Blog

How To Get A Mortgage – A Step-By-Step Guide

Home Loan

-

December 22, 2022

Buying a new home is always exciting for people, but the process may be difficult for all. Not everyone has the ability to buy a new home in this expensive modern world with hard money. The only solution they left with was to go for mortgage loans.

However, considering mortgages for buying a new home or upgrading your existing home becomes overwhelming if you don’t know the steps and processes.

But what is a mortgage loan?

Well, some banks and mortgage lenders provide loans to people for buying a new property or home. However, these banks and individual lenders have the lien on your property, and they can stop the upgrading or building process if you miss the repayment of debt.

So, it’s risky, but it’s the only solution for people who want their own homes. But the sheer amount of information that you have on mortgages will let you wade through an overwhelming process.

Well, if you can judge the intentions of this loan process, understand the market, and follow some useful steps, you will be able to control tension and proceed accordingly.

What Do Lenders Look For In A Mortgage Borrower?

Understanding what lenders are looking for in a borrower is the key to understanding the whole process.

Various financial information becomes crucial for the lenders to understand the borrower’s financial condition. For example, if you do not have a minimum condition to pay back your loan, a bank will not give you a loan.

In that same way, the lender scouts your financial situation to understand if you have the condition to pay back. Well, among their various scouting approaches, some common lookouts are:

Credit score.
Debt-to-income ratio.
Income and employment history.
Down payment amount.
Types of property.
Assets you have.

Things To Consider Before You Apply For A Mortgage Loan

Homeowners need to be prepared for the instances that they may confront in dealing with mortgage loans. If you decide to go for a mortgage, you will need to work on it in advance.

Things like credit score and debt-to-income ratio are going to be crucial to decide on your loan-taking abilities.

It will also help you to set the bar and consider a better loan-taking approach or condition.

Keep Your Credit Score In Order

Keeping up with a good credit score is a prominent step to ensure the confirmation of getting loans. A good credit score between 650 and 749 is a wise number for getting mortgage loans.

However, 650 is considered the minimum credit score by lenders to be eligible for getting home loans.

Lower Your Debt-To-Income Ratio

Debt-to-income (DTI) ratio is calculated with the amount that you spend on paying your debts against the income that you generate. The higher the ratio is, the riskier it is for the lenders to grant you loans.

However, 36% DTI is considered to be a good DTI. But you can get mortgage loans with a maximum of 43% DTI.

Review Your Budget

Apart from the scores, now it’s time for you to understand your own financial condition. This is not taking a small amount of money and repaying the next day to the neighbor.

Taking home loans is often high, and you will have to look at your capabilities to repay the amount. After analyzing your expenses and income, if you think that you are not still ready to repay the loans with possible conditions, then it’s better not to go for it.

Reviewing your budget and repayment abilities first will help you to forecast the whole scenario in advance.

Try To Save More With Down Payments

The more you can pay at once, the more beneficial it will be for you. An average down payment for mortgages starts from 5%. But if you consider paying less than 20% as a downpayment, then you will also need to consider mortgage insurance.

This will protect the lender from any default on loan. If you pay more as a downpayment, you will be able to avoid higher interest rates.

Get Your Documents In Order

Being ready with your documents will help you to get the loan in advance. In contrast, if you choose to procrastinate, then this section is not for you.

Initially, you can follow these below-mentioned instances and keep the documents ready to get approved instantly by the lender.

Tax returns.
Credit history.
Photo ID.
Proof of assets.
Renting history.

Steps To Apply For A Mortgage Loan

Now, it’s time to focus on the particular steps that you have to follow to engage yourself in the mortgage process.

Choose Your Type Of Mortgage

Applying for a loan largely depends on the type of loan. First, find out the particular mortgage loan that suits your needs and then decide if you want to go for a conventional loan or a government-backed loan.

Also, there are some government-backed loans that will help you to get different types of loans depending on your niche. You can simply check out these loans:

FHA Loan.
VA loan.
USDA loan.

