And now... a word about Appraisals

Misunderstood.

I am frequently asked “What are the most common issues that you find with appraisals?”

First let me clear up one major misconception. Neither your realtor nor your loan officer/lender has any control over who the appraiser will be for the property you are purchasing, or what will appear in the appraisal including value, condition, needed repairs, and observations. According to regulation, the appraiser must be a neutral 3^rd party and no influence is to be applied by the lender.

And second: An appraisal is an opinion. Granted, it requires a strict process and is an educated opinion. Nonetheless it’s entirely possible that one appraiser’s conclusion can differ from another’s. Having said that, it is my experience that most appraisals are very much in the ball park. Not insignificant here is the word “most”. I have, on rare occasion, run into an appraisal that’s just gone jaw-droppingly awry. (my spell check tells me that jaw-droppingly is not a word however appropriate)

Appraisals cover much more than just value. The state of the current real estate market is included. Location, neighborhood, surrounding properties and their influence on the subject are all taken into consideration. A property’s condition is heavily assessed and often, needed repairs are sited. If you are financing the home, this list of repairs is crucial. Required repairs will need to be addressed and occasionally, casual concerns will be examined by mortgage Underwriters.

So here’s what started this whole thing. What are the most common issues we see in appraisals?

-          Water and electricity being shut off. A frequent problem in bank-owned properties. It can not be confirmed that plumbing, electrical, heating and cooling systems are in working order.

-          In homes serviced by gas, pilot lights need to be lit.

-          Pools must be filled and functioning. Also usually a complication with bank-owned homes.

-          Evidence of wood destroying insects.

-          Missing roof shingles, tiles, or flashing. Signs of roof leaks.

-          Inadequate grading and drainage around foundation.

-          No access to attic.

-          Lead based paint. Homes prior to 1978 can not have peeling paint.

-          Exposed electrical wiring.

You might consider discussing these or other issues revealed in the home inspection, with your realtor and lender prior to ordering the appraisal.

If you have additional concerns about the mortgage process, please don’t hesitate to ask. There’s never an obligation, only information.

Living in an Alternate World

I set out early this morning with the well-meaning intention of making life easier for first-time home buyers then… BAM …it hit me that nearly anyone who hasn’t purchased a home in the past 2 or 3 years is going to experience some major market shock. Just incase you’ve been in a coma, the real estate and mortgage industries have done a complete 180 since the height of our country’s financial bubble. If there were an alternate universe for the American home buyer this would be it.

Quickly… a valuable history lesson. In the early to mid 2000’s there existed, among other choices: “piggyback” loans designed to eliminate mortgage insurance by combining a first and second mortgage, often equaling 100% financing,  “interest-only” payment options (pretty self explanatory), “no doc” and “stated income” loans that allowed you to bypass any proof that you even had an income at all. And then we have the real estate market itself. It was not uncommon for there to be 2, 3, 10 offers on a property that you were interested in. You may have had to submit a dozen or more offers before one was accepted. You see where I’m going with this? Enter: the recession.

In our (current) alternate universe, the theoretical possibility of owning a home is at a generational high. In some cases home prices have slipped to half, or even 2/3 in many locations, and interest rates are remarkably low. It would appear to be a veritable smorgasbord for the first-time buyer. However far fewer people now qualify for a mortgage. Credit scores are trashed, incomes have been reduced, appraisals are conservative to say the least, and as if on a bungee cord banking and federal regulations are now... dare I say… over the top.

Here are a few questions to consider that may trip you up when applying for a mortgage. I ask you these things not in discouragement, but simply so that you'll be prepared

- Have you ever made a rent payment late?

- Do you have unidentified cash deposits in your bank accounts?

- Is your work history continuous, in the same industry, and at least 2 years long?

- Do you have sufficient funds to close? Do you know how much you’ll need?

- How closely can you estimate your credit score? Do you even have a credit score?

   Are you married and if so what is your spouse’s credit score?

- Do your tax returns match your W2s or 1099s? How much do you write off each year?

These are not just questions for the first time buyer, everyone, without exception must provide this information and more. None of these are insurmountable issues but times are changing! And the sign of these times is CAUTION.

As always, if you have a mortgage question, call or e-mail me, I have a mortgage answer!

Don't do ANYTHING out of the ordinary!

I am certain this will end well. But a note of caution can never be bad, right?

