Mortgage 101

Inland Empire California: Inland Empire Real Estate Markets Still Hot | InlandEmpire.US

2007-07-07T00:22:00.000+05:00

I don't know if I'm alone on this one, but I may explode if I hear the term "sub-prime" used one more time. During my two month hiatus from the real estate blogosphere, I've watched dozens of mortgage lenders and brokers abruptly die out. Today, Bank of America just bought $2B in preferred stock from Countrywide Home Loans to help keep them alive (Los Angeles Times). We're seeing history in the making ladies and gentlemen. We all saw it coming, but I must say, I am astonished at how swiftly the changes occur ed. It's safe to say that what the housing industry has experienced is more like a death blow than a "correction." Between all the foreclosures and layoffs, it seems as though everyone is scrambling to find a solution to the housing meltdown.

For all my loyal fans out there (yes, you Mom), I'm excited to announce my return to the world of real estate blog writing. Once again, I promise to spend long nights in front of the computer and ignore all 'femalien' distractions to share my insight on the housing market with you, the people of Earth (specifically Southern California).

Below, I included a link to an informative but somewhat dated article about the Southland's residential and commercial real estate markets. Until next time.... ET Home Loan

Inland Empire California: Inland Empire Real Estate Markets Still Hot Inland Empire.US

Turning Your Company Into A Lean, "Green," Money-Making Machine

2007-05-19T11:00:00.000+05:00

Between terrorism, oil, conflicting religions, disease, and poverty, there's one topic that dwarfs all of these and will affect us all. Environmental issues continue to climb our proverbial to-do-list, and solutions to the problems seem nothing short of a titanic undertaking. Most of us are guilty of contributing to the problem, but what good it to start pointing fingers? All we can do is get into "solution mode" and try to salvage as much of this planet as we can for the generations to come. In case you haven't heard some of the latest data, I'm talking as soon as the next generation.

I'm not implying we should all go out and buy hybrid cars or handcuff ourselves to a tree in protest. But taking little steps towards this goal on a daily basis needs to start happening. Trust me...I can't believe I would ever be saying this. The fact of the matter is, in the Inland
Empire of Southern California, it's getting hotter and hotter every year. I just can't take it anymore. One more summer averaging 105 degrees F, and I'm outta here! Fortunately, my business does have something to provide the environment...or should I say, something to leave to it. It's PAPER! At DirectLoanPro, we've made tremendous steps to eliminate paper files that are horribly wasteful to process, and even worse to store.

I wrote a short article about a service provider we recently teamed up with called iWantDocs.Com, an affiliate of Deocentric Solutions. For my business, they have dramatically elevated our operating efficiency, simply by limiting the amount of resources we use up (waste). Converting our business through their Online Data Management System (ODMS) and digitally storing our file system has not only cut our operating costs, but also saves an insurmountable amount of paper in the process. Here's a blurb from their website about their goals of "greener" business:

Staying Green...

iWantDocs.Com was built around the idea of increasing efficiency in real estate and the mortgage industry. In business, efficiency can be defined by producing a maximum level of output from a minimal amount input. Practicing conservation is vital for a business to operate efficiently and maintain its resources. So much of our attention is focused on this very concept, that we recognize the importance of it outside the world of business. At iWantDocs.Com, we are taking steps to become more efficient at living within our physical environment as well.

We feel that it is our responsibility to create a greater awareness, and help promote "green" business practices within our industry. iWantDocs.Com has already begun to research alternative business solutions that not only benefit real estate and mortgage brokers, but the environment as well. The most obvious solution is the elimination the wasteful and highly unorganized paper-files that remain industry standard. iWantDocs.Com uses the latest technology to provide brokers with a way to enhance their level of business, while also becoming friendlier to the environment.

We contribute a percentage of our proceeds to various non-profit agencies aiming to spread awareness and improve our environment. If you would like to recommend any such organization, feel free to contact us via phone or email to let us know and we will respond promptly.

Companies going green with energy alternatives - CNBC Special Report: Going Green - MSNBC.com

The California "Roll": It's A Sin To Let A Fool Keep His Money...

2007-05-14T03:22:00.000+05:00

The California "Roll": It's A Sin To Let A Fool Keep His Money...: "It's A Sin To Let A Fool Keep His Money...

