Here's A Quick Tip That Can Bump Your Credit Scores Up...

Good Morning,



Your credit is so important - so I wanted to continue to give you some tips on tools you can use to get your scores up.



Did you realize that 30% of your score is made up of the ratio between your available credit vs your actual balances on revolving credit accounts (like credit cards)?



You don't want to charge these accounts over 50% of the available balance, and its even better if you can keep it under 30% of the available balance.



That's it for today!


...Oh, remember you still have until Friday to take advantage of the federal tax credit. ...ask me if you have questions!



Thanks for reading! ...and have a good day!



Brett

This Kind Of Loan Can Save You Money...

Good Morning!



Did you know that we still have piggy back loans to 95% loan to value ratio?



We do!



A piggy back loan is where we do two loans - one at 80%, and a second at 15% simultaneously.



You would put down 5% in this scenario, and we would finance 95%.



The advantage to a piggy back loan over a 1 loan scenario is that you don't have to pay the private mortgage insurance that comes with conventional loans over 80% LTV.



...So, you save money with piggys!



Thanks for reading! ...and have a good day!



Brett

This Simple Step Controls 35% Of Your Credit Score...

Good Morning!



Did you know that 35 percent of your total credit score comes from your payment history?



...It's true. FICO will watch revolving accounts (like credit cards) and installment loans, such as mortgages and student loans. Defaulting on larger installment loans like a mortgage will damage your score more severely than defaulting on a smaller revolving account.



So, here's the message: One of the best ways for you to improve your credit score is by making consistent and timely payments on your open and active accounts.



...Remember, you have only have until the end of April to ink your contract to take advantage of the Federal Tax Credit. ...There's still time!



Thanks for reading! ...and have a good day!



Brett

Here's How You Can Refinance For Free...

Good Morning to ya!



I have people ask me about how a no cost refinance works at least once a week. So, I wanted to take a minute and tell you exactly how a no cost refinance works.



There are two pools of funds you have to address when you refinance...



1) Closing costs.



2) Pre paids. (taxes, interest, and insurance)



A no cost refinance will cover your closing costs. You would still be responsible for the pre paids (although we can roll them into the loan) - because you would pay these costs whether you refinance or not. Now, if your current loan is escrowed you would be reimbursed the balance in your escrow account after closing. So, this would be a wash for you.



Let me give you an example of how a no cost refinance works...



Let's say your current rate is at 5.75%. ...and let's say normal closing costs on your refinance loan would be $4,000.



There are two ways to approach this refinance...



1) You can take the very lowest rate in the market at the time. ...Let's say it's 5.00%. If you elect to go this route - you would either have to pay the closing costs yourself, or we could roll them into the loan. Either way you are paying for the closing costs.



2) You could take a slightly lower rate - say 5.5%, and we (the lender) can pay the $4,000 closing costs for you.



Option 2 is a true no cost refinance. You were able to lower your rate and monthly payment for free. It didn't cost you any money to do it!



If you would like for me to review your current situation for a no costs refinance - I'll do it for free! ...just give me a call, or shoot me an email.



Thanks for reading! ...and have a good day!



Brett

This Mistake Could Kill Your Loan...

Good Morning!



Avoid potential loan killers...



If you are applying for a loan and you have NSF charges in your bank statement - this is a potential deal killer for the underwriter.


If you have insufficient funds charges in your bank statement it signals to the underwriter that you are having a hard time managing your money.



The solution is to ask your lender (hopefully me!) to replace your statements with a verification of deposit.


Thanks for reading! ...and have a good day!



Brett

Tax Credit Is Being Extended For Military...

Good Morning!


The federal government is extending the tax credit for certain military personnel...



Special Rules for Members of the Military, the Foreign Service
and the Intelligence Community

Congress has acknowledged the unique circumstances affecting members of the military, the foreign service and the intelligence community by making the following exceptions that apply to both the $8,000 tax credit for first-time home buyers and the $6,500 tax credit for repeat home buyers.

