The ART of home purchasing negotiations

The Art of Home Purchase Negotiation
There is much give and take involved in negotiating a property purchase. That's why it's important to have a checklist of what you want to get out of the deal as a buyer. Bear in mind, the home must be appraised and the lender will be looking at the fair market value on a given property. Since property values fluctuate, your Real Estate Agent should do a comparative market analysis so you are aware of what the trends are for the area in which you are shopping. This will give you an idea as to whether the seller's asking price is realistic. You will also want to know how long the property has been on the market, and if any price reductions have occurred during that time.

Make sure your Real Estate Agent is on the same page with you so he/she is able to represent you properly. You also want to know that you are working with an agent that is experienced in representing the buyer. Not all agents have the ability to provide strong representation for both a buyer and a seller. If you have not yet selected a Real Estate Agent to represent you, my team and I can provide you with contacts that have a proven track record of success with our clientele.

Remember a good deal is mutually beneficial.

The seller will also have a wish list of what they want out of the negotiation. Listen attentively to determine what their hot buttons are. You can use this information to leverage what you want out of the deal at some point along the way.

Find out if the seller has a deadline. Perhaps they have already purchased their new home, or have to relocate because of a commitment to a new employer. Find out what the seller's current mortgage balance is and use this to your advantage.

On the other hand, if the seller wants to move because they can't manage upkeep on the home, or don't want to invest in repairs, these problems will be passed on to you. If you are prepared to go into a deal that involves a fixer-upper, there is an FHA financing program designed to provide funds for both purchase and repair. My team and I can provide you with more information on FHA loan programs and secondary financing.

You would also want to know if the seller is planning this move because there are problems in the neighborhood. Take a walking tour of the area and ask the residents what the neighborhood is like. You can also ask the local police department about the crime rate, or check the local newspaper for crime listings. Don't be afraid to ask questions.

When the seller is intent on getting their way on a certain point, make sure you are getting something in return. Typically the built-in amenities such as the dishwasher and garbage disposal will stay with the home. You can negotiate other items in exchange for something that ranks high on the seller's wish list. Be prepared to split the difference so everyone involved is satisfied with the negotiation. A win-win situation for both the buyer and the seller is critical to a smooth close.

Keep it simple and be direct, but above all, know that my team and I are here to assist you.

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.
The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
About the Author
Steve Hoogenakker
ATM Home Loan - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com www.loantoolbox.com

Credit Tips that will score lower interest rates

Credit Tips That Will Score Lower Interest Rates
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 pay off delinquent items over two years old, it can actually bring your credit score down - something you don't want to do. Bringing that score up means you'll get a better interest rate on your loan.


Should I close existing credit card accounts that I don't use?

No. Part of your credit score is based upon credit history. If you have old credit cards that you don't use very much, you still have the benefit of the credit history they represent.

Rather than trying to pay off all your credit cards, you can move part of the debt from one card to another to even out the distribution of debt. Try to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home. Also, if your credit provider will increase your line of credit, the ratio of debt to available credit is automatically reduced.

When married couples have separate credit card accounts, the debt can be transferred from one spouse to another to clear up credit issues for the other spouse. That spouse with clean credit can be designated as the sole borrower on the loan, but ownership of the home can still go in both names.

What about errors on my credit report?

If you have items that are showing up on your credit report that you know you have already paid, request that these items be removed by the credit bureau. They are obligated to rectify this within 30 days.

If there are items on your credit report that are less than two years old, send in your payment if possible and mark the back of the check with the following notation: "Accepting this check is evidence that the transaction is complete and this charge will be deleted from my credit record." If necessary, the cancelled check will be proof that this should be promptly removed from your credit report if it interferes with the closing of your loan.
Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.
The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
About the Author
Steve Hoogenakker
ATM Home Loan - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com www.loantoolbox.com

What Lenders Look for in Home Loan Applications

What Lenders Look for in Home Loan Applications
Once your loan application is filled out and sent to the lender for review, the first thing they will look for is your ability to payback the loan you are requesting. My team and I have a streamlined loan process to help you get your ducks in a row prior to this review. A grand slam loan package is in perfect order and answers all the important questions up front. We know what the lenders are looking for, based on long-term relationships with them and extensive knowledge of guidelines for a multitude of loan programs that are available today.

What is the lender looking for when they review the loan application?

The lender wants to know about your personal financial picture, including savings and credit history and your employment stability. The co-borrower's history is also taken into consideration. The lender also considers the loan amount and appraised value of the home you are looking to purchase. Not every applicant is approved the first time through the process. If the underwriter has any questions or concerns, he or she will require certain conditions be met before they approve the loan. Pre-approval prior to house hunting lets you know exactly how much you are qualified to borrow in advance.

What can I do on my end to make it easier?

Before taking out a home loan it helps to establish a consistent record of paying your bills on time. If you have utility bills that are overdue, bring these up to date. Make sure you are paying credit card installments in a consistent and timely manner.

We can help you evaluate your debt-to-income ratio to determine what mortgage payment will be comfortable and affordable for you on a monthly basis. Aim for having enough savings to cover your down payment, closing costs if necessary, and two month's expenses in case of emergency. We'll help you find the loan program that works for you.

If I just started a new job six months ago, can I still apply for a loan?

A stable employment history is important, but the lender does take human factors into consideration. If you've recently completed college or vocational training, or were released from the military, you have good cause to have a lack of consistent work history. If your profession is seasonal, and gaps in employment are normal in your field, there are loan programs that can work with your situation. If you are a freelancer or do contract work, the lender will look for consistency in income over the last two years.

Consistency is the key word in the lender's mind. But know that lenders have developed many different loan structures to meet the needs of the general public. When your grandparents bought their first home, they probably put 50% down and made a lump sum payment when the note was due. Times have changed, and so have loan programs. My team and I stay on top of current mortgage trends. We monitor rates daily and have a support network of Realtors®, CPAs, Financial Planners and Credit Repair Consultants to lend you additional assistance.
About the Author
Steve Hoogenakker
ATM Home Loan - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com www.loantoolbox.com

Publisher’s Directions: This article may not be freely distributed without the written consent of Steve Hoogenakker or LoanToolbox.
The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages.

Understanding the Home Appraisal Process

Understanding the Home Appraisal Process
Consumers are often baffled by the home appraisal process. They may feel their home is worth a certain dollar amount, and therefore, the appraised value doesn't make sense to them. It is important to know that appraisal guidelines are dictated by the lenders. In many states, the lenders must disclose the purpose of the appraisal, as each situation carries its own set of rules.

In essence, lender guidelines force appraisers to put a fair market value on a home based upon comparable sales in the area where the home is located, as the home must be bracketed according to size and value. For example, there is no set amount associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, and the local marketplace supports the value of a pool at $15,000, that item will be bracketed as [$15,000] on the appraisal.

Upgrades can usually be expressed at full value in newer homes since they required investing additional money onto the cost of building the home. On the other hand, the amount invested in upgrading or remodeling an older home is rarely reflected in full in the final appraisal. The reason is the home had value in its original condition, and again, the value of the upgrades must be supported by comparable examples within the same marketplace.

These comparisons must be drawn from current market activity within the last six months. Some lenders may want to look at both closed and pending sales to see if there is any room for negotiation. This is a safeguard to prevent appraisers from over-valuing the home in question. It is further stated in the guidelines that appraisers can only place a value on homes that have closed escrow. However, when property values rapidly increase within a marketplace, appraisers are generally permitted to make concessions and put more weight on the evidence provided by comparisons to pending sales and listings. This allows for a "real time" appraisal.

Although there is no formal standard to speak of, most lenders give the appraiser a 5% margin of error. If the file is reviewed and the appraiser is off by 8%, there is a good chance the value will be cut by the full 8%. It is in the best interest of both the appraiser and the homeowner not to push the value up higher than the market will support, otherwise the property evaluation may be exposed to a strict appraisal review.

As a loan executive, I make it a point to follow lender guidelines at all times, and work within the systems they provide. This promotes a good relationship with the lender, and smooth closure for my borrowers. As always, you are welcome to contact me if you have any questions.
Call me directly for a free consultation.





Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.

Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
More Articles available at:
Steve Hoogenakker
ATM Mortgage - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com
LoanToolbox www.loantoolbox.com

Practical Tips for healthy finances. Put a disaster plan into place

Do You Have a Disaster Plan In Place?

After Hurricane Katrina struck, it was quite difficult for individuals to find their families and reassure them that they were okay. Regardless of where you live, emergency situations could arise at any time. It's important to have a disaster plan in place.

