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6 Ways Your Small Business Can Attract Better Employees

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6 Ways to Attract Better EmployeesWhen it comes to hiring new employees, it can be easy to assume that either they just don’t make them like they used to or all the bigger companies are snatching away the most promising talent. While each new generation is different than the one that preceded it and larger companies may seem like they have more to offer than a smaller mom and pop outfit, the truth is that any business of any size can attract hard-working, affable and honest people who will not only improve the bottom line, but also make work environments more pleasant and productive. If you’re looking for a new batch of workers, and you want to make sure you get the cream of the crop, here are six tips that will help you attract the best employees to your small business.

Emphasize the Non-Corporate Nature of the Work Environment

Not everyone wants to work for a large corporation, regardless of the reliability and perks that seem to accompany doing so. There are plenty of hard-working, well-equipped people who would just rather work for a smaller company with less bureaucracy. Since you aren’t one of the big fish, why not consider highlighting that fact instead of apologizing for it? In your job postings and hiring processes, emphasize the non-corporate nature of the job. Some people would rather have a casual dress code and a boss they see on a regular basis than $5,000 more a year. Really.

At Least Match Whatever the Going Rate Is for the Position

While it may threaten to break the bank, attracting better employees will require you to be able to at least match the going, local rate for the position you need to fill. Good employees know what they’re worth, and while they may be willing to work for less than they have to if the work is meaningful enough or there are other benefits that make up for the lower pay, they will very rarely work for less than the standard going rate for a job. If you need a great new receptionist and your local competitors pay at least $13 an hour, then you need to offer that, too.

Offer Benefits

When it comes to employment, compensation comes in all shapes and sizes, and one of the most attractive of those is a good benefits package. While the Affordable Care Act has forced many small businesses into the position of choosing between offering employees health care or paying a fine, the reality is that it’s still cheaper at this point to pay the fine. However, not offering health care, paid maternity and paternity leave, flex time, paid sick days and the like will keep you from attracting the kinds of people who will help you make more money and provide you with a more productive work environment. If you want better workers, offer better benefits.

Provide a Positive Work Culture

A positive work culture will attract positive, hard-working people. When a potential employee sets foot on your worksite, she will intuitively know whether or not your employees enjoy their jobs, and whether or not the environment is a good one. If your work culture suffers from negativity, laziness, complaining, gossip or other ruinous practices and attitudes, get to work on changing it. Good people won’t work for you until you do.

Treat Every Employee and Potential Hire Like They Matter

People need to feel valued, especially at work. Whether you do it with affirming and encouraging words or through grateful email communication, make sure your employees and potential hires know that you value them, the skills they possess and the work they do.While this practice will certainly create a more positive work environment and make for happier employees, studies also show that employees who feel valued work harder.

Be Passionate 

In order to attract better employees you need to become more effective at communicating your vision with passion. Happy employees make better employeesEveryone wants to work at a job that has meaning and makes a positive difference in the world. Find the story in your own work that shows potential employees the ways in which your business is making a difference. If you’re able to find your passion about your small business and communicate it effectively to potential hires, you stand a much better chance of landing the ones who are also passionate.

 

Your small business doesn’t have to settle for second-best when it comes to finding and hiring good employees. From offering better benefits to providing a positive and non-corporate work culture, you already have the tools at your disposal to make working for you an irresistible choice.

Looking For An Insurance Professional? Remember These Tips

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Purchasing insurance is a difficult experience no matter what part of the country you live in. Everyone wants to get the best possible deal, and the rates in some areas can be extremely high. Insurance on your automobile, home and recreational equipment is a substantial investment.The difficulty is choosing the right agency along with a reputable company. Price is important, but the promptness and efficiency with which agents and companies settle claims and deal with emergencies is most important. No one calls at midnight to report an accident expecting to get a recording that says to call again during office hours. We all need help at the time we call. Look for an agency that will respond with care and accurate advice when you need it.Here are a few things to look for when choosing an insurance agency:

• Stability – How long have they been in the insurance business?
• Reliability – Ask your friends, neighbors and co-workers about their experience with the agency.
• Professionalism – An insurance agency often represents a number of companies. Look at these companies and their financial ratings to determine the quality of the companies represented.
• Personal experience with the agency – After you’ve acquired quotations about prices, go in to visit the agency, or ask if they’ll come to you. Choose someone with whom you are comfortable talking.