There are so many things that can go awry in the short 30 days that it takes to close a mortgage loan. We've all become fairly adept at predicting the signs of inertia and heading them off at the pass. But occasionally one or more parties to the transaction will throw a totally perplexing wrench in the works and we're forced to get a little creative. Don't get me wrong, we're more than capable of being creative, it's just that these things should be avoidable. We caution our borrowers, we caution the agents, and we caution again just to be sure they heard us... and yet here we are.

You have to know that when you’re borrowing money to buy a home, there are a few things (more than a few I’ll admit) that you need to do; provide proof of employment, adequate collateral (appraisal of the property), enough liquid cash to cover all of the provisions in your contract and all of the associated fees. What people seem to forget is the short list of things they should NOT do! These are the ones that seem to get us in trouble. These are the things everyone should be aware of while their mortgage is being approved:

-          DO NOT quit your job. Now, you’d think this would be a no-brainer but it would appear that it just doesn’t occur to some people, so Don’t Do It!! Do Not Quit Your Job. Your income is the foundation on which your entire approval rests.

-          DO NOT make any major purchases. This situation is a little more subtle so I’ll explain. When you’re being approved for a mortgage, all of your debt is taken into consideration. Every time credit card balances go up, or account balances go down by any substantial amount, not only does your ability need to be reassessed, but you may exceed allowable ratios (the delicate relationship of debt to income).

-          DO NOT make any payments late. Again this should be obvious. A late payment of any kind is a huge red flag indicating that you may not be a reliable borrower.

I say this stuff all the time, to every client, at every application;  If you’re thinking about buying a car or a house full of furniture, if you’re determined to switch jobs or fire your boss, if you’re unhappy with your credit card company or you disagree with the yearly fee on your checking account, WAIT 30 DAYS! That’s it, just 30 days. You’ve probably already waited a lot longer that that so just don’t do it now, wait 30 days. Once your mortgage has closed… have at it! (with caution of course)
Suffice to say that one of these things happened today. We will fix it and all will be ok. A year from now everyone will forget that it happened, but for today I feel the need to reissue this admonishment: if it’s on the DO NOT DO list, don’t do it.

Changes in HARP & HAFA are the HOT topic !!

It seems like a relatively small thing, but it would appear that everyone is talking about recent adjustments to the HARP & HAFA programs, and I mean everyone. The subject has caught on with the American public and they’re not letting it go! An obvious explanation would be concern over hundreds of thousands of upsidedown mortgages and their residual effect on almost everyone else’s home values. But I think it goes much deeper than that.

For those of you who have been living in a cave for the past 2 ½ years, HARP AND HAFA, are part of the current administration’s Making Home Affordable program, which was implemented in February of 2009. The premise is to provide homeowners with alternatives to foreclosure through refinance, short sale or deed-in-lieu. Until now this program has received less than stellar reviews. But the most recent updates will possibly (possibly being the operative word) give this program the jump-start it has lacked so far.

NOTE: contrary to popular opinion the enhancements to HARP and HAFA have not taken effect yet. In fact they have not even been finalized and are not scheduled to be for several weeks, with an implementation date months out.

The proposed modifications should help underwater homeowners refinance at today’s low rates by lifting the 125% loan-to-value restraint… this is HUGE! Proposed changes also void the requirement of a new appraisal in favor of automated estimates, and eliminate several risk-based fees.

Now here’s where I believe the overwhelming interest in these adjustments is coming from. For the very first time since 2009, “reality” is being addressed. Previous guidelines seemed to assume that the real estate and job markets were not going to get worse, and that the only homeowners needing assistance would be those who were already behind in their payments. At a time when virtually every economist predicted several years of negative growth in our economy, and more to the point in our real estate market, HARP materialized as nothing more than a symbolic gesture. Unfortunately the economists were right and the symbolism of HARP only infuriated us all.

I’m going to choose to be optimistic about these impending developments with HARP & HAFA. They’re far from revolutionary but definitely a step in the right direction.

.. and now for the good news

Incase you hadn't noticed, I'm all about the good news. There are plenty of media outlets for the bad, the sad, the disturbing, and the depressing. I like to be the one who brings you the positive stuff. It doesn't always have to be about financing or the economy, although those are really popular subjects here. I love good news of any kind, and I found a ton of it today!

Did you know:

- The rate of Heart Disease in the US has been falling since 2006. According the U.S. Centers for Disease Control, the decrease is due largely to education, better treatments for high blood pressure and cholesterol, and a decline in smoking.

- Home Builder confidence is up. Last month showed a positive reaction in the home buying/building market that hasn't been seen for over a year.

