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14 Daily Habits that Will Make You Smarter

Getting smarter isn't something that happens overnight. Instead, you have to build your intelligence every day through intentional daily habits.

In a recent thread "What would you do to be a little smarter every single day?" readers shared their advice on good habits you can establish. Here are some simple actions that could help you.

1. Read the newspaper. It will help you become more aware of the important things happening around the world. You'll learn to form your own opinions and connect the dots between seemingly unrelated things. You'll also have a lot more to talk about at parties or with friends. — Manas J Saloi

2. Play devil's advocate. Take something you recently learned and generate a unique opinion on it that wouldn't immediately come to mind. Try to support it with evidence, and be open to the idea that new evidence will change your opinion. Repeat this every day, and you'll become much better at thinking independently and outside the box.

If you're feeling stuck, try reading and critically evaluating the editorial section of papers. They will help you understand how other people form arguments and express their opinions. — Peter DePaulo

3. Read a chapter in a fiction or non-fiction book. Aim to read a book a week. You can always find pockets of time to read, whether on your daily commute or while you're waiting in line. Goodreads is a great way to keep track of everything you read and to also find a community of other readers.

Fiction books are great for understanding characters and getting absorbed into another perspective, while non-fiction books are great for introducing you to new topics, from politics to psychology. — Claudia Azula Altucher

4. Instead of watching TV, watch educational videos. Sometimes, it's more fun to watch things about a subject you love than to read about it, and you can learn a lot from other people's experiences.

You can find fun, educational videos. You can also find good ones on Youtube's channel SmarterEveryDay. In videos, the information is often presented in a digestible, memorable way, so you can be assured it'll stick. — Hendrik Sleeckx

5. Check in with your favorite knowledge sources. Every day, scroll through specialty blogs or any other sources that satiate your hunger for knowledge. This is an extremely easy habit because other users are curating the content for you, so all you have to do is follow the ones who write about topics interesting to you. Try using Pocket to save articles for later reading, and then try to get through them before going to sleep at night. — Manas J Saloi

6. Share what you learn with other people. If you find someone to debate and analyze ideas with, you can add to each other's knowledge and gain new perspectives. Also, when you can explain ideas to someone else, it means you've definitely mastered the concept. You can even share what you learn without directly talking to someone. Many people like to start blogs so they can engage others in online dialogue. — Mike Xie

7. Stimulate your mind. Going on a daily run or vigorous walk is a great way to get your brain flowing and to keep your mental health in shape. It's also a great way to think through difficult decisions or process new information. — Rick Bruno

8. Take online courses. Make sure you don't overload yourself; commit to one or two and truly focus on them. The syllabi will also keep you on track, so you know you will be doing something every day, whether it's listening to a lecture or working on an assignment. — Manas J Saloi

9. Talk to someone you find interesting. Even if they're strangers, don't be afraid to approach them. Ask about their interests and how they discovered them. You will often learn the most from people you barely know. — Manas J Saloi

10. Hang out with people who are smarter than you. Spend as much time as you can with them. Every day, you should strive to have a coffee date or walk with someone who inspires you.

Always be humble and willing to learn. Ask as many questions as possible. If you are often around people who are more knowledgeable than you, you'll have no choice but to learn more. — Manas J Saloi

11. Follow your questions. If you see or hear about something cool, don't just let the moment pass. Follow up; pursue your curiosity and find the answer to your question. — Mike Xie

12. Use a word-of-the-day app. You will increase your vocabulary, which can help you in competitive tests like the SAT or GRE, or even just sound more eloquent in daily interactions. -- Manas J Saloi

13. Explore new areas. If you can't travel every day at least try to find something new in your hometown. You'll meet different people, learn new facts, and understand something new about the world. It's a lot more productive than staying at home and watching TV. — Manas J Saloi

14. Play "smart" games. Some games, like chess and Scrabble, expand your mind. Challenge yourself when you play them. For example, play Scrabble without a dictionary. You can also solve puzzles via games like Sudoku, 2048, and Doors. — Saurabh Shah

By: Maggie Zhang

5 Questions Every Buyer Should Be Ready to Answer

It’s important to always be crystal clear on the direction you are wanting to take and your preferences. Know where you stand and share this with us when you call on us as your agents so that we are all on the same page!

