Steps to Speedy Credit Repair to Gain Lender Approval

Many homebuyers now and into the foreseeable future will face tight lending standards and the need to improve their credit score to get pre-qualified or pre-approved for mortgages. Be aware of the following steps [you] can take for some speedy credit repair to gain lender approval and the best possible rates, especially if [you] are months away from a purchase:


Credit Card Wisdom

• Paying revolving credit cards down is generally more beneficial than paying down student, mortgage or auto loans.

• Always leave a 30 percent or higher gap between what you owe on the card and the card’s limit. Lenders look for this minimum gap.

• Use cards with care even if you pay off balances each month. Depending upon statement dates, the lender may see big balances.

• Pay down the cards closest to their limits first for speedier credit repair. The lending bank will then see the “gap” it wants to see.

• Do not ask a creditor to lower credit limits. Generally, carrying smaller balances on several cards is better than one large balance on one card.

• Check your credit card limits to make sure the report is correct. Limits may not be reported on all cards.

• Never make a late payment on credit cards or any loan.



Protesting Items

• Protest any unjust negatives such as late payments, collections that are not yours and any items not reported as “paid as agreed” if you paid on time and in full.

• Protest items listed as unpaid that were included in a bankruptcy, and items older than seven years (10 for bankruptcy).

• Focus first on the larger, newer negatives listed on the report.

Don’t worry about smaller items like incorrect address information or an old employer listed as current unless there’s the possibility of identity theft or the file is mixed with someone else’s.

This is certainly not an all-inclusive list, but it’s a great start for [those] needing to focus on their scores before attempting to get pre-approved and purchase a home...

Source: "Do Your Buyers Need Help with Their Credit Fitness?" by Monica O'Neill, RISMedia

Convincing Your Kids To Part With Old Junk

It is a law of the universe: The more personal possessions your children have, the more prone your house is to untidiness. And, no matter how many great techniques you have for keeping things organized, the tendency will always be to chaos unless you have a regular process for purging your children's toys, clothes, sporting gear and other items.


But children are natural pack rats. Convincing them to part with their possessions can be contentious, to say the least. Before you resort to sneaking their old things out of the house by cover of darkness, try these techniques to win their collaboration:

Empathize. Start with the understanding that there is very little that children get to control in their lives. Adults tell them when and what to eat, when to wake and sleep, how they should behave, and how to spend most of their time (either in school or doing homework). It should come as no surprise that, when it comes to protecting their personal possessions, children can be fierce and more than a little unwilling to part with things, even when they no longer really want or need them.

Follow the kid-junk lifecycle. If the toy or possession is new and used frequently, give it a premier place in the child's bedroom. If it is less new but still in play, relegate it to the play or recreation room. If it is old and rarely played with, it goes into storage with an option to come out upon the child's request. (Remember to remove all batteries!) If it has remained in storage for at least a year, it gets assessed jointly for sentimental value. If it qualifies as memorabilia, put it in the child's own memento box to be sent along when he or she moves out eventually. If it has no personal value and is intact and clean, donate it; if it is broken, missing pieces, or excessively shabby, earmark it for disposal.

Keep your own values and opinions out of the process. You may have spent oodles of cash on that fancy, lifelike doll and countless of adorable outfits to go with it, but if your daughter always plays with her ratty stuffed animals, accept her preference. Let her keep the stuffed animals and prepare to either resell on eBay or to find a more deserving home for the expensive doll gear.

Honor their collections. Somewhere between toddler and teenager, many children develop urges to become collectors. Whole toy empires are built on this. Sometimes it is a passing phase or craze, but other times it will become a lifelong passion. Recognize the difference and find creative ways to help your child organize and manage his or her lasting collections. Teach them to be discerning and about the concepts of creating collections with either sentimental or monetary value. Help them to understand, for example, why a collection of rare baseball cards will have long-term value that could appreciate over time while a collection of Funny Bands or Japanese Erasers most likely will not.

Record their histories. When deciding which school papers to keep or throw out, use this rule of thumb: if the work expresses your child's personal thoughts or views on the world-a persuasive essay, a piece of creative writing or artwork into which they have put a great deal of effort-keep it. If the work represents a regurgitation of anybody else's view of the world or is something the child spent little time on creatively, add it to the recycle bin. When the time comes that you no longer want to store those 21 hand-painted plaster statues or the 14 nearly identical soccer trophies handed out each year by your children's coaches, arrange the items in a nice setting, photograph them, then dispose of them.