Ideally, your agent will represent your interests with all types of insurance, including automobile, homeowners, health, life and investments. A professional insurance agent will be your go-to person for insurance and investment advice.

You may be new to the area and seeking a reliable place for your insurance, or you may be a long-term resident. In either case, cost is important, but so is the expertise of the agent and agency from which you purchase insurance. Ideally, your insurance portfolio should be examined on a yearly basis. Agencies should be ready for this examination about a month before your insurance comes due. Ask for recommendations about amounts of insurance, if you should adjust deductibles, valuations for jewelry and fine arts, changing circumstances such as a child reaching driving age within the next year, increasing liability, retirement concerns, etc. An excellent agent and agency will be ready to meet your questions and make suggestions.

 

Protect Your Family’s Valuables From Fire

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Protect Family Valuables From Fire

There are an average of over 370,000 residential fires every year according to the latest data from the U.S. Fire Administration. It’s easy to feel invincible and think that this couldn’t happen to you, but burying your head in the sand will not help you protect your family. Aside from fire safety and educating your kids about what to do in the event of a fire, protecting your valuables, irreplaceable items and important paperwork is essential to being prepared.

Protect Photos and Digital Documents

Start an account with a cloud-based online storage website to preserve your most-important digital documents. Upon initial setup, activate the necessary settings on all of your family computers to automatically back up the desired files as soon as any new ones are uploaded. By automating the process, you never have to worry about whether you backed up copies of the latest photos that you uploaded from your camera. By using the cloud, you also can access your documents from any device.

Keep a digital file folder with records of any big ticket items in your home such as artwork, computers, photography equipment, precious metals, jewelry, media equipment and anything else that you would claim as a reimbursable expense on your homeowner’s insurance policy. Digitize all receipts for these items, and include a photograph of each as proof of ownership in order to have the best chance of getting the most back for your most valuable material possessions.

Preserve Your Little Picasso’s Masterpieces

Kids artwork can overrun your house if you let it, but it also can be nearly impossible to part with. While this quandary is something every parent must work out for themselves, sentimentality reaches new heights if all of those finger paintings, drawings and collages are lost in a fire. Save the mini masterpieces for posterity and maintain organization of everything by digitally preserving them. Photograph or scan your favorites and keep them in a file with your family photos. At the end of each year, compile them all into a photo book, so you can all enjoy them whenever you want.

Keep Important Documents Safe

For things that you need easy access to like birth certificates, your marriage certificate, will, social security cards, deeds, titles, insurance policies and passports, invest in a fire-proof box or personal safe instead of storing them in a safe deposit box at the bank. While a bank has plenty of fire protection, the lack of accessibility is too much of a hassle for these important documents.

When shopping for a fire-proof box or safe, make sure it carries at least a 350 rating from Underwriters Laboratories (UL), the gold-standard in fire safety ratings. A UL 350 rating means that the temperature inside the box won’t exceed 400 degrees, which is the lowest temperature at which paper begins to burn. Also, always store important paperwork in zipped plastic storage bags to protect them from water damage in case moisture penetrates the box as the fire is being extinguished.

Why are students using payday loans?

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 Money Elizabeth

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There appears to be a rising trend that shows that more and more students are taking out short term loans.  Research by the National Union of Students (NUS) shows that up to 46,000 undergraduates are using what they term high risk debt (which includes payday loans, cheque cashing and doorstep loans).  They suggest a number of reasons for this which relate, in the main, to funding their living costs and fees. .

Some highlights from their research show:

  • the weekly cost of student accommodation has nearly doubled in 10 years (£60 – £118);
  • 50% of students worry about meeting basic living expenses like rent and utility bills;
  • over third of students receive no family financial support.

These stats show it is not a typical student lifestyle being funded via a payday loan, but the essentials.

So worried are the NUS about the risk of spiralling debt problems in the student , that they are calling on a ban of all payday lenders from advertising in student magazines, student residences and on campuses.