- Paraplegic Skier is able to walk again. An amazing device the size of an ipod, is allowing people with multiple sclerosis, cerebral palsy and traumatic brain injuries, restored mobility through electrical impulses sent to the nerves.

- US Troops to receive care packages. In the relatively small city of Prescott Arizona, Realtors are assembling 1000 care packages to send to our troops overseas by Christmas. A quote in The Daily Courier states that Arizona Army National Guard Sgt. Douglas Rowe said "When you're deployed overseas you look forward to receiving a package from your family, but receiving one sent from someone you don't know is 'really neat".

- No more Cell Phone bill bombshells. This may not sound like much to most folks, but for anyone who is a parent this is a drug-free sleep aid. Under the threat of new regulations, cell phone providers have agreed to send free alerts to customers who are about to exceed their monthly voice, text or data limits. Whoo Hoo!!

- States and servicers are considering aid to underwater homeowners. Ok, I had to throw in a little financing info. Like the return of the Swallows to Capistrano, I am helplessly drawn to financing knowledge. At any rate, there is a report on DSNews.com indicating that ongoing negotiations between state attorneys general and mortgage servicers aim to improve refinance options for underwater homeowners.

- And one wondrous product! Every guy should know about this... the ultimate condiment, a MUST for every cookout. Have you heard about Baconaise?? The perfect blend of mayonnaise and bacon flavors. Awesome!!

I initially thought about apologizing for the length of today's blog, but I decided that you can't ever have too much good news. Go out there and have a GREAT day. Tell everyone you meet to have a GREAT day, smile when you say it, and be sure to come back and visit us again  =)

Social Security changes numbering rules

On June 1, 2011, the Social Security Administration started issuing new numbers randomly instead of geographically. They say the new method should help to reduce identity theft.

 

Social Security will now issue numbers with a 7 or 8 in position 1. Previously, these numbers were reserved for people in the Railroad Retirement system and people from outside the country. The following rules will continue as before:

 

-No SSNs will be issued with the numbers "666" in the first or third part of the number.

-No SSNs will be issued with the number "00" in the middle.

 

-No SSNs will be issued with the number "0000" as the last section of the number.

-No SSN will be assigned with the number 123-45-6789.

Low Rates Have Caused a Huge Increase in Mortgage Applications

I knew this was coming, everyone had to know this was coming, and I was appropriately prepared for it. That’s not to say we don’t need to really hustle around here, only that it’s a smooth, organized hustle. During the past week I’ve been sitting under a waterfall of new mortgage applications. Lots of people are refinancing of course, but I’m seeing many, many more home purchases as well. These are SMART PEOPLE!! In the midst of so much gray news about our country’s economy and the real estate market, mortgage rates are one enormously conspicuous bright light. I can’t imagine that it will burn this bright for very long.

The Fed is doing the right thing, and it doesn’t surprise me in the least that it is working. What does surprise me is the length of time it took people to realize that they should be doing this. Rates have been awesome for a while now.

There is absolutely no predicting what will happen next. My advice is “get in while you can” so you don't have regrets later.   

Lower Limits on Jumbo Loans Not Likely to Have Negative Impact

Article from MREPORT.com

Ahead of lower limits for conforming jumbo loans, nearly assured in October as Congress disagrees even over stopgap spending bills, the Federal Reserve offered a revealing look at the market Friday by releasing a report on the health of the housing market. The consensus: falling limits will likely only nudge the jumbo loan market, not tip it over, as some critics claim.

Culling information from data obtained under the Home Mortgage Disclosure Act, the Fed summed up the state of the housing and mortgage markets by issuing The Mortgage Market in 2010.

The Fed found that the current criteria for a jumbo fences in only 1.3 percent of all loans backed by GSEs Fannie Mae and Freddie Mac. Homeowners with jumbo mortgages qualify for federal insurance if their loans stay under a $729,750 threshold – a benefit that lawmakers extended in order to boost sagging markets at the height of the financial crisis in 2008.

Even so, data uncovered by the central bank revealed that some 2.1 percent of 2010 mortgages, alongside 2.4 percent of refinance loans, would see some pushback from the change once Congress allows the limits to expire.

The Fed noted in the report that it is “difficult to know what options will be available for homeowners no longer eligible under the GSE or Federal Housing Administration programs.”

The report cited HUD analyses documenting about 669 counties with jumbo loans likely to feel pinched once the limits depress. Another study by the Federal Housing Finance Agency fixed the number at 250 counties.

The conforming-jumbo loan issue remains a hot-button topic among lawmakers, policymakers, and industry insiders, who say the limits are likely to fall in October.

In February the Obama administration issued a white paper advocating for an end to the higher limit, which would return the jumbo threshold for federal insurance to $625,500.

More recently, Sen. Richard Shelby (R-Alabama), criticized the role of the government in mortgage markets at a Senate hearing, alleging higher loan limits created “a lot of damage,” according to Dow Jones

Despite sizzling rhetoric, the Fed satisfied advocates for federal stimulus by portraying the homebuyer market as one that would have lost big, along with a number of industry sectors, should Congress have failed to raise the threshold for jumbos.

In absence of higher limits, the national jumbo loan market may not have swelled by 50 percent, alongside 63-percent boosts in the refinance jumbo market, as the financial crisis lessened.
The Fed said that lenders in affected counties may not have been able to service the loans, likely resulting in turned-away homebuyers or loans that never happened.
Not all conclusions from the report favored government activity in the mortgage markets.
The Fed said that the federal homebuyer tax credit, enacted by officials eager for solutions, “likely stimulated homebuying in 2009,” but led to a “sharp falloff in the monthly flow of new home-purchase originations” once their expiration came in 2010.

Speaking to MReport for a past story, Maureen Maitland, VP of indices for Standard & Poor’s, described the credits as “artificial stimulus” responsible for creating a blip in the markets that inadvertently raised consumer confidence and industry expectations.

She faulted the tax credit for leaving market watchers with the impression that the economy has entered a double-dip recession, with home sales plunging last year.
“You need to do more than just throw money at problems,” Maitland said. “Jobs and supply-demand factors need to be in sync.”

Existing home sales jump 19% from last year

Some positive information. By Carrie Bay at DS News.
       Existing Homes Sales Jump 19%

GREAT Option... The Family Opportunity Mortgage!

Did You Know...

There is a little-known mortgage option available called the Family Opportunity Mortgage. The premise here is that parents of college bound or disabled adult children, and adult children of elderly parents, should have the option of assisting their family members in purchasing a home without the added expense of financing the property as an investment.

These two specific borrowers will be allowed to finance a residence for the defined family members using a conventional mortgage, just as though they were purchasing a primary or 2nd home.

Program Benefits

• Available to Parents purchasing a home for college-bound students, and/or disabled adult children.
• Available to Children purchasing a home for elderly parents.
• Unlike a true 2nd home, this residence may be just a short distance from the borrower's primary residence.
• Benefiting party may join the borrower on title, though this is not a requirement.
• Single-Family Homes, Condominiums, Co-Ops, and PUDs are eligible.
• This loan is eligible for buydown rates.
• Transaction types for assisting elderly parents or a disabled child include Purchase and No-Cash-Out Refi. Available transaction type for College Bound Students is purchase only.
• There are some reasonable restrictions. If you would like additional details please give me a call and we can discuss your individual scenario.
   

--  --  --  --  --

Below, I've listed a few other mortgage products and advantages that may not be available through other lenders. Any questions just call or e-mail, I'm available to you 7 days a week.

• Less Than 90-Day Flips
• Extended Locks
• 203K Rehab Loans
• FHMA HomePath
• FHA Low Credit Score
• USDA Rural Home Loan
• 3% Down Conventional
• Foreign Nationals
• VA 0% Down
• 30-Day Guarantee
• Investors are allowed up to 10 financed properties
• We participate in neighborhood stabilization programs

Some Good News for a Change!

Mega Banks Team Up to Give Homes to Vets from the MReport.com

Three of the largest U.S. financial institutions are teaming up to fund a major home giveaway for injured veterans, in collaboration with the Military Warriors Support Foundation (MWSF) JPMorgan Chase & Co., Wells Fargo, and Bank of America Corp. are making donations to provide seven mortgage-free homes to American soldiers hurt in the line of duty in Iraq and Afghanistan.
The banks are partnering with other industry entities to create the housing gift, which is part of the MWSF’s Homes4WoundedHeroes program. The beneficiaries of the

homes were selected through an application process, and those receiving the homes recently found out about their good fortune when the initiative was announced on Sept. 13. Along with the house, those chosen for the project will gain three years of family and financial counseling.
Other companies supporting the home giveaway included The National Firm, Home Depot, and Hudson & Marshall. Homes4WoundedHeroes has previously donated 30 mortgage-free properties, and in addition to the seven given away this week, the organization plans to extend 17 more homes in the near future.
Leroy Sisco, a three-star General and founder and CEO of MWSF, commented on the giveaway, saying, ““The impact these homes can have on their recipients is immeasurable. It’s the most heartwarming thing outside of my family that I’ve ever been involved with.”
The key presentation for recipients took place at the annual Five Star Default Servicing Conference and Expo, and Ed Delgado, Five Star Institute’s CEO, echoed Sisco’s warm thoughts, stating, “It’s a privilege for us to partner with MWSF and the nation’s three largest mortgage servicers to honor seven heroes whose sacrifice for our liberty is immeasurable. We thank Bank of America, JPMorgan Chase, and Wells Fargo for their support of this extraordinary event.”