Konnichi Wa & Arigato for visiting The California 'Roll.' Have you ever thought there was something 'fishy' about your realtor or loan officer? Chances are, you had good reason. Integrity and honesty have become virtues of a good sales pitch rather than common practice.

There's only one way to protect yourself and your investments from these 'slippery' real estate professionals (crooks), and that's education! The more you know about real estate and your mortgage, the harder it is to be taken advantage of you. And trust me...it happens every day. Well I don't know about you, but I'm sick of it! The funny thing is, it's not the crooks who are at fault. It's the person who signed his or her life away on the dotted line!

Have you ever heard the expression, 'It's a sin to let a fool keep his money'? I know this may sound harsh but a crook's going to be a crook. The only reason he's not going to jail is because you just gave him permission to take your money.

The Solution:

Learn as much as you can. In Southern California, the median home price is somewhere around $500,ooo. Half-a-million Dollars! Would you buy that much stock without doing any homework? I highly doubt it.

Let's do it... Class, open your books to page 1. Welcome to Mortgage 101"

Page 1 on Google for Mortgage 101 in 6 Months For $0.00

2007-04-26T12:22:00.000+05:00

VICTORY IS MINE!!!!!

Apparently this stuff actually works. All it took was a couple of books and an obscene amount of time writing articles. What it didn't take was money to do it. As of today, 4/26/07, this website is now in sixth place on Google for the keyword search "Mortgage 101," behind only:

1st- Mortgage101.com (go figure)

2nd- Mortgage101.com (again)

3rd- Consumer Credit Repair

4th- Moving.com

5th- Amerihome Mortgage

I recently teamed up with a couple other real estate professionals who are interested in blogging, but even more interested in helping me get away from the computer. The site is not quite up and running yet, but it's going to be called http://www.thecaliforniaroll.com/. I will be introducing Martin Elguera, Owner/Operator of iWantDocs.com and Rich Spott of Re max in Motion in NorCal's East Bay Region. With Rich being a realtor along with Martin's experience as a processor and notary, I think the blog will offer a nice balance of real estate knowledge from the different perspectives.

I'll keep you posted;)

Can iWantDocs.com Help Save Your Brokerage?

2007-04-21T05:26:00.000+05:00

In wake of the recent housing bubble, the real estate and mortgage industries have undergone some drastic changes. One of the more obvious changes is the number of real estate and mortgage brokers now in business. When the business was good, there was plenty to go around and keep every one's pockets full. However, the bubble burst last year, and the industry has since experienced a major reality check. The correction in the market continues to force weaker brokerages and lenders out of business. Brokers able to survive these challenging times are doing everything they can to cut costs in order to pull a profit. During the housing boom, revenue was plentiful so operating costs were not a major concern. But since the market took a turn for the worse, minimizing costs has now become top priority.

A new company that operates out of Southern California's Inland Empire called iWantDocs.com, has taken steps in providing low-cost solutions for real estate and mortgage brokers alike. They provide services such as outsourced processing, real estate coordinating, data storage, and software licensing solutions for brokers all over the country. iWantDocs.com uses an online database that helps increase company efficiency and lower their costs. The web-based company is a pioneer in online business solutions for licensed brokers in the real estate industry. To find out more, visit the link provided below.

iWantDocs.Com Online Business Solutions

Southern California's Stalemate For Real Estate

2007-03-12T22:08:00.000+05:00

California's on-going standoff between buyers and sellers continues for yet another month. Home buyers are practicing thier patients while stubborn sellers refuse to lower their prices. The Fed showed little mercy in the near extermination of Sub-Prime mortgage lending last week. Despite wide-spread uncertainty within the housing sector, California's home prices remained relatively unchanged from a year ago.

Anything But Sublime for Sub-Prime.

2007-03-03T06:35:00.000+05:00

This week, the Federal Reserve officially acted on their plans to put the choke hold on the Sub-Prime lending. Backed by Congress, the Fed came down hard on New Century Financial Corp. and Fremont General Corp., two of the top Sub-Prime lenders in the country. To make a long story short, both companies are guilty of predatory lending. Another way to say it...they were giving loans out to people who couldn't afford them. All the buzz about increasing numbers
in foreclosures is a direct result of questionable lending tactics from companies like New Century and Fremont.

