How Does Financing Work?

You meet the person of your dreams and you are ready to start a family. You buy the ideal SUV for family road trips and one additional vehicle so that you don’t fight with your partner for the keys. Next, it’s time to purchase a home.

You find a home that is big enough to raise a family, has modern appliances such as an efficient HVAC system with a programmable thermostat and is situated in a good neighborhood. Then you wake up. It was a beautiful dream—the American dream. But, maybe it’s possible! Let’s take a look at how you can make your dreams of being a homeowner a reality with all things finance-related!

Financing Your Home

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New home buyers may be wary of mortgages, but there are many great resources out there, like influentialtimes.com that can guide you through the world of mortgages. The truth is that buying on credit is how most successful companies do business. If you look at Elon Musk, Jamie Seminoff, Vitalik Buterin, or any of the successful technology leaders of today, nobody has simply paid cash for everything. If successful CEOs can rely on venture capitalists to finance their companies, first-time homeowners can finance their homes on credit rather than pay cash up front.

Think about it. In a post-pandemic world, your home office is your office. Without a positive home environment, you will not have a positive work environment. You can be a renter within the limits of your income and therefore, not be a borrower, or you can be a homeowner within the limits of your credit score.

Of course, there is always the risk that you can miss some monthly payments and lose your investment, including the down payment, but the risk is part of life. If there is anything that the COVID-19 pandemic has taught us, it is that a risk-free world with guaranteed outcomes is a fantasy sprinkled in pixie dust.

Financing Household Appliances

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While most people finance bigger investments such as a house, other people opt to finance smaller household items like kitchen appliances or new furniture. Take a new AC system, for example. Investing in an older system for your AC unit or HVAC may be penny-wise but dollar-foolish. If there are signs your AC system is wasting energy and money, it may be time to look into investing in a new air conditioning system.

Unless you are operating at peak efficiency, your electricity bill can be remarkably high if you are constantly using it. This is even worse for your wallet if the HVAC system is overworking because it’s not functioning properly.

The condition of your ductwork, vents, and air filters are also signs that your AC system is wasting energy, and in turn, your money. Unless these components have been properly cleaned and maintained, you can have bad airflow or even worse, mold. In addition to the obvious disadvantages for health, disturbed airflow can result in inefficient energy usage and cause a higher utility bill.

Part of the responsibilities of homeownership is the routine maintenance of your home. A lot of the energy costs and routine maintenance costs can be reduced by purchasing a home with an efficient HVAC system and a high seasonal energy efficiency ratio. However, regardless of whether your home has a newer system or an older system, financing the routine maintenance of your home, including your AC system and your AC repair, is an option. The key takeaway is that maintaining your home requires constant vigilance, but that vigilance is a worthwhile investment.

Nicole Thompson

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