Monthly Archives: April 2021

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4 Steps to Home Buying

Whether you’ve been looking for a while or have just decided to begin the hunt, buying a home is an exciting adventure! With rates so low, it’s the perfect time to become a new homeowner. But do you know some of the things you should be doing before stumbling upon your dream home? We’re here to explain our top four steps to home buying so you can enjoy the journey. 

Know How Much You Can Afford 

Even though you could get a loan for $300,000, this may not mean you want to spend that much on a home. Go through your current debts, what equity you’d get back on your home, your salaries, monthly bills and expenses to know how much money you spend each month. Then calculate what your new mortgage would potentially be (including taxes, insurance and utilities as those may change) to know how much you are comfortable spending each month while allowing room for savings. This will help give you a final number you are truly comfortable spending, so you don’t go over your max when making an offer. 

You will also want to think about closing costs and the down payment. Closing costs are normally around 3% of your loan and it’s nice to try to have a down payment of 10-20%. These are large upfront costs so it’s important to factor them in and begin saving for them. 

Get Pre-Approved 

You may begin your search and think you’re in no rush – but what if you come across the perfect home and there’s already offers that could potentially be coming in? You want to make sure everything is lined up so you can put an offer in right away to get ahead of others. Waiting a whole day to meet with your bank and go over finances could cost you that slot that would get you to owning your dream home. You need to know how much you can actually afford, if you need the sale to be contingent on your home selling and so on. We can help you manage all of this and get you pre-approved for a mortgage. 

Don’t Just Look on Home Sites 

Don’t just wait to see a home on a website like Realtor.com or Zillow. You want to check Facebook and follow realtors there as they may post a home before it becomes live on the site. You can also ask around if anyone is thinking about selling so you can get your foot in the door first before it goes on the market. The same goes for your realtor – if you want to use a realtor, choose one and make sure they are looking for you to alert you to a home that fits your criteria before it may go on market. 

Get a Home Inspection & Appraisal 

After putting in your offer and getting it accepted, be sure to have an inspection. You’ll want to know everything is running smoothly before you make this big financial decision. You will also need the home to be appraised. A home appraisal is a review that gives the current value of the property you want to buy. You must get an appraisal before you buy a home with a mortgage loan. Lenders require appraisals because they can’t lend out more money than a home is worth. 

Even though this seems like a lot, it will leave you confident in your decision to buy a home. When you have everything above worked out, all you need to focus on is finding a home that fits your needs instead of wondering if you can even afford it. Keep in mind our team can help you with any of the above, so contact us today! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS #407724

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Financial Planning 101

Nerdwallet states, “A financial plan is a comprehensive picture of your current finances, your financial goals and any strategies you’ve set to achieve those goals. Good financial planning should include details about your cash flow, savings, debt, investments, insurance and any other elements of your financial life.” But where do you start? We’re here to help give you the basics of financial planning so you can begin improving your financial future. 

What are your goals? 

Where do you want to be 5, 10, 20 years from now? Think about how many kids you plan on having, where you’ll be living, the job you’ll be at and so on to realize where your financials should be. How much money would you like to have in your savings account, retirement fund and emergency fund. If you plan on paying for your kid’s college or daughter’s wedding is also a goal to mark down because that’s another area you’ll need to save for. Get really specific so you are able to identity and prioritize all goals you have. 

Where are you currently at? 

Now it’s time to take a close look at your monthly budget, current debt and savings along with thinking about how that will change in the future. Make a list of all your assets – things like bank and investment accounts, real estate and valuable personal property. Now make a list of all your debts: mortgage, credit cards, student loans and so on. You’ll be able to see where the money is at and where you need to work on things. Be sure to really nail down your budget as well, because you want to make sure you’re not overspending each month. 

What does your insurance and estate plan look like? 

You will want to make sure you are covered correctly to protect yourself in the future. Life/health, car, business and personal insurance are all things you’ll need to go over. Make sure you ask around to get the best deals without sacrificing the quality of coverage you will receive. You will also want to create an estate plan if you haven’t already. This helps lay out who makes financial and healthcare decisions for you if you can’t make them yourself. Make sure beneficiaries on your bank and retirement accounts are updated, so your family can have easy access if something were to happen. 

How will you reach those goals? 

