Improving your credit score

You can take steps to improve your credit score. There are many variables that come into play with credit scores. Here are some good guidelines.

To get a great score is pay your bills on time, keep account balances low, and take out new credit only when you need it. People who do that faithfully have very high scores. It usually means that you use credit wisely and you are not buried in debt. Start by pulling your credit report to check your credit score to see where you are. What you're looking for on your report are factors that could be affecting your score. Look for errors in the report, such as accounts that aren't yours, late payments that were actually paid on time, debts you paid off that are shown as outstanding, or old debts that shouldn't be reported any longer (negatives are supposed to be deleted after seven years, with the exception of bankruptcies, which can stay for as long as 10 years).

Call or write each credit scoring company with the errors. Sometimes it can take up to four weeks for errors to be corrected. Be sure to have paperwork proving you paid the debt or a letter from the creditor as proof.

After repairing errors, the fastest way to a better score is paying down balances on credit cards. It is possible to increase your score 20 points by paying down your credit lines," because the credit bureaus look at how much debt you owe as compared to how much the available credit is.

If you have had a few late payments in your past get auto deduct from your checking account or savings account. If you find yourself in some financial difficulties, you can protect your score by making sure your payments don't go 29 days past due. Even if you've paid your bills late in the past, you can improve your credit score by paying every bill on time from now on. Though it will take time for the history to show up.

One thing you shouldn't do if you're just trying to boost your score is close unused accounts. It won't help you and it can hurt you. Closing unused accounts without paying down your debt changes a ratio that the credit bureaus look at. The credit bureaus look at the amount of your total debt divided by your total available credit.

When you appear closer to maxing out your accounts your score can drop. Credit scores can sometimes reflect when people are using credit cards and equity lines to stay alive financially.

The length of your credit history is another factor in your score. If you close the account of the credit card you got when you were a freshman in college and leave open the ones you just got within the last couple years, it makes you look like a much newer borrower. Keep a couple of the oldest open. Don't worry about the interest rate is, just don't use that card. Creditors don't care what the rate is., they care about the history and the length the card has been open. Creditors and mortgage companies also like to see three credit lines open for 1 to 2 years. The higher the credit limit the better they like it.

Working with credit card balances is another strategy for bringing up your score: Transfer balances from a card that's close to being maxed out to other cards to even out your usage. Or just spread out your charges between a few cards. Try to get the usage on all of them at 20 to 30 percent instead of a bunch at zero and one at 85 percent. Remember the credit reporting companies drop your score when you get close to maxing out your limit on credit cards. It is better to have 2 or 3 at 33% than one at 90%.

Rapid rescoring If you're in the middle of qualifying for a mortgage and need a score boost in a hurry, you can speed the process along with rapid rescoring. If you've got legitimate negative information on your credit report, such as late payments or accounts in collections, you're out of luck. But the process of rapid rescoring can help increase your score within a few days by correcting errors or paying off account balances.

You can't do this one yourself; you'll need a lender who is a customer of a rapid rescoring service. Generally, the service will run roughly $50 for every account on your credit report that needs to be addressed, but it could save you thousands on your loan. If a consumer can find a lender who is a customer of a rapid rescoring service, new information can be posted within 72 hours.
The bottom line, the experts say, is that you're not powerless when it comes to your credit score.
There are a lot of things you can do to improve your score. For more help email me at info@RussRavary.com or go to my website www.RussRavary.com

Seller paid closing costs

Do you have a little bit of money to put down on the Michigan real estate that you want. Let's say you have 3 -5 % to put down but you do not have enough money to pay for mortgage closing costs or to pay the prorated taxes on the Michigan Home. How do you buy the house?

Depending on the mortgage lender that you go with mortgage closing costs are from $1200 - $2500. That is not even counting setting up an escrow account or paying back the prorated taxes on your new Michigan home. So what can you do when you found the home of your dreams? Your mortgage lender and your real estate agent need to talk. You need the seller to pay for your closing costs. Some lenders allow a home seller to pay 3 to 6% of the closing costs. most lenders allow at least 3% of the mortgage closing costs to be paid by the seller.

By asking for 3 or 4% to cover your mortgage closing costs will save you from borrowing the money from family members and allow you to buy your new Michigan home. This is very common in many Michigan real estate transactions. Sellers are willing to give sellers concessions to get the home sold and have a solid deal.

But remember the seller paid closing costs is money out of the seller's pockets. The seller will then get less money than if he sold the house without seller's concessions. The seller may not be willing to give seller's concessions and a lower price.

So if you have the money for mortgage closing costs and you want a low price on the homes do not ask for seller's concessions.