I would be interested to see the actual percentage of foreclosures in comparison to loans funded by these two companies. Having worked with them personally over the years, these particular lenders built a reputation for being the "go-to-guys" of the industry for difficult loans. So much so, in fact, that underwriting (or lack there of) became the focal point over loan programs and interest rates for generating new business.

Aside from obvious economic implications , this shift in the market is lined with major political and sociological undertones worth bringing to light. Since I work in the mortgage industry, I see loans that fall under the category of "questionable," on a daily basis. Questionable, meaning there is a higher level of risk to the borrower in a particular mortgage program. I won't lie and say that I never closed a questionable loan in my career. It is after all, the client's decision in the end. I'm not affraid to tell my borrowers when I don't agree with them, either. Every time someone asks me about programs like the Option ARM, I tell them why I think it's a bad loan (for most people). They hired a Mortgage Consultant, not a 'Yes' man. If someone else was handling my larget investment, I would want them to do the same.

"Who am I to tell them what to do with their money? As long as they understand what kind of loan they're getting and how it works, I'm not going to refuse their business."

But why are people getting approved for loans when even I, the mortgage professional, feel are too high of a risk. The industry has gone in a direction that is quite disturbing and I think it would be worth it for all of us to re-evaluate what we are doing. The fact is, lending institutions like Fremont and New Century have provided loan programs that are not in the best interest of certain people. At the same time, these same loan programs have provided others with an avenue to gain wealth through real estate. The problem is in the 'gray' area. My next article will cover some possible solutions to the issues.

Bloomberg.com: Worldwide

How NOT To Live Like A King

2007-02-25T03:56:00.000+05:00

Living in the Inland Empire of sunny Southern California definitely has its perks. It's seventy degrees outside without a cloud in the sky.....in the middle of FEBRUARY. If I got in my car and drove west for half-an-hour, I'd be at the beach where it's just as sunny and warm. If I drove for the same amount of time going opposite direction, I would end up at a ski resort that's half-buried in fresh powder.

OK, so maybe I'm exaggerating about that fresh powder. The point is, I could go surfing in the morning, ski in the evening, and never be more than 50 miles from my house. If I still don't have your attention, maybe you can relate better to this....We play golf 12 months out of the year! Sure, sometimes it gets a little chilly and I'm forced to wear long pants, but I try not to complain too much. Sometimes I hear about these crazy ice storms on the east coast that get so cold, entire states loose electricity. The only reason the media even reports this stuff to us is to update us on how it's affecting the economy. Maybe that's because the only news station I ever watch is Bloomberg Television. I have to admit it though, one of those storms really did affect all of us. I mean granted, it was only like sixty degrees out here, but my stocks were frozen solid for like two weeks!

Now, before you start thinking about buying a one-way ticket to California, and possibly turn your wife into a "golf widow," I should tell you about a little phenomena we have going on out here. Just in case you ask.........I'M NOT TALKING ABOUT THE EARTHQUAKES! I'm talking about money. Depending on what state you're coming from, uhh, well, uhhhhh, just make sure you're RICH!!! I'm sure you heard all the buzz about "the crazy housing market" out in California. Yeah, well it's true and let me just say that we deserve every little bit of that sunshine we get because we're paying for it! This, ladies and gentlemen, is our ICE STORM! It might be eighty degrees outside but it sure is c-c-c-cold out there!

So, what is the phenomena that drives California's real estate market anyway? From an economic standpoint, it seemingly defies traditional behavior, usually characteristic of a natural market. For the record, I use the term "natural market" loosely because outside influences, like the government (ie.The Federal Reserve), do exist and can greatly impact the over-all climate of the industry. However, take away government involvement, and real estate could arguably be one of the last true "natural markets" remaining. To better describe Cali's real estate, I found this colorful description that I quoted from an anonymous author:

"California's real estate market has grown into a living, breathing creature that can no longer be controlled. It has broken free from the rest of the country and has become an entity, in and of itself. Now, it makes it's own rules! As it continues to grow, the basic laws of economics cease to apply to it. It doesn't know who Ben Bernanke is, nor does it care. Millions of residents slave, day-in and day-out, hoping only to appease the harsh demands. It decides where people live, where they work, and how far they will commute to get there. "

I'm kidding, I just wrote that. Anyway, the point I'm trying to illustration is that in many areas of California, there is no longer a balance in the residential market. Where I live in the Inland Empire, your standard "starter-home" ranges from $450,000-$650,000. How does that happen when the average college grad entering the workforce is LUCKY to make $60,000? The answer is simple. There are no starter homes in the Inland Empire (or Los Angeles). Even with the recent decline in prices, housing is still well out of reach for younger buyers. As long as people continue to demand housing at current prices, the Inland Empire will not cater to first time home buyers.

