(Part 1 of a 6-part series)
By Steve Fischer – Moline, IL
“Over shopping” carries a high price!
Are you looking to get qualified for a home loan? It’s natural to want to be sure you qualify for the best terms available. It’s also a pretty daunting experience – considering the endless options available. It’s true. There are literally hundreds of choices out there. So, what should you do?
Avoid Mistake #1: Over shopping your loan. Why? Because every time you call a lender seeking the best possible rate and terms for your home loan, your credit report gets pulled. This factors into your credit scores. Which (you guessed it) decreases your overall score and lowers the chance of getting the best deal. Ouch!
Speaking of credit scores…in case you haven’t heard, credit is a little bit harder to come by these days as result of the ‘subprime mortgage meltdown.’ An increase in foreclosures nationwide has caused home values to drop…and credit standards to tighten.
Taking control of your credit and making sure it’s the best it can possibly be is vitally important. Now more than ever! I’ll show you some free ways to educate yourself in a minute. But first…
Back to ‘over shopping.’ How do you get around it and make sure you’re doing the right thing? Here’s how…
By having a one-on-one consultation with your loan officer so you can get a program matched to meet your individual needs. Don’t just focus exclusively and interest rate and closing costs. Take the time to let your lender know the ‘ins and outs’ of your situation. You may even find a better program than the one you were shopping for!
I hope this helps. Happy house hunting!
Steve Fischer is a Licensed Mortgage Banker in both Illinois and Iowa. For more valuable home buying tips, visit www.own40down.com or call 1-800-882-1834, ext.2112 24/7 for a free recorded message to get your FREE copy of Steve’s Home Buyer Handbook, “The 7 Steps to Stop Paying Rent.”
For a free 10-minute video revealing the insider tips to boosting your credit scores,
Email Steve at stephenfischer@fcmortgage.com and he’ll send it over right away! J
By Steve Fischer
309-743-0110
Moline, IL – Are you thinking about buying a home? It can be an overwhelming process. Especially when what you see, hear and read in the media is all ‘doom and gloom’ and talking about the ‘subprime mortgage meltdown.’ Don’t let it stop you. You can still buy a home for little to no money down, even in the middle of the ‘topsy-turvy’ market we’re in now. All it takes to make it happen is little preparation and some careful planning. And these 9 tips can help get you there:
I hope you find these tips helpful. With the right plan in place, there’s no limit to what you can achieve!
Moline, IL – How can you get yourself into the home of your dreams? Easy. First, you need to take Step 1: Know exactly what you want…and visualize it. In your case, you want to buy a house. Set a goal for yourself with a specific timeline. Take the time to focus on your specific needs, wants and desires. You’ll be glad you did!
Step 2 is to tell everyone you know about your goal to create some leverage. Make sure all your family and friends know you want to buy a home. Share with them what you need to do to achieve this goal. This way they can give you constant encouragement. Heck, why not tell your enemies? They can tease you…and make you work even harder to realize your dream!
Step 3 is to constantly be aware of your goal. Write it down. Here’s an example: “I will own a house by December 15th.” Reinforce this goal in your mind any way you can. Hang up copies of this written message around the house…in your car…in your wallet or purse…and in your office or workspace.
Step 4 is to follow helpful home buying advice from reputable sources. Your lender and real estate agent can provide you with some valuable bits of wisdom based on years of experience earned ‘in the trenches’ helping out others who have gone before you. Why reinvent the wheel? Save yourself hours, days and months of needless frustration and costly mistakes. I’ve provided some free tools you can use. They’ve been carefully designed to make it easier for you to attain the dream of owning your own home…quickly and easily. To get your copy of these tools, call me at 309-743-0110 or see below for more details.
Faithfully do what you need to do to accomplish the goal you’ve set for yourself. Do something, anything. Take action everyday that’ll take you closer to your goal.
