Adam Malachi QSC,CDPE,CIPS,CNE,CRB,CRS,GRI,MRE,SFR

If you Applying for Mortgage Now be very careful?

By June 1, you could face another credit screening before your closing!

Go ahead and give it a read!

If you're thinking about applying for a home mortgage, or refinancing your existing mortgage! Here's some very important news you need to know! Beginning June 1, 2010 your lender is likely to order a second full credit screening report immediately before closing.

The last-minute credit report will be designed to find out whether you have obtained! Or even shopped for new debt, between the date of your loan application and the closing! If you've made applications or applied for credit of any type i.e. for furnishings and appliances for the new house, a car, landscaping, a home equity line, a new credit card, you name it! Your closing could be put on hold pending additional research by the lenders!

If you've actually taken out new loans that are sizable enough to affect the debt-to-income ratio calculations used in your original mortgage approval, the whole deal could fall through. The added debt load could render you ineligible for the mortgage because you suddenly appear unable to handle the payments without a strain on your household budget.

The June 1 changes are part of a new effort by mortgages giant Fannie Mae to cut down on slipshod underwriting by lenders and fraud by borrowers. Fannie's "loan quality initiative" will require lenders not only to pull two credit reports for each mortgage transaction but also to perform additional verifications of borrower occupancy plans for the property, Social Security numbers and Individual Taxpayer Identification Numbers.

"There's an almost irresistible urge" for many mortgage borrowers, first the lender says, 'Okay, you're approved for the loan! And you immediately think about shopping for all the things you need for the home you're buying!

In the past, that might not have raised an eyebrow or even got away with it! But under the new double-check policy, when your application shows up on your credit report as a borrower initiated, inquiry on a credit report, the lender "is going to have to contact" the merchant and determine whether credit was extended, in what amount, and how this might affect the applicant's home financing transaction!

How should homebuyers and existing homeowner refinancing be prepare for the new credit check procedures? Everybody who's interested in purchasing the American dream or refinancing it needs to follow just one basic rule: abstinence from any credit application till the transaction is closed! Which might take between 45 to 60 days more or less!

Therefore you must resist the irresistible temptation. Please don't apply for new credit unless you discuss it in advance with your mortgages/ lenders professional and your realtor and get a green light first before. Poof goes your closing in your face!

In my opinion FHA and VA, Freddie Mac should follow Fannie Mae Lead!

This is just FYI only!

Thanks!

Types of Private Wells Water!

There are three (3) basic types of private drinking wells available in the United State of America!

1, Dug well! Please see the web site at: www.epa.gov/safewater/privatewells/basic_dug.html

2, Drilled well! Please see the web site at: www.epa.gov/safewater/privatewells/basic_drilled.html

3, Driven well! Please see the web site at: www.epa.gov/safewater/privatewells/basic_driven.html

Proper well construction and continued maintenance are keys to the safety of your water supply!

It is important to know the type of well you have as a homeowner!

Please do your due diligence as a Real Estate professional and find out what type of well your sellers have, before you take a listing! By visiting the above (EPA) web sites!

This is just FYI only!

Thanks.

Free Credit FICO Score Law Passed By The U S Senate!

People who are denied credit or a job because of their credit report history may soon be able to get their credit report FICO score free of charge, thanks to an amendment passed by the U S Senate!

The measure, was a part of the massive Wall Street reform bill being debated in the Senate, would expand an existing law that was passed in December 2003, gave consumers the right to one free credit report every year from each of the top three consumer reporting agencies -- Equifax, Experian, and Trans Union.

The credit FICO score, called fair Isaac, has not been made available for free. It is a numerical representation and calculations of the information in a consumer's credit report, which covers a consumer's entire credit report history all debts, payment habits, and jobs held. The credit FICO score is widely used as a shortcut by lenders, to view consumers credit report history, and to approve or disapprove any consumers credit request!

Options for getting a credit report FICO score have been limited to many sites. Some have lured consumers in by offering free credit FICO scores in return for signing up to a credit monitoring service that could cost $14.95 a month more or less, if consumers don't opt out before the end of the trial period. They will be stuck paying the credit monitoring company forever!

This amendment "dramatically increases the number of people getting this critical piece of information," said Jennifer Talhelm, a spokeswoman for Sen. Mark Udall, D-Colorado. who is sponsoring the effort.

A recent survey from the National Foundation for Credit Counseling found that some 65% of adults have not checked their reports in the past year. And nearly one-third of adults don't know their credit report FICO score.

Your credit FICO score is used to determine far more than the cost of borrowing money.

This is just FYI only!

Thanks.

What's in your credit report!

Several studies over many years have repeatedly documented the chronic problem of inaccuracies found in credit reports.United States Public Interest Research Group (USPIRG) U.S. PIRG has conducted at least ten studies between and each time it has found an alarming shocking number of serious errors in consumer credit reports. US PIRG's most recent study revealed the following:

• Twenty-nine percent (29%) of the credit reports contained serious errors -- false delinquencies or accounts that had never did not belonged to the consumer -- that could result in the denial of credit!
• Forty-one percent (41%) of the credit reports contained personal demographic identifying information that was misspelled, long-outdated, belonged to a stranger, or was otherwise incorrect!
• Twenty percent (20%) of the credit reports were missing major credit, loan, mortgage, or other consumer accounts that would demonstrate the positive creditworthiness of the consumer!
• Twenty-six percent (26%) of the credit reports contained credit accounts that had been closed by the consumer but incorrectly remained listed as open!
• Altogether, (70%) of the credit reports contained either serious errors or other mistakes of some kind!

More recent study from the United States Public Interest Research Group (USPIRG) has documented that a staggering 79% of all credit reports do not meet full legal compliance with the law: what that means to you as a consumers! Most negatives reporting on your credit report can be removed from the credit report because of improper filing! But you must dispute it, in order for the credit reporting agencies to remove it from your credit report!

You can get a free credit report at: www.annualcreditreport.com

This is just FYI only!

Good luck,

Renting Vs Buying?

Is it financially better to buy a home or to rent it? It's all depends on the individual and depends upon how much the home costs, how much you are paying for rent, and how much you will have to pay each year in order to maintain your home.

If you were to pay $800.00 per month, for example, and the average rental payment increase was 3.000%, you would pay $50,967.70 in a 5-year period toward rent. If you purchased a home and borrowed $250,000.00 with a 5.000% interest rate fixed for 30 years, and you paid $900.00 every year toward its maintenance, you would pay $110,752.41 in a 5-year period toward mortgage payments!

When you consider your tax benefits and the appreciation of your home, however, you will actually SAVE money by purchasing a home, then renting it. If your home shows an annual appreciation of 3.000% and your selling cost is 7.000%, your house appreciation value will be $347,782.22. As a result, your total home purchase benefit will amount to $38,630.93. To you! On the other hand you will be paying approximately $50,000 for rent with no tax benefits!

This is just FYI!

Thanks.