5 Tips for Saving For Your First Home

You want your own backyard. A place for you and your spouse to play fetch with your new puppy — and someday soon make lasting memories with your first child!  A couple of bedrooms and a couple of baths, all in a nice neighborhood. Right now it may all seem like a distant dream but with a solid savings plan you may be closer to that backyard barbecue than you think. Here are five tips to help you get to that housewarming faster.

It may take less than you think

It used to be common for lenders to require as much as a 20% down payment to qualify for a mortgage, but these days it can be much less. You may only have to come up with 3% in order to buy a home!

Of course, minimal down payments may affect the interest rate you receive — and you’ll have to pay private mortgage insurance, which guarantees the lender gets paid if you are forced to default. And a lower down payment means a higher monthly note, though with a good deal made on your must-have house, the “end may justify the means,” as they say.

Here is a handy calculator that can help you design a savings plan. It’s also a good idea to know what you can afford first, pre-qualify for a loan — and then go home shopping!

Hide the set aside

After you seek out and snag a good savings account, arrange for automatic drafts from your paycheck or checking account each month. Not just a random amount, but a regular sum that meets your “down and distance.” That’s the down payment (and closing costs) you’ll need saved within the timeframe you’ve set to buy a home.

With these funds invisibly zipping between accounts, you won’t be tempted to touch them before you reach your savings goal.

Consider tapping retirement accounts

This is one idea you’ll definitely want to talk over with your trusted financial advisor, but the IRS allows first-time homebuyers to withdraw up to $10,000 from their Individual Retirement Account (IRA) penalty free. You will surely want to consider the tax consequences of such a withdrawal, as well as the impact to your future retirement plans.

While your employer-sponsored 401(k) doesn’t qualify for this penalty-free withdrawal, some plans offer participant loans with the interest paid credited right back to your account. Again, this is a tactic that requires due consideration.

Explore government assistance

Many states, including Florida, have assistance programs that can offer advice, information and even financial assistance for first-time homeowners. Some federal programs can also offer help with a down payment, and of course military service members who qualify for Veterans Administration (VA) loans aren’t required to have a down payment.

Be a “first time buyer” again!

Here’s the ultimate do-over. If it’s been more than three years since you’ve had a mortgage or owned a home, you may still qualify for the benefits of a TFCU first-time home buyer mortgage!

You may also explore gifts from family to help jump-start your down payment savings program. But the surest way to save up for the down payment is to aim high, keep expenses low, and don’t quit until you fire up the barbecue pit.

Hal Bundick, NerdWallet

WHY HOLD?

In this digital age sometimes getting a check to deposit seems so antiquated.  On top of that it may seem frustrating to take a check to the credit union and learning there needs to be a "hold" placed on the check.  Ever wonder why?

We know it can seem like an inconvenience, but it's an important part of protecting your money. If you have questions about how check holds affect you, feel free to give us a call at 888-261-8328. or stop in one of our local South Florida branches.

^Amy

 



Growing Your Business: Planning for 2014 and Beyond

If you’re a small-business owner, you may be looking for better financial solutions to help stay on track in the coming new year. Even if you have an established relationship with your credit union, you might not be aware of all the services available for your business’s needs. As part of your business planning strategy for 2014, take a look at some of the unique business services you can take advantage of at your local credit union.

Credit unions are a great option for small businesses for several reasons. Credit union small business lending has grown consistently in the past year. They have an intimate understanding of local business concerns and they often can provide loans when bigger banks in the area may refuse. Here are just a few of the valuable banking services credit unions can offer businesses, including commercial loans, savings products and merchant services.

Business loans

Typically, credit unions offer a few different kinds of loans. Credit unions can frequently offer lower interest rates, and since their representatives are more familiar with the local business community and economy, they are invested in working with business owners to find diverse financial solutions. They may also offer custom bundled services tailored to meet your business needs

• Business lines of credit allow businesses to quickly acquire funds for any business-related expenses, and are available both secured (collateral required) and unsecured (no collateral required).
• Term loans can help with your business’s monthly expenses by allowing you to purchase business equipment, supplies and other things you need to keep your business operations running smoothly. These loans tend to require collateral, are usually set up for a predetermined amount and mature within 1-10 years. Many credit unions offer low, fixed interest, as well as floating interest options.
• Company vehicles and real estate loans are specialized financing options for businesses. Vehicle financing options include longer terms and credit unions will often loan up to the full cost of the purchasing price. Financing for other vehicles such as tractors or wreckers, and related equipment, can be available, as well. Your real estate options can include purchase and refinance options, longer-term financing and competitive rates.

Business savings and checking

If you’re looking for the higher paying interest rates that come with business savings and money market accounts, your local credit union has got you covered. Many credit unions offer generous interest rates on money market accounts and no minimum balance requirement on their flexible business savings accounts. Whatever you’re looking for, your local credit union has a savings vehicle that suits your business’s unique needs.

Business checking accounts help you keep track of your business’s finances, and allow you to make check or cash deposits for your business. However, these accounts tend to have minimum balance requirements and fees for deposit items over a certain amount. Be sure to check if your credit union offers a free business checking account, so you can avoid the fees.  

Merchant services

Local financial institutions provide a variety of solutions to your point-of-sale needs. Some of the most popular include check authorization, credit and debit card acceptance, as well as e-commerce solutions. Options for renting and purchasing card machines or reprogramming your current machines are often included. You can also expect support and services to ensure the highest level of security and fraud prevention.

Lastly, choosing to bank with your local credit union will help you develop a long-lasting relationship and serve your local area in the most sustainable way. In 2014, make sure you research the wide variety of business solutions with competitively low interest rates and fees. Taking advantage of your local resources is one of the best ways you can ensure your business’s growth in the coming years.