Here are 5 questions you should be ready to answer:

1. Why are you buying and why is now the right time to move? When do you want/need to be in your new home?

KNOWING WHY YOU are buying a new home at this specific time is very helpful in tailoring our real estate services to fit YOUR needs. For instance, you may have a home to sell. We can help you with that, of course. Or, your lease may end soon. No matter what your timing is, we will be prepared to see you through the entire Buying/Selling process.

Everyone’s timing is different.


2. How many houses have you already seen and what are your 3 favorite areas?

This question helps us gain a better understanding of your recent real estate experience. Also, we would like to know your 3 favorite areas – this is an easy way to begin discussing the importance you place on schools, demographics, and where you want to live.


3. If we found your perfect home tomorrow, what would you do?

We would ask this question so we can evaluate your readiness to actually move and better grasp your preferred timeline. If you are a first-time home buyer, we will go over the closing process and any other details that you need to know about buying a new home.

4. Are you working with a lender?

We would like to know if you are pre-approved. If so, who is your lender? And if you have not been pre-approved, we would be happy to refer you to a local lender with whom we have had good results.

It is important during the home-buying process that we are able to keep in touch with your lender and provide them information to help a smooth loan process.


5. What would be a deal breaker?

Please tell us what you DON’T want! Specifically, what features, or lack of, would immediately rule out a home for you? This will save tons of time and energy while finding the best home for you. Everyone has different preferences when it comes to their next home, and understanding what to omit speeds up the buying process.

DID YOU KNOW?

A home buyer can get an FHA loan as little as 3 years after a foreclosure and 2 years after a bankruptcy.

7 Steps to Take Before You Buy a Home

By doing your homework before you buy, you’ll feel more content about your new home.

Most potential homebuyers are a smidge daunted by the fact that they’re about to agree to a hefty mortgage that they’ll be paying for the next few decades. The best way to relieve that anxiety is to be confident you’re purchasing the best home at a price you can afford with the most favorable financing. These seven steps will help you make smart decisions about your biggest purchase.

1. Decide how much home you can afford

Generally, you can afford a home priced 2 to 3 times your gross income. Remember to consider costs every homeowner must cover: property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care if you plan to have children.

2. Develop your home wish list

Be honest about which features you must have and which you’d like to have. Handicap accessibility for an aging parent or special needs child is a must. Granite countertops and stainless steel appliances are in the bonus category. Come up with your top-five must-haves and top-five wants to help you focus your search and make a logical, rather than emotional, choice when home shopping.

3. Select where you want to live

Make a list of your top-five community priorities, such as commute time, schools, and recreational facilities. Ask your REALTOR® to help you identify three to four target neighborhoods based on your priorities.

4. Start saving

Have you saved enough money to qualify for a mortgage and cover your downpayment? Ideally, you should have 20% of the purchase price set aside for a downpayment, but some lenders allow as little as 5% down. A small downpayment preserves your savings for emergencies.

However, the lower your downpayment, the higher the loan amount you’ll need to qualify for, and if you still qualify, the higher your monthly payment. Your downpayment size can also influence your interest rate and the type of loan you can get.

Finally, if your downpayment is less than 20%, you’ll be required to purchase private mortgage insurance. Depending on the size of your loan, PMI can add hundreds to your monthly payment. Check with your state and local government for mortgage and downpayment assistance programs for first-time buyers.

