Myrtle Beach Real Estate by Mirela

I wanted to continue with the Top Three Myths in the Top Ten seriesthat I will be blogging about to inform both customers and my colleagues about to help dispel some of the myths about credit. Improving and making the best of your credit rating has become increasingly important with the tighter lending standards. Don't let these obstacles get in the way of a home purchase!

Myth # 3 - There are items such as bankruptcies, foreclosures, and tax liens that are impossible to remove from the credit report.

There is no type of negative listing that has not been removed from a credit report - thousands of times.

Myth # 2 - If a negative item is successfully deleted from my credit report, it will just come right back on my report.

The credit bureaus have cleverly spread this myth through the news media and government agencies. In truth, the credit bureaus will often temporarily delete a negative listing if they have not heard from the credit grantor for 30 days since an item has been disputed. Should the credit grantor submit verification a week or two later, it will be re-inserted. (This is called a soft delete.) Most of the time the creditor simply fails to respond and the negative item is permanently deleted. If the creditor verifies the item the account may still be deleted later in the process as the challenging process is intensified.

Myth # 1 - When I pay off a past-due account, such as a charge off or a collection account, it will show "paid" and no longer be negative.

It is difficult to fully restore your credit without paying your outstanding debts. However, paying off a debt can actually hurt your credit. Negative items on your credit report are allowed to stay on your credit report for a maximum of seven (7) years, except for bankruptcy that can stay for up to ten (10) years. This 7 or 10-year clock begins ticking at the date of last activity. Making a payment represents new activity and restarts the clock. When paying an outstanding debt, you will change the account status to paid collection, paid charge-off, satisfied judgment, or paid ‘was x days late". This is still considered very negative and appears as though you had to be strong-armed by the credit bureau to pay the account. It is almost always prudent to have a professional help so as to not further damage your credit by trying to do the right thing.

Garren Grup, REALTOR

Delivering Homes & valuable Information with Noteworthy Results in Naples, Bonita Springs & Estero Florida!

How do you create a lead sheet, a contact form, a questionnaire, a call to action in your post?  Google Docs allows you to not only create private forms, spreadsheets, and presentations, now you can embed them into your Website or Blog.  You also have the choice to share those forms and docs with others.  You can even invite others to view or collaborate on your work.  This could be a great tool, it has the potential to take your readers from being a viewer to being a potential lead.  Here's a sample of one I did creating a suggestion box.

First, you will need a Gmail Account.  It's FREE, and this doesn't mean you have to change or even use this email address, it's just your log-in for everything Google.  (Highly Recommended even if you don't use Google Docs) Go to Google and log-in or Sign up for Gmail.

Once you have your account setup, go to Google Docs to create your forms, documents, spreadsheets and presentations on-line. You can also upload your existing creations from your computer.  If you'd like, Take a tour of Google Docs before you begin. There are 100's of Templates already created for you to choose from, or you can create your own. There's even a Help Center for those needing a little assistance and support.

To create your own lead sheet or contact form, go to Google Docs

1. SELECT NEW, THEN SELECT FORM:

2. Give your Form a title, include some supporting text (optional), Label your field or question, add field supporting text (optional), select question type and format for responses, put a check in the box to make field required or not, then click DONE.  Add additional questions by clicking on the "Add Question" button at the top.  Don't worry about the order of your questions and fields, you can "drag and drop" them and sort them later.  Repeat this process for each field or question.

3. Once your form is complete and you are satisfied, click "SAVE" in the upper right hand corner. 

Now you have some options available that can make your form a valuable tool that you can share.

You can send your form to clients and prospects via email, you can also view your responses here. Next, use the "More Actions" button to A) Create and Edit an automatic response form, and B) to "EMBED YOUR FORM INTO YOUR WEBSITE OR BLOG POST."  This is one of Google Docs best features in my opinion.

