Back To Basics: Mortgage 101

mortgage 101

 

When you start the home financing process, it is easy to get overwhelmed. Making one of the biggest financial decisions of your life deserves more than a trial and error education. In school, you learned your numbers, then algebra, and eventually probability and statistics, but personal finance was probably not on the list. It simply isn’t taught.

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Unhappy With Your Credit Score? 3 Things You Can Do Right Now to Get It Back on Track

Sindeo Feb blog #2

Key Takeaways:

  • A recent study found that more than a third of Americans are not happy with their credit score.
  • Whether you are unhappy with your score or it is suffering after some recent big purchases,  there are steps you can take to improve it.
  • Here are three things you can do right now to boost your credit score.

Unhappy With Your Credit Score? 3 Things You Can Do Right Now to Get It Back on Track

Its the end of the month, the bills are in and you realize how busy youve been. Whether it was a last minute get away with your friends or a few exciting splurges during the post-holiday sales, you should make sure any hits to your credit are fixed as soon as possible.

Even when we know our credit scores can impact everything from mortgage applications to turning on utilities, sometimes we don’t take as much care as we should to protect them.

A new study shows that a third of Americans are not happy with their credit scores, and 28% are not confident that their current score can help them reach their goals.

If you’re ready to make a change and want to improve your credit score, here are three things you must do:

#1 Don’t Miss Payments  

Your payment history is the biggest and most emphasized component of your credit score. Lenders want to know that you can meet your monthly payment obligation. Credit scores give them an indication of how financially responsible you are and whether or not you can handle more debt.

Credit scoring companies look at the percentage of your monthly bills that have been paid on time over the past 24+ months for each of your accounts. Late payments, particularly those that are long past due or delinquent, can cause damage to your score.

What to do:

  • Eliminate delinquent accounts by paying the past due amount or call and negotiate a payment plan with the creditor.
  • Consider setting up automatic payments for your bills to ensure you are not making late payments.
  • Add bill due dates to your calendar and set up reminders to keep you on track.

#2 Keep Balances Low

Your credit card balances have a direct impact on your credit score. In fact, the amount owed on your accounts —or your credit utilization— can make up roughly 30% of your total credit score. Those who keep a low credit utilization (most experts suggest under 30% of your credit limit), tend to have higher credit scores.

How to do it …

  • Whenever possible, pay off your balance each month. Keeping a balance is not only expensive because of the interest you’re paying, but it also prevents you from keeping ongoing balances low.
  • Find out when the creditor reports to the credit bureaus. If your payment is due on the 5th, but your credit card company reports on the 1st, your credit utilization may not reflect your payments.
  • Lastly, consider asking for a credit increase. Keep in mind that this will likely result in a hard pull of your credit, but over the long-haul it could have a positive impact on your credit score.

#3 Be Patient

Repairing your credit and waiting for your FICO score to bounce back can take time. If you’re planning on getting a new mortgage or are considering refinancing your existing mortgage, it’s a good idea to review your credit report and check your FICO score at least 6-12 months prior to applying, make the appropriate efforts to improve the score.

How to do it …

  • Check your credit score by requesting a free copy of your report. Look for any mistakes or misrepresentations. If you find mistakes, here’s how you can fix them.
  • Don’t make any big changes like adding a new credit card, purchasing a car or closing any long-standing accounts.
  • Check your score again in 6-8 months or sign up for ongoing credit monitoring to keep watch on your score. Sites like MyFICO.com provide monthly credit score monitoring and can be a great option for staying on top of your score.

Putting the Power Back in Your Hands

Taking charge of your credit —deciding to make improvements, focusing on the plan and sticking with it— puts the power back in your hands. Don’t leave your credit score to fate!

When your credit score is on track and youre ready to shop for a mortgage or a refinance, SindeoOne allows you to shop more than 1,000 loan programs by filling out a single application that can take less than 5 minutes. A qualified Sindeo mortgage advisor can help you explore your options.

Dont settle for a low credit score. Dont settle for the old way of finding a mortgage. SindeoOne can help you find the right program for your homeownership goals.

Buyers Are Searching For Your House on line now

 

best deal condos

The most recent data from the National Association of Realtors revealed a slight bump in contracts with an increase of 1.6% in December. This news comes as existing home sales are also forecasted to be on pace for 5.54 million in 2017, a 1.7% over 2016, which was the best year for sales in a decade.

