Chance Gates' Blog

Thanks to my friends at Prospect Mtg and  a low credit score loan

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Do you know your credit score and what factors raise or lower it? Do you know how to “dispute” an error on your credit report that could be suppressing your credit score? Understanding these and other critical credit issues is the foundation of consumer credit management.

Having real-time access to your personal credit information is the first step in managing your credit. New generation consumer credit management websites offer unprecedented value to consumers, who just 15 years ago were at the mercy of confusing, hard-to-read credit reports. It’s a whole new world of rapid access, easy-to-use navigation, and real-world advice.

Online credit management websites offer real-time access to your credit report and credit score, dynamic tools to help you understand how your credit score is determined, comprehensive credit education, fraud protection, “lost wallet” credit card cancellation services, online disputing of credit report errors (a much faster process than mailing hard copy disputes) and other convenient services.

If a low credit score is keeping you from getting financing when you need it and at the best possible rates, then managing your credit online is a wise move. You’ll be able to see the progress of your credit score as you work to improve it, and online disputing helps fix errors quickly. Do you have a high credit score and want to protect it? Online credit management allows for frequent monitoring, email pings when inquiries are made on your credit, fraud and identity theft protection, and other services that can save you time and money.

Mark your favorite properties and get instant updates price changes,  new pictures and status changes.

As a Reno/Sparks Nevada real estate professional and property manager, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  To checkout some of  my property manager services goto http://chancegates.com/property-management-services/

If you are behind on your house payment and looking for a loan modification, go to making homes affordable

If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

http://members.houselogic.com/landing/credit-scores-072011/?nicmp=rcrim&nichn=editorial&niseg=narwr&cid=WR07062011:22837&ed_rid=1698691

By: Gwen Moran

Published: October 22, 2010

If you’re trying to raise your credit score to get a good rate for a refinance or HELOC, you might be surprised by what affects—or doesn’t affect—your score.

More money improves your credit score

False. Your level or sources of income don’t affect your credit score, although lenders may look at it when making loan decisions, according to the Fair Isaac Corp., the company that issues the commonly used FICO credit scores.

Ownership of several credit cards can hurt your credit score

Mostly false. Having many credit lines isn’t necessarily a bad thing, says credit expert Liz Weston, author of Your Credit Score. Multiple lines give you a favorable debt-to-available-credit ratio. But use them correctly: It’s best to keep any balances below 10% or 20% of the total credit line, she says. Anything more will affect the ratio of debt-to-available-credit, which can decrease your credit score.

Opening and closing credit lines can hurt your credit score

True. New credit applications can decrease your credit score, so be careful about applying for new credit cards or personal loans before applying for a HELOC, second mortgage, automobile loan, or other large line of credit.

Surprise: Closing existing credit lines may also hurt your credit score, since it’ll damage your debt-to-available-credit ratio. A good rule is not to make any credit changes in the months leading up to a major credit request, such as for a HELOC.

Consolidating credit lines will help your credit score

Mostly false. Although it may seem like a good idea to move all your balances to one card, that can actually hurt your credit score, since your debt-to-available-credit ratio will spike on that card, says Weston.

However, credit expert Harrine Freeman says such a slight decline isn’t necessarily a deal-breaker for a loan, especially if the card has a lower interest rate and will allow you to pay off the balance sooner. Your score will increase as soon as that ratio goes down.

Changing jobs can hurt your credit score

Partly true. Taking a new job or losing your job doesn’t affect your credit score. However, if you have a spotty employment history, lenders may hold that against you in making a loan. Dips in income may signal that it could be difficult to pay bills in a timely manner.

Co-signing for others can hurt your credit score

Partly true. Simply co-signing on a loan for someone else may not affect your score, but if that person is late on paying the loan, it’s likely to show up on your report, says Freeman. And that’s a nasty surprise if you didn’t know the person was late.

Judgments and liens aren’t considered in your credit score

False. If you’ve had a judgment or lien filed against you, it’s considered in your payment history, which represents 35% of your score.

Similarly, while most utility companies don’t report payment history to credit bureaus, your account will likely be reported if it is seriously delinquent and referred to a collection agency.

Additional details on how to manage your FICO score are available on the FICO site.

