I recall the locker room scene in the movie Jerry McGuire where Tom Cruise was struggling to keep his only sports management client, Rod Tidwell. Jerry was pleading with Tidwell, “Help Me Help You!”
Tax preparation is an area where tax preparers need your help to help you. Sometimes items can fall through the cracks and end up costing you tax dollars. The way to prevent this is by proactively talking with your tax preparer. While I work very hard to know my clients, sometimes CPAs don’t have the luxury, due to the enormous number of returns prepared, to know the goings on in most of their clients’ lives. Due to the time constraints in a normal client –CPA tax meeting, information can get overlooked. This can be costly!
The most important thing you can do as a tax client is to communicate with the preparer. It’s also important that the preparer communicate with you. If you feel you are not getting the communication you deserve, then it is time to find a new tax preparer.
One of the best ways to communicate with the preparer is by asking questions. Most folks don’t understand the IRS tax code, so by asking questions you can stimulate conversations that may lead to the discovery of a deduction.
If the lines of communications are open between you and the preparer, and the preparer knows and understands your situation, the preparer should be able to “Show You The Money!”
Monday, January 26, 2009
When Buying or Refinancing a Home You Should…
Make sure you understand the fine print!
It’s a great time to buy or refinance a home. Interest rates are extremely low (As of Jan 2009 a no points, 30 year fixed, mortgage rate of 5% is very common). While this great interest rate opportunity creates a terrific chance to lower your monthly payment, it also can create confusion. The confusion lies in understanding the good faith estimate (GFE) and the HUD closing statement.
The GFE is the proposal the lender sends to you outlining your projected closing costs and the new mortgage payment amount. So often people will only look to the bottom line of their GFE to determine their new monthly payment and disregard the closing cost and fees. This can be a big mistake!
You must read the fine print, or have someone who understands these documents read it for you. Once you are comfortable with the information on your good faith estimate, you should request to review the actual closing statement a day or two before the closing. If you find mistakes, ask to have corrections made.
Closing costs and fees make buying or refinancing a home a very expensive process. The costs and fees associated with the transaction are thousands of dollars. You are paying these costs, so make sure you understand what you are paying for. If you don’t understand, ask for clarification.
It’s a great time to buy or refinance a home. Interest rates are extremely low (As of Jan 2009 a no points, 30 year fixed, mortgage rate of 5% is very common). While this great interest rate opportunity creates a terrific chance to lower your monthly payment, it also can create confusion. The confusion lies in understanding the good faith estimate (GFE) and the HUD closing statement.
The GFE is the proposal the lender sends to you outlining your projected closing costs and the new mortgage payment amount. So often people will only look to the bottom line of their GFE to determine their new monthly payment and disregard the closing cost and fees. This can be a big mistake!
You must read the fine print, or have someone who understands these documents read it for you. Once you are comfortable with the information on your good faith estimate, you should request to review the actual closing statement a day or two before the closing. If you find mistakes, ask to have corrections made.
Closing costs and fees make buying or refinancing a home a very expensive process. The costs and fees associated with the transaction are thousands of dollars. You are paying these costs, so make sure you understand what you are paying for. If you don’t understand, ask for clarification.
Welcome!
Welcome to The Financial Minute. This blog is designed for clients and friends of Von Haefen Financial Management. It is my intention to write about topics that you will find useful and interesting. I will also strive to write about timely topics, such as tax information during tax season. Since I know all of you are extremely busy, it is my goal to only take a minute or two of your time. I encourage topic suggestions, so feel free to let me hear your opinions.
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