So unless they move away, people are forced to rent instead of buy, right? WRONG!!! Believe it or not, somebody came up with an ingenues way to turn the DESERT into a suburb. I know what you're thinking...

"Why didn't I think of that?"

Apparently, just by installing a few sprinkler systems here and there, you can actually grow grass in the DESERT! If you're one of those guys who has to have the greenest lawn on the block, the DESERT is the place for you. You can get your very own 5ft. X 10ft. yard in one of our lovely "cookie cutter" housing developments. If you already live in California, I provided a link to a site that has a tool to show you how well you could be living if you were in another part of the country. Enjoy!

(In searching for some pictures to help illustrate my "housing creature" I found this and wanted to share it with you. It was much unglier than the creature I was talking about!)

Cost of Living - Cost of Living Calculator from CNNMoney

Case Study #1: The True Power of the Blog

2007-02-11T19:39:00.000+05:00

DirectLoanPro.com

This article is in response to yesterday's blog titled:

Nearing the End For Realtors and Mortgage Professionals

Yesterday, I sumbitted the article listed above to www.ActiveRain.com. In case you're not familiar with it, www.ActiveRain.com is one of the top sites for online real estate and mortgage networking. To say the least, my article proved to be extremely controversal,
as it sparked a debate that has carried over to today. The real estate and mortgage professionals shared some thought provoking opinions both for and against my argument. The discussion.....correction.....debate lasted all day, proving to be my most pivotal topic yet.
I decided to write a follow-up blog to thank everyone again for participating in the debate. The overwhelming response I received was worth every minute I sat in front of my computer yesterday.

Since we all work in the same [housing] industry, whether it's in real estate or mortgages, we're affected by the same changes. The structure of our business forces us to adapt to these changes, both good and bad. With the exception of a couple of participants, everyone contributed strong evidence to support their arguments. I chose a side when I wrote the article and apparantly made it edgey enough to get responses.

Here's What I'm Taking With Me:

With the exception of a few individuals, most of you are in agreement that the real estate and mortgage businesses will never become fully automated. There are certain steps in both real estate and mortgage transactions that require the presence of a person.
DON'T USE REALTOR.COM OR ZILLOW.COM, RIGHT? For the record, most of my borrowers know of, and use both of these sites. I've never needed to use them so I just go off what they tell me. You're still welcome to give me other suggestions to offer my borrowers.

Some people responded by providing facts to prove me wrong. I noticed a lot of responses that were laced with sarcasm, or were attacking me personally. There were too many holes in my argument to just let me win that. If I was a potential client reading that dialogue, I'm would hire the person who used their knowledge, as opposed to sarcasm.

My favorite response would have to be from Jay Merton. Jay proved you can win an argument and still be a gentleman about it.

I had fun with that. It's going to be hard to duplicate that passion next time around. ActiveRain.com definately has some thinkers here. I'll have to find a different topic for us to but heads over. Talk to you soon!

Here are some of my favorite comments:

"I simply had to come back for a visit, just to see the comments you received. In my first comment I wrote: “If your intent was to make a splash with a provocative topic—you may have succeeded!” I expected you would receive some very negative comments from some of our members (and unfortunately I was not wrong in that expectation), others would politely disagree and add to the debate, some applied humor to the debate and some thought it thought-provking.

I was pleased to read your replies to
the comments—with good grace and humor: “Touché.”

That your post was featured is no surprise to me—it deserved to be featured! Some members disagreed with your original premise and could not imagine why a post they disagreed with should be featured. This makes no sense what-so-ever to me. How boring the ‘Rain would be if we all agreed with one-another!
-Jay Merton

"I don't agree totally. A shake-out is on the way. Any REALTOR who thinks that s/he will be unaffected by the increased availability of real estate services on the Internet is delusional. Just like stock brokers in the late 90s who said that etrade.com and other web stock brokerages would soon be extinct. However, just as the best stock brokers survived the rough years in the market since 2001, so will the BEST REALTORS survive the evolution of our business. "
-Darren C. Douglas

"As TLW has commented many times before. Your computer can never take the place of a good advisor.