Gwen Moran is a freelance business and finance writer from the Jersey shore. She’s the co-author of The Complete Idiot’s Guide to Business Plans and writes frequently about real estate.

Mark your favorite properties and get instant updates price changes,  new pictures and status changes.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney

By Pamela Yip

RISMEDIA, December 24, 2010—(MCT)—If you’ve been through a foreclosure, you may wonder if there is hope for you to become a homeowner again.

“It doesn’t mean you’ll never be a homeowner again,” said Linda Davis-Demas, director of housing at Consumer Credit Counseling Service of Greater Dallas.

But you’ll need to examine what caused you to fall behind on your mortgage and take steps to fix the problem.

“You have to look at what were the reasons you didn’t make the payment,” said Davis-Demas. “Was it budgeting? You can modify that type of behavior.”

A foreclosure is a major hit to your credit history and stays on your credit report for seven years.

“Foreclosure is one of the FICO seven deadlies,” said credit expert John Ulzheimer, referring to the dominant FICO credit score. “It’s considered a major derogatory item, regardless of the back story”—whether it’s a job loss, rate reset, underemployment or other reasons.

Your credit score will also suffer “the minute the foreclosure process begins,” said Ulzheimer, founder of 2StepCredit.com, a credit education website.

“It doesn’t have to be completed for it to be very damaging,” he said. “The damage will vary based on your scores, but it can damage the score as much as 200 points, especially if your scores are very strong to begin with.”

So, after a foreclosure, your priority has to be rebuilding your credit. You’ll have some time to do so, because mortgage giants Fannie Mae and Freddie Mac impose strict rules on how long it will take before you’re eligible for another mortgage.

For example, borrowers with a prior foreclosure and extenuating circumstances—such as a job loss, divorce or medical issues—must wait three years before they can qualify for a Fannie Mae-backed loan, said spokeswoman Amy Bonitatibus. For all other borrowers the waiting period is seven years.

At Freddie Mac, those who can prove extenuating circumstances must wait three years before applying for a new mortgage; everyone else must wait five years. But that will change in February, when the waiting period for those whose foreclosure was caused by their own financial mismanagement will increase to seven years.

Fannie Mae and Freddie Mac also have strict rules on the credit score and the size of the down payment required of borrowers with a prior foreclosure.

Here’s what you need to do to rebuild your credit to qualify again for a mortgage:

PAY YOUR BILLS ON TIME: The FICO score, the dominant credit score used by lenders, gives the greatest weight to payment history, so make sure you consistently pay your bills on time.

“Stability is the key,” said Craig Jarrell, president of the Dallas region of IberiaBank Mortgage Co. “Have you demonstrated that you are now capable of owning a home and paying the bills, and have recovered from whatever circumstance caused the original foreclosure?”

REVIEW CREDIT REPORT: You’re entitled to a free credit report once every 12 months from each of the three national credit bureaus—Experian, TransUnion and Equifax. You should get a copy and check it for any inaccuracies.

To get your free credit report, go to http://www.annualcreditreport.com. Go to only this website, not ones with similar-sounding names.

“Make sure it is about you and only you,” said Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling. “If you find errors, dispute them. If you discover old debts, it will weigh in your favor to satisfy them. Paid late looks better than not paid at all. Make sure that debts older than seven years have rotated off your report, as these could be dragging your score down unnecessarily.”

CHECK YOUR MORTGAGE: You want to be sure that you don’t still owe anything on your old mortgage. Sometimes proceeds from a foreclosure sale aren’t enough to cover what’s owed on the mortgage, which would leave you owing the difference.

“Make sure there is a zero balance reflected, and if you are responsible for a shortfall, make arrangements to repay the remaining balance,” Cunningham said.

Many lenders are willing to settle that “deficiency judgment” for less than what’s owed because “it’s better than getting no money at all,” Jarrell said.

APPLY FOR CREDIT: In particular, apply for different varieties of credit.

“Credit scoring models value having different types of credit,” Cunningham said. “Having some revolving accounts, typically credit cards, and some installment fixed-payment loans, such as a car payment, can improve your score.”

But don’t apply for too much credit at once.

“This can appear as though you’re desperate for credit and perhaps make lenders less inclined to extend credit to you,” Cunningham said. “Further, too many credit inquiries can have a negative impact on your credit score.”

DON’T FALL PREY: Watch out for credit repair companies that promise to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job—after paying a fee for the service.

“The truth is, that no one can remove accurate negative information from your credit report,” according to the Federal Trade Commission. “It’s illegal.”

Only the passage of time can assure that negative, but accurate, information on your credit report will be removed.

When it comes to repairing your credit, there are no quick fixes, the experts say. What lenders want to see is responsible financial behavior over time.

“Know that time is your friend, as the further you move away from the financial distress, the less negative impact it has,” Cunningham said. “Follow with responsible behavior with your new credit, and you’ll soon have a solid credit file.”

HOW TO HELP YOUR MORTGAGE CHANCES:
If you’ve been through a foreclosure, there’s still hope for you to become a homeowner again. Here are tips to make lenders want to take a chance on you:

—Save for a down payment.
—Clean up your credit. Pay off or pay down your debts and establish a record of consistent on-time bill payments.
—Get your credit score as high as possible.
—Show stability in your job.
—Monitor your credit report to ensure that your old loan shows up as closed and that you still don’t owe anything else on it.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com or  http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney. For a free copy of my blog titled  “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page
Source: Dallas Morning News research

By Jim Dinkel and Ken Trepeta

RISMEDIA, August 9, 2010—The real estate industry and especially the mortgage industry have been overwhelmed with changes, regulations and consolidations recently. In the last couple of months, many transactions nationally have experienced delayed closings or worse as a result of the application of new guidelines affecting APR, Good Faith Estimates (GFE), Truth in Lending (TILA) and condo project approvals to name a few.

There is one more issue that is critical for real estate agents, loan officers, and anyone else who deals with consumers purchasing a home or obtaining a refinance. Effective with applications on or after June 1, 2010, Fannie Mae has issued new lender mandates (FNMA LL-2010-03 Loan Quality Initiative) on a national basis that, if not understood properly, could have devastating consequences for many buyers and sellers. We want to be certain that everyone understands the implications of the new rules and ensure that all interested parties know what they need to know to minimize negative repercussions.

The intent of this initiative is to assure that all applicant information is disclosed and is honest and accurate as of the moment of closing. Lenders will now be required to re-pull credit report information just prior to closing, re-verify employment, validate Social Security numbers, verify intent to occupy and verify that all parties to the transaction have been checked against the national “excluded party” list, which is managed by HUD and by the General Services Administration. Changes in any of these factors are likely to result in a re-underwrite, the need for additional documentation, or suspension of loan closing.

The most onerous of these is the credit re-pull. It is important that this is done as a “soft pull” so it does not show as an inquiry, which could potentially change the borrower’s credit score. Firms will, however, have to match the outstanding debts and inquiries with the report used to approve the loan. Additional credit or increased balances that change the debt-to-income ratio more than 2% (or less if it now exceeds guidelines) will require the loan to be suspended and re-submitted to underwriting.

Any additional delinquencies will result in a new, full credit re-pull and re-underwriting, utilizing the new credit. Any and all inquiries from other lenders or credit suppliers must be verified by the credit bureau and certified that new debt did not occur. If new credit has been extended, the new debt must be included in the borrower’s debt-to-income ratio and the loan must be re-underwritten.

Other considerations are W-2 employees that may own more than 25% of a business, mandating business returns and cash flow analysis and full disclosure of child support and alimony. Changes could render the applicant unqualified or could delay the closing. As a result of TILA, GFE and risk-based pricing changes, additional debt could result in re-pricing the loan due to a change in credit score, which even if approvable, would delay the closing three business days as re-disclosure would be required.

So How Do We Manage the New Process?
Real estate agents and lenders must impress upon the applicants the need for full and honest disclosure at the time of application, during the loan process and at closing. Buyers must be cautioned against applying for new credit during the process, changing jobs (30-day pay stub requirements are being enforced), and charging to their credit cards. It is imperative that they notify the lender if anything changes from application to closing.

We must all be aware that an applicant that signs an erroneous initial or final closing application could be committing fraud. Lenders choosing to approve loans without the proper loan quality processes and documentation are only endangering the buyer. Any lender or real estate agent that encourages someone to falsify information could be equally responsible. It is noteworthy to mention that many loans go through an immediate quality control audit post closing, so this could affect highly qualified applicants as well. Identified fraud of this nature could be investigated by the FBI.

