How to Make Better Financial Decisions about Credit and Mortgages

The more you understand about your credit history, the better mortgage rate you will get. It is important that you understand your credit as well as your credit scores. There is more than one type of mortgage. Your fico score will dictate what programs you will be eligible for. In most cases, the higher your fico score is, the better interest rate you will get.

Different Types of Mortgage Programs For First Time Home Buyers.

* Locking in the best interest rate for a mortgage
* First Time Home Loan Buyer Programs
* Down Payment Assistance or DPA
* HomePath Mortgage Program
* FHA loans, great for first time home buyers and buyers with low credit scores

Most Consumers Want to Know the Following about Credit Scores

* How to improve your fico score
* What factors impact your credit score
* How to recover from bankruptcy or foreclosure
* Credit Restoration

For more information about credit scores talk to your mortgage professional.

E Loans Free Credit Score Offer - Is it useful

E Loans free credit score offer will give you a CreditXpert credit score. It is not a score from the three credit bureaus, those being experion, equifax and transunion. The credit score that you get from ELoan will not be useful to you for getting a mortgage at any other mortgage company. The only place the E Loan Free Credit Report will work will be at ELoan. (What is the E Loan credit report offer)

How do I raise my credit score?

Wal Mart to offer a pre paid debit card

If you have bounced checks, bad credit or just can't get credit, Wal Mart has good news for you. Wal Mart will be rolling out a pre paid debit card. You can use it just like a credit card, the only difference is that you will need to have cash in your account for the charges to go through. The card will have fees so you will need to pay attention. There is a $4.64 reload fee every time you put money into your account. If you have direct deposit this is waived. If you use an ATM machine you will be charged $1.95 and if you want to cash a check it will run you $3. Requesting a paper statement will cost you $2 and the activation fee is $8.94.

If you don't have any credit, this is a great way to start establishing some. Just make sure in your agreement that they will report to all three credit bureaus which are experian, transunion and equifax.

Get a Debit Card

Does pulling your credit report hurt your credit score?

I have been in the mortgage business for nearly 7 years. One of the biggest misconceptions that I run into is that pulling your credit report numerous times will hurt a credit score. I find that sometimes new borrowers are reluctant to have their scores pulled because of this belief. They believe that their scores will drop considerably if everyone is pulling it. The reality is that you can pull your mortgage credit report unlimited times in a 14 day period from the first pull and it will count as one pull.

It is a known fact that borrowers will talk to a couple of different lenders prior to selecting a company to go with. It is just part of the research and fact finding process. It is a ploy by some lenders to tell their clients not to have other brokers pull their report. To a broker that has already pulled credit, this improves their chance of securing the loan instead of another broker. They scare the potential borrower into believing that their credit will be ruined if they have other people obtain reports, thus potentially risking the homebuyer’s ability to obtain a loan that serves the consumer versus one that serves the mortgage originator.

The problem with this is that a borrower may miss out on better loan terms and lower closing costs. If a lender tells you not to have anyone else pull your credit for these reasons, you may want to talk to someone else. They are not being honest with you. The end result is that it could cost you thousands of dollars over the term of your loan. An honest lender will give you this information. They are confident in their services and don’t have to rely of sleezy scare tactics to earn your business.

If you want to know what your score is, you can pull it yourself. If you pull it on your own it does not count as a pull. Be sure that you pull a mortgage credit report. This will be more accurate for assessing your ability to get a loan and the types of rates that you will be able to get. Most of the free credit reports online are consumer credit reports. They are similar but are not accepted as a valid report in the mortgage industry. You can go to Getprequalified.com to order a free credit report. You will also find other useful services to get started on the home buying process.

Dave Mason
Mortgage Broker

Hey don't pull my credit

I have been in the mortgage business for nearly 7 years. One of the biggest misconceptions that I run into is that pulling your credit report numerous times will hurt a credit score. I find that sometimes new borrowers are reluctant to have their scores pulled because of this belief. They believe that their scores will drop considerably if everyone is pulling it. The reality is that you can pull your mortgage credit report unlimited times in a 14 day period from the first pull and it will count as one pull.

It is a known fact that borrowers will talk to a couple of different lenders prior to selecting a company to go with. It is just part of the research and fact finding process. It is a ploy by some lenders to tell their clients not to have other brokers pull their report. To a broker that has already pulled credit, this improves their chance of securing the loan instead of another broker. They scare the potential borrower into believing that their credit will be ruined if they have other people obtain reports, thus potentially risking the homebuyer’s ability to obtain a loan that serves the consumer versus one that serves the mortgage originator.