Encourage philanthropy. Most children (once they get past their terrible twos or threes) are naturally philanthropic. Remind them on a daily basis about how fortunate they are and help them to imagine how happy some other child would be to have an opportunity to play with or own a toy that is sitting unused under his or her bed.

Think source reduction. Debating between cooking dinner and zipping through the fast-food drive through? Factor in the idea that you are likely to acquire three new junky plastic toys in the process. If your child is the intransigent type when it comes to giving up old toys, grab your pots and pans and avoid the acquisition altogether. Likewise, instead of throwing a big 25-kid birthday party every year, limit large parties to every second, third, or fourth year to minimize the inflow of new possessions. If you simply must invite 25 kids to your ten-year-old son's skating party, consider helping him select a charity and request that donations be made in lieu of gifts. This works best if you have family around who will be giving your son gifts anyway or if you can tie the decision in with a much-wanted gift-like a new bicycle-that you were planning to give anyway.

Timing is everything. Capitalize on your child's excitement by timing his or her possession purges to coincide with gift-giving events like birthdays, holidays or back-to-school shopping sprees when you are already planning to buy new things. Explain that he or she needs to make space, in the desk for new supplies, in the bureau for new clothes, or on the shelves for new games and toys. You were going to buy anyway, so this is not technically a bribe!

If all else fails-if you learn through these processes that your child is just a bona fide hoarder-you may need to resort to covert operations. Amp up your powers of observation; notice what he or she touches and does not touch on a regular basis. Pack rarely-used items into boxes under cover of darkness and move them into storage. If-after six months or a year-your child never goes looking for the stored items, go ahead and dispose of them with the one caveat that you may never be completely forgiven!

Source: "Convincing Your Kids To Part With Old Junk", MaidPro.com

Home Builder Confidence Improves as Mortgage Rates Stay Low

Home Builder Confidence Improves as Mortgage Rates Stay Low

by Ed Ferrara

As mortgage rates have continued to stay low, builders' confidence has improved for the fourth consecutive month in August according to the National Association of Home Builders/Wells Fargo Housing Market Index. Increasing 2 points to 37, the index is at its highest level since February, 2007. This report is a survey of builders' outlook for single family homes sales and expectations of sales for the next six months.

In addition to this index, Building Permits increased 6.8% as reported by the U.S. Census Bureau and Department of Housing and Urban Development and was at the highest level since August, 2008. Numbers going forward are looking positive for builders with the real estate market showing signs of recovery and affordability even though it still remains fragile.

This past week, FreeRateUpdate.com's survey of wholesale and direct lenders shows that mortgage rates remained steady with 30 year fixed mortgage rates at 3.375%, 15 year fixed mortgage rates at 2.750% and 5/1 adjustable mortgage rates at 2.125%, all available with 0.7 to 1% origination fee. To obtain these low mortgage rates, borrowers must have good credit and the qualifications needed for approval. Home purchase loans and regular mortgage refinances require documentation and verification of employment, income and assets.

On the other hand, HARP (Home Affordable Refinance Program) offers underwater borrowers the chance to refinance without the need of an appraisal or other documents. Eligibility requires that the borrower have a mortgage that was sold to Fannie Mae or Freddie Mac prior to June 1, 2009. HARP mortgages have been on the increase since the expansion of the program that includes all underwater mortgages with the removal of loan to value caps. While some borrowers may find obtaining HARP difficult, this should not be the case. All borrowers can inquire online about HARP where there are numerous lenders available to accommodate all types of circumstances.

With FHA still offering low down payments and easier credit qualifying, there remains continued concern with their exposure to risk and rates of foreclosures. Nevertheless, FHA loans remain a major player in the mortgage industry and continues to have low mortgage rates and favorable refinancing options. Current FHA 30 year fixed mortgage rates are at 3.125%, FHA 15 year fixed mortgage rates are at 2.625% and FHA 5/1 adjustable mortgage rates are at 2.625%. To assist the insurance fund, FHA does have high closing costs (APR) due to the upfront mortgage insurance premium and other FHA fees, but borrowers will find that these can often be added to the loan amount.

For home purchase loans, seller concessions will sometimes cover the bulk of these fees. Despite any negativity, FHA's latest offer is the FHA streamline refinance with no cash out for borrowers who have loans that were endorsed prior to June 1, 2009. Without an appraisal or other documentation, eligible borrowers can refinance quickly to the low FHA mortgage rates being offered at this time. Volume for the FHA streamline has been high enough for lenders to turn away any borrower who is not already a customer. With a larger number of FHA approved lenders available, online inquiries have become a popular way to obtain this FHA refinance.