Sure, computers and fancy websites will forever be an intrical part of the process and I'm sure there is some percentage of buyers that may prefer to work in the virtual world, but for most people buying a home is a touch n feel transaction. They want hand holding and reassurance that their doing the right thing.

However, I would be remiss if I didn't point out that the travel agency business was once a thriving business in the pre WWW days. Then came Orbitz, Priceline, and the Travelocity's of the world; and this industry has all but ceased to exist.

The real estate community needs to embrace computers and the web for the value they add and recognize that the true value resides in the knowledge and understanding of the truly qualified realtor or loan officer. "
-Martin Rodruigez

"If I go down I'm taking the car sales people with me. "
-Greg Cremia

Nearing the End For Realtors & Mortgage Professionals.

2007-02-10T20:27:00.000+05:00

Web real estate firms shake up home economics - Los Angeles Times

Well....so much for having my own niche, huh? If I told you that the housing industry has only begun to "dabble" into generating sales via the internet, you'd probably think I was joking. The internet has indeed become a powerful tool for both realtors and mortgage lenders, but to what extent does it generate new business? I guess another way to ask that is:

"Can a website do the same job as a realtor or a mortgage professional?"

The answer is....ABSOLUTELY! It's already in the works. At this point, it's still used mostly to suppliment the work of realtors and loan officers. However, emerging websites like Realtor.com are providing buyers and sellers with much of the same information as their real estate agents. Zillow.com is another popular website which is used for determining real estate values all over the country. Like many other industries, real estate & mortgages transactions will soon be generated, processed, and finalized over the internet.

1.) Realtors will be the first to be eliminated.

Real estate sales are heavily influenced by outside forces. Economic
conditions, interest rates, housing prices, and income averages
are variables that directly effect the real estate
market. Realtors are often at the mercy of changing market
conditions, regardless of their ability to sell. If houses are too
expensive, people won't buy them......period. Obviously, I'm speaking in
generalities and there are always exceptions to the rule. The other major cause for their extinction is their price. For how much a realtor charges, it's far too easy to figure out a way to eliminate the need for one.

2.) Loan Officers..........YOU'RE NEXT!

Like realtors, loan officers experience fluctuations in their business due to a changing economy. Loan Officers, however, rely more heavily on their ability to sell than do realtors. At the risk of upsetting any
realtors who are reading this, it's the truth. Also, no matter how bad market conditions may be, people will always need money. Without doing any research, I'm going to guess that real estate transactions
(sales/purchases) fluctuate far greater over time than mortgages.
Just a hunch. You're more than welcome to do the research and prove me wrong. I'll even post it on this site for you.

Inland Empire: Lock in Your Interest Rates Soon!

2007-02-06T19:51:00.000+05:00

Stronger economy lifts mortgage rates - Feb. 1, 2007

The Fed met last week to discuss their on-going worries about inflation. Thankfully, they decided that prices were stable enough (for now) to keep the over-night bank rate at 5.25%. The bank rate does influence mortgage rates directly, however, there are other factors. Mortgage rates are also heavily influenced by the 10-Year Treasurey Note. Over the last month, average interest rates on 30-Year Fixed mortgages have gone up almost half a percent. There's no need to start chewing your fingers off if you still need to purchase or refi. I'm still looking at rates of around 6% for an A+ borrower with decent equity. This statistic might make you feel better:

If you take all the mortgages for the last 30 years and averaged up the interest rates, you would have a number higher than 10%.

Just off the top of my head, I think the 18% mortgage rate we saw in the 80's may have been a contributing factor....
My point is, we are still in a favorable market and there are a lot of benefits available to you. But as you can see, that will be changing here within the next couple of weeks.

Recommends:

If you're in a position where you have some money to invest, just think :

"What do we know for sure??????
We know for a FACT that property values have come down...We know for a FACT that interest rates have also come down.

"What isn't for sure???????
We don't know if home prices will continue to drop...We don't know when we might see interest rates this low again (remember my statistic).

If you have equity in your home or just have a bunch of money just sitting around, start thinking about INVESTING it in real estate. Market conditions are IDEAL for purchasing real estate right now. The fact that nobody is talking about it, may just be the perfect reason why you should be doing it.

