Moving for work isn’t uncommon these days, and a lot of companies are willing to cover relocation costs if it means getting the right person for the job. This is a pretty common incentive today. 

For example, when a large enterprise opens a new operation in a remote town, it needs to attract talent, and part of that is offering things like relocation assistance.

It is important to know that the relocation package you are offered is not the one you absolutely have to accept. Everything is negotiable, including your salary and your relocation assistance package.

Relocation Packages

Relocation packages are a benefit that many companies offer in order to get talent to come to a new location. Each company is different in terms of what it offers, but no matter what is offered, you always have room to negotiate. 

Typical relocation packages include perks:

1. Help buying or selling your home, particularly if your employer covers things like commissions and closing costs, or reimbursement for any fees that you have to pay for breaking your current lease;
2. Travel expenses like airplane tickets, transportation, hotels, and dining, especially if you are moving across the country;
3. Spousal job assistance, which can help your spouse find a new job in the new location;
4. Temporary housing to cover the cost of a temporary living situation, like a hotel or rental home, so that you are able to start work right away while still looking for a house;
5. Moving expenses like packing supplies, movers, or storage units.

If you are being offered a relocation package, look over the terms and decide what areas might be most important to you so that you can negotiate for something that better suits your family. 

These are my quick tips for successfully negotiating your relocation assistance package. 

#1: Know Your Company

The most important thing is to do your homework, and that means knowing what your company typically offers for relocation assistance. 

You need to know exactly what it is that your company typically offers. If you can, reach out to the HR Department and ask them if they have a standard written policy for relocation assistance. Knowing what they typically offer can give you some idea of the benchmark.

Equally important is knowing what the payment structure is for your relocation assistance.

• Some companies will utilize a third-party service and handle all of the costs directly, but you have no say in the company they use.
• Some companies offer direct reimbursement for documented expenses, which means you have to pay out of pocket first and then get compensated.
• Some companies do a lump sum where you get a lump sum at the start of your move, and you can apply that toward your costs, but if you go over, you have to pay out of pocket.

Note: If your company uses the first option, you might not be able to choose the moving company you use or the real estate agent. If part of your relocation assistance package involves buying and selling a home, because a lot of company policies specify that you only get reimbursed if you use the brokers or movers they specify.

There are a lot of things to consider when it comes to the type of reimbursement they are giving, and your main negotiation might be changing how that package is delivered. 

For example: 

If you are reimbursed for your moving costs, let’s say the company gives you $10,000, your next tax season is likely going to reflect that as additional income. The same is true of a lump sum paid to you up front. So if your income is normally $80,000 and your company gives you $10,000 as a lump sum or reimbursement, you have to report $90,000 and pay taxes on $90,000. 

If this doesn’t seem appealing to you, you might negotiate for your company to pay directly for full-service movers. 

While doing research, consider what competing companies are offering as part of their relocation packages. If you have found a competing offer that has a better relocation package, you can mention this as you present your case. Your company might be willing to meet you at least partway if they know that there is a more attractive offer elsewhere.

#2: Know Your Costs

Before you can present a case as to why you want a different payment arrangement or why you are requesting more money for your relocation assistance package, you need to have the data to back this up.

Use a solid moving calculator that can give you a breakdown of estimates for comparative options like:

• Full-service movers
• Freight shipping
• PODS
• Moving truck rentals

This can be very useful when negotiating for added costs like moving supplies for a DIY move, presenting to a company how you arrived at those cost estimates. I’ve used Move Buddha’s calculator for this and like that I don’t have to leave my email, or personal information, unlike others.

You will need a detailed list of things like:

• Moving expenses
• Housing costs
• Utilities
• Per diem while house hunting
• Temporary living expenses
• Moving supplies
• Travel costs

Having real-world quotes can help justify any request. If your company is offering a reimbursement or lump sum as the only option, you might note your particular tax bracket as well and what you will have to pay in taxes on that lump sum or reimbursement income, and then add that on top of your expenses when negotiating. 

Moreover, as you make this list, prioritize the things that are most critical to you during this move, like coverage for spousal job assistance if you absolutely need your spouse to start bringing in income right away, or temporary housing costs while you are searching for a new home.

If you have everything listed in terms of your personal priorities for this move, you’ll be in a position to present all of the items, but then compromise on those things that are less critical.

There are so many things that you can ask for as part of your relocation assistance package, based on what it is you are going to need during that relocation:

• Childcare
• Spousal job assistance
• Furniture allowance

So take time to estimate your moving expenses with a moving calculator, research that area so you know what the taxes or the real estate market will be in the area. All of this will help you design your case and present facts and figures as to what the company has to offer in order to make this a smooth transition.

#3: Know Your Case

When it comes time to make your case, communicate what it is you need and why. Explain to your company how this would benefit them as well.

If adding things like spousal job assistance as part of your relocation assistance package is a priority to you, explain to your company that having that particular benefit would offer the security or family needs to move faster, so you can start sooner.

If your company can’t offer the full coverage you are searching for, come at them with those proposed compromises, like a slight salary adjustment to cover the uncovered costs. You might be asking for an extra $6,000 that they can’t give you up front, but they might be able to add an extra $500 to your salary for the next year.

Consider alternatives like a lump sum payment. If, for example, your company is offering a certain level of coverage but only through their designated third party, you might be able to negotiate for a lump sum payment up front instead and then save money by doing some aspects of the move yourself. 

Ask about partial reimbursements. Perhaps they can’t give you the full $6,000 you are asking for, but they can give you $3,000 with the spousal job assistance feature, which might make things more attractive for your family.

If, for example, you have children who are currently in school, you might negotiate for your job to start a few months later so that your children can finish their current school year in exchange for partial reimbursement.

Worst case, if all you can get is partial reimbursement on some items but not all the benefits you want, talk with your family and consider whether the job comes with a significant enough bump in salary or other benefits to make it worth eating that cost out of pocket. After all, some relocation assistance is better than none, especially if it gets you to a better job or a better career. 

#4: Know Your Contract

Once you have come to an agreement, everything has to be secured in writing. Make sure that you get all the new details, amounts, conditions, and time frames written into your contract right away. This should be signed and dated so that there are no potential conflicts in the future. 

Most companies will have a designated liaison who handles this, and it might be the HR department. Either way, make sure that all of the details in your contract are exactly as discussed and agreed before you sign it or any other work contract. 

Summing Up

Overall, there are a lot of ways that you can negotiate your relocation assistance package. Start by knowing what the typical packages are from your company. Use MoveBuddha to calculate your actual expenses and document what those might be so you can make a good case to your company. 

When presenting that information, make sure you communicate your needs, and if they are unwilling to meet some of those requests, have alternatives in mind, like partial reimbursements or lump sums, as a mutually beneficial alternative.

Be sure to communicate how your proposed package benefits the company with things like a faster transition or being able to start at the office sooner. Once final negotiations are completed, get everything in writing. 

The post How to Negotiate Your Relocation Assistance Package appeared first on Penny Pinchin' Mom.

I might be alone in this, but after every move, I go out of my way to save my moving boxes. I think “Well, what if I need them again?” so I carefully remove the tape and start placing them off to the side. 

After a few weeks, they are in the way of my actual furniture, so they transition to the closet. But then I need the closet, so they end up in the garage. Then they get wet, and finally, I throw them out. 

Everyone has seen that Nextdoor post at some point asking for moving boxes. It is a time-sensitive and sometimes expensive need. That’s why I always try to save mine, even though they are never as good the second time around. 

So if you have a garage full of wet boxes, too, and need new moving boxes, or you’ve never had to move before and don’t know where to look, I’ll go over how to determine what you need and where to look. 

Determine What You Need

Figuring out how many boxes you need can be tricky.

I’ll demonstrate:

Bobby loves Warhammer. He has figurines scattered throughout his house, all of which are handmade and delicate. He also has a lot of Japanese artwork, board games, an impressive computer room, a cat, and some basic furniture.

Crystal loves camping. She considers herself a minimalist, and she only buys top-quality items she knows she will use. One of the two bedrooms in her home is for all of her camping gear. This includes a closet used to hang all of her backpacks from specialty hangers, and every wall lined with shelving units to hold things like Yeti Coolers, REI tents, snowshoes, and the like.

Neither Bobby nor Crystal thinks that they have a lot of stuff, but the number of moving boxes they need is going to look very different.

Bobby, for example, is going to need a lot of small boxes, sometimes called book boxes, especially for the figurines. Then he’s going to need a lot of larger flat boxes, sometimes called painting boxes or TV boxes.

Crystal is going to need a lot of large boxes for the camping gear because the measurements for camping backpacks are quite extensive, as are the measurements for a lot of camping gear.

So, start with a moving calculator. I use this as a tool to help: https://www.movebuddha.com/packing-moving-box-calculator/

It will generate roughly how many boxes you need based on the size of your home. You can amend this based on the number of bedrooms or the specialty items you might have, like Warhammer versus camping.

Once you have your list, you can save it as a PDF or print it right away and then use that list to make your purchases. So, where do you buy moving boxes?

Where to Find Moving Boxes

I’ve looked everywhere for moving boxes, and here’s what I’ve found:

#1: Grocery/Liquor Stores

Ok, so everyone has told me this one my whole life, and yet I’ve never had success. I’ve been told that boxes for things like apples are particularly strong, and of course, the boxes for liquor have to be equally strong. 

I frequent my local liquor store enough that they know me, my projects, and how work is going. 

Yet, when I last moved and asked them if they had any spare wine boxes (good internal dividers for things like packing glasses), they said they “could probably give like 2.”

To be clear, if you buy more than three bottles of anything in that store, they ask if you want a box and give you one for free. 

But for some reason, when I seemed interested in the whole box situation, they got all tight-fisted. 

Still, this is a method some of my neighbors have used and a method my uncle continues to use (no, my uncle isn’t moving, he is just a hoarder who collects used boxes ‘just in case’). As such, I am leaving it here because you might have better success. 

But be warned, boxes are supposed to stack on top of one another when en route, and that’s why it is important for them to be uniformly sized, so if your stores are as stingy as my liquor store, it might not be worth it. 

#2: Amazon

This is where most people start their search. It is a good place to find what look like cheaper options than the main stores (Home Depot, U-Haul). 

Be warned, this isn’t going to cut it for quality boxes in most cases. 

The thing about moving boxes is that they are designed to have sturdy walls that can stack on top of one another uniformly. This is a very important component as it helps displace the vibrations and movement in such a way that the moving box walls don’t crumple. 

(FYI: Making sure that they are completely full all the way to the top with extra packing material is the other part of ensuring they don’t crumple.)

So, there are two things to consider here:

1. If you buy from Amazon, be prepared to buy almost all of your boxes from the same supplier so that they are uniform.
2. If you buy a cheaper moving box from Amazon, be prepared for thinner walls.

There are a lot of sellers on Amazon, so this isn’t true of all moving boxes, obviously. I, for example, found specialty boxes for things like pictures as well as other moving supplies like furniture blankets, tape, and bubble wrap for cheap. But most of their boxes were a let-down. 

*NOTE: If you order things from Amazon on a somewhat regular basis, keep your eyes out for good-quality boxes. These include boxes in which heavy items are shipped, as the cardboard is typically much stronger for heavy items. If you can, flatten and save these in anticipation of a move. I used to get monthly subscriptions that would come in the same oversized, heavy box, and after a few months, those boxes served me well during my move. 

BUT, be sure they are uniform. If you buy most of your moving boxes from U-Haul and then have four from Amazon, those four probably won’t stack as nicely with the U-Haul.

#3: U-Haul

This is where I ended up buying most of my boxes for the last move. 

As I mentioned, boxes are designed to be uniform. U-Haul is the king of uniformity. Their boxes are very thick. 

