Friday, June 18, 2010

Change is all around us: How do we handle it?


The Loan Expert
June 18, 2010
Perspectives by Joel Pate
When Will This Change?
Over the years, I have given advice to a number of friends and associates who have gone through some trying times. Everyone always asks, "When will this change?"
Always remember-nothing will change until you change it! To me, this is the good news. At least it's up to me and I won't be waiting around for somebody else to find the time to help me. I can do it myself. Of course, we are talking about issues like money, credit, lifestyle, people, etc. Some things you just have to accept and the acceptance of them will determine how you deal with them so then we are right back on topic. But, you can change so many things that at this moment are causing you a great deal of difficulty.
Several years ago, my first unofficial mentor gave me this advice when I was going through my first financial crisis. I say first because there have been a number of them over the years. Every time I go through a problem or have a crisis, I remember his words: "You are earning exactly what you are worth. If you want to earn more, become 'worth' more."

Thursday, June 17, 2010

Credit Reports: 5 Tips for Preserving Your Credit and Mortgage Application

Credit Reports: When One May Not Be Enough
 
Effective June 1, 2010 Fannie Mae has instructed lenders that they should adopt a new policy that could involve a second review of an applicant's credit report just prior to closing. When reviewing defaulted loan files, they have determined that the credit profile of a borrower may have changed from the time of the initial review of the credit report and at the time of closing. 


The potential impact to a borrower who has utilized credit to make significant purchases after the initial credit report could include a delay in closing, increase of closing costs and/or interest rate or a decreased loan amount. In the worst case scenario, it could even result in a loan being denied, even after an original approval had been granted.

In order to eliminate any possibility of potential problems before closing, anyone in the application process should use credit sparingly and make sure they adhere to the tips provided below by credit expert, Linda Ferrari of Credit Resource Corp


I would encourage you to click on Linda's name or Company link, but her advice found on her website is for those who are NOT in the middle of getting a mortgage loan!  I strongly recommend the following 5 tips for those who HAVE made their mortgage application.     

For more tips on what you should not do regarding credit during the mortgage application process, contact me.

Top 5 Tips for Preserving Your Credit and Mortgage Application

  1. Don't do anything that causes a red flag to be raised by the scoring system.
  2. Don't apply for new credit of any kind.
  3. Don't pay off collections or charge offs.
  4. Don't max out or over charge on your credit accounts.
  5. Don't consolidate your debt onto one or two credit cards.
This list is not comprehensive but does give you a peek into situations that could create issues and could also be contrary to some ideas you have read previously.

Great Deals in Housing

If you were offered the chance to buy dollars for $0.70 a piece, how many would you buy?  

When you compare today's home loan rates to the average in effect for the last 10 years, that is approximately what you are paying. And given lower home prices, there has never been a better opportunity to buy a home than today.


Home Affordability: The Key to Your Market

Mark Zandi, Chief Economist for Moody's Analytics stated recently in an audio interview with MarketWatch Radio that he has never seen a better time to buy a home, with low interest rates and affordability being one key component.  When people decide to buy a home, the monthly payment is a crucial factor.