Go ahead. Make a goal for yourself and follow these simple steps to achieve it. You’ll put yourself in your dream home sooner than you thought possible. You’ll also have system you can use to get anything you want in life! Hope this helps…
MOLINE, IL – Credit repair can be a pretty overwhelming subject… and for good reason. Sure, most of us know this: the best score wins. Yet the average Joe knows very little about the credit scoring process. Do you find yourself at a loss when looking for ways to boost your scores? Here’s the good news - there are some simple things you can do now to improve your less-than-perfect credit scores and get a loan for the home you really want.
The first step is to make sure you have a current copy of your credit report. Congress recently amended the Fair Credit Reporting Act. So you can receive one free credit report per year. There are three major credit bureaus: Equifax, Experian, and Trans Union. You’ll want to request a free report from each of these companies. Why? Because the data they list on your report can vary greatly. (Go to www.annualcreditreport.com to get your copy… or see the end of the article for more info…)
It's also important to know what a good credit score is. Most “A-Paper” scores generally begin around 680. This number differs slightly among various lenders. Don't worry if you’re not there yet. There’s always room for improvement. Increasing your score by just 5 points can save you a ton of money. For example, if your score is 698 and you increase it to 703, you could save yourself thousands of dollars over time as a result of a slight improvement to your loan’s interest rate.
While credit repair is necessary for some, it's not the only way to increase your credit score. Even if you have stellar credit, you can enhance your score through these steps:
· Evenly distribute your credit card debt to change the ratio of debt to available credit. Let's say you have a credit score of 665. If you have debt on only one card, and four additional credit cards with zero balances, evenly distributing the debt of the first card could help boost your scores.
· Keep your existing accounts open and active. You may be anxious to close credit card accounts with zero balances. But doing this can cause you to lose the benefits of a long-term credit history… and increase your ratio of debt-to-available credit. Here’s the bottom line - don't close those old accounts!
· Keep credit inquiries to a minimum. Each time you look into your credit history, it can impact your score by anywhere from 2-50 points. When it comes to mortgage and auto loans, even though you're only looking for one loan, multiple lenders may request your credit report. To compensate for this, the score counts multiple auto or mortgage inquiries in any 14-day period as just one inquiry. So try to stay within that time frame.
Remember, credit scores don't change overnight. Improving them requires time and effort on your part. So it's a good idea to get the ball rolling at least three to six months prior to submitting your application for home financing.
If credit repair is what you need, you can either begin the process yourself or seek out a repair service. If you decide to make your own improvements, visit as many websites as possible to get information regarding credit laws and consumer rights. Educate yourself to make sure you don’t sustain any ‘self-inflicted wounds.’ A good place to start is the Federal Trade Commission's website, which contains a wealth of helpful literature. (See below for the address.)
If you’re facing severe or complicated credit issues, then you’ll probably want to enlist the help of a professional credit repair company. Before you do, be sure to familiarize yourself with the FTC's regulations on credit repair. With over 1,100 credit repair companies to choose from, it's important to be certain you are dealing with a reputable firm. Check out the FTC's information on fraudulent practices to avoid falling prey to credit repair scams.
Addressing credit issues can be uncomfortable to say the least. But by taking these steps now, you’ll be that much closer to obtaining the home of your dreams.
Additional Resources:
To order your free credit report, go to:
www.annualcreditreport.com
To read the Fair Credit Reporting Act, go to:
www.ftc.gov/os/statutes/frca.htm
For the Federal Trade Commission's information on consumer credit, go to:
www.ftc.gov/bcp/conline/edcams/credit/index.html
It’s a fact. We often fear what we don’t understand.
A common example of this is the fear of buying a home. The process can seem complex and intimidating. In fact, studies have shown this fear literally prevents many folks from taking the first steps to buying a home.
Why? Because buying a home is probably the largest purchase you’ll ever make. Fortunately, now is a great time for you to take advantage of the wealth of home buying information that’s available.
To prepare, you should “do your homework” and be fully informed before you begin the search for your dream home. Here are some quick tips to help you get started:
Before you start, imagine what it’ll be like to be a homeowner. This is the fun part! Paint a vivid picture in your mind exactly what your dream home will look like. Homeownership is a BIG part of the American dream. And the advantages (tax benefits, sense of home, financial investment) far outweigh any drawbacks!
