Consumer Tips

Home Insurance

At closing, you may have been required to pre-purchase a year of homeowner's insurance. Homeowner’s insurance often costs quite a bit more than renter’s insurance, because it covers the home, in addition to your personal property. Depending upon where you live, you may also need to purchase supplemental insurance for hurricanes, floors, tornadoes, earthquakes, and other natural disasters that are not covered under your standard policy. In addition, if you own any valuable items, such as sports memorabilia or jewelry, you may want to add coverage specifically for those items.

Maintenance and Repairs

Owning a home also means that you are responsible for all maintenance and repairs. These costs can add up quickly, especially in an older home with older systems. These expenses can include the cost to repair or replace appliances, heating and cooling systems, exteriors, and anything else that needs to be fixed. Every year, you should expect to spend some money on routine maintenance, and always keep an emergency fund with money available for emergency repairs. Keeping up with routine maintenance, although expensive in the short-term, will ultimately save you money in the long-term.

Home Utilities

Also prepare to spend some additional money on utilities, including water, garbage collection, heat, and electricity. With more space, it’s likely that even the bills you paid when you rented will be higher in your new home.

Homeowners’ Association Fees

Many communities have a homeowners’ association, commonly called an HOA. An HOA is typically tasked with maintaining common areas and enforcing deed restrictions. Membership in a community HOA is often mandatory and members are charged a monthly or annual fee.

Home Furnishings

Finally, keep in mind that you’ll need to purchase furniture and décor items for your new home. Most people, when purchasing a new home, decide to paint, upgrade the décor, purchase new furniture, and buy new linens.

When purchasing a new home, factor in these items to your total budget to make sure that you are completely financially prepared for homeownership. By doing this, you’ll know that you are purchasing a home that you can afford.

Union Plus Credit Counseling

Union members can get a no-obligation money and credit assessment from certified, experienced consumer credit counselors though Union Plus Credit Counseling. Powered by the non-profit Money Management International (MMI), your free session will cover a complete financial review, assistance in budgeting, advice for working with creditors, and more.

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Through the Union Plus® Mortgage program, with financing provided by Wells Fargo Home Mortgage, union members, their parents and children have access to a wide range of home loan options to meet a variety of needs, plus access to special benefits designed for union families. 

When you apply for a loan, lenders assess your credit risk based on a number of factors, including your credit/payment history, income, and overall financial situation. Here is some additional information to help explain these factors, also known as the “5 Cs,” to help you better understand what lenders look for:

• Credit history: Qualifying for the different types of credit hinges largely on your credit history – the track record you’ve established while managing credit and making payments over time. Your credit report is primarily a detailed list of your credit history, consisting of information provided by lenders that have extended credit to you. While information may vary from one credit reporting agency to another, the credit reports include the same types of information, such as the names of lenders that have extended credit to you, types of credit you have, your payment history, and more.
  
  In addition to the credit report, lenders may also use a credit score that is a numeric value – usually between 300 and 850 – based on the information contained in your credit report. The credit score serves as a risk indicator for the lender based on your credit history. Generally, the higher the score, the lower the risk. Credit bureau scores are often called “FICO® scores” because many credit bureau scores used in the U.S. are produced from software developed by Fair Isaac Corporation (FICO). While many lenders use credit scores to help them make their lending decisions, each lender has its own criteria, depending on the level of risk it finds acceptable for a given credit product.
   
• Capacity: Lenders need to determine whether you can comfortably afford your payments. Your income and employment history are good indicators of your ability to repay outstanding debt. Income amount, stability, and type of income may all be considered. The ratio of your current and any new debt as compared to your before-tax income, known as debt-to-income ratio (DTI), may be evaluated.
   
• Collateral (when applying for secured loans): Loans, lines of credit, or credit cards you apply for may be secured or unsecured. With a secured product, such as an auto or home equity loan, you pledge something you own as collateral.
  
  The value of your collateral will be evaluated, and any existing debt secured by that collateral will be subtracted from the value. The remaining equity will play a factor in the lending decision.
   
• Capital: While your household income is expected to be the primary source of repayment, capital represents the savings, investments, and other assets that can help repay the loan. This can be helpful if you lose your job or experience other setbacks.
   
• Conditions: Lenders may want to know how you plan to use the money and will consider the loan’s purpose, such as whether the loan will be used to purchase a vehicle or other property. Other factors, such as environmental and economic conditions, may also be considered.

The 5 C’s of Credit is a common term in banking. Now that you know them, you can better prepare for the questions you may be asked the next time you apply for credit.

And remember, after closing on a loan through the Union Plus Mortgage program, you’ll be eligible for special benefits that include receiving a My Mortgage GiftSM award from Wells Fargo - $500 for buying a home or $300 for refinancing your home – for use at participating retailers, and access to mortgage assistance through Union Plus in times of hardship such as layoff, disability or strike.¹ Keep in mind that parents and children of union members are also eligible for certain benefits.

Talk to a
Union Plus Mortgage Specialist
at 866-802-7307
or request a personal consultation 
 

Source: wellsfargo.com 

It’s a good idea to think about flood insurance in advance of an event, because standard homeowners policies exclude flood coverage. You can find out whether your property is in a low-, moderate- or high-risk flood area by entering your address into the Federal Emergency Management Agency (FEMA) database. Keep in mind, however, that 25 percent of all flood claims are from people who don’t live in high-risk areas. And because of the recent boom in new housing developments, the land’s natural runoff pattern might have changed from what a 10-year-old flood map shows.

MetLife Auto & Home is proud to offer our customers flood insurance through the National Flood Insurance Program (NFIP) and Federal Emergency Management Agency (FEMA), and it covers more than just the structure of your home. It also covers debris removal, damage to your contents and more. Contact your local MetLife Auto & Home representative or call one of our flood specialists toll free at 855-666-5797.

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Car prices change all the time, for all kinds of reasons. Using industry sales data from previous years, the experts at TrueCar identified the best times to buy a new car by month, day and even segment.

Keeping sufficient records and updated copies of important paperwork is vital to your financial well-being. In the event of an emergency, having important papers organized is just as important as having an emergency savings fund.

The first thing you must do is gather original copies of your important documents. If it isn't possible to obtain an original copy of a document, get a certified copy. Once you have the necessary documents, be sure to keep them in a safe, yet easily accessible place - either a secure paper filing system or a trustworthy online space. The following information can help you determine what to keep and what to toss.

Retirement planning documents – Documents pertaining to IRA, 401(k), 403(b), or TSA statements should be kept in a secure location, such as a safe deposit box. Keep the annual summaries until you retire or close the account.

Tax planning documents – According to the Internal Revenue Service you should keep your individual tax return documents for seven years. You may also want to save W-2s. Paycheck stubs can be shredded once they are checked against your W-2.

Financial documents – Checking and savings accounts, bank and credit card statements, and bank information are important paperwork to have, but should be kept in a secure location. Bills for big purchases, such as furniture, computers, etc. should be kept in an insurance file for proof of their value in the event of loss or damage. Any unneeded financial statements should be properly disposed to avoid identity fraud.

Asset protection documents - In the event of an emergency, you’ll want to make sure your tangible assets are protected as well as your most valuable asset—yourself. Make sure you have updated, accurate records of medical, home, and life insurance policies and statements. Documents pertaining to buying, selling, or improving your home should be kept as long as you own the home.

Estate planning documents – It’s important to have a copy of any wills and power of attorneys. These are documents that your attorney should also have on file.

Shuffling through a pile of paperwork is a daunting task. But it is well worth it to make sure documents are properly filed and stored. Getting your financial house in order now will ensure peace of mind down the road.

Union Plus Credit Counseling

Union members can get a no-obligation money and credit assessment from certified, experienced consumer credit counselors though Union Plus Credit Counseling. Powered by the non-profit Money Management International (MMI), your free session will cover a complete financial review, assistance in budgeting, advice for working with creditors, and more.

LEARN MORE

Here are some tips and tricks for ensuring your MLS listing catches some attention.

1. Hire or DIY: This is the first decision you need to make. Whether you’re FSBO or have a realtor – think about investing in having a professional take pictures of your home. They will have a good eye for lighting, camera angles to make your home larger and also special lenses to enhance the look of rooms. If you enjoy photography and have a good camera – there’s no reason to shy away from the job, but just be sure to follow the below steps to ensure you’re thinking about everything before you begin.

2. De-clutter and De-personalize: This is something you’ll hear from a realtor when getting your home “show ready” – the less clutter and personal items, the better. Invest in totes or an actual storage service if you’re not ready to get rid of things.

3. Light: When you take pictures, make sure it’s during the brightest point of the day (in your home). Depending on where your windows are located and the position of your home – it could be in the morning or afternoon. Open all blinds and shades to let ample light in and notice how much more inviting your home will look in your pictures.

4. Set the Scene: Think about buying fresh flowers for your dining room table, side tables, bathrooms or guest room. Set your dining room table with a beautiful tablecloth and place settings. Buy potted flowers for your porch and back yard. Buy a cozy throw to add color to your couch or bedroom. Remember you can always re-use things like plants and flowers in multiple rooms to add a pop of color to your pictures. Get inspired by thumbing through recent Pottery Barn magazines to see how they’ve staged their rooms – even the smallest details can make a big difference.

5. Highlight Your Best Features: If you have a beautiful kitchen or large backyard – be sure to highlight these areas with multiple pictures. You can never have too many good pictures for prospective buyers to view.

With these tips, you shouldn’t have any issues capturing some attractive pictures of your home. And as always, if you’re ready to talk to one of SIRVA pre-approved real estate agents, call 800-284-9756. With the Union Plus Real Estate Rewards, union members earn $500 cash back on every $100,000 in home value when you use a real estate agent approved by SIRVA.

The Union Plus Auto Buying Service is committed to a faster, easier buying experience. One part of the process you may be wondering about is the tendency for car prices to change. The simple answer is supply and demand.

The base price or manufacturer suggested retail price (MSRP) of a particular car does not fluctuate much. But to meet or drive changes in demand, manufacturers often offer incentives such as cash back or bonus cash. Dealers have the same opportunities to offer incentives based on their stock, which often happens towards the end of the month.

For example, one dealership might project high sales of a popular model. A smaller dealership in a different city doesn’t, requesting fewer vehicles from the manufacturer. This second dealer might not offer incentives because they believe their smaller inventory will sell, while the first offers them to quickly move more vehicles.

While prices fluctuate, using a platform like the Union Plus Auto Buying Service, you can receive upfront pricing information from participating dealers that includes available dealer and manufacturer incentives. The Union Plus Auto Buying Service uses TrueCar Certified Dealers who will help you find the vehicle you want and locate incentives you may qualify for, including potential extra savings.

When your income suddenly decreases or disappears completely, the question quickly becomes what do you do about all those bills you're supposed to be paying? If you find yourself in such a situation, the best first step is always is to communicate with each of your creditors explaining your situation. Tell them that you are unable, not unwilling, to repay as agreed. Remember, it is always best to contact your creditors before they have to contact you.

The best way to contact your creditors is in writing; after you have written your letters:

• Maintain accurate files. Before mailing your letters, make copies to keep for your files. If you must negotiate over the phone, keep detailed notes including the representative’s name, title, and phone number. Follow-up any phone conversations in writing.
• Stay organized. Write a summary list of your financial plan for quick reference. Revisit the plan regularly to make sure you are on-track.
• Be prepared for calls. After sending your letters, you can expect some of your creditors to call with additional questions. If they do, be honest and courteous.
• Keep your end of the bargain. If you are unable to make agreed upon payments, contact your creditors immediately to renegotiate.

Utility Companies 

Each utility company has its own procedure to follow before disconnecting service. The procedure generally includes notification in person, by mail, or by phone. Before shutting off service, the company may offer a budget plan to help you repay any past due amount. Remember, utility companies do not want to discontinue your service. They might even have information about available emergency funds to help you pay past bills.

Be sure to ask for help at the first sign of financial trouble. Once your utilities are disconnected, you may have to pay the past due bill in full or pay a substantial deposit to reinitiate service. You might also have to reapply for the utility and pay installation charges.

Housing lenders 

If you do not make your mortgage payments, you home could be foreclosed. Fortunately, there are many alternatives to foreclosure. For example, if you have the amount of money required bring your loan current, the mortgage company will reinstate your mortgage. You may also contact your mortgage company and work out a repayment plan.

For help, considering speaking with a HUD-certified housing counselor. If your home loan is backed by the Department of Veteran’s Affairs, call your local VA center. You can also check with your local United Way for assistance.

If you are a renter, contact your landlord about your situation immediately. The landlord may accept partial payment for one or two months. You may want to look for less expensive housing, but be realistic and remember to include moving expenses, deposits and family adjustments as you calculate costs. If it is a private landlord and you or family members are able, you may be able to do some maintenance work in place of part of your rental costs.

Car and Other Vehicle Lenders 

If you cannot make your car or other vehicle payments, they may be repossessed. Repossession means that the creditor takes the vehicle and it is sold at a public or private auction. If the vehicle is sold for less than the amount still owed on it, as is often the case, you are liable for the remainder that is owed on the vehicle.

Check with the creditor to see if the loan can be rewritten for lower monthly payments. Ask for an extension, with the extension fee attached to the end of the loan. If you do not need the vehicle, if it is a second car or a recreational vehicle, ask the creditor if you could sell the vehicle and pay the creditor off with what you receive. Also, find out about the procedure if you sold the vehicle to someone who would take over payments.

Credit Card Issuers 

Late fees and over-the-limit charges can quickly add up to a debt problem. In addition, nonpayment could lead to your accounts being canceled and the debt may be turned over to a collection agency.

Notifying your creditors of your changed financial situation may not stop all collection activity; however, many creditors are likely to assist by waiving interest, granting extensions, or reducing payments. Do not be tempted to replace income with credit card cash advances. Available credit should be used extremely cautiously.

Insurance Issuers 

Do not allow insurance to lapse. Write your insurers immediately and explain your situation. Ask what payment options are available. Check with your insurance company; there may be a grace period in making payments from 10 to 30 days. Determine your minimum needs for insurance. Cancel duplicate and non-essential policies. For basic essential policies consider these options:

• Car Insurance. By law, you may need to retain your liability coverage. You can research the possibility of reducing your premium costs by increasing the deductible on your collision and comprehensive coverage.
• Health Insurance. Check to see if the health insurance provided by your former employer is continued. If coverage is not available or if you can’t afford the premium, find out if you qualify for Medicaid. Also, check into policies that would pay for major hospitalization and find out what community services are available for routine medical concerns.
• Life Insurance. Consider changing your policy to a less expensive form. Check into the possibility of borrowing money on your policy to pay premiums.

Union Plus Credit Counseling

Union members can get a no-obligation money and credit assessment from certified, experienced consumer credit counselors though Union Plus Credit Counseling. Powered by the non-profit Money Management International (MMI), your free session will cover a complete financial review, assistance in budgeting, advice for working with creditors, and more.

LEARN MORE

We throw the term “financial literacy” around pretty frequently, and you probably have a good idea of what it means. But how does one actually test financial literacy? And how well would you do on a test of your financial literacy?

Let’s find out.

A Little Background

Researchers at George Washington University recently released a report, based on data from the 2012 National Financial Capability Study, which concluded that millennials think they’re more financially literate than they really are. In that 2012 study, financial literacy was determined through a series of five questions. Correctly answering the first three questions would indicate a “basic understanding” of personal finance. Answering all five questions correctly would demonstrate a “high level” of understanding.

Of the millennials surveyed, only 24 percent were able to answer the first three questions correctly and only 8 percent answered all five questions correctly. Could you do better? Here are the actual questions used in the survey:

1. Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After 5 years, how much do you think you would have in the account if you left the money to grow?

• More than $102 
• Exactly $102
• Less than $102
• Do not know
• Refuse to answer

2. Imagine that the interest rate on your savings account was 1 percent per year and inflation was 2 percent per year. After 1 year, how much would you be able to buy with the money in this account?

• More than today
• Exactly the same
• Less than today 
• Do not know
• Refuse to answer

3. Please tell me whether this statement is true or false. “Buying a single company’s stock usually provides a safer return than a stock mutual fund.”

• True
• False 
• Do not know
• Refuse to answer

4. A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage, but the total interest paid over the life of the loan will be less.

• True 
• False
• Do not know
• Prefer not to say

5. If interest rates rise, what will typically happen to bond prices?

• They will rise
• They will fall 
• They will stay the same
• There is no relationship between bond prices and the interest rates
• Do not know
• Prefer not to say

Ready for the answers? 1 – More than $102, 2 – Less than today, 3 – False, 4 – True, 5 – They will fall

How did you do? Did you meet your expectations? Remember that only 8 percent of the millennials surveyed were able to answer every question correctly, despite 69 percent giving themselves high grades for financial literacy. In general, it’s pretty common for many of us to think we know all that we need to know about money because we handle our money every day. In reality, however, being financially literate means having a solid grasp on a wide range of financial concepts.

If you struggled with some of the questions, don’t worry. In the weeks to come, we’ll be going in depth with each of the questions and the core concepts being tested. Besides, one of the true values of a test like this is learning what you don’t know. Once you see where the gaps are, you can work to increase your knowledge and fills those gaps.

Union Plus Credit Counseling

Union members can get a no-obligation money and credit assessment from certified, experienced consumer credit counselors though Union Plus Credit Counseling. Powered by the non-profit Money Management International (MMI), your free session will cover a complete financial review, assistance in budgeting, advice for working with creditors, and more.

LEARN MORE