it still lay across our backyard.  The real estate agent was adamant that we must take care of that before the appraiser came.

Get Comps for the Neighborhood

How much do comparable houses in your neighborhood sell for?  Having this information gives you an idea of how much your house would likely sell for.  Making this information easily accessible to the appraiser also gives him a starting point.

Our real estate agent offered to put together a list of comps for us.  However, we didn’t need her to.  When we put in our application for refinance, the comps in our area were high enough and our mortgage low enough, that the bank didn’t even require an appraisal.

Final Thoughts

Now is a good time to consider a refinance based on the market.  If you’re wondering how to get started, hopefully this helps you learn how to make a refinance appraisal checklist.

Making Your Way From Broke to First Time Homebuyer, Here’s How

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If you’re one of the many Americans counting down the days until you’re no longer “throwing money away” for rent, you’re not alone. Buying a home is the largest purchase the average person will make in their lifetime, which is why it’s essential to prepare for such a significant investment. If you’re ready to make your way from broke to a first-time homebuyer, keep reading.

 

Determine your budget

Before you begin dreaming of mini-mansions, you need to know how much house you can comfortably afford with your current income. The word “comfortably” is used purposely here because many real estate agents and mortgage lenders will show you homes at the upper end of your budget, which is great if you want to survive on rice and peanut butter each month. 

Use one of the many free mortgage calculators online to determine how much house you can afford with your monthly housing budget. Again, try to stay on the low side of that number to make sure you have enough money left over each month to save for unexpected home maintenance and repairs.

 

How’s your credit?

Quick — what’s your credit score? If you can’t answer right away, it’s time to run a credit report and find out where you stand. If your credit score is on the low side, now is the time to develop a strategy to raise your score to get you into a home by qualifying for a mortgage with a decent interest rate.

If you have overdue bills, begin working with collections agencies to pay off those outstanding balances and get the “dings” removed from your credit report. Specifically, ask the representative for the balance you need to “pay to delete” the debt collection from your credit report and get it in writing.

Many younger buyers struggle with low credit score simply because they haven’t amassed enough credit. Consider asking a parent to add you as a registered user on one of their cards to help you build credit; only do this if your parent has a solid credit score and history of on-time payments, or you could adversely affect your credit rating. You can also open a credit card with a small line of credit and use it each month to amass a history of revolving payments. Most of all, be patient, as building your credit takes time.

 

Save for your downpayment

If this is the first foray into your first time home buying education, you need to know that you don’t necessarily have to have twenty percent saved for a downpayment. When you use a mortgage calculator, you can also have it show you the amount you’ll need for a downpayment, but this amount will vary depending on your circumstances.

When you’re saving up for your first home, realize that your down payment percentages could be as high as 10 or 20 percent, or as low as 3.5 percent to zero down; it all depends on the type of loan you’re after. If you struggle to save, then a first time homebuyer or FHA loan may be the best option, only requiring 3.5 percent down to purchase. However, if you have no problem saving ten percent, a conventional loan may save you money in the long run. Talk with a mortgage lender to determine the types of loans you’re eligible for, and which one makes the most sense for your financial situation. Remember, this is the largest purchase you’ll make in your lifetime, so be sure to weigh all of your options.

 

Expect the unexpected

If you think everything’s smooth sailing once you sign the paperwork and move into your new home, you’re mistaken. There are several surprises you’ll encounter as a first time homebuyer, including taxes, homeowners association fees, insurance, and maintenance costs. Again, this is why you don’t want to max out your monthly housing budget with your mortgage payment, as things will invariably pop up.

It’s not uncommon for things to go wrong with your home shortly after purchasing, and you’ll quickly find out that even something as minor as having to have a plumber come out for a repair can be costly. So, just in case your furnace decides to quit, or your central air conditioning stops pushing cold air, you have funds set aside each month as a failsafe.

When you research your options, you’ll find that the road to homeownership is straighter than you’d originally imagined, and perhaps even a little shorter. Planning, patience, and persistence will take you from broke to first-time homebuyer.