Free Loan Shopping Information Worksheet

When you want to refi or to get a new real estate loan, be sure to shop around for the best rates and lowest costs.

Talk to three loan officers and do it at the same time--within a few days. That way you won't get extra deductions on your credit score because the CRA's (credit reporting agencies) know you're loan shopping. Although the loan shopping cushion is supposed to be fourteen days, loan rates may change and you won't get an accurate comparison.

Free Loan Shopping Information Worksheet

Credit Help after Bankruptcy

One of the most frequently asked questions about getting mortgage financing is what to do after filing bankruptcy. You can purchase a home after filing bankruptcy, but you will need to pay higher interest rates. The faster you reestablish credit and the way you handle your credit after filing makes a huge difference in your ability to get a new home loan. Credit Help for Bankrupcy

Bandages for Bankruptcy

Question from credit newsletter reader:
I would be interested in information on how to bandage one's credit from bankruptcy.

Answer from Jeanette Joy Fisher

#1 Rule: Don't make another late payment.

#2 Rule: Don't apply for a lot of new credit.

# 3 Get some credit, even if you need to a cosigner or to start with a secured credit card.

If you travel, you generally need a credit card, even if you're going to pay cash. You need one to make your reservations to rent a car, for example, and you'll also need one when you get to your destination to sign in at your motel. Love them or hate them, credit cards are simply a fact of today's world. However, getting a credit card can sometimes be a challenge, especially if you've never had one before or if you've run into financial difficulty in the relatively recent past.

But that doesn't mean you can't get a card, and one way to do that is to sign up for a secured credit card.

Here are a few things you should know if you're thinking about getting a secured card, but first, let's define the term. A secured credit card is one that requires you to put a certain amount of cash into an account, which then becomes your collateral for a card (often that amount is $300-500).

With that money in the account, you're free to charge up to that amount on your secured card. It can be a great way to get started, and if you continue to stay current, you'll sometimes be rewarded with either a credit limit increase that exceeds the amount you initially deposited or an offer to obtain an unsecured card.

A good place to look for a secured credit card is your local credit union. Quite a few of them offer their members secured cards, and many of them waive the annual fee that nearly all secured cards charge. If you don't belong to a credit union, shop around before you sign up for a card. Some companies even charge a fee to apply for a card, and the annual fees can vary greatly. You'll also want to read the fine print carefully. You want to know the interest rate, the fees, and the required deposit, and anything else that might be required.

You also want to know if the company will report your credit history to all three of the major credit bureaus. This will be important later on, because the main reason for getting a secured card in the first place is to establish a credit history that will serve as a stepping stone to more credit later on. If the company doesn't report your good payment habits, you're not gaining that advantage. How can you tell if they ARE reporting? You should begin getting offers from other secured credit card companies after you've made several payments on time. After about a year of excellent payment history, you'll often be able to qualify for an unsecured credit card.

The best way to put your card to use in building (or rebuilding) your credit is to make a few small purchases each month and then pay them off. Since they generally carry high interest rate, you don't want to carry a balance on a secured card. Your goal is to establish a good payment history, and although they serve a purpose, unsecured credit cards should best be looked at as a means of gaining entry into the unsecured credit card world.

Free Credit Tips for Mortgage Financing and Wealth-Building Tools ebook at the Real Estate Credit Help Center

Copyright © 2006 Jeanette J. Fisher

Making Bigger Credit Card Payments and Still Getting Nowhere?

If you're like many others trying to pay off debt by making larger than the minimum due each month payments to each of your lenders, you might be frustrated at how little difference your efforts have made. What if you made one simple change in your payment schedule that could make a big difference in your financial freedom?

You can make a big change in your debt reduction with Accelerated Debt Payoff, also known as Debt-Stacking. Give this proven method of retiring your debt in a quick and speedy method a try and see some real difference.

What Is Accelerated Debt Payoff or Debt-Stacking?

First, determine what you're currently paying, in total, toward debt per month. Once you have that figure, rank your debt from the highest interest rate to the lowest interest rate. Simple so far, right? It gets easier! Now, you pay the minimum only, not one dime over, to every debt you have EXCEPT for the one with the highest interest rate. For that debt, you pay the minimum plus whatever you have left from that total sum you figured out earlier. You continue to do this each and every month until your highest interest rate debt is paid off. When that happens, you apply the savings you now have from the paid off debt to the next highest interest rate debt on your list - and so on, and so on. Before you know it, you'll be debt free.

Why does this work? You are focusing all your extra money on one debt at a time instead of spreading it out over all of them. By targeting the highest interest rate debt, you're erasing your most expensive liability quicker. As each debt gets paid, and you have accumulated savings to continue to apply, each successive debt is wiped out faster than the one before. You'll be happily surprised at how expedient this process is!

Don't worry if you've already consolidated all of your debts into one big loan. You should still be able to do this, to a certain degree. As long as your monthly payment for the consolidated loan is less per month than your individual payments were combined, you can make this work. Take a bit of what you're saving, and apply it to the consolidated loan payment to see a quicker payoff and less interest paid overall. For example; let's imagine that your total debt payments before the consolidation came out at $250.00, and your consolidation loan payment is $135.00. You have a savings of $115.00, and even adding a miniscule $10.00 on per month will make a surprising difference in long term payoff time and interest savings.

With this knowledge, you can now apply the money you were already spending in a more effective manner. Which means each dollar you spend toward debt becomes far more valuable and works that much harder for you.

Let's face it, getting out of debt can be a lifelong battle if you go at it incorrectly. Having the proper information will make all the difference in dealing with you debt in the best possible way.

Note: This is not the way to pay off your credit card debts for mortgage financing. You need another variation for that available in Credit Help! Get the Credit You Need to Buy Real Estate.

Free Credit Tips for Mortgage Financing ebook: Real Estate Credit Help

Real Estate Credit Teleseminar Tonight

Monday September 11th
9:00pm EST/ 8:00 PM CST/ 7:00 Pm MST/ 6:00PM PST

How you can create cash flow out of thin air?
http://www.money4investors.com/newtele/

Beware! Online Credit and Mortgage Scams Are Everywhere

by Jeanette Joy Fisher

One of our close family friends, an accountant and real estate investor, came too close to making a huge mistake online. Like many banks, Greg's bank sends out business banking emails to their customers. Our friend opened an email that looked just like the usual newsletter and clicked on a link to read more of an article. The website looked just like his bank's website. After reading the article, he clicked on a link to go to his account. Greg put in his password and ended up in a page that wanted to verify his account.

Although our friend stopped, he still had given his email and password. Many online services only require that information to enter their database. Do you always use the same password? Greg had to spend the day changing passwords on all the websites he remembered.

If you check your email every morning like millions of other Americans, you probably already know that scammers have become even more aggressive in trying to steal information about unwary consumers than ever before. Recently, one of the most prevalent schemes has been to send scam emails about home mortgage information. There are five main approaches scammers use to try to dupe you out of your personal information.

The first is a new twist on an old scam: an offer to fix your credit in twenty-four hours. In this scam, scammers promise that all your credit problems will be resolved in one day. It's a ridiculous promise, and one that can't possibly be fulfilled, no matter how much you're willing to pay. Fixing your credit can only be done over time and with serious effort.

The second scam is more sophisticated, and involves fake mortgage websites. These sites are often very slick-looking and meant to mimic those of genuine mortgage lenders, but their sole purpose is to steal your personal information. Since they look so real, these sites can be dangerous, but legitimate companies will never send emails asking for personal information, so make it a rule that if you get emails asking for such information, don't respond.

A third common strategy is called phishing, which is an even more sophisticated tactic, since the email itself is designed to look completely official, as if from a well-known lender, bank, credit card, or online auction company. These emails ask for sensitive financial information such as Social Security numbers, passwords, or account information. As with the other scams we've mentioned, the key is to remember that legitimate companies don't send emails asking for such personal information.

Another scam offers to completely eliminate your mortgage in as little as seven months. The email promises that you can use certain loopholes in the law to rapidly eliminate your mortgage, but it's not possible. Although the concept is tempting, it's not real, so don't fall for this scam.

In the fifth tactic, scammers send out official-looking emails that tell consumers to begin sending their mortgage payments to a new lender. If you get such an email, don't respond. If you follow the directions in the email, you'll only find yourself sending your money to the scammer's bank account. If you have any questions about possible changes to your mortgage terms, call your lender directly and ask. Although loans are often sold to investors and lending institutions do sometimes change names, you'll never be notified of changes via email.

If you believe that you've been victimized by an email consumer scam, you can file a complaint at www.ftc.gov. You can also visit www.consumer.gov/idtheft if you think your identity has been stolen or compromised. As a precautionary measure, you can further minimize your risk of becoming a victim of identity theft by ordering a free copy of your credit report from one of the three major credit bureaus once a year. However, your first line of defense will always be NOT responding to the various email scams you receive in the first place!

