Digital money these days allows us all sorts of financial freedoms that weren’t even dreamed about 20 years ago. Saving for the future, managing your 401k, and watching your portfolio grow is all in the name of automation, but have you considered automating your expenses too?
Automated bill pay is offered by most modern financial institutions as well as utility providers and can be a great tool to automate your finances. And while automation is a great way to go about things, there are both good and bad. Here are some thoughts on automating bills before buying.
Peace of Mind
Automating your bill paying gives you the peace of mind that you’ll never miss a payment. Unfortunately, this out of sight, out of mind mentality can leave you a little stressed while ensuring that your bank accounts have the cash needed to subsidize your automation.
All of this, though, should help you keep better organized and give you a little more freedom to focus on things that are more important. The time savings of not having to sit down, pay bills, and physically mail them is worth its weight in gold alone!
Discounts
Depending on what kind of bills you’re paying, you may be eligible for certain ACH draft or auto pay discounts from your provider. Many retail vendors offer discounts to their customers if full invoices are paid on or before the due date, and while this is still a fairly new concept to service providers, they’re beginning to catch on.
If you’re paying back student loans, for example, you may be eligible for a .25% discount on your interest rate just by enrolling in auto pay. Depending on whether your degree was in physical fitness or astrophysics, this could be a huge discount over time and save you thousands of dollars in repayment.
Automated Paper Trail
This point is both good and bad when it comes to home buying. The great thing about automated bill pay is that you have a paper trail of what you’ve spent each month and can easily categorize those expenditures and track what cash is flowing out. Unfortunately, this can expose a lot of your lifestyle and how much you spend which can cause some concern.
Again, this is great in that you can easily produce the documentation needed when it comes time to get a mortgage but just as easily can cause you to call into question what you’re paying for, how you’re affording it, and if you can continue to afford it in a new home. On the flip side, you can reevaluate your service providers and find where you can save on rates as well as making subtle lifestyle changes.
Give Your Lender the Info They Need
This data is both easy for you to provide and easy for a lender to mull over when reviewing a loan application.
When you’re ready to get pre-qualified, then get in touch with Tidewater Mortgage Services, Inc. 20 years of experience has given Tidewater the leg up on helping both new and experienced homebuyers alike secure the mortgage they need for their home purchase. Our simple online application only takes a few minutes and could get you pre-qualified for the mortgage you need for your new home.