4. Click on "MORE ACTIONS" to get your code.

5. Once you place the embed code into the proper location on your Website or Blog, you're set to go:

6. To view your responses and new leads, just go to your Google Docs, and open the form.  All your results will be right there for you to follow up with.  How cool is this?

 

Note: Any updates or edits made to your original forms, documents and presentations on Google Docs are automatically updated in all the locations you have placed them on the Web. There's no need to go back and replace the HTML code on your Websites or Blogs, so place it in as many locations as you'd like.

Now you just have to be creative and decide how you want to use a tool like this.  Decide what questions or fields of information you need to make this a powerful tool for your on-line business and customers. 

TIP:  Don't go overboard with questions, people get overwhelmed easily in many cases, and won't take the time to fill it out if there are too many.  I hope this is easy enough for you to use and to understand.  As always, thanks for reading and taking time to visit.  It's always nice to have you swing by and say hi.

Google Docs in "Plain English" Video

RELATED ARTICLES & LINKS:
Take A Google Docs Tour
New Features in Google Docs
Google Docs Hottest Templates

How fast your loan closes is often up to you.

I tell folks two things these days and both can result in great opportunity. There is an abundance of inventory (houses) in most markets and the money (interest rates) is still cheap. That said, Lenders & Banks are combing through files with a fine toothed comb these days; everything has to be pretty much perfect. No more of the days of throwing things against the wall, lax & scattered documentation, or loan files that are missing this or that or that other thing they are asking for, other than that blood sample;-)

So, if you aren't informed... it's time to become such. You, the consumer, have more power than you think in your mortgage loan closing sooner rather that later. Create a file, whether you are a renter or current homeowner, of the things I will mention below. When the time comes to buy a home or refinance the one you are already live in, it will make your life that much easier. If you are looking to refinance, only a few things from the first few lines apply to you...

* Last 2 years W-2's and 2 most recent pay-stubs

* If you are a renter, have your Landlord's name, address, and phone number handy. Make sure you have that info for the last 2 years of your rental history.

* Make sure, if you are renting, to pay your rent by check. Keep copies of your last 12-24 months of cancelled rent checks. This gives you a documented housing history, that's HUGE in the Lender's Financial Eyes.

* When you find that home of your dreams, or at least the one that will be your starter home, a signed sales agreement from all parties (buyer and seller) will be needed.

* Typically, the only money out of a pocket prior to closing is for the appraisal. It is a third party fee, paid directly to the professional who will do a market evaluation of the worth of your home.

* Last 2 Months Bank Statements (All Pages) & the most recent statements on all asset accounts (401K, IRA, Mutual Funds, Retirement, Etc.)

* If you are Self-employed, you'll need the last two years tax returns with all schedules and attachements... along with a year-to-date Profit & Loss for your business.

* For purposes of identification, you'll need copies of your social security card and photo I.D. (typically your Driver's License)

* If you are refinancing, you'll need many of the things above... but will also need your most recent mortgage statement & homeowner's insurance deck page (which is the top page of your homeowner's insurance). It's also a good idea to get copies of your most recent statements on all other accounts you want to pay off... assuming you want to consolidate high interest debt.

* If you own more than one property, you'll need the most recent Mortgage Statement, Homeowner's Insurance Deck Page, & copy of any leases you have on rentals.

* Any credit issues (late payments, bankruptcies, judgements, etc) must be addressed in a very detailed credit explanation letter and appropriate supporting documentation, if applicable.

* If you aren't currently escrowing your taxes, you will need copies of paid/unpaid tax bills.

* Retirement/Social Security award letters if you are receiving that type of income.

This isn't an extensive list, but it will give you one heck of good start. You have more control than you think, if you don't believe me... I cite a legendary cartoon... G.I. Joe. "Knowing is half the battle."

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To say your credit history & score is HUGE these days may be a borderline understatement.  For purposes of my experience, I'll concentrate on how credit relates to getting a mortgage to buy a home or trying to refinance the one you currently own.

