Money Management

There are many buyers vying for homes today. Read on to see how to work around that. 

There’s a reason so many people have struggled to buy a home in 2023. Not only have mortgage rates been relatively high, but housing inventory has been notably low.

As of the end of April, there was only a 2.9-month supply of available homes on the market, according to the National Association of Realtors. That’s well below the four- to six-month supply of homes that’s generally needed to satisfy buyer demand.

Recent data from Bank of America found that 55% of prospective home buyers think this year’s housing market is more competitive than last year’s, even with mortgage rates being higher today. Only 18% say today’s market is less competitive, while 27% think 2023’s market is about the same as 2022’s.

If you’re having a hard time navigating today’s competitive market, there are a couple of steps you can take to give yourself an advantage over your competition — and perhaps make the process of trying to buy a home less stressful.

1. Get pre-approved for a mortgage

A mortgage pre-approval letter is not the same thing as an actual mortgage approval. But it’s a step in that direction.

During the pre-approval process, you’ll generally need to provide a mortgage lender with financial information — notably, wage details. You may have to provide copies of recent pay stubs and tax returns so a lender can verify your income. From there, a lender will tell you what mortgage amount you’re pre-approved to borrow.

The upside of getting a mortgage pre-approval letter is that it shows sellers that you’re a serious buyer whose finances have already been vetted. Now if given the choice between a buyer with mortgage pre-approval and a cash offer, a seller might opt for the latter since it’s more of a sure thing. Even with mortgage pre-approval, a home loan has the potential to fall through.

But let’s say you and a couple of other buyers are interested in purchasing the same home, and you all make similar offers. If you’re the only one with a mortgage pre-approval letter, the seller may be more inclined to work with you. That’s because you’ve taken an extra step to prove that you’re capable of getting a mortgage.

2. Make a strong offer from the start

A mortgage pre-approval letter may or may not be enough to help you avoid a bidding war in today’s housing market. If you want to steer clear of a situation where you’re duking it out with other buyers, aim to make a strong offer from the start, provided it works for your budget.

Let’s say there’s a home in your target neighborhood that’s reasonably priced at $400,000. Let’s also say you can afford to spend up to $500,000 on a home.

If you go in with an offer of $410,000, the seller may be inclined to entertain other offers. But if you go in at $440,000, the seller may decide that your offer is strong enough and accept it without waiting for others. That could result in you spending less on a home than what you’d otherwise spend in the course of a bidding war.

Today’s housing market certainly isn’t easy for buyers. But getting mortgage pre-approval and being strategic with your offers could be your ticket to getting to buy a home this year.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Bank of America is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has positions in Bank of America. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy.

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A membership is required to shop at Sam’s Club. Keep yours in good standing by learning what can lead to a Sam’s Club membership getting revoked. 

If you like shopping at Sam’s Club, the last thing you want is to lose your membership. Since it has a large selection and reasonable prices, it’s a great place to shop without too much of a hit to your finances. Fortunately, Sam’s Club doesn’t go around canceling people’s memberships for no reason. That wouldn’t be a great way to run a membership club.

However, it does reserve the right to revoke membership, and it lists actionable offenses that could lead to this on its website. Here are the most common reasons for people to have their Sam’s Club membership revoked.

1. Writing bad checks

Bounced checks could get you bounced from Sam’s Club. You might be able to fix this if it’s a one-time issue, but not if it happens on a regular basis. A better option is to pay with a rewards credit card instead of a check, so you can earn cash back or points on your purchase. If you’re one of the store’s frequent shoppers, there are Sam’s Club credit cards that are worth checking out.

2. Shoplifting

Like most of the actionable offenses on Sam’s Club’s list, this one’s pretty self-explanatory. Most stores ban people who get caught trying to shoplift. With those that require a membership, including Sam’s Club and Costco, they’ll usually take away your membership.

3. Violent behavior

Your local Sam’s Club is not the place to throw down, even on Black Friday. You’ll most likely lose your membership, plus there’s the whole “could get arrested and spend the night in jail” part.

