Let's hit on some house cleaning items first...

 

Interest rates have stayed very low for the last week which has surprised a lot of us 'industry smart-guys'.  I know I've told you this in past emails, but if you're thinking of refinancing or buying a home you really don't have much time to jump on these handsome rates.

 

I'm here to answer questions...so if you're curious about numbers or rates, please give me a ring here at the office and I'll be happy to answer your questions.  And as always, there will be no 'selling' you on anything.  That I promise!  Give me a ring...888-9394.

 

Or, better yet...you know a bunch of people that could use my services.  If you believe we could help them save a buck or two...or if they're wanting to buy a home and have question then "Refer a Friend" on our website.  It'll take you less than 60 seconds to fill out the form and I'll take over from there.  We won't call them without your permission.  Here's the link.

 

http://www.idaholegacylending.com/refer-a-friend.aspx

 

 

OK, now onto the important stuff.

 

Over the last month or so we've talked about some homeowner scams.  Today we're going to continue with this topic since it's near and dear to me personally this week.

 

Brandie and I returned from a family vacation recently.  The day of our return I received a call from the bank telling me that my personal business account was over-drawn.  Now, understand that we don't use that account for anything other than fuel, meals, and taxes...so needless to say we were little concerned.  We went in to the bank and reviewed the last weeks spending history.  We were shocked to see that over $4,100 had been spent in three days all over Southern California.  The only problem was that wewas in Idaho and not SoCal.

 

After an investigation by the bank the scam was found.  On our return trip we'd purchased a room at a hotel over the phone.  We used our debit card (like many of us do without thinking anything wrong with it).  The thief took that number and re-programmed another card.  With that new fraudulant card they went all over the area on a three-day spending spree.

 

Now, I'm not going to go into what I'd personally like to do to this thief (only because you probably think of me as a nice guy and I don't want to ruin that impression!!), but I've learned from this very personal experience and want to share some tips how to hep you avoid the same problem.  Also, it helps to have a very good bank to work with...Thank you Idaho Independent Bank in Nampa.  You guys rock!!

 

Here's a link to an article written for The Consumerist.  It does a great job explaining some simple things you can do to avoid any potential micro-identy theft problems like the guy in our office did.

 

http://tinyurl.com/kwuz6f

 

Have a great day!

 

Jason

 

Here's the deal, I've been very careful about not trying to push anyone into a rate specific loan product.  However, we've had great market movements today and rates are down significantly on conventional loans.  FHA loans have also seen noteworthy improvements.  We do not anticipate this to last long!

 

Typically when we see significant interest rate improvements we also experience a market "correction" shortly after, sometimes

within the same day.  

 

In fact, I dare say this may be the last time we see rates near 5% for a long, long time.  So, if you or anyone you know has been sitting on the fence waiting for rates to "improve"...NOW is the time to make a move. 

 

Keep in mind that if your loan is owned by Fannie Mae or Freddie Mac you may be eligible for a special government initiated loan product designed to help homeowners who have stayed current on their house payments, but haven't been able to refinance because values of homes have dropped.

 

Step number one is to check if Freddie or Fannie own your loan!

 

You can check to see if your loan is owned by Fannie Mae or Freddie Mac  by going to the appropriate website, and entering your address EXACTLY as it shows on your monthly mortgage statement.  Please call me if you have any questions or difficulties with these sites.

 

http://loanlookup.fanniemae.com/loanlookup/

 

https://ww3.freddiemac.com/corporate/

 

As always, I am here to answer any questions you might have an would love to hear from you.  'Windows of opportunity' like these usually don't stay open very long.

 

 

Best Wishes.

In this week's post we're going to touch on one major topic:

* How the Credit Card Crunch may DISQUALIFY you from being able to get a home loan!

Another Way Credit Cards Could DISQUALIFY You From a Home Loan!!

We've all heard over the news the last couple of months how the credit card companies are reducing the maximum limits on their customer's credit cards.  If you're someone that only uses 25% of the credit limit then you shouldn't be too worried about a reduction of credit limit, right?

WRONG!  I have a good friend that works as a finance manager at Edmark Superstore.  As I was talking with him over the weekend he told me he had three different returning customers come to the store just this weekend to buy a vehicle.  All three of these customers have always had PERFECT credit (800+ Beacon scores), but this time, less than 6 months later all three of them had a  credit score of UNDER 690.

I know what you're thinking...times are tough, money is tight so they must have run up a little more credit than usual and that's what's hurt their credit, right?

NO!  Each of these customers are like most Americans and carry a revolving balance on their credit card's and what happened to these three and a LOT of Americans has to do with a simple mathematical equation.

You see, in the credit industry there is a little known fact that revolving credit card balances with BUILD credit scores if they're 50% or less of the maximum limit and balances OVER 50% of the maximum limit with HURT your credit score.  Do you see where this is going?

So, let's just say that over the last 5 years you've had a maximum limit on your AMEX card of $10,000 and that you carry a typical monthly balance of $2,000...that's 20% of the maximum limit...thus, HELPING your credit scores.  Life is good.

Now however, AMEX decides that you're new maximum limit is going to be $3,000 (instead of $10,000).  You're initial thought is, "No problem since I hardly every have that much outstanding."  

Let's re-evaluate this thought.  If your new limit is $3,000 and you carry a revolving amount of $2,000 then you're running a new debt ratio of 67% which is HURTING your credit month after month.

So the fact that absolutely nothing has changed on your part or your ability to pay your monthly bills your credit score is being damaged because the credit card company lowered your maximum limit.  As a result, your credit score will drop and in some cases disqualify you from getting ANY loans...let alone a real estate loan.

What can you do to aviod this problem?

1.  Lower your credit card debt.
    This is nothing new and carrying monthly credit card debt isn't a great thing, but it's a really, really bad idea these days.  So, get rid of the credit card debt as quickly as possible.  There are several worksheets that can help you make a plan.  

SmartMoney.com has a great worksheet and article about digging out of debt.  Check it out to see if it can help you.  

http://www.smartmoney.com/personal-finance/debt/digging-out-of-debt-12905/?hpadref=1

2.  Watch the mail.
    The credit card companies are legally obligated to notify you if they're going to lower your credit card limits.  This will be done by mail unless you receive notification by email.

3.  Sign up for online alerts
    Ask your credit-card issuer if they offer online alerts that notify cardholders when they're nearing their credit limit. This will prevent over-the-limit fees.

4.  Check your credit report
    You can check them for free at annualcreditreport.com.  If it has any errors you can report it to the three bureaus (Experian, Equifax, and TransUnion).  Or, if you'd like you can call me directly and I can help you check this out.

5.  Shop Around
    If your credit limit gets lowered, don't cancel your card. That will hurt your credit score more than it does any good. Instead, shop around for more attractive credit card offers. Web sites like CreditCards.com and LowerMyBills.com help consumers compare offers.

Hope this helps you stay out of trouble!!  :-)