5. Ask about all the costs before you sign

A downpayment is just one homebuying cost. Your REALTOR® can tell you what other costs buyers commonly pay in your area—including home inspections, attorneys’ fees, and transfer fees of 2% to 7% of the home price. Tally up the extras you’ll also want to buy after you move-in, such as window coverings and patio furniture for your new yard.

6. Get your credit in order

A credit report details your borrowing history, including any late payments and bad debts, and typically includes a credit score. Lenders lean heavily on your credit report and credit score in determining whether, how much, and at what interest rate to lend for a home. Most require a minimum credit score of 620 for a home mortgage.

You’re entitled to free copies of your credit reports annually from the major credit bureaus: Equifax, Experian, and TransUnion. Order and then pore over them to ensure the information is accurate, and try to correct any errors before you buy. If your credit score isn’t up to snuff, the easiest ways to improve it are to pay every bill on time and pay down high credit card debt.

7. Get prequalified

Meet with a lender to get a prequalification letter that says how much house you’re qualified to buy. Start gathering the paperwork your lender says it needs. Most want to see W-2 forms verifying your employment and income, copies of pay stubs, and two to four months of banking statements.

If you’re self-employed, you’ll need your current profit and loss statement, a current balance sheet, and personal and business income tax returns for the previous two years.

Consider your financing options. The longer the loan, the smaller your monthly payment. Fixed-rate mortgages offer payment certainty; an adjustable-rate mortgage offers a lower monthly payment. However, an adjustable-rate mortgage may adjust dramatically. Be sure to calculate your affordability at both the lowest and highest possible ARM rate.


By: G. M. Filisko

Why Congress Should Care About Middle Class Home Ownership

In a May 21 article appearing in Roll Call, 2014 NAR President Steve Brown urged Congress to embrace policies that will stem the decline in middle class home ownership.

“For decades, the purchase of a first home was the hallmark of middle class arrival and the foundation of financial security for aspiring families,” Brown said in his commentary, Middle-Class Home Ownership Must Be a Bipartisan Priority. “Steadily growing home ownership rates were seen as a proxy for the nation’s progress in making the American Dream a reality for as many Americans as possible. Moreover, broad-based home ownership exemplified the uniquely American sentiment that ordinary people could control their own destinies and move ahead through hard work and responsibility.”

Today, the rate of home ownership in the United States stands at 65 percent, the lowest it has been in nearly two decades, Brown said. He called on Congress to preserve the mortgage interest deduction; take prudent steps to improve credit availability, address the student-loan debt crisis, and provide national leadership on promoting home ownership.

10 Reasons Why Homeowners Have an Edge on Renters

Home buying has earned a bad rap in recent years: The subprime mortgage crisis and ensuing economic meltdown left many homeowners underwater, unable to pay their mortgage and even facing foreclosure. Homeownership rates fell throughout the recession and got down to about 65 percent, compared with almost 70 percent before the recession, according to the Census Bureau. While record-low interest rates helped entice homebuyers, the bureau reports that the homeownership rate remains relatively low, at 65.2 percent in the fourth quarter of 2013.

If you're among those struggling to decide whether to buy versus rent, consider these 10 reasons to take the plunge into homeownership:

1. You can ramp up energy efficiency.Energy-efficient improvements, from adding insulation to upgrading your air-conditioning unit, can reduce your monthly utility bill, says Jane Hodges, author of the book "Rent vs. Own." While renters can make plenty of green improvements on their own, from unplugging appliances to turning off lights, homeowners can make bigger changes, such as adding solar panels or installing an energy-efficient roof. (Of course, a renter living in a one-bedroom apartment likely uses far less energy than a homeowner in a three-bedroom house, so size can trump energy improvements.)

2. You can customize your space.Whether you need to knock down a wall to make a larger master bedroom or redo the bathroom to reflect your art deco tastes, owning the space you live in means you have the freedom to do so, without worrying about losing your security deposit.

