One aspect to doing loans in Hemet and home loans in California is to understand how credit can affect you. Here is a recently posted article that I included in an email to my customers in Hemet and Van Nuys regarding home loans and credit.
A Quick Recap!
A credit score is a number lenders use to help them decide: If I give this person a loan or credit card, how likely is it that he or she will become 90 days or more late in a 24 month period. A credit score is a snapshot of your credit risk at a particular point in time. It may range from 350 to 850 with the average consumer score being 686. Credit scores are provided to lenders by the three major credit reporting agencies also know as repositories: Equifax, Experian and TransUnion.
|
Five Factors Determining A Credit Score |
1. Late payments.
2. Frequency and patterns of credit use.
3. How long credit has been established.
4. The number of times credit has been requested (inquires).
5. The types of credit (i.e. revolving, installment, secured, unsecured.)
|
How Credit Bureaus Rank your Credit Score |
1. 35% is based on payment history.
A recent 30 day late payment is worse than a 90 day late payment that occurred more than 12 months ago. This can lower your score by 60 points or more.
2. 30% is based on existing balances.
Make sure the balances do not exceed 50% of the maximum limit on each card. Over 50% of the credit card limit will have a significant negative effect on your credit score. Distribute existing credit card debt among three to five cards.
3. 15% is based on how long your credit has been established.
Do not close accounts that have a perfect payment history and have been open for at least three years. These cards have a positive effect on your credit score.
4. 10% is based on types of credit.
A combination of credit types is best. For example, a mortgage, an auto loan and three to five revolving credit cards is ideal. Home equity lines of credit are reported as a credit card debt when the amount is less then $30,000. Try to apply for lines of credit for at least $30,000.
5. 10% is based on inquiries.
Credit inquiries from various industries can lower your credit score up to 60 points. If multiple mortgage inquiries are within a 30-day window, they count as one inquiry in total. This is also true for the auto and insurance Industry inquiries. Personal credit and bank account review inquiries do not count.
|
Tips To Help Protect Your Credit |
1) Be very careful providing personal financial information over the internet. If you are going to provide credit card numbers, social security number, etc over the internet make sure it is through a secure website. Look for https:// instead of http:// at the website address and look for the little yellow padlock on the lower right corner of the screen.
2) Use a paper shredder when discarding any personal credit information such as credit solicitations, credit card statements, pay stubs, invoices, bank statements, etc
3) Keep a list of all credit card accounts with their respective customer service phone numbers in a safe place in the event your wallet or purse is lost or stolen.
4) Never use your full name on personal checks, use your initials instead. For example: J. Doe or J.C. Doe. If your checkbook is lost or stolen, no one will know how to sign your check (except for the bank.)
5) When paying your credit card bill, do not put your full credit card number on the memo line of your personal check. Only list the last 4 digits of your account number.
6) It is not wise nor is it necessary to carry your social security card in your wallet or purse. Commit the number to memory and keep the card at home in a safe place.
7) If your wallet or purse is stolen, contact one of the three credit bureausimmediately and have them issue a fraud alert. That credit bureau will notify the other two. This will be done free of charge and you will receive a credit report showing that the fraud alert has been issued.
Here are the three credit bureaus:
Equifax 800-685-1111 www.equifax.com
Experian 888-EXPERIAN www.experian.com
Trans Union 800-916-8800 www.transunion.com
As always, if you need help or advice, just respond . More to follow!
Many know me as the owner of Symphony Mortgage Company. I was in Van Nuys, California for many years. Most who know me also know that I have been doing loans for 20 years. Some also know that I'm a drummer and that my passsion is music. A few years ago I had the occasion to meet a Realtor from Hemet, California. John Occhi and I met through a mutual relationship with an online realty service. After 4 years of working with John and others in Hemet, I moved in. That is to say that I have moved down to Hemet. It's a beautiful community and the change is awesome.
The question I'm asked most is where is Hemet and finally why Hemet. Well the answer is simple. Business in Hemet is awesome. I also felt that the community really benefits from local service companies. In Los Angeles I was used to constantly using email, fax, delivery and telephone to transact entire deals. I'm sure that my LA business will still be done that way. Down here though, I look forward to having the time and closeness to meet my customers first hand.
I've not posted in awhile. The loan business and the chaos it has created on a business and personal level has been a challenge. However I am back and in a big way. Security National is a great company. We specialize in FHA. We are a direct lender and we are not a bank! Like all there have been challenges with determining The Government's role in our business and the ever changing underwriting guidelines that cost time and effort. However, the market has picked up and the lenders, including us, have stabalized rules and guidelines. For now we are enjoying speedy underwriting times and great rates.
With John Occhi's help I was able to secure a nice home here and was introduced to a great bunch of people at a network lunch organization. They are responsible for my growth and even my son's. He owns a video production company called Another Happy Ending Productions and he's found that Hemet has been welcoming to him too. So when my friends say Hemet, Hemet? I say come on down and check us out. There's a lot to do and you won't be ignored like you are in the big city.
Happy Thanksgiving from Sylmar, Van Nuys, The San Fernando Valley and the State of California. We are still lending, home loans, loan modifications, mortgages in Sylmar, Van Nuys, The San Fernando Valley and the State of California.
Well this has been an interesting year to say the least. I have been watching the Government reaction to the credit squeeze and I just can't understand why we just keep giving big bucks to the corporate structure. It seems like the correct action to take but I wonder if they might go a different way.
