Credit Counseling and How It Affects Your CreditBy Linda Ferrari   I have always been a strong proponent of credit card use for achieving and maintaining strong credit scores. However, it is mission-critical that you always live within and preferably below your means. But, the lure of consumerism with ease has caused so many Americans to exceedingly spend more than they make, causing them to fall victim to long-term indebtedness. The statistics on consumer debt paint a grim picture. Per The Federal Reserve as of August, 2008, Americans held $968 billion dollars in consumer credit card debt. This number does not include loans secured by real estate, such as a mortgage. Another alarming statistic is that in the first quarter of 2008, consumer borrowing was at $34 billion, the most since t... 03/07/2009

    As goes housing, so goes the economy. To combat housing's recent decline and the impact on consumers and Wall Street alike, the Obama Administration recently released the details of the Homeowner Affordability and Stability Plan (HASP). Whether you own a home or not, the impact of the plan will affect you. Fortunes have been made and lost on the strength of the housing market and as housing struggles today, so do many Americans. Millions of homeowners have seen the value of their home decline and as a result, whether someone has been looking to refinance into lower a interest rate, sell their home, or purchase their first home, they have felt the pain of the problem. Combined with other stimulus packages that have been released, like the American Recovery and Reinvestment Act of 200... 03/07/2009

  Title insurance is a policy that is usually issued by a title company to protect the lender against something that might have happened in the past, rather than something that might occur in the future. In essence, an extensive search of public records is conducted by the title company to validate who has held title to the property in the past. The lender wants to know if there are any liens, judgments or easements on the property that they should be aware of.But title insurance also guards against hidden risks or unknown factors that might cause an encumbrance at some point in the future, such as unknown heirs, forged deeds or wills, misinterpreted wills, false impersonation of the true owner of the property, deeds signed over by persons of unsound mind, or defects in the recording o... 03/06/2009

Making Home Affordable Homeowners were lent a hand this week by the Obama Administration's newest effort to help families remain in their homes. The 'Making Home Affordable' program was created to help as many as 9 million homeowners who want to stay in their homes, but are struggling with their finances. As with most legislation of this type, some of the details are still pending and subject to further clarification - but I would invite you to call me so we can begin to discuss how they might benefit you. There are two important elements of this program: One part of the program will be available to 4 to 5 million homeowners who have a solid payment history on an existing home loan owned by Fannie Mae or Freddie Mac. Many of these homeowners have been unable to refi and take advantage ... 03/06/2009

Points are up-front fees paid by the borrower to obtain a better interest rate on a loan. One point equals one percent of the loan amount. And while a lower interest rate may result in a lower monthly payment, it is important to consider how long you intend to be in the loan and to compare current interest rates to historical market trends. This will help you to determine whether paying points is a worthwhile investment. Let's look at a sample scenario. If you take out a $300,000 mortgage and decide to pay one point in order to lower your interest rate, this would translate into an up-front cost of $3,000. To keep things simple, we'll assume that paying this one point will save you $50 a month. This means it will take you 60 months to recoup the cost of that point. If you decide to ref... 03/05/2009

Today I am waiting.  We have all waited.  Despite how busy our lives are and how much we need to accomplish, we allow this to happen.  My question is why has it become acceptable? Why am I waiting?  It's because someone is coming to my house between 11am and 1pm.  They'll be here 30-45 minutes.  In the meantime I'm waiting (and blogging). Believe it or not, I have a lot of work to get done today.  I have a lot of phone calls to make, yet dare not make them and need to cutoff a customer when this person arrives.  I just think that would be inconsiderate to them.  But isn't this waiting inconsiderate to me? Of course there is good reason I choose to allow myself to wait.  Today is the culmination of a promise I made to my wife and to myself.  I'm about to disclose a dirty little secret...... 03/03/2009

Closing costs are expenses that cover fees associated with the transfer of property ownership, fees paid to state and local governments, and the costs of obtaining a mortgage loan. Some of these fees are negotiable, and could be paid by either the buyer or the seller. Some costs are one-time fees (non-recurring closing costs, such as title search, termite inspection, appraisal, etc.); while other fees such as homeowner's insurance or property taxes are things you will expect to continue to pay on a regular basis as a homeowner.As part of the loan selection process, your mortgage consultant should be giving you some idea of how much money you should have in reserve to cover your end of these costs. The Real Estate Settlement Procedures Act (RESPA) requires the lender to provide you with... 02/27/2009

  When it comes to mortgage loans and interest rates, it's never a good idea to gamble. That's why I typically advise my clients to lock in an interest rate at the earliest opportunity. This is just one step of the standardized system we have put in place to ensure the best possible loan experience for each borrower that we work with.A mortgage loan cannot be closed without a locked-in rate, and there are three main elements to take into consideration: Interest Rate Points or fees Length of the lock Locking in a rate does not obligate the borrower to commit to the loan until the loan is actually closed. The lock is merely a security measure designed to eliminate the risk of market volatility throughout the duration of the purchase or refinance transaction. As long as the loan is approv... 02/26/2009

Warren Buffet says, "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful." While Mr. Buffet was writing about buying stocks, the same can be said for housing today.   Housing issues have permeated the economy both locally and nationally. This week, one index that tracks housing prices, S&P/Case-Shiller Home Price Indices, indicated home values fell the most since 1968, declining 18.5% in December from the year before.   Looked at from a different perspective, this means home prices have fallen to levels not seen in six to twelve years, depending on individual markets. Following the Case-Schiller report was the report from the National Association of Realtors (NAR) recently. The NAR reported that home prices for the month of January ... 02/25/2009