Because local phone lines may be jammed, select an out-of-town relative or friend to be your point of contact. Be sure that each family member has this person's name, phone number, and either a prepaid phone card or appropriate change in their wallet or backpack at all times. Also, select two potential meeting places where your family could gather. One should be in the vicinity of your home, for emergencies such as a fire. The other should be somewhere other than your neighborhood, in the event that it is no longer accessible. If you would like to obtain additional information about disaster planning, visit www.redcross.org.

Remodeling? Stay On Budget

One of the most common complaints about remodeling is that it always ends up costing much more than originally estimated. How can you avoid this fate? Set realistic expectations. Remodeling expert, Dan Fritschen, recommends taking the project estimate you receive from your contractor and mentally adding 20% to the bottom line. This should cover the unexpected expenses that will arise. Decide what you want before work has begun. While contractors are happy to accommodate changes midstream, the costs for such modifications add up quickly. Also, purchase some materials in advance, when they are on sale. Items such as faucets, door knobs, and cabinet pulls can be bought before the remodel even begins. Lastly, be sure to consult with your mortgage originator and tax professional prior to beginning construction to ensure that all financing and tax write-offs are in order. For more money-saving suggestions, check out www.remodelormove.com!

Helping In The Aftermath of Hurricane Katrina

Hurricane Katrina devastated the Gulf Coast, and citizens everywhere are trying to find ways to help those in need. If you can afford it, making a financial contribution to an established charity is a good place to start. Beware of telephone and email solicitations. Scam artists are already at work, taking advantage of people's good will. Learn more about charitable giving at www.charitynavigator.org. (Remember, charitable donations are tax deductible!)

If you are interested in contributing more than money, there are several options available to you. Visit www.craigslist.org, and click on New Orleans to see how you can assist with the relief effort. You may also want to visit the Craig's List city closest to you, or check your local paper, to find out what volunteer opportunities and events are taking place in your area. You could also coordinate your own fundraiser for a chosen charity. Recruit neighbors or co-workers and have a bake sale or a car wash. Blood donations are always needed; contact your local Red Cross chapter to schedule an appointment.
Teaching Your College Student Money Management 101

Each year, millions of young Americans go off to college with a shiny credit card and a new sense of freedom. Unfortunately, this isn't always the best combination. According to the L.A. Times, between college loans and credit card debt, the average student owes $18,000 by the time graduation rolls around. Here are some ways to achieve a better outcome:
• Discuss a monthly budget which incorporates living expenses, beyond books and tuition. Establish what you will be paying for and what you expect your child to cover.
• Provide the money each month rather than paying for a whole semester's expenses at the beginning of the term.
• If you give your student a credit card, consider adding them onto your account so that you can monitor the charges. Or if they obtain a student credit card, be sure that the limit is low, perhaps $500.
• Encourage them to buy their books used. Online retailers like Half.com are typically much cheaper than the college bookstore.





This newsletter is published quarterly by Steve Hoogenakker at MrHomeLoan / ATM mortgage. Feel free to share it with your family, friends, and coworkers. If you did not receive this newsletter directly, and would like to be added to my distribution list, please send an email to steve@MrHomeLoan.com with "ADD" as the subject. To be removed from this list, send an email to steve@MrHomeLoan.com with "REMOVE" as the subject.

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.

Disclaimer: We cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.



More Articles available at:
Steve Hoogenakker
ATM Mortgage - MrHomeLoan
Phone: 763-213-2410
Fax: 763-546-1812
steve@MrHomeLoan.com
http://www.MrHomeLoan.com
LoanToolbox www.loantoolbox.com

When is the best time to lock in interest rates?

Interest Rates When is the Best Time to Lock?