Your credit history is one of the first things a mortgage lender looks at in making a decision on your loan. TIP: Contact one of the three major credit-reporting agencies to obtain a free copy of your credit report. Review it carefully to be sure all of the information is correct. If you find mistakes, you should work with the credit agency to fix them. It also helps to look it over with your Lender – who can explain the ‘nuts and bolts’ of your report to you.
Saving for a down payment is one of the biggest barriers to homeownership. Mortgage lenders recognize this dilemma. Many now offer low down payment loans. (Three and five percent down payments are commonly available.) You can even get loans that require NO DOWN PAYMENT!
Before you begin working with a Realtor(R,) go to your local lender first. Ask them to pre-approve, not pre-qualify you for a mortgage. Most lenders provide this service free of charge. Pre-approval lets you know exactly how much you can spend on a home- before you start your search.
A pre-approval in hand also makes you a more attractive buyer when you’re ready to make an offer on a home. Why? A home seller is more likely to accept your offer when you can show your ability to get financing.
By Steve Fischer, Tradition Mortgage – Moline, IL www.own40down.com
In last month’s article, fellow Thrifty Nickel reader Jeff Woodard of Davenport shared a story. About how he and his wife, Karena, took seven simple steps to make the dream of owning their first home a reality. (In case you missed the article, please read on to find out how you can get a free copy of their story...)
As I sat down to write this month’s article, I went and re-read Jeff’s story myself.
And it got me thinking…
What was the one burning question Jeff needed answered to help him make the leap from renter to homeowner?
If you ask yourself this question, it may give you the insight you need to achieve the dream of owning a home yourself (just like Jeff and Karena did.)
So, what’s the question? OK, here it is…
“What’s important to you about owning a home of your own?”
Stop and think about it for a minute. (And don’t be fooled by its simplicity.) Take the time and really focus on your answer to this question. You’ll give yourself a clear picture of your situation…and you’ll be glad you did it.
Here’s another thing to keep in mind: there’s no right or wrong answer to this question. In fact, your answer may be as unique as your fingerprint! Need help with some ideas to get you thinking? Try these on for size…
Maybe you’re tired of throwing away your money on rent (like Tonya Rochelle from Moline) or you want the pride of having a place to call your own. (This was the answer I got from Scott & Yvonne Coughran of Colona, IL.) It could be you just need to feel the comfort and safety of living in a better neighborhood for you and your family…
Whatever your answer is, you’ll find it gets you thinking in the direction of your own personal goals and dreams. And isn’t that what’s really important? You’ll also notice this: it WILL bring up more specific questions. Here’s where it helps to get a knowledgeable professional involved to help customize a plan for you.
I hope you find this question useful. (It’s definitely worked for the folks listed above!)
Here’s how I found a quick and easy way to buy my 1st home:
By Jeff Woodard – Davenport, IA
(As told to Steve Fischer – Tradition Mortgage - Moline, IL)
It had been awhile. (Years, in fact.) I’d wanted to get away from paying rent to my landlord each month. I’d always dreamed about having my own place to call “home.”
But I didn’t think I’d be able to do it for a long time. I went through some rough times a few years ago. I thought I’d need to wait a few more years to be able to save up for a down payment… and to qualify for a nice home in a decent neighborhood. (At least that’s what my credit union told me.)
I was desperate. I needed to find out what to do to be able to make this dream happen.
Then I saw an article in The Thrifty Nickel. It talked about how I could take a few simple steps to see about qualifying to own my own home.
I admit it. I was skeptical at first. But I was also tired of throwing away my hard-earned money to my landlord each month. It was eating away at me. So I decided to check it out for myself…
I’m glad I did! At first, I wasn’t sure if I’d be able to qualify. Boy! I was surprised…
I was able to qualify for the house I wanted (I actually could’ve borrowed more, but wanted to make sure my payment was at a comfortable level.) Plus, I didn’t have to come up with any money for a down payment! With the help of my real estate professional, I was able to find the perfect home for my family. It was in the area I wanted…for a price my wife and I could live with.
