Get a Home Loan with No Credit

Its true credit can be a crucial component to qualify for a business loan or home loan in Stillwater and Hudson, but it’s not everything. You can get a home loan with little or no credit from banks, but you have to go a little extra mile for that. That extra mile effort depends on factors like your credit history and the type of home loan you want from a bank in Stillwater, MN /Hudson, WI.

Home Loan-FSBT

3 Ways To Get A Home Loan With No Credit

1) A Creditworthy Cosigner

A cosigner could be anyone with a higher credit score and not necessarily the one living with you or helping with making the monthly payments. For approving the loan, banks consider the cosigner’s income in the affordability calculation. You make all the payments after loan approval, but the cosigner becomes responsible should you stop paying. Therefore, before signing, the cosigner and you must clearly understand all the pros and cons of the arrangement.

2) Larger Down Payment

Whether taking a business loan or home loan in Stillwater/Hudson, putting a larger down payment makes lenders and banks apprehend you have more skin in the game. It lowers the loan amount, equating to lesser risk for the lender. It is also a popular way of getting a home loan with no credit.

3) Manual Underwriting

Nowadays, most lenders rely on fintech tools like automated underwriting systems to consider borrowers’ qualifications for a loan. The manual underwriting process enables banks to examine their risk level. They analyze details like your income, employment, existing debt, and monthly expenses to deny or approve a loan application.

 Easy Tips to Build Your Credit Profile History

●     Timely Payment of Monthly Bills

If you have monthly bills, including utilities, car loans, or student loans in your name, pay them on time each month. It helps the bank in Stillwater, MN/Hudson, WI evaluate your payment history, assuring them and building your credibility.

●     Have A Credit Card in Your Name

Apply for a low-balance credit card in your name using e-banking in Stillwater/Hudson. When you pay their balances off by their due dates, it builds your credit profile.

●     Get Rental Payment Data

Check if your property manager has reported rental payments to any credit bureaus through platforms like Experian RentBureau. Ask them and get the rental payment data. Such valuable data supports your payment history evaluation to lenders and banks. Use programs like Rental Kharma and Chime for rent payment through apps and build your credit profile.

●     Be an Authorized User of Someone else’s Credit Card

Like a cosigner, you become responsible for any debts you accrue. While timely payments build your credit profile, any missing ones (even by the account holder) impact your credibility equally. Therefore, choose a responsible account holder for such an arrangement. They must understand all the pros and cons before agreeing to such a deal.

Conclusion

Don’t let your financial situation be an obstacle to homeownership. Consult a trusted loan advisor with any bank in Stillwater, MN/Hudson, WI discuss your unique financial condition and goals. They can help you choose the best possible way to get a home loan with no credit.

2022 Tax Season: How Taxes Influence Your Business?

Another year is gone, and it’s time for filing taxes!

The 2022 tax season started on January 24th and will be till April 18th. If you need a tax extension, apply now before the April 18th deadline ends. It will permit you to file your returns as late as October 17th, 2022. Filing your taxes on time accurately and honestly helps you secure business funding easily from any bank in Stillwater, MN,/ Hudson, WI, or through Ebanking in Hudson/Stillwater.

2022 Tax Season

According to IRS, businesses have several forms of taxes like income, estimated, self-employment, employment, and excise. You have to pay them annually without any inconsistency to understand your business’s financial health and sustainability. For it, you must understand how taxes influence your business.

Two Critical Ways Taxes Influence Your Business

●     Taxes have a direct impact on your cash flow and investment plans.

Do you have plans in 2022 to expand into new territory, take risks, pay off debt, purchase large equipment, handle employee payroll, or make long-term investments?

If you do, then any lender or bank in Hudson, WI,/ Stillwater, MN, would demand to see your financial documents. It includes documents like bank statements, credit scores, personal credit scores, and a copy of your previous tax returns. 

Adjusting depreciation and taxes from your cash flow statement shows an accurate financial picture of your business for the financial year. It directly influences your long-term investment plans and helps you secure funding for your business.