BIG, fat, HUGE spoiler: they also stain your clothes. Picture the U-Haul logo. Their boxes are all stamped with the same green, red, and brown colors, and that ink will attach to all of your beige, blue, and black shirts. Each time you pick up a heavy box and hold it against your body and move even so much as to look to your left or right, it will leave a smudge not only on your skin but on your clothes.

I was devastated that some of my favorite hiking shirts were stained. It’s been several dozen washes and several months, and those stains still aren’t coming out. Now everything just looks dingy.

So, aside from the fact that they will stain your clothes, everything else about them is great. They are thick, sturdy, durable, and stack nicely. 

U-Haul has so many different options, like the small book boxes that are even thicker and sturdier, the dish pack boxes, the large wardrobe boxes (that was a doozy to move), and TV boxes. 

You can basically find any size you need, and they are all designed to stack on top of one another very efficiently. You can also use your moving calculator list to purchase the quantity you need. U-Haul not only offers a la carte items, but they also have package deals that are based on the average household size.

Anything you don’t use you can return for a full refund. So if you buy 20 medium boxes and you only use 17, you can swing by your local U-Haul shop and return the last three. I always thought I would be returning boxes, and I never did, but it was still nice to know that was an option. 

#4: Home Depot

Home Depot actually has a similar moving calculator, and you can change your estimate based on things like a garage or the extra tools you might have. Then you can save it, print it, or even order it right away.

You can totally get by with Home Depot quality moving supplies. They are about the same grade as U-Haul (and won’t stain your clothes). Home Depot is nice because you can go pick them up directly from your local store or have them delivered, and you can add things like mattress covers.

I would recommend Home Depot the same as U-Haul. I’ve used them before, but didn’t during the last move because they were too far away. 

#4: Lowe’s

To me, Lowe’s is somewhere in between Target and Home Depot. It isn’t for people who need to get actual work done, but it’s a step above the basic Karens who want to fill their home with prefab furniture from Chip and Joanna Gaines. 

Still, they have moving boxes, and they are almost the same quality and grade as Home Depot. If you have a Lowe’s near you instead of a Home Depot, this might be a good alternative. Just remember, the ink for that blue brand is going to end up on your shirt. 

#5: Walmart

Walmart sells moving boxes and supplies, too. These typically have to be ordered online because they don’t have them in stock at the stores. I have used some of their boxes before, and I wasn’t impressed.

They didn’t have the same Chinese mass production (lack of) value as the things on Amazon, but they weren’t as good as U-Haul, Home Depot, or Lowe’s. Honestly, I would stick with them for benefits like same-day delivery if you have a Walmart subscription, for those moments when you absolutely need just a couple more boxes or moving supplies. 

Summing Up

You can find moving boxes basically anywhere online, you can ask your friends, or you can search through dumpsters like my crazy uncle. But realistically, trying to cut corners isn’t going to save you much, and it might result in a lot of unnecessary damage to your personal goods when all is said and done.

So try to save money elsewhere with DIY packing or U-Pack freight shipments, rather than on the boxes. 

Start with a moving calculator from places like MoveBuddha or Home Depot to figure out the quantity you need, and then use that as your guide to make purchases while you pack. Invest in good quality boxes with thick, sturdy internal walls and uniform designs from places like U-Haul, Home Depot, and, for specialty boxes, Amazon.

The post How Many Moving Boxes Do You Need and Where Do You Get Them? appeared first on Penny Pinchin' Mom.

Having completed dozens of moves in my lifetime, using full-service movers, PODS, U-hauls, U-Packs, and my personal vehicle, I can tell you that choosing between a DIY move and full-service movers is no simple decision.

There are endless numbers of overlapping factors at play. If anyone has ever seen the movie Whiskey Tango Foxtrot or served in the war in Afghanistan, they know the visual representation of a ridiculously high number of overlapping features. 

That is what a DIY move versus a full-service move brings to mind.

Full-service movers are companies that handle everything for you from start to finish, including packing your entire household and shipping it to the new location, then unpacking it and putting it in the respective rooms.

A DIY move can take many forms, including you packing your personal goods and loading them into a POD that then gets picked up and shipped to your new location, or you packing all your goods and loading them into a rented trailer and driving them across the country.

There are pros and cons to each, and choosing between them brings up a lot of questions like: 

• How far are you traveling?
• Do you have a lot of antiques that you want to pack yourself?
• Do you have a lot of free time or energy in the evenings, maybe a lot of kids who can participate in helping the family get everything loaded?
• Do you have friends who might provide free labor in exchange for pizza and beer on Moving Day?
• Are you excited about the prospect of filling out insurance claims only to be told that you won’t be compensated the full value of the items your moving company broke?
• Are you OCD about how your personal goods get packed or organized?

Fun tip: If you supply the local laborers that your full-service mover subcontracted with pizza and beer, you can reduce the likelihood of having to fill out insurance claims.

So how did these two compare, and what are the pros and cons of each? 

Distance

First things first, there are situations where a DIY move absolutely makes sense. These include any situation where you are young, single, and can literally fit everything you own into a handful of boxes in the back of your car. There is no need to hire a full-service mover for this situation.

On the other hand, if you are traveling internationally, you might strongly consider working with a full-service moving company so you don’t have to deal with all those customs forms or other import requirements for things like vehicles and personal goods.

Additional Considerations:

DIY

If you are driving a short distance, maybe moving from one end of town to the other or even from one part of the state to another, a DIY move with companies like U-Haul can provide you with affordable vehicle rentals and local labor.

Full-Service

If you are traveling across the country, you might consider a full-service move so that you don’t have to drive all of your materials thousands of miles. 

Cost

Cost is usually the first thing people look at. However, there are a lot of factors to consider with cost.

For starters, using a moving calculator like MoveBuddha makes it easy to calculate what the cost difference will be for a full-service move versus a DIY move. As mentioned, DIY moves can take many forms, so even if you are planning to shove everything in your SUV and drive it across the country, you can still use these calculators to see how many boxes you might need and whether you can Tetris your way through that figure. 

A full-service is going to cost you significantly more because it involves anything and everything from packing materials to labor. However, depending on where you are moving, the cost for a DIY move might also include things like extra towing equipment, gas, hotels, and packing materials. 

Additional Considerations:

DIY

If you are using a service like PODS or U-Haul, you can get discounts on things like motels or hotels, saving you money while you are driving from your current home to your new home.

You also need to consider the cost of things like:

1. Gas
2. Food on the road
3. Packing materials
4. Extra equipment 
5. The mileage on a personal vehicle and any related wear and tear

You will still likely save money depending on the size of your personal goods and where you are moving. If you aren’t planning to drive, and you don’t own a lot of things, you might be able to get away with flying to your new location and simply paying the extra fee for checked baggage. This works really well if you are willing to sell all of your furniture before you move and buy used furniture when you get where you are going. 

Full-Service

The representatives who get sent to your home to give you an estimate for a full-service move are often sales associates who work on commission. Moreover, they are told that if a client is moving for work or for the military, the estimate should be as heavily padded as possible.

So, if you are being reimbursed for your travel through the military or through your company, avoid telling the moving service this, or you will see a significant jump in your costs.

Timeframe

Time frame is a big consideration for many people when looking at the pros and cons of a DIY versus a full-service move. If you have a lot of time, you can look around and get quotes from different full-service movers, negotiating until you get a good price, or you can slowly but surely pack your house without a lot of stress.

On the other hand, if you don’t have a lot of time, you might not have the same availability for things like rental trucks, PODs, or even full-service movers; some movers might not be available on short notice. Others will overcharge as a result. 

Additional Considerations:

DIY

With a do-it-yourself move, you may or may not have a lot more flexibility in terms of preparation. For example, at one point, I knew that I was going to be relocated for work, but I didn’t yet know when or where, so I started slowly packing the rooms I didn’t use very frequently, the things in the closet, and the seasonal things that I kept in the garage.

When the time came, when I knew where I was going, and I was told that I only had six weeks to get everything ready, it didn’t seem as stressful because I had already spent three months taking things to the dump, downsizing, and packing a lot of the things that would have taken up most of my time. Sure, that added its own form of stress because I was washing the same two plates, cups, and pots and pans every day since the rest of my kitchenware had been packed for weeks, but in the end, it was worth it.

Full-Service

A full-service move is going to be ridiculously fast, so fast that you’ll think a tornado blew through your house and left you with nothing but garbage and a lot of scratches in your parquet wood floor.

So, if you are in any type of hurry and you need things done quickly, it’s well worth the cost of having so many hands in the kitchen, literally and figuratively.

Quality

The quality you get is likely going to be better when it’s a DIY move. This is simply because you care more about your personal goods than a stranger. You will probably take more care when it comes to collectible books that have emotional value to you, versus someone who looks at all the books as something to be stacked in a box. 

Additional Considerations

DIY

You get what you pay for, so remember that with a DIY service of any kind, you are the one responsible for how you pack and how you load your personal goods.

Take time to watch videos on YouTube from moving companies. A lot of Canadian moving companies have training videos that are available to the public, so you can learn how to properly pack your items, how to stack your boxes, and how to arrange furniture in a trailer or moving truck.

This can ensure that when your POD or U-Pack is delivered, the personal Goods inside are not damaged.

Full-Service

As mentioned, full-service movers contract local labor, and those local moving companies usually subcontract, so you can get lost in a sea of subcontracts and daily laborers when it comes down to whoever is physically helping you on the ground to move your items into or out of the moving truck.

Not all working professionals have the same value system as others. More importantly, they are paid based on the number of moves they can get done. I had an experience where I hired a full-service moving company, and it took them two days to pack everything, and they were scheduled for 2 days to unpack everything. But by around 3:00 p.m., they were certain that they could get everything done on that first day, so they pushed themselves to do so because if they could get everything done, then they could do another move the following day and make twice as much money.

But this meant that the last few hours were spent watching them break my things, strip my furniture, put it back together the wrong way, knock into some of my delicate pictures and portraits because they were too busy to carefully move furniture up and around the staircase the way they should have. They were at the house until dark, annoyed and stressed.

This is not to say that everyone will experience the same thing, especially if you don’t have as much stuff as I did, but the nicer you are to the people with whom you work and the more generous you are with your pizza and beer, the more likely they will take good care of your items. 

Conclusion

As I said, there are pros and cons to each; a DIY move might save you money up front, but you might end up losing money when it comes to replacing things that your full-service movers broke when they unloaded. A full-service move might be faster, but the quality of the service you receive is less than what you and your loved ones might put toward your personal goods.

Really, it comes down to where you are, the quality of the moving company you choose, and how well you calculate your costs ahead of time with a reliable moving calculator. Consider the aspects that are most important to you for every move, as every move will be slightly different. 

The post DIY Move vs. Full-Service Movers: Which one is best for you? We’ve done the research. appeared first on Penny Pinchin' Mom.

Turning a small investment into a solid profit isn’t always easy. Many side hustlers spend hours searching for the perfect products to flip, only to discover their potential earnings are eaten up by high purchase costs, shipping fees, and marketplace commissions. The traditional reselling markets—like thrift stores and garage sales—have become increasingly competitive as more people seek extra income streams.

What if the answer to your reselling struggles was hiding in plain sight? While everyone else fights over estate sales and thrift store finds, discount retailers like Dollar General sit largely untapped by serious resellers. These stores offer consistently low prices on everything from seasonal decor to brand-name household items—creating perfect opportunities for profit when you know what to look for.

With the right approach, Dollar General can become your secret weapon in the reselling world. From mastering their unique clearance system to knowing exactly when seasonal markdowns happen, there are specific strategies that can help you turn Dollar General purchases into reliable profits. Here are nine proven ways to make money reselling items from this discount retailer giant.