Does Anyone Know?

It is completely beyond me, why any potential buyer would not be home shopping right now. Rates have never been better and home prices are remarkable almost everywhere. This isn't going to last forever... what do you think people's fears might be?

You Have More Choices Thank You Think!

I'll concede that choices in the mortgage industry have been severely limited for several years. Buyers are amazed that they can no longer obtain a loan with no documentation or without providing proof of income. Admittedly regulatory entities have overreacted a bit, but for the most part these new guidelines protect us all. Home buyers however are not seeing things in exactly the same light. They're thinking that maybe they’re missing the boat. Interest rates are at an historical low and home prices are fantastic right now. Are their no mortgages available other than the standard FHA and Conventional? You need to know that you do still have options. I've listed a few below but there are many more if you do your research. I'm always happy to answer your questions, my expertise is in the Arizona mortgage industry.

USDA - 0% Down
          For home purchase in rural areas. The allowable area is shrinking so you'll want to check into this loan as soon as possible.

3% Down Conventional
          Did you know that you can get a conventional loan for as little as 3% down? If you have additional available funds try 5 or 10% down.

VA - 0% Down
          VA loans are often overlooked. You do not have to be active military, just a veteran of any branch of the service.

FHA Low Credit Score
          It is not widely known that you can obtain an FHA mortgage with a credit score as low as 580.

203K Re-Hab
          A fantastic option for that less than perfect home that won't qualify for standard financing. You can roll the cost of remodeling right into your mortgage!

Extended Locks
          Thinking about purchasing a short sale or REO property but afraid that rates will jump while your waiting for your offer to be accepted? We have extended locks, up to 6 months, just for these and similar scenarios.

Less than 90-Day Flips
          Please be aware that not every lending institution can finance these. If you've been turned down by another lender give me a call.

Neighborhood Stabilization Programs
          Varied by community, these programs contribute down payment and closing costs to buyers purchasing in designated areas.

Foreign Nationals
          No US credit necessary!

DO NOT be scared off! The truth about the 2012 real estate tax.

Do not be scared off by the flood of inaccurate information floating around about a new real estate sales tax levied in 2012. The truth is yes, there is a new tax and yes it will subsidize health care. However it is not a sales tax, and it will not be applied to every estate sale. The effect is not nearly as wide spread as you might have been led to believe and in fact, most people will not be impacted at all.

The 3.8% assessment is on investment income only. The same $250,000 per person and $500,000 per married couple, that is currently exempt from capital gains, will also be exempt from this tax. That means that a married couple selling their primary residence must realize more than $500,000 in profit, and only the gain ABOVE $500,000 is subject to tax.

And please let me dispell completely, the outright fabrication in alarmist e-mails stating that buyers will be taxed on their real estate purchases. This is NOT TRUE and nothing of the sort is included in the above mentioned tax.

A Heads-Up for Homebuyers

If you're in the market for a home, or in the real estate industry you can't have missed the recent volatility of mortgage interest rates. This prompts me to issue a caution to all homebuyers and their agents.
 If you are comparing mortgage interest rates be very, very careful. Rates are changing at such a rapid pace that the quote you received from a lender yesterday afternoon will almost certainly have changed by this morning.
I suggest when comparing lenders, get all of your rates on the same day. I would even go so far as suggesting that you compare rates from only around the same TIME as they can, and often do, change throughout the day.

What are they thinking??

Condominiums, already regulated to death, are likely to suffer even more. Who’s goal is it to cause the complete implosion of our real estate market… one building at a time? Take a look at this and let me know what YOU think!

Obviously it's time to jump on the Phoenix real estate bandwagon!

As a rule I am a remarkably positive person but I've gotta tell you, it isn't always easy. Where real estate and financing are involved there are plenty of opportunities to be negative, and most media outlets jump right on that bandwagon. That's why I'm so excited when I see even a little glimmer of good news in the media. Today I am grinning ear to ear... this article is GREAT, positive all around, and nothing that rains on my parade. Phoenix Foreclosure Numbers Reveal a City on the Mend

Closing Cost Incentive for Home Buyers!

