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September 2008 has been a week filled with news in the Gazette about mortgages. Tuesday September 9th, 2008 issue of the Gazette said that in Colorado Springs the "First-Time Home Buyers" programs were being put on hold!
Here is what has happened in the News in the past 30 days you should be aware of:
1.The El Paso County's Single Family Mortgage Bond Prgrom that is used to grant 4% of the loan to be used as down payment and closing costs is currently unavailable. It dried up and you can no longer plan on having that program available. (information from the Gazette)
2.Prior to this, on July 30th ,2008 President Bush signed a major housing bill (H.R. 3221) as part of the housing bill, Congress created a new, temporary tax credit to provide incentive for first-time homebuyers. The $7500 credit will be available for the purchase of a principal residence on or after April 9, 2008 and before July 1, 2009. This $7500 tax credit for first time homebuyers. Where the federal government is allowing first time home buyers to reduce their taxes by $7500 if they are a first time homebuyer. You do not apply for this, you simply claim the credit on the appropriate IRS Form. Repayment of the credits claimed on the 2008 tax returns will fo into effect for the 2010 tax year. (information from the National Association of Reators Government Affairs Update)
3. Then the Gazette again reported on steps being taken to reestablish the mortgage industry stating that bororowers with lower credit scores or those on pricey houses ill continue to find it difficult to get financing. But overall mortgage rates in Colorado Springs are falling because of the Federal governemnt takeover of Freddie Mac and Fannie Mae. This take over could cause a slight ease in the lending standards and should prove to be a good sign and help in recovering of the economy.
Then today....Merill Lynch is in crisis and Lehman Bros is filing bankruptcy. The drama will certainly continue...
Despite all this, you live in a beautiful home and as long as you are working on improving your credit and financial situation you will benefit from the changes that are coming!
You just keep getting more and more great easy to use information.
Now more than ever it is vitally important to read these newsletter and make the changes that are necessary to improve your credit
Each month you will learn a ton of information by reading and attending your monthly classes. Then as the months go by you will see your habits change, your credit scores improve and your financial future brighten.
You can always go online to our website. I have articles for you to access all the information from the previous months. Just click onto the the articles and forms on EZQUalDreamHomes.com website. There you can access previous newsletters and articles and tools that will help you improve your credit. You are now well aware of what a FICO score is and why it is so important. We have reviewed the 5 most important factors that are considered in the credit score formulas are:
1. Your payment history 2. The amount of money that you owe 3. The length of time you have had credit 4. The type of credit that you have 5. How many credit Inquires
Here are some important tips that our tenant buyers learn in class but that anyone looking to get a mortgage needs to be aware. Many people get very close to getting financed for a home, if you make a few mistakes you may be unable to get approved.
This information is for everyone to keep in mind throughout this entire process. Your goal in these 24 months is to get a mortgage. When you are going through all the hoops, you need to keep in mind that you have to curb your spending, don't give your personal information to anyone....don not apply for new credit....and always ask your financial specialist what they recommend.
Good Credit is Critical when obtaining the best mortgage rates. When you are working on getting a mortgage there are some things you want to avoid and other things you want to do... Your Top 10 Do's and Don'ts During the Loan Process 1. Do not Apply for New Credit- unless your mortgage specilaist requires you to do so you want to avoid applying for ANY new credit. Every time you apply for credit your credit scores are pulled by potential creditors or lenders and you lose points on your score immediately. 2. Don't Pay Off Collections or "Charge Offs" talk with your mortgage specilaist first. It is best to do it through escrow and request a letter of deletion. This is if you are close to closing. 3. Don't Close Credit Card Accounts- if you close a credit card account it may change your debt ration percentages and if it is an established card your credit history may be affected and lower your credit score. 4. Don't Max out or Over Charge any credit card accounts. Try to keep your balnaces below 30% of their limit during the loan process and ideally at all times. 5. Don't completely Consolidate Your Debt- when you consolidate all your debt into one or two credit cards it will appear that you maxed out that card and your credit scores will be lowered. 6. Don't Do Anything that will cause a Red Flag to be Raised by the FICO Scoring System- no adding new accounts, no co-signing on a loan and no changing your name or address with the credit bureaus. 7. Do be aware of your credit report and credit score and monitor it regularily. If something comes up not expected you will be able to deal with it immediately 8. Do Stay Current with all Existing Acccounts- like your mortgage, car loan. Any 30 day late payment can cost you points and bring down your scores plus lenders consider you to be a higher risk if you have ANY lates. 9. Do Continue to Use your Credit in a normal fashion. The FICO scoring system is easily triggered when you change your pattern. 10. Do Call Your Finance Specialist as frequently as you need. They will supply you will answers and resources. These tips are pretty general but for those of you very close to getting your mortgage finalized...you do not want to do anything that stops you from getting your mortgage. Rates are very good right now and with the first time homebuyers tax credit, there are many advantages to getting financed sooner than later. Having one 30day late payment in the past 12 months can add another year onto your wait. It is imperative you pay your bills on time Offered to you by Lori Jake
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