For more on Michigan Mortgage Rates, Michigan mortgages, Credit information, How to buy a bargain Michigan Home and Michigan Real estate go to www.RussRavary.com

Bear Stearns & the mortgage fallout.

Boy I was right! I had predicted that there would be bank troubles. I could not imagine that banks can take these kinds of hits. Banks are losing a lot of money when they go to re sell these foreclosed homes. I was in one Detroit foreclosure on Saturday. The bank had not gotten to the home quick enough and the pipes had frozen. There was tremendous water damage.

The bank was owed over $150,000. They had it up for sale for $39,000. There are all sorts of foreclosed homes that the banks are losing 2/3's of its investments. How can banks take those types of hits? THEY CAN'T AS WE FOUND OUT WITH BEAR STEARNS.

Now here is a prediction from me. There will be another one. It is a West Coast Bank that did a lot of exotic mortgages. They were a bigger seller of option arms. They also did sub prime mortgages. I don't see how they can survive.

For more on Michigan mortgages go to my website www.RussRavary.com or if you would like a Michigan foreclosure list of your city email me at Info@RussRavary.com

Is it a great time to buy or not

My perspective on this is that home prices will continue to fall this year. BUT WHAT WILL INTEREST RATES DO? Remember that if rates rise one percent the cost savings you save on the price of the house may be lost in higher mortgage payments. Nobody knows where the interest rates will go or when the housing market will bottom out.

So what I recommend to anybody that is thinking about buying a home is watch the area you want. Browse the Michigan homes for sale on my website on and off. There may be a home that comes up. It may be your dream home. It might sell before next year.

You may not see any home you like for 6 months to a year, but you may find the exact home you want 4 months from now. The bottom line is getting the home you want. It may not be at the absolute rock bottom price but if rates are good I would consider putting an offer in on the home you want. For more on Michigan Mortgages, Michigan Real Estate, Detroit Real estate or to search over 70,000 Michigan Homes for sale feel free to go to my website www.RussRavary.com If you want a Michigan Foreclosure list email me at info@RussRavary.com

How mortgage brokers get paid

I am a mortgage broker. And I am not afraid of telling you how we get paid. Banks and lenders want to sell loans. The more they buy, the more they can sell to bulk mortgage investors. Whether banks sell loans in house or get mortgage brokers to sell them for the bank, the bank pays it's employees or mortgage broker a commission.

I once did a Michigan mortgage for a client. He asked which bank it was going through. I didn't think anything of it. He called me the next day and asked me how I could get a mortgage interest rate cheaper than the bank itself was giving out. He couldn't believe it!

Here is the secret. Banks and lenders sell mortgages to investors. They have to set mortgage interest rates according to what the bulk investors will pay that day for the mortgage. So what the bank and the lender do is send out rate sheets by email and fax to mortgage brokers.

For example a bank or lender may 1% of the loan amount for a 6.0% mortgage. Then they may pay 1.45% for a 6.125% mortgage. They may pay 2.5% for a 6.5% mortgage.

So the mortgage broker decides what he is willing to make on a loan. Some mortgage brokers like me work on volume and are willing to give a lower rate. Where other mortgage brokers may charge a little more. We as mortgage brokers represent 20 -30 banks. We see what they want to charge and we can shop your Michigan loan around.

Remember mortgage brokers and banks are getting a paid a percentage of the loan amount. So usually they like loan amounts over $150,000. Small loan amounts under $80,000 they do not make much money on and can be more trouble than they are worth. Think about it. 1/2% of $60,000 is $300 whereas 1/2% of $200,000 is $1000.

So know you know how banks, lenders, mortgage brokers make their money. That is why different places have different rates and closing costs. Sometimes mortgage brokers pay some of the fees out of their commission. Which is good for you the consumer. You can get a good rate and good closing costs. For more on Michigan mortgages go to my website www.RussRavary.com For Michigan things to do, Holiday trivia, Michigan facts, real estate tips, mortgage information. Or email me at OurMortgageGuy@yahoo.com for Michigan Mortgage rates

Pre-approval letter.

Pre-approval letters
So you were pre-approved last year for a Michigan Home. That approval letter may not be Worth the paper it is printed on! Banks and Lenders have tightened up lending guidelines. In the last year mortgage lending has completely changed. There is no more 100% loans in Michigan. Even 95% loans are getting tougher. Though the alternative is an FHA loan. With an FHA loan you can get up to 97% of the purchase price and have the seller pay some of the closing costs.

Every week banks and lenders are looking at how to stop their bleeding. How to stop foreclosures. That is why they are tightening up the lending guidelines. Banks do not want to take the risk. Some people that bought homes in the last 5 years can not even refinance because many lenders do not do sub prime loans anymore. They do not have the mortgage programs they had last year, or even 6 months ago. Even a 620 score is not considered very good anymore.