 

^Sara Collins, NerdWallet

HAPPY 2014!

 

2014 is TOMORROW! As I begin our big countdown, I know I will review the past year, and subconsciously begin my list of New Year resolutions. Remember: all great accomplishments take time and dedication. The common resolutions are:

• Get Fit
• Increase Healthy Eating Habits
• Save Money
• Manage Debt

Here are a few tips on some to maintain these resolutions: 

Getting Fit: Commit to a 30 Minute routine. This can be as simple as walking to the entrance of where you work or even a few blocks around your neighborhood. Build the endurance and schedule four sessions per week. Don’t forget to change up the location, music and tempo to prevent boredom. Tip: Take your furry pet along with you for the walk.

Increase Healthy Eating: Meal Plans. Enter the grocery store with a meal plan for the week. Not only will this save you money, but it will slim your waist line. Making homemade chicken and vegetable mash will still be a healthier meal than the drive thru alternative. Tip: Pack snacks such as almonds and raisins to prevent the afternoon visit to the vending machine. Check out the weekly ads online and work your meal plans around discounted options.

Save Money: By curbing spending habits at the grocery store, you’re eliminating dining out. Dining out regularly will take a hit on your disposable income. Tip: Take a look at your “extra” purchases, and see if any reoccurring items can be purchased monthly rather than bi-weekly.   Take a look at your small monthly commitments, and determine if you’re fully utilizing all of your memberships.

Manage Debt: By tackling the three previous resolutions, you’ve already created a foundation on managing your debt. Create a ledger of your monthly requirements (power, water, etc.) and revolving debt. List all debts from highest to lowest interest rate. By focusing on the higher rates first in addition to your newly discovered disposable income, you’ll be able to pay off your debt at a faster pace. Tip: Once you’ve accomplished paying off each revolving debt, make sure you keep the last statement or final payment letter for credit reporting purposes. There is a website authorized by the Federal government called annualcreditreport.com. This site will provide you with one free credit report from each major credit bureau. By managing your debt and annually reviewing your credit report you:

• Confirm your credit is reported accurately
• Reduce your income to debt ratio
• Are able to prevent identify thief charges
• Prepare your credit for new financial purchases  

I hope you all have a wonderful new and prosperous year and I hope the suggestions and New Year resolutions recommendations I’ve made assist you in your financial goals for 2014.

 

Happy Savings!

 

^Cari

GIVING ALWAYS GIVES BACK

As we wind down 2013 and reflect back on the year we had, I will remember the goodness and generosity of the Tropical Financial family. We often refer to what we do as helping people, "one person at a time" and with that in mind we decided to adopt a family through the Neighbors4Neighbors program for the holidays.

A family with four children and a hard working mom was the recipient of gifts on behalf of all Tropical Financial employees who donated more than $500 in just two weeks.  A group of employees shopped for the gifts, wrapped them, and last week delivered them to the family.  As we hugged each child and their mom we were left with giggles, smiles and never-ending gratefulness.  That was the greatest Christmas gift this mom could have ever asked for.

On behalf of everyone here at Tropical Financial Credit Union I wish you and your family that same spirit of giving and gratefulness today and every day.

^Amy

ATTENTION LAST MINUTE SHOPPERS

Ding Ding Ding! You have two shopping days until Christmas! If your family tradition is to open gifts at midnight Christmas Eve, then I hate to break it to you, but you only have one day left. I don’t mean to scare you, but I’m just mentally preparing you for the long lines and maze of parking lots. Don’t hyperventilate or kick yourself for waiting until the last minute. Here are a few shopping tips for our last minute shoppers:

Online Pick Up: You’re able to shop online and select “In Store Pickup”. You’re able to purchase your items, and pick them up at costumer service. There will be a line yes, but you can rest assured, because your items will be waiting for you behind the counter.

Price Matching: Stores are now price matching offers that are sold online. Do your research before shopping, and see if there are any cheaper offers online. You may be too late for online ordering, but you may be able to save a few dollars by price matching.

Dollar Store Wonders: I’m a big fan of dollar store and family discount stores. You’re able to load up on essential stocking stuffers such as candy, crayons, travel toys, coloring and reading books. You could also offer to bring napkins, cups, silver ware and plates to your holiday party as well.

Baking vs. Shopping: The holidays can be an expensive time of the year and if you have a long list of people to shop for you may feel the financial hit come January. Embrace your sweet side and bake personalized tasty treats for your friends and family.

Gift Cards: Some people view the Gift Card as an “impersonal” Christmas gift; however, some people appreciate the ability to purchase something they truly want. Since the invention of the gift receipt, it’s customary to allow the gift recipient the ability to return an item to exchange for something else. Avoid the mental anguish guessing the person’s clothing size. Instead, tailor the gift card to the person’s favorite retail store. For the video gamers, there are also gift cards for game systems. They’re able to shop online for games, as well as add on functions - sometimes at a reduced rate.  

Donate your Time: If you’re still feeling in the spirit of giving, look into your local organizations by helping feed the homeless or assist in gift giving to the less fortunate this season. Donating your time to these organizations will be much appreciated.

I hope all these tips help you in your last minute shopping adventures. Make sure to keep all your receipts for record purposes, contact your local bank to notify of unusual spending habits so you’re not faced with any holds and remember that any gift given will be loved and appreciated.

Happy Shopping

^Cari

HAPPY HOLIDAYS FROM TFCU

One of my favorite things during the holiday season is the giving spirit that is shared throughout all our communities.  One of my favorite things about working for Tropical Financial Credit Union is the giving spirit that is shared amongst our employees all year long.

From all of us at Tropical Financial, we wish you the sharing spirit of the season, the happiest of holidays and a prosperous 2014!

^Amy