Payday loan giant Wonga took the unprecedented step of not advertising to students last year and removed all pages from their website in 2012 that could have been construed as targeting students. This has not, however, currently stopped other companies trying to.

Students themselves, has also taken a novel approach and launched their own “payday loan” company specifically for the student market. Unlike normal lenders they have a number of interesting features:

  • no rollovers;
  • a 10 day grace period – in case of student loan problems;
  • a fixed cap of interest – you can never owe more than 50% of what you borrowed;
  • a lower rate of interest.

So even the students themselves see that there is a need for access to short term finance, and they feel they are able to offer a more competitive and student friendly service themselves.

What does the industry say?

The Consumer Finance Association, which represents some of the main payday providers, said students would need to be in regular employment to qualify for a loan from a reputable lender, and that simply banning advertising in campuses would not remove the issue.

The new financial watchdog, the Financial Conduct Authority (FCA), has issued new regulations for payday lenders which came into force in July and include:

  • restrictions on the number of rollovers (ie.how many times a loan can be extended);
  • wealth warnings on ads;
  • more rigorous testing on affordability.

The aim is to remove the less than reputable loan providers from lending.

Other options for help

Students are being advised to think carefully before logging on and applying for a payday loan.  There are a number of alternatives students could look at first.

Some universities have access to learning funds where students can apply for funds if they are struggling to pay for their studies.

Other finance products such as an 0% credit card or 0% student overdraft may help cash strapped students in the short term and means they are not actually having to pay back interest on the borrowing.

Credit Unions are another source of low cost small term finance loans – more information is available here: http://www.findyourcreditunion.co.uk/home.

The Bank of Mum and Dad could be an option before turning to a payday loan for students. Or, those that live close enough can lean on them in other ways to help reduce their living costs.  Asking for a loan or moving back home to keep debt down is not a bad idea.

Summary

As you can see there are a number of reasons why students are turning to payday loans and why it is a worrying trend in some people’s eyes.  That said, payday finance is not the only option available to students who need a short term injection of cash.

About the author: Emily Green is a freelance personal finance writer living in Hong Kong. She loves travelling and is planning to relocate to New Zealand within the year.

Improving Your Home with Easy and Inexpensive Weekend Projects

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Have an idea for home repair? Not every project requires an expense contractor and you can easily spiff up your space with some of the simple weekend projects listed below:

Replacing a Leaky Shower Head or Sink Faucet

Most shower heads and faucets available today can be replaced in one afternoon with simple tools. Even a relative novice could complete this task. If you’re just replacing an existing shower head or faucet, choose one in the same style you already have: single-handled, double-handled and three-handled. You can find old shower fixtures and faucets at plumbing salvage yards for much less than those you find at a showroom. Then, it’s as simple as shutting off the water supply, removing the old hardware, following the manufacturer’s directions for the new piece and re-caulking the fixtures where they touch the walls using silicon. Allow it to dry before turning the water supply back on.

Be warned, many cities require an inspection of work on new plumbing installations and some even require a certified plumber to install pipes and running water lines, so check before you begin any major work.

Adding Molding

Don’t let this project intimidate you — its not nearly as difficult as you might think. After choosing the appropriate style for you home, let the wood sit for a few days before installing. It will need to expand or contract based on the temperature and humidity in the house, and it’s best to let it breath before nailing it to the wall to avoid cracks and warping. Before making any cuts, make a guide fence for you miter saw. This will help you position the molding in exactly the same place for each piece. Always wear proper safety equipment when working with cutting tools of any kind.

When installing, use finish nails and glue to keep things snug, and work either clockwise or counterclockwise. After the molding is nailed in, smooth it using 100-grit sandpaper and paint with acrylic or enamel. You can paint the molding before you install, but you’ll have to repaint any scuffs due to installation. Just don’t forget to ventilate the room!

Redo Backsplash

A colorful tile backsplash can make a dramatic impact and even improve the resale of your home. Plus, it can be scrubbed of grease and cooking splatters much easier than painted or papered counterparts. Learning how to add a kitchen backsplash is well within the reach of the average DIY-er.

