الخميس، 27 يونيو 2019
How to Get Free Amazon Gift Cards for Playing Words With Friends
If you’re anything like us, you’ve probably logged an insane amount of hours playing Words with Friends. After being stuck with all those impossible letters (Xanthum is a word, right?), you deserve something for your troubles — besides the joy of playing a dirty word.
While you’re at it, why not earn some free gift cards, too? When you play games through Mistplay, a free Android app, you get rewarded to do what you already do.
Mistplay offers new games for you to discover, plus the ones you love to play. Think games like Words With Friends 2, Yahtzee, Clash Royale, Star Wars games and more.
You can find what you want to play on the “Games” page, then you’ll be redirected to the Google Play Store for downloading. While you play games, Mistplay runs in the background and notifies you when you earn in-app currency that you can use to redeem rewards. (To give you an idea, 300 units = $1, and 1,800 units = $5.)
The amount of units you earn varies, but keep in mind that you receive units only when you play the games you add to your Mixlist, or via bonuses from leveling up. Everyone gets 200 units for signing up — and you’ll get another 100 bonus units when you enter the code PENNY100 after sign up. (I think that’s a double word bonus!)
When you’re ready to splurge, redeem your units for gift cards from brands including Amazon (our personal fave), Starbucks, Cineplex, PlayStation and more. So basically, you get to play games to earn gift cards that can… buy you more games. And more. But, more games.
Ready to get in on the game-ception? Get started here.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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The Path to Financial Independence in Detail
Gary writes in:
What exactly do you mean when you talk about financial independence? Can you break it down a little?
In simplest terms, when I talk about financial independence, I’m referring to a situation in which your living expenses are fully covered by your investments for the rest of your life. In other words, you no longer have to work for a living because you have enough in the bank to allow you to live your current lifestyle year in and year out for forever (or close to it).
Depending on which financial advice you read, that means you need to have somewhere between 25 times and 35 times your annual income in investments. That number changes depending on the aggressiveness of the investments and how many years of financial independence are being assumed. In general, I aim for the middle of that of that range and usually use a 30x multiplier (about a 3.3% withdrawal rate).
So, let’s say for example that you can live a life you like on $20,000 a year. That means you need to have somewhere between $500,000 (25 times that amount) and $700,000 (35 times that amount) invested. My target number would be $600,000 (30 times that amount).
Once you’ve reached that point, you simply withdraw $20,000 a year from your accounts and live on that amount (about $1,667 a month). You’ll be able to slightly increase this amount each year to account for inflation, so we won’t muddy the numbers with inflation.
If you need more than that, you can do the math pretty easily. Figure out how much you need per month to live a comfortable, simple life. Let’s say you decide it’s $3,000 a month. To hit that amount, you multiply it by 12, giving you $36,000 a year. You then multiply that number by 30, giving you $1,080,000. That’s how much you would need to have socked away in order to have financial independence while living on $30,000 a year.
Your Target Number and Your Lifestyle
Obviously, the big challenge is getting there, and it’s a multifaceted challenge.
In general, the journey to financial independence can be expressed with a very simple equation.
Your total income = your living expenses + money you can put aside for the future
In order to achieve financial independence, you need to be putting a lot aside for the future. That means maximizing the first number (total income) and minimizing the second number (living expenses) so that the third number can be as large as possible. The bigger that number is (and the smaller your living expenses are), the faster you can get there.
The first thing to consider is what kind of lifestyle you want to establish. Obviously, you’re going to need to be living on less than your income, but what portion of your income are you going to live on?
Let’s say you make $60,000 a year, which is pretty close to the American average household income. Can you live on half of what you make, $30,000 a year? Can you live on two thirds of what you make, or $40,000 a year?
It really depends on the kinds of lifestyle choices you want to make. Do you need to have a large house? Do you need to have a shiny car? Do you need to have a constant stream of “goodies” in your life? It’s all about the lifestyle choices. The more expensive things you choose to have in your life, the more you need to spend each year, and thus the larger your target number is going to be.
Even worse than that, the more you need to spend each year, the less you have available to save each year to reach your target number. Your expenses really do hit you both ways.
So, the absolute most important thing you can do if you want to achieve financial independence is figure out the minimal expense lifestyle that makes you happy. This isn’t worth doing if your life makes you miserable. On the other hand, this is impossible if you spend every dime you make. There’s a balance somewhere in the middle, where you’ve cut expenses that don’t make you happy and downgraded the big things in your life to the point where you’re maximally happy considering their cost and upkeep time and personal benefits.
For example, right now, I have a fully paid for house that I’m happy with, but I actually would like to live in a smaller one once my three children move out. Without kids, we don’t need this much space; arguably, we don’t need this much space right now. What does your minimal house look like, the one that minimizes expense but still leaves you with a comfortable pleasant life? Is it smaller than what you have now? If so, downsizing might be good for your financial state.
Another example: we have two cars for our family, one with more than 100,000 miles on it and another with more than 200,000 miles on it. We could definitely replace either one with something much newer… but why? What do we gain out of this that matters to us? Very little. There are others, with different lifestyles and different interests, who might get a lot of value out of a newer car, but for us, the primary use of a car is to get from point A to point B and these automobiles do the job well. What does your minimal transportation cost look like? Do you need the number of cars you have? Do you need to replace them before they utterly wear out? If you’re replacing cars before you’ve extracted the full value from them, then stop that cycle.
Do you get enough value out of cable to be spending $100 a month on it? That $100 a month becomes $1,200 a year, which adds $36,000 to your target number, and that $100 a month is $1,200 a year that you’re unable to save to get you to that target number. Is it really giving you that much joy? Are there other cheaper options that give you the good life? Consider cutting the cord (and here’s my guide for it).
Every single expense in your life needs to be considered that way. You need to find the minimal expense lifestyle that’s still comfortable and happy and joyous for you and actually live that lifestyle. The cost of that lifestyle sets your target number, and it also sets how much you need to get there.
Don’t Forget Your Career
As I just explained, your income breaks down into two parts.
Your total income = your living expenses + money you can put aside for the future
There are two variables here you can change based on your own actions. You can change your total income (ideally increasing it) by working smarter and harder and also by investing. You can also change your living expenses (ideally minimizing them) by finding ways to cut your expenses that don’t hurt the joy of your lifestyle.
Those two numbers really determine the “gap,” which is what I use to refer to that third number, the money you can put aside for the future. That’s the money that you actually use to get to financial independence.
Often, the living expenses are the more directly actionable part of the equation, as explained earlier, but you can definitely work to increase your income as well. The thing to remember is that efforts you take to increase your income don’t have to have immediate effects; if you can start doing something that improves your income a few years from now, it’s going to significantly improve the amount of money you can save each year as long as you don’t alter your spending along the way.
So, if you make $60,000 a year and spend $40,000 a year, you have $20,000 to save each year.
If you make $60,000 a year and cut your spending down to $30,000 a year, you have $30,000 to save each year.
If you get a raise to $80,000 a year and keep your spending at $30,000 a year, you have $50,000 to save each year.
The more you have to save each year, the better, obviously, so career improvements play a big role, even if they’re career choices that won’t directly pay off immediately.
Thus, if you’re serious about financial independence, you should take a strong career-focused approach to your job with an aim to improve your income as much as possible over the next decade or two.