Talking about credit is about as much fun as chewing broken glass while watching Yanni's latest video on VH1, at least to most.  Even for the most severe masochists or staunchest Yanni advocators, it's probably not a subject full of brim excitement.

So, I'll try to make this concise and simple.  Educating yourself and working with professionals who can guide you along the way, to make sure your credit is worthy of a three course meal at the White House, is crucial.  I'm not just talking about those whose credit is in the crapper.  I'm also writing to folks whose credit may be moderate or maybe you've never made a late payment in your life but your score is low.  The Credit Reporting Industry is wagging the dog, forget about whining... work and know the system.

Here are a few tips & quips:

* Get a copy of your Credit Report.  It may not provide your actual credit score, but at least you can verify the accuracy of the information on your report.  I've included information below that you can utilize to do this.  Quick thing here, credit modules differ within industries.  For example, the credit report a mortgage company pulls may differ from that of the institution giving you a car loan or credit card.  Mortgage folks weigh heavy on student loans and car loans and even heavier on your Mortgage History, provided you have one. 

* Communication is key with your credit.  If you are experiencing rough financial times, call them before they WILL call you.  Let your creditors know what is going on.  It probably won't stop them from reporting you late to the credit agencies, but it probably will provide you one less of a headache.  That's what life's all about... avoiding headaches:-)

* The only thing that may be just as bad or even worse than credit overload, is no credit at all.  Establish yourself in the creditor's eyes.  If you have no credit, get secured credit that reports to all three credit reporting agencies.  This may mean making a deposit at your bank and taking out a loan against it or pre-paying on a credit card.  If you are doing the latter, use that credit card and pay it off it off regularly.

...if you have a bankruptcy or foreclosure in your past, establishing 12-24 months worth of a good credit is absolutely crucial!

* Oh, those credit cards.  I'll put it bluntly, the bigger the differential between what your current balance is and what your available balance is, the better for your Credit Score.  Don't be afraid to call your credit card company and ask them to raise your available balance.  Don't use it, just have it there to improve your credit standing and score.

...sidenote on credit cards.  Don't be afraid to call your current credit holders and ask them to lower your interest rate.  If the first person you talk to can't or won't, ask to speak with a manager.  If unsuccessful in that endeavor, call back at a later date.  Be persistent & professional in your efforts.  Lowering your rate even the slightest bit can save you some serious money now and down the road.

* Pay your bills on time.  Yeah, I know, this is a no-brainer to most.  Yet, it doesn't report late to the credit bureaus until you fall 30 days late.  Try to make sure you don't get 30 days late on anything.  Sure, you may incur late fees if you are even a day behind on some credit, though Mortgage Companies typically give you a 15-day grace period before you incur any late fees.  From my experience, make sure your mortgage/rent is paid on time first, then student & car loans, then credit cards.  If you are a renter...

...pay your rent by check and keep copies of your canceled checks.  Twelve months worth will do (pay month by month, pre-paid bulk payments won't do you any favors...create a consistent history).  This establishes a housing history.  While it doesn't do anything positive for your credit, it does wonders when you apply to buy a home.

* Settle delinquent accounts for pennies on the dollar.  If you owe the International Bank of Jason Sardi a cool $5,000.00 and your account is charged off, you should call to arrange a settlement once it goes to collections.  Often times, you can come to an agreement for a lump sum of $2,500.00 or less and you may even be able to work out a payment plan.  Either case, make sure you pay that account satisfactory and get the paperwork of the agreement and the final pay-off to prove it.  Paying off delinquent accounts will probably drop your score at first, but will do wonders for your score down the road (provided you keep paying everything else on time).

* Avoid 'Hard' Inquiries.  Your current creditors may check your credit, but that is considered a 'Soft' inquiry and shouldn't affect your credit score.  Yet, if you are applying for credit out the behind, those inquiries can adversely affect your score.  It raises the red flag that you may be on your way to becoming credit dependent.  Psychologically speaking, never give them that drift, make them know that their livelihood depends on you... not the other way around.

* Credit Restoration Companies may be able to help but avoid anything that says, "Consumer Credit Counseling."  CCS is considered a form of bankruptcy in many lenders eyes and their ability to pay your debts at a 'consolidated interest rate & lower payment' is suspect and often times worsens the situation.  On the other hand, I've only witnessed one Credit Restoration Company worth its weight in the seven years I've been traveling this gig.  There may be and probably are more, but I've only witnessed one.  If you want more info, contact me.  Always remember though, you can do everything to make sure your credit is at it's best, yourself... it's a matter of being educated and persistence in your efforts.  That takes time.  Though time is a commodity not all of us have.

Below is info on the reporting agencies that you should contact to get started.  Even if you have an above average credit score, you'll pay more than you should if your credit score is even 20 points lower than the next guy or gal.  Save yourself money, put in the time and seek out the Mortgage Professionals to ensure that time is well spent.  Your credit is crucial... our knowledge of the industry and mechanics involved... can save you money and fulfill your dreams of home-ownership.  If you already are a homeowner, we can help you get on the path to make finances one less worry in this life.

 

Equifax

P.O. Box 740241

Atlanta, GA 30374

1-800-685-1111

www.equifax.com

 

TransUnion

P.O. Box 2000

Chester, PA 19022-2000

1-800-916-8800

www.transunion.com

 

Experian

P.O. Box 2104

Allen, TX 75013

1-888-397-3742

www.experian.com

 

Bear in mind, at this point, you're entitled to one free credit report a year.  Or, and I'd personally recommend this, you can get the whole batch which is simply called the 'Annual Credit Report Request Form.'  That's free as well!  The following sites will lead you in the right direction:

http://ftc.gov/credit

www.annualcreditreport.com

The bottom line in all this, the status of your credit can either cost or save you money.  Which option sounds better to you? 

 

 

 

 

For all you techies out there.

 I am not a techie but I do know a good concept when I see one. And new concepts excite me. I am always on the lookout for the next great internet happening. Some are useful and some are, well just plain dumb. I always try to look at them as "How can I use this technology in my Real Estate business"?

On Twitter, if you like, you can send a "live" photo from your phone. Maybe some of you already know about this.   

Even better on QIK you can send a live video from your phone!

Think of the possibilities of sending a live video of something happening and it gets around the world in an instant!

Social networking has reached a new level. I found this (QIK) by surfing through Ecademy, another networking site. I was speaking to someone from Brussels last night who was planning a Chocolate tasting event in Brussels!  But that's a whole different post for another time.

Check it out for yourself at QIK

Yes you will need to sign up and join to send videos, but you can view them without signing up.

Let me know what you think.

Would you spend $14 to save yourself Hundreds of $ over the course of a year. Here's how...

After recently completing the EcoBroker Designation I became increasingly interested in tightening my home's envelope. So I decided to crawl under my house to check out the HVAC ductwork to see just how well it was installed.

Before I go any further- let me give you a little background on my house... I live a basic 3,000 Sq ft transitional built in 1999. It's like every other neighborhood that has sprang up over the past decade. One would think a $200k house(in 1999) would be built pretty well.

What I found in my crawl space made me furious. Ive been under the house several times- but I never really paid much attention to the ductwork connections. One of my ducts was barely attached- the duct was just fitted to the boot with nothing holding it. Before I went under I turned the air on so I could feel leaks. Each of my ducts were ill fitted to the boots and EVERY ONE had leaks. I could literally feel cold air escaping from each duct and junction box.

The fix was simple- I picked up some Nashua Aluminum tape from Home Depot for $14. And all I had to do was wrap the flexible duct one time with the tape- then add a second piece around each attaching the duct to the subfloor...making sure that I sealed the duct completely to the subfloor. It may take a little more tape for different boots but the point is to seal the duct completely. After the tape job was complete- I no longer felt cold air.