A Home-Buyers Checklist

2007-01-28T22:58:00.000+05:00

Inland Empire Mortgage Lender

If you're in the market to buy a home, make sure you have all your bases

covered. This article explains the important steps involved in purchasing a home, and can serve as a checklist for anyone unfamiliar with the process.

Remember: As a buyer, you currently have all the negotiating power, so don't let it go to waste!

Don't be affraid to low-ball an offer. You just might be supprised at what sellers are willing to take for their homes right now.

Happy hunting...

microid: 80dadeca4403cfffda828f76a75bb8b108be934c
http://feeds.feedburner.com/Mortgage101

Zero Money Down In Southern California?

2007-01-19T10:35:00.000+05:00

RealEstateJournal First-Time Home Buyers Look at Houses Again

As I mentioned in an earlier article, it's a good time to make a commitment and buy a home. Interest rates are still low and housing prices have hit their floor. Frankly, it may not get any better for quite some time. The Fed keeps talking about inflation worries, which means higher interest rates. Real estate values have nowhere else to go but up. They won't go up as fast as they did, but at least we're headed in the right direction. Oh yeah, did I mention that buyers have plenty of homes to choose from?

Right now, buyers have all the negotiating power!

Take advantage of it because it won't last. I've been telling my buyers to "low-ball" their offers because most sellers WILL accept it (if they want to actually sell their home). Sorry sellers, but that's how economics works....Supply and Demand. Also, seller paid closing costs seems to be pretty standard right now.

Today, I priced out a zero-money-down loan for a client looking to buy a home in Pasadena, Los Angeles. To my astonishment, the payment actually ended up being less than the rent he was paying. For the record, I'm not putting him into a negative amortization loan (option-arm), either. Investors, I'm talking to you. Rates are just that good right now.

I thought some of you might find that interesting.

10 Steps To Take Before You Sell Your Home

2007-01-11T23:42:00.000+05:00

California: Inland Empire: Real Estate & Mortgage : Refinance, Purchases, and Debt Consolidation

If you just put your house up for sale recently, don't start packing yet. Sad but true, the national averages indicate that homes are staying on the market for around 90 days. What worries me about that is most of the people selling right now don't have that much time. In fact, most sellers right now are down right DESPERATE!

The increasing numbers of foreclosures proves my point...Consistent double digit gains to put it all in perspective. SCARY!

OK, if you're still serious about selling that house, even after selling that...you better get to work. You've probably heard the numbers on housing inventory, so you know there's competition out there. If you've never been in sales, allow me to extend to you a little knowledge. With market conditions like these, you have to face the facts. Right now your home "comes a-dime-a-dozen". The only way you have a chance to sell is if you meet at least one of these two conditions:

1.) Your home is better than the 200 other comparable homes for sale in your city.

-0r-

2.) You're cheaper than they are.

In California, sellers are refusing to accept the fact that their home is grossly over valued. Elementary economic theory tells us:

when there is an excess in supply, prices must fall.

If you can meet at least one of the two conditions, you have a chance to sell it. I already know you want to avoid the 2nd condition, so let's get to work on the 1st. If you need major upgrades on your home......good luck! If it's just a little rough around the edges, you probably want to start polishing it up. A little paint here and there does wonders and isn't very expensive. Trust me, you will have the time to do it.

May the force be with you...

America Struggles to Afford Housing

2007-01-10T21:26:00.000+05:00

It's no secret now that real estate values were grossly overstated a year ago. Many beleive it still to be true in areas like California and Florida. When real estate is over-valued, it means that housing prices are higher than what people can afford. Over the last few years, housing prices went up while income remained constant. Where I live in Southern California, first time home buyers are looking at mortgage payments between $3,000-$4,000 a month. At this point, these numbers are still unrealistic and will therefore continue to fall. I would love to hear what any realtors in the same area are saying about this. Agree or disagree?