Jumbo 30 year fixed mortgage rates increased by .125% this past week and are now at 4.250%. Jumbo 15 year fixed mortgage rates are at 3.125% and 5/1 adjustable mortgage rates are at 2.250%. Excellent credit is required in order to receive these low jumbo mortgage rates with 0.7 to 1% origination fee. These loans require full documentation for employment and income for both outside employment or self employed.

Asset statements must show enough available funds for the higher down payment and additional month of reserves that are required. Jumbo mortgages are becoming more competitive as more lenders are entering this market. While these loans are considered risky, they are also profitable for lenders who usually keep them within their portfolio. With more lender product offerings for jumbo mortgages, borrowers may find there is more flexibility when considering an approval. Obtaining lender requirements and mortgage rates in advance will help borrowers find the best deal when shopping for a jumbo loan.

Mortgage rates were at risk of rising most of last week as MBS prices fell after better than expected economic data was reported. MBS prices affect mortgage rates which move in the opposite direction. The preliminary August index for Consumer Sentiment rose to 73.6 which was the highest level since May according to the Thomson Reuters/University of Michigan report. U.S. leading economic indicators rose 0.4% in July according to the Conference Board.

The Consumer Price Index was flat for July while Core CPI, minus food and energy, was up 0.1%. Industrial Production for July increased 0.6% and the August Empire state dropped to -5.9 (the first time below zero since October, 2011). The big news was Retail Sales for July which rose 0.8% which was much better than expected. July PPI rose 0.3% and Core PPI increased 0.4%. Adding to this, data from Europe was better than expected with increased GDP data from Germany and France which sent investors back to risky assets and the stock market higher.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.

Source: Realty Times - Home Builder Confidence Improves as Mortgage Rates Stay Low

Preparing your home for Fall

Preparing your home for Fall
5 Tips: Getting your house ready for the new season.

By Gerri Willis, CNN/Money contributing columnist

NEW YORK (CNN/Money) - It's the unofficial end of summer. While you may be caught up with other things, like getting the kids ready for school, it's important not to neglect your home.


Early fall is the time of year to prepare your house for the cooler weather just around the corner. Most people know to clean their gutters and seal openings around windows that can leak heat. But there are other less obvious measures you'll need to take to keep your home in tip-top shape inside and out.

Here are today's 5 tips on getting your home ready for Fall:

1. Crank the heat.

"You forget your heating system when it's summer. But believe me, you'll notice if it doesn't work right in the winter," says Ed Del Grande, host of Do It Yourself Network's "Ed The Plumber."

It's extremely important to make sure your heating system is working correctly and safely. Ed recommends having a heating and cooling specialist look over your system once a year at this time.

If you have a forced hot air system, your heating and cooling systems use the same filters. If they're dirty, filthy air will be circulating around your home. Filter changing is something homeowners can and should do themselves.

Have the specialist inspecting your unit show you how it's done, then you'll be able to do it regularly whenever you need to. Ed says filters usually need changing three to four times over the course of the winter.

If you have gas heat, your serviceman should check the pilot light, burner and chimney flue -- that's where carbon monoxide byproduct exits your home. If it's not venting properly, you could have carbon monoxide building up in your house.

Forced hot water heating systems (sometimes called baseboard heat) should also be checked and serviced. Typically this involves putting an anti-freeze solution into the heating pipes so they don't freeze while you're away or not using your heat. Ed says the service costs about $100, but it protects a system that's worth much, much more.

2. Prevent trouble down below.

There may also be things that need attending to beneath your property. Ed recommends having underground sprinkler systems flushed before the cold sets in.

The process involves blowing air into pipes to displace leftover water. This is important because water lines are typically only 6 to 8 inches below ground -- and prone to freezing. If they freeze and then burst, you could have a costly repair situation on your hands.

Homeowners with septic tanks should also think about pumping them now -- before the ground freezes and snow buries your yard. Septic tanks should be checked once every year and cleaned no less than every three years.

3. Go topside.

Roofs usually have a 20 to 30 year life, but that doesn't mean they don't need attention. You or a roofer should get up there once a year to check its condition.

Look for missing or rotting shingles. While up there, check the gutters to make sure they're free of leaves and debris. It's also a good time to repair any broken gutters and downspouts.