FNMA is offering a temporary incentive for buyers purchasing a FNMA owned property through their HomePath program. Buyers will receive 3.5 percent toward closing costs for a primary residence with contract dated after April 10, 2011, and closing prior to June 30, 2011.

http://www.homepath.com/incentive/index.html

 

As always, if you have any questions just give me a call .

West Coast Foreclosure Activity Slowed in February

A bit of upbeat news from the foreclosure tracking firm ForeclosureRadar, via dsnews.com. Foreclosure activity slowed across the board in West Coast states.

In Arizona notice of trustee sales  dropped 27.9 percent in February from January. This is the lowest point since August 2009. There was also a large dip in foreclosure sales.

California filings dropped to 2008 levels. On a year-over-year basis filings were down as well, with notice of default filings down 29.6 percent and notice of trustee sales down 17 percent. Foreclosure auctions were down as well, with a 24.5 percent decline in back to bank sales and a 20.3 percent drop in properties sold to third parties.

Nevada filings decreased 25.2 percent from January, also to the lowest rate since the firm began tracking Nevada foreclosures. Notice of trustee sales fell 6.4 percent. Foreclosure auctions fell 48.4 percent and sales to third parties 35.3 percent.

A significant drop was recorded in Oregon, 26.3 percent in notices of default and a 34.5 percent drop in foreclosure sales.

Washingto saw the smallest decrease in notice of trustee sales with a 2.9 percent drop. Foreclosure sales fell as well, with back to bank sales falling 37.4 percent and sales to third parties down 21.1 percent.

I thought you'd like to see this. We can all use a little positive news about the economy but none more than homeowners!

The NFL - Villians or Heros?

This blog has NOTHING to do with mortgages, financing, or even real estate, although these people's finances surely took a hit and it would appear that at least one corporate entity owes them some prime real estate.

How unacceptable was it that the NFL sold tickets for unconfirmed seating at the Super Bowl? This whole debacle was preventable! One man's story is here, and there are at least 400 more just like it. 400!!

If the NFL had not tried to spin this, if only they'd stepped up to the plate (sorry, misplaced sports metaphore) and admitted that they had really screwed up, maybe people would not have been so angry. OK... maybe they still would have been but the rest of us wouldn't have seen it as such a fiasco.

It seems the NFL has now offered seats at the next Super Bowl (probably not PRIME real estate but valuable territory nonetheless) Is this enough? Should these fans be happy? Satisfied? A little annoyed? Or still really ticked off?

Do you believe it was worse than the Great Depression?

Where are we now? In this Reuters peice, Federal Reserve Chairman Ben Bernanke explains some things, leaves other open to debate.

Credit Repair - It's Easy & It's Free!

Of all the things that you can repair yourself, your credit is not only the most important, but maybe the easiest! That’s not to say that it doesn’t take some time and persistence, but it certainly can be done. And improving your credit score will save you thousands of dollars in the long run.

Your score can improve faster than you may think. Here are a few tips for establishing good and countering bad credit.    

• Pay down current debt. (not always necessary to pay off, just work on paying down)
• Make ALL payments in a timely manner. No Late Payments! (this includes but is not limited to rent, utilities, credit cards, car loans)
• Use credit cards very carefully to establish GOOD credit. (only charge what you can pay off at the next billing)
• Think twice before applying for more credit. The simple inquiry itself can lower your score, and If you are declined it will count as a negative on your credit report.
• Work on removing items from your credit report that you feel were reported in error, or that are not yours. Check to be sure any closed accounts reflect "closed”. Contact credit reporting agencies and the creditor directly. The credit reporting agencies can explain the procedure. The creditor can provide the required documentation.

AVOID requesting your credit report from advertised services, there are usually strings attached. Only one credit report is truly free: http://www.annualcreditreport.com/. You are entitled to one free report a year (you can pay for additional reports). It will include information from the three major reporting agencies, Equifax, Experian, and TransUnion.

AVOID credit repair and counseling companies. Some are very expensive, some disreputable. You can usually improve your credit score on your own. It takes a little effort but is worth every minute, and it's free.

Feel free to contact me if you have any questions.

Where do you stand? Very interesting survey!

     Very interesting survey called
     Financial Capability Study,

     compiled by FINRA, and
     regarding our fianacial habits.

     It's organized by state so one click
     will tell you where you stand.  

    FINANCIAL CAPABILITY STUDY