So don't get caught with your pants down. Get your pre-approval today from a qualified lender. If you are thinking of buying a Michigan home give me a call. I will help you get pre-approved, straighten your credit out so you can buy a home of your own. For more on Detroit Real Estate, Michigan Real Estate, Wayne County real Estate, Oakland county real estate go to my website www.RussRavary.com I have lot of great Michigan mortgage information, credit report information, Michigan home buyers tips

Michigan Foreclosures

Michigan Foreclosures, Northville Foreclosures, Farmington Hills foreclosures - what to remember

When buying a Michigan foreclosure, REO, or any bank owned property around Michigan, Oakland County, Wayne County, or Livingston county you need to remember a few things.
1) When buying a Michigan foreclosure remember to read and re-read the contract and addendums from the bank. Many times the bank has language protecting them. Sometimes they push some of the title closing costs on you. Beware. Anything you do not understand ask your Realtor to explain.
2) When buying a Michigan foreclosure remember that the bank is not going to fix anything. You are buying the home "as is".
3) When buying a Michigan foreclosure you should always have an inspection clause and have a professional inspect the property. Don't let uncle Joe inspect your Michigan foreclosure. You need to be aware of all the possible problems with the home.
4) When buying a Michigan foreclosure remember it takes time to get the deal closed. Most foreclosure departments are only open during the week Monday through Friday. Be patient when bidding on a Michigan foreclosure.
There are many Michigan foreclosures out there. There are many bargains in the Michigan foreclosures. If you would like a list of Michigan foreclosures sent to you email me at info@RussRavary.com or email me at OurMortgageGuy@yahoo.com I will send you a list of Michigan foreclosures in the city you request that you can open and browse through at your leisure.
For more on Michigan foreclosures, Michigan Real estate, and Michigan Mortgage go to my website www.RussRavary.com see my website for Michigan real estate investing (Flipping) or to search over 70,000 Michigan homes for sale free

Michigan mortgage rates

Michigan mortgage rates are once again on the rise. The reason being is that investors are shying away from buying mortgages and mortgage back securities. Investors are wary of putting money into mortgages.

What that means to mortgage companies and consumers is that rates may continue to rise even though the Fed continues to cut the rates. You can see my article on the difference between the Fed rate and the mortgage interest rate at www.activerain/blogs/russravary It explains a lot why it happens.

The bottom line is that mortgage rates do not always go down when the Fed cuts the rate. Especially right now when big investors are afraid of buying mortgages. No pension fund manager want to take a chance on putting somebodies retirement at risk because of the mortgage fiasco. Not many foreign investors want to take the chance at this time either. What that means is that mortgages are getting harder for the banks and lenders to sell. Rates may continue to rise this year.

For more on Michigan mortgages, Michigan real estate go to my website www.RussRavary.com Search over 70,000 Michigan Homes for sale at your leisure. Email me for a Michigan foreclosure list in your city at info@RussRavary.com

What has happened in the last week

Detroit mortgage market and Michigan mortgages. A lot has happened in the last week in the mortgage world. That what happens when you go on vacation in Florida and try to keep up by phone and glimpsing at the news.

Most of Southeastern Michigan real estate has been determined a "declining market." What that means to you as a consumer in Michigan is that banks and lenders are going to loan less on your property. Some banks are reducing the amount they will do for home equity loans. They used to loan up to a 100%, now some banks will not even loan 75% of your homes value. One of the ladies at my wifes office was upset with their loan officer and bank because of the "declining market" situation. The bank was making them come up with an extra 5% to buy the home. The ladies husband thought he was going to be able to talk the bank out of it. But they didn't. They had to put more money down. It doesn't matter even if you have the greatest credit you have to put more down.

It is not about the credit. It is about the value of the house. Why would a bank loan 95% on a house and have the chance that it may be only worth 90% next year! You the borrower would owe more than it is worth. The bank doesn't want those types of loans. It wants to protect it's assets. It wants you to have a financial interest in what you buy.

One of my fellow realtors got an email from his mortgage broker quoting that by March 1 most banks are only going to loan 90%. That means buyers will have to come to the table with 10% down or do a FHA Loan. Most buyers don't have 10% to put down, so FHA may be the loan of choice for many people. FHA loans may be the only choice for many people. If you are thinking of buying a Michigan home and want to see your mortgage choices.

Many people will be trapped in their Michigan mortgages and will not be able to refinance because of the lower loan limits. The key for many people now is to work harder at paying off their second mortgage. Reduce that higher payment. Get rid of that high interest payment. Pay extra on your second mortgage.

For more on Michigan mortgages and Michigan real estate go to my website www.RussRavary.com