Top 5 Ways To Instantly Boost Your Credit Scores

2007-01-09T17:20:00.001+05:00

Nine Ways to Improve Your FICO Credit Score and Four Reasons Why You Want To

Believe it or not, some of us have problems with paying our bills on time. I think it’s fair to say that most of us have had at least one debt go unpaid at some point in our lives. Whether it was a $5 late charge from Blockbuster you forgot about or a late mortgage payment to the bank, we’ve all been guilty in some form or another. For those of you guilty of the latter, this article’s for you. Chances are if you’re not making your mortgages payments on time, other debts are also being neglected. You already know the best way to fix this problem...PAY YOUR BILLS ON TIME! But if you’re looking for a “quick-fix” to boost your scores today, start taking notes. Working with “Sub-Prime” borrowers, as they’re called in the mortgage industry, I’ve become somewhat of an expert on repairing credit scores. Just as important though, I have learned to help my clients maintain their scores once we’ve raised them.

After running thousands of credit reports over the years, I have only seen a handful of scores actually in the 800’s. None have been 850, which is the highest possible score. If you desperately need to raise your scores today, I can help. If you just want to impress your friends by having higher scores than them, I can help…I guess. As consumers, our credit report displays our financial time-line. Increase your scores and you increase your consumer buying power.

Know Your Credit Scores: What many people don't realize is that credit (FICO) scores largely reflect your recent payment history.
A person with poor to bad credit can dramatically increase their scores by
making just 6 months of timely payments.
There are, of course, other contributing factors which I will also explain. Your outstanding collections aren't hurting you as bad as you think. They do count against you, however, they're not weighted as heavy as your recent payment history. Start checking your credit report at least once every few months. I find so many errors on credit reports that actually hurt my clients' scores. Cases of fraud are also very common making it that much more important to check it. If you are a homeowner and would like to receive a free credit report and analysis, submit your request here at www.DirectLoanPro.com.

Lower Your Credit Balances: The best trick for boosting your scores fast is lowering the balances on your revolving credit.
You want to try and keep your balances below 40% of your available credit limit.
For example, if your credit card has a limit of $10,000, you want to lower the balance to under $4,000. I have seen credit scores jump higher than 50 points by doing this. Even if your balance is only around $5,000, lowering it just a small amount can greatly improve your scores. Once your balances are lowered, keep them there! If you must, go get another card. Always remember to keep the balances low.

Open New Credit Lines: You need to have open lines of credit to establish credit scores. Opening new lines of credit is not always a bad thing.
The credit agencies want to see high credit limits with low balances.
If you're maxed-out on all your credit cards, opening a new one CAN help you. I'm not saying to go out and apply to every card offer you get, but this is a way to lower your debt-to-credit limit ratio. If you do this, I highly recommend cutting up the card immediately. If using this advice to increase your scores, you probably don't need to be incurring anymore debt. Also, NEVER CLOSE YOUR CREDIT CARDS! Revolving credit helps your score. If you don't need it, don't use it. Make sure that it stays open and shows on your credit report.

Transfer Credit Balances: Sometimes, raising your scores can be done without having to pay down anything. If you took out another credit card like in Tip #3, it's not a bad idea to spread your balances throughout your various cards. Try to keep the balance of each card under the 40% I mentioned earlier. Make sure you're not getting charged high interest rates or hidden fees by doing this. Some credit card companies offer promotions that allow free balance transfers from card to card.

Dispute Late Payments: This trick doesn't always work. Obviously, if there is an error on your report and you can prove that it is such, this most definately works. However, this can also work even if you owe the money. Defending a dispute can cost creditors and collection agencies more than they are willing to spend at times. Not many people have the know-how, or the resources to dispute debts the in proper way. Doing this on your own can be a major hassel, but if you know how to do it right, it can be a major relief. Post a comment if you would like more information on this and I will reply.

The Real Estate Tomato: Business Plan 2007: Blog For Leads

2006-12-28T15:38:00.000+05:00

The Real Estate Tomato: Business Plan 2007: Blog For Leads

Some Great Tips to Help You Make an Informed Decision

2006-12-27T20:49:00.000+05:00

Find Today's Rates on Mortgages, Refinance Loans, Home Equity Loans, and Mortgage Calculators on Yahoo! Real Estate

So you've been tracking real estate values in the area, waiting for that right moment to make your first home purchase. You think that prices have bottomed out, but there's no way to be sure. Even top economic analysts can't seem to agree on what's in store for the housing market. While you focus all your attention on location and prices for your home, you forgot to take other importanat factors into account.