●     Taxes spotlights the bottom line of your business’s profitability.

When you want potential purchasers, lenders, and investors to compare the financial performance of your business to others in different industries, with varied capitalization structures, in different tax jurisdictions, you can show EBITDA (Earnings before interest, taxes, depreciation, and amortization) statements.

However, it gives a misleading impression, especially if you need to mortgage in Hudson or Stillwater. The US Generally Accepted Accounting Principles (GAAP) do not conform to EBITDA as it masks potential problems in businesses like excessive debt, poor cash flow, and high borrowing costs. 

EBITDA helps lenders and investors to compare the profitability of businesses, but it doesn’t indicate your company’s financial position. Deducting interest, taxes, depreciation, and amortization from your earnings allows you to see the bottom line of your business’s profitability. It lets you know how sustainable your company is in this financial year.

Conclusion 

Whether you need an exact picture of your business’s profitability or want to secure funds from any bank in Stillwater, MN,/Hudson, WI, you must file taxes timely in the 2022 tax season to structure all your business financial plans. Consult with a professional financial advisor to know further how various business taxes precisely influence your company before taking any mortgage in Hudson/Stillwater.

Process of Getting a Personal Loan to Consolidate Debt

Various debts you take from banks like a car loan, business loan, or a home mortgage in Stillwater and Hudson come with some collateral backing it. For such secured debts, a bank in Stillwater, MN, and Hudson, WI, can take or reprocess the collateral when you stop paying the debt.

Unsecured debts like credit cards, student loans, or personal loans are the ones you are liable to pay and agree to pay to the bank in Stillwater, MN, or Hudson, WI. But they cannot foreclose your home or throw you in jail to recover the debt. They cancel your credit cards, impacting your credit score that affects your chances for a business loan in the future in Hudson or Stillwater.

Banks will always try to get their money back, and a lower credit score will impact your financial health more. Therefore, if you have a lot of unsecured debt with high-interest rates, it is wise to get a personal loan and consolidate your debt.

What Is Loan Consolidation?

Combining multiple unsecured debts into one personal loan debt is called loan consolidation. It helps you avoid the headache of multiple debt payments each month. Personal loans available under ebanking Hudson or Stillwater are as low as 5.99% or even lower. But, most of your credit card or other debts have interest rates of 18-24% or higher.

A personal loan is an installment loan. It has a fixed end date, and with its fixed-rate loan, the monthly payments remain the same for the duration of the loan period. Getting a personal loan to consolidate debt can simplify your life and benefit you with lower interest rates to clear your debt.

Process of Getting a Personal Loan to Consolidate Debt

1) Compare different bank lenders in Stillwater, MN, and Hudson, WI, to see what types of personal loans they offer.

2) Understand all collateral requirements or prepayment penalties if you choose to pay off the loan ahead.

3)  Consolidate all your debts to calculate your loan amount. Let’s say you have multiple debts like

• Private student loan of $ 10,000
• Credit card debt on card X $ 8,000
• Credit card debt on card Y $ 10,000

You owe an XYZ bank in Stillwater, MN, or Hudson, WI, a total of $23000 that you pay each month with three different payments.

4) Pick a personal loan with a longer-term and larger loan amount to lower your interest rates.

5) Now, use the debt consolidation loan to pay off the three debts. Such a personal loan effectively condenses those debts into one single debt of $28,000 with a lower interest rate.

Conclusion

A personal loan from a bank in Stillwater, MN, or Hudson, WI, does not have any form of collateral other than your promise to repay. Loan consolidation helps in financial decluttering and allows you to clear your high-interest debt through personal loans with lower interest rates or terms.

Variables That Affect Your Mortgage Interest Rate

When taking a mortgage in Stillwater or Hudson, it is understandable that you want lower interest rates. But, often, you find it puzzling to figure out how your mortgage rate gets determined. Your bank in Stillwater, MN, and Hudson, WI, already knows it, and so you must know it too. Understanding the variables that affect your mortgage rate helps you prepare better for the home-buying process. In addition, it empowers you to negotiate more favorable mortgage deals with the banks.