The problem with this is that a borrower may miss out on better loan terms and lower closing costs. If a lender tells you not to have anyone else pull your credit for these reasons, you may want to talk to someone else. They are not being honest with you. The end result is that it could cost you thousands of dollars over the term of your loan. An honest lender will give you this information. They are confident in their services and don’t have to rely of sleezy scare tactics to earn your business.

If you want to know what your score is, you can pull it yourself. If you pull it on your own it does not count as a pull. Be sure that you pull a mortgage credit report. This will be more accurate for assessing your ability to get a loan and the types of rates that you will be able to get. Most of the free credit reports online are consumer credit reports. They are similar but are not accepted as a valid report in the mortgage industry. You can go to GetPrequalified.com to order a free credit report. You will also find other useful services to get started on the home buying process.

Dave Mason
Mortgage Broker

Universal Default Rate on Credit Cards, Suze Orman

I got a good tip from watching Suze Orman the other night. Consumers don’t realize that when you default on one debt it can affect other credit use. There are a lot of people that are losing their homes due to foreclosure. They feel that the mortgage is hopeless yet they want to keep their credit cards for emergency use. While this is understandable, consumers fail to realize what the impact to their credit is across the board. Your creditors are checking your credit all the time. If they see that you are having trouble on one of your credit accounts, they have the right to raise your credit card interest rate to the universal default rate. It is in your contract. If you don’t believe me, then believe Suze Orman. I’ve seen her tout this fact a few times on her show. Your rates can go as high as 29% just because you are late on your mortgage. The reality is that you need to keep up on everything. If you are having financial difficulty you need to be aware that your credit cards may not be your safety net.

For additional credit articles go to GetPrequalified.com

Debt Negotiation as an alternative to Bankruptcy

I think this is going to be the year that America is going to have to face its unhealthy debt problem head on. There has been a big party going on in the real estate industry for a few years and now it is time to deal with the hangover. If you have turned on the TV we are beginning to be bombarded by commericals for debt reduction, debt consolidation, credit counseling, CCCS and debt negotiation services. I do not remember seeing that many of these ads when the real estate market was doing well a few years ago. Debt gurus such as Suze Orman, Dave Ramsey, Larry Winget and Kevin Trudeau have been flooding the airwaves pitching debt salvation with their programs and products.

The fact is that millions of people are just getting to far behind on their bills to even try to bail themselves out. They would love to do a debt consolidation or debt restructure program but they just cannot afford it. Many people will look at the bankruptcy option. Getting a chapter 7 or chapter 13 bankruptcy is not as easy as it used to be. I think if you are considering a bankruptcy you may want to consider the debt negotiation option. Debt Settlement and Debt Negotiation will allow you to settle your debt without the long-term negative impact on your credit like a bankruptcy would have. You can also be out of debt in 36 months or less. Usually you can settle your debts for 40-60 cents on the dollar. In a chapter 13 you will still be making payments. The majority of credit card companies such as Discover, Master Card, Visa, American Express, MBNA, Citibank, Washington Mutual, Providian, HSBC, Chase, Bank of America, Wells Fargo and others will negotiate with you. If you file bankruptcy, they stand the chance of collecting nothing. It is very expensive for them to go to court and try to collect from you. Getting judgements is the easy part, collecting on them is the difficult part.

If you are considering bankruptcy, it is worth your time to investigate the debt negotiation option.

Credit Report Shame

When dealing with your credit report and fico score, there is one important thing to keep in mind. The system is broken and there is no plan to fix it. Why wont they fix it? The credit report companies are tied into the financial institutions. The financial institution make more money off of lower fico score borrowers than higher. This doesn't mean that you have to sit back and take it. You can go to www.getprequalified.com for more information on how to fix your credit report. Over 90% of credit reports have at least one error on them.

It is also smart to take a look at your credit report a couple of times a year. When dealing with your credit card company or financial institution, get everything in writing. If you have errors on your credit report in the future, it will be much harder to remove them from your report versus have documentation from them for what they promised to do. They don't keep track of what they promise you. You must be vigilant for your own credit affairs. To get a free credit report go to www.getprequalified.com.

www.optoutprescreen.com

You can improve your credit score by as much as 20 points just by opting out of receiving credit card offers. Visit www.optoutprescreen.com.

Donna Gamaly
Mortgage Broker