Profitable Strategies for Dollar General Resellers

1. Why Dollar General is a Gold Mine for Resellers

Dollar General creates unique opportunities for resellers because many profit-seekers ignore these stores in favor of big-box retailers. This oversight gives you an immediate competitive advantage. When sourcing products from Dollar General, your profit margins can reach between 30-100% on carefully selected items—far higher than the typical 10-20% seen with traditional retail arbitrage methods.

The store’s presence in rural areas provides another significant advantage for resellers. Many Dollar General locations serve communities with limited shopping options, meaning you can find items that might be common in your area but highly sought-after elsewhere in the country. Additionally, Dollar General’s own brand products typically sell at 75% below comparable name-brand items, creating natural price differences that you can leverage when reselling. This price gap allows you to offer products at competitive rates while maintaining healthy profits.

2. Best Dollar General Products to Flip

Seasonal merchandise consistently produces the highest returns when reselling from Dollar General. Holiday decorations typically arrive in stores early and get marked down quickly after the holiday passes. For example, you can purchase Easter decorations at 70-90% off in April and sell them for close to full price the following February and March. Halloween and Christmas items follow similar patterns, often yielding three times your investment when held until the appropriate selling season.

The clearance sections contain some of Dollar General’s most profitable potential flips. Watch for discontinued packaging on name-brand health and beauty products, which often sell for 50-90% below their normal price but maintain their full market value when listed online. Products featuring popular characters from recent movies and TV shows can also bring substantial returns, especially after these items disappear from regular retail stores.

Brand-name cleaning products, over-the-counter medications, and personal care items frequently appear at Dollar General for much less than at major retailers. Products from companies like Tide, Crest, and Neutrogena packaged in smaller sizes specifically for dollar stores can yield 40-60% profits when sold individually or combined into bundles on various online marketplaces.

3. Essential Tools Every Dollar General Reseller Needs

Price comparison applications make on-the-spot purchasing decisions much easier during your store visits. Apps like Scoutify, Profit Bandit, or the free Amazon Seller App can instantly show you potential profit margins by scanning product barcodes and calculating your expected profit after accounting for fees, shipping costs, and taxes. For Dollar General specifically, their DG GO! app allows you to scan items in-store to check for additional discounts that might not appear on shelf tags.

Inventory tracking systems prevent costly purchasing mistakes like buying duplicates of items you already have in stock. Basic spreadsheet templates work well for beginners, allowing you to track purchase cost, expected selling price, and actual profit for each item. As your operation grows, dedicated inventory management programs like InventoryLab or Sellbrite become necessary to maintain organization and prevent costly errors.

Online communities focused on Dollar General reselling provide valuable real-time information about clearance patterns and special deals. Facebook groups such as “Dollar General Clearance” and “DG Penny Hunters” share timely updates about markdowns across different regions. These communities give you a significant advantage when planning which stores to visit and what products to look for during your shopping trips.

4. The Clearance Calendar and Penny Deal System

Dollar General follows a predictable markdown schedule that successful resellers learn to navigate. Tuesdays mark the introduction of most new clearance items, while seasonal markdowns typically begin 1-2 weeks after a holiday ends. The first major price reductions start at 30% off, then progress to 50%, 70%, and finally 90% over 2-6 weeks, depending on inventory levels and the specific season.

But the penny deal system represents the ultimate discount at Dollar General. When seasonal merchandise reaches the end of its clearance cycle but remains unsold, these items should be removed from shelves, but often aren’t. Instead, they get marked down to one penny in the store’s computer system. While employees shouldn’t sell these items if they recognize them, they ring up for $0.01 if they reach the register, creating extraordinary profit opportunities for resellers who can identify them before checkout.

You can spot potential penny items by looking for products with specific colored stickers that indicate older clearance cycles (or check out my free weekly Penny List). Yellow price stickers generally signal the final clearance stage before penny status. The most reliable penny items typically come from seasonal merchandise that’s 2-3 seasons old, discontinued product lines, and older packaging designs that have been updated with newer versions.

Also See: Beginner’s Guide to Penny Shopping at Dollar General

5. How to Calculate Profitability Before Buying

The fundamental return-on-investment formula for reselling is straightforward but essential: (Selling Price – Total Costs) ÷ Total Costs × 100 = ROI Percentage. When evaluating Dollar General items, your total costs must include the purchase price, marketplace fees (typically 10-15%), packaging materials, and shipping expenses. A quick mental calculation helps determine if an item meets your profit requirements—multiply your purchase price by three, and if you can sell it for that amount after deducting all fees, it’s generally worth buying.

Establish a minimum profit threshold appropriate for your business size. For smaller operations, aim for at least $5 profit per item sold and a minimum 50% ROI. As your business grows, you might adjust to focus on higher-volume, lower-margin items, but beginning with strict profit requirements helps build capital and prevents investment in marginal products that tie up your money and storage space unnecessarily.

6. Where to Sell Your Dollar General Finds

Facebook Marketplace offers the highest profit potential for many Dollar General flips because it charges no listing fees and enables local pickup, eliminating shipping costs entirely. However, this platform works best for larger items and product bundles that appeal to local buyers within a reasonable driving distance. For smaller, more easily shipped items, eBay typically provides the widest customer base, especially for discontinued or hard-to-find products that buyers specifically search for online.

Amazon FBA (Fulfillment by Amazon) provides tremendous scaling potential but comes with stricter requirements and higher fees than other platforms. This option works exceptionally well for brand-name health and beauty products from Dollar General but can be challenging for seasonal items due to long-term storage fees that accumulate over time. Mercari and Poshmark have gained popularity for reselling Dollar General home decorations and gift items, with their simplified shipping options and social selling features attracting buyers willing to pay premium prices for unique finds.

Platform fees vary significantly and directly impact your profitability: Facebook Marketplace charges 0% for local pickup and 5% for shipped items, eBay takes 10-15% including payment processing, Amazon’s fees range from 15-40% depending on product category, while Mercari and Poshmark charge flat rates of 10% and 20% respectively. Always select your selling platform based on the specific product category and your target profit margins.

7. Pricing Strategies That Maximize Profits

The high-price approach works best for seasonal items purchased at deep discounts. For example, Christmas decorations bought at 90% off in January can be listed at full retail price the following November, maximizing your return on investment even if it means storing items for months. In contrast, everyday items like discontinued brand-name products often sell better with a quick-turnover strategy—pricing them 20-30% below current retail generates faster sales and frees up capital for additional purchases.

Bundle techniques substantially increase your average sale value. Combining related Dollar General items—like matching holiday decorations or complementary kitchen products—can transform several low-value items into a desirable collection that commands a premium price. The most effective bundle combines one highly desirable “anchor” item with several related products that have lower individual value but enhance the overall appeal of the package when grouped together.

Create urgency through time-limited pricing for seasonal merchandise. As holidays approach, gradually increase your prices on relevant items. This approach takes advantage of buyers’ increasing willingness to pay as the season progresses—what might sell for $15 in early October could bring $25-30 in late October as Halloween approaches and availability diminishes in regular retail stores.

8. Building Efficient Reselling Systems

Creating optimized sourcing routes dramatically increases your efficiency. Map clusters of Dollar General stores within reasonable driving distance and establish a regular rotation, visiting each location on specific days aligned with their markdown schedule. Stores in rural areas often have better selection and face less competition from other resellers, making them worth the extra travel time. Maintain a store-specific record documenting which locations consistently offer the best clearance finds to focus your efforts.

Simplify your listing process by creating templates for common categories you sell. Prepare standard descriptions, shipping information, and photography setups that maintain consistency across your listings. Group similar activities together—take all photos in one session, write all descriptions in another, and schedule all listings during a dedicated time block to maximize efficiency and maintain quality standards across your online storefronts.

Develop packing and shipping routines that minimize hands-on time for each order. Keep standard shipping supplies organized and easily accessible, and consider pre-packaging similar items immediately after photographing them. For higher-volume sellers, shipping software that integrates with multiple selling platforms can dramatically reduce fulfillment time and eliminate manual entry mistakes that lead to costly shipping errors.

9. Common Mistakes New Resellers Make

Inventory challenges can quickly undermine your Dollar General reselling business. The most common error is purchasing too many identical items, creating inventory bottlenecks that tie up your capital and storage space. While finding 20 identical seasonal items at 90% off might seem like an amazing opportunity, market demand may only support selling 5-10 at profitable prices. Always start with smaller quantities until you confirm actual selling speed for each product category through real-world sales data.

Many resellers ignore Dollar General’s more ordinary categories like basic household supplies, focusing exclusively on obvious clearance items. This approach misses significant opportunities. Basic items like specialty light bulbs, small tools, and niche cleaning products often sell for 2-3 times their Dollar General price online because customers value convenience over traveling to a physical store for a single needed item.

Overlooking tax obligations can eliminate your apparent profits when tax season arrives. Maintain detailed records of all purchases with itemized receipts, and track all business expenses including mileage, shipping supplies, and home office usage. Consider using accounting software designed specifically for resellers, and set aside approximately 30% of profits for potential tax payments. As your business expands, consult with a tax professional familiar with reselling businesses to maximize deductions and ensure full compliance with regulations.

Turn Your Dollar General Discoveries Into Steady Income

With these nine strategies in your reselling toolkit, you’re positioned to capitalize on opportunities that most arbitrage hunters miss entirely. Dollar General’s unique pricing structure, predictable clearance patterns, and widespread locations create perfect conditions for profitable reselling—whether you’re looking to generate side income or build a substantial business. The key lies in systematic sourcing, careful item selection, and strategic selling that aligns with seasonal demand.

Start your Dollar General reselling journey by focusing on one or two of these strategies rather than attempting everything at once. Perhaps begin with seasonal clearance items or penny finds, then gradually expand your approach as you gain experience. The beauty of this business model is its scalability—you can start with just $50-100 in capital and reinvest your profits to grow steadily over time without the significant upfront investment many other side hustles require.

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When you sign for your home, you know right at that moment what your payment will be.  You can see it clearly outlined in your amortization schedule, so you know your principal and interest.  However, there is MORE to owning a home than just your mortgage payment.

Many times, new homeowners forget about the monthly costs of owning a home.  And, unfortunately, there are also things your homeowner’s insurance may not cover either!  Make sure you keep these in mind when determining your budget,  so they don’t take you by surprise.

12 HIDDEN COSTS OF OWNING A HOME

1. Insurance

If you rent, you may have been paying a very small amount annually for renter’s insurance.  However, when you own a home, you will pay a lot more to have home owner’s insurance.  In fact, it is much more!

You may not have to pay only homeowner’s insurance, but also private mortgage insurance (called PMI).  If you do not put at least 20% of the purchase price of your home down in cash, then you will have to pay for this additional line item.

This typically costs around .05 – 1% of the total loan amount.  For example, if you purchase a $150,000 home, you could pay $1,500 per year or $125 per month.  Fortunately, once the amount you owe on your home drops below 20% of the value, you can request it be dropped.  Even if you forget, your lender is required to drop it once your loan when the value drops to 78%.

The average homeowner will pay more than $70 a month towards homeowner’s insurance.  You need to make sure that your policy covers not only the cost to rebuild your home, but also all of the contents inside.

Most of the time, both of these amounts will be rolled into the cost of your mortgage, but make sure you keep that in mind when looking at loan calculators so that you do not forget that you will pay for these on top of your monthly payment.

2. Taxes

When you rent, you do not have to pay any additional taxes to live in your apartment or home.  However, when you own your home, you may need to also pay personal property taxes (depending upon your state, of course).   These amounts can be thousands of dollars annually.

Your taxes are another thing you need to consider when buying a home. If you choose to live in a more affluent area, your taxes may be higher.  The MLS listing will typically include this information as you search for properties.