3. Homeowners buy less furniture."Often when you're renting you need custom furniture that fits the space," Hodges says, such as room dividers for a loft or miniature furniture to fit into a basement apartment. "When people move a lot, they can end up buying a lot of furniture," she says. If you buy a home and settle in for the long haul, you can likely purchase a few pieces that will stick around.

4. Owning a home forces you to save.The so-called "forced savings" argument is a widely-held one: Since homeowners have to pay their mortgage every month, they are routinely putting money away (and into their house, which they own), instead of squandering it on new shoes or fancy meals. Then, if you eventually sell your home after the mortgage is paid off, there's a good chance that "you'll walk away with a payoff," even after subtracting the costs of ownership, Hodges says. (Of course, homeowners who face foreclosure or declining home values often find themselves without such equity to show for their monthly mortgage payments.)

5. Homeownership allows you to build a second income stream.From taking in a renter in a spare bedroom to renting out driveway space to commuters, Hodges says homeowners are increasingly finding ways to monetize their homes. In cities with scant green space, some homeowners even rent out small patches of grass for people who want to grow vegetables.

6. No landlord can kick you out.Renters can face an unexpected eviction notice if their landlord suddenly decides to sell the home, rent to someone else or otherwise end the lease. That's one reason Boston University economics professor Laurence Kotlikoff says that, for older people with a fixed income in particular, he recommends homeownership (and a paid-off mortgage). "It's important for older people to be in a home that they own as security against a landlord," he says.

7. In fact, you don't have to speak to a landlord, ever again.Landlords can take ages to fix a broken dishwasher, let the air vents fill with dust and particles, or leave pesky messages about repairs. If you're the homeowner, then you're in charge -- which means you have to be home when the plumber calls, but the plumber reports to you. (And, of course, you also have to pay the plumber.)

8. Unlike rent, a fixed mortgage can't go up -- even if inflation does. Fixed mortgage rates don't go up, even if the cost of everything else does. To protect yourself, Jack Otter, author of "Worth It ... Not Worth It?" suggests making a reasonable down payment and taking out a 30-year fixed mortgage to lock in today's low interest rates. "Mortgage rates haven't been this low since GIs were heading home from France. Lock in a low monthly payment, and you've just taken a huge step in protecting your family against inflation," he writes in his book.

9. Homeowners can take tax deductions.The chief tax benefit of homeownership is the ability to deduct mortgage interest payments and property taxes, but the perks don't stop there. Homeowners can also deduct eligible expenses (certain energy-efficient improvements, for example) and in some cases can avoid federal taxes on earnings from the sale of a home.

10. You can take advantage of currently low interest rates and prices. Despite creeping back up, interest rates remain amazingly low from a historical perspective, and at the same time, home prices in many areas remain soft. That can make for an appealing buyer's market.

Of course, buying isn't for everyone. If you might move soon or you want the flexibility to upgrade your digs with just a month's notice or your job outlook is uncertain, then renting can be ideal. Hodges says potential buyers should first consider the transaction costs of homeownership, which can add up quickly, especially if a buyer doesn't plan to stay put for very long.

"During the bubble, people were looking at homes as a tool to make money," Hodges says. Now, they just see them as a place to live.

By: Kimberly Palmer

The ABC's of Working With a Local Mortgage Lender

When looking for a mortgage lender, consider someone who is local because they might have the best understanding of your needs. Here are the things to keep in mind when considering who to hire.


A. Consider the value of using a local lender who is right there in the community. This increases the level of accountability to you as a customer when dealing with your specific loan.

If something goes wrong you have a person to connect with, someone who has been working with you during the entire process and with whom you can speak directly.


B. Consider the advantage to you of the local mortgage lender's unique understanding of the local real estate market.

They might know enough about a market to dispute low comparable sales to establish value for your home loan.
They might know about special down-payment assistant programs offered through local government agencies. If you don’t think this matters, think again!