I always advise my clients to lock in their interest rate at the earliest opportunity. Gambling with a client's interest rate is never advisable. In my business, I have a standardized system in place that we adhere to for all of our clientele. A mortgage loan cannot be closed without locking in a rate, and there are three main elements to take into consideration:• Interest Rate • Points • Length of the lock Locking in on a rate does not obligate the client to commit to the loan until the loan is actually closed. The lock simply eliminates any risk of the borrower being exposed to market volatility. It provides the security of having time to complete the mortgage and Real Estate transactions with some sense of order. The lender must disburse funds to complete the transaction within the rate-lock period, or else the original commitment to provide a loan at a certain interest rate will expire. When a lender permits an extended lock-in period, the borrower will usually see either a higher interest rate or more points associated with the loan. The lender does this to minimize their own exposure to market volatility; hence the borrower pays for the lender to take on this risk. For example, a 30-day rate lock commitment may cost the consumer one-half point, while a 60-day rate lock commitment could cost 1 full point. If the borrower needed an extended lock period, but did not want to pay points, the lender could make up the difference in the interest rate. In this case, typically, a 60-day lock would have a higher interest rate than a 30-day lock. In my business, our standard procedure is to lock in a rate as quickly as possible once we have received the loan application. My team and I let our clients know that while interest rates fluctuate daily, most lenders do not want to lose any business. We know that in many cases, if there is a significant rally in the market that causes interest rates to drop .25% or more, we can ask the lender to renegotiate the rate. or understand that we will take the loan to another lender. Often the lender allows for a renegotiation of the rate to avoid losing the loan to another lender. If we allow our clients to sit on the fence and not lock in a rate quickly, we would leave them exposed to market volatility. Then, if rates do increase, the borrower may be unable to qualify for the loan they want, which is a situation we try to avoid at all costs. By knowing our clients' needs and working intimately with them to make the right decisions, my team and I are proud to say that we have many clients who are raving fans.

Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included. Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.More Articles available at:
Steve Hoogenakker ATM Mortgage - MrHomeLoan Phone: 763-213-2410Fax: 763-546-1812 steve@MrHomeLoan.com http://www.mrhomeloan.com/
LoanToolbox www.loantoolbox.com

Avoid Changes to your Financial Profile

Avoid Changes to Your Financial Profile During the Loan Process Once your loan package has been sent to the lender, there are a number of things you should avoid doing that will change your financial picture. Remember, the lender is looking for stability and consistency. If you want the best interest rate, keep that in mind. Here are a few things to consider: The lender is looking to see what your source of down payment is. Your lender will most likely ask you to provide proof of your liquid assets. This includes bank statements for checking and savings accounts, verification of investments, and any other liquid assets. Some of the things they ask for may seem trivial, but keep in mind, if you are planning a move to a new home, it's important to have all documentation readily available. If the lender asks for cancelled checks or deposit receipts to meet certain conditions, you want to be able to find these things quickly to avoid delaying the closing of your loan. Make sure your paper trail is easy to document, and don't move money from one account to another. Major purchases tip the scales against your favor. Avoid making any major purchases. You might be thinking about purchasing new appliances for the new home. This is not the time to do it. Avoid making any major purchases on jewelry, appliances, furniture, vacations, or anything with a significant price tag. Buying or leasing a car can make a negative impact on the way the lender views your financial status. This is a big ticket item that dramatically affects your debt-to-income ratio. You may feel you have room in your budget to purchase a new car, and think this is a worthy investment if you are looking for a home that will mean a longer commute for you on a daily basis. But by tacking a car payment onto your existing debt, you reduce the amount that you will qualify for in a home loan. A $400 a month car payment can reduce your approved loan limit by as much as $50,000. Think about doing this after your loan is approved if you really need it. If you have to change jobs, you may be asked to document why this change occurred. If you are changing jobs to increase your income, that's a no-brainer for the lender. If you have an erratic work history to start with, another job change may make it look worse for you. If you are an hourly wage employee, most likely a job change will have no effect on your ability to qualify for a loan. If you have a track record of a consistent amount of overtime or consistent bonuses over the last two years, the lender views this favorably. If you change jobs, there is no way of knowing if the new employer will pay overtime. Many do not! If you work on a salary + commission or straight commission basis, it has a dramatic effect on your stability. If you are considering starting your own business, again, this is something to consider after your loan is funded. Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included. Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site. About the Author Steve Hoogenakker provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services. Visit: www.MrHomeLoan.com, or you can email Steve at Steve@MrHomeLoan.com Steve Hoogenakker 5820 74th Avenue N. #100 Brooklyn Park, MN 55443 763-546-1414