Variable That Affects Your Mortgage Interest Rate in Stillwater and Hudson

1) Property Utility

If you are a primary residence of the property given for mortgage in Stillwater and Hudson, banks offer the lowest interest rates. But when it is your second home or some investment assets, the interest rate can soar higher.

2) Property Type

The type of your property also plays a significant role in determining your mortgage interest rates.

• Single-family homes and condominiums

 If you put 25% or more in a down payment or equity for such property, you get lower interest rates from banks.

• Condos, multi-family dwellings, and co-ops

You get higher mortgage interest rates if you put less than a 25% down payment.

3) Credit Score

Your credit score is the key variable that affects your mortgage interest rate with any bank in Stillwater, MN, and Hudson, WI.

If your credit scores are higher (like 800), you will receive better interest rates (at least 1.5% lower) than those with lower scores (below 640).

4) Down Payment

The percentage of down payment you make affects your mortgage interest rate directly. So, make a down payment of 30-40% instead of 20% and get a reduced mortgage interest rate in Stillwater and Hudson.

5) Loan Term

While taking a mortgage, consider keeping the loan term short. If you have a short and fixed loan term, say 15-years, banks will offer lower interest rates than longer-term programs like 30-years.

6) Loan Amount and Type

Mostly, banks offer lower mortgage interest rates for conforming loan amounts below $500 000. The high balance conforming loans might vary from one bank to another in Hudson, WI, and Stillwater, MN, but it always attracts higher interest rates. Similarly, the type of conforming loan (FHA, VA, USDA, and 203K loans) also impacts your interest rates.

7) Piggybacks or Second Mortgages

When you take a loan with a concurrent 2nd mortgage, it will get a higher interest rate than any loan taken with 20% with private mortgage insurance (PMI).

8) Rate Lock Period

You can have mortgage interest rates locked in or guaranteed with time coinciding with the closing date. The rate lock period can be from 30 to 60 days. Remember, the interest rate rises with a longer rate lock period. To get lower interest rates, keep the rate lock period short.

9) No-Cost Refinances

The offer might seem tempting while refinancing your mortgage loan, but banks always charge a higher interest rate for it.

Conclusion

Before taking a loan or mortgage in Stillwater and Hudson, consider these variables that impact the interest rate. Go for reliable banks that do not offer one-size-fits-all interest rates but instead recognize individual financial status to determine it.

Credit For Your Retirement Plan

Retirement plan credit is a credit that helps qualified retirement savers offset their federal income taxes. The credit for retirement plan can range from 10-50% for eligible savers, with the highest percentage going to taxpayers with the least income.

This credit for retirement plan was introduced as an incentive to encourage retirement savings, under the Economic Growth and Tax Relief Reconciliation Act of 2001. The credit is non-refundable, i.e., the amount you claim for credit can never be more than the amount you owe for a particular year.

Who Can Take the Credit?

You can check with your financial or tax professional to know whether you’re eligible for retirement plan credit or not. In 2020, you may be able to contribute to retirement plan credit if you contribute to SIMPLE, 401(k), 403(b), SARSEP, government 457(b) plan, or traditional or Roth IRA and your MAGI is less than $64,000.

You can claim 10%, 20%, or even 50% of your eligible contributions on your taxes depending on your MAGI, your filing status, and many other factors. The maximum credit amount is $2,000 for single filers, qualifying widowers, heads of household, and married couples who file separately. However, your maximum credit is $4,000 if you’re married and file jointly.

Other requirements to qualify for Minnesota retirement plan credit are:

• You’re 18 years old or above
• You are not a full-time student during the calendar year
• You don’t claim yourself as dependent on another person’s income tax return
• Your income falls within the limits established by the IRS in 2018

6 Facts That Most Americans Don’t Know About Credit Score

A credit score is a number that is analyzed depending on an individual’s credit files. The credit score represents the creditworthiness of an individual.