Are you looking to get into your first home? If you are, then you owe it yourself to check out your options. If you’re like me, you just may be shocked by what you find out! I didn’t think it was possible. Buying a home of your own really can be easier than you may realize…
Thanks to Steve, I was able to find the info I needed to become a homeowner. I am sincerely grateful. Thanks again!
"Use These Facts To Help You..."
What is a credit score?
Before a lender decides on what terms to offer you on your new loan (which they base on the "risk" to them) they want to know two things about you:
1. Your ability to pay back the loan, and
2. Your willingness to pay back the loan. For the first, they look at your income-to-debt obligation ratio. For your willingness to pay back the loan, they look at your credit score.
The most widely used credit scores are FICO scores, which were developed by Fair Isaac & Company, Inc. (and they're named after their inventor!). Your FICO score is between 350 (high risk) and 850 (low risk).
Credit scores only consider the information contained in your credit profile. They don't include things like your income, savings, down payment amount. Or demographic factors like gender, race, nationality or marital status. In fact, the fact they don't consider demographic factors is why they were invented in the first place. "Profiling" was as dirty a word when FICO scores were invented as it is now. Credit scoring was developed as a way to consider only what was relevant to somebody's willingness to repay a loan.
Past delinquencies, derogatory payment behavior, current debt level, length of credit history, types of credit and number of inquiries are all considered in credit scores. Your score considers both positive and negative information in your credit report. Late payments will lower your score, but establishing or reestablishing a good track record of making payments on time will raise your score.
Different parts of your credit history are given different weights. Thirty-five percent (35%) of your FICO score is based on your specific payment history. Thirty percent (30%) is your current level of indebtedness. The time your open credit has been in use (ten year old accounts are good, six month old ones aren't as good) and types of credit available to you (installment loans such as student loans, car loans, etc. versus revolving and debit accounts like credit cards) each account for 15%. Finally, 5% of your score is based on the pursuit of new credit.
Your credit report must contain at least one account which has been open for six months or more, and at least one account that has been updated in the past six months for you to get a credit score. This ensures there's enough info in your report to generate an accurate score.
If you don't meet the minimum criteria for getting a score, you may need to establish a credit history prior to applying for a mortgage.
Need more tips? Have more questions? Call me! I can help you by answering any specific questions you have on your report.
OK, so now we're working together to find the loan that's right for you.
Now what?
Well, you're on the right track. Why? By working with me, you're taking full advantage of the best technology (and expertise) available to get your loan closed quickly and easily.
But I can't do it fast without your help.
So here are five "other" ways you can help us speed up the process of getting your mortgage loan:
1. Have everything ready and in one place. Elsewhere on our website, you'll find a list of things you might need in support of your mortgage application. If you get them all together and keep them in a safe, portable place like a special pouch or folder, you can cut down on time spent rooting around for things we may need. Also, you'll help cut down on your own anxiety and confusion.
2. Be honest and complete when you fill out your application. "Fudging" your employment or residence history or omitting open credit accounts you'd rather not have considered doesn't increase your chances of getting a favorable loan. In 100 percent of cases, it makes it harder, and makes it take longer.
3. Respond promptly to requests for additional information. During processing, we (or the lender considering your loan) may need additional information. Provide it as soon as you get the request, or return the call as soon as you get the message.
4. Be prepared to explain derogatory items in your credit report. This is really part of number 2 above. If you had an illness or a divorce where you missed or made late payments, or you have other instances of late payments or delinquencies on your credit report, be prepared to explain them. Be honest, and don't be nervous! The loan processor isn't judging you, they're trying to fill in all the blanks in their paperwork.
5. Let the appraiser in! The appraisal is one of the lengthiest parts of the mortgage loan process. Studies have shown that the single biggest factor in appraisal "lag time" is the appraiser's inability to reach the homeowner to make an appointment. If you're refinancing and the appraiser calls to make an appointment, make it as soon as convenient for both of you.
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