Don't forget to trim dead or overgrown tree limbs hanging over your house. All it takes is one storm to bring weak branches down and damage your roof.

4. The water fight.

Moisture is public enemy number one. Enemy number two is poor ventilation. Put them together, and you have an environment that encourages mold growth.

Molds can seriously damage your home (your biggest investment) and some can even make you sick. Ed recommends good exhaust fans in bathrooms where moisture can easily collect after showers.

Damp basements and crawl spaces can be mold hotbeds. Watch for leaks from your hot water heater, plumbing system and seeping rain water.

Serious floods will require pumping to remove the water, but if what you've got is a damp basement, Ed recommends using a dehumidifier to help remedy the problem.

One more tip: know where your plumbing valves are. That way, if you spring a leak somewhere in your home, you'll know how to shut the water off at the source and prevent further flooding.

5. Beware the dangers in your garage.

An attached garage gives you protected passage to your car. But you may actually need to protect yourself from what's inside.

When warm air leaks out of your home, air from the garage gets sucked in. That means carbon monoxide and other harmful gases can enter your home.

Not only should you think twice about warming up the car inside on cold days, you should also rethink what you store there. Fumes given off by chemicals, pesticides and fertilizer can be harmful. Think about storing these substances outside in waterproof, plastic containers.


Source: "Preparing your home for Fall", CNNMoney  

 

Confident Home Buying: Is This The House For Me?

Confident Home Buying: Is This The House For Me?
by Phoebe Chongchua

Buying a house is likely the single largest investment you'll make and, like a good marriage, if it's the right one, it may last a lifetime. But how can you be confident in your home buying, especially if you're a first-time buyer? With so many homes to choose from, how do you know if this house is the one?

Sounds like a dating question. And, coincidentally, using some of the same techniques used to determine if you're marrying the right person may also help you decide which home is the best for your needs. These days more buyers are coupling up–-buying homes together (even if they're not in a relationship) to offset the cost and be able to afford more.

You've heard of buyers' remorse and you know you sure don't want it. Sometimes fearing buyers' remorse can actually lead to buyers' inactivity. They become afraid and so they do nothing. They shop, they see, they even put offers in but in the end, they don't close. If you're a serious buyer, you don't want to get stuck in a cycle of looking and never owning.

So, how can you be confident that the home you're buying will meet your needs? Start with some basic guidelines. Make a list of your must-haves, needs, and wants. These are truly three different categories. Yes, some things you list may overlap but after your list is started, you'll begin to see what really matters to you. Sometimes buyers will be shopping for a home with a pool, but when they finally make a list they realize that money is very tight and the added cost of heating a pool will be too much of a drain. So they revise their home-buying desires and start house-hunting all over again. It would've been far more effective to have considered this from the start.

Next, study the home or apartment that you're currently living in. What are the positive aspects of it? Are there things about the place you live in now that you absolutely can't stand? Taking stock of what is working and what isn't in your current home provides a good blueprint for the things you should consider when searching for your next home. Remember to be honest. Sometimes we tend to forget the bad things about a home due to its sentimental value. If you look at your current home with a critical eye, you'll know which areas caused a big headache and then you can be sure you don't buy another with the same problem.

For instance, maybe the home needs a lot of fixing up and you and your spouse barely survived the remodel without tearing each other apart. You might then want to search for homes in much better condition to limit the fixing up. Our minds have a wonderful way of forgetting the bad, once the bad is over. But, trust me, you'll remember once you're back in the same scenario again.

Do your homework and get everyone's feedback. Unless you're buying a home alone, you should spend time meeting with those who will be living in the home to discuss what's important. Sounds obvious...yes, but guess what? A lot of times Buyer One and Buyer Two don't even talk about what's really important to each other until they start searching for homes. Then they realize how truly different their views and expectations are and see the necessity to compromise a little. Time is better spent reviewing and discussing first. That way, an agent can make sure the properties being shown are in line with everyone's desires.

Finally, plan ahead. Especially if you're moving a family or you're moving in with someone else. Use a synchronized calendar, like Google, to help map out all the meetings and showings. There will be lots of important meetings to attend and if you can't get the necessary buyers there, the process will be stalled. Without the necessary buyers present, you can't be confident the home will satisfy. Plan. Schedule. Commit. This will assure that the home-buying process will be a success.

Source: Realty Times - Confident Home Buying: Is This The House For Me?