Once you’ve purchased the tiles, prepare the walls by lightly sanding with a course-grit sponge and applying title mastic or quick-set mortar with a v-notched trowel. Once applied, install the tiles before it sets. Work in small areas if you have a large job. Line up the first tile with the edge of the countertop or with a level to ensure a perfectly-aligned finished product. When you reach the end of a corner, you’ll likely need to cut tiles to fit the remaining space. For small jobs, you can use a snap tile cutter. For larger jobs use a wet saw. Each of these can be rented at home improvement stores at a daily rate.

Other easy DIY projects include adding a flagstone walkway or maintaining your spa. These easy fixes don’t require special tools or expertise, can save you money and be completed in a weekend or an afternoon.

When laying flagstone, lay out the shape of the path you want with a garden hose and remove all grass and topsoil 4 inches deep. Fill the path about 2 inches deep using coarse “washed” sand and then set the flagstones according to the stride of the average person. Lastly, spread more sand on top to fill out the extra space and voila! To protect your back during this project, lift smart and wear eye protection and a dust mask when pouring sand.

One of the easiest DIY options on this list is spa and hot tub maintenance. First and foremost, test your water chemistry two to four times per week, and make adjustments as needed. Retailers like Hot Tub Works sell kits to test and treat the water. Always follow the alphabet: first adjust alkalinity, then bromine, followed by calcium hardness and finally the pH balance. In addition, you’ll need to replace the filter every 12-24 months. Clean the filter every four to eight weeks depending on use. Give the spa a full cleaning when the spa is drained. Add fill water often as a skimmer that starts to suck air could damage the pump.

Checking your appliances for any repairs is another great way of avoiding any surprises during the busy work week. Once in every couple of months hire someone like dallas texas appliance repair to look at your kitchen applainces.

What Jobs to Choose in 2014

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It is well know that jobs were not created equal, and some of them are better in terms of social utility, some are more profitable, and some are simply considered better than others. Most people choose their careers according to their personal skills and likings, but knowing what will come next and what to expect from the labor market in couple years is a good thing to consider. Thus, here are some of the most popular jobs in US that are expected to remain as popular and increase the number of specialists needed in the nearest future.

Software Developer

If you have ever been addicted to computer game or you cannot part from your mobile phone, you may blame these people. Software developers may be working in various spheres of development – from constructing computer software and games for your tablet to building new operating systems. The IT technology is getting more and more powerful every day, and The Bureau of Labor Statistics predicts about 150.000 positions created in the sphere during the following ten years.

Lawyer

Not all lawyers spend their lives at courts, as it is depicted in the movies – there are plenty of opportunities you can get, like attorney jobs, representing businesses and individuals, legal counseling, and lots of others. The field is expected to offer about 70.000 new jobs, so you can try yourself at legal system.

Dentist

It is not only Hollywood stars that want to have a gorgeous white teeth – everyone wants to be able to smile freely. And dentists are here for use to treat teeth and gums, and counsel on maintaining good oral health. They say the profession is about to add more than 20.000 new jobs following years.

Information Security Analyst

As long as analysts monitor and plan the security in computer networks, you see they are extremely important in today’s digitals world. For that reason no one should be surprised by the increase in the field for about 35%. If you want to become a part of secure future and stay one step ahead of cyber terrorists – this might be a good career choice for you.

Mechanical Engineer

You may be surprised by the low unemployment rate of the profession, and high median salary (which is about $80.000), but if you are left-brain thinking person, you might consider the job of mechanical engineer. Another pleasure of the job is seeing like something you’ve created as a design on the paper, becomes the real product. 

Resisting Temptation: 5 Smart Ways to Use Your Tax Refund

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By trusting instinct and intuition, the right decision can become obvious from the wrong one. But desires are hard to resist. Now that your tax refund is sitting in your account, don’t let temptation overrule a smart monetary choice, and follow what your financially responsible gut tells you to do. Use five percent of your refund for a fun purchase, and feel good about investing the remaining 95 percent in any of the following:

Build Your Savings

The broken record singing “build your savings” is as tiresome as the one saying “eat a healthy breakfast.” But really, build a savings. Ideally, an emergency fund should support three to six months worth of necessary living expenses. Last year about 49 percent of employees lacked a personal safety net, according to Forbes. Use your refund to establish a savings account, and then use an app such as Saving Made Simple to help make saving a financial habit.

