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

Foreclosure looming?

Are you behind in mortgage payments? Your financial life and world spinning out of control? Are you overwhelmed by all your debts? You should check out all your options. Go see a debt counselor and go see a bankruptcy attorney. Tell them both that you are seeing the other one before you make a decision what to do. Bankruptcy would be the easiest way to start over and get back on your financial feet. Yes, it will take time to get your credit scores back and you will not be able to buy a car or get credit cards for a few years. You need to make a plan to be sure you are covered in those aspects.

If you let your home go into foreclosure you will not be liable to the mortgage payments any longer, but the bank may send you a 1099 for the money they forgive. Can you afford to pay the extra taxes. You may also want to see your tax person to see the consequences of getting a 1099.

The other option with the debt counselor: Can you make the payments they set up? They will most likely negotiate with your creditors to get a lower balance and lower interest rate. Remember as soon as you sign up with the debt counselor and they negotiate with your creditors it will show up on your credit report. A debt counselar is a negative to lenders. Remember why would they loan you more money if you need a debt counselor to pay the debt you have.

What ever you do, explore your choices. Then make a sound decision on what you can do. The sooner you start the sooner you get back on the path of good credit. For more on credit scores, and Michigan mortgages go to my website www.RussRavary.com

Credit and buying your own home

Building your credit is a important step in buying a home. With banks tightening the credit guidelines it is more important than ever to get your credit report and go over it with a professional. A mortgage person, a loan officer, a bank loan officer are all people that can help you get a credit report and get you started on clearing up your credit.. All of us should help you, after all we want you to come back and use us.

Bad credit is nothing to be ashamed of. Most of us go through it at one time or another. I had bad credit when I was younger, but I climbed out of it. If you live in Southeastern Michigan and want to buy a home I will be glad to sit down and go through your credit report line by line. I can help your clean it up so you can buy a Michigan home. It is not hard, it just takes a little time.

The most important thing is to get started today to see what your credit report looks like. Once you know what your credit is, then you can take the steps needed to get starting toward owning your own home. You may have great credit and be able to get pre-approved for a home right now. Call me today on my cell at (313) 310-9855 or office (734) 414-3261 or email me at ourmortgageguy@yahoo.com For more on Michigan credit scoring or Michigan mortgages feel free to go to my website http://www.russravary.com

Have a great day "your local Michigan mortgage specialist" Russ Ravary

Changing Mortgage market

Changing Mortgage market
Everybody knows that the mortgage market is changing, but here is a little update. Most of the banks are now doing even higher "hits" to high loan to value (LTV) loans based on credit scores. Loan to value means how much you owe compared to how much the house is worth. For example if you owe $160,000 and the house is worth $200,000 then your Loan to value (LTV) is 80%. Normally the banks give hits for anything over 80%. The higher the loan the higher the "hit" "Hits" are something most borrowers never even know about, but that is figured into how your rate is determined.
What is new in the last few months is that the lower your credit score the higher the hit. It can affect your rate up to 3/8 of a percent. Now the mortgage market is truly making a difference between good, better, and best credit scores. So it is more important than even for borrowers and consumers to keep on top of their credit.
For more information on mortgages go to my website http://www.russravary.com/ You can search for Novi real estate or Plymouth real estate for free. Or search for any Southeastern Michigan homes for sale without giving any information.

First time home buyer

Buying your first home can be scary, but if you follow these tips, you will do just fine! Many young people do not realize that they can afford a home, they can get approved for a mortgage. Sometimes you need little or no money to buy a home. There are Government programs for first time homebuyers (FHA) and there are 100%, no money down programs.

The key is to plan ahead. You may need to repair your credit, save for a down payment, get more time on a job, save for closing costs. You need to know what you have to do to get started. You may be one of the "great buyers" and have everything you need to get started right now and not know it!Many times you do not need money. We can ask the seller to pay your closing costs. There are many programs that offer low rates and no money. 100% financing may be the way to go for you. But taking the first step and seeing what you need to do now is important. It will make the home buying process so easy. Call me to set up an appointment to go over your credit report, and credit scores.
You may have imperfect credit, have to much debt, or improve your credit scores. The key is to get started. Even though you may have bruised credit, or too much credit I have helped many people improve their credit. They then we able to buy homes.
Create Your "Wishlist"Make your wish list. Focus on the features you want in a home: 2 bedrooms or 3? 1 bath or 2? Garage or no garage? Knowing what you're looking for will help you focus your search. And it will help your local Wayne County real estate broker, too.