While this new policy was implemented first by Fannie Mae, it is already a mandate of all national lenders and, based on experience, will soon be required on every loan. It is important to keep this in mind on every deal, not just ones that may involve Fannie Mae.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog.  You can email me @  chance at ballard-company.com or http://www.myspace.com/chancegates

By Debra Karplus
8 July 2010

Imagine that you’re a loan officer at the local bank. Two customers, Mr. Rich and Mr. Buck, come in to borrow money. You check Mr. Rich’s history; he has an excellent credit score, 800. Mr. Buck’s score is an embarrassingly low 300. To whom should you lend money? Mr. Buck’s low credit score indicates that he might not be able to repay the loan. Buck doesn’t stop here; goodbye, Mr. Buck.

What is a credit score?

When you were in school, your grade point average (GPA) indicated how well you performed in your classes. Your SAT and ACT scores measured overall achievement in language and math. Colleges used these indicators to decide if they wanted to admit you to their freshman class.

Your credit score works in a similar way as school tests, except that it’s a measure of your credit risk. Like college entrance exams, a credit score is derived from a standardized formula. Late payments on bills, having no credit references, and unfavorable credit card use will mar your credit history and lower your credit score.

Your credit report indicates how likely you are to pay your bills. It’s used anytime you’re seeking a mortgage, car loan, or credit card and also, for determining credit limit, which is the maximum amount of money you can borrow. Your credit score can even determine the premium you’ll pay for car insurance. Your credit report determines not only whether you will be given credit, but also, what interest rate you will be eligible for. A higher credit score gives you a lower interest rate when you’re borrowing money.

Who determines your credit score?

Credit scores range from 300 to 850. Most people’s score is 600 to 800. A credit score of over 720 is considered to be a good score and will generally get you the best interest rate.

There are three companies that provide credit scores, Equifax, TransUnion, and Experian. They are corporations that make their money, not directly from you, but from companies such as banks, that loan money to people. Each of the three allows you, the consumer, to receive a free credit report annually. But, it’s not done automatically; if you want to know your credit score, you’ll need to get on the website of one of these three companies and specifically request your score. Each calculates your score a bit differently. You can learn about these companies on their websites.

Equifax has been around for about one hundred years and is located in Atlanta, Georgia. They are a Standard & Poor’s (S&P) 500 company publicly traded corporation; symbol EFX, on the New York Stock Exchange. Equifax serves fifteen countries in North America, Latin America and Europe.

TransUnion, a global company, located in Chicago, serves twenty-five countries on five continents, for the past thirty years. They provide credit services and information management. They are a limited liability corporation (LLC); therefore they are not a publicly traded company.

Experian serves sixty-five countries and has 15,500 employees. Their stock trades on the London Stock Exchange, but formerly traded on NASDAQ under the symbol EXPN.

How can you improve your credit score?

It’s prudent to check your credit score yearly with one of the three credit reporting companies. When you receive your report you want to first, review it carefully and see if there are any errors or flaws. For example, if the report shows an old unpaid balance on your Target credit card, you’ll want to contact Target, and get that corrected. The other way to raise your credit score is to make sure you pay down any credit card debt that you have.

You should not close any unused accounts. This may go against your better judgment. But, closing credit card accounts, especially more than one at the same time, could be a red flag that you might be a credit risk.

Why does your credit score matter?

Your credit history is your credit reputation. It is maintained by a credit bureau. So how can you have a credit history if you’ve never had a credit card or borrowed any money? And, how do you establish a good credit history? The main way is to open a checking or savings account and to manage it well, such as avoid overdrawing the account. Second, pay your bills on time, and third, use your credit card carefully. These may seem obvious, but many people must be clueless, because they have a low credit score.

Borrowing money is a smart way to establish a credit history and have a favorable credit score, as long as you are responsible about using credit, whether from a lending institution or a credit card. When you are ready to finance your first car or get a mortgage for a house, you will be very pleased with yourself if you have a high credit score.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog.  You can email me @  chance at ballard-company.com or http://www.myspace.com/chancegates

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Your credit score will directly affect how much and at what rate you will be able to borrow from a lender.  Whether you’re looking to purchase a home or simply finance a car, you should always have an idea of what your score is and what factors may affect it.

