Is CREDIT REPAIR Worth It When Buying A House?  | Financial Independence | Financial Q&A
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Is CREDIT REPAIR Worth It When Buying A House? | Financial Independence | Financial Q&A


hey friends we’re gonna freedom in a
budget I’m Kelly and it is dumping that Friday time where I answer your
questions we’re going to dig into some really really good question to y’all are
keeping me on my toes I love them so please leave your questions down below
in the comments also if you haven’t money win I would love to celebrate that
with you I love me some money win so we’re actually getting to the point now
where we’re getting more money wins than we are questions which is really cool
and exciting and I love celebrating with you guys but also give me some questions
I need some questions for some more upcoming videos so please leave your
questions down below alright let’s get into it first one is from oh my eyesight
Dalton’s friends would yeah Dalton’s friends would it’s they said carries you
know say you went to register for your second school and they had an in-state
and out-of-state prices doesn’t that’s for you to find out what their requires
meant to our for insight when it’s so much less out-of-state you mentioned the
video someone it should have told you but isn’t it your own responsibility to
find out especially with the internet at your fingertips wondering how we can
educate young people into taking the initiative into finding out this
information on their own great video this is a really really good question
you all kind of called me out in it but that is totally okay so this is talking
about when I was talking about college and I paid a premium to go to
out-of-state tuition and no one had told me that if I just live in Florida for
six months then I can pay in-state tuition and save thousands of dollars so
much money and so they’re saying that you know why didn’t you research that
didn’t that spur anything well honestly I didn’t know until after I was already
in school and after I had graduated that that was a thing and it was you know
kind of like a seriously now you say that you know I didn’t have anyone to
help me or anything like that and I should have researched it and honestly
you know this is an excuse but I was 18 and I didn’t you know the internet back
then was not the Internet today yes you could do research and different things
like that but it wasn’t like so you have a question just google it it wasn’t like
that back then and I didn’t have any family my mom
passed away at 16 my you know so I was going at this alone my dad had no clue
about any of this type of stuff so I I didn’t have any family members to teach
me and you know this is one of the reasons why I make videos like this I
hope that you know these types of videos can get out to some high school students
and you know YouTube today is not what it was back then I don’t think you to I
I think YouTube was around them but I don’t
it certainly wasn’t what it is today and you know the teenagers watching it so I
love for more teenagers to be watching videos like this watching channels like
the final so wolf will is amazing at teaching high schoolers how to make
money and how to deal with some of those those tough questions and it’s so cool
to see those younger people reaching out to high schoolers and teaching them hey
this is something that’s really important that you need to you know
learn about watch out for and I I think is really important to just educate you
know this generation coming up and so I hope that a lot of my videos you know do
go out there I do see that some of my stats that I do have you know some
people in the 13 to 17 year age range watching my videos which is so exciting
and I love it so I hope that you know I can help pass on some of this knowledge
to the next generation next question is from a message on Instagram and they
said hi I have a question for dumbing down Friday video I’m a teacher it must
pay into teachers requirement system the mandatory percent for my tier is 6
percent which comes straight out of my check for baby step 4 do I count that
contributed contribution as part of the 15% leaving me nine percent to invest or
do I come to a completely separate 15 percent in Roth IRA Roth for three big
contributions so I would country I would include the six percent in your 15
percent now that doesn’t mean you have to stop at 15 percent we don’t we invest
probably 20 to 22 percent of our income into our retirement so that doesn’t mean
you have to you know stop right at 15 percent but I would include that in the
15 percent but that does not include any company match so say you have six
percent and like my company they do 50 percent match so if I
contribute up to 6% so if I do 6% my own money they will contribute up
to 3% so 50% of 6% to my retirement so I don’t count that 3% so it doesn’t go up
to 9% it still stays at the 6% so I hope that makes sense but yes do some Roth
IRAs Roth 4b do you know do some different things do some Vanguard do
Robin Hood and one finance whatever you can do to up that retirement a little
bit great question next question is from Arthur DIA and she says congratulations
on getting the house could you talk about the type of loan va loan you went
would that allow you to get a lower down payment with no PMI I’m trying to
compare what you did to a doctor’s loan they have no PMI and many actually don’t
even require down payment based on your credit score not that I think it’s your
percent down is a good idea but the doctors loan are very happy to have only
5 or 10% down also did not using credit cards affect your credit score Dave
always talks about how credit score is dumb but it seems like unless you or
like him and just pay 100% cash for a house that having a decent credit score
is needed this is a loaded question so we actually we wanted to go with navy
federal for our loan because we do have family in the military so I do have a
Navy federal savings account and we were really excited to go with them for a
mortgage but it turned out it was actually more expensive than going
through a local mortgage mortgage broker so we found a mortgage broker through a
realtor that our realtor has worked with for over 20 years and she was so such a
blessing and we actually have become close and she’s amazing absolutely
amazing she’s a Christian I trust her and it’s just so cool of like how God
was in it all so cool but we are doing only 10% down we’re not doing 20% down
and I’m going to get into this in a video later on so stay tuned for that
and we are going to be paying PMI so I think that our PMI I think she how could
it being 83 dollars a month honestly we did the math in the 83
dollars a month that we’re paying in PMI we’re still saving more money in equity
with rent and all of that stuff so you know it is something that we discussed
and if we were to save up the full 20 percent we would be in the apartment for
another year so it’s not worth it for us we’d rather just pay the PMI and then
within probably within a year year and a half it’ll get taken off so that is you
know really exciting that we’ll be able to get that PMI taken care of but it is
something that we had to decide and you know we’re I’m sure we’re gonna get some
slack on this but it is what it is now for credit score and dun dun dun we did
realize that credit score did affect us a lot and actually my credit so when you
look at the credit score brackets and how they work and they’re you know
broken into different categories one of the lines is 740 I think it is yeah 740
and my credit because I’m debt-free when I became debt free and paid up all my
student loans that my credit score dropped drastically because I had no