Direct with Clear Job Descriptions When it comes to training and managing a team, you must start out with a clear vision in directing your team to a common goal through job description and training. Creating a job description and training the individual you hire is very important to the end result. You must think through the position and its job description in great detail, even before you start interviewing people for that position. Here are some tips:1. Define exactly what you are looking for, including the personality traits and skill sets you would like to see in that individual.In addition, make sure you have a training schedule in place before you start conducting interviews, and share this information with the candidates. Remember, the clearer the vision of the leader, the more p... 02/25/2009

  Prices have been slashed!!!   Low financing available!!!   Cash rebates up to $8,000!!!   Due to current economic conditions, we are offering huge savings off over-stocked items.  Buy at prices not seen in 5 years with rates among the lowest in history.  Sale includes, but is not limited to the following:   Single-family homes   Condos   Townhouses   Second Homes   Investment Properties   For the best deals nearest you, contact your favorite neighborhood Realtor.    Hurry as these savings will not last forever.   For first-class financing service, call Karl Peidl of Superior Mortgage at 1-800-706-6671 ext 4349. 02/24/2009

  First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income. The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years. Tax Credit Versus Tax Deduction It's important to remember that the $8,000 tax credit is just that... a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a ta... 02/20/2009

"Let us resolve to be masters, not the victims, of our history, controlling our own destiny without giving way to blind suspicions and emotions." - John F. Kennedy   I came across this quote today and had to share it.  We are truly facing difficult times.  Times like these create our greatest leaders.  We can wallow in self-pity and harp on the challenges we face in this market or we can take control and lead the way out.  The choice is ours.  02/20/2009

  It's staggering when you think about the cost of living, especially if you're a renter and not a home owner. If you are currently paying $1,000 a month for rented housing, over the next three years your property management company will effectively have reaped $36,000 of your hard earned cash. In most cases, you know your rent will go up every year, even if you live in an area that has rent control regulations. You're paying the mortgage for the property owner, when you could be building equity in your own real estate investment.The tax deductions available to homeowners vary, but there are solid rules the IRS lines out for us. Real estate taxes, mortgage interest, pre-paid interest, and interest on construction loans are all things to take into consideration as tax benefits.If you or... 02/20/2009

Tax Credit for Home buyers First-time home buyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income. The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.    Additional Housing-Related Provisions   Tax Incentives to Spur Energy Savings and Green Jobs - This provision is designed to help promote energy-efficient investments in homes by extending and e... 02/19/2009

  Natural disasters are a fact of life. Each area of the country has its own challenges, from hurricanes on the Atlantic and Gulf Coasts to tornados in the Plains and earthquakes in California. Regardless of where you live, it's important to have plans in place to ensure that you and your family are prepared should an emergency arise.Begin by researching which types of events could occur in your community: Contact local authorities to learn how community alerts are issued and the evacuation routes you will need to follow. Inquire about emergency plans at work, school, and any other locations that family members frequent on a regular basis. Determine how to care for your pet(s) since most temporary shelters only permit service dogs to enter. Start by visiting the American Red Cross webs... 02/19/2009

Finding a mortgage that's right for you should be easy. But there are often many different programs to choose from, as well as a myriad of ways to structure the loan in terms of the amount, term, payment, rate, closing costs...the list of options may seem endless.However, because there are so many options available, it's important to seek advice from an experienced mortgage professional who has your best interest at heart. The first step in determining which program is right for you is to ask yourself the important questions listed below. These questions can also help you confirm that you've chosen the right mortgage professional as well, because he or she should be asking you the same questions before trying to put any mortgage in place: How long do you anticipate living in your home?... 02/19/2009

FIRST-TIME HOMEBUYER TAX CREDIT  As Modified in the American Recovery and Reinvestment Act Major Modifications Underlined February 2009   FEATURE CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 REVISED CREDIT - EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009 Amount of Credit Lesser of 10 percent of cost of home or $7500 Maximum credit amount increased to $8000 Eligible Property Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. No change All principal residences eligible. Refundable Yes.  Reduces (or can eliminate) income tax liability for the year of purchase.  Any unused amount of tax credit refunded to purchaser. No change Purchasers will continue to re... 02/18/2009

Pre-qualification is the first step in obtaining mortgage financing. A potential borrower answers a few questions to provide the loan consultant with a quick snapshot of the borrower's income, existing debt, accumulated savings and whether or not there is a co-borrower. Signature(s) allow the loan consultant to run a credit report and begin to determine what loans are good candidates for this particular client. However, there are literally thousands of loan programs available. It is important for the loan professional to know the long-term financial objectives of the prospective homeowner.Pre-approval is a written documentation that proves the borrower has full support of a lender. It means the form 1003 Uniform Residential Loan Application has been completed and reviewed by an underwr... 02/16/2009

A good credit score translates into lower interest rates for home-shopping borrowers. In a mortgage lender's eyes, the higher your score is, the less risk you are, and the more likely it is you will pay off your debt. For this reason, borrowers with lower scores usually end up paying higher interest rates on their loans.If this is you, don't panic. There are a number of things you can do to adjust your credit score to receive a favorable review from the underwriter. Here are a few suggestions:Should I pay off all my past due balances and charge-offs? This is usually a good idea, but you only need to worry about the past due balances and charge-offs that have occurred in the last two years. Items more than two years old have little effect on your current credit score. In fact, if you pa... 02/12/2009