Your credit score is one of the most critical numbers linked with you. Your credit score and significantly affect your ability to obtain items like a new vehicle or even a dwelling. It is vital to manage your credit profile so you can constantly have the ability to buy the products you want.
Your score can improve by managing your credit responsibly over time and by following some simple recommendations:
Ask For a Free Credit Report Yearly
First, make sure the information in your credit report is accurate. You are entitled to one no cost credit report yearly from the three credit bureaus - Equifax, Experian and TransUnion. Visit www.annualcreditreport.com to obtain your free reports. You may also purchase a copy of your credit score report through this website.
Review Your Credit Report for Accuracy
Second, review your credit report for accuracy (last activity, date opened, account balance, account limit) and have incorrect or erroneous information updated.
Reduce Large Credit Card Balances rule of thumb credit card balances should remain at 50% or less of the credit card limit.
Third, reduce excessive credit card and revolving account balances, but do not cancel the account. Do not apply for credit that you do not need as excessive credit report inquiries can lower your score.
Avoid Shifting Credit Balances.
Next, keep away from transferring credit balances from one account to another just to take advantage of low introductory interest rates. The mix of inquiries and brand new accounts can negatively impact your score.
Steer Clear of Finance Company Type Accounts
Finally, if possible, steer clear of finance company type credit accounts including 12 months same as cash and 90-day accounts. Home loan loans, installment loans and revolving credit card accounts impact your score more favorably than finance company accounts.
Tuesday, November 30, 2010
Thursday, November 25, 2010
Thursday, November 18, 2010
Tuesday, March 30, 2010
Wednesday, January 20, 2010
FHA Loan Requirements Changing
Today FHA announced that it would make sweeping changes to the current FHA mortgage program in an attempt to shore up it's beleaguered balance sheet. As many existing FHA borrowers default on their home loans the move is necessary to ensure the program stays solvent.
The biggest impact will be the increase in the up front mortgage insurance required. FHA will raise the up-front Mortgage Insurance Premium, paid by borrowers, from 1.75 percent to 2.25 percent as well as request legislative authority to increase the maximum annual MIP that the FHA can charge. This is the second time in two years that it has raised the premium.
In addition, in order for new borrowers to qualify for the 3.5 percent down payment program, they will now be required to have a minimum FICO score of 580. Borrowers with a lower score will be required to put down at least 10 percent.
The FHA will also reduce allowable seller concessions, or how much the seller can help the buyer, from 6 percent to 3 percent. The change will give borrowers a greater financial stake in their home purchases.
Commissioner Stevens, with the FHA, said he wanted borrowers to have more "skin in the game," and this is clearly a means to that end.
As of today, the date that these changes will take place has not been announced. BOTTOM LINE IT WILL TAKE MORE CASH FOR A BUYER TO CLOSE UNDER FHA LONA PROGRAM. If your thinking of jumping into the housing market, sooner than later would be a good idea.
The biggest impact will be the increase in the up front mortgage insurance required. FHA will raise the up-front Mortgage Insurance Premium, paid by borrowers, from 1.75 percent to 2.25 percent as well as request legislative authority to increase the maximum annual MIP that the FHA can charge. This is the second time in two years that it has raised the premium.
In addition, in order for new borrowers to qualify for the 3.5 percent down payment program, they will now be required to have a minimum FICO score of 580. Borrowers with a lower score will be required to put down at least 10 percent.
The FHA will also reduce allowable seller concessions, or how much the seller can help the buyer, from 6 percent to 3 percent. The change will give borrowers a greater financial stake in their home purchases.
Commissioner Stevens, with the FHA, said he wanted borrowers to have more "skin in the game," and this is clearly a means to that end.
As of today, the date that these changes will take place has not been announced. BOTTOM LINE IT WILL TAKE MORE CASH FOR A BUYER TO CLOSE UNDER FHA LONA PROGRAM. If your thinking of jumping into the housing market, sooner than later would be a good idea.
Thursday, October 1, 2009
Leasing Property Pitfalls!
Over the past several months I have been assisting clients lease properties. I have noticed disturbing trends and several issues to make you STOP and rethink what your getting into.
Normally an Agent will submit the prospective tenants rental application and any processing fees to the Listing Agent and or Broker for review and consideration. Typically that application is submitted to the Owner for review and a credit report is obtained and or a criminal background check. Usually this process takes a couple of days. Once that information is obtained and references are checked, the Owner will instruct the listing agent and or broker to offer the following terms and conditions. For instance, Deposit amount, Pet Deposit amount, First Months rent and so on. Typically these items are set and spelled out in MLS as minimum guidelines. Depending on the prospective tenants credit data and application data, the owner may request a higher deposit or a higher pet deposit based on breed and weight.
Lately, I have had Brokers request a Full Months Deposit upfront before considering the application. In addition, when I ask if the deposit is refundable the answer I get is yes within 15 days. WHAT? and NO! There are several Hold and Deposit forms that can be used that are provided by the Texas Association of Realtors and TREC. Why in the world would a prospective tenant scramble to submit a full months rent as deposit and tie them to that property while looking for properties to rent. DO NOT EVER give a deposit to an owner or a Broker without having the Deposit refundable prior to a lease execution.
In addition, I have asked several brokers to have the owner provide a current mortgage statement showing payments on the rental property have been made and the owner is not in jeopardy of foreclosure. Many owners and Brokers refuse. If you get a refusal on this do not proceed. Chances are you will get moved into the lease property only to be evicted from the courts as there is a pending foreclosure and the owner has gotten your rent and deposits and not made the mortgage payments.
Always get everything in writing and contact a Realtor for representation before entering the leasing market.
Normally an Agent will submit the prospective tenants rental application and any processing fees to the Listing Agent and or Broker for review and consideration. Typically that application is submitted to the Owner for review and a credit report is obtained and or a criminal background check. Usually this process takes a couple of days. Once that information is obtained and references are checked, the Owner will instruct the listing agent and or broker to offer the following terms and conditions. For instance, Deposit amount, Pet Deposit amount, First Months rent and so on. Typically these items are set and spelled out in MLS as minimum guidelines. Depending on the prospective tenants credit data and application data, the owner may request a higher deposit or a higher pet deposit based on breed and weight.
Lately, I have had Brokers request a Full Months Deposit upfront before considering the application. In addition, when I ask if the deposit is refundable the answer I get is yes within 15 days. WHAT? and NO! There are several Hold and Deposit forms that can be used that are provided by the Texas Association of Realtors and TREC. Why in the world would a prospective tenant scramble to submit a full months rent as deposit and tie them to that property while looking for properties to rent. DO NOT EVER give a deposit to an owner or a Broker without having the Deposit refundable prior to a lease execution.
In addition, I have asked several brokers to have the owner provide a current mortgage statement showing payments on the rental property have been made and the owner is not in jeopardy of foreclosure. Many owners and Brokers refuse. If you get a refusal on this do not proceed. Chances are you will get moved into the lease property only to be evicted from the courts as there is a pending foreclosure and the owner has gotten your rent and deposits and not made the mortgage payments.
Always get everything in writing and contact a Realtor for representation before entering the leasing market.
Monday, August 17, 2009
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