Choose The Lender Wisely

In a mortgage loan, only the lender has not all in their hands, but you have to be wise to find out your best loan partner. So, first, you have to choose the particular mortgage loan lender.

It will help you to be specific with your goals and mitigate your needs in advance. Considering the lender depends on their experience and their ability to provide you the relaxation of interest rates of down payments.

Get Approved

Serious home buyers always try to get pre-approved with mortgage loans. Pre-approved does not mean you will be approved for sure, but it is a step to understand and forecast the negotiations and criteria in advance.

Find A House And Make The Deal

It’s time to get the info and make a deal on your house. Real estate does not wait for anyone, and this industry is never going to go down. So, the only step you can take is to find a house wisely and make a deal as soon as possible after the determination.

Apart from that, look for the incentives some lenders offer for closing costs.

5 Penny Stocks Became Multibagger Stocks in 2022 – 2000% Returns

Stock Market

Shitanshu Kapadia

-

December 15, 2022

0

5 Penny Stocks Became Multibagger Stocks in 2022 – 2000% Returns

The year 2022 was the year of the stock market. The stock market skyrocketed and gave excellent returns to investors.

We are about to enter 2023. 2023-24 as I forsee would be the year of the stock market again. Sensex can reach a level of 75000 in the upcoming year.

Many of you are looking for new opportunities and stocks for investments. Well, in this post I will share 5 Penny stocks that have already become multibagger stocks in 2022. I will also share the method to find future multibagger stocks.

What are Penny Stocks?

Penny stocks are low-market capitalization stocks available at a very low price. The price range of penny stocks in India is Rs.0.50 to Rs.10. These types of stocks are illiquid. The fundamental and business model of these types of stocks is very weak. However, penny stocks can turn out to be multibagger in a short period.

What are Multibagger Stocks?

Multibagger stocks are stocks that provide extraordinary returns to investors. Suppose you have purchased stock with Rs.100 and after a few years you sold it for Rs.500, then it is 5-bagger stock for you.

Similarly, if you got 10 times the returns on your original investment it is 10-bagger stock.

Remember, you will not get an overnight return on these types of stock. You need to wait for a few months or years to get returns.

5 Penny Stocks Became Multibagger Stocks in 2022 – 2000% Returns

#1 Kaiser Corporation

Kaiser Corporation is India based company engaged in printing activities. The company undertakes printing mainly for small and medium corporate labels and cartons.

The stock of Kaiser has given a magnificant return in 2022. The stock price on 3rd Jan 2022 was INR 3 and today i.e on Dec 2022 the stock is trading @ INR 56.

This means Kaiser Corporation penny stock has become multibagger stock by giving 1760% returns in 1 Year.

#2 Alliance Integrated Metaliks

Alliance Integrated Metaliks is a fabricated structure metal manufacturing company. The stock of Alliance Integrated Metaliks has given excellent returns in 2022. The stock price on 3rd Jan 2022 was INR 2 and now it is trading at INR 45.

This means Alliance Integrated Metaliks penny stock has become multibagger stock in 2022 by giving 2150% returns in 1 year.

#3 Hemang Resources Ltd

Hemang Resources Ltd is an India-based company that deals in trading all types of coals, stevedoring, logistic service, and land trading. Hemang Resource Ltd is next in the list of penny stocks to the multibagger stock list of 2022.

The stock of Hemang Resources Ltd was available only at INR 3 in Jan 2022 and Today it is trading at INR 54. This means Hemang Resources Ltd has given 1700% returns to the investors.

#4 Sonal Adhesives Ltd

Sonal Adhesives Limited is one of the largest manufacturers and exporters of BOPP Self Adhesive Tapes and Various types of Speciality Adhesives & Emulsions in India.

The stock of Sonal Adhesives Ltd was available for INR 10 in the year Jan 2022. Today the stock price is INR 115. This means this penny stock has become multibagger stock by giving 1050% returns in 1 Year.

#5 KBS India Ltd

KBS India Ltd is an Investment service provider company. KBS India Ltd helps you to select your investment avenue. The stock of KBS India Ltd has turned out to multibagger stock from penny stock in 2022.

The stock price of KBS India Ltd was INR 10 in Jan 2022 and today the stock price of KBS India Ltd is INR 111. This means the stock of KBS India Ltd has given 1010% returns to the investors.

How to Find Multibagger stocks for Investment?

In order to find multibagger stocks, you can do two types of research/analysis about a stock.

1. Qualitative Analysis

Qualitative analysis is a scientific method of observation to gather non-numerical data about the stock. This includes brands, product range, management, promoter holding etc.

2. Quantitative Analysis

Quantitative analysis is a method of getting numerical (quantity) data about the stock and doing analysis. This includes financials, cash flow, debt level etc.

Qualitative Characteristics

First, let’s try to focus on the qualitative factors of the stocks.

Competitive Advantage

Competitive advantage means favorable circumstances that put business ahead of the competition. It includes products & services. You also need to consider branding as well as a monopoly in business. This factor allows a business to perform better and get price advantage and market share over peers.

In order to find this quality, you need to ask the following questions while analyzing a stock.

Do the company offer unique products? – A company can achieve a competitive edge via unique products. You need to check if the company is offering unique products or not. A company like Reliance Jio is offering Jio Fiber at a competitive rate. This gives a durable competitive advantage of Reliance Jio.

Do the company has established a big brand or in a monopoly business? – Another thing to check is a monopoly in business by the company. A monopoly business means higher profit margin and more returns. A company should have a preferably big brand name and high entry barrier.

Strong and Capable Management

A company should be in a safe hand. You should check for the honesty and capability of the management. Only strong management is not enough. Management should have a future goal and plan to achieve it. To find out this quality you need to ask the following question while analyzing a stock.

Do the company have a clear goal for the business in the future? – A company should be clear about goals and future business prospects. Honest management plays a crucial role here. You can get information about this by reading an annual report or going through management interviews.

In addition to the goal set by the management, you should also look that goals are realistic or not. A company should be able to demonstrate how they are going to achieve that.

You should also check if management has a proven track record and history of achieving past goals or not.

Strong Promoter Holdings

Strong promoter holding is the next important factor to check. Promoter means people that start, fund and operate a business.

A company with strong promoter holding indicates the trust of the founders in the business. A low promoter holding indicates promoter has less faith in the business and they have pulled out money from the business.

A promoter holding should be at least 50% or above. In a few cases, you may not find strong promoter holdings as holding is distributed to multiple holders including institution and public.

Quantitative Characteristics

Now let’s try to look at quantitative factors of the stocks.

The stock should be sound fundamentally. To evaluate the fundamental of stocks you need to check the quantitative characteristics of the stock. You can do that by evaluating the financial statement and quarterly results of the business.

High Earning Growth

Earning growth is the first quantitative factor to consider. A company should have high earning growth. Earning growth is the annual growth rate of earning from investment. This factor provide valuable information such as how fast a company is growing.

One of the best way to know earning growth is via EPS (Earning per Share). EPS is calculated by dividing net profit by total number of shares. This shows how much company is earning against each share. EPS of stock should be higher.

One year EPS is not enough while evaluating. You should consider past three years EPS while evaluating stock.

High Net Profit Margin

High net profit margin is another quantitative factor for consideration. A company should be performing well and should have a high net profit margin. You can calculate Net Profit Margin by dividing net profit by total sales of the company. A multibagger stock should have a higher profit margin.

You should consider the past three years’ net profit margin while evaluating a stock.

Low Debt Level

Debt is bad for any company. It can destroy a business at any time. When you are evaluating stock you should look at the stock with low or nil debt level. A debt-free company is a very good candidate for multibagger.

You can get information about the debt level from the balance sheet of the company.

Free Cash Flow

Free cash flow is the next quantitative factor to consider. Free Cash Flow is total cash left with the company after making capital expenditures such as the purchase of plant, machinery, technology, etc.

Free cash flow can be used for business expansion, new product development, debt payment or dividend distribution. You can get information about free cash flow from the financial statement of the company. You need to subtract capital expenditures from operating cash flow to get this information.

A company should be generating free cash flow year on year. This is one of the factors that helps the stock to become a multibagger.

Money Fraud with Just Miss Call – 5 Tips to Prevent

Money & Wealth

Shitanshu Kapadia

-

December 14, 2022

0

Money Fraud with Just Miss Call – 5 Tips to Prevent

Imagine Someone Transferring big money from your bank account by just giving miss call – How it would be? For many people, it would be a nightmare. In one recent cybercrime case fraudster managed to dupe one person and take away 50 Lakh via fraudster transfer from a bank account.

Yes! In the recent Delhi case, a cybercrook made a big transaction of 50 Lakh from the bank account without asking for the OTP, just by giving repeatedly giving missed calls on a mobile phone. This is the new modus operandi of SIM swap fraud.

I tried to get some more details and more specifically some points that can prevent you from this type of cybercrime. Continue Reading to get the details.

Money Fraud with Just Miss Call – 5 Tips to Prevent

The incident detail is like this. The incident took place on October 10.

One big company director of security services firm received missed calls between 7 PM-8:44 PM.

He responded to some calls and ignored others. It is but natural behavior.

He checked his phone to check messages of RTGS transactions worth of nearly Rs 50 lakh.

Target finds multiple text messages from the bank informing about transactions.

A number of RTGS transactions worth over Rs 50 lakh carried out by crooks from the current account of the man’s company, this is as per the report.

Now cyber crime department suspect that it is due to SIM swap fraud. ‘SIM swap’ may have been carried out by the crooks.

It seems RTGS transfer and OTP is enabled over another phone using SIM Swap. They may have overheard the OTP being mentioned via IVR through a parallel call. This was the main reason for this fraud.

What is SIM Swap/SIM Cloning?

SIM Swap or SIM Cloning means Fraudsters gain access to the customer’s Subscriber Identity Module (SIM) card or may obtain a duplicate SIM card (including electronic SIM) for the registered mobile number connected to the customer’s bank account.

SIM Swapping is also known as SIM splitting, SIM jacking, and SIM hijacking. It is taking over the control of your mobile operations from your existing SIM to another SIM, that is in the control of the cyber fraudster. The cybercriminal gains access to your sensitive personal and financial-related information through this fraud.

Fraudsters use the OTP received on such duplicate SIMs to carry out unauthorized transactions.

Fraudsters generally collect the personal / identity details from the customer by posing as a telephone / mobile network staff and request the customer details in the name of offers such as – providing a free upgrade of SIM card from 3G to 4G or providing additional benefits on the SIM card.

Steps by cyber criminals to do SIM Swap.

Step 1: Information collection

The fraudster employs various techniques to extract your personal information, including –

Phishing or sending fraudulent emails to collect your personal information.
Vishing or fake calls to collect personal details
Smishing or fake text messages (SMS) to collect information.
Malware or software attacks hack into your device.
Shoulder surfing or stealing your passwords by sneakily looking over at you while typing it on your device.
Social media research or collecting your details from your accounts on Facebook, X, Instagram, etc.

Step 2: Activation of new SIM card

The fraudster may carry out this step in the following ways:

Request the mobile operator to port the number to a new SIM

In this approach, after collecting your personal details the fraudsters call the service provider or mobile operator, impersonating you and giving your details by answering relevant identification queries. After convincing the operator, they request to port the mobile number to the new SIM card. The porting request is done on various pretexts like mobile being lost, stolen, broken etc.,

Request the mobile operator to block the SIM

Here the fraudsters approach the mobile operator with a fake ID proof with details collected from you and ask them to block the existing SIM on the pretext that the mobile is lost or hacked. Later using the same fake ID, the fraudster requests to register the same number with a new SIM.

Step 3: Taking control

Once the new SIM card is activated with your number, the fraudster gains access to your mobile operations, passwords, codes, PIN, OTP etc., through which they can operate your bank accounts, do online shopping, hack your social media accounts etc., By swapping the SIM and hijacking your mobile number the fraudster can access your bank accounts and all applications even without passwords. Therefore this fraud can cause a grave threat to mobile users.