Steer Clear of FHA Financing

Steer Clear of FHA Financing: Dealing with Investors Who Seek Quick Profits In a recent article, top mortgage originator and national trainer Greg Frost noted that hyper−appreciation of property values in Albuquerque, NM had drawn attention from many out−of−state investors in the last year. The area saw an influx of savvy investors ready to bid on HUD Repos and other affordably priced single−family dwellings. Frost warned mortgage originators and Realtors® to be wary of investors who try to represent themselves as owner occupants in this type of situation. They may seek to obtain 97% FHA financing, even though their real mission is to turn around and sell for a quick profit. Not only does the lender lose their investment due to the rapid pre−pay in this type of transaction −− The Government National Mortgage Association−backed security loses value as well! This practice is called "flipping," which the United States Department of Housing and Urban Development (HUD) defines as "...a predatory lending practice whereby a property that was acquired is quickly resold for a considerable profit with an artificially inflated value, often abetted by a mortgagee's collusion with the property appraiser and others involved in the mortgage loan transaction."* Flipping is not good for FHA, GINNIE MAE, or the affected lenders. Moreover, the negative effect dominoes to those earnest purchasers who end up bearing a harsh increase in interest rates as lenders seek to recoup their losses. HUD established time restriction guidelines in 2003 in an effort to crack down and prohibit the use of FHA loans to support property flipping. The rule forbids a sale within 90 days of purchase, and requires increased documentation by the lender if an FHA−financed home is flipped within 180 days. However, HUD's Prohibition of Property Flipping in HUD's Single Family Mortgage Insurance Programs; Additional Exceptions to Time Restrictions on Sales; Interim Rule was published in December 2004 to broaden and clarify certain exceptions to the existing regulation. The interim rule, which became effective on January 24, 2005, now permits federal agencies that acquire properties [i.e., HUD's Real Estate−Owned (REO) properties] as a result of a function of their programs, to quickly market and sell those acquired properties. Additionally, the interim rule provides that time restrictions on sales do not apply to inherited property. The purpose of time restrictions is to curb fraudulent property flips, whereby a property is deliberately acquired for the purposes of reselling quickly and at an inflated value. While an Heir may turn a property quickly and at a profit, HUD now acknowledges that the sale of an inherited property falls outside the intended scope of the regulation. The interim rule also establishes that time restrictions do not apply to the sale of properties acquired by an employer or relocation agency in connection with the relocation of an employee. With the exception of an Heir selling a home or a person who is forced to relocate due to a job transfer, the HUD definition of flipping applies to all transactions by individuals (non−agencies) who purchase or refinance using FHA funds. Greg Frost advises that if you determine that a potential buyer is really an investor looking for a quick turnaround, steer away from FHA financing entirely and seek to place the buyer in a conventional loan. * See http://www.hudclips.org/sub_nonhud/cgi/pdf/28050.pdf Professional Strategies to make Realtors more successful. Paid by Steve Hoogenakker for Realtor partners. My way of saying Thank You for your business. From the desk of: Steve Hoogenakker President ATM Home Loan − MrHomeLoan Tel: 763−213−2410 Fax: 763−546−1812 steve@MrHomeLoan.com Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site. About the Author Steve Hoogenakker provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services. Visit: www.MrHomeLoan.com, or you can email Steve at Steve@MrHomeLoan.com Steve Hoogenakker 5820 74th Avenue N. #100 Brooklyn Park, MN 55443 763-546-1414

Understanding Credit Scoring & Credit Repair

Understanding Credit Scoring &Credit Repair By Steven Hoogenakker, President Mr Home Loan - ATM Financial Services Seek a Qualified Mortgage Consultant to Ensure the Best Results Mineapolis, Minnesota – Credit remediation is a subject consumers often face with fear and trepidation, and for good reason. With the exception of recognizing that the best score wins, the average home shopper knows very little about the whole credit scoring process. Sub-prime borrowers who are eager to move into A-Paper territory often find themselves at a loss when trying to find ways to upgrade their credit history. The good news is there are ways to improve less-than-perfect credit scores and obtain a loan for the home you really want. The first step in the process is making sure that you have a current copy of your credit report. Congress recently amended the Fair Credit Reporting Act so that consumers may now receive one free credit report annually. There are three major credit bureaus: Equifax, Experian, and Transunion. Since entries can vary across bureaus, you’ll want to request a free report from each of the three companies. (Go to www.annualcreditreport.com) It's also important to know just what a good credit score is. Most A-Paper scores generally begin around 680, although this number may differ slightly among lenders. Don't despair if you come up shy, there is always room for improvement. Increasing your score just 5 points can save a significant amount of money. For example, if your score is 698 and you increase it to 703, then you could save yourself thousands of dollars over time as a result of a slight improvement to your loan’s interest rate. While credit repair is necessary for some, it's not the only way to increase your credit score. Even if you have stellar credit, you can enhance your score through these steps: · Evenly distribute your credit card debt to change the ratio of debt to available credit. Let's say you have a credit score of 665. If you have debt on only one card, and four additional credit cards with zero balances, evenly distributing the debt of the first card could move you closer, and possibly into, that ideal bracket. · Keep your existing accounts open and active. The average consumer is usually anxious to close credit card accounts that have zero balances, but doing this can cause them to lose the benefits of a long-term credit history and increase their ratio of debt-to-available credit. The bottom line is don't close those old accounts! · Keep credit inquiries to a minimum. Each inquiry into your credit history can impact your score anywhere from 2-50 points. When it comes to mortgage and auto loans, even though you're only looking for one loan, multiple lenders may request your credit report. To compensate for this, the score counts multiple auto or mortgage inquiries in any 14-day period as just one inquiry, so try and stay within that time frame. Remember, credit scores don't change overnight. Improving them requires time and diligent effort on your part, so it's a good idea to get the ball rolling at least three to six months prior to submitting your application for home financing. If credit repair is what you need, you can either begin the process yourself or seek out a repair service. If you decide to make your own improvements, visit as many websites as possible to get information regarding credit laws and consumer rights. Diligently search through them and educate yourself to ensure that you don’t sustain any self-inflicted wounds. A good place to start would be the Federal Trade Commission's website, which contains a wealth of helpful literature. If you’re facing severe or complicated credit issues, then you’ll probably want to enlist the assistance of a professional credit repair company. Before you do, be sure to familiarize yourself with the FTC's regulations on credit repair. With over 1100 credit repair companies to choose from, it's important to be certain you are dealing with a reputable firm. Examine the FTC's information on fraudulent practices to avoid falling prey to credit repair scams. Addressing credit issues can be uncomfortable to say the least. But by taking these steps now, you’ll be that much closer to obtaining the home of your dreams. Additional Resources: To order your free credit report, go to: http://www.annualcreditreport.com/ To read the Fair Credit Reporting Act, go to: www.ftc.gov/os/statutes/frca.htm For the Federal Trade Commission's information on consumer credit, go to: www.ftc.gov/bcp/conline/edcams/credit/index.html Robert Carver is affiliated with ATM Financial, a Licensed Broker, Minnesota Department of Commerce. Carver hosts Home Buyer’s Seminars which are open to the public on the 3rd Tuesday of the month at the Plymouth office. from 7:00 p.m. to 8:30 p.m. Seating is limited. To reserve your seat at the next event, call [763-213-2410 to RSVP and obtain a free copy of Robert Carver’s Home Buyer Handbook.

Why Refinance back into a 30 year loan

Why Refinance Back into a 30-Year Loan? Refinance Your Mortgage for Rate and Payment Reductions By Steve Hoogenakker – President ATM Financial Services – MrHomeLoan.com Minneapolis, Minnesota – One of the biggest reasons homeowners refinance their mortgage is to obtain a lower interest rate and lower monthly payments. By refinancing, the borrower pays off their existing mortgage and replaces it with a new one. This can often be accomplished with a no-points no-fees loan program, which essentially means at “no cost” to the borrower. In the no-points no-fees scenario, the mortgage consultant uses rebate monies paid by the lender to pay off non-recurring closing costs for the borrower. These are “one time” fees such as escrow or attorney fees, title insurance, document preparation, tax service, flood certification, processing and underwriting fees, etc. The borrower is still responsible for recurring fees such as interim insurance, property taxes or insurance policy payments. Refinancing typically occurs when mortgage interest rates drop significantly, but borrowers with recently improved credit scores (from paying off credit card debt, making mortgage payments on time, etc.) are often candidates for better interest rates as well. If you haven’t checked your credit score in a while, it’s a good time to call a mortgage consultant. The question most asked is, “But why should I go back into a 30-year loan?” There are two schools of thought on this subject, and the mortgage consultant should work hand-in-hand with the borrower’s financial planner to determine what works best for their mutual client. One option is to take the route of the “same payment” refinance, and actually pay off the loan faster and save money on interest fees in the long-run. If refinancing results in a lower monthly payment, the borrower can still continue making the same payment they made in the original loan, and the extra money will be applied to the principal balance. For example: Let’s say you have 25 years remaining in your current loan, and you refinance back to a 30-year loan with a slightly lower interest rate, resulting in a payment reduction of $200 per month. (Note: This is just an example. The actual amount could vary.) You could then take that extra $200 per month and apply it toward the principal on the new loan. At this rate, the loan will be paid off in 22 years and 4 months, which is 2 years and 8 months less than the original loan. On the other hand, if the borrower’s financial planner is a proponent of best-selling author and investment guru Douglas Andrew’s philosophies (see Missed Fortune), he or she may suggest investing the extra money in a side-fund that could earn a better rate of return and grow to the amount of the mortgage (and beyond) in even less time. This method provides excellent liquidity, but having more direct access to this money may be too tempting for some homeowners. Regardless of the reason for the refinance, the mortgage consultant will need to know what the existing loan scenario entails, review the homeowner’s long-term goals, and provide a comprehensive spreadsheet that compares and contrasts the various loan programs available. Bear in mind, refinancing to obtain a lower interest payment could also result in a lower deduction at tax time. The homeowner’s mortgage consultant and financial planner should work hand-in-hand with their mutual client’s best interest in mind. Steve Hoogenakker is affiliated with ATM Financial, a Licensed Broker, Minnesota Department Commerce. Hoogenakker hosts Home Buyer’s Seminars which are open to the public on the 3rd Tuesday of the month at the Plymouth office. from 7:00 p.m. to 8:30 p.m. Seating is limited. To reserve your seat at the next event, call [763-213-2410 to RSVP and obtain a free copy of Steve Hoogenakker’s Home Buyer Handbook. # # # SUBMITTED BY: Steve Hoogenakker Phone 763-213.2410 Fax 763-479-0433 E-MAIL steve@MrHomeLoan.com Website http://www.mrhomeloan.com/

Stop Paying Your Landlord's Mortgage

Stop Paying Your Landlord's Mortgage! 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, then over the next three years, your property management company will effectively have reaped $36,000 of your hard earned cash! You're paying their mortgage when you could be building equity in your own property.What if I don't have the money to buy a home right now?There are many loan programs available that offer low and no down payment options. Some programs permit gift money as a down payment, and often sellers are willing to make a contribution to your purchase if they want to sell the home quickly.There are many benefits of home ownership to consider, most of all, tax deductions. Let's take a look at how advantageous this can be as a homeowner:How much is tax deductible?Tax deductions vary, but the IRS has laid out solid rules. They also have several tax publications full of helpful information worth taking the time to read. Publication 530, Tax Information for First-Time Homeowners, is very thorough, as is Publication 936, Home Mortgage Interest Deduction. For quick reference, you can refer to Tax Topics 505, Interest Expense, and 504, Home Mortgage Points.These publications often refer to local and state guidelines, so you may want to consult a CPA to answer all the questions that arise from reading these materials. Here are a few tips you should know up front:Real Estate taxes are deductible on a primary residence. Real Estate taxes are paid at settlement or closing, or through an escrow account.Mortgage interest is deductible on a loan to purchase, build or improve your home. Your lender will provide you with a Mortgage Interest Statement (Form 1098) to list the total interest paid during the year. This should include any deductible points paid for that year.Pre-paid interest is deductible in the year it is paid. At the close of a real estate transaction, borrowers usually pay for the interest on their loan that falls between the closing period and the first of the next month. Mortgage payments are made "in arrears" so when a loan is closed mid-month, there is interest due to the new lender which must be paid in advance.If you are building a home, the interest on the construction loan is deductible. The construction period cannot exceed 24 months prior to the date that you move in if you claim this as your primary residence. Call me to discuss your specific needs and we'll find the program that's right for you.We have a variety of low down payment and no down payment programs available. Steve Hoogenakker PresidentATM Home Loan - MrHomeLoan Phone: 763-213-2410Fax: 763-546-1812 steve@MrHomeLoan.com http://www.mrhomeloan.com/ Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included. Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.About the Author Steve Hoogenakker provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services. Visit: http://www.mrhomeloan.com/, or you can email Steve at mailto:%20Steve@MrHomeLoan.com Steve Hoogenakker 5820 74th Avenue N. #100 Brooklyn Park, MN 55443 763-546-1414