Archive for June, 2008

Try to pick a modest…

June 30th, 2008 by admin | No Comments | Filed in Uncategorized

…home in a good neighborhood rather than a large, lavish home in a less desirable neighborhood.
Remember, the properties in closest proximity to your home will play the largest role in the appreciation (or depreciation)
of the property.

When you consolidate debt…

June 30th, 2008 by admin | No Comments | Filed in Uncategorized

…using home equity it is important that you not continue to charge up the credit cards. Trading unsecured credit card debt into a debt secured by your home should only be done if you are confident the credit cards will not be charged back up. If poor spending habits persist and you squander your home equity you could end up without money… or a home.


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When you find a house you…

June 29th, 2008 by admin | No Comments | Filed in Uncategorized

…like, take a look at it during different times to make sure you like the area. Check it out during a week day, an evening, a weekend, etc. If you want to find out if there are other families or children in the area, go in the afternoon around the time the busses go through.

After you have paid…

June 29th, 2008 by admin | No Comments | Filed in Uncategorized

…off a credit card you do not want to stop using it entirely. One of the many factors involved in maintaining a high credit score is the ability to wisely us the credit you have been granted. In other words, if you spend $100 on a credit card each month and pay off the entire balance once you receive the bill you will demonstrate your ability to live within your means, and as a result will see your credit scores improve. This does not mean that you need to spend more than you normally would just to improve your credit rating. You can use charge daily expenses to such as gas, groceries, etc to your card and see the same benefit. Just be sure to pay off the balance each month to avoid getting back into debt.


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You could also do a…

June 29th, 2008 by admin | No Comments | Filed in Uncategorized

…debt consolidation refinance to pay off and eliminate your debt. There are many advantages to using the equity in your home to pay off your debt. Number one the interest of the mortgage will be tax deductible. The second advantage is that you will have a much lower total monthly expense expenditure each month. By saving money each month you will be able to apply more money towards your mortgage payment each month and pay your mortgage down much quicker.


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Make sure you research…

June 29th, 2008 by admin | No Comments | Filed in Uncategorized

…the type of house you want. Do you have any health problems that would hinder you ability to climb stairs everyday? Do you prefer the low upkeep of brick homes? Things like this will matter to your long term happiness with the home you choose. Always let your Realtor know the key things that are important to you so they can narrow the search down to only home that will fit your preferences.

Another tip would be to…

June 28th, 2008 by admin | No Comments | Filed in Uncategorized

…contact your credit card companies respectively and ask them to lower your interest rate. If you have a satisfactory history with these creditors, this should be fairly easy. Although some creditors will not budge on their rates, most will lower them for customers with good payment histories.


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When you are shopping for a…

June 28th, 2008 by admin | No Comments | Filed in Uncategorized

…new home, be sure to not go out and make any major purchases. Once you are reproved for a new home, the worst thing you could do is change you current situation. If you are also looking to purchase a new car, then wait until you have closed on the new home. Any major purchase, could increase your debt to income ratio (DTI), and unqualified you from purchasing your new home.


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One of the best ways…

June 28th, 2008 by admin | No Comments | Filed in Uncategorized

…to eliminate debt is to systematically pay off each debt based on the interest rate. You pay off the account with the highest interest rate first. Once paid in full, you take the amount of the monthly payment you use to make on it and apply it to the card with the next highest interest rate. You continue in this same fashion until you pay off all of your excess debt.


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Compare the materials the…

June 27th, 2008 by admin | No Comments | Filed in Uncategorized

…home is built from. A brick home will require less maintenance and generally be worth more then a wooden sided or vinyl sided home.

The most common reason that most…

June 27th, 2008 by admin | No Comments | Filed in Uncategorized

…people are refinancing currently is to lower their monthly payments/expenditures. While rates have crept up, they remain at historically low levels. This means that you may still qualify for a very low interest rate on a home loan while being able to pay off credit cards or other higher interest rate loans (whose interest is not tax deductible) and save money on a monthly basis. Please call me to discuss.


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Get approved for a loan…

June 27th, 2008 by admin | No Comments | Filed in Uncategorized

…prior to shopping for a home. Having your loan pre-approved increases your negotiating power.


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In some cases, maintaining some…

June 27th, 2008 by admin | No Comments | Filed in Uncategorized

…cash reserve fund is more important than lowering the monthly payment. If you have significant equity on your home and if you are uncertain about your future income, refinancing to cash out is not a bad option. This is not a long term solution, but it buys you time to correct the problem. Remember, when you need the money most (such as the cases of illness or job loss), it usually is very difficult to borrow money. If you are in this situation, refinance to cash out before the unfortunate event occurs.


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Here are some basic…

June 26th, 2008 by admin | No Comments | Filed in Uncategorized

…home-buying tips for every homebuyer no matter where you live or what your situation is. The first tip is to make sure you get pre-approved as a first step of the home buying process. Getting a pre-approval from a honest, professional and reliable mortgage advisor is crucial. This will let you know how much of a house you can qualify for, how your credit looks, and what kind of payment you will be looking at on a new home purchase. The pre-approval process is crucial. Your mortgage professional will let you know how much of a home you can qualify for on paper but only you know how much of a payment you can afford each month. Remember it is always better to own your own home than to let your home own you.


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If credit card debt…

June 26th, 2008 by admin | No Comments | Filed in Uncategorized

…is piling up, and you have some equity in your home, it is sometimes a good idea to consolidate that debt and roll it into your mortgage, if the payments make sense in the end.