Copyright © 2006 Jeanette J. Fisher

Free Credit Help Tips ebook helps you with the five mortgage requirements. Learn how to qualify for your first home or multiple investment properties at WorryFreeCredit.com

Q & A about Credit Inquires

Q: To many recent inquires impacted my score. I need at least 50pts for 100% financing by October to buy a house. I'm currently at 532 FICO score. Please help!
Sandra

A: Hi Sandra,

From an interview with a credit expert at TransUnion in Fullerton, California who wouldn't give me his name, I was told that too many inquiries would not lower a credit score by more than 20 points. The way he explained the point deduction goes like this: 2 points for each inquiry up to three per month; then 5 points deduction for each inquiry thereafter for one year. Unless you "pause for six months, then you would go back down to 2 points deduction and build from there. First he said that your score couldn't lose more than 20 points and then he explained how you could.

Exceptions to this rule include a buffer zone when you shop for a real estate mortgage or auto loan within either a ten day or fourteen day period. (Even the "expert" didn't know how many days you get!)

Credit reporting agencies (CRAs) have many pages online for you to research. Some fact I gathered state:

* You get 14 days in a mortgage or auto loan buffer zone where inquires get grouped together.

* You get more deductions for fresh inquiries and those over six months go down in negative deductions. (No CRA stated how much each deduction counts.)

* CRAs say that potential creditors and lenders look at an applicant with too many inquiries as "desperate." The CRAs then say the lender has no way of knowing whether or not the loan was approved, which would mean that the borrower could owe more money than what is listed. However, if the CRAs don't care and blame it on the lenders, why do the credit agencies compute inquiries into your credit score? And, with the instant reporting, any new loans should show up on your report!

What you can do about inquiries:

Look at your inquiries and ignore reviews from the CRA, reviews you instigated, tenant screening, and reviews from your existing creditors. These "soft inquiries" don't count against you.

Find inquiries from lenders you don't recognize. Write a letter to them and ask them to remove the inquiry from your report.

Besides IRS inquiries (which imply that you have a pending lien or action against you), collection agency review inquiries impact your score the most. These extremely negative inquiries tend to stay on reports longer than the law allows (7 years). People ignore them because they mistakenly believe that since they are only inquires, they don't mean much.

Dispute Process

Dispute inquiries and ask for removal. Write to the creditor direct by a certified or registered letter.

Sample Letter:

Dear Sir or Madam:

I discovered an inquiry from your company in a recent review of my credit reports. I do not recall authorizing you to review my credit history or report. Based on the FCRA, I would like to be sent proof that I initiated or requested for you to review my credit. Please forward a copy of my written authorization. If you cannot send me written proof, please promptly remove the inquiry from my credit report (name which credit agency) and send me confirmation of your removal action.

Thank you for your timely reply. I need to provide housing for my family and I am sure you don't want to harm our efforts.

Sincerely,

Sandy Smith

If all you have are too many inquiries, your credit score should be higher than 532. Therefore I assume that you will be sending other letters to the CRAs to clear other negative items. That's why I suggest you take care of the inquires issues by contacting the companies directly.

We can tackle other issues next time.

Good luck getting your dream home!

Jeanette Fisher

P. S. Did you get the free ebook about Credit Tips for Mortgages at Real Estate Credit Help?

Worry Free Credit Help

Save Gasoline Costs with a Gas Company "Rebate" Credit Card?

The cost of gas has continued to inflate over the past thirty years. Gasoline companies vie for your valuable business by offering tempting rebates and other conveniences. Exxon makes it easier for you to buy; all you need to do is wave your card and fill up. "Speedpass: It's more convenient than cash and faster than a credit card."

How much do you want to pay for convenience? Stop and think before you apply for another credit card. What impact will an additional credit card have on your credit score?

Your credit score goes down a few points each time you apply for credit.

Your credit score goes down when you use unfavorable "consumer" credit. Gas company type of credit isn't considered prime by mortgage lenders. In fact, the type of credit you use influences ten percent of your credit score.

Saving a little money for gas can cost you a lot of money in higher interest rates on your mortgages.

Also, gas company credit cards usually charge a higher interest rate than a major credit card like a bank Visa or MasterCard account. Check the annual fee. Some companies charge as much as $79 in annual fees. The big problem with gas credit cards--consumers let the account balance roll over to the next month and end up paying interest charges on top of the expensive gas. Will the 5 percent rebate make up for all these charges?

Now, for the good news...

Some banks offer quality Visa cards with rebates for gas purchased at any gas station. For instance, MBNA America Bank's AAA Diamond Advantage Visa gives you both reward points and gift certificates. Other banks like Citibank partner with gas companies to issue a MasterCard with a 5 percent gas rebate and 1 percent rebate on general purchases. When you make the minimum number of purchases, your annual fee is waived. Maybe it's time to transfer your airline mile credit cards into gasoline reward cards.

Choose your credit wisely. Determine your financial goals. Do you want to build wealth in real estate? Then make your number one priority for your credit: mortgage finance qualifications. Weigh your options of gas rebates with the bigger picture.

Free Credit Tips for Mortgage Finincing ebook: Real Estate Credit Help

Copyright © 2006 Jeanette J. Fisher

Credit for Real Estate Investing

Real Estate Investing: How to Get Started

By Jeanette Joy Fisher

The number one beginning real estate investors' first question is: "How do I find a bargain house to make money?"

Actually, their first question should be: "How do I get financing?"

How to Get Started in Real Estate

Worry-Free Credit Clinic with Terry Draine & Jeanette Fisher

Are You Serious about Buying Real Estate--

* Your first home?
* Your first investment house?
* Multiple investment properties?

Is it too Late to Make Money Investing in Real Estate?

Get expert advice from two real estate professionals with different viewpoints.

April 27, 6PM Pacific Get the call information:

http://worryfreecredit.com/teleseminar.htm

Free Credit Help Teleseminar on Mortgages

Join us Thursday, April 27 for a free teleseminar on how to get the best financing. Guest Terry Draine, loan officer, will answer your questions.

Send in your questions

Free Credit Help Teleseminar

Credit for Real Estate Investors Teleseminar Tonight

Find out what it takes to get financing for fixers.

Join our FREE real estate investing teleseminar.

April 18 at 6 PM Pacific (8pm Central/9pm Eastern)

"Are You Serious About Wanting to Make Money Investing in Real Estate?"

I will interview Joe Luckino and grill him about his five flips he's doing--this month!

Find out how to finance with no money down!

Topics:
How to flip two houses a month
How to start out--buying and selling
How to obtain financing for fix & flips and rentals
How to find the "Good Deals"
What to do to these houses to move them quickly
How to advertise houses
How to do commercial deals and how to finance them without 25% down
How to quickly find good, reliable contractors who will not nickel & dime you to bankruptcy

Register:
Free Real Estate Teleseminar

Joy,

Jeanette Fisher

Joy to the Home, Design Psychology
Homes for glorious living and top-dollar sales
http://doghousetodollhouse.com

###

Question from Sy: How does one start out getting financing?

Sy, I can't email your answer because credit, cash, money, mortgage and other words needed are considered SPAM.

Real estate investing doesn't require a lot of cash. You can buy houses, even as an investor, with no money down. You will need to have the ability to pay for repairs if you purchase a fixer, but many investors even finance these costs with the purchase mortgage.

Real estate investing doesn't require great credit. Of course, the better your credit, the less you pay in mortgage costs. But, you can get started investing in real estate with less than perfect credit and then use your new wealth to improve your credit score.

See the articles about real estate financing

Only here: Discount link for print book Credit Help! Get the Credit You Need to Buy Real Estate


Talk to a loan officer. See our list of recommended loan officers.

If you don't own your own home, that's the best place to start. Home financing is easier and less costly than investment property loans. Our son bought his home plus three apartments with only $500 down. He goes to college and doesn't even have a job. (Call Rob for that loan. His office has branches in most states.)

Joy to you in real estate investing,

Jeanette Fisher
Real Estate Investing Information

New Home Mortgage Elimination Scam

It's every homeowner's fantasy: to own their home free and clear. There are lots of legitimate ways to pay off your mortgage loan faster, but here's the latest scam for folks hoping to eliminate their entire 30-year mortgage--in less than a year.

Mortgage Elimination Scam

Credit Reporting Agencies Selling Your Information

It's not well known, but if you have recently applied for mortgage credit, the information you shared was probably sold within twenty-four hours of your application. Credit bureaus commonly sell what they term "trigger lists" of folks who have recently contacted mortgage lenders.

Read the rest of the story and about gas "rebate cards"

Free Credit Help Tips Newsletter

###

Beware of Predatory Lenders

As the real estate market slows down and interest rates creep up, it's more important than ever to become a knowledgeable consumer. Learn the basics of mortgage lending, so you'll know when you're being charged too much for a loan or for things you don't need. Shop around to see what's available, and then make sure you're comfortable with your loan payment, because you'll be paying that amount for many years.

Predatory Lenders

Rebuild Your Credit to Finance Real Estate

By Jeanette Joy Fisher

If you're run into problems buying your first home or investment properties, here are some tips to rebuild your credit.

Establish or Rebuild Your Credit with Secured Credit Cards

Whether you're just starting out in the world of credit or hoping to rebuild a damaged credit report, using secured credit cards can help. However, you'll need some cash to get started.

First, let's define what secured credit cards are. They are REAL credit cards, generally Visa or MasterCard, that can be used for anything Visa or MasterCards can be used for. The difference is that they require the cardholder to deposit a certain amount of money into a checking or savings account to use as security against the card.

Secured credit cards also differ from debit cards in that secured credit cards are loans made against the money in your account, rather than simply having the money automatically deducted from your account, as is the case with debit cards. In that way, they can be a helpful tool toward either establishing or reestablishing your credit.

The interest rates on secured cards are generally higher than on standard cards, but not always. For instance, the website www.bankrate.com lists twenty-four secured credit cards, starting at 7.2% and going as high as 23.98%. Annual fees can vary from zero to $69.00, according to the site, as well.

Normally, you'll need to deposit at least $300 into a checking or savings account, which will then determine your credit limit on the card. (Each card will be different, so you'll want to do some shopping for the card that best suits your needs.)

Secured cards can allow you to begin rebuilding your creditworthiness by charging responsibly and then repaying according to your agreement. They can be a relatively quick way of either establishing or reestablishing your credit, and are worth checking out in your plan to gain control of your financial future.

Copyright © Jeanette J. Fisher

Jeanette Fisher teaches how to get out from under credit card debt, how to use credit to make money, and six ways to build strong credit to finance your first home and multiple investment properties. For free credit advice and free ebook "Credit Tips for Mortgage Financing," see http://worryfreecredit.com

Real Estate Credit

Credit needed to buy real estate is not the same thing as having good credit scores.

Besides your credit score, mortgage lenders consider your debt-to-income ratio and other credit matters, unlike other credit grantors. Qualifications for consumer credit, such as credit cards, personal finance company loans, and auto financing, differ from mortgage qualifications.

In fact, you get different credit score ratings when you shop for an auto or consumer loan. Read that again. You get different credit score ratings from different types of lenders. Loan officers for mortgages see a different credit score number than an auto finance credit manager sees.

One day, my husband's middle credit score for mortgage financing was 725. Later that day, his credit score was 760 for auto financing. Credit scoring models differ for different types of loans. So, if you've recently been told that your credit score was a certain number, don't think that other credit granters get the same number. You can buy a car and get a credit card based
on one credit formula, but you might not qualify for a home mortgage.

On the other hand, just because you've been turned down for a credit card or an auto loan, doesn't mean that you can't buy a house! If you're paying rent, you can afford housing. Often, rent costs more than a housing payment. Mortgage lenders know this fact.

Tip
Don't waste your money buying your credit score. The score you get will not be the same score a car dealer or a mortgage lender sees.

When you apply for financing to buy real estate, lenders review your credit report, which they rate by your credit score. To qualify for mortgage financing, other factors come into play. Understanding all the qualifications helps you prepare for the best possible rates and the lowest mortgage costs.

Jeanette Fisher teaches how to get out from under credit card debt, how to use credit to make money, and six ways to build strong credit to finance your first home and multiple investment properties.
Free ebooks "Credit Tips" http://worryfreecredit.com
"Flipping Houses" real estate investing information

Free Credit Repair Help Articles & Advice

I'm making a select article directory of helpful credit repair articles. Email me your credit repair articles.

Please write your own content and stop posting blurbs with your linking text on my blog. Google closed this blog down briefly because I allowed too many spammy posts. I can no longer afford to be kind and permit linking text comments.

If you post an article, you will get a linking text in your author bio.

Merry Christmas,

Jeanette

P. S. You can email me from the bottom of the new credit help article directory.

8 Insider Secrets of the Credit and Lending Industries

Learning Annex, Los Angeles fun and facts...

Repair Your Credit and Unlock Your Financial Future
with Brenda Aguilar

Are you concerned about your credit? Do you want to improve your financial future? Looking to get the best deal on your next car or home loan? Or maybe you have been an unfortunate victim of "the unexpected" - divorce, medical problems, bankruptcy?

Do you think that there is no way out? Well there is! Whether you are currently in debt, or fear you're falling into debt, this empowering class is for you.

Let Brenda Aguilar be your guide to establishing and maintaining a solid credit rating. Her strategies can help save you thousands of dollars!

You'll learn:
* How to easily understand your credit report & get it in shape
* The 3 key factors lenders use to determine your financial health
* What the wealthy do to pay less taxes
* How to save thousands on your credit cards
* How to move from bad debt to good debt
* Strategies to improve your FICO scores
* The secrets of the wealthy.

Brenda Aguilar's company Financial Wealth Strategies has been teaching about investing in real estate and credit repair for over 4 years.


Course 805SLA, Section A
Tuesday, January 24, 2006 from 06:45 PM to 09:30 PM
Location: WESTSIDE

Discount Applies: Take 5.00 off this course for enrolling on the web!

Repair Your Credit and Unlock Your Financial Future

Free Credit Help Teleseminar

Get the Credit You Need to Buy Real Estate

Get the Credit You Need to MAKE MONEY!

Learn how to repair your credit and get the credit needed to build wealth. Don’t limit yourself to just repairing your credit. Find out what it takes to use other people’s money to finance your dreams.

This class doesn't give you the same information as "credit repair clinics" who can damage your credit. Because so many of my students needed credit improvement to finance property, I researched the best way to strengthen credit specifically for mortgage loans.

Read more about it:
Free Credit Help Teleseminar

Happy Thanksgiving!

Jeanette Fisher
Worry Free Credit Help Information

Worry Free Credit Help

Get out of credit card debt worries for life. Stop charging silly Christmas gifts and give gifts that you can afford to pay cash for. Learn how to use your credit to make money. Then you can pay off all your bills and live worry-free.

Get the credit you need to make money.

Don't Shop 'til You Drop on the Friday After Thanksgiving!

Save your credit! Don't get caught up in the commercialism of Christmas shopping.

First, why do you need credit cards? If your answer was to charge luxuries that you can't afford to pay cash for-- that's the wrong answer! You should never charge luxuries unless you can pay them off at the end of the month. Charging items you can't afford make it hard to sleep at night.

If you answered to by food and gasoline--that's also the wrong answer! If you need to charge consumables, you're paying too much for items that no longer benefit you.

The are only TWO reasons you need credit cards.

1. Emergencies
2. To make money

What's that? Make money with credit?

Yes! Strong credit allows you to use other people's money to buy real estate.

Build up your credit scores and your other mortgage requirements so you can buy houses.

Stay home the Friday after Thanksgiving. You'll miss all the frantic crowds, traffic, and you'll save your credit.

Free Credit Help Teleclass
Saturday, Nov. 26 10:00 AM
By invitation and for "Credit Help! Get the Credit You Need to Buy Real Estate" book buyers.

Note: the book is going on special promotion with bonuses later this week because the publisher is changing the sub-title. Limited quantities available with the old title. Credit Help on Amazon.

Look for the website changes for the promotion this week. Send me your receipt if you purchase from Amazon to get the bonuses.


Copyright Jeanette J. Fisher

"Sub-Prime" Lenders and Politically Correct Terms

If you want to get up to date, change your language and your labels. "Sub-Prime" lenders now get the label "Non-Prime" lenders.

I just read an article by an author promoting a website filled with goggle ads and no real content. The article said you can get a loan if you have bad credit.

Sure, you can get a mortgage with poor credit, but you will pay a lot more for your loan and higher monthly payments.

If you see articles on sub-prime lending practices, make sure you get the rest of the story. Besides paying more money for your mortgage loan, you may also pay hidden fees with a yield-spread premium. For more information, read about Predatory Lenders.

Improve your credit with help at the Real Estate Credit Help Center.

Posting Spam Links on this Real Estate Credit Help Blog

Hi,

I really love to help people finance their dream homes and investment properties. The intent of this blog is to post articles to help home buyers and beginning real estate investors.

Please don't post spam links here. They will be removed.

Google notified me that they think this is a spam blog because of people posting comments with links unrelated to real estate credit.

I work hard to maintain my blogs and appreciate your cooperation. If you want a legitimate link here, write a great article and email it to me with your author bio and website.

Thank you.

Joy!