What are the signs of SIM Swapping?

Many times it is seen that the subscriber may not even realize that their SIM is Swapped or cloned. By the time they understand the issue and act on it, the fraudster would have caused irreversible loss.

It is, therefore, necessary for any individual to be aware and alert about the following signs that may indicate SIM Swapping:

Inability to make calls or send text messages
Mobile signals not being available for an extended period of time
Social media accounts being hacked can also be a sign
Inability to login to any of your mobile applications
Your login credential for various personal and financial accounts, are not being functional.
Notification that your mobile number or SIM card has been activated elsewhere
Notification that your password or PIN numbers are changed or accessed

5 Tips to Prevent Money Fraud

#1 Never disclose or share private sensitive information

You should never disclose private sensitive information online or on social media accounts or verbally over the telephone. The information such as PAN card number, Aadhar card Number, Birthdate etc.

#2 Set a strong and unique password for your mobile

Ensure that you have a unique and strong password for your mobile. If you can’t remember the password keep a strong pattern that is difficult to guess.

#3 Do not make your mobile number the sole authentication method for your

You can use your email id or authentication app such as Google Authenticator, which is tied up to your physical device rather than your mobile number.

#4 Register for regular SMS as well as e-mail alerts for your banking transactions

This will alert you of any transactions that may happen without your knowledge, enabling you to take immediate corrective steps.

#5 Do not switch off your mobile for a long period of time

Many times fraudster tries to do continuous disturbing calls to make you switch off your phone to do this scam. So, do not switch off your mobile for a long period.

This will make you unaware of the connectivity issues if any on your mobile.

15+ Key Benefits of Tally Software

Information

Shitanshu Kapadia

-

December 14, 2022

0

Tally is software that allows you to manage your business from a remote location. You can start as many businesses as you want, track their sales, and make payments to them on a regular basis.

In today’s fast-paced business world, managing finances efficiently is crucial for success. That’s where Tally software comes into play. If you’re a business owner, accountant, or finance professional, you’ve probably heard of Tally. But what makes it so popular?

Let’s dive into the advantages of Tally software and explore why businesses worldwide rely on it for their financial management needs.

What is Tally Software?

Tally is an ERP (Enterprise Resource Planning) software widely used for accounting, inventory management, payroll processing, and taxation. It simplifies financial transactions and ensures error-free bookkeeping.

With its user-friendly interface and comprehensive features, Tally is an excellent tool for businesses of all sizes, from small startups to large enterprises.

15+ Key Benefits of Tally software

Seamless data movements

The most important advantage of Tally software is its ability to move data across different platforms easily, quickly, and securely. This means that your company can use the same Tally software on your desktop, laptop, or mobile phone. Tally software helps you to count the number of documents, files, and folders on your computer. It allows you to keep track of your documents and retrieve them at any time. This helps in avoiding mistakes that could result from file conflicts.

Easy to use

Whether you are trying to set up a tally gateway server or using an accounting voucher with tally’s easy-to-use interface, you can easily do anything. This is why in tally you can create custom reports based on different criteria such as business requirements and customer insights in no time. Using tally’s intuitive interface, you can view all your records in one place without having to move around from machine to machine or being interrupted by multiple people asking questions about their own records or those of other users.

User-Friendly Interface

One of the biggest advantages of Tally is its simple and easy-to-navigate interface. Even if you’re not a tech expert, you can quickly learn to use Tally without extensive training. The dashboard is intuitive, making financial management a breeze.

Quick and Accurate Accounting

Tally is primarily known for its robust accounting capabilities. It supports multiple accounting functions, such as:

Ledger management
Accounts payable and receivable
Bank reconciliation
Profit and loss statements

GST Compliance and Taxation Support

With changing tax regulations, businesses need reliable software that ensures compliance with GST and other tax laws. Tally makes tax filing easy by automatically calculating taxes and generating reports.

Efficient Inventory Management

Keeping track of inventory is vital for businesses dealing with physical goods. Tally helps you manage stock levels, categorize inventory, and generate stock summaries with ease.

Payroll Processing Made Easy

Payroll can be a hassle, but Tally simplifies the process. It allows businesses to manage employee salaries, deductions, and tax calculations while ensuring compliance with labor laws.

Multi-User and Remote Access

Tally offers multi-user access, enabling different departments to work simultaneously on the same software. Additionally, Tally on Cloud allows users to access data remotely, promoting flexibility and convenience.

High Data Security

Data security is a top priority for any business. Tally provides robust security features such as user access controls, encryption, and automated backups to protect your financial information.

Cost-Effective Solution

Tally software is designed to be affordable and easy to use, so you can buy it without having to worry about whether it will suit your business needs or not. You will also find that it offers a range of features that you may not see elsewhere at such affordable prices. Tally offers an affordable solution for capturing and storing all the information from your field workers or employees. It has sophisticated recording technology that enables you to capture all the information in real-time and store it safely for future reference. This makes tally a reliable tool for processing large volumes of data quickly and securely. It also helps to save money on printouts, paper trails, travel expenses and other costs associated with manual data management processes.

Unlike many high-end ERP solutions, Tally is affordable and provides exceptional value for money. Small businesses can leverage its features without breaking the bank.

Scalability for Growing Businesses

As your business grows, so do your accounting needs. Tally is highly scalable, meaning it can handle increasing transactions, additional users, and expanding operations without compromising performance.

Automated Bank Reconciliation

Manually matching bank statements with your books can be time-consuming. Tally automates the reconciliation process, reducing errors and saving valuable time.

Multi-Currency Support

If your business deals with international transactions, Tally has you covered. It supports multi-currency transactions, making it easier for businesses operating globally.

Detailed Financial Reporting

Tally generates a variety of financial reports, including:

Balance sheets
Cash flow statements
Tax reports
Sales and purchase summaries

These reports help businesses make data-driven financial decisions.

Customization and Add-Ons

Tally is not a one-size-fits-all solution. It allows for customization and integration with third-party applications, ensuring businesses get the most out of the software.

Compliance with Business Laws

Apart from GST and taxation, Tally ensures businesses adhere to financial regulations, auditing requirements, and other legal frameworks necessary for smooth operations.

Saves Time and Reduces Errors

Since Tally automates various financial processes, it significantly reduces manual errors and saves time that would otherwise be spent on calculations and data entry.

Easy and fast document access

Using tally software is simple and easy. You don’t have to spend time learning how to use it, as it comes with a wizard that guides you through the process. You can easily access all your files from a single location in just a few seconds without having to go through endless menus or pages of instructions. costly, time-consuming, and even embarrassing.

Conclusion

Tally software is a game-changer for businesses looking for an efficient, reliable, and cost-effective accounting solution. With its user-friendly interface, robust features, and compliance support, it’s no surprise that Tally is a favorite among financial professionals worldwide.

Whether you’re managing accounts, tracking inventory, or handling payroll, Tally streamlines your financial operations, saving time and improving accuracy. If you haven’t already, it’s time to consider Tally as your go-to business management software!

FAQs

1. Is Tally suitable for small businesses?

Yes! Tally is ideal for small businesses due to its affordability, ease of use, and essential features like accounting, tax compliance, and inventory management.

2. Can Tally be used for GST filing?

Absolutely! Tally automatically calculates GST, generates tax reports, and ensures compliance, making tax filing effortless.

3. Does Tally support cloud-based access?

Yes, Tally offers Tally on Cloud, allowing users to access data remotely and work from anywhere.

4. Is Tally available for free?

Tally offers a free trial version, but for full access to all features, a paid license is required.

5. Can Tally handle multi-currency transactions?

Yes, Tally supports multiple currencies, making it perfect for businesses that operate internationally.

Tally software is a must-have for businesses aiming to simplify financial management and improve efficiency. Ready to streamline your accounting process? Give Tally a try today!