That means doing things like getting certifications, getting a better degree, building lots of professional relationships, positioning yourself so that you’re known positively to lots of people in the high-paying places you want to work, completing projects, taking on leadership roles, and so on. I’m not going to write out an omnibus of career advice here, but I am clearly saying that part of the path to financial independence involves maximizing your career beyond just what your responsibilities are at work today. You need to be aiming for better career positions that pay a better income, and you need to not increase your living expenses along the way.
Getting From Here To There
So, let’s look at that equation again.
Your total income = your living expenses + money you can put aside for the future
Once you’ve done what you can to maximize your total income and minimize your living expenses, what exactly do you do with that money left over that you’re putting aside for the future?
The first thing you need to do is pay off debts. Almost everyone agrees that the first step is eliminating your high interest debts – everything with an interest rate of about 8% or so. You’ll find a lot of debate about what to do with lower interest debts, whether you should pay them off rapidly before starting to save so you don’t have those minimum payments around your neck and can save even more or whether you should start saving for the future now and make minimum payments on those debts. A lot of that has to do with personal philosophy and personal risk assessment – I don’t think either path is strictly right or wrong. Whatever you decide, though, get rid of higher interest debt and do everything in your power to keep from acquiring any more of it.
The second thing you need to do is build an emergency fund and start saving for irregular expenses. An emergency fund is a pool of cash, usually in your savings account, that you can use to deal with major unexpected events. Avoid using a credit card for this, as many emergencies will deny you the use of that card. Cash is king. Irregular expenses are things like car repairs, home repairs, appliance replacements, car replacements, and so on; it can also include infrequent bills like property taxes. Start saving so that those things are covered when they come around rather than having to take on debt to cover them. The best way to do this is to start automatically transferring a healthy amount of cash each month to your savings account and then using that account for genuine emergencies and for any irregular bills you can’t handle out of pocket.
Once those things are covered, start putting money aside for the future. My general recommendation is to follow these steps in order, using your “put aside money” on each step until you’re out. Any further money you begin to earn from an increase in income should be handled the same way – just go through the steps and put the money in the first step where it fits.
First, contribute to your workplace’s retirement savings plan up to whatever amount you need to get every drop of matching funds from your employer. If your employer doesn’t offer a plan or doesn’t offer any matching, skip this step.
Second, if your income is low enough, open up a Roth IRA and fully fund it. If it’s too high for that, open a Traditional IRA and fully fund it. Here’s some good advice on opening a Roth IRA that almost entirely applies to Traditional IRAs as well.
Third, go back to your workplace’s retirement savings plan and contribute up to their limit. There’s almost always some cap on contributions, so keep adding to this until you hit that cap.
Fourth, open up an account with an investment firm of your choice and start investing in a broad-based index fund like the Vanguard Total Stock Market Index. If you’re at this point, it probably makes sense to start learning more about investing, so pick up a book like The Bogleheads’ Guide to Investing or The Simple Path to Wealth.
All of these contributions should be automatic ones. Your workplace should be able to handle automatic contributions to your workplace retirement accounts and your investment firm of choice should be able to handle automatic contributions to those investments.
The trick, of course, is living on what’s left.
Part of what you’re actually doing with aggressive automated investing, where you never actually touch the money at all, is learning how to live on what’s left behind once those investments are covered. You’re paying yourself first, but doing so with gusto.
This will require some adjusting as time goes on. You might learn that you’re being too aggressive, so you need to dial something back. You might decide you can be a little more aggressive, so you increase a contribution. Aside from that, this entire system should move you automatically toward financial independence.
What Happens When I Get There?
People have somewhat different exact definitions of what it means to be financially independent, but my view is that if you can meet your living expenses for the year solely by withdrawing 3.5% or less of your investments, then you’re financially independent.
So, what happens then?
At that point, you have a lot of freedom to decide what to do with your life. In short, you no longer have to work to earn an income, so your sole motivations for continuing to work are either because the work fulfills you in some way, you want to slowly increase your standard of living now and when you’re no longer earning an income, or you want to do something else with that income (like make charitable gifts). If none of those are present for you, then walk away from work and fill your day with whatever you like.
For some, work might be deeply fulfilling and they choose to continue to do it. In that situation, salary really doesn’t matter too much unless it’s being used for one of the other purposes listed here. My feeling is that, if you’re financially independent, you shouldn’t be spending your time doing work that isn’t fulfilling – otherwise, what is the point of becoming financially independent? I’m all in favor of doing fulfilling work, but if work isn’t providing deep meaning in your life and you don’t have to work for income… find something else to do.
Some others may want to continue to increase their savings for the future, either so that they can slowly start ticking up their lifestyle or so that they can have even more security when they do choose to walk away from work. Many people may be theoretically financially independent but don’t want to do it quite yet because their standard of living would be thinner than they would like, so they keep working. Others may want even more security.
I know of at least two people who continue to work at jobs they’re content with even thought they’re financially independent and could live on their savings. In both cases, they give significant amounts to specific charities they care about – in at least one case, this person is sustaining a pretty important charity just out of their pocket.
The point is this: once you reach the point where you no longer have to work for money, you have a lot more freedom to decide what to do with your time, but that doesn’t mean you have to retire and sit at home and do nothing going forward. There are countless options for you.
What Happens If I Change My Mind Along the Way?
Many people start down this path and, after several years, realize it’s not what they want. They may decide that they want to raise their living expenses. They may get married and have children, which requires at least some raise in living expenses. They may want a less intense career or a more meaningful one. There are lots of reasons why people might choose to stop working toward financial independence.
What happens then?
Usually, people who make that decision after years of saving heavily for retirement have a very, very nice retirement nest egg built up, so even if they dial back their retirement savings significantly, they’re still going to have a very nice retirement when they reach typical retirement age, and that’s something they’ll always appreciate and have in their back pocket. I can’t imagine anyone seriously saying “I wish I had less money saved for retirement.”
In other words, chasing financial independence is a goal that, even if you decide to switch to another goal, you’re not going to regret the progress you made along that path. That cash will be there for you no matter what you decide between today and full financial independence.
Final Thoughts
Financial independence is a wonderful financial goal, but achieving it early in life (say, well before typical retirement age and Social Security benefits) is a stiff financial challenge. For some people, the personal freedom that it offers makes it an intoxicating target, particularly if they’re willing to take a radical approach to their spending habits and live on a relatively small percentage of their income. Thus, financial independence is often very appealing to individuals who are interested in living a minimal lifestyle while chasing a high-paying career.
Sarah and I have financial independence as a long term goal in our lives, but because we started down the path relatively late and chose to have three children (like it or not, children are expensive and delay large financial goals), we won’t be retiring incredibly early in life. We do aim to retire somewhat early, likely right in time with our youngest child leaving the nest.
Financial independence might not be the right goal for you, but it is a sensible financial goal for people who are driven for personal freedom and opportunity above all else.
Good luck!
The post The Path to Financial Independence in Detail appeared first on The Simple Dollar.
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الأربعاء، 26 يونيو 2019
Amazon expands Prime Day to 2 days this year, July 15-16
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US National Debt Escalating to the Danger Zone, the Dollar Gets Weaker
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Bethpage Federal Mortgage Rates Review
Originally an employee credit union formed in Long Island in 1941, Bethpage Federal Credit Union has expanded considerably over the last 75 years, now providing mortgages in every state except the Lone Star State.
Headquartered today in Bethpage, Long Island, the federally-chartered credit union provides a wide range of conventional, FHA, and jumbo loans, as well as HELOCs and fixed-rate home equity loans.