Jeanette

How to Make a Wise Home Purchase and Avoid the Top 14 Home Buyer's Mistakes

Many home buyers rush into a home purchase without getting enough information. A home purchase, probably the one of the biggest investments of your life, needs informed and cautious consideration. Don't let impulsiveness or ignorance ruin your enjoyable home search and purchase.

Here are 14 common home buyer's mistakes to avoid:

1. Don't wait to talk to a mortgage lender and check your credit. Take care of any credit issues and prepare your finances to meet all the mortgage requirements. Make sure you satisfy all six credit requirements, not just a good credit score.

2. Don't wait too long to buy. Many renters pay more for an apartment than they would pay for a mortgage payment.

3. Don't buy more house than you can afford. Keep your payments within reason and have a backup plan for emergencies. Even though you qualify for a certain mortgage amount, you must feel comfortable with the payment.

4. Don't fall in love with the home for all the wrong reasons. Even though I mostly tell home sellers to use home staging strategies to sell for top dollar, my advice to home buyers is to look past all the staged glamour. Look at the bones of fixer houses to see if you can turn an ugly house into a dollhouse.

5. Don't work with the listing agent or the wrong buyer's agent. Get your own agent who represents your interest, one who listens to your needs. However, if you're an experienced investor who knows how to buy houses, sometimes you can save money working with the listing agent by asking for a discounted selling commission.

6. Don't buy in a neighborhood you don't know. Check at night to see what activities take place. Ask the neighbors and the local law enforcement about crime statistics.

7. Don't buy a home with an incurable defect, such as: irreparable structural damage, traffic noise, near electrical or sewage pump stations, near a mini-market with people hanging around, insufficient parking, or poor floor plan.

8. Don't buy too far away from work. Drive the route during rush hour to test how you will feel, how much time it takes, and how much gas you buy. Your happiness outweighs the home’s amenities. Calculate gas expenditure savings for a closer home and add this amount to your possible mortgage payment.

9. Don't forget to check zoning and county planning plans. Know what the current zoning allows you to do and what the planed zoning around the property will bring. You need to know if an airport, freeway, or apartment buildings will be built nearby.

10. Don't pay more than you need to buy a house. Research the sales prices yourself of recent sales. Let an agent guide you, not sell you. Many buyers offer more than they need to because they fall in love with a particular home.

11. Don't pay too much for financing. Get your credit in good shape before you start looking for a home. Find out what price range you qualify for and arrange financing so you can make offers. Before you sign any mortgage papers, shop for the best terms. Many home buyers, grateful that they qualify, overpay mortgage costs and interest.

12. Don't forget to get a home inspection from an impartial third-party. Don't just rely on your agent's referral. One agent we worked with was married to the home inspector she recommended.

13. Don't misunderstand what comes with the property. In some states, leaving the refrigerator is customary. However, in many other locations, the stove and refrigerator must be included in the sale contact as personal property that stays in the home.

14. Don't put up a "Non-Refundable" earnest money deposit. Don't let a hot seller's market or your agent's pressures convince you to put up a non-refundable deposit.

Always leave yourself a way out of any purchase contract until you get your home inspection and have time to fully investigate the property, neighborhood, and financing. Inform yourself with good home purchase information.

Copyright © 2005 Jeanette J. Fisher. All rights reserved.
Jeanette Fisher teaches home buyers how to satisfy the six credit requirements to buy their dream home or multiple investment properties. For free Credit Tips for Home Financing and more home purchase information, visit http://www. recredithelp.com

Home Buyer's Hidden Costs

Home buyer's who purchase a home without a real estate agent (or sometimes purchase through an inexperienced agent) can find out too late they don't have enough money to close and move.

10 most overlooked costs home buyers miss:

1.) Property Taxes and Assessments
Home buyers often need to set up an escrow account with the new mortgage lender. This means that they must pay a portion of taxes upfront. In some states, the seller has already paid the local taxes and this amount must be paid back to the seller at closing. Also, some counties have transfer taxes whenever a property changes hands.

2.) Insurance
Fire insurance or a homeowner’s insurance policy usually needs to be paid for up front. Although you may be able to get an insurance binder from your company on a payment plan, most mortgage companies require the first year paid during escrow or closing.

3.) Appraisal Fees
Mortgage lenders require appraisals to make sure your property covers your loan amount plus their investment risk. The buyer normally pays between $150-$450 to the appraiser.

4.) Survey Fees
Some lenders require a property survey. You may also want a survey if the property lines are in question. Survey fees vary from $600-$2,500, or more for large parcels.

5.) Septic System Certification
If your new property does not connect to public sewers, you may need a septic clearance for your lender. Often the home seller pays this cost, but you want to make sure you get no hidden charges or surprises.

6.) Water Quality Certification
The same holds true for properties with a well and not public water service. For your own piece of mind, you will want to check the water quality and have this clause as a condition in your purchase contract. Not only do you want to make sure the water quality passes, you want to make sure the well has plenty of flow so you don't run out of water.

7.) Miscellaneous Origination and Loan Fees
Your mortgage lender adds fees for processing your loan, document preparation, underwriting, closing, funding, and sometimes "garbage fees." Check your estimated costs statements and look for hidden fees. Before committing to a lender, shop for your best loan and compare lender's costs.

8.) Association and Maintenance Fees
Most buyers understand that a condo comes with association fees. However, some housing developments also charge maintenance fees. Don't assume that the fees will be nominal. Many condos in California have association fees over $400 per month. Some of these fees need to be paid annually, which means a home buyer needs to pay upfront.

9.) Utility Service Fees
Check your hook up and installation fees for water, gas, electricity, cable or satellite TV, phone, trash, sewer and other services. Sometimes the water department covers the sewer and trash service. These fees quickly add up and you don't want any surprises like a $340 water deposit required by some companies.

10.) Moving Costs
Plan your move before committing to a purchase. Know whether you can move yourself or need to hire professional movers. You may be shocked to find out the costs involved. Ask for referrals of clients and check out moving companies. Prices for truck rental and moving companies vary.

Make sure you have all your purchase and moving costs covered before you make an offer to purchase a home. You don't want to find out when it's too late that you need more money.

Copyright © 2005 Jeanette J. Fisher. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)

Jeanette Fisher teaches first-time home buyers and beginning real estate investors the six steps to home financing. Free ebook, Credit Tips for Mortgage Financing. http://www.recredithelp.com

Real Estate Credit Help: Why Your Credit Score Matters

Why Your Credit Score Matters
By Ed Vegliante

Among the many innovations that emerged after World War II, credit use has become a major factor in our entire economic profile. As a result, your credit rating is the most important factor in determining your credit APR when you apply for any type of credit: credit cards, 0% APR transfer offers as well as mortgage and car loans.

What’s a credit score?

Credit reporting was created more than 100 years ago, when small retail merchants banded together to trade financial information about their customers. These merchant associations formed small credit bureaus, which later consolidated into larger organizations. By the 1960’s, consumers demanded the right to examine their credit reports and amend false or misleading credit information that had been withheld from them. In 1971, Congress enacted the Fair Credit Reporting Act, giving consumers the right to view and correct their records, as well as privacy protection as to who had access to these records.

A fair credit scoring system was needed too. In 1989, Fair, Issac and Company, in conjunction with Equifax, created a credit scoring system, called “FICO”, this credit rating scoring system creates a summary of your credit history. Low scores mean that you may not qualify for a good rate for the credit you want. Some lending institutions may use your credit score to set the overall fees for the loan you are requesting. In the end, a good credit score can save you money.

Factors that affect your credit score

*Your payment history (35%): your score is negatively scored if you have paid bills late, had an account sent to a collection agency or if you have declared bankruptcy--the more recent the problem, the lower the score. For example, a 30-day late credit payment will hurt you more than a bankruptcy five years ago.

*Your total outstanding debt (30%): If the amount you owe on your credit card is close to the credit limit amount, the more likely it will affect your credit score negatively. A low balance on two cards is better than a high credit limit balance on just one.

*Length of your credit history (15%): The longer your credit accounts have been open, the better your score will be.

*Recent inquiries on your credit history (10%): If you have recently applied for several new accounts, it may negatively affect your score. Moreover, while you are in the “wait” period for getting approval for that new home purchase, many loan officers will advise you to delay making ANY new credit purchases until the loan is approved.

*Types of credit used (10%): Loans from finance companies generally lower your credit score. This is especially true if you don’t have a lengthy credit history to base upon your credit score determination.

What the numbers mean

Credit scores range from 300 to 900, with the national average around 650. According to the FICO scoring system, the lower the score, the default risks become higher. They base this rating on historical industry standards, which show a direct correlation between low credit ratings and credit defaults.

The three credit reporting agencies (Equifax, Experian and TransUnion) all have different credit rating criteria. It’s not unusual for you to have a different credit score, although they tend to be in a close range. Most lenders average out the credit scores between them to arrive at a logical mean credit score number.