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed.

According to NAR’s Chief Economist, Lawrence Yun,

“Pending sales bounded last month as enough buyers fended off rising mortgage rates and alarmingly low inventory levels to sign a contract.”

The Bottom Line is

Buyers are out in force right now! If you are considering selling your home this year, the early months of 2017 will be your best option. Contact a local professional today to capitalize on current market conditions.

So the story this year will be in the early months of 2017 inventory in south florida will remain tight and price will will keep inching up

For More information on th”South Florida foreclosures”, “Florida foreclosure list”, “Florida housing market values”, “Miami Distressed Commercial investments”, “South Florida real estate deals”, “Miami courthouse auctions”, “Miami courthouse foreclosures”, “Florida spec homes”e following Give us a call 954-880-2550

6 Ways To Get Your Financial House In Order and Stay There

Sindeo Feb image

Key Takeaways:

  • If getting your financial house in order is on your “to-do” list this year, these tips will help you achieve that goal.
  • Explore six ways that you can start getting your financial house in order and the resources you need for success.

Giving Up On Your New Years Resolutions Already? 6 Ways To Get Your Financial House In Order and Stay There

Chances are you made a few promises at the end of 2016 – maybe it was to lose a few pounds, clean out your house or something realistic like get your financial house in order.  Roughly 42% of people who make New Year’s resolutions give up after week four.  Don’t be a statistic. Getting your financial house in order and achieving financial freedom is a dream of many —and with hard work, diligence and a plan, you can do it.

#1. Find the Best Deals  

Take inventory of all your home’s operating costs including cable and internet services, utilities like power and gas, telephone, yard and pool maintenance and others. Shop around to see if rates and packages have improved since you signed on with the service.

Cable and internet companies are always running specials and want to keep your business. If you live in a state where your energy is deregulated, you may be able to find a better rate. And, if you have  not compared in-home services like housekeeping, pool cleaning and landscaping, you’re likely spending too much.

Set your alarm for six months from now to review all your services again. Its a great habit to always be on top of your charges and shop the best available deals.

#2. Stay On-Top of Your Credit

We all know the importance of our credit; it impacts so many areas of our financial lives. Request a copy of your credit report and review it for any mistakes or errors. You are entitled to a free copy of your credit report once every 12 months, and can do so here.

If something isnt right, heres how to fix mistakes on your credit report . Once they are resolved, here are ways to improve your credit score too.

Monthly credit monitoring services can help you stay on-top of your credit score. It will help you gain a better understanding of how small changes in your financial life can have a big impact on your score.

#3. Save More, Automatically

Out of sight, out of mind —right? This year, resolve to save more. By setting up automatic payments to yourself, you can make the process of saving easier. Also be sure to max out your 401(k), or at least contribute what you will get in your company match. There’s no reason to leave that money on the table.

If you’re saving for a new home, you might also consider some of these creative ways to save for a down payment.

#4. Be (Properly) Insured

Insurance companies (much like your cable and internet providers) often give introductory rates to gain your business, but as time passes your rates start to go up. Part of your yearly review of your finances should include reviewing your insurance policies to ensure 1) you have the coverage you need and 2) you’re not paying too much.

Many insurance companies give a discount if you hold several policies with them —home, auto, life, etc. You might consider consolidating to get a better deal. And, if you can afford a higher deductible, you could also save on your monthly premium. Just make sure you resolve to explore your coverage options and costs to make sure you have the package that works best for you.

#5. Reduce Your Debt

Your debt-to-income ratio, as well as your credit utilization, have a major impact on your credit worthiness. Paying down your debt is not only good practice, it gives you more room to leverage credit in ways that make sense for your financial situation.

Clark Howard offers these 5 simple steps to getting out of debt, while Becoming Minimalist suggests these 33 proven ways to reduce personal debt —some of which are quite creative.  

#6. Review Your Mortgage

The terms of your mortgage may have worked for you at the time you purchased your home, but it’s likely a lot has changed. Do you have a sustainable mortgage to help you retain your home? Is your mortgage type right for your financial goals? Could you reduce your total debt and interest rate payments by consolidating loans?

With SindeoOne, you can explore over 1,000 loan options with a single application that can take less than five minutes to complete. Our experienced mortgage advisors will also help educate and advise you on all your options so you can make the best decision for your family.