Exemption From Tax Credit Recapture Rules

Typically, homes that are sold or that cease to be used as a principal residence within three years of the initial purchase are subject to recapture of the tax credit.
However, qualified service members who sell or move from a tax credit home within three years of the initial purchase due to official extended duty are exempt from the recapture rule.
Extension of Tax Credit Deadlines

The home buyer tax credit is available for qualified purchases with a binding sales contract in place on or before April 30, 2010 and closed by June 30, 2010.
However, for qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011.
A person who is forced to return to the U.S. for medical reasons before completing an assignment of at least 90 days of qualified official extended duty outside of the United States may qualify for the one-year extension.
Definitions

"Qualified service member" means a member of the uniformed services of the U.S military, a member of the Foreign Service of the U.S., or an employee of the intelligence community.
"Official extended duty" means any period of extended duty outside of the United States for at least 90 days during the period beginning after December 31, 2008 and ending before May 1, 2010.
Thanks for reading! ...and have a good day!



Brett

Here's A Short Little Movie That Will Put You In A Good Mood...

Good Morning!



...Hope you're doing well.



Simple Truths sent me this little movie this morning. ...It's a good Friday movie (short and funny).



Enjoy, and have a good weekend!



http://www.thelaughtermovie.com/



Thanks for reading!


Brett

When Disputing Accounts On Your Credit Can Hurt You...

Good morning!



I hope you had a good weekend.



I wanted to point out one downside of disputing accounts on your credit report. ...These would be accounts that you have disputed but there's really been no resolution. In other words the account is still on your report - and now has a "customer disputed" message on it.



If you are trying to get a conforming loan (Fannie Mae, Freddie Mac) you will find the automated underwriting system doesn't like accounts with "disputed" on them.



It won't include these accounts in the automated underwriting analysis. It will tell you to remove the disputed language from these accounts so it can finish its job of underwriting your file.



I can tell you removing the disputed language from these accounts can end up being quite a chore. ...and, I've had it derail some loans because we couldn't remove it.



...just wanted you to be aware of this.



I hope you have a good day today. Thanks for reading!


Brett

When It's Smart To Roll Your Closing Costs Into Your Loan...

Good morning!



I get questions about closing costs a lot...



...When is it best to roll closing costs into the loan (on a refi)?



...Can the mortgage company pay the closing costs?



The basic answer to these questions are:



If you are planning on staying in the home over 4 years - it's not a bad idea to roll closing costs into the loan.



If you are planning on selling or refinancing your home within the next 3 years - it's not a bad idea to let the mortgage company pay your closing costs.


I hope you have a good day today. Thanks for reading!


Brett

Know Your Mortgage Scores...

Good Morning!

You might know what your credit scores are - but do you know what your mortgage credit scores are?

The scores you get from www.freecreditreport.com, and other services like it will only tell you what your consumer credit scores are. ...This isn't enough.

95% of the time your mortgage credit scores will be different, and sometimes significantly different.

...I see it every day.

You don't want to go put earnest money down on a house - thinking you have good credit if you haven't seen your mortgage credit scores.

If you want to know your mortgage scores - contact me at the office and we can get an updated applciation on you.

I hope you have a good day today. Thanks for reading!


Brett

Here's How You Can Add A Pool To Your Purchase...

Good Morning!



I got an inquiry from one of my clients yesterday asking me if we could do an escrow hold back for a pool on a new house he's buying.



The answer is - Yes! ...We can do an escrow hold back for a pool. (New builds only)



An escrow hold back means we can add the cost of a pool to the loan even though the builder doesn't have the pool as part of the house price.



It occurred to me that many of you may not be aware of this. A lot of lenders won't do it. ...but I do!



...just wanted you to know.



Let me know if I can help you on your loan.


I hope you have a good day today. Thanks for reading!


Brett