As you begin to prepare for tax time, February is a great time to take a look at your finances to ensure that you’re ready to reach your investment goals for the year. Here are a few suggestions to get you started with assessing your current situation:
1) Reassess your mortgage, and make sure it suits your current financial situation. Salary and cost-of-living fluctuations over the year can affect your monthly cash availability. Consider refinancing for better rate terms if the opportunity becomes available this year.
2) Review your insurance policy coverage, and shop other companies to see if you qualify for a lower premium. Make sure your policy adequately covers your home’s value, condition and any improvements you’ve made over the years. See last month’s newsletter for more tips for reviewing your homeowner’s insurance.
3) Obtain a copy of your credit report, and look for any errors. Mistakes in your report could significantly affect your ability to get a loan and could possibly increase the rates you pay. Follow up with the companies to correct any errors, and notify the three main credit bureaus (TransUnion, Experian, and Equifax) once fixed.
4) If you’re thinking about buying a home this year, start planning now. Cut out unnecessary spending in order to pay off any debt and to save up for emergency or repair expenditures. If selling a home, speak with a real estate professional or contractor about which improvements to your home can get you the best return.