debt so after that then we started introducing credit cards and different
things like that and just paying them off every month so that was to help
rebuild our credit and also to get the rewards and the points and everything
like that so when we started the mortgage process our credit myrrh Micra
Jamie’s credit was like 744 my credit was 739 so one point below on that meter
and that made a huge difference in our loan options it was crazy and you know
how much our loan payment would be and all of that the interest score it’s
crazy how much it made a difference in our mortgage so we actually did a credit
repair and so our mortgage broker hired someone I think she paid like two
hundred dollars and he did a calculation with all of our all of my you know
credit cards and open things like that and he said okay pay this one off in
full and this one leave the balance at five dollars
send me an updated thing they’ve rewritten the credit score and it
brought it up to 741 so the I was up in that next bracket but it’s
crazy how much your credit score really does affect you and like you said unless
you’re paying a hundred percent cash for a house unless you know like wheat we
paid a hundred percent cash for my Jeep so that did not affect my credit score
on what that was and the interest rate on that loan it didn’t have any effect
on it whatsoever because we paid a hundred percent cash but with this house
it affected it and you know I hate to say that but you know credit scores do
sometimes have an effect on our on our mortgages and different things like that
next question is from Marissa Alexander and she says these are all ideas I’ve
never considered about hearing heard about in other videos gave me lots of
think done we’re hopefully only one and a half years away from starting the
buying process so it’s helpful to start planning now but not get too ahead of
ourselves can you clarify what you mean by have all our cash ready what did you
save up downpayment other phones how long did that take you so this is
talking about the video on home buying tips and everything you need to know
when you are buying a house and searching for the houses and all of that
process and I made a comment to that my one of my tips was to make sure you have
all the cash ready before you’re ready to start seriously looking for a house
and what I meant by that is when you’re saving up for a down payment and
different things like that you want to make sure that you have whatever your
down payment is gonna be make sure you have that saved up in full so we are
putting down $37,000 so we made sure that we had that thirty seven thousand
ready before we started looking or that we know that in the next couple months
we’ll be able to do it but we didn’t start looking when we only had twenty
thousand dollars saved and was like another six months out because what
happens if you fall in love with their dream house or what if you find your
perfect house and then you’re out of luck by the time that you have that
money stays the house will be off the market so you want to make sure they
have all of that ready to go before you start looking and what was the other
part how long did it take you so we started saving for our house pretty much
right when we got married we started putting about just so I think was like
five hundred it’s a month away so that was November
2017 but in that timeframe we were really really hardcore saving for a new
car and we paid cash for a we paid $25,000 for my Jeep
so $25,000 of that did get paid so we really really started aggressively
saving for the house in November 2018 so it’s been six seven eight months that we
were really aggressively saving for the house Piper wants to be in the video
alright last question that we got some money wins this one is from it Eunice
Hernandez and she says I might have misses previously do keep each line I’m
on a sinking fund a separate checking savings account we have an emergency
fund that houses eight months of living expenses but we want to grow that this
year but also separate different items we need to say for we are house hunting
currently that’s awesome so if you I keep everything in Capital One 360 that
is an amazing savings account with it’s a high interest savings account so you
can get a little bit money on your return now I keep it all in one account
and then I keep my sinking fund separate in Excel you guys see my budget report
cards where I have that but Capital One 360 they do have an option that you can
have separate accounts separate account numbers everything under the same log in
which is really cool feature that Capital One at 360 has you do want to
sign up with Capital One or check it out I will have an a link it down below in
the description I think it’s if you have 250 dollars and they count when you
transfer it over then you get a $25 bonus which is awesome and so they have
no fees nothing like that they are really really good solid checking
account checking account savings account money market account that $25 bonus
works for any one of those so go check them out they are awesome I’ve been
using them for over three years now and absolutely love them I haven’t monitor
right behind and he is staring at himself in the monitor what you looking
at all right let’s get some money wins first one is from a quest of fire and
she says I paid off a debt this month another one is going
paid off next month I opened I also open a m-1 account we’ll be investing a
little there while I pay off the remaining two debts my car and student
loans I’m halfway through my journey and paying off $90,000 worth of consumer
debt girl I am so proud of you that is amazing absolutely amazing Wow
so cool and if you didn’t know m1 finest is a investing app all right to more
money wins next one is AC and they said hey Kelly so excited to share this money
win with you on the very last day of May my husband and I paid off a final final
payment on our debt my student loans were debt-free holy cow that’s amazing
bez a whooping twenty-one thousand three hundred seventy three dollars in five
cents start out with thirty one thousand five hundred fifty five dollars back in
December wow that’s fast girl I hardly expected that we’d be able to do this so
soon and the reason that we could was my husband recently changed his major to be
more in line with his current job and now has more future stability and peace
of mind with that change we were able to take a huge chunk of savings it and
throw at that dip thanks so much for all you do and fun sharing and celebrating
with you along the way Instagram with you fund a payoff template that is
amazing yes and I do have a template on paying off debt in my Instagram so I’ll
have that link down for a little the way you guys to you can just take a
screenshot of it on Instagram and fill it in so that’s awesome I’m so proud of
you I cannot believe that you’re debt-free congratulations that is
amazing absolutely amazing alright next one is from Sheryl find scene finding
scene is that skin and avian that look Scandinavian
she says that congratulations to all the money winners I paid off one stupid loan
this month so excited and working on the brass Cheryl that is amazing awesome
awesome job pan off those loans that is incredible great great job alright guys
that is my dummy tip Friday questions and money wins ever get to
leave your questions down below in the comments also leave the secret emoji
down below in the comments if you made it to the end of the video here are my
social media handles and blog go check those out if you have not already please
subscribe to my channel and hit that belt notification alright guys I will
talk to later bye you

