LIFESTAGE RESOURCES - Young Adults

SAFE Federal Credit Union cares about young adults! Just for our young adult members, ages 18 to 24. We want to help young adults save more, learn about money, and have some fun! First Term also features information and activities about spending, sharing and earning money wisely.

Please access financial education tools sponsored by SAFE Federal Credit Union from this location. If you have questions or need assistance, feel free to give us a call. See why at SAFE - Membership Matters. We offer many products and services to meet your financial needs.

South Carolina Credit Unions are cruising the state to examine just how many people are aware of the benefits of credit union membership. We're willing to pay those already in-the-know and explain to those willing to learn! Click the image to learn more.

Money Mix

You have goals and dreams. Will you have the money?
Get your money working towards your goals and future without sacrificing the present with MoneyMix^TM: Launch Your Life. It's a free collection of financial tools and articles geared specifically for the opportunities and challenges young adults are facing today. You can even discuss ideas and issues with peers on our interactive blog. Topics include:

Budgeting that matches your priorities
Savings plans that work
Making use-not abuse-of credit

Take advantage of MoneyMix^TM and unlock your potential.

brass | MAGAZINE

SAFE Federal Credit Union would like to show our appreciation to our young adults, ages 18 to 24, by sending you complimentary email newsletters of brass|MAGAZINE. Focusing on the money side of life™, brass is a money magazine produced by young adults. For the services you need - remember SAFE Federal Credit Union. Visit brass online.

Simple & FREE Checking

Have you looked at the benefits of your checking account lately? SAFE & Simple Checking* is simpler than ever, plus it's a free account with no per check fees. Enjoy a checking account that simplifies your life, especially when you use it for direct deposit of paychecks, Social Security or pension checks.
• No minimum balance
• No monthly or per check fees
• Earn dividends when average daily balance is over $500 for the month
• Free Visa® Debit Card
• Free 24/7 online account access with SAFENET and SAFE Touch
• Bill Pay available - Free for eMembers
• Free ATM access to over 25,000 CO-OP machines
• Free online or call-in check reorder
• First 150 checks free for new accounts with direct deposit
• Unlimited check writing
• Overdraft protection from line of credit or regular share account with FREE automatic transfers

* All accounts subject to approval

69% of first-time home buyers used savings and 26% received a gift from a friend or relative for their down payment, according to a 2008 survey from realtor.org.

House-Purchase Prep: Baby steps that lead to front porch steps
by Doug Fath--Philadelphia, PA

Buying a house will most likely be the largest purchase in anyone's life. But it can't be done overnight. It takes time, money and preparation. So start the basic groundwork as soon as possible.

The science of saving
Start saving today. The ideal down payment is 20% or more of the home cost, but 4% was the average down payment for first-time buyers in 2008. A down payment lower than 20% means you'll pay private mortgage insurance, qualify for fewer types of mortgages and probably pay a higher interest rate. According to the National Association of Realtors, in 2008 the typical first-time home buyer in the U.S. spent $165,000 on their new home. This means that the typical first-time home buyer needed to save $6,600 for a 4% down payment.
While saving, make sure to earn as much interest as possible. Park some income in a high-yield savings account.

Income indicator
Income is a key variable a lender will look at in approving you for a mortgage. Typically lenders want the housing expense ratio-mortgage payment, insurance, taxes-to be 28% or less of gross income. They also look at the total expense ratio-housing expenses plus fixed monthly bills-which shouldn't exceed 36% of gross income. If you don't meet these requirements, you might not qualify for a mortgage. Even if you do qualify, a high ratio might be an indication that you should wait until you have more income to buy a house, so that housing expenses aren't overwhelming.

Credit matters
Aside from income and a few other factors, a financial institution will base a large part of their decision to lend on your credit score. Your credit score and credit history affect the interest rate on a mortgage. Find out your credit score by going to myfico.com. Also, get a free copy of your credit reports from each of the three major credit reporting agencies (Equifax, Experian and TransUnion) at annualcreditreport.com. Verify that the information is correct; 79% of credit reports have errors, most caused by simple human mistakes. Contact the credit agencies to fix any inaccurate information. If your credit isn't as good as it should be, take the time to build up your score.

The end game
Regardless of how long it takes until you're ready to buy a house, the last prep step is getting pre-approved for a mortgage by a financial institution. Doing this before house shopping establishes how much you're able to borrow, and gives you the confidence that you're ready to purchase if you find the right house.

It takes more than reaching the magical age of "old" to buy a house. If you want to purchase one eventually, there's no time like the present to start getting ready.

The Bottom Line
Preparing now (by securing a better credit score and a larger down payment) can shave off thousands of dollars over the life of a mortgage.
Sources: realtor.org; money-rates.com; credit.com; ftc.gov; frbsf.org; myfico.com; bankrate.com; annualcreditreport.com; uspirg.org; msnbc.msn.com; fool.com

brass|MEDIA Inc. licensed content is provided with the understanding that the publisher, copyright holder and organizations distributing the magazine are not rendering investment, financial or other professional advice. Investment and other financial decisions depend on each reader's individual facts and circumstances. You should not make decisions based on information contained in licensed brass content without the advice of a qualified professional.

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