Faith Based Investing

gETTING A MORTGAGE TODAY

What can you do to help yourself get pre-approved?

Remember when getting a mortgage was easy? Now, you need pre-approval. So how can you increase your chances of passing that all-important test?

You want a lender in your corner. Sellers and agents don’t want to waste their time working with a buyer who isn’t pre-approved. Why should they contend with uncertainty?

A buyer with a pre-approved loan gets respect when a seller gets multiple offers. A pre-approval shows the seller the size and terms of the loan the bank is ready to greenlight. Commonly, a pre-approval is good for 90-120 days.

Pre-approval is a whole different level than pre-qualification. You can supply very basic financial information to a bank or lender and walk out with an estimate of how much mortgage you might be able to carry. However, that is no promise. Pre-approval is an actual commitment from the lender to you.

So what can you do to earn that commitment?

Test the waters well before you test the housing market. Visit more than one lender, and see what you can borrow, just how much home you can afford, and what kind of mortgage options you have. Keep in mind that a pre-approval is a pledge that a mortgage lender makes to you, not a contract. Should some other bank or mortgage company make you a more attractive pledge, you are free to switch horses.

Make your case. Don’t skimp on the documentation you bring to the appointment. Usually, a mortgage lender will want to see the hard data of your financial life over the last couple of years: the bank statements, the federal tax returns, the W2s, the pay stubs. If you earn investment income, bring paperwork showing that you do. If you deposited any big sums into your bank account recently, you’ll probably be asked what that deposit represents.

The amount you are pre-approved for typically reflects three factors: how much you have saved up for a down payment, your FICO score and your current address. It should only take a few business days for a lender to get back to you and let you know how much mortgage it will pre-approve for you.

Aim to get pre-approved within 30 days. This way, you don’t risk harming your FICO score so much. The majority of credit-scoring paradigms out there don’t penalize your credit rating for home loan, student loan and car loan inquiries made 1-30 days prior to the score calculation.

Don’t expect all the details right away. When you apply for a loan, your lender is using that day’s mortgage rates to calculate costs and payments, and rates move. So the pre-approval may be light on particulars about the interest rate or the loan type.

Avoid fly-by-night lenders. The seller and the seller’s agent want to see that a reliable, “name” lender is issuing its stamp of approval here, not an obscure Johnny-come-lately. Credibility counts.

Can’t get a standard loan? Don’t forget about the Federal Housing Administration, through which you might be able to arrange a mortgage with as little as 3.5% down. Most lenders can process an FHA loan like a standard loan, and commonly the rates are about an eighth of a point higher than a standard mortgage. Also, remember that first-time buyers have until the end of 2009 to qualify for an $8,000 federal tax credit which can be put toward the down payment and closing costs.

Wealth comes to those who spend carefully, use debt wisely, and develop a regular savings program. There are some common threads that run throughout many areas of your financial life. When I look at where the typical family in America is financially, I am saddened. I believe that if each family lived with these rules, the world would be a much better place:

1. Live below your means.

2. Allocate time, energy, and money efficiently to build wealth.

3. Turn to God in times of need.

4. Question needs versus wants.

5. Financial freedom is more important than high social status.

The Bigger Questions

Whenever you consider purchasing something think, “Is It adding to or subtracting from my wealth?”

Assets are things that bring wealth. They have value and grow over time. They have the ability to provide you income today, tomorrow, or at some point in the future. Examples of assets include certificates of deposit (CDs), savings accounts, mutual funds, stocks, bonds, and investment real estate. Liabilities, on the other hand, are things that take away from your wealth. They require that you make payments at some point to reduce what you owe. Examples of liabilities include mortgages, loans, credit cards, and IOUs.

As you begin to work through this area of your life, evaluate:

* What is my monthly income? How can I increase it?

* What are my monthly expenses? How can I reduce these?

* What assets do I own? How can I get better returns?

* What liabilities do I owe? How can I pay these off as quickly as possible?

* What else do I own? Do I really need it or can I sell it to help with my goals?

Questions like these will help you get into the mind-set you need to succeed financially. Financial freedom should be the goal of every individual. If you are not planning ways to add to your wealth, chances are you will never end up accumulating any. There needs to be a process, a plan, and a strategy to overcome your weaknesses and add to your strengths. With God on your side, all is possible. The only thing holding you back is you!

The Curse of Lottery Winners

“Winning isn’t everything, but wanting to win is.” – Vince Lombardi

Many pray to win the lottery hoping it will solve all of their money problems.  However, with more money comes a greater responsibility.  If you don’t handle money well before you have millions, what makes you think you can handle millions?  Money is never the root answer to a problem.  In fact, many who win the lottery seem to multiply their problems.  Take for example:

* Kenneth and Connie Parker were winners of a $25 million jackpot. Their 16-year marriage disintegrated just months after they became rich beyond their wildest dreams.

* Jeffrey Dampier, a $20 million winner, was kidnapped and murdered by his own sister-in-law.

* William “Bud” Post won $16.2 million in the Pennsylvania lottery in 1988 but now lives on his $450.00 a month Social Security check after relatives, and an ex-girlfriend tormented him until he invested and shared his millions with them.

* $314.9 million dollar Powerball winner Jack Whittaker was sued by an Atlantic City casino in 2004 for allegedly writing bad checks from a closed bank account in West Virginia.

* Evelyn Adams, who won the $5.4 million dollar New Jersey lottery not just once, but twice in 1985 and again in 1986 gambled most of it away, and became broke.

* 1993 Missouri lottery winner Janite Lee won $18 million and filed for filing bankruptcy just eight years after her stroke of good fortune hit.

* Billie Bob Harrell Jr. hit the $37 million dollar Texas jackpot in 1997 and ended his own life less than two years later when he realized that all he wanted his marriage more than the money, but that it was too late to fix the strained marriage. Why was it strained? His spending habits spiraled out of control, and his wife only wanted a normal life which was anything but.

* Juan Rodriguez had been thrown out by his wife Iris prior to purchasing a winning New York lottery ticket worth $149 million. She reconciled with him for two weeks, and then filed for a divorce taking half of his winnings with her.

The examples go on and on…Many people wish, dream and pray for a quick fix.  My point is fixing the problems before asking for more money.   You should be very careful about what you wish for as everything comes with a price, including winning the lottery – especially when it involves winning millions of dollars.

The actual chances of becoming a multimillion dollar lottery winner are astronomical to begin with, but when it does occur, miraculous things can happen that will forever change a person’s life, for better or worse.  Even though huge winnings can change a person’s life style dramatically, it is said that if you were happy before winning a huge sum of money, then you will be happy afterwards, but if you were an extremely unhappy person to begin with, winning a multimillion dollar jackpot will change nothing except the size of your bank account. In other words, the problems that you had are still lying in wait to rear their ugly head, and the lottery money only temporarily covers up the problems for a brief period.

Experts have looked into the lives of past lottery winners and have learned that not all multimillion dollar winners have a happy ending. A common issue within our society is the belief that money solves most of our problems. Another big problem is the lack of financial guidance when being handed over a large amount of money. In fact nearly one third of multimillion dollar lottery winners become bankrupt in just a few short years after they’re big win. If you are not accustomed to having great wealth as many of these big lottery winners were not, then the problems that come with suddenly having a lot of money overnight can be so overwhelming that depression becomes inevitable.

My Precious

The biggest stumbling block that I see when it comes to giving is people putting self-interests above others’ interests. When you have selfish motives or a materialistic attitude it becomes increasingly diffi­cult to stick to a set of principles. For example, if greed, jealousy, envy, or other selfish desires get the best of you, the almighty dollar becomes a major focal point. Not only will this force consume you, it will eat you alive! You see, unless you find true contentment, you will always be envious of someone with more money and more things who is better-looking, younger, or has something that you want.

Without contentment, there is no line to be drawn; there is no point where you say enough is enough. Once you cross the line, it becomes easier and easier to push that line farther and farther out. It seemed innocent at first. Now, your desires for more have gotten the best of you. You may even wake up one day, look at yourself in the mirror, and not even recognize who you’ve become. Make money your god, and before you know it you often become a slave to money. When this occurs, you will stop at nothing to obtain more. Like Gol­lum from the Lord of the Rings series, you become consumed by money and it becomes your “precious.” Avoid the stumbling block by learning to become content. This involves breaking free from con­sumerism and materialism.

Break Free

The major way to give more is to break free from the grips of material­ism. The goal of this life should not be to accumulate money for the sake of personal gain. As a person of faith, our God may bless us with wealth, but it ultimately belongs to Him and thus should be used to glorify Him.

The American lifestyle is easily glorified. I don’t want to sound anti-American; America truly is the home of opportunity. With a creative mind and a hard work ethic, anything is possible, but don’t be fooled by the extravagant lifestyles of the rich and famous. They make up a small percentage of the country’s population. Don’t try to compete. Instead, start by examining your lifestyle; look at the clothes you wear, the car you drive, the house you live in, and all of the luxuries you have. Again, it comes back to appreciation for what you have. America is a land of excess, and I understand it’s easy to become attached to “things.” Breaking free from materialism and consumerism helps you put God back in His rightful spot: the center of your life.

Does Yesterday’s Advice Ring True Today?
When you were growing up, you may have heard your parents or grandparents say, “If you can’t pay for it with cash, then you can’t afford to buy it.” That sound advice worked then, but does it still ring true today? The average cost of a car, house, or college education has skyrocketed when compared to the average household income. Typical families now have legitimate needs to borrow money if they want to buy a home, drive a car, or educate themselves or their children. Throw in a handful of credit cards, and it is no wonder the average consumer is carrying more debt than ever before. With greater credit needs comes a greater need for debt management.

Good debt management ensures that you will have credit when you need it, make wise borrowing decisions, and avoid disaster if you become overextended. You can ensure that loans are available when you need them by establishing and maintaining a positive credit record. You can benefit from many specialized loan programs if you are aware of your borrowing options. You can save money by taking steps to reduce the cost of debt and save yourself from disaster if you know what to do when you can no longer meet your financial obligations.

Having a never-ending supply of cash may be a dream. Many would love to do whatever they want when they want. It is far better than the alternative–incurring debt. In order to pursue true wealth, you need to understand the difference between “good” and “bad” debt. So how can you tell “good debt” from “bad debt”?

Here are the working definitions of what I am talking about:

Good debt: Good debt involves purchasing something that will gain, retain, or create value. A home mortgage is a prime example of good debt.

Bad debt: To put it simply, bad debt is any debt you incur when buying something that will lose value.

Ugly debt: Ugly debt is debt incurred when purchasing something consumable (meaning it will have no further value). This seems logical, right?

A Driving Factor
Many people assume bad debts because “that’s just how it is.” But that’s not necessarily how it has to be. For example, look at vehicles. Many Americans buy cars via automobile loans. But a new or late-model car loses value the moment you drive it off the lot, and it continues to lose value with every mile it travels. So why incur bad debt for this? Well, for many a vehicle is simply a necessity and a loan is the only means they have available to obtain it. But a large percentage of Americans purchase more car than they really need or can afford. It’s important when facing bad debt to keep that debt in check. Purchase only what you need, and with a plan to pay it off as quickly as you can.

Can bad debt turn into good debt? Yes! Let’s say you purchase a vehicle by taking out a loan for a portion of the cost–that’s bad debt. But if the vehicle is a hybrid or electric vehicle that typically has a high resale value and saves you a substantial amount of money on gasoline, your bad debt could turn into good debt.

Expensive Tuition

One of the ways God uses money is to teach each and every one of us lessons about money.  Until we learn to responsibly handle all He has provided, it is unlikely He will bless us with more.  He is a God of many chances, but He wants to ensure you are learning key lessons along the way!

God’s desire is to teach us life lessons through the use of finances. In our day-today lives, there are certain lessons to be learned.  There are times when I have failed miserably with the wealth God has entrusted to me.  I have lost hundreds of thousands of dollars making foolish mistakes.   However, it is how we learn from these mistakes that determines our future.

Why does God use money to teach us lessons?

It says in Matthew 6:19-25 “Where your treasure is, there will your heart be also.” Whenever we place our money somewhere, we develop a strong interest where our money goes.  God wants to train our hearts to long for Him and place him above money.   We often see God using money as a tool to do some of the following things:

1. God uses finances to meet our basic needs.

2. He uses money to strengthen our faith.

3. He uses money to prove His power.

4. God uses our finances to direct our lives.

5. God uses money to teach us financial freedom

6. God uses money to help us face ourselves

Is God Providing For Your Needs?

What if God does not seem to supply what we think is a need? If the funds to buy an item are insufficient and God does not seem to supply the money, you should ask the following questions:

God answers prayers with a yes, no, or not now response. We often see the “no” and “not now” responses as one in the same. We forget that it is in God’s time, not our own. There is a bigger plan. There is another piece to the puzzle. You need to learn certain lessons before proceeding to the next chapter of your life. If your financial prayers are not be answered think about these questions:

1) Was my prayer for a need or something I want?

2) What are my intentions and where is my heart?

3) Am I trying to deceive God by not having pure intentions?

4) Did I misspend the money God has already sent?

5) Have I violated a financial principle in God’s Word?

We Deserve Better!
As business owners and entrepreneurs, as a hard working Americans, as a men, women and children – no one deserves to be $35,000 in debt! As our deficit is skyrocketing second by second, our National Debt is SO LARGE, each and every person in America now owes over $35,000 toward the National Debt. Why are we mortaging our children and grandchildren’s future? Let us send our Government a Message!

On April 15, be part of the Taxed Enough Already (TEA) party rally in your community
On the day you pay your taxes, Wednesday, April 15, join others across the country and in your hometown who will be participating in TAX Day TEA party rallies in front of their city halls. The TAX Day TEA party rally will begin at 12 noon. Go to www.teapartyday.com

Are you fed up with a Congress and a president who:

* vote for a $500 billion tax bill without even reading it?
* are spending trillions of borrowed dollars, leaving a debt our great-grandchildren will be paying?
* consistently give special interest groups billions of dollars in earmarks to help get themselves re-elected?
* want to take your wealth and redistribute it to others?
* punish those who practice responsible financial behavior and reward those who do not?
* admit to using the financial hurt of millions as an opportunity to push their political agenda?
* run up trillions of dollars of debt and then sell that debt to countries such as China?
* want government controlled health care?
* want to take away the right to vote with a secret ballot in union elections?
* refuse to stop the flow of millions of illegal immigrants into our country?
* appoint a defender of child pornography to the Number 2 position in the Justice Department?
* want to force doctors and other medical workers to perform abortions against their will?
* want to impose a carbon tax on your electricity, gas and home heating fuels?
* want to reduce your tax deductibility for charitable gifts?
* take money from your family budget to pay for their federal budget?

If so, participate in the TAX Day TEA party rally, the Taxed Enough Already (TEA) party.

Bring your cell phone and call Congress and the president while attending the TAX Day TEA party rally (Representative and Senators, 202-224-3121; President, 202-456-1414). Tell Every American about this effort by forwarding this invitation to your friends. Together we can make a difference. www.teapartyday.com