Archive for April, 2008
Before you take out a home loan or make any major purchase, you should be aware that any prospective lender will want to take a look at your credit report. Your credit report is a record of all of your past financial dealings, and any loans, credit cards, judgements, bankruptcies or other major financial transactions are listed there. Along with your credit report will come your credit score, which is a three digit number between 300 and 850 that represents a distillation of all of the above. That score represents your entire financial life, and your ability to obtain financing for any major purchase depends on having a good one. What if you don’t have a good record? Should you go to one of those companies that promise to repair your credit? What you should do is repair it yourself.
The idea of credit repair is a myth. There is no magic solution to fixing problem credit, and any company that promises to do so is only interested in your cash. Your credit report and score are maintained by three separate credit bureaus that keep pretty accurate accounts of all financial dealings done under your Social Security number. There is no way to quickly “fix” a faulty credit report. You can, however, fix it yourself and fix it for free. It just takes time.
The way to repair your credit record is to start paying your bills on time and paying off your debt. More than one third of your credit score is determined by your past ability to pay bills and to pay them on time. Start doing so now. It may take a year or two, but steadily paying your bills without making any late payments goes a long way towards repairing a credit score. Another third of your score is determined by your ratio of debt to available credit. If your credit cards are maxed out, you need to pay off or pay down your balances. It’s tough to obtain a loan when you are already in debt to the gills.
Stop using your credit cards, if possible. Don’t cancel them; just stop using them, particularly if you have a balance to pay off. You want to reduce your debt. Pay cash when you can. And check your credit report for problems. You can obtain a copy for free from the free credit report Website.
Repairing your credit record takes time and discipline. There is no quick solution other than paying your bills, paying them on time, and waiting for the damage to heal. After that, you should be in good shape to obtain your home or car of your dreams.
©Copyright 2005 by Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation and credit counseling information and HomeEquityHelp.net, a site devoted to information on mortgages and home equity loans.
Here is a simple strategy you can use to kill 2 Birds with one stone. Send your child to college and Invest in College town real estate to help pay off the Student Loans.
College Housing can often be expensive, Living in a dorm is not the most favorable living conditions for Most College students. Why not buy a 3 or 4 bedroom home near your child’s college and use the rent generated from the extra bedrooms to help pay for your child’s College Expenses.
You purchase a 4 Bedroom home for $250.000 with a 20% Down Payment leaving you a Mortgage payment of $735. The $735 Payment is based on a 5 Year Mortgage with fixed payments based on a 1.95% Interest rate. The 20% down payment can come from many sources including the equity in your home or your IRA or Keogh accounts (Talk with your tax advisor on the proper way to do this)
You rent each bedroom for $300 a month. Since your child will stay in 1 bedroom you gross $900 a month (More then enough to pay the Mortgage and some or all of the Taxes and Insurance) and your Child lives rent free. You also get the tax benefits that go along with being a real estate investor. Assuming an appreciation rate of 7% at the end of 4 years (when your child graduates) your 250,000 house is now worth $327,000. Your child has lived rent free for 4 years while in college you have netted a profit of $75,000 or a 150% return on your initial $50,000 Down Payment.
About the Author
Mike Makler Offers Financial Services (Mortgages,Life Insurance, Annuity) in Florissant Missouri which is in North St. Louis County Missouri Just Across the Bridge from St. Charles Missouri
Call Mike at 314 398-5547
Visit Mike’s Web Page:
http://ewguru.com/finance
For Missouri Specific Insurance and Loan Questions:
http://ewguru.com/Mo-Finance
Get Mike’s Newsletter Here
http://ewguru.com/fin-news
Copyright © 2005-2006 Mike Makler
Real estate web design requires you to do things a little bit differently because you are selling either your services or actual homes, so there must be several things present on the web page to make it user friendly. Unfortunately, many real estate web sites are poorly designed, ask visitors to supply tons of personal information before being able to view any information, don’t provide enough information not to mention photos, and are all around a pain for many visitors. However, it is important to know how to make your website user friendly because approximately 73% of individuals trying to buy a home use the Internet to help them.
