Littlejohn Law - August/September 2023

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Close on Your Home Confidently HOMEBUYER PITFALLS YOU WANT TO AVOID

Medical expenses have steadily risen over the years, and individuals who have undergone extensive and invasive procedures have felt the cost increase. Even with insurance and payment plans, these expenses can drain your bank account in a few short months. To combat this, many health care providers have started offering medical credit card accounts to help spread the cost over time. If a doctor, dentist, or medical specialist has recommended a pricey but necessary treatment, they may have offered to open a CareCredit or Synchrony account in your name. As tempting as it might be, you need to educate yourself about the fine print before signing up. Like everything in life, there are good and bad sides to opening a medical credit card to pay for treatment. The good side of these charge accounts is relatively apparent, and the benefits coordinator or salesperson who tries to get you to sign up will focus heavily on these positives. If approved, you can put some or all of the medical expenses on the card and pay it off over time. Most of these financing companies will offer 6–18 months of zero interest, so it can be an excellent option for people who can manage their credit and have the funds to pay it off in the allotted time. Healthy Financing or Financial Strain? IS A MEDICAL CREDIT CARD RIGHT FOR YOU?

Buying a home is often one of the most significant purchases we will make in our lives. Not only do homes cost hundreds of thousands of dollars, but they’re also the place where we’ll spend the majority of our time. Once you’ve completed the closing process for your home, there’s no turning back, so you must be absolutely sure about your decision. Buying a home is a huge step in your life, especially if it’s your first home. Unfortunately, this process doesn’t always get the attention it deserves, causing people to make easily avoidable mistakes. Below, we’ll discuss a couple of these mistakes and why it’s important to avoid them when you purchase your next home. Ignoring the inspection report. Having an inspector conduct a home inspection is highly recommended before you close on a home. Your Realtor will likely have a preferred inspector for you to hire, and you should make sure to call them. Inspections only cost a few hundred dollars but can save you much more in the long run. They’ll look over every part of the property and inform you if anything needs to be replaced or if there are any areas of concern. Once you receive your inspection report, be sure to examine it thoroughly. A good inspector will walk you through the entire report, providing guidance and advice along the way. You should also look through the report yourself. We’ve spoken with many people who wanted to sue a home inspector for missing damages, but when we look at the report, they’re on there as clear as day. Using the same Realtor as the sellers. Both parties involved in the home-buying process should have their own real estate agents. This is especially important for the buyers. Realtors make a commission when they can successfully buy or sell a home for their clients. If the Realtor represents both parties, they may push the buyer to purchase the house even if it’s not in their best interest. Too often, we’ve seen someone buy a home that went bad because they used a dual Realtor. It’s not worth the risk; hire a different real estate agent than the seller.

The problem with that interest-free period is if you miss or, in some cases, are late on a payment, the interest begins to accrue immediately. That interest is no

joke, either! It’s often upward of 25%, and once that tacks on, it will feel like you’ll never be able to pay off the account.

Another thing to remember is that these credit card companies and some medical professionals who push them only have their own interests in mind. They don’t care if you’re already in extreme debt or live off a

fixed income. Once you sign that agreement and treatment has been provided, there’s no backing out. Take some time to think about the terms of the credit contract and your other options before enrolling in a medical credit card. If you’re not in the best financial situation, it may cause more harm than good.

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