This is where you’ll need to stick to your finalized budget, pay everything on time and start saving for all of your goals. Work on paying off your smallest debt first and once that’s done, pay off the next smallest debt – all while making minimum payments on your other debts. This will help you lessen your monthly costs over time to help allow for that money to now go into a retirement or college fund. Working with a financial advisor to help you along the way is a good idea. Think about bigger ways to save – for example, with home rates so low, you could also think about refinancing your home as that could help save on your monthly costs as well. 

If you’ve enjoyed these first steps to financial planning, feel free to contact us with more questions or speak to a financial planner to learn more about how to get where you want to be. We wish you luck on your future endeavors!  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Cyber Safety Tips for Kids

While so much is online today, even school, it’s important to have conversations about the dangers of being online with your kiddos. Cyber safety is extremely important to protect your family, so it’s crucial to continue these conversations over time and educate your children more than once (because we all know kids forget what mom or dad told them). Today, we will give our favorite cyber safety tips for kids! 

Protect Your Identity 

It’s important to teach your children that their identity is important. People could use their name, birthday, phone number, address and so on to do some bad things. Tell them it’s important not to post this information or share it with anyone when they are on social media or playing games online. 

Stay Away from Strangers 

Many kids will get friend requests or messages from strangers on social media, online platforms or video games. Tell them that stranger danger is just as important online as it is in person. If someone is being nice online, it doesn’t mean they should trust them or engage in conversation. 

Monitor Use 

Make sure you keep track of the social media platforms your children are on, what video games they are playing as well as who they are talking to on those games, and any other online activity. You don’t need to go overboard with looking deep into each piece but just do a quick look and have a conversation about being safe. 

Secure Social Media 

Know what platforms your children are using and show them how to set their security settings high on each platform. Make sure they aren’t sharing personal information and what they are posting is appropriate. You should also remind them to never meet in person with someone they met online and tell an adult if a stranger is messaging them. 

Be Aware of Downloads 

Teach your children not to download anything without your permission. Explain that anything that is downloaded or clicked on could hurt their computer or phone. Be sure to download and run security software on the computer as well as make continuous updates to the phone and apps. 

We hope these tips help you keep your children a little safer when online. The danger is out there, so monthly reminders are important to instill good practices in your children. Check out our blog for more cybersecurity tips. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Spring Clean Your Finances

Its Spring! With the new season comes a new energy and attitude which we want to take full advantage of! Over the last year and this winter, it’s been easy to get into a financial rut or overspend on subscriptions which is why it’s time to purge your finances. Keep reading to see our top tips to help you spring clean your finances! 

Sweep Away Subscriptions 

You’ve heard this before, but it becomes easy for subscriptions to build up over time. Maybe you’ve accumulated multiple streaming services but now things are picking up, so you don’t need them all. You could have been offered a free trial that has turned into an actual subscription now or you may have signed up for a monthly plan that charges you for something you could buy yourself for cheaper at the store – all of these are good to cancel and help lessen your monthly expenditures.  

Buff Your Budget 

After the holidays and last year, your budget may have taken a backseat. It’s time to dust off that budget and take a look at your expenses each month. See what it looks like after canceling a few subscriptions and get back into the routine of following it. There are apps that can help you track what you spend to allow you an easier way to stay on top of things. 

Deep Clean Debt 

Now is the time to look at your different debts such as credit cards, mortgage, student loans, etc. See what seems the most practical to work on paying off first. Your credit card may be the best place to start – while still making minimum payments on other debts, pay a little extra if you can afford it to your smallest debt. Once that’s paid off, continue doing the same for the next debt. 

Declutter Old Accounts 

You or a significant other may have an old 401k or HSA from a past job. Be sure to get everything transferred into a new account, so you are actually being proactive with that money. You may also have an old savings account from a different bank that you need to switch over. All of these items are important to keep track of and get moved and closed. 

Restore Your Retirement 

Even though retirement is far away, it’s important to save for that now. Open a retirement account such as a 401k with your company as well as a CD or IRA with your bank. Just think about not working once you’re older and all the expenses you’ll still need to pay for – that money you start saving now will come in handy then. 

Tidy Up the Emergency Fund 

You may have dipped into your emergency fund over the past year, so be sure to work on building that back up. Open a savings account with us to store your money so it’s ready when you need it most. When you are creating your budget, you’ll see how much money you can afford to put away in your emergency fund each month. 

We hope these tips give you a few things to focus on this season, so you can get back on track with your finances. If you need a safe place to store your money, build retirement or take out a loan, Peoples Bank & Trust is here to help! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender