Roofing
Just like if your roof needs to be taken care of, you want to first consult a professional. Most people buying a home think they have to do it alone. There are many organizations and companies willing to help you if you take the first step. My goal is to educate the borrower and give them insight. I have been in the mortgage and finance business for about 5 years. I worked with one of the largest retail banks in the country. I then began to realize that there are so many people that want homes but do not have the resources to obtain financing. So I decided to do my part in educating and consulting. The mortgage business is an ever changing and A great way to add useful content to this newsletter growing field. Having a knowledgeable professional on your side lightens the stress. Mortgage brokers can offer you insight as well as many options in obtaining a mortgage. Real estate agents can offer you the same insight in finding a home and negotiating a contract. Mortgage brokers not only have more mortgage options they have a higher acceptance percentage than traditional banks. I have seen someone with a credit score as low as 580 get 100% financing. Keep in mind that 100% financing is for the loan amount. This means you may need money for closing costs. A lot of people think about government loans with 100% financing but fail to realize that many requires the borrower to bring in at least 3% to closing out of pocket. Unfortunately, I can’t go into great detail on every situation but I can give you the tools and resources and offer my services to you. I will say this again, buying a house is the most important investment you can make. Don’t cheat yourself but educate yourself so you can make the best possible choices and keep your roof from leaking.
Tuesday, May 29, 2007
Building Your Home Buying Skills
Putting Up The Walls
Ok, you are almost there. So far we’ve laid the foundation. Also we’ve did the framing. Now we have to put up the walls. The walls are going to be something that each individual will have to deal with. When you get ready to buy a home somehow you come in contact with home buying professionals. Let me clarify that home buying opinionators. Basically, you’re going to hear all the dos and don’ts as well as the pros and cons. Some advice you get may be good and some may be bad. The key is to keep those walls up and not be discouraged from your goal. Everyone that purchases a home has a different experience whether good or bad. But hey, if everything was easy it wouldn’t be worth it. My advice would be to not discuss your situation with a lot of people. This will filter out any negative or impeding information Surely you’re thinking what if I have questions, and you will? What if I need some direction in what types of loans or what direction I should go? The best thing to do is write down your questions as you can. Don’t rob yourself of information. Ask as many questions as you can. Don’t ever feel embarrassed. This is a major part of your life and having the knowledge can alleviate some of the stress.
Ok, you are almost there. So far we’ve laid the foundation. Also we’ve did the framing. Now we have to put up the walls. The walls are going to be something that each individual will have to deal with. When you get ready to buy a home somehow you come in contact with home buying professionals. Let me clarify that home buying opinionators. Basically, you’re going to hear all the dos and don’ts as well as the pros and cons. Some advice you get may be good and some may be bad. The key is to keep those walls up and not be discouraged from your goal. Everyone that purchases a home has a different experience whether good or bad. But hey, if everything was easy it wouldn’t be worth it. My advice would be to not discuss your situation with a lot of people. This will filter out any negative or impeding information Surely you’re thinking what if I have questions, and you will? What if I need some direction in what types of loans or what direction I should go? The best thing to do is write down your questions as you can. Don’t rob yourself of information. Ask as many questions as you can. Don’t ever feel embarrassed. This is a major part of your life and having the knowledge can alleviate some of the stress.
Building Your Home Buying Skills
FRAMING
The saying “Knowledge is Power” is very true. Understanding the mechanics of buying a home is the first thing you want find out. As you know credit and cash play a major role in buying a home. Yes, nothing makes home buying less stressful than having cash on hand. So go to your piggy bank and count how much you have. And last but certainly not least is collateral. More than likely the home you are buying will be sufficient collateral. Now that you have the blueprint you can start putting up the frame.
Credit oh credit! We all have it, some better than others but don’t worry, there is loan for all of us. The key is knowing what is on your credit. If you don’t know then how can you make an informed decision on anything dealing with it? The first thing, if you haven’t already done so, is get a copy of your credit reports NOT REPORT but REPORTS. Your credit is recorded by 3 major credit reporting agencies. Equifax, Experian, and Trans Union. These are the folks who report how credit worthy you are. So think about that hospital bill you didn’t pay because you thought they over charged you. Well it may be on there. The good news about obtaining this information is now simple and free. You can now go to http://www.annualcreditreport.com/ and receive a credit report from all three bureaus. Cash, yes this is an easy One either you have or you don’t. Don’t sweat it. Focus on the positive. Many of today’s home buyers do not have a lot of cash to put towards their home purchase. Knowing what you do have however can prepare you for things ahead and out of pocket expenses that can occur before the big day. Now let me specify what cash really is or should I say what it isn’t. Cash isn’t that $2000 under your mattress or that $500 your uncle said he will give you when you need it. It is verifiable monies. That is money that you and the IRS know about. So if you don’t have a checking and savings you need to get them. That is one thing lenders will look for. Bank accounts show stability. Also you should start tracking your spending habits. Even if you just write down your day to day purchases it gives you an idea of where your money is going. Now the last thing is the most important the reason for everything. Collateral or better know as the house you are buying or the house you are selling to buy another house. Either way, go for it find that house. Even if it’s not the best house on the block it will be yours. The key is to understand that your home will grow in value and from that you can sell it and buy a better home. Begin building your portfolio and start with your most important asset your home!
The saying “Knowledge is Power” is very true. Understanding the mechanics of buying a home is the first thing you want find out. As you know credit and cash play a major role in buying a home. Yes, nothing makes home buying less stressful than having cash on hand. So go to your piggy bank and count how much you have. And last but certainly not least is collateral. More than likely the home you are buying will be sufficient collateral. Now that you have the blueprint you can start putting up the frame.
Credit oh credit! We all have it, some better than others but don’t worry, there is loan for all of us. The key is knowing what is on your credit. If you don’t know then how can you make an informed decision on anything dealing with it? The first thing, if you haven’t already done so, is get a copy of your credit reports NOT REPORT but REPORTS. Your credit is recorded by 3 major credit reporting agencies. Equifax, Experian, and Trans Union. These are the folks who report how credit worthy you are. So think about that hospital bill you didn’t pay because you thought they over charged you. Well it may be on there. The good news about obtaining this information is now simple and free. You can now go to http://www.annualcreditreport.com/ and receive a credit report from all three bureaus. Cash, yes this is an easy One either you have or you don’t. Don’t sweat it. Focus on the positive. Many of today’s home buyers do not have a lot of cash to put towards their home purchase. Knowing what you do have however can prepare you for things ahead and out of pocket expenses that can occur before the big day. Now let me specify what cash really is or should I say what it isn’t. Cash isn’t that $2000 under your mattress or that $500 your uncle said he will give you when you need it. It is verifiable monies. That is money that you and the IRS know about. So if you don’t have a checking and savings you need to get them. That is one thing lenders will look for. Bank accounts show stability. Also you should start tracking your spending habits. Even if you just write down your day to day purchases it gives you an idea of where your money is going. Now the last thing is the most important the reason for everything. Collateral or better know as the house you are buying or the house you are selling to buy another house. Either way, go for it find that house. Even if it’s not the best house on the block it will be yours. The key is to understand that your home will grow in value and from that you can sell it and buy a better home. Begin building your portfolio and start with your most important asset your home!
Friday, May 25, 2007
Building Your Home Buying Skills
Foundation
Tired of renting? Sure you are! No one wants to throw their money away, right? (If you are not tired of renting disregard that last statement) But for the rest of us who are tired of paying someone else’s mortgage, car payment and child’s private school tuition. Just incase you didn’t know, that is where your money goes every month you write your check or money order and give it to your land LORD.
Now seriously, think back to your days in school. I will give some of you a little more time to think…. If you can recall, we were taught History, Math Science, English, and the most important, physical education (P.E.). Now these subjects help us greatly but they lacked one thing. They didn’t teach us about life and life’s challenges. Well this is where I come in. I want to educate the community about one of life’s most important subjects. HOME BUYING! Why does it seem so hard for some and so easy for others? Well there are a lot of factors to that answer. Unfortunately, I can’t explain every last one. However I can give you insight and the information on how to get those answers. What you do with the information is your up to you.
Tired of renting? Sure you are! No one wants to throw their money away, right? (If you are not tired of renting disregard that last statement) But for the rest of us who are tired of paying someone else’s mortgage, car payment and child’s private school tuition. Just incase you didn’t know, that is where your money goes every month you write your check or money order and give it to your land LORD.
Now seriously, think back to your days in school. I will give some of you a little more time to think…. If you can recall, we were taught History, Math Science, English, and the most important, physical education (P.E.). Now these subjects help us greatly but they lacked one thing. They didn’t teach us about life and life’s challenges. Well this is where I come in. I want to educate the community about one of life’s most important subjects. HOME BUYING! Why does it seem so hard for some and so easy for others? Well there are a lot of factors to that answer. Unfortunately, I can’t explain every last one. However I can give you insight and the information on how to get those answers. What you do with the information is your up to you.
Tuesday, April 24, 2007
Five Factors Of Credit Scoring
The Five Factors of Credit Scoring
Credit scores are comprised of five factors. Points are awarded for each component, and a high score is most favorable. The factors are listed below in order of importance.
1. PAYMENT HISTORY – 35% IMPACT
Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Missing a high payment will have a more severe impact than missing a low payment, and delinquencies that have occurred in the last two years carry more weight than older items.
DON’T PAY OFF COLLECTIONS OR CHARGE-OFFS – Once your loan application has been submitted, don’t pay off collections unless the lender specifically asks you to in order to secure the loan. Generally, paying off old collections causes a drop in the credit score. The lender is only looking at the last two years of activity.
DON’T CLOSE CREDIT CARD ACCOUNTS – If you close a credit card account, it can affect your ratio of debt to available credit which has a 30% impact on your credit score. If you really want to close an account, do it after you close your mortgage loan.
DON’T MAX OUT OR OVER CHARGE EXISTING CREDIT CARDS – Running up your credit cards is the fastest way to bring your score down, and it could drop up to 100 points overnight. Once you are engaged in the loan process, try to keep your credit cards below 30% of the available credit limit.
DON’T CONSOLIDATE DEBT TO ONE OR TWO CARDS– Once again, we don’t want you to change your ratio of debt to available credit. Likewise, you want to keep beneficial credit history on the books.
DON’T RAISE RED FLAGS TO THE UNDERWRITER-Don’t co-sign on another person’s loan, or change your name and address. The less activity that occurs while your loan is in process, the better it is for you.
DO JOIN A CREDIT WATCH PROGRAM – Your bank, credit union or credit card company may be able to provide you with a free credit watch program that can alert you to any changes in your credit report. This can be a safeguard to help you intervene before the underwriter sees a problem.
DO STAY CURRENT ON EXISTING ACCOUNTS-Late payments on your existing mortgage, car payment, or anything else that can be reported to a CRA can cost you dearly. One 30-day late payment can cost anywhere from 30 to 75 points on your credit score.
DO CONTINUE TO USE YOUR CREDIT AS YOU NORMALLY WOULD – Red flags are easily raised within the scoring system.
Ultimately, experts say that it is best to have two to five credit cards, and no more than that. You should keep your balances as low as possible. If you have a credit account with a zero balance, do not close the account. Instead, make a small purchase so the card shows up as an active account on your credit report, and you will be awarded points for your long-term credit history. These are just a few tips to consider as you seek to obtain mortgage financing. But you should always know that as your loan originator, my job is just beginning when you close your loan with me. As soon as you begin to make mortgage payments on time and in full, your credit standing will begin to improve. My team and I will continue to monitor rates on your behalf and alert you to the opportunity to refinance into a loan program with a lower interest rate as soon as possible. Our long-term goal is to help you build a strong financial future.
.
Monday, April 23, 2007
Why Your Credit Score Is So Important
Why Your Credit Score is So Important
The credit scoring model seeks to quantify the likelihood of a consumer to pay off debt without being more than 90 days late at any time in the future. Credit scores can range between a low score of 350 and a high score of 850. The higher the score, the better it is for the consumer, because a high credit score translates into a low interest rate. This can save literally thousands of dollars in financing fees over the life of the loan. Only one out of 1,300 people in the United States have a credit score above 800. These are people with a stellar credit rating that get the best interest rates. On the other hand, one out of every eight prospective home buyers is faced with the possibility that they may not qualify for the home loan they want because they have a score falling between 500 and 600.Mortgage lenders consider a score of 700 or above to be very good.
The credit scoring model seeks to quantify the likelihood of a consumer to pay off debt without being more than 90 days late at any time in the future. Credit scores can range between a low score of 350 and a high score of 850. The higher the score, the better it is for the consumer, because a high credit score translates into a low interest rate. This can save literally thousands of dollars in financing fees over the life of the loan. Only one out of 1,300 people in the United States have a credit score above 800. These are people with a stellar credit rating that get the best interest rates. On the other hand, one out of every eight prospective home buyers is faced with the possibility that they may not qualify for the home loan they want because they have a score falling between 500 and 600.Mortgage lenders consider a score of 700 or above to be very good.
How They Come Up With Credit Scores
The process of determining the scores is a very difficult mathematical calculation. They take dozen of items into account. In fact, the bureaus do not even reveal the equation they use. They keep it very secret. Until very recently, no one except the bureaus themselves was even allowed to tell you what your score was. You could be sitting across the table from your mortgage broker and he was not allowed to tell you what your score was even if he had it in his hand! This has since changed, but the bureaus still want you to come to them first.
Basically, every piece of bad information on your report lowers your score. Major bad listings are collections, bankruptcies, consumer counseling, and foreclosure. Pretty bad listings are late payments. Bad listings are inquires, too high balances, and too many accounts. The computer then takes all this information and calculates a score to determine how risky you might be. I can’t go into detail about how much each item affects your score in this report because it would just be too long.
Basically, every piece of bad information on your report lowers your score. Major bad listings are collections, bankruptcies, consumer counseling, and foreclosure. Pretty bad listings are late payments. Bad listings are inquires, too high balances, and too many accounts. The computer then takes all this information and calculates a score to determine how risky you might be. I can’t go into detail about how much each item affects your score in this report because it would just be too long.
Subscribe to:
Comments (Atom)