I mention this because I've spent most of the last few months realigning myself to work hard for REO business. I understand the business and I am exclusively working with Realtors that sell and list REOs. The grapevine says that we are about to have a big slowdown. Basically the banks are not foreclosing due to the fact that FNMA and FMAC have decided on a moratorium until January 9, 2009. It takes about 3 weeks or so from a bank getting a property to the property getting on to the market. With no new activity we can expect a cleaning of the pipeline and then we hold.
So, what might help? I hate the idea but we really need the economy to get out from under the housing collapse. I believe that all can be healed if housing prices will stabilize and increase. Just this year I have worked in an area where the average month depreciation is around 3%. That's monthly not annually. I think the Gov. should stop bailing out the guys that bought the secondary market paper. I think if the tax payers are paying for it that we should go direct to the source. Bail out the individual homeowner.
Guess what, we made mistakes. Some people got loans they should not have. Some of it was created by the brokers, some by the lenders, much by the greedy homeowner who bit off more that they can chew. Whatever the reason, it no longer matters. The theory is simple. Line up all borrowers and modify all the loans. Many people suggest that there would be no incentive for those that are paying to pay. Well there is not now. I know several people that have made a conscious choice to not pay so that they can get a modification. What if we modify all the notes to current value and set a base rate? It hurts but only once and the dollar loss is spread across all instead of the tax payers giving it to the bank and trying to regulate what they do with it.
In the end I believe that the market would be stabalized. Some will still not make it. That's ok. We can use the traditional foreclosure method and keep moving. Thousands will get relief and we can say that the bottom is here. So far we have spent over a Trillion in bail out and as far as I know none have really gotten relief. The new rules are hard to qualify for even if the bank is willing to modify. Lets just take it right to the people. It's radical and I firmly believe it's coming.
Happy Thanksgiving from Sylmar, Van Nuys, The San Fernando Valley and the State of California. We are still lending, home loans, loan modifications, mortgages in Sylmar, Van Nuys, The San Fernando Valley and the State of California.
Well this has been an interesting year to say the least. I have been watching the Government reaction to the credit squeeze and I just can't understand why we just keep giving big bucks to the corporate structure. It seems like the correct action to take but I wonder if they might go a different way.
I mention this because I've spent most of the last few months realigning myself to work hard for REO business. I understand the business and I am exclusively working with Realtors that sell and list REOs. The grapevine says that we are about to have a big slowdown. Basically the banks are not foreclosing due to the fact that FNMA and FMAC have decided on a moratorium until January 9, 2009. It takes about 3 weeks or so from a bank getting a property to the property getting on to the market. With no new activity we can expect a cleaning of the pipeline and then we hold.
So, what might help? I hate the idea but we really need the economy to get out from under the housing collapse. I believe that all can be healed if housing prices will stabilize and increase. Just this year I have worked in an area where the average month depreciation is around 3%. That's monthly not annually. I think the Gov. should stop bailing out the guys that bought the secondary market paper. I think if the tax payers are paying for it that we should go direct to the source. Bail out the individual homeowner.
Guess what, we made mistakes. Some people got loans they should not have. Some of it was created by the brokers, some by the lenders, much by the greedy homeowner who bit off more that they can chew. Whatever the reason, it no longer matters. The theory is simple. Line up all borrowers and modify all the loans. Many people suggest that there would be no incentive for those that are paying to pay. Well there is not now. I know several people that have made a conscious choice to not pay so that they can get a modification. What if we modify all the notes to current value and set a base rate? It hurts but only once and the dollar loss is spread across all instead of the tax payers giving it to the bank and trying to regulate what they do with it.
In the end I believe that the market would be stabalized. Some will still not make it. That's ok. We can use the traditional foreclosure method and keep moving. Thousands will get relief and we can say that the bottom is here. So far we have spent over a Trillion in bail out and as far as I know none have really gotten relief. The new rules are hard to qualify for even if the bank is willing to modify. Lets just take it right to the people. It's radical and I firmly believe it's coming.
RSVP and Attend! (818) 367-1177
Sylmar Chamber of Commerce
LUNCHEON
Monday, March 17, 2008, 11:30 a.m.
Los Angeles Mission College
13356 Eldridge Ave., Sylmar
(Instructional Bldg., Room 1007)
The Sylmar Chamber invites you and your guests to attend our upcoming Chamber Luncheon on Monday, March 17, 11:30 a.m. at Los Angeles Mission College, 13356 Eldridge Ave., in the Instructional Building near the clock tower, Room 1007, in Sylmar. The luncheon will feature Los Angeles City Councilmember Richard Alarcón as a speaker. Student chefs will provide a choice of two entrees and dessert to attendees. Tickets are $18.00 for members and $25.00 for non-members. Please RSVP at (818) 367-1177 between 10 a.m. and 3 p.m. before today, March 14, as space is very limited for this venue.
The Sylmar Chamber invites you and your guests to attend our upcoming Chamber Networking Breakfast on Thursday, April 3, 7:30 a.m. at Denny's Restaurant, 13201 Gladstone Ave., between Hubbard St. and I-210, in Sylmar. This is a great opportunity for you to meet and network with local entrepreneurs, non-profits and business leaders if unable to attend our mixers or luncheons. If you need time before the workday, our breakfast is perfect for you! Tickets are $12.00 for members and $15.00 for non-members with a reservation, $17.00 and $20.00 without. Food and drinks will be provided. To RSVP, please call the office at (818) 367-1177 between 10 a.m. and 3 p.m.
Take advantage of these two events to make your business or non-profit known throughout Sylmar. We encourage you to bring a friend! Don't forget to bring your business cards!
Sincerely,
John Severino
Symphony Mortgage Company
We are here to help. I have been exclusively in the mortgage business for 20 years. We help California mortgage loans to close.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved
