Wednesday, August 22, 2007
Congratulations!!!!
I was elected by the Simi Valley Moorpark Association of Realtors to serve as the Treasurer for the 2008 term. I have served on the Budget and Finance committe for three years and have been a director for 2007.
Wednesday, August 15, 2007
Credit Secrets?
Credit and Credit scores are very mysterious. Mysterious to the point that many people do not pay much attention to their Credit status until it is time to make a purchase. The little (and I stress little) step you take today can pay huge dividends later when you go to purchase that next home, car or appliance, etc.
If you have not looked at your credit recently there are two way you can do this. Well there are more than two, but the following two are the best. You need to see your reports in a raw form. The best way to do this is to order a hard copy of each report from each Credit Reporting Agency (aka - CRA). Each report will cost approximately $10.00. If you believe you might have a few challenges then this first option is the best.
Let me stress............NEVER USE A FREE REPORT SERVICE.
Free reports make it more difficult to dispute and errors on your reports (this topic will be covered later). The $30.00 you spend for the hard copies will be well worth it if you need to dispute. Additionally DO NOT ORDER YOUR REPORTS FROM ANYONE OTHER THAN TRANSUNION, EQUIFAX & EXPERIAN. Third party company reports will not have many of the details you may need to see in order to optimize your report.
The second place to get your report is a little more expensive (between $45.00 and $50.00 for all three) and that is www.myfico.com. myFICO.com is the only website you can go to and get your REAL FICO SCORES. All the other websites that claim to have your score, have what is affectionately called a FAKO (Pronounced FAKE-O). The Fair Isaac Corporation owns the secret formula for the scores and does not share that with anyone. The formula is closely guarded just like the recipe for Coke and Kentucky Fried Chicken. The score you see on myFICO.com will be the same score that a car dealer will pull or any other lending source.
What is a Trimerge report? A Trimerge report is a report you can order from third party providers which will include all three reports combined into one report. While these reports are helpful, they are not as detailed as the reports recommended above. If you sign up for a credit monitoring service then you will have access to a trimerge report. This is good for monitoring purposes and costs less, but if you need to dispute or work on your credit, the hard copies are a must. The good news is if you dispute items on your report and they are removed, the CRA will send you a new updated copy of your report at no additional charge.
To order you report mail your payment and request to the following companies:
Equifax
PO Box 740241
Atlanta, GA 30374-0241
Currently $8.00
Experian
PO Box 2104
Allen, TX 75013
Currently $9.95
TransUnion
PO Box 2000
Chester, PA 19022-2000
Currently $8.00
You will need to include a copy of your Driver's License if you mail in your request. You may also order over the phone with a credit card.
Also when you request your report you will want to OPT-OUT at the same time. When you opt out you will have your name removed from the mailing lists the CRA sell to credit card companies and others. you will recieve less junk mail when you opt-out. This option is good for 5 years and must be renewed.
This is the first installment......More to follow......
If you have not looked at your credit recently there are two way you can do this. Well there are more than two, but the following two are the best. You need to see your reports in a raw form. The best way to do this is to order a hard copy of each report from each Credit Reporting Agency (aka - CRA). Each report will cost approximately $10.00. If you believe you might have a few challenges then this first option is the best.
Let me stress............NEVER USE A FREE REPORT SERVICE.
Free reports make it more difficult to dispute and errors on your reports (this topic will be covered later). The $30.00 you spend for the hard copies will be well worth it if you need to dispute. Additionally DO NOT ORDER YOUR REPORTS FROM ANYONE OTHER THAN TRANSUNION, EQUIFAX & EXPERIAN. Third party company reports will not have many of the details you may need to see in order to optimize your report.
The second place to get your report is a little more expensive (between $45.00 and $50.00 for all three) and that is www.myfico.com. myFICO.com is the only website you can go to and get your REAL FICO SCORES. All the other websites that claim to have your score, have what is affectionately called a FAKO (Pronounced FAKE-O). The Fair Isaac Corporation owns the secret formula for the scores and does not share that with anyone. The formula is closely guarded just like the recipe for Coke and Kentucky Fried Chicken. The score you see on myFICO.com will be the same score that a car dealer will pull or any other lending source.
What is a Trimerge report? A Trimerge report is a report you can order from third party providers which will include all three reports combined into one report. While these reports are helpful, they are not as detailed as the reports recommended above. If you sign up for a credit monitoring service then you will have access to a trimerge report. This is good for monitoring purposes and costs less, but if you need to dispute or work on your credit, the hard copies are a must. The good news is if you dispute items on your report and they are removed, the CRA will send you a new updated copy of your report at no additional charge.
To order you report mail your payment and request to the following companies:
Equifax
PO Box 740241
Atlanta, GA 30374-0241
Currently $8.00
Experian
PO Box 2104
Allen, TX 75013
Currently $9.95
TransUnion
PO Box 2000
Chester, PA 19022-2000
Currently $8.00
You will need to include a copy of your Driver's License if you mail in your request. You may also order over the phone with a credit card.
Also when you request your report you will want to OPT-OUT at the same time. When you opt out you will have your name removed from the mailing lists the CRA sell to credit card companies and others. you will recieve less junk mail when you opt-out. This option is good for 5 years and must be renewed.
This is the first installment......More to follow......
Monday, August 06, 2007
More Foreclosure News
Every newspaper seems to have an article on the mortgage industry and the dilemma of subprime mortgages. The Stock Market is taking a beating with fallout and consumers are now on the sidelines trying to figure out if a crash is in process and when the best time to buy a home might be.
If you are one of these buyers trying to decide, then ask the following question:
The home I am looking to purchase is going to be
a) A home I plan on living in longer than 5 years.
b) An investment which I intend to own less than a year to rehab and flip.
If you answered 'a', then the time to buy is now. The variables you cannot account for in the next 12 months include interest rates and lending requirements. Because of the lending fall out, requirements to qualify for loans is getting tougher not easier. If you have less than stellar credit your lending options are getting smaller everyday. If rates go up, even with a moderate reduction in prices your monthly payment will not go down. The Fall and holiday months in this area see a slow down in activity, which will open up buying opportunities as sellers who need to sell will not be as picky if an offer comes their way.
If you answered 'b', then now is the time to get a business plan and do your home work. I really feel unless you have the capital to show up at the foreclosure sales, the homes listed on the Multiple Listing Service will not be priced low enough for a short term flip. Inventory is up and the number of homes sold is low. You will not only need capital for rehab, but maybe several months reserves for payments & utilities while you try to sell.
I think this is a good time to buy. My wife and I answered the question under 'a' and we have purchase a home and are in escrow to close the first week of September.
My next blog entry will be on credit, how to boost your score and what to do to keep from lowering your score.
If you are one of these buyers trying to decide, then ask the following question:
The home I am looking to purchase is going to be
a) A home I plan on living in longer than 5 years.
b) An investment which I intend to own less than a year to rehab and flip.
If you answered 'a', then the time to buy is now. The variables you cannot account for in the next 12 months include interest rates and lending requirements. Because of the lending fall out, requirements to qualify for loans is getting tougher not easier. If you have less than stellar credit your lending options are getting smaller everyday. If rates go up, even with a moderate reduction in prices your monthly payment will not go down. The Fall and holiday months in this area see a slow down in activity, which will open up buying opportunities as sellers who need to sell will not be as picky if an offer comes their way.
If you answered 'b', then now is the time to get a business plan and do your home work. I really feel unless you have the capital to show up at the foreclosure sales, the homes listed on the Multiple Listing Service will not be priced low enough for a short term flip. Inventory is up and the number of homes sold is low. You will not only need capital for rehab, but maybe several months reserves for payments & utilities while you try to sell.
I think this is a good time to buy. My wife and I answered the question under 'a' and we have purchase a home and are in escrow to close the first week of September.
My next blog entry will be on credit, how to boost your score and what to do to keep from lowering your score.