C. Consider the local mortgage lender's ability to cut down on a lot of the hassles and frustrations that typically go along with the mortgage process. Working with somebody who is in your local community virtually ensures that there will be far less in the way of miscommunication or misunderstandings regarding important details of your mortgage application. When you work with a ‘national’ lender you simply become a number. If there is something wrong with your file it will go to the bottom of your underwriters huge stack of mortgage files.


D. Rely on their desire to maintain their local reputation to help make things work for you. Working with somebody who lives in your community has the advantage of guaranteeing that they will do what they can to make sure you are a happy customer. All it takes is a deeply dissatisfied customer to start talking about a local lender for that lender to run into problems. Reputation is everything and local lenders have a tendency to go the extra mile to keep their customers happy.


E. Use the flexibility that a local lender has. Very few people realize that a local lender often has more flexibility with regard to getting you the best rate than some national organizations do. There are a variety of reasons why this is the case, but the main thing to realize is that you are not putting yourself at any kind of disadvantage in getting the best rate possible by choosing to work with a local lender in your community.


F. Appreciate the personal contact. When you work with a local lender you’re dealing with somebody who you can go and see in person. Given how complicated and confusing the mortgage application process can sometimes be, being able to sit down with somebody face-to-face is a tremendous advantage to you that you simply cannot get with some national lenders.





source of article calimortgageloan

PRE-QUALIFIED VS. PRE-APPROVED-WHAT'S THE DIFFERENCE?

Without good preparation, many buyers get lulled into the mistaken notion that if a lender pre-qualifies them for a mortgage this means that they have been pre-approved for a home loan. Unfortunately, there's a world of difference between these two terms. If you've ever been confused by the two, we'll bring you up to speed on how these terms differ - and why a misunderstanding can mean disaster for borrowers.

WHAT DOES "PRE-QUALIFIED" REALLY MEAN?
Getting pre-qualified is the initial step in the mortgage process, and it's generally fairly simple. You supply a bank or lender with your overall financial picture, including your debt, income and assets. After evaluating this information, a lender can give you an idea of the mortgage amount for which you qualify. Pre-qualification can be done over the phone or on the internet, and there is usually no cost involved. Loan pre-qualification does not include an analysis of your credit report or an in-depth look at your ability to purchase a home.

The initial pre-qualification step allows you to discuss any goals or needs you may have regarding your mortgage with your lender. At this point, a lender can explain your various mortgage options and recommend the type that might be best suited to your situation.

Because it's a quick procedure, and based only on the information you provide to the lender, your pre-qualified amount is not a sure thing; it's just the amount for which you might expect to be approved. For this reason, a pre-qualified buyer doesn't carry the same weight as a pre-approved buyer who has been more thoroughly investigated.

WHAT DOES "PRE-APPROVED" REALLY MEAN?
Getting pre-approved is the next step, and it tends to be much more involved. You'll complete an official mortgage application (and usually pay an application fee), and then supply the lender with the necessary documentation to perform an extensive check on your financial background and current credit rating. (Typically at this stage, you will not have found a house yet, so any reference to "property" on the application will be left blank). From this, the lender can tell you the specific mortgage amount for which you are approved. You'll also have a better idea of the interest rate you will be charged on the loan and, in some cases, you might be able to lock-in a specific rate. With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. Obviously, this puts you at an advantage when dealing with a potential seller, as he or she will know you're one step closer to obtaining an actual mortgage.


The other advantage of completing both of these steps - pre-qualification and pre-approval - BEFORE you start to look for a home is that you'll know in advance how much you can afford. This way, you don't waste time with guessing or looking at properties that are beyond your means. Getting pre-approved for a mortgage also enables you to move quickly when you find the perfect place. When you make an offer, it won't be contingent on obtaining financing, which can save you valuable time. In a competitive market, this lets the seller know that your offer is serious - and could prevent you from losing out to another potential buyer who already has financing arranged.