Search Michigan houses for sale. Think about where and why you want to buy in an area. How far to work? School? Family?Drive by, and look at many Wayne County homes (again we handle Oakland County houses for sale, Washtenaw county houses for sale, Livingston County houses for sales, as well as Wayne county houses for sale. We just use Wayne county as an example in this report). See as many possible to get a better feel for ones available in your price range. Visit my site often and search for homes. Keep track of what you like and dislike about each home that you visit by printing and using our Home Visits Worksheet.
Also consider the market value of the home, any special circumstances surrounding the sale of the home, how much you can afford to pay for the home, and the condition of the home when determining whether the home is right for you.
When you find a Wayne County home in your price range and you want to buy it, visit the Wayne County neighborhood at various times to get a more complete understanding of its activity. Talk with your prospective neighbors about what it's like to live in the area. Take a day and commute to your job from the area. And look at the home more critically -- you may discover flaws you hadn't noticed during your first visit.
Another aspect to consider is the financing you will use to purchase the home. For example, the seller may help pay closing costs such as transfer taxes or points on a mortgage. If this is the case, you may be more willing to accept the seller's asking price. Your local Wayne County real estate sales professional (Russ Ravary) can offer some assistance regarding how much you should offer, but the final decision is yours.

basic mortgage information

How to stop renting and buy a home of your own your
Are you looking to buy but have no money,
You can buy with no money down your
Looking to re-finance click here ,
Credit & Credit Reports- How do I improve my credit score,-
Have no idea how credit scores work find out how, -
did you know best credit is unused credit, -
tell me everything about a credit report that you can-
did you know that you can get a free credit report-
how to read your credit report - by doing doing these things can hurt your credit,

Different types of Mortgages-
Can you tell about the key elements of a mortgage?-
what is the difference between a home equity loan and line of credit?, -
here are 6 things you should know about mortgages-
here is a general over all view of the different types of mortgages -
What is an FHA , VA mortgage?-
what is the difference between a fixed rate loan and an adjustable rate mortgage?-
what is PMI? -
determine if an adjustable rate mortgage is right for you -
What types of mortgages does Global Mortgage do?
- here are different types of ARMS (adjustable rates loans) and definitions-
did you know that a forty year mortgage payment is about the same as an interest only payment,
Thinking of buying a home and need a mortgage- Do I need to get pre-approved to buy a home? -
What are the benefits or advantages to own versus renting?-
before you raid the 401K for your down payment read this-
what's the difference between pre-approved and pre-qualified?-
Should I should I buy points to lower my rate?-
Can you explain the bi-weekly programs or how to cut the years down, -
I am thinking about taking a home equity to buy stocks, should I?-
I have had a bankruptcy and I want to buy a home

I have been in the mortgage business for seven years now. I have worked in shops that have specialized in hard to do loans, and a shop that specialized in people with good credit (we beat the banks rates and fees day in and day out) So whether you are self employed, have financial difficulties, been in bankruptcy, or have great credit I can help you out with good rates and lower closing costs. My philosophy is to do more loans at a lower price and I will get more referrals. I will make up the money but getting more loans. It has worked for me over the years. I have done over a $100 million dollars of loans for my clients over the years. What that means to you is that I have a lot of experience in doing loans for people with great credit and for people who have had credit problems. So check out what I can do for you. I am the type of person that I will not do the loan just to make money if it does not make sense for you. There are a lot of mortgage guys that will put you into a bad loan just to make money. So if you are looking for a Michigan Mortgage give me a call at (313) 310-9855 or email me at ourmortgageguy@yahoo.com.
FHA Loans General FHA Loan Information

What are points? Mortgage Information

If you have good credit, you should never have to pay points!!! The only reason to pay points when you have good credit is to buy discount points to get the rate down. You should know or have a general idea of what rates are. So let's say for example rates are 6% at some of the local banks and mortgage brokers. But you know you are going to stay in the house for a long time, you are a saver, and rates are pretty low. You can buy down the rate by paying 1 or 2 discount points. 1 point usually lowers the rate by a 1/4 of a percent and 2 points usually lowers the rate by 1/2 percent.
A point is one percent of the loan amount. So if your loan was $200,000, 1 point is $2,000 to lower it a 1/4 % from 6 to 5 3/4%. 2 points is $4,000 to buy the rate down 1/2 percent to 5 1/2%. The amount points buy down a rate vary from each bank or mortgage broker so be sure to check with them what the cost of the point and how much it will bring down your rate.
The reason you don't want to buy points usually is because it takes anywhere from 4 to 7 years to re coup the money from buying the points. So if you refinance or sell your house during that period you lose that savings. You just threw that money out the window. Most people refi or move during that period.
Let's continue with that example. A $200,000 30 year fixed loan at 6% will have a payment of $1199.10. If you buy that loan rate down a 1/4% you would have a $200,000 30 year fixed rate at 5 3/4% with a payment of $1167.15 that cost you $2000 to do . A savings of $31.95 a month or $11,502 saving over the life of the loan! If you minus the $2,000 cost for the point then it is $9,502 over the life of the loan. Quite substantial. But only if you stay in the loan.
To figure your breakeven point you take the cost of the point ($2,000) and divide by the savings ($31.95). $2,000 divided by $31.95 = 62.59 months. It would take you about 63 months to break even. So you would have to stay in the loan for 5 years 3 months before it is a benefit to you and you actually start saving money. For more mortgage information go to www.russravary.com May today's troubles disappear quickly for you. Russ Ravary