Get Reliable Transportation

“Car maintenance avoidance” is a real syndrome. It stems from the fear of taking your car into an auto repair shop for a brake check and coming back with 10 other costly repairs. Cushioned with your refund, a brake check shouldn’t be so daunting.

Proper maintenance helps improve the reliability, safety and longevity of your vehicle. Brake pads, rotors and tire replacements are worth the cost. After an inspection, you may even decide that buying or leasing a new car is a better investment than a repair spree. For example, use a $2,000 refund for a down payment to reduce monthly payments. A higher refund used as an initial down payment while signing can also leverage a better lease deal.

Improve Your Credit Score

Your credit score is a measurement that indicates whether you’re a good candidate for a mortgage, a loan or a credit card. The score also helps lenders determine the interest rate to charge you. A higher score provides you with better rates and more favorable terms.

Consider using your tax refund to pay off a credit card and substantially reduce your debt; it can boost your credit score, explains The Nest on Budgeting. Improve your credit by keeping the account open and lowering your credit card utilization rate, which is how much you charge/owe (outstanding balances) vs. your total available credit limit. The lower your utilization rate and balances, the higher your credit score. A utilization rate of below 20 percent is good and an average of 7 percent is best, according to FICO.

Pay off Debt

A tax refund can serve as a negotiation tool to achieve a settlement with a debt collector. Improve your financial management by offering the creditor an upfront lump sum in exchange for a smaller amount owed. Negotiate a lump-sum payment, and you could cut your debt significantly. While bargaining, exert power and hold firm. Know your rights and be aware of fictional scare tactics. Nolo, an online small business and legal website, offers a collection of articles on how to negotiate with creditors, handle tax consequences and strategize negotiations.

Make a Career Investment

Invest in your education and complete online courses to increase your future earning power and employee marketability. Expanding your skill set and advancing your education can also help you land a promotion or change careers.

Make sure that you choose a career that has a positive outlook in the future. For example, those who earn a Master of Administration degree will have multiple career paths available for them with each of them expected to experience significant growth in the coming years. These careers also pay very well, making it more likely that your investment will pay off in the end. Once you have your MBA, you can pursue jobs as a marketing manager, financial analyst, operations manager, or an IT expert, giving you a number of different options within an organization.

Last year, U.S. News & World Report broke down the cost of an online class. Writer Devon Haynie found three-credit courses that ranged between $935 and $1,320 for out-of-state students, and one community college class cost about $515. Also, university online courses cost between $300 and $400 per credit hour. While researching your options, also look for in-state colleges and apply to scholarships to keep costs even lower.

Careers for Giving People

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A lot of people take time out of their schedules to help others, whether through volunteer work or by making more personal gestures to friends and family. Others don’t want to limit their giving natures to time outside of their careers. For those who want to make giving back a daily, in-career exercise, here are a few suggestions of where to get started and what kinds of opportunities are out there. Some are easy for lateral work transitions while others require specialized training, but all result in jobs that make improving the lives of others a central fixture.

1. Social Worker

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Image via Flickr by kennisland

Social work is a wide and varied field that concentrates on giving support to those who need it most. This can come in the form of advocacy for the homeless to help them get off the streets, outreach to people struggling with substance addiction, supporting special needs children, or a number of other areas in the community. Social workers tend to require a Bachelor’s degree in social work, plus some volunteer experience. To get a feel for the reality of social work, consider volunteering at shelters or in police support programs.

2. Psychologist/Psychiatrist

If you want to go deeper into the field of social work and help those who struggle with more challenging issues, you may want to consider a career as a psychologist. Today, both a Master’s degree in social work and a PhD in psychology are considered terminal degrees to become an accredited counselor. If you want to enter a similar field that concentrates more on medicine, you can pursue a PhD in psychiatric medicine to become a psychiatrist, working with patients to treat their mental issues with medication and other methods.