Once you have found the right house for you, you'll fill in the appropriate details and your pre-approval will become a complete application.

GET COMMITTED
The final step in the process is what's called a "loan commitment", which is only issued by a bank when it has approved you, the borrower, and the house in question. This means the home should be appraised at or above the sales price. The bank may also require more information if the appraiser brings up anything he or she feels should be investigated (i.e. structural problems, accessibility issues, outstanding liens or litigation in progress). Your income and credit profile will be checked once again to ensure nothing has changed since the initial approval.

A loan commitment letter is issued only when the bank is certain it will lend, so the commitment date on your purchase contract should be closer to closing than to the date of your offer.


Pre-approved and pre-qualified are not the same thing, so don't assume that the bank will provide your loan until you have the former. The mistake could cost you your new home!

Ralph Waldo Emerson, American essayist and poet, once said that the future belongs to those who prepare for it. This is sage advice for home buyers who need to lay the necessary groundwork to buy the home of their dreams. by Brian O'Connell

5 Questions to Ask Yourself Before You Start Your Home Search

1. Have I had a stable, uninterrupted job history for the last six months or longer?

2. Do I know my credit score? Is it 620 or higher?

3. Do I pay my bills on time? Have I had any late payments in the last twelve months?

4. Do I have a savings account or can I come up with 3.5%- 5% down payment of my purchase price? OR do I have a source of "gift money"?
There are, of course, exceptions to this.

5. Is your debt greater than 40% of your gross income?



We will be happy to answer any questions you have. Just call us. We will be glad to refer you to a lender.

We are TEAM RED. We are seasoned professionals and are here to help you get started. We are dedicated to helping you, not only begin your home search and find the perfect home for YOU, but to see you through the entire Home-Buying process.

Please don't hesitate to call either of us. WE are CATHY and FRANK, TEAM RED. Call us. 205-572-2557 or 205-335-5554.

How a New Car Payment Reduces Your Purchase Price

For example, suppose you earn $5000 a month and you have a car payment of $400. Using an interest rate of 8.0%, you would qualify for approximately $55,000 less than if you did not have the car payment. Even if you feel you can afford the car payment, mortgage companies approve your mortgage based on their guidelines, not yours. Do not get discouraged, however. You should still take the time to get pre-qualified by a lender. Next, you contact a loan officer to get prequalified for a mortgage loan. You state your desired price and how much you can put down. You provide your income and may even supply pay stubs and W2 forms. The loan officer methodically crunches the numbers (by telephone, in person, or even over the internet). However, if you have not already bought a car, remember one thing. Whenever the thought of buying a car enters your mind, think ahead. Think about buying a home first. Buying a home is a much more important purchase when considering your future financial well being. Do not buy the car. Buy the house first.

Debt-to-Income Ratios

You see, when determining your ability to qualify for a mortgage, a lender looks at what is called your "debt-to-income" ratio. A debt-to-income ratio is the percentage of your gross monthly income (before taxes) that you spend on debt. This will include your monthly housing costs, including principal, interest, taxes, insurance, and homeowner’s association fees, if any. It will also include your monthly consumer debt, including credit cards, student loans, installment debt, and…. …car payments.

NEW HOUSE OR NEW CAR?

When you get a raise or accumulate some savings, you may find yourself confronted by an innate instinct of modern civilized men and women. The desire to spend money. It begins simply, by going out to restaurants, then accelerates to purchasing clothing, electronic gadgets, and since North Americans have a special fondness for the automobile, you may even buy a "brand new car." If you're married or ambitious, a few months later your thoughts eventually turn toward buying your own home. Or a move-up home, if you are already a homeowner. Next, you contact a loan officer to get prequalified for a mortgage loan. You state your desired price and how much you can put down. You provide your income and may even supply pay stubs and W2 forms. The loan officer methodically crunches the numbers (by telephone, in person, or even over the internet).

Why Should I Buy, Instead of Rent?

A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.