Item #1 – No Frames
Make sure your website is designed well and does not include the use of frames. You want each page to be its own link and accessible through a URL. If you use frames then search engines will have a difficult time returning your page as a result, users will not be able to bookmark it, and on the whole frames just cause annoyance and problems to everyone. Get rid of the frames and use a website that allows individuals to go straight to the real estate listing they are interested in without having to go to all the other information. It will be beneficial to you in the long run.
Item #2 – Detailed Area Information
You must include detailed area information on your real estate website. More than likely you are an expert in one particular area and as a result should relay this information to the people visiting your page. The reason why people are visiting your page is because they are looking for homes in that particular area, and since you are an expert you should provide all the information a prospective homebuyer might need, not just the specs of the home. Potential homebuyers want to know about local shopping, dining, schools, activities, restaurants, interstates, distance to the beach, mountains, or other vacation information. The more detailed the information you provide, the happier your visitor will be and the more likely they will buy from you.
Item #3 – Listing Photos
Listing photos are a must. If someone is online looking for a home, the least you can provide them with is a listing photo. And not just one, but many photos that show the outside from a variety of angles, special architecture or design, the outside surroundings such as gardens and trees, inside rooms, kitchen, bathrooms, and more. Basically everything you can imagine. The easier you make it for the prospective homebuyer, the more likely they will contact you for more information. If you don’t have one already, simply buy a quality digital camera and then adding listing photos to your site will be piece of cake.
Michael Turner reveals step-by-step how you can increase search engine traffic in his free 7 part mini-series. Grab it now at http://www.powertraffictactics.com/
“Use your home’s equity to pay off your debt. It’s easy and simple, no closing costs!” Every time I turn on the television, commercials bombard me telling me to take out a home equity line of credit. People are using their dream homes to pay for even bigger dreams, like a “debt free” lifestyle and college educations for their children. Despite the ease in securing these seemingly beneficial lines of credit, many CPA’s and financial planners are cautioning homeowners to gain a full understanding of how these lending options work before they turn their homes into a source of money.
There are two options in using your equity to secure funding: a home equity loan or a home equity line of credit. Most lenders will let a homeowner borrow up to 80% of existing equity based on the amount owed on the first mortgage and the appreciated value of the home. Unlike other forms of nondeductible consumer debt, loans less than $100,000 or less that use a home as collateral may have a tax deduction available for interest paid.
A home equity loan is most usually used for large purchases, such as financing a major home improvement project, starting a business, purchasing a luxury item or consolidating high-interest credit card debt. There are advantages to securing lending for these purposes, but these types of loans are better suited to those who don’t foresee future borrowing needs.
Home equity loans are basically second mortgages, which provide you with money that is repayable over a fixed term from five to 15 years. These loans can feature locked-in rates and monthly payments that remain the same.
Home equity lines of credit are ideal for use as emergency money. They can be used for irregular or unanticipated expenses like medical deductibles and automobile repairs. These lines are often used by higher income families who don’t qualify for college financial aid to pay for their children’s college educations. When faced with using a home equity line of credit or savings to pay off credit card debt, it is advised to use the savings to pay of the debt and the line of credit for future emergencies.
With home equity lines of credit, you are approved for a certain amount of money, a credit limit. You can borrow any amount of money during the life of your line of credit up to your credit limit. You may be given a check or a debit card that can be used at almost all retailers. Home equity lines of credit are usually variable-rate loans.
Using the equity in your home is not a flip decision. Think about it seriously. If you are doing this to consolidate high-interest rate credit cards, it will only work if you do not accumulate any new debt. If you keep using the cards, you are only digging a further pit of debt.
Your credit card company cannot foreclose on your home, but your home equity loan lender can. You are placing your home at risk with every mortgage placed on it. It is necessary that you shop for the best rates and terms available. Talk to different lenders and be aware of introductory rates. Read all paperwork carefully before you sign it.
Using your home equity can benefit you in many ways, but always display caution. It is still debt
Martin Lukac, California mortgage Lender(http://www.martinlukac.com), provides mortgage financing for purchase,refinance,bad credit and more. Request a free quote or ask a question.