If you have a mortgage your taxes are usually included in the monthly payment. That amount is held in Escrow (a holding account attached to your mortgage) and is paid annually on your behalf.  This amount is also usually included in the monthly mortgage payment, so it can be held in an Escrow account and then paid annually, on your behalf.

3. Furnishing and window treatments

Sometimes, when you purchase a home, some appliances are not included.  Make sure you know up front what you need to purchase.  Often this includes appliances such as a refrigerator, washing machine, and dryer.  If your home has more space than where you currently reside, you may have additional furniture costs as well.

You may also need to purchase blinds or shades (especially in the case of a brand new home).  These costs can quickly add up, so include these in your budget.

In addition, if you did not have a lawn previously, you will need to purchase a lawnmower and other lawn maintenance equipment to keep up with the growing grass – or hire a service to cover those lawn care costs.

4. Utilities

Some renters are required to pay for utilities.  However, when you own a home, these costs can increase as they are typically larger than apartments.  That means more cooling and heating costs.    You can request this information when looking at the property, so you can have an idea of these costs before you put in an offer.

5. Maintenance and repairs

When you rent and the sink backs up, you just have to place a call to your landlord and he or she takes care of it for you.  When you own your home, you have to cover this yourself.  On average homeowners spend anywhere from $1500 – $5000 annually on home repairs.

Your costs may be lower if your home is newer, but if you opt for an older home, it can often mean that there will be more repairs to be made.  But, no matter the age of your home, keep this in mind when planning your monthly budget.

6. Pest Control

Most of the time, when you see a bug, you just kill it and go on with your day. But, what happens if you notice an infestation of ants or worse yet – catch a rodent eating dinner in your pantry?! You have to get rid of them.

When you rent, you just call the landlord and they take care of this for you. When you own your home, you have to take the steps to get rid of these pests on your own. While many times you may be able to purchase products yourself, there are times when you have no choice but to call an expert (think termites).

What might work best is to pay for routine maintenance from a pest company to avoid the additional costs associated with losing furniture, food or worse, like replacing trim, your floor, or more!

7. Kids and Pets

It may seem like a given, but it something you don’t plan for. You know you have to feed and clothe your kids, but you also need to plan on home repairs because of them.

When our youngest was 3, she stuffed a bunch of toilet paper into our upstairs toilet and I did not know it. That is until I was standing in my kitchen and noticed water dripping from the ceiling. It was not that much damage, but still cost just about the same amount as our home owner’s insurance deductible, so we just paid it all ourselves to avoid filing a claim (I think we paid only $150 more than our deductible).

Thankfully, we had money set aside for this repair. We don’t want our kids to damage anything and even the best kids in the world can do something, without even meaning to.

8. Time

When you rent, the landlord takes care of your maintenance. You don’t spend time mowing or fixing a leaky sink. That falls onto your shoulders. You have to make the time to fix those small repairs before they turn into larger ones which take more of your time!

9. Closing Costs

When you purchase a home, there are closing costs associated with the purchase. These average between 2 – 4% of the mortgage balance. You can often negotiate to have the seller cover all or a part of these costs. If you do not have the cash, they can be rolled into your mortgage, which can, in turn, increase your monthly payment.

10. Homeowner’s Association or Condo Fees

Many areas have Home Owners Associations or Condo Fees, which you have to pay.  These are either due monthly, quarterly or annually.  

Your fee covers things such as the general maintenance of signage, flowers and sometimes even a swimming pool.  They can also be used for paving and other maintenance in your community.  You will need to ask up front if this is included, so you aren’t surprised when you get to closing and learn that you have more expenses. 

11.  Upgrades

When you look at your home, you can often overlook the floral wallpaper in the bathroom or bright pink walls in the nursery.  You figure it is easy enough to fix it yourself. Paint and supplies cost money, and if you can’t do it yourself, you’ll need to hire someone to do the work for you. You may also want to (or eventually need to) update the exterior with new landscaping, shutters, or paint.  These hidden expenses can quickly add up, which can blow your budget.

Other hidden things are overlooked as factors when budgeting for homeownership. In areas with hard water, installing a water softener shower head, or system becomes less of a luxury and more of a necessity over time. Hard water gradually damages plumbing, reduces appliance lifespan, increases utility bills, and requires more cleaning products to combat soap scum and scale buildup. While touring homes, buyers rarely test water hardness or factor in the $500-$2,000 cost of whole-house systems (plus ongoing maintenance). Even individual shower head solutions ($30-$150) add up when installed in multiple bathrooms, making water treatment one of those hidden expenses that affect both comfort and long-term home maintenance costs.

12. Safety

You need to protect your investment, and more importantly, your family.  Adding a security system or hiring a security company is another fee you may not have thought about.

With a little careful planning, these hidden homeowner costs won’t take you by surprise as you’ll be ready for them.

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You want to buy a house.  It is an exciting time looking at different floor plans and models.  But, knowing what you should spend on a house vs. how much you can afford are often two very different things.

They say the American Dream is a beautiful house, 2.5 kids, a dog named Max, and a home to call your own. However, the dark side of that American Dream is also massive debt, overspending, and poor financial planning.

I’m not going to try and justify either image, explain why “Max” is a terrible dog name, nor am I going to explain how to make 2.5 kids.  However, the one aspect I can speak on is your home and how much you should spend – or not spend.

As a real estate entrepreneur, I know a thing-or-two about homes. In fact, over the past five years, I’ve purchased and moved into five different homes – each time collecting more junk to add to the mix, making “moving day” (or “moving week,” in my case) more and more difficult and expensive.

Yes, I realize this is insane. However, in my quest for real estate mogul-hood, I’ve made both smart and dumb decisions when buying these homes and learned a lot along the way. Perhaps the most important thing I’ve learned is to always buy within your means. In other words: don’t spend too much.

But how much is too much? This article is going to explore that question and hopefully help you discover how much you should spend on your next house and still live the frugal life.

HOW MUCH SHOULD I SPEND ON A HOUSE?

How Much You Spend vs. How Much You Make

Bear with me a moment. Yes, this first point is obvious, but you’d be amazed at how quickly common sense flies out the window.  It happens when you lay eyes on that gorgeous front porch, large backyard, man-cave in the basement, or granite kitchen island. Far too many homebuyers quickly lose focus on their financial limitations when emotion enters the picture.

Not sure how to figure out how much to spend?  Start with how much you can afford to pay a month.  When you obtain a mortgage, your monthly payment depends on the size of the loan, so obviously, a more expensive house is going to cost you more each month. It’s much easier to think of a house cost as “$1,000 per month” than $154,997.”

To determine how much you should pay each month, it is important that you look at it from a perspective of how much you currently make, right now. Not in six months, not in two years; now.

Many people buy a home based on the belief that they will be getting a raise soon or some other financial windfall will come their way. Don’t be that person. Buy with what you can afford today, and if that windfall comes, you can pay off your mortgage even faster.

A good rule of thumb is the 30% rule.

Your house payment should be no more than 30% of your take-home pay. If you bring home $3,000 per month, your mortgage should not be more than $1,000 per month. This number also includes the taxes and insurance that go with that house payment.

To figure out your monthly payment, just use a free online mortgage calculator along with current mortgage rates and work backward.  Here is one example:

Notice I plugged in a loan amount of $150,000, with a 3.75% interest rate, a 30-year repayment, and $2500 for taxes and insurance. The total payment ends up being just over $900 per month. From this calculator, you can tweak the numbers to find out what the maximum house you can afford.

How to Buy a Home In Your Budget

When you begin shopping for a home, follow the following three easy steps to avoid overspending:

1. Figure out how much you want to spend (see above.)
2. Write down that amount.
3. Don’t look at properties more expensive than that.

Your real estate agent will want to show you more expensive properties. Don’t do it. Stick to your guns, know what you can afford, and don’t go over that number. By writing down your maximum amount, you’ll be able to

Additionally, for the frugal-minded folks out there, I offer this important piece of advice: Just because you can afford a specific payment, doesn’t mean you should. Aim for the lowest price home that still fits your needs and desires, not the best home for which you can potentially qualify. Your future self will thank you.

Read more:  How to create a budget that works

Don’t Listen to the Bank

The bank will lie to you.

They will tell you that you can afford more than you really should. “Go ahead; you can qualify for up to 35% of your gross income! Heck, we can even push that to 50% if you join our super special elite checking program!” they’ll say.

[clickToTweet tweet=”Just because the bank says you can afford it, doesn’t mean you really can!” quote=”Just because the bank says you can afford it, doesn’t mean you really can!”]

The problem with this approach, however, is by borrowing up to 35% (or more) of your gross pay (before taxes) you are left with less than half your paycheck to pay all the other bills in your life. The appeal of frugality is not that you are required to live frugally – but that you choose to. Taking out a mortgage that covers more than 50% of your take-home pay leaves you no option but to live cheap – for the next thirty or fifteen years.

Should You Go 15 Years or 30 Years?

Ah, the classic debate. Should your mortgage be for 15 years or 30 years? I wish I could tell you one is the right way, and one is the wrong way – but I can’t; each situation is different. However, I can tell you that a 15-year mortgage might not be as expensive as you think. Typically, a 15-year mortgage will carry a slightly lower interest rate which makes the payment a bit more bearable.

For example, let’s say you find a house you want to buy that will require a $150,000 loan. At 3.75% for 30 years, your payment would be $694.67. That same loan amount, for just 15 years and at a 3.25% rate would be $1090.83 – a difference of just under $400 per month.

Is $400 per month extra worth saving 15 years on your payment? Again – the choice is up to you, but I’ve never heard anyone say “Boy, I’ve been paying on this loan for 15 years and now it’s paid off.  I sure wish I could pay for another 15 years!”

Make Your Home Payment Work With Your Frugal Lifestyle – Not Against

Bills are irritating, and payments are the enemy to your financial freedom. However, for most people – a home loan is a necessity to live in a house that you own. Therefore, it is essential that you take control of your home shopping experience and make it work for you – not the other way around. By doing so, you can save money, live a more free life, and continue living a frugal lifestyle.

Do you have any tips or tricks for purchasing a home? Leave me a message in the comments below!

Brandon Turner is an active real estate investor and the Community Manager at BiggerPockets.com, an online community with vibrant real estate forums. Brandon writes on topics including tenant screening, landlording tips, and how to get started investing.

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The moment your realtor calls to tell you someone made an offer on your home, you’ll want to listen up!  You’ve hired them to help you get top dollar for your house, so let them help you.  They’ve been through countless negotiations and will be able to recognize a fair price for your property.

Receiving your first offer is exciting, but you may not want to jump on it right away. It’s just the beginning of a long process, and it’s possible that other offers will come in.

When you are in a seller’s market, prospective buyers are less likely to make unrealistic, lowball offers. But, if you are selling during a seller’s market, you might hold the cards to get even more than the initial offer.

More helpful home buying and selling tips:

• Do You Need a Realtor When Selling Your Home?
• How to Price Your House for Sale

NEGOTIATING TIPS FOR HOME SELLERS

Price your home fairly

While you may have a price you want to get for your house, that may not be what it worth.  Consult with a realtor or do your homework to find other properties that recently sold in your area and price your house accordingly.

Know your bottom line

All sellers need to know the least amount for which they can sell their house, so they get what they need out of it. Knowing your bottom selling price ensures that you have taken everything into consideration before the buyer makes an offer.

Review the inspection

 Anything that is flagged as a problem during inspection can act in the buyer’s favor. If issues with the roof, flooring, foundation or heating and cooling systems arise, you’ll probably have to accommodate the buyer. However, it’s not usually necessary to lower the price for very minor or aesthetic concerns. Fix what is necessary, but keep your price where it is. Remember, you probably wouldn’t have an offer if they weren’t serious about buying.

Be prepared to compromise on small issues, even if they’re aggravating, if a possible buyer seems serious. Ultimately, what matters is the profit you’ll see from your sale, not getting the best end of every situation.

Don’t be emotional

Your house is a home. It might be the house you grew up in or where you brought your kids home from the hospital. You are emotionally tied to the house.  But, once you list if it for sale, you have to sever those ties. When you get emotional about offers and feedback, you may become defensive and end up getting less than you need from the sale of your property.

Be realistic

You want to get top dollar for your house, but if you aren’t willing to negotiate and take a little less than your asking price, you may end up missing out on a sale entirely.  Weigh the difference in the lower price and how much more it costs you from month to month in mortgage, utilities and other household operating expenses.

Consider the first offer

When you get ready to walk into home negotiations, sometimes, the first offer will be the best one.  It can also tell you quite a bit about how you have priced your home. If extremely low, it might be that it is overpriced.  But, don’t pass on the first offer because you think another, better one may come along.  It may not.

Review the terms carefully

One of the most powerful negotiating tools you have is in the terms.  If the buyer adds contingency and other clauses in the contract, you can sometimes swing a higher price by agreeing to them.  Don’t just toss out all offers, read those terms carefully and make them work to your advantage.

Make a counteroffer

When you get the first offer, you don’t have to accept or deny it right away. Visit with your real estate agent and consider making a counteroffer.  Your first offer is just a starting point but does not mean that is where you will land.  It just gets the home negotiating process started.

The post Negotiating Tips for Home Sellers to Get Top Dollar appeared first on Penny Pinchin' Mom.

It’s not enough anymore to keep the grass mowed and the sink empty when your house is on the market. You have to set the scene, also known as “staging” – when you stage your home for sale.

Staging, or arranging your home with purpose, should allow prospective buyers to imagine living there themselves. They’ll be picturing their furniture and family in place of yours, so help out by minimizing visible items.

The most important part of staging is decluttering. Clear counters, tables and other surfaces of knickknacks. Anything that disturbs the floor plan should be removed. This will create a feeling of openness.

You’ll also want to remove most of the personal touches from your home. Family pictures should come down, as well as any custom décor that won’t be staying behind. If you have bright walls or murals, now is the time to paint over them with a more neutral color. This will help the buyer view the home as a clean slate, not someone else’s long-established domicile.

Once you’ve removed the clutter, it’s time to deep clean the house. Don’t cut corners here, even if you have to hire a cleaning crew. Buyers look everywhere, including inside cabinets and bathtubs, and they won’t be inspired to make an offer after encountering grime. Once your space is clean, try to keep it that way so that you can clear out quickly for showings.

Try thinking of your home as a luxury hotel suite. In the bathroom, display towels and toiletries so that buyers can imagine using the bath or shower. Keep a simple, elegant centerpiece on the dining room table, and a bowl of fresh fruit in the kitchen. You may even want to drape a cozy throw blanket on the couch.

The more touches like this you can incorporate, the closer you are to getting buyers to picture living there comfortably. Your old house might be their dream house, so show it off to them as though it is. Just make sure you have enough bright light in every room to reveal the floor plan and open spaces.

Last but not least: don’t forget to stage the outside. Curb appeal is a huge factor, because you want to build anticipation as soon as buyers arrive. Keep your porch and walkway swept, and add some live plants near the entrance. And it probably goes without saying, but be sure to keep the lawn in good shape.

Check out all of our posts in our home buying and selling series!

For more information on getting ready to buy or sell a home, see http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

The blog and its opinions are expressly those of its author and do not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s mortgage offers are subject to credit approval and terms may vary based on conditions.

The post Tricks to Stage Your Home For Sale appeared first on Penny Pinchin' Mom.

Closing the sale of a home means there are costs for both the buyer and the seller.  In most cases, the buyer paid the closing costs.  However, those fees and taxes are considered part of the negotiating process.  Many times, buyers will ask the sellers to cover these costs when putting in an offer to purchase.

What does it mean to a seller if they will cover closing costs?  It simply means that you will receive a smaller profit from the sale.  This is important to consider when not only pricing the home, but also accepting an offer to purchase.

What are the closing costs that the seller might find they need to cover?  These can include:

Real estate commissions: The seller of the home will most likely cover the cost of the real estate commission.  This figure is around 6% of the purchase price.  On a $200,000 home, the commission alone will be $12,000.  This is usually higher than all of the buyer’s closing costs.

Title insurance: Lenders require insurance to protect the asset (the home) that secures the loan. The title insurance premium will be paid by the seller.  This is done just in case title issues arise.  If a homeowner defaults on a loan with a faulty title, this insurance allows the lender to recoup its money.

Another reason seller’s typically pay for title insurance is because it is designed to protect buyers from defects or liens in the history of the title.

Taxes:  If you are selling one home and purchasing another, you may not have to pay taxes on the home sale proceeds. However, in other cases, your tax bill depends upon how long you have been in the home. If you’ve owned the home for less than a year, you would pay taxes at your regular rate.  However, if you have lived in the home for at least 2 of the past 5 years, you can pocket up to $250,000 tax free ($500,000 for couples filing a joint tax return).

If your profits exceed that amount, then you will be dealing with capital gains.  Long-term gains are taxed depending on your income. Couples making $72,500 or less will pay no capital gains. Those making up to $450,000 will pay 15 percent of their profits, and those earning more pay 20 percent.

Regardless of the situation, sellers should always contact a tax adviser to make sure they are reporting any proceeds correctly.

 Other costs:  There may be other costs incurred by the seller as well.  You may need to pay transfer taxes and recording fees in order to transfer the title.  Seller’s also sometimes cover the homeowners association dues for a period of time.  Finally, it is also very common for sellers to offer to pay for a one-year home warranty.  This can give buyers peace of mine about first-year costs.

You are now ready to walk into closing knowing what to expect and what it will end up costing you.

Check out all of our posts in our home buying and selling series!

 For more information on getting ready to buy or sell a home, see http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

The blog and its opinions are expressly those of its author and do not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s mortgage offers are subject to credit approval and terms may vary based on conditions.

The post Seller’s Closing Costs – What You Need To Know appeared first on Penny Pinchin' Mom.

If you’re trying to sell your home to buy another, you have more to consider than just getting out quickly. Your home’s final sale price will affect your ability to buy your next house. It could also have additional financial repercussions.

You probably still owe money towards your current mortgage. However, as you are preparing to purchase your next home, you are budgeting a higher monthly payment.  This results in one of three situations happening:

1. You still owe on your first loan, but will probably break even. Most people don’t live in a home for the 30 years necessary to pay off a standard mortgage.  However, just because that is the case, it doesn’t mean you won’t break even when you sell your house.If you haven’t kept records of how much you’ve paid down on your mortgage, give your mortgage lender a call. They’ll tell you where what you own on your home.  Make sure that you calculate in the interest, as it will be your “barometer” for what it requires to break even.

2. You actually owe less than what you owe and so will have equity to roll over. If you’ve lived in your house long enough, you might actually owe less than your home is worth.  That leaves you with positive equity.  Once the sale is complete, you will receive any proceeds.  Then, you can apply that amount towards the down payment on your next loan.

3. You owe more than  your home is worth and will take a loss. Sometimes, homeowners find themselves in a situation where the must sell a home they are “under water” in. If you find yourself in this position, you cannot roll the negative equity into your next loan. Lenders don’t allow this.  The reason is because it encourages overspending on properties and positions homeowners for poor outcomes later.Instead, you’ll pay off the remaining amount with savings or borrow money to pay any amount due at closing. Financial advisors urge people to avoid selling homes with negative equity unless their only options are bankruptcy or foreclosure.

It’s vital to ensure all your financial ducks are in a row before putting your house on the market. Before you hang out your for sale sign, do everything you can to position yourself in a positive selling situation. This includes taking into account market conditions, your personal finances and a realistic budget for your next home.

Make sure you read the other articles in our Home Selling Series:

Are You Ready to Sell  Your Home?
Do You Need a Realtor to Sell Your House?
How to Determine Your Selling Price

Check out all of our posts in our home buying and selling series!

For more information on getting ready to buy or sell a home, see http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

The blog and its opinions are expressly that of its author and do not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post How Does Selling Your Home Affect A Future Purchase? appeared first on Penny Pinchin' Mom.

How do you price your house for sale?  How much should you ask for when selling your home? It is a common question.

Think of your home’s listing price as its most powerful marketing tool. If you really need to sell, setting a low price can help your home stand out. That said, you don’t want to go overboard and price too low. The same goes for trying to make money on your home sale. You’ll want to be cautious of letting visions of dollar signs cloud your vision.

When selling in a seller’s market, you can often get your full asking price.  That is because buyers are competing for scarce inventory. However, this means many buyers may instantly cross a home off their list if the asking price is over budget.

Find the sweet spot that prices your house fairly within the market but also ensures you make the maximum profit. It’s better to price in line with similar properties than aim too high and lower your price later.

As is the case with any big financial move, research is key. You’ll need an inventory of houses in your area that have sold and for how much, going back six months. These are referred to as “comps,” or comparable sales. Your realtor can access the MLS system to help you with this task. Look at which properties are the most comparable to yours, and use their final sale price as a guide.

Take stock of what you still owe on your mortgage, or what equity you have in your home. Then, do the math to find out your bare minimum break-even price, and add on from there.

What updates have you made while living in your home? Some updates, like pools, don’t add much to a home’s value at all. Interior design doesn’t boost asking price, either. Upgraded kitchens, bathrooms and flooring typically yield the highest return on investment.

Consider attending open house viewings in your neighborhood if there are a lot of homes on the market. It’s not as fun as looking at homes you might aspire to buy, but it can be an eye-opening experience. You’ll get a sense of how your house compares for buyers looking at move-in ready properties in your price range.

Check out all of our posts in our home buying and selling series!

For more information on getting ready to buy or sell a home, see http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

The blog and its opinions are expressly that of its author and do not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post How To Price Your House For Sale appeared first on Penny Pinchin' Mom.

Simple ways to increase your home’s value – that are affordable. That means more money for you at closing!

If you’re planning to sell your home, you’re likely looking for ways to boost its value. The more money you can make from your home’s sale, the better. However, you may have been hesitant to perform some much-needed upgrades due to the cost.

Fortunately, there are some adjustments you can make to your home that won’t break the bank. Here are some money-saving tips that will bolster your home’s value in no time.

Other Home Selling Tips:

• How to Stage your Home For Sale
• Negotiating Your Selling Price
• More posts about Buying & Selling a Home

1. Break Out the Paint

A quick, inexpensive way to increase the value of your house is to paint. A fresh coat of paint can make rooms look like new. But don’t get too wild when choosing paint colors. Your best bet is to stick to neutral shades because they will appeal to a greater number of potential buyers. However, not just any neutral shade will do.

A Zillow study found that it’s best to steer away from colors such as dark brown and terra cotta when it comes to interior paint colors. If you do choose to use these colors for the interior, your home’s price might sell for $469 (when using dark brown) or $793 less (when using terra cotta) than Zillow’s price estimate. Homebuyers generally don’t care for these colors.

2. Upgrade Appliances

Know that you don’t have to go out and buy all new appliances that match exactly (and if you’re working with a tight budget, this isn’t a great idea, anyway). The experts at Kitchen.com say it’s OK if your appliances don’t perfectly match, as long as they don’t compete.

If you’re up for bucking the norm, white and stainless steel are both neutral colors, so you don’t have to worry about them clashing. What you should keep in mind is that when one appliance doesn’t match the others, it stands out. You can use this to your advantage and create a strong focal point: Designers often do this with the cooking area by choosing a gourmet range or artistic hood with a different style, color or finish.

3. Change Door Knobs

When it’s time to put your home on the market, details matter. One detail that often goes unnoticed is door knobs. You can add a bit of flair by replacing old doorknobs around your home and on kitchen cabinets. The best part is, a simple door knob upgrade doesn’t have to cost a fortune.

Home renovation expert Brittany Cramer said one thing you should keep in mind when updating door knobs is the home’s era. “One of my favorite pieces of advice to give folks is to consider the era of the home before purchasing and installing accessories. You might be a lover of that wrought iron, Tuscan look, but will that style suit your home?” said Cramer.

4. Replace Light Fixtures

Another inexpensive DIY project is to replace home lighting. Updated light fixtures can give any home a lift. The right light fixture can make your home look not only brighter but also modern. In addition, consider replacing outlet switch plates.

[Editor’s note: Chances are if you’re selling a home, you’re also buying one. Check out our tips on how to secure the best mortgage for you.]

More from Credit.com

• What is a Good Credit Score?
• Who Are the Major Credit Reporting Agencies?

This article originally appeared on Credit.com.

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As a mortgage lender, CommunityAmerica mortgage officers frequently work with Realtors.  They assist our members with both buying and selling homes. With so much information available online, many home sellers often wonder if a Realtor is worth it.  After all, they could do it themselves and save the standard 5 percent to 6 percent cut.  However, they have to decide if that is worth it.

We’ve seen success stories on both sides of the FSBO (for sale by owner) question in the Kansas City real estate market. Here are some things to consider before you commit to a FSBO scenario.

Do you have time at your disposal? What people pay a Realtor for isn’t just expertise – it’s legwork. Think back to the to the piles of paperwork, contracts and timelines involved when you purchased your home.  Would you want to have to compile that yourself?

A realtor will assist by packaging the documents need.  They will also assist with reviews and required signatures.  This way, you are not burdened with this hassle during your busy day. Realtors also act as a liaison between entities such as the lender and title company. If time, convenience, accuracy and expertise are worth the percentage, you might be better off with a Realtor.

If you do not wish to use a Realtor, it’s advisable to hire a lawyer to manage the contracts. You’ll need to free yourself up to manage those responsibilities, including making arrangements for showings.

Is your Realtor willing to entertain an adjustment? When Realtors are assisting with both selling and buying processes, they will often consider a lower commission percentage. It’s always a good idea simply to ask, ideally when you are interviewing someone to help you with selling your home. A lower commission will get you more for your investment and may make a Realtor worth it in the end.

One of the biggest benefits to using a Realtor is access to the MLS system. Although sites like Zillow allow you to see homes for sale, they are often not updated in real time.  This can hinder your ability to react in a hot market.

MLS is real time and only accessible to licensed Realtors. Sites such as HelpUSell and ZipRealty charge a flat listing fee. This is more affordable than Realtor commissions, but the rest of the process is up to you (if you choose that route).

The choice of using a Realtor or not is completely up to you.  Just keep in mind what you may be sacrificing (or have to do yourself) if you opt to go it alone.

Check out all of our posts in our home buying and selling series!

For more advice on getting ready to buy or sell a home, see http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages

The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post Do You Really Need A Realtor When Selling Your Home? appeared first on Penny Pinchin' Mom.

Timing is everything when it comes to buying a home, and selling is no different. Successful sellers use the market’s inventory conditions to their advantage.  They also don’t sell until their personal finances are in the right place, either.

ARE YOU READY TO SELL?

The first thing you need to consider is the real estate market. It’s still booming, with a tight inventory of homes for sale. This means it’s a great time to sell a home. They’re going quickly, with many going at asking price. In a more stagnant market, you’re often better off waiting to sell until winter. During this time of the year, there are presumably fewer options for buyers to choose from.

You should also make sure your financials are ready. Do some research on what homes around you have been selling for so that you know what to realistically expect. Evaluate how much equity you have in your home. If you haven’t lived in your house very long, it might be difficult to make a profit to justify the hassle.  The same may be true if you have recently refinanced your mortgage.  Make sure it is worth it before you jump into listing.

You’ll also want to set a budget for the next house you want to live in and crunch the numbers You need to know if you’re being realistic about what you can afford, if your home doesn’t attract asking price offers. The sale of your current house will have a huge impact on any real estate purchases and your overall financial future.

Another question to ask yourself: Are you ready to fork out for needed updates? Some changes that you can make will greatly increase your chances of selling your house quickly and close to asking price.  However, some properties, especially older ones, may need up to $5,000 in simple updates before entering the market. This is especially true for owners who haven’t done regular upgrades.

We’ll get into what upgrades and improvements you might consider in a later post.  Homeowners should take a harsh look at the condition of their house through the viewpoint of a picky buyer. If you want to move because your kitchen is outdated, you might be better off sprucing up what you have now.

Check out all of our posts in our home buying and selling series!

For more advice on getting ready to buy or sell a home, see http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages

The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post How To Determine If You Are Ready To Sell Your Home appeared first on Penny Pinchin' Mom.

You are just about ready to take possession of your new home.  You’ve survived the budgeting, offering, negations and inspection.  When you get to closing, you will be signing a dizzying amount of paperwork.  That means you will want to go into the meeting informed and ready.

You will typically meet with your realtor and a title company representative.  He or she will finalize and transfer the home into your name.

At least three days before this, you will be given a final dollar amount to bring to closing.  You will need to provide the funds in the form or one (or more) cashiers check.  This covers the first year of your homeowner’s insurance and any closing costs. It will also pay for your escrow premium and any down payment.   Make sure you do not forget to also bring along proper identification.

It’s a good idea to review some of the initial paperwork before your closing meeting.  This should include your appraisal and inspection reports.  Make sure you also look over your homeowners and mortgage insurance agreements.  Now will be the time to ask for a final walk- through of the home.  Make sure that all repairs and other issues were properly addressed.

Remember all those papers you signed a while back with all of the disclosures and figures? Well, now you get to sign them again. Your representative at the title company should walk you through each document.  He or she will explain the purpose of each form, prior to you signing them.

Your loan paperwork will have been through a thorough underwriting process.  If there are any changes, you will be notified prior to signing them.  ,Usually, any changes are very minor. There should be no surprises at a closing, so don’t be afraid to ask questions if you need clarification.

When all is said and done, a new deed listing you as the property owner will be filed with the county of residence. If anything goes wrong, rely on your lender.  He or she will be your advocate in fixing any issues.

Most closings go smoothly and you will walk away with the keys to your new home.

Check out all of our posts in our home buying and selling series!

For more tips on maintaining your home, see http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post Buying Your Home: What To Expect At Home Closing appeared first on Penny Pinchin' Mom.

One term you will hear when you are getting ready for your closing is regarding an escrow account.  An escrow account is an account that holds payments to be paid at later date.  They will include up to two month’s of mortgage payments, property taxes and home owner’s insurance.

The escrow account exists to protect the lender against any negligence on the part of the buyer. Escrow companies function as neutral third parties.  They simply collect funds and documents involved in the closing process.  These include everything from your earnest money to the signed deed.

If you put less than 20% down on your home your lender may require an escrow account.  If you are purchasing under an FHA loan or a VA loan, an escrow account will be required.

\When a mortgage loan is used to purchase a house, the house itself serves as collateral to secure the lender’s interest. The lender wants to ensure that no other liens are placed on the property.  They also want to make sure that the home is insured, in the case of an accident or damage.

If you do not pay your property taxes, it can result in a tax lien or tax foreclosure. A home damaged in a fire or natural disaster might be too expensive to repair without insurance. These situations are not favorable to the lender, so the escrow account ensures that they don’t wind up with a loss.

A deed naming you as the homeowner will be prepared and filed after closing.  When you pay your down payment and closing costs, your lender will send some of this amount to escrow.

Once the escrow account is established, each month you will pay the lender an additional amount on top of the mortgage payment. The additional amount is placed into your escrow account until property taxes or insurance premiums are due. Your lender will pay the bills directly on your behalf out of the escrow account.

The monthly escrow payment is calculated by the lender each year. They analyze property tax rates and the cost of insurance, divide that total by 12 and determine your monthly obligation. This also covers incremental changes in property taxes.

As your insurance and taxes increase, so will the amount you need to pay into escrow.  Once your home is paid in full, you will then close the account and be responsible for paying your taxes and insurance yourself.

Check out all of our posts in our home buying and selling series!

For more ideas on budgeting, click http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages

 The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post Escrow Accounts Explained appeared first on Penny Pinchin' Mom.

Congratulations! You’ve made an offer on a home that’s been accepted. Now, it’s time for more paperwork. Luckily, you completed most of the process on your end when you filled out the pre-qualification papers.

After the seller’s acceptance, your loan officer will require a fully signed contract from your realtor as well as “disclosure documents,” which include all lending disclosures.

Be aware that this first batch of paperwork is just an estimate. Final insurance, title, tax and other figures come from third parties. Once these are all signed and sent to your loan officer, an appraisal is ordered. This is the point at which your loan moves to processing (don’t get too excited, you’ll have to sign all final papers again at closing). A mortgage processor will also examine the home’s title for any legal issues.

The appraisal becomes a critical factor here. If it comes in too low, some buyers will renegotiate their first offer. It’s not over until the post-appraisal offer is final and accepted.

During loan processing, try to be patient. The process can take a few weeks while lenders gather all final figures and fees for closing. If you’ve selected a trustworthy lender, you’ll get periodic updates.

Once the loan is processed, an underwriter will take a final look and make any necessary edits to the paperwork. Part of this process may be computerized depending on your lender, but a human underwriter acts as the final set of eyes on your qualifications. The underwriter has final authority over the approval of your loan.

If any of your paperwork, like pay stubs or bank statements, is more than 90 days old, you could be required to submit updated forms. This is not the time to be moving money around between accounts, making big deposits, increasing credit lines, taking out other new loans, etc. You will have to explain the bank activity in writing and it could cause significant delay.

At this point, you’re almost ready to close. Keep your favorite pen handy.

Check out all of our posts in our home buying and selling series!

For more advice on getting ready for your home buy, see http://twitter.com/savinmavens or visit  https://www.communityamerica.com/mortgages

The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post Understanding The Home Loan Process appeared first on Penny Pinchin' Mom.

A home inspection is not required to get a loan.  However, it is encouraged by your realtor.  That’s because buying a house without having it inspected is like buying a used car without checking under the hood. (That goes for new construction, too.)

A good inspection will set you back around $500.  However, if done properly, it can end up paying for itself later.

In most cases, a home inspection will find a few necessary repairs.  As the buyer, you can ask the homeowners to have those issues fixed as part of negotiations.  That is money right back in your pocket.

When looking for an inspector, you can ask your realtor.  You might also consult with friends and family.  The inspector should be someone with experience — ideally with homes in the neighborhood. For example, if the surrounding homes were constructed with aluminum wiring in the 1960s, the house you want to by probably was as well.

Attend the inspection if you can.  Don’t be afraid to ask questions. A good inspector will be able to answer every question.  He or she might also provide advice on long-term home maintenance. Do some research on the immediate area so that you’ll know whether it has a history of flooding during heavy rains, if termites are common, and so on. A thorough home inspection should include:

• A room-by-room review.
• Exterior home components (especially the roof, gutters and windows).
• Electrical systems (wiring, outlets, fixtures).
• Foundation and structural components (interior and exterior).
• Heating and air conditioning, including duct system.
• Plumbing systems (all toilets, drains, sinks, septic tank, etc.).
• A radon detection test.
• Attic and basement or crawl space.

If the home is older, you may need to look into hiring an HVAC specialist, plumber or electrician.  Have them do a more thorough review of the home.

A home inspection costs you money now, but it can truly save you money down the road.

Check out all of our posts in our home buying and selling series!

For more ideas on budgeting, click http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

 The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post Home Inspection: Is It Worth The Cost? appeared first on Penny Pinchin' Mom.

Before you manke an offer on a house, make sure you fully understand what will happen.

You’ve been looking at homes for a while now.  You know the type of home you want and the areas you wish to live.  Now is the time to get serious.  You need to have your ducks in a row.

This is the point in the game where some buyers begin to reconsider their original budget. Perhaps you haven’t found that dream property for the amount you were hoping for. However, if you could just add another $10,000 to $15,000 to the budget, you could find that home. That might sound great, but will it work?

Before you decide to increase your budget, make sure you speak with your lender.  He or she will make sure that your qualification amount will cover your new budget.  You will also want to make sure you know how an increase in your budget will affect your monthly payment.  It may end up shifting the mortgage insurance and tax amounts enough that it won’t be feasible.

You can keep touring homes slightly above your budget if they’ve been on the market for a while. Hopefully, a worn-down seller might be willing to accept a lower offer.  Remember, though, that in this market, many homes are receiving offers at full list value.

All negotiations between buyer and seller must be completed before a final contract is prepared. It’s common to ask the sellers to cover closing costs and a one-year warranty. This is the time to ask for issues that popped up during inspection to be addressed.   If you are not sure what to include in the contract, make sure you ask your realtor.  He or she will advise you about what is appropriate, based upon the severity of the problems.

The deal isn’t complete until a contract is signed by both parties, but there’s one more step for buyers: providing “earnest money.  Depositing earnest money shows that you’re a committed buyer. Typically, the amount is between $500 and $1,000. Without earnest money, buyers could place a “hold” on several properties and skew the market.

If your offer is accepted, your earnest money will be applied to your down payment. If you find something wrong with the property later, you can usually get most of your deposit back. Double-check the purchase agreement to see how this situation would be handled.

Check out all of our posts in our home buying and selling series!

For more advice on getting ready for your home buy, see http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post What To Know When Making an Offer on a House appeared first on Penny Pinchin' Mom.

Private mortgage insurance (PMI) is required when homebuyers put down less than 20 percent of the purchase price. It is insurance for the lender, not the buyer. PMI is designed to help them recover costs if buyers default and the bank has to foreclose on the house at a loss.

Don’t confuse PMI with homeowners insurance, which is also required by lenders. Homeowner’s insurance covers damage or destruction. PMI has no benefits for buyers – except allowing them to buy a house while putting less money down.

You may not be required to pay PMI monthly if you have a USDA or Veterans Affairs loan.  Keep in mind that these loans come with a funding fee that can be as low as 2.15 percent or as high as 3.3 percent.  The amount depends upon your qualifications. FHA loans typically have a 1.75 funding fee as well as PMI costs.

For most loans, PMI costs fall between .25 percent and 2 percent of your balance per year. The more you borrow, the more you’ll pay.

To avoid monthly PMI, look into paying a lump sum single premium up front for the PMI. You can forgo PMI altogether by taking out an 80/10/10 loan.  In this type of loan, you borrow 80% on a first mortgage, 10% on a second and put 10% down. An 80/15/5 loan works better for buyers with smaller down payments. These options are typically only available through lenders that offer first and second lien positions, so be sure to ask your lender if this is something they can provide.

To figure out the best option for your home buy, rely on your lender.  He or she will  help you figure out how to “break even” with PMI and still have a workable monthly payment. Most lenders will come to the table with multiple options.

If you end up paying PMI, keep an eye on your statements. Typically, once you’ve paid off 20 percent of your mortgage, you can request to have your PMI canceled.

Check out all of our posts in our home buying and selling series!

For more ideas on budgeting, click http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

 The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post How to Avoid Private Mortgage Insurance appeared first on Penny Pinchin' Mom.

Do you need to work with a realtor? The answer is almost always yes.

Sellers may not like the realtor’s cut on their home sale.  However, a realtor can truly help a buyer.

Buyers, especially first-timers, should have an agent representing them at every point of the purchase. An agent will assist you in assessing the value of the property.  They will also be there through negotiating and setting the terms of your offer. Even if you’re considering a For Sale by Owner deal, having a realtor on your side is necessary.

Some buyers have luck with their own negotiations and home purchase.  However, the truth is that the average American is not properly educated in this area.  They need additional expertise to guide them through their home purchase.

Realtors can help you find the home of your dreams.  They are experts in helping you find the right school district and neighborhood.  A good realtor will also take into consideration  your lifestyle and your budget.

Another reason to hire a Realtor is that they can also uncover the history of a home you love.  They will also review properties nearby to make sure that the house is not overpriced, or suspiciously underpriced.

The value of a Realtor is often most apparent when it comes to potentially challenging situations which may come up after the offer is made.   There are many situations where buyers benefit tremendously by having an expert in their corner – and they’re not the kind of situations buyers can predict.

For example, realtors are used to handling unexpected seller delays.  They are also well versed in responding to tough appraisal outcomes and negotiating repairs after appraisals.  A Realtor understands the ins and outs of seller price ask vs. true value.  He or she also can be an assets when it comes to negotiation tactics and contract documentation. If you are looking in a competitive area, you don’t want to navigate a bidding war in a hot market without help.

Just as when choosing a lender, do your research. Don’t go with a realtor or company you’ve never heard of. Talk to your contacts, get referrals and choose a well-known and respected professional to assist you.

Check out all of our posts in our home buying and selling series!

For more ideas on budgeting, click http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

 The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post Do You Really Need a Realtor When Buying a House? appeared first on Penny Pinchin' Mom.

Interest rates should never be the deciding factor in whether you buy a home, but they certainly catch your attention when notable fluctuations occur.

No industry has benefited more from the current low rates than the housing market, which was devastated by the recession. But because rate increases are gradual, you should never rush into a home purchase just because you’ve heard rates might go up.

Lenders have been predicting a rise in mortgage interest rates for years. Though we’ve yet to see this jump in rates, the looming concern about a drastic change has been strong enough that buyers and sellers are committed to the market this year, and properties are moving quickly.

If you hear the Federal Reserve is going to raise interest rates, don’t panic. Those numbers don’t translate directly to mortgage rate hikes, which are based on 10-year Treasury note yields that don’t rise as steeply.

Regarding affordability, your top consideration should still be timing. You shouldn’t be in the market unless it makes the most financial sense for your family. A good rate can’t make up for waiting until your credit is in a good place, your down payment is saved and you are prepared for a transition.

That said, if those pieces are in place, it makes sense to buy a home when rates are kind to borrowers, and now may be the time to make a move. (Some remember the days of 12 percent rates on mortgages.) Your mortgage rate does affect your monthly payment and total payoff amount.

For example, on a standard 30-year fixed-rate mortgage, the monthly payment on a $200,000 loan would be $955 for a 4 percent mortgage, as opposed to $1,074 for a 5 percent mortgage. But mortgage rates don’t rise by entire percentage points at a time, so fluctuations usually end up affecting monthly payments by no more than $20.

The best thing you can do is follow the news and educate yourself on market changes, as well as do all you can to prepare for your purchase.

Also be wary, as marketers will send a slew of information with an “act now!” hook. Don’t let temptation or a false sense of urgency get the better of you. Buying and owning real estate is a long game, and rash decisions could land you in the wrong home.

Check out all of our posts in our home buying and selling series!

For more advice on getting ready for your home buy, see http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post Home Buy Tip: Don’t Let Interest Rates Be The Deciding Factor appeared first on Penny Pinchin' Mom.

Paperwork isn’t exactly the fun part of buying a house, but when it’s time to apply for a mortgage, you have to gather a lot of it.

Buying a home is an exciting time.  However, before you head out to visit with a lender, you want to make sure you are ready.

Here is a list of what you’ll need when applying for a mortgage:

• Two forms of government identification (for each applicant).
• The past two years’ tax returns, W2s and pay stubs. If you are self-employed, you need to provide proof of income, so you’ll need a year-to-date profit and loss statement.
• Documentation, including account numbers, on all checking and savings accounts. Ask your financial institution for six months of statements on all accounts.
• If you’ve been renting from a landlord, put together a year’s worth of check copies or receipts to prove that you’ve been paying on time each month. You can also ask your landlord to write you a letter of referral.
• Documentation of all forms of regular income, such as child support, government assistance and Social Security.
• Proof of account balances for retirement accounts like your 401(k) or IRAs.
• Documentation of all stock market investments.
• Proof of ownership of any other property.
• Other pertinent personal paperwork, such as divorce papers. If you have rental income, bring the lease.
• If you’ve declared bankruptcy in the past, be prepared to disclose that information and explain in a letter what the circumstances were and how you’ve worked to resolve the situation. Be prepared to provide a copy of the discharge documents.

Make sure that you also have your down payment and closing funds deposited in the bank.  This is alto the time to commit to your down payment and where it will come from.  For example, some people may think they can just deposit a check from their parents.  However, that requires more paperwork and has tax implications that should be taken into account.

Your finances will be under a microscope, so unexplained deposits will raise red flags. If you have generous family members who are chipping in, they will have to sign “gift letters” declaring that the money was not intended to be a loan. Some lenders require these letters to be notarized, and the whole situation can really slow down your loan process.

Being ready before you sit down to make your application will make the process go much more smoothly for you.

Check out all of our posts in our home buying and selling series!

For more information: http://twitter.com/savinmavens or visit http://communityamerica.com.

The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post Items You Need To Apply For a Mortgage appeared first on Penny Pinchin' Mom.

What do you look for in a mortgage lender?  It can be overwhelming at best.

When it’s time to pick a mortgage lender, you might feel overwhelmed by all the options. The first person you reach at any institution is a salesperson.  They can make it sound as if they have the best deal.  But is it a fit for you?

Don’t randomly select a lender.  Ask your friends and family for recommendations.  They will share the company they used for their mortgage.  To get more help, ask a financial advisor or your realtor for a list of referrals.  Realtors, in particular, usually have a lender they like to work with.  You can often benefit from that established relationship.  However, keep you in mind that you are not obligated to use their choice.

One thing many people may not realize is that the majority of financial institutions sell their mortgage loans in a portfolio.  That means your main concern should be the party who is servicing your loan. This is the person handling your file, collecting your documentation and answering your questions.  If this is work is outsourced, it can add a layer of hassle and make it more difficult to have a simple, seamless experience.

All potential borrowers should take detailed notes when interviewing prospective lenders.  All lenders should be able to email you important documents upon completion of a full loan application.

Once you have visited with a few potential lenders, review your notes.  You need to also review the fine print.  Don’t base your decision solely on the interest rate offered. Take a close look at the fees.  This is where you will most often find the hidden costs.

Some of the questions you should ask yourself include:

• How comfortable do you feel with this lender?
• Are you confident that they have your best interest in mind?
• What is their response rate?
• Do they welcome questions?
• Are they able to clearly answer your questions to you understand?

If the answer to any of these questions is no, keep looking. With so many mortgage lenders in the market, be discerning. You have options.

Check out all of our posts in our home buying and selling series!

The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post What To Look For In Your Mortgage Lender appeared first on Penny Pinchin' Mom.

Keeping your financial house in order after you’ve initially applied for a loan, but before you’ve closed, will keep the process running smoothly and prevent delays.

Many people don’t realize that credit, income and assets are often reverified right before your loan closing. For that reason, certain activities may affect your mortgage transaction. Keep all your credit accounts current, such as mortgages, car payments and credit cards. Always make payments on or before the due date, even if the account is being paid off with your new mortgage. And keep copies of paycheck stubs, bank statements and records of bills paid.

If possible, avoid these pitfalls that can change your current credit status.

• Changing employment status, unless your new job is in the same line of work and with equal or higher pay.
• Applying for credit or authorizing anyone to make an inquiry on your credit report.
• Changing bank accounts or transferring money between existing accounts.
• Making significant bank deposits that are not attached to your pay.
• Co-signing on a loan.
• Taking on any additional debt by purchasing an automobile or other real estate, or by starting a home improvement project.
• Charging a large amount on existing credit cards. Avoid the temptation to go out and buy new furnishings before you’ve closed on your new home!

Any of these could affect your ability to qualify for a new mortgage. It is important that you call your lender in advance if you think you need to make a change to your credit status, so you can discuss how it will affect the process.  

Check out all of our posts in our home buying and selling series!

For more ideas on how to keep your credit in shape, click http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post Moves to Make (And Avoid) When Taking Out a Mortgage appeared first on Penny Pinchin' Mom.

The most common type of mortgage is a 30-year, fixed-rate loan. It offers a lower required monthly payment, but you can pay more each month to speed up your payoff date without being penalized.

Adjustable-rate mortgages are an option for some first-time buyers, because they allow you to start with a lower rate and build up equity over time. Of course, you’ll have to account for higher payments later in the life of the loan.

When choosing a rate, you have the option to pay “points” to get a lower rate (points are added to the loan’s closing costs). For example, with a 4 percent rate, you might be able to pay points in the amount of $1,250 to get a rate of 3.875 percent. You would need to determine whether the additional closing costs are worth the lower interest rate and monthly payment – and how long it will take to recoup that additional out-of-pocket expense.

Another option is to take a slightly higher interest rate and get a lender credit to help pay for some of your closing costs. In this scenario, with a rate of 4 percent, you could take a rate of 4.125 percent and get a lender credit of $1,250.

Almost all home loans are sold to Fannie Mae or Freddie Mac, the federal entities created to stabilize the mortgage market. Instead of asking, “Are you going to sell my loan?” ask your lender or mortgage broker, “Do you service your loans?”

The answer will tell you which company you’ll be dealing with once the deal is done. Rather than being able to call your original lender with questions, you could be directed to another servicing company, and levels of service can vary greatly.

Check out all of our posts in our home buying and selling series!

For more saving tips to position your family for a successful home buy, click http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

The blog and its opinions are expressly those of its author and do not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post What Kind Of Mortgage Interest Rate Should You Get? appeared first on Penny Pinchin' Mom.

You might be tempted to pour all your available cash into a down payment on your house. After all, the more you can put down, the lower your monthly payment will be. Sometimes, a bigger down payment will get you a lower interest rate. But hold off before you make that final calculation.

Traditional wisdom would say you need a 20 percent down payment, but that number is unrealistic for most first-timers, many of whom have outstanding student loans or other debt. Buyers who come to the table with less than 20 percent of the purchase price will most likely have to pay private mortgage insurance, known as PMI, to protect the lender from possible default. The more you can put down, the less you have to pay in PMI. (PMI will be covered in depth in an upcoming post.)

Getting as close as possible to 20 percent isn’t necessarily a good idea, though. Homeowners need to maintain a cash cushion to cover emergencies (at least $1,000) and long-term house maintenance. And if you wait to save for a bigger down payment, interest rates could rise, boosting your monthly payment.

Many people buy homes after putting down about 5 percent, and different loan types can move that number around to your advantage. For example, if you qualify for a mortgage insured by the Federal Housing Administration, you might be able to put down as little as 3.5 percent. Federal programs for veterans allow for no down payment, as do some loans offered through the U.S. Department of Agriculture. Talk to your lender about what makes the most sense for you.

And don’t forget: The money you’ve saved for your down payment might also shrink when you calculate out-of-pocket closing costs and escrow expenses. It’s important to have a realistic household budget before you settle on a home budget, no matter how much you have sitting in the bank. As a prospective buyer, spend the time to research scenarios and figure out how you’ll come out ahead given your specific circumstances.

Check out all of our posts in our home buying and selling series!

For more ideas on how to keep cash on hand for those closing costs, click http://twitter.com/savinmavens or visit https://www.communityamerica.com/mortgages.

 The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post How Much Down Payment Should You Make On Your Home? appeared first on Penny Pinchin' Mom.

How much house can you actually afford? The answer’s not so simple.

It’s tempting to just plug your income into one of the many online mortgage calculators, but you won’t get the complete picture. Instead, you’ll get an estimate based on 45 percent of your gross income as a maximum.

Using that number as a guide can lead to unrealistic expectations or, even worse, buying a house you can’t pay for. Don’t fall in love with a house or neighborhood before you know what you can really afford.

Online mortgage calculators, like your credit report and score, don’t take into account monthly expenses like utilities, HOA dues, etc. Not to mention groceries, day care … the list goes on. Those expenses that are unique to you and your family have to be taken into consideration in a detailed budget. Leave yourself realistic leeway for things like leisure spending and emergencies. If you commit yourself to a mortgage payment that’s too high, you could end up putting unplanned expenses on credit cards.

Don’t forget that homes come with their own costs beyond the monthly mortgage. Things like increased power bills, property taxes and homeowners association fees can really add up.

Once you’ve done your homework and taken all these contingencies into account, ask yourself, “What is the most I’m comfortable spending each month?” Then you can finally use a handy mortgage calculator to figure out your price range. Make sure you’re using a tool sponsored by a financial institution before you hit “Calculate.”

Check out all of our posts in our home buying and selling series!

For ideas on how to save for that down payment, click http://twitter.com/savinmavens or visit http://communityamerica.com.

Author: Brian Luger, Director of Mortgage Lending for CommunityAmerica Credit Union. The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.

The post How Much Home Can You Afford? What You Really Need To Know! appeared first on Penny Pinchin' Mom.

What is the first thing you do when you want to buy a house? Nope. Not call a realtor.

You want to buy a home.  That is great!  But, before you jump in and start your home hunt, you need to do be ready.  The first thing you need to do is be ready to apply for a mortage.

One thing which has a huge affect on your rate, is your credit score and report. If you don’t know what’s on your credit report, you could be in for some nasty surprises when it’s time to sit down with a lender.

There’s only one free government-sponsored resource for credit reports: AnnualCreditReport.com. It’s a great place to get a report once a year. Make sure you pull reports from all three credit-reporting agencies (TransUnion, Equifax and Experian).

A 2012 study found that 1 in 5 Americans have an error on their credit report. If something appears incorrect on your report, think twice before clicking “Dispute.” Why? Because just clicking that link can affect your score.

Do your homework first. An error could be showing up on just one agency’s report but not the others.  It is usually best to handle disputes directly with the reporting agency.

When you get your full credit report, you still won’t be able to see your credit score. Your lender can pull your score, but won’t have access to the details of your report.  If your report is not where you want it to be, consult your favorite financial institution for help.  A mortgage lender is not a financial counselor and won’t be able to help you.

Check out all of our posts in our home buying and selling series!

For more budgeting tips, click http://twitter.com/savinmavens or visit http://communityamerica.com.

Author: Brian Luger, Director of Mortgage Lending for CommunityAmerica Credit Union. The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions. 

You have the right to a free credit report from AnnualCreditReport.com or (877) 322–8228, the ONLY authorized source under federal law.

The post Before You Apply For A Mortgage – Check THIS First! appeared first on Penny Pinchin' Mom.

Should you refinance your mortgage? Learn if now is the right time or not.

When you are in debt, you want to work hard to do what you can to pay those debts down sooner.  So, does it make sense to increase your monthly mortgage payment just to get out of debt sooner?

Most people have a 30 year mortgage.  You might have opted for this repayment method as it was the easiest.  It could also have been because that was the lowest payment.  It could even be because you didn’t know you could pay it off sooner.   You might currently have a rate that you consider to be pretty good – it might be between 5 – 6%.  Rates have been decreasing again lately.

Read More:

• How To Avoid Private Mortgage Insurance
• What Kind of Mortgage Interest Rate Should You Get?
• What To Look for in a Mortgage Lender

In fact, you might find them hovering around 3% through many lenders.  That means it might be the PERFECT time for you to refinance your mortgage to a 15 year note instead.

Yes, you may pay a little more each month for your 15 year mortgage, however, the overall savings over the life of the loan is dramatic.  Check out this example of what you would have paid to have a 30 year fixed mortgage a few years ago vs. opting for a 15 year fixed loan today.  The savings really speaks for itself:

My husband and I were always 30 year mortgage home owners.  We thought a 15 year was not wise for us, based upon our financial situation.  We have learned that we had to change the way we also looked at our mortgage payment.  It was more than just what we had to send to the bank each month.  What became more important was the total amount we would have to repay.

A few years ago, we refinanced our own mortgage.  And, we, like so many, opted for a 15 year re-payment schedule.  Our payment increased by just $100 a month – that was it!!  The bigger issue was the amount we will put into our pockets.  Over the course of the life of the loan, we will end up saving more than $100,000 in interest!  As an added bonus, we will be out from under our mortgage by the time our children finish high school.

There is actually even more to consider regarding home ownership since the economy declined.  Gone are the days of no-money down loans.  Now, most lending institutions require a 10-15% cash down payment.

Also gone are the days when we can go ahead and purchase a home worth what the bank says they will loan to us.  Instead, we are all forced to take ownership of our own budget and financial well being.   No longer is the status quo that we all can own a home worth 3x our annual income.  Instead, less is more is the new mantra.

When you get ready to refinance, you need to also ask yourself a few other questions:

1. Do you have an equity in your home?

If you don’t have at least 20%, then you will still have to pay Private Mortgage Insurance on top of your monthly payment.  Of course, that doesn’t mean you can’t or should not refinance.  There are programs out there which can help.  Just talk to your lender so you know ahead of time if you will have to pay this additional monthly premium.

2. What are your financial goals?

Are you able to save for retirement and/or college?  Do you have additional disposable income each month that you can use towards this financial obligation without sacrificing others?  Do you have a fully funded emergency fund?  Just know what your own goals are before you jump into a refinance.

Read More: Why You Must Set Financial Goals

3. How long do you plan to live in the home?

If you know that this is not your dream home and you hope to purchase a new one in a few years, it may not be wise to refinance.  However, if this is your “forever home”, it is smart.  Before you decide, make sure you know your “break even point” — the time when your savings outweighs your costs.  Your lender can help you with this calculation.  A good rule of thumb is if you plan on staying in the home for at least 3 or more years, it could be smart to refinance.

4. Will the savings be worth it?

There are definitely costs associated with a refinance including an appraisal, origination and other fees.  Make sure you take these into consideration as you may want to pay them up front rather than roll them into the mortgage – which can affect your payment.

Do the math to determine how long it will take for you to begin showing savings (after taking these fees into consideration).  Your mortgage lender can help you with these calculations.  It can also be helpful to use an online mortgage calculator.  MSN Money has a great one you can use.  You just plug in the figures and it will tell you if it is wise to go ahead and contact a lender or not.

5. Is the rate decrease enough to take the time to do it?

A good rule of thumb is if you can reduce your rate by 1 1/2% or more, then it might be wise to consider refinancing.  Anything lower than that — and you might want to just pass.  Keep in mind those closing costs as that can affect your break even point — the time when paying to refinance moves from additional costs to savings.

Whatever you decide to do, make sure you work with a reputable Mortgage company.  If you can’t get the answers to all of your questions, you might want to consider using someone else.  A good lender will take the time to work though everything with you and make sure you feel comfortable with everything before you sign on the dotted line.

A refinance is not an option for everyone, but it might be something you want to consider while the rates are still as good as they are.

(I am not a financial advisor and the information listed within this post is not to be construed a financial advice. Financial concerns/issues should be addressed with a professional in order to receive advice and assistance.)

The post How to Determine If You Should Refinance Your Mortgage appeared first on Penny Pinchin' Mom.