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One of the most important…

June 26th, 2008 by admin | No Comments | Filed in Uncategorized

…things you will need is equity. Equity is the difference between what you owe on your home and your home’s current market value. Take a look at similar properties in your area that are listed for sale or have sold recently to get an idea of the current market value of your home.

One of the most common…

June 26th, 2008 by admin | No Comments | Filed in Uncategorized

…reasons for refinancing a home is to lower your monthly payments. You may lower your payments by lowering your interest rate, extending the term of your mortgage or a combination of both.
For example: You bought your home with a mortgage of $100,000 with an interest rate of 9% and a term of 30 years. Your monthly principal and interest payment is $804.62. You have lived there for some time now and reduced the principal balance on your mortgage to $80,000. You are approved for a new mortgage at 7%. Your closing costs are $5000. Your new loan amount will be $85,000 (you’re including the closing costs in your new mortgage.) Your new principal and interest payment will be $565.51. You will save $239.11 every month!
You can use that extra money to compensate for a decrease in income or increase in expenses. Or, if your income and expenses have remained stable, you can put that money into a savings account or use it to pay down the principal balance of your mortgage.


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Many times, if you…

June 25th, 2008 by admin | No Comments | Filed in Uncategorized

…have a strong income and some assets, you may still qualify for a Fannie Mae Expanded Approval or an FHA Loan. You will need to have your bankruptcy discharged for at least 2 years and a strong recent mortgage history.


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Another reason to refinance…

June 25th, 2008 by admin | No Comments | Filed in Uncategorized

…is to shorten your term. If you have been paying on your current mortgage and would like to save thousands of dollars off the remaining balance, shortening to a 20 or 15 year amortization may help.


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A good time to refinance…

June 25th, 2008 by admin | No Comments | Filed in Uncategorized

…is when you currently have an adjustable rate mortgage and the short term fixed rate is getting ready to adjust. For example if you have a 30 year mortgage on a 3/1 ARM that would mean that your interest rate will be fixed for the first 3 years of the mortgage loan. After the first 3 years are up, the interest rate will adjust and then it will continue to adjust once every 12 months (once per/year) thereafter for the remainder of the loan. Usually, this is a good time to look into refinancing. Consult your mortgage professional to see what your options are and what types of mortgages you will qualify for.


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Getting a mortgage when…

June 25th, 2008 by admin | No Comments | Filed in Uncategorized

…you have a low fico is easier if you take steps to improve your credit score. You should dispute and inaccuracies on your credit report, pay down your credit balances and make your payments on time to improve your credit score.


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When exploring the possibility of…

June 25th, 2008 by admin | No Comments | Filed in Uncategorized

…refinancing your mortgage, there are many good reasons why you may want to seriously consider.
One reason is to pay-off high interest loans such as auto loans, personal loans, or credit cards that may be hurting your monthly cash flow. Paying off these debts can help shift non-taxable debt into your home at a low interest rate while giving you additional interest write-offs.


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If you have enough…

June 24th, 2008 by admin | No Comments | Filed in Uncategorized

…equity in your home, you may be eligible for a Chapter 13 Bankruptcy Buyout. A Chapter 13 Bankruptcy Buyout has the potential to save you hundreds and hundreds of dollars each month by paying off your trustee with the equity in your home.

The best time to refinance…

June 24th, 2008 by admin | No Comments | Filed in Uncategorized

…is when fixed rates are low and qualifying for a loan is easy. With rates increasing substantially every month for the past several quarters, and lenders making it tougher each day for borrowers to qualify for refinancing, now may be the best time to refinance, especially if you are in an ARM type adjustable rate mortgage which is set to begin “going variable” or adjusting in the next few years.


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Mortgage brokers are the…

June 24th, 2008 by admin | No Comments | Filed in Uncategorized

…only source when it comes to getting a mortgage after a bankruptcy. Mortgage brokers are able to sell sub prime loans to borrowers and many of the sub prime borrowers have bankruptcy mortgage programs. Many of these programs have tightened up recently so do not expect to get 100% financing one day out of chapter 7, 80-90% financing is what most bankruptcy mortgage programs offer today.


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The best time to refinance…

June 24th, 2008 by admin | No Comments | Filed in Uncategorized

…is when you feel it will benefit you financially or improve the quality of your life. If used wisely, the equity in your home can be your best tool for “life improvement”.

You should also consider a method…

June 23rd, 2008 by admin | No Comments | Filed in Uncategorized

…known as piggybacking credit in order to re-establish a good strong credit history once again after a bankruptcy. This is a time tested and proven way to improve your credit scores, especially when you have a low fico score and a bankruptcy as well. When you piggyback off of someone else’s credit you are actually borrowing their credit history and it is being added to your credit report as though it is yours. You simply need to find a family member or friend with strong credit and have them add you onto an established credit card of theirs that is not maxed out and has a good payment history as an authorized user (not a co-borrower). Many credit card companies will then report the account to your credit report as well, thus boosting and improving your credit scores.


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One factor to consider is…

June 23rd, 2008 by admin | No Comments | Filed in Uncategorized

…the cost involved. If your closing costs on a refinance are high, and the amount you’re saving per month is low, it doesn’t make a lot of sense.


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Getting a mortgage with…

June 23rd, 2008 by admin | No Comments | Filed in Uncategorized

…low fico and bankruptcy is possible, but will require you to do several things on your part to show lenders that your are trying to improve your financial and credit situation.


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Rapid Rescore to fix…

June 23rd, 2008 by admin | No Comments | Filed in Uncategorized

…your fico score is pretty common in both the conforming and non-conforming markets. A lot of homeowners get upset when a discrepancy appears on one’s credit report months after it has been satisfied.


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