14 Comments

  • Heat Gat

    I am considering stopping all investments, with the exception of maxing out my 401k and my employer 4%, for the next 7 months in order to pay off our car and bed payment. Do you think that is a bad idea? I generally invest $1860 a month in a brokerage account… but am torn about not investing.

  • Centsible Living With Money Mom

    Off topic, I love your cat. Kelly, how does Dave think people can purchase a home without credit? I put some of my bills on my credit card, but I pay it off every month. Thank you for all your very honest videos.

  • Quest to FIRE

    Absolutely!!! Just because Dave recommends saving 15% for retirement, doesnโ€™t mean you shouldnโ€™t save even more if you can!!!๐Ÿ‘๐Ÿป๐Ÿ‘๐Ÿป๐Ÿ”ฅ๐Ÿ”ฅ๐Ÿ”ฅ๐Ÿ”ฅ

  • Meagan

    ๐Ÿ˜Ž thanks for another amazing video Kelly. I have a money win and question. I recently got an internal promotion with a raise of $5,050 annually. But it is a contract for 8 months covering a mat leave, I will go back to my current job/salary when the person returns. Do you think I should adjust my budget to the new income or save the extra and continue budgeting with my current income? Thanks for another great video!

  • Rachael Lyn

    Oh my goodness, the difference between internet today and just a few years ago is so drastic. Even with the internet at our fingertips, it doesn't mean teens today even have the idea to research different school prices. But thankfully they are more likely to learn because of people like you letting others know there is another way. I love it when Piper steals the show! ๐Ÿ˜Ž

  • Karen Cole

    So, I did some math, 10% downpayment you said, which is 37,000. You mentioned that it takes roughly 6 month to go from 20K in savings to 37K, which would mean saving almost $3K per month.

    That being said, this is where I get into some hypotheticals (this is the second video of yours I've seen). If you can save 3k per month, and we assume that's half your monthly budget (generous, I know) then that means you guys take home 6k per month, or $72k per year. Assuming 30% tax rate and that means your family makes over 100K per year.

    Do you have any tips or advice for people making under $50K while working 70 hours a week?

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