Glance through the 5 financial tips for the third week of November 2012.

Tip no 1: Take out the mortgage loan from a trust-worthy lender so that the monthly payments do not get changed suddenly.

Money has an important place in your life. So, you need to take care of it. When you're planning to purchase a house, make sure you take out a loan from a lender who is trust-worthy. You need to know how much you'll have to spend on monthly mortgage payments. If you take out a loan from an unreliable lender, then your finances can be at stake. The lender may charge lots of fees on the loan later on. He may not also disclose the true cost of loan at the time of origination. He will keep you in dark about the payments. Later on, you'll see that the cost of the loan has escalated suddenly.

Tip no 2: Settling an account in collection does not boost your credit score.

You're paying less than the original amount while settling a debt. You're not paying the full debt amount. So, debt settlement will certainly hurt your credit score. The second thing is, the account has gone to collections as you've not made any payments for a certain number of months. This has already made a negative impact on your credit score. In fact, it'll continue to hurt your credit score in the coming days also. However, the effect will lessen with time.

You need to take steps to repair your credit after settling a debt. You need to make timely payments on other debts continuously. You've to ensure that all the wrong listings are eradicated from your credit report.

Tip no 3: Alimony is a taxable source of income.

Internal Revenue Service regards alimony as a taxable source of income. You need to report the money received from alimony to the IRS. You've to consider this as your income. You can use the form 1040 to report alimony that you've received from your spouse. You can write this information on the line no 11 of the form.

Make sure you report the full amount. Skip the amount you've obtained for child support. If you decide to not inform the IRS about the alimony you've received, then be prepared to face the consequences. You may have to pay a penalty to the IRS.

Tip no 4: Reaffirm your debt as you file for bankruptcy, and make sure it is done before the dismissal of your case to make it simpler and easier.

It is best to reaffirm your debt before you get bankruptcy discharge. Reaffirmation is an agreement made between you and your creditor. You'll be held responsible for the debt. Bankruptcy won't make an impact on it in any way.

Give detailed information about your income and expenses to the creditor. It will help him know if you can afford to make the monthly payments. In case the creditor thinks that it is not possible for you to make the monthly payments, then you won't be permitted to enter into the reaffirmation agreement. The court won't permit you to reaffirm the debt.

Tip no 5: Being a first-time home buyer, get help from experienced people so as to avoid making any mistake in the home buying process.

You need to do so many things while buying your first home. You've to take out a mortgage loan, appraise the home, check out the price of the house, etc. A single mistake can cost you a lot of money. You wouldn't want to face that kind of a situation.

Seek guidance from your friends or family members who have already bought homes in the past. They can tell you the tips and tricks to get a good deal. They can give you the inside information on the housing market. They can warn you about the scams. This will be beneficial for you.