In this review, we will discuss the various mortgage products offered by Bethpage and see how they compare to the nation’s top mortgage lenders.
Bethpage Federal Mortgage Highlights
- Established in 1941, Bethpage Federal Credit Union is now the 16th largest credit union in the United States
- Services 49 states, though in-person service at a branch is only available in the Long Island, New York area
- To apply for a loan, you must become a credit union member by opening a savings account with a $5 minimum deposit
- Loan products include conventional, FHA, and jumbo purchase and refinance mortgages
- HELOCs available for up to $1 million and fixed-rate home equity loans carry terms up to 30 years
- Does not offer VA or USDA loans
History of Bethpage Federal Credit Union
Bethpage Federal Credit Union began its life in 1941, when employees of the aeronautical engineering company Grumman Corporation joined together in Farmingdale, Long Island to form the Grumman Plant Federal Credit Union. The enterprise eventually became Bethpage Aircraft Federal Credit Union in 1948 before adopting its current title in 1974.
In 2003, Bethpage was approved for the largest federal community charter in the United States, accelerating the institution’s growth and helping it become the 16th-largest credit union in the U.S. In 2016, Bethpage began serving customers in every state except the Lone Star State, though the credit union’s three dozen branches are all still located in the Long Island area.
With government-backed 15- and 30-year FHA loans that require borrowers put as little as 3.5 percent down, to jumbo loans that cover up to $5,000,000, Bethpage services a wide range of customers, including both first-time homebuyers and those making expensive property purchases. Becoming a borrower requires a credit union membership, which can be achieved by opening a savings account with as little as a $5 deposit.
Bethpage Federal Loan Specifics
Bethpage offers a relatively comprehensive portfolio of mortgage products, including fixed- and adjustable-rate loans and jumbo loans. A wide range of loan terms are available within those options, with borrowers able to choose between 10-, 15-, 20- and 30-year fixed rate loans, or 3/1, 3/3, 5/1, 5/5, 7/1 or 10/1 adjustable-rate mortgages. The credit union also provides government-backed FHA loans, though not USDA or VA loans.
Fixed Rate Loans
A fixed-rate mortgage comes with an interest rate that remains the same over the entire loan term, rather than increasing or decreasing with national interest rates. Bethpage allows borrowers a wide range of choices when it comes to this loan type, including a 10-year fixed rate mortgage with a 3.625 percent rate and 3.856 annual percentage rate, a 15-year fixed rate mortgage with a 4 percent rate and 4.161 APR, a 20-year fixed rate mortgage with a 4.375 percent rate and 4.502 APR, and a 30-year fixed rate mortgage with a 4.5 percent rate and a 4.593 APR. The shorter the term, the lower the interest rates, but the less time borrowers have to pay off the loan.
Adjustable Rate Loans
As opposed to fixed-rate mortgages that stay the same for the life of the loan, adjustable-rate mortgages (ARMs) begin with a lower interest rate that remains the same for a predetermined amount of time, after which it increases or decreases with national rates. Bethpage offers a 3/1 ARM, in which the interest remains the same for the first three years and then adjusts yearly with national rates for the remaining life of the loan. Bethpage also offers 5/1, 7/1, and 10/1 ARM loans, which keep rates fixed for the first five, seven, and ten years, respectively. The credit union also provides a 3/3 ARM, in which the rate changes every three years, and a 5/5 ARM, in which the rate changes every five.
FHA loans
Federal Housing Administration-insured loans are government-backed mortgages designed to help Americans who would otherwise struggle to qualify for a traditional home loan. Bethpage offers 15- and 30-year FHA loans that allow borrowers to purchase a new home with as little as 3.5 percent down.
Jumbo Loans
As of 2018, the limit on the maximum value assigned to a conventional loan is $453,100. A jumbo mortgage covers loans which exceed that maximum. Bethpage jumbo loans cover up to $5,000,000, through both ARM programs and 10-year fixed rate mortgages. The credit union also offers 15-year and 30-year fixed rate programs to cover loans of up to $2,500,000.
Bethpage Federal Mortgage Customer Experience
Bethpage Federal Credit Union allows borrowers to start their mortgage or home-equity loan application online, by visiting a branch, or by calling a loan officer. The credit union’s website contains many helpful resources that explain mortgage lending and provide financial counseling. Bethpage also offers an online first-time homebuyer center, which guides borrowers through the lending process and includes a closing costs estimator.
Bethpage does not appear in J.D. Power’s 2017 U.S. Primary Mortgage Origination Satisfaction Study, nor is the credit union listed among the lenders found in the CFPB’s Monthly Complaint Report.
Bethpage Federal Lender Reputation
Despite its nearly national home loan program, Bethpage Federal remains primarily a regional credit union with deep ties to the Long Island community it serves, including sponsorship of the Bethpage Ballpark, home of the independent baseball league team the Long Island Ducks.
Bethpage Federal Credit Union’s Long Island headquarters has received an A+ rating by the Better Business Bureau, though the company itself is not a BBB-accredited business. Bethpage has also received a customer rating of roughly two and a half out of five stars, though that is based on just three customer reviews. There have been 18 customer complaints closed in the last three years, eight of which were handled in the past 12 months. It should be noted, however, that many of these complaints are related to the credit union’s other services, rather than the company’s mortgage products.
*Information collected on December 12, 2018
Mortgage Qualifications
Bethpage Federal Credit Union does not publicize its minimum credit score requirements. However, Bethpage does provide FHA loans, which typically require a minimum FICO score of 580 to qualify for the low down payment advantage of just 3.5 percent down.
Additionally, to qualify for the lowest rates possible on all of Bethpage’s mortgage loan products, a minimum credit score of 740 is needed.
It is standard in the industry to require a credit score of at least 620. Anything below that number is generally considered to be poor, though it is possible to obtain loans with bad credit from certain lenders.
|
Credit Score |
Quality |
Ease of approval |
|
760+ |
Excellent |
Easy |
|
700-759 |
Good |
Somewhat easy |
|
621-699 |
Fair |
Moderate |
|
620 and below |
Poor |
Somewhat difficult |
|
N/A |
No credit score |
Difficult |
While FHA loans can be obtained for as little as 3.5 percent down, most loans require a down payment that is closer to the industry standard of 20 percent.
Bethpage Phone Number & Additional Details
- Homepage URL: https://www.bethpagefcu.com/
- Company Phone: 1-800-628-7070
- Headquarters Address: 899 S. Oyster Bay Road, Bethpage, NY 11714
The post Bethpage Federal Mortgage Rates Review appeared first on Good Financial Cents®.
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Chemical Bank Mortgage Rates Review
Founded 132 years ago in Grand Rapids, Michigan, Chemical Financial Corporation is the largest financial institution headquartered in its state.
Its subsidiary banking arm, Chemical Bank, has been in operation since 1917. Alongside personal and corporate banking, as well as wealth management, the bank offers a variety of loan products for individuals hoping to become homeowners or refinance their properties.
In this review, we will discuss the various home loan products offered by Chemical Bank and see how they compare to other top mortgage lenders in the U.S.
Chemical Bank Mortgage Highlights
- Offers home loans and banking services in Michigan and Ohio
- Participates in FHA, USDA, and VA programs
- Has specialized products such as the Heart and Home loan
- Oversees financial literacy programs and free mortgage consultations
- Enables online pre-qualification and loan applications for registered users
- Allows borrowing for new construction, cash-out refinancing, and more
History of Chemical Bank
Founded in 1917, Chemical Bank is a subsidiary of Chemical Financial Corporation. The bank serves borrowers in Michigan and Ohio and offers a number of personal and commercial banking products alongside its loans. The lender has many government-backed mortgages, such as USDA, FHA, and VA offerings, in addition to specialized programs such as Detroit’s Heart and Home.
The bank has an A+ rating from the Michigan BBB but is not accredited and has no user reviews.
Chemical Bank Loan Specifics
Chemical Banks offers the following types of loans to its customers:
Fixed-Rate Loans
A conventional fixed-rate loan is great for borrowers who want to pay the same rate throughout the life of the loan. These are available at different term lengths, with differing interest rates based on what the borrowers have chosen. Chemical Bank offers multiple repayment options for its fixed-rate mortgages.
Adjustable-Rate Loans
As a contrast to fixed-rate loans, lenders (including Chemical Bank) offer adjustable-rate mortgages. These ARMs act like fixed-rate counterparts for an initial term, and then the rates adjust every year. The initial rates are usually lower than those available for fixed-rate products, but when they begin readjusting, can get considerably more expensive. Chemical Bank suggests ARMs for borrowers who intend to spend five or fewer years in their new homes, want to make extra principal payments, or are interested in lower payments to begin with while anticipating increased income later.
Construction Loans
There are specialized loan products available for borrowers who want to purchase land and build on it, rather than buying a home that already exists. These mortgages from Chemical Bank are designed to simplify the construction process, with only one closing instead of separate meetings to fund each step of building the home. While the primary offerings are ARMs, Chemical Bank does note that fixed rates may be offered.
Jumbo Loans
Jumbo loans are a category of loan larger than the maximum amount backed by federal lending agencies. These are necessary products when lenders want to purchase homes and property with higher market values. Chemical Bank’s jumbo offerings include construction loan programs, to help buyers turn a plot of land into a comfortable new home.
USDA Loans
The U.S. Department of Agriculture offers a category of loan especially for individuals who are interested in buying homes in small towns and rural communities. Getting a rural development loan from Chemical Bank is an option for borrowers seeking to move into less populated areas in Michigan and Ohio. These loans’ advantages relative to more standard ones include simpler qualification terms, and potentially, 100 percent financing.
VA Loans
Current and former members of the military, as well as members of their immediate families, may qualify for VA loans backed by the Department of Veterans Affairs. Chemical Bank is one of the financial institutions that offer these products. There is no FICO credit score minimum to receive a VA loan from Chemical Bank, and borrowers don’t have to pay for mortgage insurance on these loans.
FHA Loans
The Federal Housing Authority backs loan programs that are intended for borrowers who don’t necessarily have the readily available funds to make a down payment. Receiving a loan to purchase a first home is a goal for many individuals whose income may not support a conventional loan, and Chemical Bank’s FHA offerings can suit these borrowers.
Cash-out Refinancing
When homeowners refinance a home, taking out a new loan at a higher value and receiving the difference in equity, this is known as cashing out. It is an excellent way to pay off a large debt immediately with the money received or to pay for another large-scale and current expense. This is because interest rates on home loans are typically lower than for credit cards or other types of debt. Chemical Bank offers cash-out refinancing as a feature of some of its specialized loan products, such as VA loans.
Chemical Bank Customer Experience
Chemical Bank offers an online qualification form for mortgages, whether they are seeking the loan with or without a mortgage loan offer. The bank also has financial literacy programs available. Some of the special loans offered through the bank have online APR rates listed while acknowledging that the actual rates offered will be based on the credit scores of the borrower in question.
The bank does offer free pre-qualification processes to determine how much a person is eligible to borrow, as well as free mortgage consultations. There is information about all of the many loan types offered by the bank, including specialized programs such as the Heart and Home Program, which is aimed at individuals in the city of Detroit and provides assistance with closing costs. As the bank does not list its average closing time, it’s unclear how it compares to Ellie Mae’s national average of 44 days.
Unlike some other financial institutions, the online features offered by Chemical Bank don’t include loan rate calculators for its mortgage products, though consumer and auto loans are explained in greater detail. Speaking with loan officers directly appears to be the primary way to receive comprehensive information.
Chemical Bank Lender Reputation
The Better Business Bureau in Michigan, reviewing the headquarters location of Chemical Bank, has not registered any consumer reviews for the institution. Therefore, there is no average user score available for the bank. While Chemical Bank has a BBB rating of A+ based on its responses to consumers, it should be noted that the organization does not accredit the bank.
There have been four registered consumer complaints against the bank, with three answered and one resolved. These are mainly related to Chemical Bank’s consumer checking products instead of its mortgages and home loans. It is difficult to ascertain the general customer attitude toward the institution with such a small group of reviews, many fewer than are typically available for larger banks.
Mortgage Qualifications
Qualifying for a loan from Chemical Bank depends on the kind of product in question. The bank offers a variety of financial products, including multiple versions specifically designed for individuals who do not meet the standard mortgage qualification requirements like credit score. Due to the lack of information publicly available on the loan products, it’s clear that potential borrowers will have to speak directly to representatives for more details.
|
Income and debt-to-income requirements |
Down payment requirement |
Gift funds available? |
Minimum FICO credit score |
|
None specified |
None specified |
Unspecified |
Depends on loan type (none for VA loans) |
Chemical Bank Phone Number & Additional Details
- Homepage URL: https://www.chemicalbank.com/
- Company Phone: (800) 867-9757
- Headquarters Address: 2185 3 Mile Rd NW, Grand Rapids, MI, 49544
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Failure
I fail all the time.
I spend money on things I shouldn’t. I’ll see something at Target or on Amazon and buy it without giving it any sort of reflection. I’ll forget my grocery list, go to the store anyway, manage to get most of what was on the list, but buy a bunch of unintended stuff, too.
I’m not as organized as I’d like to be. I have lots of bins and boxes with random things in them. I can usually find something that I need when I need it, but it looks chaotic and no one else can make heads or tails of it.
I don’t exercise as much as I aim to. I actually don’t mind exercise when I get going, but I often fail to motivate myself to get started.
I don’t eat perfectly. I can resist sweets, but not savory snacks. I often eat more than I should when I like the taste of a meal.
I don’t stick to my goals. I usually set too many of them and find myself falling short of a lot of them.
I spend time on things I shouldn’t and don’t spend enough time on things I should. I manage to follow my own to-do list pretty well, but I flounder without some sort of directive to follow.
I’m often extremely hard on myself and prone to driving myself into melancholy for things that really aren’t a big deal.
I’m often awkward in social situations. I get nervous and either stop speaking or stumble all over my words.
I fail. I failed at several things today and I’m likely to fail at several things tomorrow.
Even given all of that, I am not a failure.
A failure is someone who accepts those mistakes and little failures and decides that those define who they are. A failure would look at that list and decide: I am those failures, they are who I am, and that’s who I will always be.
A failure is a person who decides that they can’t be any better than they already are. A failure decides that their little mistakes are fine because that’s who they are. A failure accepts bad results because they don’t believe they can do any better or deserve any better.
I am not a failure. I am merely a person who fails and makes mistakes. Yet those failures and mistakes don’t define me. Rather, they tell me where I can improve. That sense of failure isn’t a reminder that I’m broken, but where I need to work.