First time homeowners often find themselves in this position. This real estate web page has some useful links to help prepare you for what's ahead. Educating yourself with the mortgage procsess ahead of time increases your chances of finding the best possible loan. To qualify potential borrowers, mortgage lenders pay close attention to these three criteria:

-Credit (Fico) Scores
-Loan-To-Value Ratio
-Income Status

Learn now, and be ready when you find the home of your dreams. DirectLoanPro.com is another website where you can gather information about Home Loans. If you know exactly what you need, feel free to drop us a line.

It's Official...

2006-12-22T11:32:00.000+05:00

10 housing markets that will rise in 2007 - Dec. 21, 2006

...your savings account promises higher yields than your home. The days of cash-out refi's and 100% financing are coming to an end. Our homes are no longer the ATM machines they used to be. Expect the 30 year fixed mortgage to make a big comeback this year. Unfortunately, most of the people who need traditional loans like these aren't going to qualify. Trillions of dollars worth of home loans will be adjusting this year with very little equity behind them. This makes tough loans near impossible to qualify for.

Being a mortgage professional, I'm going to have my work cut our for me. A major surplus of homeowners in need of loans that don't exist. I will always try my best to qualify any borrower, but I won't make any promises. If you're a savvy real estate investor who specializes in foreclosure listings, start liquidating your assets now. I have a feeling you will have plenty of inventory to choose from this coming year.

Bloomberg.com: Economy

2006-12-07T02:59:00.000+05:00

Bloomberg.com: Economy

This article may be a bit much for most of you. I'm not saying you won't understand it, I'm saying that most people might find it boring. However, it affects all of us so I'm compelled to comment on it.

The Fed continues to express fears of inflation, despite rumors of rate cuts. Oddly enough, the bond market has ignored any threats of rate increases and continues to perform well. Mortgage rates are directly affected by the 10-year treasury note, which is why we're seeing this years lowest mortgage rates. The rate for a 30yr fixed mortgage has fallen to 5.58% (not including points). It may continue to fall even further depending on how the Fed responds.

Mortgage applications rise 8% as interest rates tumble - Dec. 6, 2006

2006-12-06T19:15:00.000+05:00

Mortgage applications rise 8% as interest rates tumble - Dec. 6, 2006

Next year, over a trillion dollars worth of temporarily fixed mortgages will be adjusting. If this is you, or if you are not sure, you need to find out all the terms and conditions of your loan immediately. You can get updated rates on my site at www.DirectLoanPro.com. Fill out an application if you would like me to lock in an interest rate for you today.

The evidence is scary. I talk to people every day who put themselves into positions they can't get out of. For many, it's too late to do anything about. If you don't know all of the details of your current mortgage, you need to find out. Your home may be depending on it.

The End of the Housing Slump! - Dec. 5, 2006

2006-12-06T07:06:00.000+05:00

Builder Toll Brothers sees housing slump near bottom - Dec. 5, 2006

I wanted to post this message to anyone who might be on the fence about buying a home. If the housing slump truely has bottomed out, you may want to think about purchasing before prices go up again. The linked article has more information about the new trends.

The 25 Best Affordable Suburbs in the U.S. + Slide Shows

2006-12-04T07:37:00.000+05:00

Low crime, reasonable commute, and good schools
—who says you can't find a nice house in a suburb without paying a fortune?

read more digg story

The Club at Port St. Lucie

2006-12-02T07:41:00.000+05:00

The Club at Port St. Lucie

Attention real estate investors. Have you thought about purchasing investment properties out-of-state? Click the link above to see some new property listings available in Florida.

Are you living in California but can't afford to buy??? Consider buying out of state to build your equity. Soaring housing prices in California are making it impossible for younger families to buy. Investing out of state is a great way to build capital for a down-payment on a home here in California.

Don't believe the rumors!

2006-11-30T13:57:00.000+05:00

Bernanke maintains that inflation is a big risk - Nov. 28, 2006

I have heard many rumors that interest rates are going to be cut early in 2007. The truth is, the Federal Reserve is still worried about inflation and they don't plan on cutting rates any time soon. In fact, homeowners should be more worried about the Fed increasing rates than anything else. National averages for current mortgage rates are the lowest we've seen this year. If you are planning on waiting for rates to come down before you purchase a home or refinance, you may want to re-evaluate your situation. My best advice to anyone thinking about restructuring their mortgage is to do so now.

The article linked to this blog has more information about interest rates.