4. Abusive, disrespectful, or threatening behavior toward an associate; profanity used toward an associate

It should go without saying, but sadly, not all customers treat retail employees well. Sam’s Club considers practically any type of rude behavior toward its associates as an actionable offense. That gives it plenty of leeway to revoke memberships of problem customers.

5. Questionable returns

Return abuse is a common issue for retailers, especially those with generous return policies. It’s the No. 1 reason people have their Costco membership revoked, and it’s also an actionable offense at Sam’s Club.

You don’t need to worry if you have a legitimate return to make every now and then. Even if it has been months, or years since you made the purchase, Sam’s Club lets you return most items at any time. This stipulation about questionable returns is designed for the small percentage of customers who try to game the system. Here are a few examples of what can qualify:

Returning a large number of your purchases.Frequently returning items you’ve had for a long time.Committing any sort of return fraud, such as trying to pass off an old laptop or phone as a new one.

Most members won’t have any problems

The reasons listed above are the actionable offenses that Sam’s Club specifically mentions. It can technically revoke your membership for any reason, without cause.

The typical shopper doesn’t have anything to worry about. All the things Sam’s Club will ban you for aren’t exactly normal customer behavior. If someone tries to steal, start fights, or return 90% of what they buy at Sam’s Club, their membership could be revoked. The people who just shop there, enjoy the deals, and don’t yell at the employees can have a membership for as long as they want.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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When a business owner wants to expand into the foreign market, the SBA can help. Here’s how its Export Express loan propels a company forward. 

Since 1953, the Small Business Administration (SBA) has provided mentoring and counseling sessions to small business owners. It has helped entrepreneurs land important contracts and delivered millions of loans and loan guarantees. One type of SBA-guaranteed loan is called Export Express, and as the name suggests, it helps businesses access up to $500,000 in financing for a variety of expenses related to exporting their products and services. Here’s how the Export Express program works.

At a glance

Export Express represents a streamlined method to obtain SBA-guaranteed financing up to $500,000. While business owners apply for the loan through an SBA-approved lender, the SBA responds to applications within 24 hours. Here’s a snapshot of what an Export Express loan has to offer:

How the process works

A business owner who decides they want to expand into international markets accesses the SBA’s list of approved lenders and then works directly with one of the banks. The SBA guarantees a portion of the loan, making it easier for the applicant to have their loan approved. The percentage guaranteed depends on the amount borrowed.

The applicant provides all information required and fills out lender-specific forms. Whether the business owner is required to provide loan collateral depends entirely on the policies and procedures of the lender.

Financing may be provided through a line of credit or a standard-term loan. Once the type of loan is established, the business owner and lender negotiate an interest rate that cannot exceed the maximum set by the SBA. For most, the rate is considerably lower than the business owner would be offered through a business credit card.

The bank goes through its approval process, understanding that this loan is backed by the SBA and that the SBA will repay a percentage of the loan if the business owner fails to make payments as agreed.

Once the lender has made a decision, it submits information about the business owner to the SBA. And because the process is streamlined, application results should be back to the business owner in roughly 24 hours.

How can the Export Express loan be used?

As long as an expense is related to export business, the Export Express loan proceeds can be used to cover it. Here are some examples of activities covered by the Export Express loan:

Purchasing new equipment or real estateParticipating in trade shows overseasAcquiring new inventoryTranslating documentation in foreign languages (For example, if you want a foreign company to read a project proposal, the loan will cover the cost of translation.)Paying for standby letters of credit

Eligibility

Not every business will qualify for an Express Export loan. Applicants must meet the following requirements:

Must have been in operation for at least 12 full months. This requirement may be waived if company leadership has sufficient export expertise and the lender approves the application after putting it through the underwriting process.Loan proceeds will be used for export development activity.Loan proceeds will allow the small business to enter into a new export market or expand its existing export market.Proceeds will not be used to finance foreign operations, other than the marketing or distribution of products and services exported from the U.S.The Export Express loan is not used to refinance an existing SBA-guaranteed loan.

When a business owner has big plans but needs money to underwrite those plans right away, the Export Express loan can make it happen. Loans are just one of the many services offered by the SBA. When an entrepreneur is confused about which loan is right for them, the SBA will walk them through their options.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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