Here are some more facts about credit score that you must know:

Fact 1: 5 Factors Impact Your Credit Score

If you’re trying to improve or maintain your credit score, you must know these 5 factors that impact your credit score:

• Credit inquiries (10%)
• Account balances (30%)
• Credit history length (15%)
• Payment history (35%)
• Types of credit (10%)

Fact 2: You Can Get Your Scores & Reports for Free

You’re can get a free copy of your credit report from three different credit reporting agencies: Equifax, Experian, and TransUnion.

Fact 3: Credit Score Ranges From 300 – 850

According to FICO and VantageScore, credit score ranges from 300 to 850. Good (690 and up) or excellent (720 and up) scores give you better choices and save money.

• 300-629: Bad credit
• 630-689: Fair credit
• 690-719: Good credit
• 720 and up: Excellent credit

Fact 4: Your Credit Scores Won’t Get Merge with Your Spouse’s Credit Post Marriage

You’ve joint accounts doesn’t mean that your credit score will merge with the spouse. Your credit score history will remain independent from your partner.

Fact 5: Improving Your Score Isn’t Impossible

People who’ve filed for bankruptcy or have had their possessions repossessed may think that their credit score can’t improve. However, it’s not true. With proper measures and careful practice, they can improve and maintain their credit scores. But once credit score improves, it’s better for everyone to learn from their mistakes and start working towards healthy financial wellbeing.

Fact 6: It’s possible for you to have no credit score

According to Credit Financial Protection Bureau, “1 out of 10 Americans are credit-invisible.” There are chances that you might fall in this stats. If it happens to you, you can consult the best lender in Stillwater MN.  They can help you build your credit history to get on the radar.

Want more information about credit score? Get in touch with Stillwater MN Banks consultants!

4 Health Insurance Options If You Find Yourself Uninsured

If your company offers health insurance, there is no need to worry! But if you don’t have any health insurance, you must opt for the one before you turn 40.  We have created a list of health insurance options that you can opt within no time.

1. COBRA coverage – If you got fired or leaving your company, there is a possibility that you might be given the option under COBRA to continue your health coverage. For an employee covered COBRA coverage can last for 18 months from the date of election of coverage. However, dependents can receive up to 36 months of coverage if they switch to Medicare, get divorced, or die. Otherwise, they’re covered for 18 months as well. So if you really don’t have any option, you can depend on COBRA for a few months.
2. Your spouse – Sometimes, you can get dependent on your spouse insurance. You’re eligible for spouse’s benefits only if you’re married to an individual for at least one year who receives Social Security retirement or disability benefits.
3. Private individual/family policies – There are some private or family insurance plans that you can look at. Some of the companies that offer private or family policies are Cigna, Blue Cross, First State Bank And Trust, and Aetna etc. To know whether this policy is available in your city, you can visit any bank in Stillwater.
4. Medicaid – If you’re not eligible for any of the above-listed policies, you may need to look to Medicaid. Being run by the state government doesn’t mean it’s available for available. You may need to fulfill certain income requirements and state-specific requirements for Medicaid.

If you want to have clear information about any kind of health insurance, you can visit Bayport Bank And Trust.

6 Important Services Offered By Banks to Their Customers

Banks offer many services to their customers to attract them. These services help banks to get more customers, retain the old ones and more. Here are some of the services that are offered by banks to their customers are:

#1. Deposit – Accepting money from account holders or savers to deposit cash is the primary function of a bank. However, banks can’t use this deposited money in profitable sectors. Most of the people prefer to deposit their money in banks to earn interest on the deposited amount.

#2. Mobile Banking – Mobile banking is a service offered by banks that allows account holders to perform balance checks, making payments, account transactions, and various other banking transactions through a smartphone or Personal Digital Assistant (PDA).

#3. Online banking – Online banking is also known as internet banking is a service offered by banks that allows account holders to access their account data via the internet. This service allows user do repetitive transactions, such as account transfers, balance inquiries, bill payments, and stop-payment requests. Moreover, users can use online banking service to apply for credit cards and loans. Account holders can access their accounts anytime, day or night, and from anywhere.