3. Nurse Practitioner

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Image via Flickr by comsalud
Doctors and medical specialists are valuable care providers, but they rely on dedicated nurses to make treatment consistent and holistic. Career nurses often go beyond the minimum requisite education to practice nursing, pursuing nurse practitioner certification to give them the skills and credentials they need to advance in their careers. Nurse Practitioners often lead teams of nurses in addition to performing their regular duties. Nurse practitioners are also qualified to diagnose many medical conditions and in some cases prescribe medication or otherwise manage the long-term care of specific patients.

4. Educator

Another highly varied field, education spans serving students of every age, background and level of need. Because of the technology that is used today, it is possible to attain teaching certification online. Anyone with a Bachelor’s degree can earn Accelerated Teacher Certification or a Master’s in Secondary Education through an online university, allowing him or her to move into a teaching career quickly. By enrolling in one of these online programs, prospective teachers will have the opportunity to learn on their own time, so that they do not have to quit their current jobs until they have completed their education and have started teaching. Online programs provide the flexibility that adult learners need, making it easier to become an educator.

The core of the education world is in certified primary or secondary school teachers who receive Master of Education degrees, there are many opportunities in related fields that don’t involve working in a school or directly with students. Tutors and adult educators tend to work for community or private organizations to meet the needs of a specific population, such as English Language Learners or children with learning disabilities. Educational administrators do not work directly with students, but their behind-the-scenes responsibilities put standard office responsibilities into the context of education.

5. Emergency Services

There are men and women who put their lives on the line and rush to save the lives of others every day. These emergency services professionals are functions of society, but they are also people who are at work. For those up to the challenge, a career in emergency services can be very stable and rewarding. Jobs in police and fire departments range from administrators to field officers and commanders, providing a career path that has a lot of growth and variety. You can also pursue work as a paramedic if you want to be a part of the emergency response side of medical care. Each of these fields requires certification through an appropriate academy or state-recognized organization and benefit from an education background in fields like criminal justice, medicine, chemistry or biology.

Helping others through your work takes dedication and a true desire to make the world a better place through your job. Each of the above fields can lead to long and rewarding careers that will give you the chance to wake up every day knowing you’re not just going to work, you’re also going to change the lives of others for the better.

5 Mistakes I Made Building My Business

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I don’t know if I’ve told my first business story on here. I owned a disc jockey company for ten years.

That was where I learned how to do everything wrong.

Sometimes, getting it wrong is okay, as I wrote recently on my personal blog, Stacking Benjamins. (Read: Messing Things Up? So Am I….And I Like It).

But it took lots of mistakes for me to learn. The problem was that I was hard-headed and didn’t change quickly enough. Over the years of being a business owner I’ve learned a few things:

1)   I didn’t change directions quickly enough. Often I’d make changes only after someone told me several times they didn’t like something. I always treated the first person who told me they didn’t like something as an outlier. Now I treat the first person who tells me they have a problem as honest and forthcoming, something I’m learning most people aren’t when it comes to telling businesses what they love or dislike. (I love this piece at CreditUnions.com: Change Before You Have To, Or….Change NOW)

2)   I borrowed too much money and from the wrong places. When I was behind on my bills and chasing money, I didn’t pay enough attention to the terms of the loan or the interest rate. I just knew that I was in a cash crunch and needed money fast. Big mistake. That one cost me that original business and probably made it so I had

3)   I didn’t have a repayment plan. Whether it was for installment loans, credit cards, or otherwise, I didn’t have enough foresight or business knowledge to focus on cash flow and what bite that loan was going to take out of my hide. Instead, I’d have rosy projections in my head. Then, when something didn’t happen the way I’d hoped, I’d be behind the eight ball, hoping to get out of trouble.

4)   I didn’t focus on keeping overhead low. I had a storage unit, a truck, hired DJs and gave them paid training sessions that were goofy, fun and expensive. I dreamed about “company outings” that were lavish and celebrated the fact that we were awesome at our jobs. All of this cost me money that I couldn’t afford. I should have been much more frugal about the entire operation.