A great way to start understanding your credit is to obtain an actual copy of your credit report.  According to the “Fair and Accurate Transactions Act” (FACT ACT), you are entitled to receive a free copy of your report from all three major credit companies.  Your actual scores will be missing from the report as you are only entitled to receive the report itself for free.  If you are interested in seeing your scores, you will have to pay.  Each company uses a slightly different format, but once you start to go through them you will get an idea of how things are being reported.

Some factors that will bring down your scores are as follows:

1. Maxing out your available credit.

2. Having few lines of credit with low use.

3. Applying for credit at many places within a short period of time.

4. Errors and multiple entries on your report.

5. Allowing unpaid bills to go into collection agencies.

Factors that will improve your scores:

1. Constantly using your credit

2. Paying your credit/bills back on time.

3. Multiple lines of credit in good standards.

A great way to enhance your credit is to obtain around 4 different lines of credit.  Use them to buy your big ticket items, and try to pay them down as fast as you can.  But be careful not to pay them down to zero.  Most lenders and other creditors want to see that you are using your credit often, but not over exhausting your limit.  If they don’t see enough activity, they don’t have much information to judge your amount of credit responsibility on.

When you review your credit report, be on the lookout for items that shouldn’t be there.  Most items are suppose to drop off after seven years (there are some exceptions), however sometimes you will see things that are still being reported that shouldn’t be.  Any accounts that you closed should state “closed by consumer.”  Many times you will find that these accounts are being reported as “closed by creditor.”  This type of reporting has a negative impact on your credit.  Sometimes you will also find the same account being reported multiple times.  If it’s an account in good standing, this isn’t really a problem.  However if a negative account is being reported twice, it may be impacting your credit more than it should.

As a Reno/Sparks real estate professional, I encourage all questions or comments on the Reno/Sparks real estate market or any of the articles posted on this blog.  I can be reached by email at:   chance at ballard-company.com or http://www.myspace.com/chancegates

The clock is ticking on the federal homebuyer tax credit.

Homebuyers still have time to buy a home and meet the deadlines, but they will need to act soon and be proactive throughout the transaction.

The homebuyer tax credit is worth 10 percent of the home’s sale price, up to $8,000 for buyers who haven’t owned a home in the previous three years and up to $6,500 for buyers who have owned and occupied a principal residence for at least five consecutive years during the eight-year period that ends on the day the new home is purchased.

Here are some tips for last-minute buyers:

• Buyers should be “upfront with their Realtor about their must-haves and their wish list,” says Allyson Bernard, owner of Real Estate Professionals of Connecticut. Buyers who aren’t realistic could find themselves up against the deadline with fewer houses from which to choose.
• Harsh weather may be “a help or a hindrance,” Bernard says. Buyers who are willing to trudge through snow to find a house may have an advantage over buyers who wait until the weather improves.
• Contract contingencies allow buyers some breathing room to take care of big items such as financing, inspections and the sale of their current home, Bernard says. But contingencies shouldn’t be an excuse to delay once the deal is pending.

“If you run into a problem and you no longer want to buy that house, it’s great that you had those contingencies to protect you, but you may not have time to find another property,” she says.

• Anecdotal reports suggest that some buyers have included a tax-credit contingency in the purchase contract. Whether that’s a necessary protection to make sure the deal closes on time depends on the situation and local practices. Either way, buyers should read the contract to make sure the closing will occur before the deadline.
• Buyers should get preapproved for a mortgage, because glitches such as a mistake on a credit report or a lender’s request for tax returns that must be retrieved from the IRS can cause a delay, says Patti Ketcham, owner of Ketcham Realty Group in Tallahassee, Fla.

“You don’t want to wait until the last minute, because you could end up shooting yourself in the foot over something that’s no one’s fault, but you just run out of time,” she says.

• Buyers also should allow extra time in case the mortgage lender requires a second appraisal, which can delay final loan approval.

“The appraisal process in residential lending is going through some painful changes. It is not uncommon to have a mortgage lender require more than one appraisal,” Ketcham says

http://realestate.msn.com/article.aspx?cp-documentid=23657587

As a Reno – Sparks real estate consultant I encourage any questions or comments on the Reno – Sparks real estate market or any other article I post here.

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