#4. Advancing of Loans – As banks are profit-oriented business organizations, they work on the basis of advancing loan to the public and generating interest in the form of profit. Banks offer different types of loans such as short-term, medium-term and long-term loans, according to the needs of borrowers.

#5. Cheque Payment – Every bank provides chequebooks to every account holder. Account holders can use those cheques to make their payments. Banks pay for cheques after proper formal verification.

#6. Debit cards – A debit card is a plastic card that an individual can use to withdraw money from its account by using ATMs. The money that an individual withdraws directly come from its personal account.  Most debit cards require a Personal Identification Number (PIN) to be used to verify the transaction.

Need to know about the bank services, you can get in your area? Contact Bayport Banks to get complete information.

Rules And Guidelines For General Financial Planning |Oak Park Heights Banks

Everyone has a unique situation, and there are no concrete plans that define how you should do financial planning to buy an asset. However, there are some things regarding financial planning that you must keep in mind before applying for a home loan.

 

How Much Loan Should You Take?

Ideally, taking debt is not the best solution. However, there are times when you don’t have any option except applying for a loan, such as buying home, investing in a small business and more. You must apply for a loan that you can afford to pay back and according to your gross income. According to the experts, your monthly debt payments shouldn’t exceed 36% of your gross monthly income. This is a good point to start, and you can be in a good shape if you clear your debt from time to time.

How much you must save for emergency purpose?

An emergency fund is necessary to cover the expenses in a situation of sudden loss of income or any another financial emergency. According to the experts, a person must save enough of money to do expenses for 3-6 months without any issue. So, if your monthly expenses are approx. $2,500, you must try to save an emergency fund between $7,500 and $15,000.

How much money should you spend on your home?

The thumb rule to calculate the amount of money you should spend on your home is that buy a house that costs not more than two and a half to three times your annual income. For example, if you’re the only earning member in your home and you earn $100,000 per year, you shouldn’t spend more than $250,000-$300,000 on a home.

If you need any help with Oak Park Heights Banks, do let us know in the comment section below!

3 Ways To Invest Your Money In Bayport Banks

If you’re looking for a way to invest your money, saving your money in banks is one of the best options. The various investment options that banks avail are:

• Investors Plus Money Market
• Super Kids Savings
• Health Savings Accounts

You can use financial calculators to know how much amount of money you need to save every month in order to meet your financial goals.

3 Investment Options

#1. Investors Plus Money Market

The more you save, the more you earn. The interest rate increases as your balance grows. You need at least $2,000 to invest in this pan.

Program Details:

• You need $2,000.00 minimum balance in your account to avoid a maintenance charge. If balance falls below minimum, you need to pay $10 monthly maintenance charges. Moreover, the interest rate can returns to the Statement Savings rate.
• You are allowed to do up to six transfers per month by using pre-authorized, automatic, internet banking or telephone transfer methods.
• You can do unlimited transactions if transactions are made in the bank not online. Interest rate may change at any time.
• ATM card is available.

#2. Super Kids Savings

Tell your kids the value of saving at an early age. Kids of age under 18 years can open Super Kids Savings account in the bank. No minimum balance is required to open this saving account.

Program Details:

• Kids can open account at $1 minimum deposit.
• No minimum balance is needed to obtain annual percentage yield.
• Interest rates may vary from time to time.
• You can do a maximum of six transfers per month through preauthorized, automatic, Internet Banking or telephone transfer methods.
• You don’t need to pay any monthly maintenance charges with a $100 minimum balance. If your balance drops below $100, you will be charged with $2 as monthly maintenance.  The monthly service charges are waived if the kid is not older than 18 years.

Health Savings Accounts

A Health Savings Account (HSA) is a tax-exempt account that you can use to qualify medical expenses. Some of the benefits of an HSA are:

• Tax deductions for contributions.
• Tax free distributions.
• Existing HSA owners can transfer funds here.

These are few of the investment options that Bayport banks offer to help you save your money.