I've never checked behind my HVAC contractor when they do installs on renovations. But you can bet I'll be better prepared to check this going forward. I recommend you check your own ductwork... there are literally hundreds of $ of cold air escaping those ducts. For $14 and 30 minutes- you can stop the leaks.

 

 

 

Second issue of my Linkroll. See Linkroll #1 for my favorite tech blogs. This time, I list some great blogs about blogging, some from the marketer's perspective, some with monetization tips and the bonus one from the best social media ""artist"", ZeFrank - IMO. 

1. Problogger.net - I tend to check this quite often. One of those few sites, which I remember to type in when I randomly want to see some new blogging tips without using my bookmarks
   
   
2. http://www.dailyblogtips.com/ - Another great site to visit for random or for ongoing blogging tips and analyses
   
   
3. http://sethgodin.typepad.com/ - Master marketer. 
   
   
4. http://www.copyblogger.com/ - Copyrighting and blogging tips
   
   
5. http://www.johnchow.com/ - Blog monetization tips
   
   

Bonus: http://www.zefrank.com - Zefrank is the man. He made online, interactive, social media applications way before it was "easy". Some of his projects are performance arts, some are just hilarious, while others are simply the best examples of ad-hoc online communities of sharing and taking actions for fun or for good.

 

 

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-- Zoltan

For free, high-impact, online listing marketing, visit RealBird.com

Jennifer Allan posted a blogand in the comments we discussed the above subject. She asked me to explain the difference between a Pre- Approval or a Pre-Qualification. I know there has been a lot of chat in the rain about deals falling apart in underwriting etc... I have posted a few blogs about  the very subject here, and here.

Honestly a good pre-qual is as good as any pre approval, and better than a bad preapproval for sure! Here is my quick explanation of the two.. Which I have turned into THREE:

• Pre-approval: Should be a fully underwritten file subject to a house... (using hypothetical house info) in 99.44% of the cases it makes NO sense to do this. It should only be done for the more difficult deal that is "iffy" from the start. (I made up the 99.44%, that's Ivory soap! but it is close to being true! We know which deals are difficult up front and which ones we can do blind folded)
• Pre-Qualification: Is basically talking to some one like me, possibly looking at pay stubs or tax returns. (I usually have people read numbers off of stubs, 1040's and W2's to be sure the numbers are accurate, you would be surprised how often the initial response is off, on both directions) And of course full credit report. A good LO will give as good a prequal as Pre-approval.

Some people get the two confused... or just don't ask the right questions for either of the above... Same as in any business, "Garbage in = Garbage out" There was NO learning curve in the past 5 or 6 years... "just take the deal" was the mentality... I started in the business when we HAD to know how to read tax returns, we Had to know FHA and VA. In this decade Loan officers did not need to know, or were too lazy to know the 'right' way to put a deal together. A lot has changed in the past year or so.  A lot of balls are being dropped due to a lack of knowledge in the industry today.

Deals should NEVER fall apart if buyers were screened properly... But Loan Officers have to keep up on their guidelines as much as Realtors have to keep up on Values. This has created  one other important piece in today's environment:

• RE-Qualification... Guidelines have been changing frequently in the past year, some one that could qualify last month may not qualify today. One of the blogs I posted (links above) discuss this very topic.

Deals Don't just fall apart for no reason. Either there is inexperience involved... the wrong questions were asked. A loan officer has to ask probing questions. You cant just ask, "what is your income" You will NEVER get the right answer!

And as Agents, you can not trust a 'dated' pre-approval or pre-qualification.  Especially if it is from someone you don't know. You need to double check these qualifications. Now, more than ever, you need to stick to your team to keep deals together. You need a trusted lending partner to keep your clients happy and the referrals flowing after the deal closes. We build each others reputation, and we need to work together as a team to keep OUR deals alive!

Have a wonderful week!

Rob

Robert Rauf

www.robertraufhomeloans.com