How to improve your credit score

*Pay your bills on time. (If you can’t make a payment on time, contact your creditor and request a payment schedule. Most credit card companies will offer you an option to pay your balance.)

*Maintain low balances on the credit cards you use. (Determine how you will use your credit card, and what type of credit card works best for you.)

*Don’t close unused credit card accounts just because they are inactive. (By keeping a credit card account dormant for some time signifies that you are a responsible credit consumer.)

*Finally, get a copy of your credit report annually; it is now free to all consumers nationwide.

Your credit card score is the most important factor in determining your credit availability. Here are some insights as to what is reported and what you can do to keep a high credit score.

Ed Vegliante is the owner of http://www.credit-card-surplus.com, a well organized credit card directory enabling the user to compare and apply for a credit card. View a variety of credit card offers with links to secure online credit card applications.
Article Source: http://EzineArticles.com/

Real Estate Credit Help: How to Buy Your Own Home

How to Buy Your Own Home
By Ailsa Forshaw

Buying Your First Home

Buying Your Own Home isn't nearly as complicated as some folks make it out to be. Your first step should probably be to contact a Mortgage Broker (check out the on-line Mortgage Companies on my Site -- they're a great way to quickly find out how much you qualify for, and they often have better rates than the standard Banks...). or your Banker to Pre-qualify for a Mortgage.

I happen to prefer Brokers because they are waaay more likely to actually get you a mortgage! Many banks have created an environment that severely limits most people's ability to get a loan, these days. If you've gone to your bank and they've flatly turned you down, don't give up. Contact a broker and make an appointment to go over your financial information (for Goodness Sake, be honest - never embellish information with any financial institution). At the very least, you'll find out how much you can afford to pay for a property, or you will find out what you have to do in order to become qualified.

I have heard some bankers tell potential buyers that what they really need to do is buy lots of Retirement Savings Bonds (the banks have special names for them that you are most likely familiar with), which they happen to be selling that day… then the person can re-apply for a mortgage after their huge purchase of said banking product. Of course, now the potential home owner has no money left for a Down Payment. Much better to save your money in a safe Money Market Account at the bank (see, they're still making money!), or in a Savings Account that you don't regularly dip into.

Set your sights on something that is realistic. Don't go looking at all the 10,000 foot Mansions when you haven't started saving your money for a Downpayment, yet... Start with a Condo or Smaller Home, or head out of the City to nearby Towns to see what kind of Market Prices are out there. Usually, it's way less expensive to live outside of the city, with the exception of Estate Areas, which are a lot more expensive, given that they'll have Architectural Controls to allow only very large homes.

Don't worry about the whole "I can't live in the Suburbs..." . Better to think of it as a place of your own that you own. Your friends can laugh at a HOMEOWNER -- who's laughing now, hmmmm? And 2 - 10 years from now when you're ready to move on, you'll have sooo much more money to invest in your next home, and you probably won't be hanging with those crazy friends, anyway! Although it would be fun to invite them for cocktails at your new Mansion, 'cause your early investment really paid off, and now you've just finished building it! ha,ha,ha! You can laugh yourself silly, and just blame it on the drinks!

Try to buy as new as you can, since Mortgage Rates are cheap, right now, and it's easier to come up with a monthly mortgage payment that is reasonable than to find the cash to fix major repairs in an older home. A house that is in very good repair is a good choice, too - it's the traditional 'fixer-upper' that used to be considered a good deal that is actually far more expensive in the long run.

Make sure to find out what the Condo Fees are, if the property you're looking at has a Condo Association. Check out the house taxes, too. Some smaller towns actually have higher tax rates than larger cities. If it's a pre-owned home, you can find out the general heating/cooling costs. The important thing is not to get in over your head. Stay moderate, never go beyond your means. Remember that Brand New Homes also come with huge costs that will not be included in your Mortgage. Little things, like grass, curtains, and perhaps a fridge… weigh out the total costs to see where you'll find the easiest place to start.

Now, it's true that the financial institutions have different Mortgage Rates depending on the percentage of the value of the property that you have for a Down Payment. If you put 5% down, your Rate will probably be higher than a Borrower who is putting 25% or more down on a property. It's based on the risk factors involved for each person borrowing from the institution. The Lenders always have to protect themselves. The important thing is just to get into a home as soon as you can. Don't wait until you have 20% to put down - just get into a property as soon as you can while these rates are so remarkably low.

You can always live there for a few years, sell it for a profit (always good!), and then make your move up. At the very least, you'll be investing the $6,000.00 (and waaay up, since that number is based on $500/month rent) a year in your own property.

If you are currently renting, the chances are really high that you could be paying less money per month on a Mortgage than you are paying for rent. This is because the Mortgage Rates are so incredibly low.

Make it a point to start taking note of the rates in your area. Start reading the Real Estate Papers, the classified ads in your local paper, and checking out Real Estate On-Line. Get a handle on what's out there that you like and can afford.

Start visiting Show Suites in Apartment Buildings and regular Show Homes. You may be surprised at the deals that are out there, these days. Go for a drive to see if there are properties For Sale in neighbourhoods that you like that are within a reasonable driving distance to your place of employment. Don't forget to add Traffic Time, if you are in a busy city! Bring a notepad and pens so you can jot down the Realtor's name and number. Often, there will be a web address, and you can check out the house on-line.

We sell our houses ourselves, so there's no reason to be wary of a 'Home For Sale By Owner'. Chances are high they've sold before and know the ropes. If you're on a time crunch, or you're new to the area, you can contact a local Realtor and tell them what you're looking for, and your price range. Again, if you're pre-qualified with a financial institution, this will be much easier. Looks can be deceiving - don't make judgements on a property until you've had a look inside. If you can imagine yourself living there, you've probably found the right place.

Write up an offer and contact a lawyer, Martha, we're buyin' a house!

Real Estate Law is pretty straight forward. If ever there was an easy consultation with a lawyer, this should be it! Your lawyer will lead you through the paperwork -- you just have to listen carefully, sign on the appropriate lines, provide any necessary documents the lawyer may require, and generally be polite! Sounds easy, eh?

You can even share a lawyer (the buyer and seller use the same lawyer when it's a nice, clean deal, with no nut cases involved…this is more common in a private sale), but chances are high you'll have your own. Make sure you have funds set aside to cover the Legal Fees (shop around - you may be surprised how these fees can vary), if they're not included in the deal. Some Builders include Legal Fees with their New Houses.

Now, I don't get why people don't have a good look at any Foreclosure Properties that might be available in their area -- especially if you are looking at buying in a Larger U.S. City, where the housing prices are through the roof. Why not have a wee look around, just in case there's something for you. That's one of the few times when it's worthwhile to buy a 'Fixer-Upper', if it's a great price.

Keep in mind that a Home can go into Foreclosure for many different reasons (Financial Difficulty can come about from a variety of sources...), so there are lots of Homes in Foreclosure that are not 'Fixer-Uppers' -- they are regular Family Homes, Condos -- sometimes even some Bare Land (a Builder's Favorite!). It's always worth a look!

Good Luck buying your own Home -- you can invite me over for Drinks when you move in. You buy the house, I'll bring the gin!

Ailsa Forshaw is a Writer, Builder, Website Owner & Manager, Teacher, Mother... all in Alberta, Canada. She is Married with Two Lovely Children, and one gorgeous wee dog. Her Website, http://www.buildyourownhouse.ca, is chock full of all sorts of useful & fun information to help anyone become Financially Successful, Slim, Trim, and Happy... what more could you want?? Pop in for a wee visit!
http://www.buildyourownhouse.ca
http://www.theScottishDiet.com

Article Source: http://EzineArticles.com/

How Real Estate Credit Differs from Retail Credit

By Jeanette Joy Fisher

Qualifying for a real estate purchase requires different credit than auto financing or credit cards. In fact, you may be able to go out and buy a new car today, but you might be turned down for a home mortgage. On the other hand, you could go out and buy a house and be turned down for an auto loan.

Perhaps you recently applied for a line of credit and were told that your credit score was excellent. When you apply for an auto loan or a consumer credit card, the scoring model computes a different credit score than when a mortgage lender runs your credit. Your credit scores differ for different types of loans. Plus, mortgage lenders run all three credit reports and usually take your middle score as their basis for your loan requirements.

However, some mortgage companies, especially non-prime lenders, will use your highest credit score. For a mortgage refinance, some lenders don't even run a new credit report if all your mortgage payments were made on time. They use the credit score from when you first applied with them.

Besides your credit score, mortgage lenders consider your debt-to-income ratio and other credit matters, unlike other types of credit grantors. Your debt-to-income ratio is the comparison of mortgage payment, including taxes, interest, and insurance to your total gross monthly income.

Real estate lenders also consider:

Your education
Your income
Your employment qualifications
Your overall monthly debt payments

Understanding the difference between good credit and the credit needed for real estate mortgages helps you refinance your mortgage or buy your dream home.

Copyright © 2005 Jeanette J. Fisher All Rights Reserved.

Jeanette Fisher teaches real estate investing and interior design college courses. She became a credit expert to help her students buy their dream home and multiple investment properties. Jeanette is the author of "Credit Help! Get the Credit You Need to Buy Real Estate" and other books. For a free report, "Credit Tips for Mortgage Financing," visit the Real Estate Credit Help Center

Wealth Building – An Advantage of Home Ownership

By Raynor James

As you grow older, the issue of wealth building comes front and center. Wealth building simply refers to increasing the net value of your total assets. Wealth building over time is one of the advantages of home ownership.

Building Equity

Owning a home can help you build wealth in two ways. First, you build equity by paying down your mortgage. A certain percentage of each mortgage payment goes towards a reduction in the total amount owed. Typically, payments in the first few years of the mortgage are primarily applied to interest on the loans. As time passes, however, more and more of each payment is applied to the outstanding loan amount. Before you know it, the $300,000 loan is down to $50,000 and you’ve gained $250,000 in wealth.

Appreciation is the second wealth building advantage to home ownership. Each year, the value of your home will increase or decrease slightly based on market prices. Over time, real estate has always appreciated in value. In the current market, homes in some parts of the country are appreciating at rates as high as fifteen to twenty percent! Appreciation is a very popular subject with homeowners.

Wealth Building Example

Let’s look at a simple demonstration of how advantageous home ownership can be. Assume you buy a home in 2005 for $400,000 and, for the purpose of simply mathematics, pay no down. Over the next 10 years, your mortgage payments reduce the outstanding mortgage by $100,000 and the home increases in value to $600,000. The value of your home as a net asset has grown to $300,000 [$600,000 minus $300,000]! If you had rented during this period, you would have missed out on $300,000 in wealth. This simple example should show you the advantage of home ownership.

Historically, home ownership is one the best ways for families to build wealth. If you don’t currently own a home, you should start looking for one.

Raynor James is with http://www.fsboamerica.org - providing FSBO homes for sale by owner. Visit our "sell my home?" page at http://www.fsboamerica.org/seller.cfm to list and sell your home for free for one month. Visit http://www.fsboamerica.org/buyer.cfm to see homes for sale by owner.

Article Source: http://EzineArticles.com/

Struggling to Make House Payments?

If you're having trouble making house payments, call your mortgage lender.

Since mortgage lenders created programs to help home owners in trouble, foreclosure rates have dipped. Delinquent borrowers now can stay in their houses and "work out" their problems.

Among the programs used: restructuring the note terms to fit the borrower's needs; deferring past due payments to the final payoff of the loan; decreases in interest rates; and sales-in-lieu of foreclosure, which give time to delinquent borrowers to sell their properties to pay off the mortgage instead of foreclosure.

There's no reason to lose your home and equity. Work with your lender instead of ignoring your problems.

Copyright 2005 Jeanette J. Fisher

Tougher Bankruptcy Laws Take Effect October 2005

By James Dimmitt

In just a few short weeks, President Bush’s Bankruptcy Abuse
Prevention and Consumer Protection Act will take effect. In a
nutshell, the new law, which goes into effect on October 17,
2005, makes it more difficult to cancel your debts under
Chapter 7 Bankruptcy protection. Instead, consumers will find
themselves having to file for Chapter 13 Bankruptcy protection
and paying back their creditors over a five year period.

Here’s a look into some of the major changes that will affect
consumers choosing to file for bankruptcy after the new law
goes into effect -

Qualifying - Chapter 7 or Chapter 13?

To be able to qualify for protection under Chapter 7
bankruptcy, consumers will have to face a means test. The means
test determines if your household falls above or below the
median income in the state where you reside. Those whose total
is greater than the state median income will not qualify to
cancel debts under Chapter 7 protection and will alternately
have to file under Chapter 13 and pay back your creditors.

The major intent of bankruptcy reform is to require people, who
can afford to make some payments towards their debt, to make
these payments, while still affording them the right to have
the rest of their debt erased.

The amount you have to pay back under Chapter 13 protection
will be greater because instead of a 3-year pay back period,
that time frame is now extended to five years - to ensure your
creditors get paid.

Credit Counseling

Anyone filing for bankruptcy under the new law will be required
to go through mandatory credit counseling. Be careful before
choosing a credit counselor as this field is filled with people
looking to line their pockets while emptying yours.

To find a trustworthy counselor, check to see if there are any
complaints against them or their organization filed with your
local Better Business Bureau. Secondly, find out if they are
certified by the National Foundation of Credit Counselors or
the Association of Independent Consumer Credit Counseling
Agencies. Finally, find out if they have not-for-profit status.
Personally I recommend Consumer Credit Counseling Services as
they meet all three of the above criteria. They can be reached
at 1-800-888-2227 and can connect you with a local office.

The Cost Factor

Filing for Chapter 7 protection under the old laws normally
cost under $1,000. You should expect to pay more under the new
laws as filing fees have been increased by $60. Additionally,
your attorney will be required to double check all your
financial information which will take more of his or her time.
Also there is greater liability imposed on the lawyer which may
cause their liability insurance to increase, which gets passed
on to their clients in the form of higher fees. Under the new
law, many are expecting fees to increase between 25-50%.

Why Were the Laws Changed?

The bottom line is that major commercial creditors lobbied hard
for reform. Companies like CitiBank, MBNA, and other credit card
issuers actively contributed proposed amendments along with
generous financial support to reforming the bankruptcy laws -
and in their favor, according to many consumer protection
groups.

© 2005, http://www.yourfreecreditreportnow.com

About the Author: James is editor of "TO YOUR CREDIT", a free
weekly newsletter with tips to help you manage your personal
finances. Subscribe today and receive his ebook “IDENTITY
THEFT- How To Avoid Becoming the Next Victim!” and other free
bonuses by visiting www.yourfreecreditreportnow.com

Real Estate Credit Help

You may be shocked at some of these credit facts because you've heard otherwise. Qualifying for a real estate purchase requires different credit than auto financing or credit cards.

What you've been told:

1. Pay off your credit cards

2. Close credit accounts

3. You need good credit to buy a house

What you need to know:

1. Paying off your credit cards lowers credit scores

2. Closing credit accounts lowers credit scores

3. You don't need good credit to buy real estate

Why not pay off your credit cards? Paid off credit cards do not compute significantly in credit scores.

Why not close credit card accounts? Credit card issuers frequently raise interest rates on closed accounts.

Credit Requirements for Mortgages

You can buy real estate with poor credit, but you will save thousands in loan costs if you maintain good credit. A bad credit report leaves homebuyers with non-prime loans, which have higher point charges, prepayment penalties, and higher interest charges.

For instance, a mortgage loan of $150,000, 30-year, fixed-rate mortgage, interest rate of about 5.72 percent costs around $870 a month; poor credit scores raise the interest rate over 9 percent and the payments over $1,200. As you see from these payment differences, good credit means that you can finance a more expensive house with the same income, or save $330 each month.

Credit needed to finace real estate is not the same as good credit. Besides your credit score, mortgage lenders consider your debt-to-income ratio and other credit matters, unlike other types of credit grantors. (Your debt-to-income ratio is the comparison of mortgage payment, including taxes, interest, and insurance to your total gross monthly income.) Real estate lenders also consider your education, employment qualifications, and your overall montly debt payments.

Understanding the difference between good credit and the credit needed for real estate mortgages helps you buy houses and save money at the same time!

(c) Copyright 2005 Jeanette J. Fisher. All rights reserved.
Real Estate Credit Help Center

Personal Finance Isn't Rocket Science, So There's No Need To

By Rachel Lane

Are you one of those people who doesn’t open their bank or
credit card statements? Do you take out store cards on the spur
of the moment? Have you been with the same bank simply because
it is less hassle than changing?

If you have answered yes to any of the above questions, fear
not confused consumer, help is at hand, with some assistance
from a few internet tools.

* Internet tool number one:

** The consumer champion site for personal finance information

Websites such as Fool.com, Fool.co.uk and Moneysavingexpert.com
have proved extremely popular with consumers. Fool.com is more
geared towards the US market, whilst Fool.co.uk focuses on the
UK market. Both have an extremely diverse selection of
information from investment and high risk options to personal
finance and low risk options. There are extensive discussion
boards, newsletter subscriptions, finance calculators and
competitions. These sites not only answer your questions, they
make you want to ask more.

Fool.com, Fool.co.uk and Moneysavingexpert.com are community
based sites and function on consumers exchanging information
between themselves, whether that’s about passing on
recommendations or expressing concerns. The article “Ten
Reasons To Fear The Future” by Cliff D’Arcy” on Fool.co.uk is a
particularly good introduction to the financial aspects of
modern life.

Martin Lewis has almost become a household name in the UK
through his website Moneysavingexpert. The outspoken journalist
and presenter offers a comprehensive resource on a range of
personal finance topics. If you can put up with the cheesey
photos of Mr Lewis and his catalogue poses, you will
undoubtedly find this site extremely helpful.

* Internet tool number two:

** The price comparison site for personal finance information

Kelkoo, moneynet.co.uk and Lowermybills.com (US) are now
commonly exploited by consumers to ensure they are getting the
best deal on their purchases. However, it is probably fair to
say that more people shop around for clothes and music, than
they do for their personal finance products, which is worrying
as these cost significantly more.

* Internet tool number three:

** Online banking and account aggregation tools

The internet can be a scary thing and there is still much
scaremongering about online security. However your details are
often as secure online, as they are offline and providing you
choose and hide your password effectively – there should not be
a problem with people accessing your confidential information.
Choose a password of eight characters or more, preferably
replacing some letters with numbers, such “1nternet” or
“passw0rd”.

Set yourself up with online accounts and you can proactively
manage your finances yourself, without waiting for statements
through the post or call centre agents to take your query. You
can also save yourself bank charges by transferring funds
yourself over the internet. Some banks charge large amounts for
transferring funds when you can do it for no additional cost at
all.

Personal finance doesn’t have to be about debt and the
efficient co-ordination of funds may save you hundreds of
pounds in the long-term.

Resources:
http://www.fool.com
http://www.moneynet.co.uk

About the Author: Rachel would be really interested to get
feedback on whether anyone actually reads this section.If
someone feels like rescuing Rachel from obscurity, she would be
grateful for an e-mail out of here. Rachel writes for the
personal finance blog Cashzilla – Cashzilla Blog
E-mail
Source: http://www.isnare.com

Bad Credit? How to Buy a "For Sale by Owner"

Today's home sellers want all their money. It's nearly impossible to find a home seller willing to be your bank.

However, it doesn't hurt to ask sellers to help you. Home sellers who sell "For Sale by Owner" don't have to pay a real estate commission, so you're more likely to get help from someone selling FSBO.

Another way to get the seller to help you: ask for them to pay your closing costs. If you have a decent down payment, you can get mortgage financing. You may need to pay higher loan costs and interest rates, but you can get a home of your own.

Then you can work on improving your credit and refinance with a better loan.

(c) Copyright 2005 Jeanette J. Fisher

Free Credit Tips for Mortgage Financing Report

New Real Estate Credit Help Center Service

Every time I figure out how to do something in HTML code and it turns out right, I feel like I've mastered the computer beast. Check out the FeedBlitz button on the top right. You can now subscribe to this blog and be notified when I post new credit tips.

I sure hope that people who want to finance their first home or multiple income properties will join this free service. I know all my competition will, which is good because so many of them give bad advice and maybe they'll learn the facts about real estate credit.

Also, visit my website, Real Estate Credit Help.

Your feedback on this blog welcomed!

Joy!

Jeanette

Borrower Beware: Eight Questions to Ask When Obtaining a Commercial Mortgage

(ARA) - Unlike borrowing against your home, financing a commercial property, such as a store, office or apartment building, can be a confusing and frustrating experience. Borrowers are often subject to unwieldy demands and requirements imposed by traditional lenders, such as banks, since these lenders are regulated and generally averse to risk-taking.
Similar to other financial products and services like credit cards or insurance, many options exist for commercial real estate buyers and owners to choose from. “Consumers should take the time to understand all of the elements of a lender’s mortgage program instead of simply focusing on interest rate,” says Brett Evenson, managing director of the Commercial Direct division of Bayview Financial Small Business Funding, LLC, a firm that offers alternative lending solutions to small business owners or occupiers and commercial real estate investors. “Becoming well informed can save a borrower time and money during the loan origination process and in the future.”

Here is a list of the eight most important questions every prospective borrower should ask before selecting a commercial mortgage lender.

1. Is the loan assumable?

Unlike residential mortgages, it is standard for commercial mortgages to charge prepayment penalties for early repayment of a loan. If you think there is a chance you may be selling the property at some point in the future, ask your lender if the loan is assumable by your property buyer. Assumable loans allow a buyer to take over the mortgage terms and loan payments. It is also an excellent selling point that can enhance the marketability of your property when you list it for sale.

2. Is there a balloon payment?

While balloons may be a useful option for residential borrowers looking to lower their rate, it is a requirement of most commercial programs for customers to pay off their mortgage early, generally in 3 to 10 years. A balloon loan will force you to go through the entire loan process again before the balloon date. This means spending thousands of dollars in closing costs, and risking a higher cost loan if interest rates have risen. Even worse, if you are in the midst of difficult times in your business or have vacancies in your property, you run the risk of not qualifying for a loan renewal with your lender. Programs which do not require balloons are thus superior to those that do.

3. What is the maximum amount I can borrow?

Really the first question is one you must ask yourself: what are my capital needs both now and in the future? The majority of borrowers would actually prefer to pay a slightly higher interest rate in order to maximize the amount of money they can borrow. More cash on hand means more capital to invest in your business or additional real estate.

Typically, commercial lenders will loan up to 75 to 80 percent of the property value, requiring the borrower to come up with a 20 to 25 percent down payment. On a $500,000 property -- that totals as much as $125,000 down. However, programs do exist that allow you to borrow in excess of 80 percent of the property value. If maximizing cash is your primary goal, then paying a higher monthly payment may be a small price for the added capital a higher loan-to-value ratio (LTV) provides.

You should also ask your lender if their program allows you to take out a 2nd lien mortgage, either at closing or in the future. Choosing a lender that allows 2nd liens will add flexibility in meeting your future capital needs, and will allow you to capitalize on your property appreciation without a costly refinance.

4. How soon will I have a solid commitment, and how soon can I close?

If you are shopping for a property and need to be pre-qualified for financing, or if you are just in a plain hurry to close, make sure you get a clear picture of your lender’s timeframes. Unlike residential mortgages, traditional commercial lenders often must review your historical income statements, asset statements and other documentation before giving you the thumbs up on your loan application. This can take weeks before you learn whether or not the lender really wants to take you on as a customer. And then, even after your loan is approved, you still run the risk of being turned down by a bank’s “credit committee.”

The result is quite a bit of stress and uncertainty during the loan process. Make sure your lender provides you with clear and accurate information on approval and closing timeframes.

5. How much financial reporting is required, and what covenants must I make?

Beware. When obtaining a commercial loan, many borrowers are not fully aware of all of the future obligations imposed by the lender, beyond simply making the monthly payment. First, many lenders will require you to provide quarterly or semi-annual financial and operating statements on your business or property for as long as you are in your loan.

And, while continuing to provide these documents can be more than just a simple nuisance for small businesses, even scarier is the imposition of financial “covenants,” which are guarantees you must make in the loan agreement about the continued financial strength of your business. If you don’t think this is important, consider the fact that certain covenants could put you in default on your loan if you lose a tenant or experience a tough business period, even if you are current on your monthly payments! Be certain to ask your lender about reporting requirements and covenants. If the risk is not acceptable to you, find another lender.

6. Will I have to maintain minimum assets or deposits?

If you are looking to a bank for your commercial loan, ask your loan officer if you will be required to hold a minimum level of deposits at the bank in order to qualify for the loan. Deposit requirements can be a hindrance if you need future access to that cash.

7. What are the documentation requirements?

As many traditional lenders sometimes require endless amounts of documentation, it is important to ask upfront about the amount and the types of financial documents that are required. Locating and providing copies of leases, operating statements, tax returns, asset statements and other financial documents can be quite challenging and time consuming. Furthermore, many small businesses do not have the level of documentation necessary to support their income in order to qualify for a bank loan. Such businesses are usually best served by alternative lenders.

8. What are the total costs associated with getting the loan?

A little research upfront about the costs associated with the loan can potentially save you thousands of dollars. Be sure to ask about all costs you will be responsible for, including lender points, property appraisal, property survey, environmental reports, and any legal fees that might be associated with the loan. Some lenders will have less expensive alternatives, or will bear these costs altogether.

When shopping for a commercial mortgage loan, remember that there are vast differences between lender programs. Different loan programs should not simply be compared based on the interest rate. It is also important to remember that banks are not the only lending institutions out there. Many alternative lending solutions, such as Commercial Direct, provide customers with a simplified and flexible lending process, without the distraction of a bank’s rigorous requirements. Asking the questions outlined above can save you time, money, and a big headache down the road.

For more information about loans offered by Commercial Direct, log on to www.commercialdirectloans.com.

Courtesy of ARA Content

Read This Before You Co-Sign For A Loan!

By Terry Lowery

It happens every day of the year; a friend, who has had some
problems with their own credit, wants to buy a new car, or
perhaps some furniture for their apartment. The problem is that
they don’t have the cash do it, and because of their poor credit
report, can’t get the approval that they need. They approach
their friend and ask if they would be willing to co-sign the
loan. “I only need your signature to get approved,” they say.
“You won’t have to do anything else!”

Wait!

Before you co-sign that loan, there are some things you should
know. In reality, it isn’t merely signing the loan application,
but a serious proposition. What’s more, if things went wrong and
the friend couldn’t keep up with the payments, guess who would
be responsible for the loan balance? That’s right—you.

If you are thinking about co-signing a loan for a friend or
family member, why not first read the following in order to
understand what you’re about to get into.

Risk

If someone is asking you to co-sign a loan that means that the
professional lender is not willing to take a risk on them. In
other words, their past credit behavior has been so bad that
they lender doesn’t believe they will pay back the loan. What
makes you so sure they will?

Responsibility

By placing your signature in the co-signers spot, you are
guaranteeing that if your friend doesn’t make the payments, you
will. Do you have the finances to cover the loan if it came down
to that? Do you really need another car payment?

Credit Report

You’ve obviously worked hard to keep your credit report
spotless, which is why your friend wants it represented on his
credit application, but did you know that if your friend misses
a payment or becomes delinquent with his payments, that it could
affect your credit report?

Collections

If the account does go into the collection process, it is
possible that the lender could bypass your friend (who they
never believed would pay the loan) and come after you first.
This is true in most states, and it would be important to find
out where your own state stands on this policy.

In addition, you should be aware that by co-sign on a loan for
$10,000, you may actually reduce the amount of credit you will
be able to get yourself because that loan will count toward
your “total debt owed.”

If you do decide to co-sign for a loan, there are some steps
that you should take in order to protect yourself.

First, you should ask to be notified in writing if your friend
misses or is late with a payment. By knowing of any problems
early on, it will help you keep the potential damage to your
own credit report from getting out of control.

Next, you should also get copies of all loan documents and
repay schedules. Ask for a copy of everything that your friend
gets in case there is ever a dispute, you will know what legal
rights you have.

Co-signing for a loan is serious business, and is something
that you should think long and hard about. Even if it’s your
dearest friend who is asking, you have to ask yourself if they
defaulted on the loan, what would that do to your friendship?

About the Author: This article provided courtesy of
http://www.business-grant-guide.com

Source: http://www.isnare.com

Real Estate Credit Help: Debt Negotiation

What You Need to Know about Debt Negotiation on Credit Cards
By Jeff Lakie

Debt negotiation on credit cards is often referred to as credit card debt settlement. Whenever you make a credit card payment- or even pay your utility bills- it usually gets reported to one- or all- of the three main credit agencies. This activity will influence your credit score, which will determine your future credit status. But what do you do, if you find that you can no longer make the minimum payments on your credit cards? If your accounts are behind, or about to fall behind, you can turn to a credit management company, that will help you with your debt negotiation.

When you enrol in a debt negotiation programme for your credit cards, you can stop making payments directly to the credit card companies and begin to pay the debt settlement company directly, which can be a relief in itself and perhaps even help you to save money. The way it works is simple. The debt management company works with your creditors to come up with a lower payoff for your accounts. You, in turn, make one monthly payment to the management company, which holds the money in a trust, making a one time payment on your credit accounts, at the pre-arranged time.

Debt negotiation on credit cards have helped many individuals to find peace of mind and relief from mounting credit card debt. However, it is important to realise that being enrolled in debt management will lower your credit score, whilst you pay back the debt management company.

So, how do you find a reputable firm to negotiate your debts for you? There are many sources to help you get started, such as the Federal Trade Commission. It is very important to remember that you can rebuild your credit in the future, so you should think very carefully about how you proceed with debt negotiation. There are many companies out there that will promise you a clean credit report for a few hundred dollars. Many of these offers are either completely illegal, scams- or both. So, make sure that the company that you will be dealing with has your interests in mind, when dealing with debt negotiation on credit cards.

Jeff Lakie is the founder of Credit Card Resources a website providing information on credit cards.

Article Source: http://EzineArticles.com/

Credit Help: Avoiding College Credit Card Traps

By James H. Dimmitt

Congratulations college freshman! You’re about to embark on one of the most exciting times of your life. By now your parents, siblings, and friends have offered you all kinds of advice on how to make your transition to college smoother - how to get along with your roommate, what classes to take and which ones to avoid, where to find the best off-campus food, and how to stay safe on campus.

One thing they may have not warned you about is how quickly you’ll be bombarded with credit card offers. You’ll find them in your textbooks, in your mailbox, and on every campus bulletin board. You’ll be offered free DVD’s, t-shirts, music downloads, and more in return for completing an application for credit.

Why all this fuss over you for a stupid piece of plastic? Because they love to recruit new borrowers, especially in your age bracket. They know, from numerous studies, that college students tend to be impulse buyers. And even though your impulse purchases tend to be small - pizza, coffee, beer, CD’s, cigarettes, books, etc. - those small purchases can add up quickly.

Fifty-four percent of freshman students and 92 percent of sophomores have at least one credit card. A recent study shows the average college student graduates with between $1,500 - $3,000 in credit card debt.

Here are 7 tips to help you manage your college credit card needs:

1) Look for a card with the lowest fixed percentage rate and a low or no annual fee. Read the fine print carefully - many low or 0% introductory rate offers expire in 6-12 months.

2) NEVER use your credit card for a cash advance. The fees and repayment structure associated with a cash advance are outrageous.

3) Have a budget! Your credit card is not free money. Budget your money so that you can pay off your balance at the end of each month. If you can’t pay off the balance, always make more than just the minimum payment.

4) Pay your bills on time, otherwise you’ll pay a late fee between $25-40 every time your late with a payment. Late payments will also increase your chances of having your percentage rate raised on ALL your credit accounts.

5) Request a low credit limit somewhere between $700-$1,500. The object is to have credit available to meet some of your expenses and in case of an emergency.

6) Less is better. You don’t need more than one or two cards at the most. The more you have the more tempted you’ll be to use them or to “max” them out.

7) Consider using a debit card instead. A debit card is linked to your checking account and purchases are automatically deducted from your account balance. Of course, make sure you have money in your account to cover any purchases you make.

Using a credit card is a big responsibility whether you’re a college student or an adult. Managing your credit wisely establishes a positive credit history which will serve you now and well into the future.

© 2005, http://www.yourfreecreditreportnow.com

Author: James H. Dimmitt

James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book “IDENTITY THEFT- How To Avoid Becoming the Next Victim!” and other bonuses by visiting http://www.yourfreecreditreportnow.com

Credit Repair Scams

You've watched the ads on television, "Erase bad debt!" or "Remove negative entries from your credit report!" If you're suffering from a poor credit rating, those advertisements may seem like the answer to a prayer.

People get taken in every hour by these credit repair companies. Don't waste your money; those programs don't work, and you'll pay hefty fees to those companies, only to end up right where you started, or worse. Sometimes, the advertised credit repair program may actually be an attempt to steal your identity by gaining information about your social security number, bank accounts, and credit cards.

Here's how the credit repair scam generally works:

First, the company contacts the three credit bureaus and tells them that the negative information contained in your files is false. Because the credit reporting agency wants to accurately reflect your credit information, the credit bureaus temporarily remove the negative information while they investigate the claims. Meanwhile, the scammer sends you a copy of your credit file, showing that the negative information has been removed, claiming that your credit history has now been repaired.

It will seem like a miracle, until you learn that as soon as the credit reporting agencies have completed their investigation, any accurate negative information will be returned to your credit report. You'll be back where you started, minus the fees that you paid to the scammer.

When it comes to your credit report, remember that accurate entries will stay on that report for seven years from the time they're reported to the credit agencies. Bankruptcies stay on a report for fourteen years.

There are many honest companies that can help you with debt problems. But how can you know if a company is legitimate? First, scammers will ask for their money up front, while legitimate credit repair companies can't require payment from their clients until they've performed the services they've promised. In many states, they must also give you a detailed written contract, clearly explaining your legal rights and giving you the option to cancel within three days.

The bottom line: know who you're dealing with when it comes to trying to repair your credit. Mistakes can cost you dearly, doing even more damage to your credit, creating even more debt problems, and sometimes costing large amounts of money.

Copyright © 2005 Jeanette J. Fisher - All Rights Reserved.

Forget what you've been told about credit. "Credit Help!" author Professor Jeanette Fisher was forced into becoming a credit expert. She loves helping people buy houses. Get the credit you need to buy one house or twenty. Visit Real Estate Credit Help Center: