Moving costs can add up, but there are simple ways to reduce your moving related expenses:
1. Make the move on your own: Instead of hiring a professional moving service, it is more cost effective to rent a truck and move things yourself instead. If you aren’t up for doing that, you can still move some things on your own and get professional help with only a portion of your move.
2. Get quotes: If you are using a moving company, be sure to get cost estimates from at least three different companies. Be prepared to let the companies know the number of miles that you are moving, how many possessions you are moving, etc. This way they can give you the most accurate estimate possible. It’s a good idea to check out sites such as The Better Business Bureau to become informed about any complaints or issues related to the company, if there are any.
3. Moving day: Schedule your moving day on an off peak day, such as mid week. Many people move on the weekends so if your schedule allows, you may be able to find better deals if you move on a Tuesday for example rather than a Saturday or Sunday.
4. Don’t over-insure: Many moving companies offer insurance to protect your belongings during a move but that may not be necessary. Many renter and homeowner insurance policies have this type of insurance built into them so you may not need to purchase extra.
5. Don’t pay for moving boxes: Instead of going to a home improvement store to purchase moving boxes, be resourceful and find free ones instead. Ask your local grocery store for left over boxes, ask friends and family, or check with big box stores.
6. Tax deductions: If you are moving for your job, you may be able to deduct some of your moving expenses from your taxes.
Your credit score plays a large role in the type of financing you will be offered when looking to buy a home. Banks usually decide on the terms of a loan based on the credit score category that you fall in to. It is important to check into your credit score and to ensure that you take any necessary steps to improving your score as much as possible before deciding to finance a home. Here is a quick summary of how banks view your credit score in relation to financing:
- The lower the credit score, the more difficult it is to become approved for a loan and the loans that are obtained with a lower score will typically have a higher interest rate
- In order to qualify for conventional financing, a borrower must have a minimum score of 620; some lenders have raised the minimum score needed for conventional loans through overlays (rule overrides)
- The national average FICO score is 689
Below are the credit tiers according to Fannie/Freddie:
– 760 Plus New Tier 1 A
– 740-759 Old Tier 1 A
– 720-739 Fair Sub A
– 700-719 Fair
– 680-699 Average
– 660-670 Below Average