When I spend money on things I shouldn’t, that doesn’t mean I’m a failure with money. It means I need to take a look at my spending habits. Why did I buy that game I didn’t really need that exceeded my hobby budget? Why did I even want it to begin with? Why didn’t I have a better grip on my hobby spending? It’s time to rethink my hobbies a little bit and get a better system in place for my hobby spending.
Why did I go shopping without a grocery list? Something’s off with my routines for grocery shopping, so what can I do better next time?
When I notice my chaotic bins and baskets, that doesn’t mean I’m a failure at organization. It means that I need to reflect on my methods of storage and whether I can do it better. Do I really need all of these things? Is there a better way to arrange them? Is there a better system so that I can keep the stuff I need and find it easily without having it look like a chaotic looking mess? Again, it’s time to look at how I do these things and find some better routines.
When I’m unhappy with my fitness, that doesn’t mean I’m a failure at my personal health. It means that I need to figure out some new approaches to fitness. What exercises do I actually enjoy? How can I motivate myself better when it comes time to actually choose to exercise? How can I build a good routine so that it all comes naturally?
Those kinds of questions are my response to something I’m unhappy with in my life or some area of my life in which I failed.
I am not a failure. I am a person who failed at something, and failing is okay as long as it is not paired with giving up and no longer trying to be better. Failure is okay as long as it is followed with picking myself up, asking what I did wrong, and genuinely trying to go back and do it better the next time.
No matter how badly I fail at something, it’s not the end of the story. No matter how badly I flopped, there’s always tomorrow.
Tomorrow is another opportunity to succeed. Another opportunity to do it right.
Each day is a blank slate upon which I can be the best person I can possibly be. I will fall short of that, without a doubt, but I aim for it every day.
I try to make each day my masterpiece, to make it my Picasso. Of course, many days often turns out looking like an abstract attempt at a Bob Ross painting, but it’s something, and hopefully it’s a little better than my average day.
And then the next day, I get up and try to make that day my masterpiece once again.
The thing is, I will always fall short of that perfect day. I know this. I will always mess something up in some aspect of my life because I am not a perfect person.
Instead, what matters most is the journey and the effort along the way. Did I put in genuine effort toward improving in the areas I want to improve in? That matters more than anything else. With that genuine effort comes slow and steady improvement, even if it doesn’t mean immediate and endless success.
Am I putting forth genuine effort every single day to be better at the things that matter to me, and am I learning from what fails and what succeeds? If so, I’m not a failure. I don’t need to be the best. I just need to work at it consistently, day in and day out. It’s only when I stop working and accept my shortcomings that I truly become a failure.
Furthermore, not being the best at something doesn’t mean failure. I don’t need to be the fourth degree black belt at my taekwondo school who can break three boards back to back with a single jump kick, but what I need to be is a little crisper on my forms than I was a month ago. I don’t need to be absolutely perfect in how I spend every dime of my money and every moment of my time, but what I need to be is a little less wasteful than I was a year ago.
Every day, I try to do better. Every day, I try to put forth the effort. Every day, I try to paint my masterpiece.
I fail. I fail often.
But I am not a failure.
Are you going to fail at something today? Sure. Every person alive is probably going to fail at something today. They’re going to spend money in a wasteful way. They’re going to not respond appropriately in a social situation. They’re going to eat something really unhealthy for supper. They’re going to yell at their kid because they couldn’t control their emotions. They’re going to leave a friend in the lurch. They’re going to fail, they’re going to regret it, and they’re going to feel bad.
Are you going to be a failure? That’s up to you. Are you going to recognize that failure? Are you going to figure out what went wrong? Are you going to go back and try again, utilizing what you learned? Are you going to put in the effort to be a little better each day?
Then you’re not a failure, either.
Failure isn’t about results. Often, those are out of your control. It’s about continued effort, even when the results aren’t what you hoped for. It’s that continued effort that gradually produces better and better results and fewer and fewer failures over time.
You choose.
Good luck.
The post Failure appeared first on The Simple Dollar.
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The Beginner’s Guide to HTML
There are nearly 1.7 billion websites worldwide. This number continues to grow each day.
What do all of these sites have in common? In one way or another, they all use some form of HTML. That’s why learning basic HTML is such a useful skill.
Here’s the thing. You can definitely build a website without having to write a line of code. But with that said, once your site is live you should still know how to read and some HTML on your own.
So whether you’re creating a new website, have an existing website, or you just want to learn more about coding, this is guide will serve as the perfect introduction to HTML for you.
Let’s start with the basics. What exactly is HTML?
This acronym stands for Hypertext Markup Language. Basically, it’s the standard format used to create web pages, web applications, and documents. This computer language is a series of code that is typically written in a text file and then saved as HTML. When viewed on a web browser, this code translates to a properly formatted blend of text and other media.
HTML is behind every web page you see online, including this page that you’re reading right now.
Understanding hypertext and markup language
As I’ve already mentioned, HTML stands for hypertext markup language. But those words don’t mean much to most people, so I want to break them down even further so you can fully understand the definition.
The word hypertext dates back more than 50 years. It was invented to describe links in a document that make it possible for a viewer to jump to another place in the document or to a completely new document. This is something that we see and use every day in the modern Internet.
Here’s a visual representation of what hypertext looks like.
I’m sure you’re familiar with hyperlinks, which is a form of hypertext.
As you browse online, you’ll see either http:// or https:// before every web page in your web browser. This stands for hypertext transfer protocol.
Markup language refers to how documents and web pages are displayed. You see words that are bold, italic, or larger on a page. But behind the scenes, the markup language is the reason why certain components appear differently on a page.
Markups are characterized by tags and attributes. Most of the time these tags come in pairs. There are start tags and end tags, which are also known as opening tags and closing tags.
When to use HTML
HTML is the default language for all websites on the Internet. But it’s also used for various types of documents, such as ebooks.
When an HTML document gets rendered by a web browser, all of the markup language and tags are hidden. The display automatically gets changed to display a reader-friendly version of the document (what you’re seeing right now).
Do you need to learn HTML to create a website?
The short answer is no. Unless you’re planning to build pages from scratch and pursue web development, you won’t necessarily need to know every single component of HTML.
You can probably get away without knowing HTML if you’re using a CMS, website builder, or blogging platform. For example, if you’re using WordPress as your blogging CMS, the visual editor automatically translates your text to HTML.
Working in the visual editor will display content similar to a standard email message or Microsoft Word document.
With that said, there are times when visual editors don’t always work the way you want to. You might find yourself in a situation where you want to format something a certain way and it’s not getting displayed properly.
Furthermore, your HTML also needs to be optimized for non-human readers. Search engine bots are crawling your website for indexing purposes. The way that your HTML gets read will have an impact on your SEO.
Website accessibility also needs to be taken into consideration. Computers can translate web pages into sound for people with disabilities. They rely on the structure and quality of HTML for this.
While the platforms on the market today make it possible to operate a website without knowing HTML, it’s still in your best interest to learn the basics.
Choosing your HTML editor
For those of you who are planning to create web pages using HTML, you’ll need to use an HTML editor.
These editors are the best way to organize your code and keep everything clean. Editors are great because they recognize whenever a new tag is opened. These tags are automatically closed by the software, ensuring that your code doesn’t have bugs. This also limits the number of typing and keystrokes you have to make.
The best HTML editors let you preview your HTML to see how the content will look from a web browser. There are tons of options online. But I’ve narrowed down a handful of the top HTML editors for you to consider.
You can also practice HTML with this free tool from W3Schools. That’s what I’m going to use to show you examples of HTML as we continue.
HTML basics
Before you start writing HTML, you need to understand the three main components.
- Tags
- Attributes
- Elements
These can be described as the building blocks or foundation of HTML. Once you learn what these are and how they work, it will be easier for you to move forward. I’ll go into greater detail on each of these below.
Tags
In short, tags are used to distinguish HTML code from normal text. The way your document gets displayed will be based on the tag instructions.
Here’s an example. Let’s say you want to make something bold.
The tag for bold is <b>, which is pictured above. This compares to the text above it, which is <p>, or a standard paragraph text.
Once the code is rendered, it’s displayed how we would normally see it on a web page, as you can see from the right side of the screenshot above.
Now let’s say you wanted to make something italicized. The HTML tag would look like this:
Pretty straightforward, right?
All I’m doing is using the tags to change the way the text appears when it’s on a web page.
Take a look at those tags closely. Do you notice a difference between the opening tag and closing tag? The closing tags have a slash, indicating that the italics, bold, or whatever other tag you’re using stops here.
If that example above didn’t have a slash in the closing tag, anything written after it would continue to be italicized.
Hyperlinks are also created with tags. Here’s what the HTML tag would look like if I wanted to hyperlink to the Quick Sprout homepage.
This tag is a little bit more in-depth than the bold and italics examples. But the same concept still applies.
There is an opening tag and closing tag with text in between. The way these tags are written determines what the result will look like on the web page.
Every web page starts with a <!DOCTYPE html>. Then the first line of the file says <html> as well. You can see this on the three examples that I showed you above. This tells browsers how to read the code.
Elements
An HTML element consists of the opening tag, closing tag, and the content in between the two.
So when we were going through different examples of tags, each example was a new element. For example, let’s take a look at some potential lines of HTML.
When you look on the right side of the screen at the page version of this code, you see four total sentences and two paragraphs.
Now, look at the HTML code on the left side of this split screen. You can see how the three different elements are identified.
Elements can be simple, such as the bold example above, or they can be a bit more complex.
The document above starts with an open <body> tag, and also ends with a closed </body> tag. So everything within those two tags can also be considered one element. But within that entire body, there could be dozens, hundreds, or thousands of additional elements, depending on how long and complex your content is.
Attributes
For the most part, tags are used to define how content is displayed in HTML. But with that said, there are times when additional information within an element needs to be added.
In these instances, you would use an attribute to define a specific characteristic of the element in question. Attributes consist of two things:
- Name
- Value
They are placed inside the start tag of an element. Here’s an example to show you what I mean.
The attribute used here is align=”center” and it falls within the <p> opening tag. It means that whatever text comes before the closing </p> tag will have a specific characteristic defined by the attribution.
In this case, the attribute said to center the text.
We saw another example of this earlier when I created a hyperlink for the Quick Sprout home page.
Beginner HTML cheat sheet
There are thousands of different ways you can write content in HTML. But if you’re just starting out with, there’s no reason for you to learn all of them right away.
Instead, I’ll show you some basic HTML tags and explain what they’re used for. Then you can practice applying them in an HTML editor.
Heading tags
<head> … </head>
These tags are used to showcase specific information on pages such as title tags and meta tags. Proper use of heading tags can increase your search engine traffic.
Title tags
<title> … </title>
Your title will appear within the header of the page. It will give search engine crawlers more information about the primary content of a particular page.
Paragraph tags
<p> … </p>
You’ve seen these throughout the examples that I showed you above. They denote a new paragraph of text.
Hyperlinks
<a href=”link”> … </a>
This tag and attribute is used to display the anchor text for hyperlinks. The full link would be written in between the quotation marks.
Images
<img />
Image tags are used to present image files on the page.
Tables
<table> … </table>
This tag contains all of the information related to content in a table. It also identifies content as a table.
Footers
<footer> … </footer>
Anything in between these tags would be in the footer block of a page.
Conclusion
Every website uses HTML. So if you’re building a website or currently manage a website, it’s in your best interest to know what’s going on behind the scenes of your web pages.
I’m not suggesting that you should go out and start building pages from scratch without any experience as a developer. There’s really no reason for that.
But you should have a basic understanding of what HTML is, how it works, and where to edit it on your website.
Here’s what I suggest. Use one of the HTML editors that I showed you earlier to practice your basic coding skills. Then just go through and try to replicate some of the examples that I covered in this beginner guide.
That’s the best way to get your feet wet with HTML if you don’t have any experience with it.
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ESL Mortgage Rates Review
ESL Federal Credit Union was founded in 1920 as Eastman Savings and Loan in Rochester, New York, by George Eastman, a 20th-century philanthropist and entrepreneur. Eastman was one of the inventors and businessmen behind Eastman Kodak Company, which later grew to be one of the world’s biggest corporations.
ESL initially only served Eastman Kodak Company employees; a primary purpose behind starting the financial institution was making home buying possible for employees. Over time, the membership grew to include others living in the Rochester area.
ESL’s loans span a wide variety of different mortgage options including fixed- and adjustable-rate loans, FHA, Jumbo, Investment, Home Possible, First Home Club, Home One, and Home Equity Financing Combination loans. In this review, we will discuss how ESL is rated, as well as how they compare to other top mortgage lenders.
ESL Mortgage Highlights
- Fixed and adjustable-rate, FHA, Jumbo, and other mortgage options available
- Many different alternative loan options available for home buyers with limited credit, credit challenges, and difficulty qualifying for traditional loans
- Jumbo loans available for purchasing homes in high-value real estate markets
- First-time homebuyer options
- 45-day rate lock allowing borrowers time to shop for a home
- Some loan options don’t require private mortgage insurance (PMI)
- States serviced: Located in New York State, ESL’s focus is the Rochester, New York, area. Loans are available for purchasing homes in the Genesee, Livingston, Monroe, Ontario, Orleans, Seneca, Steuben, Wayne, Wyoming, and Yates counties.
History of ESL Federal Credit Union
Entrepreneur and philanthropist George Eastman founded ESL Federal Credit Union in 1920 as Eastman Savings and Loan, a financial institution for employees of Eastman Kodak Company. ESL was intended initially as a financial resource for workers who wanted to purchase a home, build savings, and safely set aside their money for a rainy day. Three thousand five hundred employees signed up to be members during the first week of ESL’s existence. In 1996, Eastman Savings and Loan became ESL Federal Credit Union. Shortly after, membership was opened to others than Kodak employees and their families, and Rochester area residents could now join. As one of the largest credit unions in the State of New York, ESL has $6 billion in assets and ranks in the top one percent of credit unions in the US by size. ESL offers a variety of different loans including fixed- and adjustable-rate mortgages, FHA, Jumbo, First Home Club, and others.
ESL does not currently have a Trustpilot score. The credit union’s BBB rating is A+ with customer reviews averaging 2/5 stars.
Loans Offered by ESL
ESL’s product offering includes the following:
Fixed-Rate Loans
ESL offers fixed-rate loans that help borrowers lock in a low rate for the life of the loan. Monthly payments stay the same until the loan is completely repaid, making this an excellent option for borrowers who want a consistent payment amount and plan to keep their home for several years. ESL offers 10-, 15-, and 30-year fixed-rate mortgages. Credit, income, asset, and other requirements vary.