To some degree, I still am not frugal with my operation. I spend money on professional products….but only those that’ll help me get ahead faster. Different than in the past, those products I’ve already tested for to make sure that I really need them. In the next month, I’ll be purchasing Scrivener (to complete my book), a pre-amp for our podcast operation (Stacking Benjamins), and arms to hold microphones for OG and I. (If you saw “the basement” (my office), you’d know how important this last one really is).

5)   I didn’t learn the basics of building or running a quality business. Sure, I read lots of magazines like Success and Inc., but I focused on the “fun” areas like creativity in business and having a fresh, new take on business than on how to build a stable, well-honed operation. It wasn’t until I read the E-Myth many years later that I saw the sexiness of having a straightforward, well-oiled machine.

Last summer I wrote about the magical company Cherry Republic. What I find fascinating about that firm is that, to the outside observer, they have all of the customer service in place that I loved when I began my business, yet they had the marketing and operational support to make this a reality instead of a cheap pipe dream like my disc jockey company.

What I Learned? Start With The Fundamentals

My view of how a quality business is built has changed dramatically over the years. I’m much more inclined to rely on systems and on smart business practices than I am on the sexiness of just customer experience and low prices. It isn’t that price and experience aren’t important. On the contrary, I only think that you can have a great experience and a good price point if the basic building blocks of your operation are sound.

5 Questions to Ask your Mortgage Broker Before Signing Anything

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Taking on a home loan can be a daunting experience, and one of the biggest decisions you will ever have to make, so it is crucial to have all the facts at hand when deciding where to get your loan. Despite the solid reputations of the big banks, you should strongly consider mortgage products from the smaller banks, such as the BOQ Clear Path Home Loan, which can offer very competitive interests rates and often beat the big banks hands down.

Mortgage brokers at Free Financial Advisor

Regardless of where you go to get your home loan, the following five simple questions will help you navigate and simplify the process, any mortgage broker worth their salt should be able to give you clear and concise answers.

Do you have references from previous customers?

Whether you are getting renovations done, hiring a new employee, or looking for a babysitter, the first thing you want to have are references from their previous customers. This is such a simple question that it is often overlooked, but getting a home loan is life-changing decision and it makes sense to talk to your brokers previous or current customers to get the low-down on how well they did their job. If this question is met with evasion or shrugged off, its time to find a different broker.

What is the best interest rate you can get me?

The most important factor in any home loan is the interest rate. Having a clear understanding of how the interest rates of various loans are structured enables you to compare loans like-for-like to find the one that suits you best. Some banks try to lure customers in with a special rate, only to have it revert to the standard variable rate after one year or less. Don’t be fooled by such offers, ask your mortgage broker to explain how your interest rate might fluctuate over the entire life of the loan and whether a fixed rate or variable rate loan is best for you.

What are all of the fees will I have to pay?

There are a plethora of fees associated with getting a home loan and you should be wary of fine print and vague language when going through the application process. Ask your broker to explain how all fees are calculated, from first applying for the loan to finally receiving the money, and then on, for the entire life of the loan. Many savvy banks are now offering fee-free applications for their home loans, for example, the Clear Path Home Loan from BOQ. Not having to pay an application fee can take the uncertainty out of applying for home loans, as if you are not successful, or change your mind, you have not committed any money and can move on to consider other options.

Are there any penalties for overpayment or early payment of my loan?

Paying off your loan early is the key to saving money and owning your home sooner. If interest rates drop, and you can afford to pay more, you don’t want to be penalised do you? Ask your broker to explain if any administration fees apply for paying more than your monthly repayment or if there is a penalty for repaying your entire loan early.

What documents do I need to provide and how long will the loan take to be processed?

Supplying the requisite documents is essential to making your application proceed smoothly and quickly. Ask your broker for a complete list of the documents you will need to provide, this will usually include proof of identification and employment, bank statements, proof of your liabilities and assets and depending on your situation, a credit history and tax records. Your broker should be able to give you a clear time-line for the processing of yourapplication once you have supplied all of the necessary documents.

Armed with these five simple questions, you should be quickly able to tell whether your broker is reliable, professional and able to provide you clear answers to help guide you through the application process.