Each year, millions of people file bankruptcy as a means of erasing their consumer debts. While this approach may relieve stress, a bankruptcy is damaging, and will hang over your head for the next ten years. Still, it is possible to overcome bankruptcy. The key is making smarter financial and credit decisions. With this said, some people choose to purchase a home after a bankruptcy. Here are a few pointers to consider when buying a home.
Reasons to Delay the Buying Process after Bankruptcy
If you consult with mortgage or financial experts, they will likely discourage you from buying a home following a bankruptcy. After your bankruptcy is discharged, there is a black cloud that looms over your credit report.
When any prospective lender reviews your report, they will be notified of your recent or past bankruptcy. In some instances, this justifies an immediate denial. On the other hand, there are lenders eager to help you establish or rebuild your credit. Thus, they will approve a loan request. Nonetheless, the penalties are steep.
Higher mortgage rates can be anticipated when purchasing a home after bankruptcy, especially if you have not established other credit accounts. Mortgage lenders consider two factors: credit scores and credit reports.
Although a bankruptcy appears on your credit report, having a high credit score will increase your odds of getting a comparable rate. Unfortunately, if you buy immediately following a bankruptcy, you will not have the opportunity to boost your score.
Reasons to Buy a Home after Bankruptcy
Lenders will approve mortgage loan applications one day following a discharge. Therefore, it is possible to get a home after a bankruptcy. Buying a home is perfect for rebuilding credit. Moreover, it is the quickest way to increase your credit score.
After a bankruptcy, the average person has a credit score below 600. Good credit consist of credit scores 650 and above. Maintaining current mortgage payments will gradually increase your score. After two years of regular payments, you will have established a good payment history. Hence, you may qualify for a low rate refinancing, which may lower your mortgage payments.
I am sure that if you've decided to purchase a home security system, by now you must be utterly confused. The prices seem to vary a lot even for the very same device. This guide complements our guide called How to Choose the Right Home Security System and will help you make the right decision based on your needs.
If you are an average homeowner, then I strongly recommend purchasing a security kit. These offer the standard protection against common intruders and have proved their effectiveness time and time again. In the security systems industry, it is not the systems themselves that cost a lot but rather the customization. Just like buying a ready-made bicycle, it is far cheaper to buy it as-is than to select the individual components you want the bicycle to have and have everything put together. Security kits excel in providing a reliable standard for a do-it-yourselfer. Because these systems involve the bundling of multiple systems, you can expect a hefty discount. Who said that security must be expensive? The security kits demolish this myth and allow do-it-yourselfers to install and have a quality home security system.
There is another way of cutting back costs. I am introducing this method in this guide precisely because at some time you will no doubt feel attracted by it. I am talking here about the price leverage you will get from choosing a lesser known brand (or no-name brand) instead of a more well-known brand. This is not something I recommend. Those companies with strong brands have invested heavily in building up their reputation through well-made products.. What you have here is a distinctive difference in quality. So if you plan on buying a cheaper system from a no-name brand which manufactures its products in South East Asia I strongly advise against it. In the long-term you will realize that the money saved wasn't worth it. Why save a couple of dollars only to have a false sense of security? It is far better to invest a little extra now than to risk your home, the safety of your family as well as your own when intruders break-in later.
But perhaps the single, most effective method of deciding what security measures are appropriate and cost effective for your home or business is to hire a security consultant. Believe me when I tell you that the money spent on their services will actually help you cut down costs, either by suggesting the right and appropriate security installations or by detailing the weaknesses in the system. It is more than a low price that you should aim for; your goal should be to obtain an effective security system.
I hope that this guide to saving money on a home security system has put you on the right track. Remember that you must strive to achieve a balance of maximum benefits and protection while keeping the costs at a minimum.
We are all looking for the cheapest electricity and natural gas prices, after all the less we spend on our fuel bills the more we have left over for the pleasures in life. So how attractive would it be to heat your home for free? It is possible by using geothermal energy.
The Queen of England is planning to cut energy bills at Buckingham Palace for centuries to come by creating an underground network to extract heat from the earths natural warmth. The pipes containing water and a refrigerant chemical will run from the palace to the 4 acre lake in the grounds. As the water runs through the coiled loops of pipe placed on the bed of the lake it is warmed to a temperature of around 55F/12C. When the water arrives back at the palace it will go through a compressor which raises the temperature to around 140F/60C, and then through a heat exchanger (metal plates) which warms the water used in taps and the heating system in the palace. There is of course considerable capital expenditure required to get the system up and running, but it is estimated that this will be recouped in 3 years by savings on the heating bills.
The liquid in the pipes can also be decompressed so that instead of generating heat, it can cool air for an air-conditioning system. This system was used in a small trial at the palace in 2002 when the Queens staff drilled 400 feet into the chalk aquifer under the palace grounds to run an air-conditioning system in a new art gallery. The results of this trial were reportedly so impressive that work on planning the larger scheme began soon after.
Other high net-worth people like the singer Elton John with large estates in the UK have installed a similar system. But can the ordinary householder tap into geothermal energy and save money on heating and electricity bills? Yes, for the price of a small car it is possible to drill hundreds of feet into the ground and you can not only reduce heating and electricity costs by around 70% but you can also benefit from a free supply of pure water.