Adjustable-Rate Loans
Loans with adjustable rates start with a single rate that is typically low during the initial fixed period, but market conditions can increase the mortgage rate and result in a higher monthly payment, once the adjustable term kicks in. The payment could also decrease, though, if mortgage rates go down over time. Borrowers should know that monthly payments may be different from what they originally expected. Adjustable-rate mortgages may be a good option for applicants who plan to sell or refinance soon after purchase.
FHA Mortgage Loans
Federal Housing Administration (FHA) loans from ESL are government-backed and offer more affordable financing with low monthly payments and low down payments. Applicants who are qualified may only need to put 3.5 percent down to purchase a home.
Jumbo Loans
Designed for home buying in high-value markets, jumbo loans are for applicants who need large loans, generally greater than $450,000 total loans.
Combination Loans
Borrowers can obtain two different types of financing that can be used together to fund a home purchase. With a mortgage and a separate home equity loan, buyers can qualify for a more expensive property or get cash while purchasing a home. This could be a good option for applicants who are buying in a high-value area or need to fund a significant remodel to the property.
Investment Property Loans
Borrowers looking to purchase a rental or other investment property may benefit from an ESL investment property loan. 15-year fixed-rate mortgages and balloon payment loans are available. A minimum down payment is required, and applicants must meet ESL’s qualifications to obtain the loan.
First Home Club Loans
Applicants who are first-time home buyers may be eligible for this mortgage program that offers a grant towards closing costs and down payments. The program accepts a limited number of participants every year, so borrowers will have to meet its somewhat stricter eligibility requirements. Over a ten-month period, borrowers make regular deposits that are then matched by grant funds and can be used towards a home purchase. A homeownership education class is required as part of the program.
Home One Loans
This is a loan option designed to make homeownership more affordable and available for borrowers. Special options for obtaining a down payment are allowed, such as using cash gifts from friends and family. One of the qualifications for the program is taking a homebuyer education course.
Home Possible Loans
Credit history requirements for this loan product are flexible, and loans are available for borrowers with non-traditional qualifications. A homebuyer education course may be required.
ESL Mortgage Customer Experience
The credit union has many different mortgage products available and fairly extensive loan information on its website for applicants who want to learn more about home loans and refinance. Borrowers can apply for a loan by visiting the ESL site, contacting a loan officer, or visiting a branch. Applicants can view rates online, use a financial calculator to get estimates, and learn on the ESL website about various loan options. To get a full quote, applicants may have to share personal information about their identity and credit history.
To get started, applicants should schedule an in-person appointment, call the credit union, or begin an application for a loan online.
ESL has limited reviews online, but the information that does appear is generally positive. The Small Business Administration ranked ESL the top Rochester-area lender for small businesses in 2018. Making the 2018 list, the lender was also ranked fourth in the Best Workplaces in Financial Services and Insurance list prepared by the Great Place to Work Institute.
Documentation for mortgage loan applications is required, which is typical. Applicants must demonstrate that they can afford the monthly payments and repay the loan with a low risk of default. To prove this, they may be required to submit bank statements, W2 forms, tax returns from previous years, pay stubs, asset documentation, and other evidence. Requirements and credit standards do vary by the type of loan at ESL. Mortgage officers try to work with applicants to determine their ability to repay.
The Reputation of Eastman Savings & Loan
Generally, the information that is available about ESL appears to be positive. The Small Business Administration ranked ESL Federal Credit Union as the top Rochester-area lender for small businesses in 2018. Making the 2018 list, the credit union also ranked fourth in the Best Workplaces in Financial Services and Insurance list prepared by the Great Place to Work Institute.
Currently, ESL does not have a Trustpilot score. The credit union’s BBB rating is A+ with customer reviews averaging 2/5 stars.
*Information collected December 11, 2018.
Mortgage Qualifications
The chart below illustrates how credit score plays a role in determining the approval of an applicant.
|
Credit Score |
Quality |
Ease of approval |
|
760+ |
Excellent |
Easy |
|
700-759 |
Good |
Somewhat easy |
|
621-699 |
Fair |
Moderate |
|
620 and below |
Poor |
Difficult |
|
N/A |
No credit score |
Difficult |
For borrowers with credit scores of 760 or higher, getting a mortgage loan offer and having multiple available options should be reasonably easy. Applicants with scores in the 700 to 759 range may not necessarily qualify for the most favorable loan options, although they are likely to have at least a few different choices. Borrowers with “fair” credit may want to consider applying for alternative loan programs at ESL and may have limited opportunities. Getting a mortgage at ESL may be tough for applicants with low credit scores or no credit history.
To get the best mortgage options and qualify for the most offers, borrowers should bring in sufficient documentation of their assets and income for loan officers to review.
Debt to Income Requirements
ESL typically offers the best loan terms to applicants with debt-to-income (DTI) ratios that are 35 percent or less. While applying with higher DTIs, borrowers should consider asking about ESL’s alternative and government loan programs, to qualify for the best available offers.
|
Debt-to-income ratio |
Quality |
Likelihood to get approved by lender |
|
35% or less |
Manageable |
Likely |
|
36-49% |
Needs improvement |
Possible |
|
50% or more |
Poor |
Unlikely |
Phone Number & Additional Details
Homepage URL: https://www.esl.org/
Company Phone: 1-800-848-2265
Headquarters Address: 225 Chestnut Street, Rochester, NY 14604
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"Think twice before telling a builder they were recommended": Lessons we learned during our big building project
We’ve been talking about what we’d like to do to our three-bedroom semi in St Albans since we first viewed it 10 years ago, writes Rachel Lacey. Progress has been slow, but this year we finally began work on our big building project…
Unsurprisingly, money has been the chief hurdle – builders’ quotes, it seems, rise even faster than St Albans house prices. But it’s not just the worry about the cost. I’ve also been daunted by the enormity of the job. As one builder put it, it would be cheaper to knock the house down and start again.
Although our house wasn’t small the layout of it wasn’t great. Both my husband and I regularly work from home so we each need a decent work space.
Our two boys, aged seven and 10, are also getting to the point where they need their own rooms (our third bedroom is an office). So, as well as redesigning the downstairs to create an open-plan kitchen and dining space and adding a utility room (is it a sign of middle age the latter is one of the bits
I’m most excited about?), we’re adding a new office and another bedroom upstairs.
It means we will have ample space to work, the boys will have their own rooms and we’ll be able to offer guests a proper bed rather than pulling out the saggy sofa bed in the lounge.
Having witnessed the stresses of friends doing similar jobs we did consider moving but the money we’d need to get a similar spec house, in the same area, was just too much (and I really didn’t fancy paying that much stamp duty).
So, after lots of talk and no action we finally decided to bite the bullet last January. But irritatingly, after having spent so much time dawdling, I wasn’t prepared for how long it would take to get our project going.
First base: find an architect
Job one was to find an architect. I had a handful of recommendations – frustratingly, though, many didn’t return my calls. This, it seems, was a warning sign of things to come. Literally nothing was going to happen fast.
We ended up seeing two, both of whom weren’t able to meet us for a few weeks and who warned us that it could be as long as two months before they could actually crack on with the work.
I wasn’t entirely sure what to expect when we finally met. Grand plans? Creative inspiration? Maybe I’ve been watching too many property shows, but the reality was much more mundane.
I quickly realised they weren’t going to suggest any real ideas until they were hired and had completed the survey.
And you can’t hire them based on their drawings (unless you have a bottomless budget) so we just had to go on our hunch of which we thought would do the best job. It ended up being the one that pointed out all the potential problems (like the one posed by the roots of the huge leylandii running down the length of our garden). Everything he said made sense and we figured that, in theory, meant fewer surprises later.
A few weeks after this he came back with four or five options. It was a tough balancing act creating enough space for a workable office upstairs along with a third bedroom that was big enough to fit in a double bed (for visiting grandparents) but didn’t leave a fourth bedroom so small one of the boys felt they were sleeping in a shoe box. With a bit of tinkering our architect made it work.
Stage two was planning permission, which needed to be obtained from our local council. Our architect submitted the plan and then it was just a waiting game. A very long waiting game. By now it was already the end of May, and although we’d been advised planning decisions should be made within eight weeks, staffing issues meant we didn’t actually get ours until mid-August. (I’ll always remember taking the call from a planning officer while sitting in a pedalo with the kids in torrential rain.) On the plus side, it was at least passed first time.
I was itching to get on the phone to builders but our architect told us there was no point – until we had detailed construction plans (including the structural design for steels and foundations) they just wouldn’t quote, he said.
Thankfully, the next stage wasn’t nearly as long and a few weeks later, with the summer holidays behind us we had everything we needed, and the building regulation application was put in.
Party wall agreements
If you are building along a party wall or digging foundations within a certain distance of your neighbours you will need a party wall agreement to protect you both in case of any disputes. To do this you need to serve notice on your neighbours (one or two months ahead of the work, depending on the situation). You can download helpful template letters from the government at https://www.gov.uk/guidance/party-wall-etc-act-1996-guidance. Your neighbours have the choice of either accepting your agreement informally or instructing a surveyor to carry out a full schedule of the condition of the property and issue an ‘award’. We had to do this with one neighbour at a cost of £1,200 – it’s an expense we didn’t need but given we are building on their boundary I think we would have done the same if the shoe was on the other foot.
Quotes start trickling in
Nine months after we had embarked on this journey, we could finally start having proper conversations with builders.
Some came to our house to talk through the plans, others just asked for email copies of our drawings. Some did quotes themselves, others sent them off to ‘estimators’ to do the job for them. Some got back to us, others didn’t.
We’d been warned we’d need to go out to a lot of builders – whether it was due to timescales or workloads, many just weren’t interested in the job. In the end we spoke to around 10 and got quotes from five. I would also argue that some of those that did quote didn’t really want the job, either that or their pricing was very optimistic.
I really did need a big glass of wine in hand to cope with the shock of some of them.
Unfortunately the builder we had in mind gave us our highest quote. He had done an amazing job for our friends, had been a pleasure to deal with but was also their cheapest quote.
Given another local friend got a pretty steep quote from him at the same time too, I now wonder whether friends' recommendations can be something of a false economy with builders. Obviously you want to know they will do the job well, but once a builder has done a few jobs in the same neighbourhood and knows customers are singing their praises, its perhaps only human nature to increase their prices. Another time I might tell the builder I found them on Google.
Edward Lacey, 7, checks progress on the new extension.
Right builder for the job
Even among our remaining quotes it was difficult working out which would offer best value. Some quotes were fully itemised and ran to pages while others were much more scant. One was literally just a number. Some included doors, estimations for windows, and decorating. No single quote included everything and that was before we even considered open-ended costs like kitchens, bathroom and flooring.
Then there was the sheer horror of VAT – 20% on top of everything. EVERYTHING.
It meant lots of calls clarifying details among our contenders and a detailed spreadsheet. Eventually we settled on a firm that we had come across when they were doing an almost identical job further down our road.
After the house was finished I had door-stepped the owners and had a good nose at the work and grilled them on their builders. Did they stick to budget? Did they finish on time? Were they happy with the work? What were they like to deal with? And, a big one for us, how did they manage relations with neighbours?
The owners were very happy and given the similarities between the projects, they seemed like the best team for the job.
After hearing scare stories about some people waiting a year for a builder, I was relieved that they could start in February. OK, it meant more waiting, but the fact they were in demand provided another level of reassurance.
Two days after moving out, our kitchen is empty and the ceiling has come down
Stumping up the money
As much as I wanted to crack on with the work, I was also conscious there was a lot to do and I’m glad we had those three months to get ourselves into gear. Now we had a firmer idea of costs it was time to work out how we’d stump up the money. Although we had some savings we didn’t have nearly enough and we needed to raise some money by remortgaging.The thought filled me with dread. Affordability rules have changed since we last took out a mortgage and I knew our spending would come under the microscope.
But I contacted a broker and the process was relatively painless. He suggested we move off the Santander tracker we’ve been on for years and remortgage onto a five-year fix with Halifax. Our tracker has been brilliant for us during a time of rock-bottom interest rates, but given the outlook is anything but certain, fixing and for a lengthy period seemed a more comfortable option.
During those months there was no end of sorting out to do as well. The aforementioned leylandii needed to be removed and there was our imminent move.
As much as I would have liked to live in the house during the works, every builder we mentioned it to looked at us like we were bonkers, and we begrudgingly decided to move out. (Five weeks into our build I’m writing this from a rental house round the corner; judging by the current state of our house – no kitchen, no bathroom and just one working loo for the builders – it was definitely the right call.)
This meant the house had to be virtually emptied: our local charity shops are stuffed to bursting and we made countless tip runs.
The one big chore that we very nearly missed, however, was sorting out party wall agreements. Christmas was now just around the corner and it was the last thing I wanted to do, but it was a good job I got on to it before it was too late. A party wall agreement (see box above) is essentially a document agreeing certain things with your neighbours before the building work begins, covering aspects like builders’ working hours and a schedule of condition for their property.
But time limits apply and in some cases you do need to give your neighbours as much as two months’ notice before work starts.
Blessed with good neighbours ours was relatively straightforward: the owners of the house we're adjoined to exercised their right to get a surveyor to do the work (a bill we had to pay), but our other neighbours signed a document we prepared informally.
We still cut it close to the bone though – only getting our second agreement through within days of the builders arriving.
The relief was enormous. At last, after 13 months, we were finally ready to get going.
Edward and his big brother William, 10, inspect the gaping hole where half their home used to be
Things I’ve learnt so far…
- My local Facebook renovations page has been a godsend. Aside from nosing at what other people are doing it’s been fantastic for getting help, ideas and recommendations for tradespeople. If there isn’t one in your area, set one up!
- Keep an eye out for builders doing similar jobs locally.
- If a builder has been recommended by friends, think twice before telling them someone has been singing their praises. Let them fight to win your job with a great quote.
- Make a spreadsheet to compare quotes and make sure you know exactly what is and isn’t included. Builders won’t include costs like kitchens, bathrooms and flooring. Decorating will only be included if you specifically ask them to factor it in.
- If you have to remortgage, consider borrowing more than you need as a contingency. It will be much harder to go back and borrow more if you need to. Of course, only do this if you can afford repayments and you’ll need to have the discipline to pay any surplus back (and, note to self, not blow the lot on a designer sofa).
- Even if you’re not borrowing much, remortgage before work starts. If your home doesn’t have a fully functional kitchen or bathroom when it is valued you may struggle, even if the money you are borrowing is paying for new ones.
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