Colorado Mortgage Information

Important Tips For Home Buyers

Fri, 19 Aug 2005 10:10:00 MDT

If you are considering buying a home or have spent many years saving in preparation of buying a home, the questions and process involved in buying a home can be extremely stressful. As exciting as it is to begin looking for your new home, there are many unexpected costs and details to be considered before contacting a real estate agent. Home buyers should be aware of every aspect involved in purchasing a home before they take that big step towards home ownership.

You will want to get the most value possible for your money. You should be aware of every detail in regard to the home you wish to purchase. Home inspections can reveal many hidden flaws and problems that could cost you thousands of dollars in repairs. Be aware of your right to a home inspection and contact a professional, licensed home inspector.

Compare the mortgage terms and interest rates offered by various mortgage lenders. Even a slight difference in your interest rate can add up to thousands of dollars over the length of your mortgage. A pre-approval from the lender of your choice will not only give you added confidence when shopping for a new home, but could give you added leverage when bargaining with the seller. A pre-approval will let you know the exact amount you are approved for and will save you time after your offer has been accepted by the seller.

Using a buyer agent is an excellent way to help protect your interests when shopping for a home. A buyer agent will be responsible for helping you get the best deal possible on your new home. While shopping for a home, be aware that certain features can adversely affect the resale value of the home. Detached garages and swimming pools can actually lessen the value of the property. Protect your investment by educating yourself on the home buying process and the way property is appraised.

You can make the home buying process fast and painless if you take some precautions along the way. Choose your lender carefully. Interest rates and closing costs vary from lender to lender and the difference could mean thousands of dollars over time. There are numerous flexible loan programs available. Finding the loan that will best suit your long term needs will be of great value to you when it is time to sell the home. Just a half point difference in your interest rate will translate into a lot of money over the years.

Keep in mind that there are additional costs involved in purchasing a home. Homeowners association fees, furniture, annual heating and cooling costs, and homeowners insurance need to be considered when planning to purchase a new home. Buying a new home does not have to be stressful and frustrating. Make sure you know the facts and your home buying experience will be quick and painless.

About The Author: This article provided courtesy of http://www.utah-real-estate-shopper.com

Are You Ready For A Home Mortgage Loan?

Wed, 10 Aug 2005 10:53:00 MDT

by Terry Lowery

Buying a Home and Committing to a Mortgage can be very scary!

A home mortgage loan is the largest debt that most Americans will take on in their life time. As such, making the decision to take out a mortgage is not one that most first time home buyers take lightly. Not only will your monthly mortgage payments probably be the largest bill that you face each month, but the total amount of debt realized with a home mortgage loan can have a staggering, and sobering effect on the first time home buyer.

I can remember the months leading up to my decision to fill out a mortgage application. I had nightmares about loosing my job, not being able to keep up with my payments and finding myself homeless. And those were on the good nights when I was able to sleep at all!

Committing to a Home Mortgage Doesn’t Have To Cost You Your Sleep

In hindsight I realize that the fear that I faced when considering a home mortgage loan was irrational and the stress that I put myself under unwarranted. However, at the time, it surely didn’t seem that way!

Let’s take a closer look at common mortgage fears.

The major fear is that you won’t be able to carry the debt responsibility and you will loose your house.

Okay: worse case scenario, you are not able to keep up with the payments, the lender forecloses and you do loose your home. What are you really loosing? Something that you do not have right now anyway! Therefore, even with the worse case scenario, you will not be any worse off than you are right now. Furthermore, it is important to realize that the chances of the lender foreclosing are pretty slim. The lender doesn’t really want your home, he wants you to make good on your home mortgage loan, and will usually work with you to make that happen.

You should also remember that the fear of loosing your home is one that you already faced and survived. When you signed your first lease on an apartment you were taking that same chance. If you were not able to pay your rent your landlord would have made you leave your home. Taking out a mortgage can be less scary once you realize that this is a fear you have already faced and conquered.

Knowing You Can Afford the Mortgage Will Allay a Lot of Fears

You can lesson the amount of fear that you will experience when you sign on the dotted line of a mortgage application if you are confident that you will be able to handle the monthly payments. Therefore, it is important to take stock of your financial situation before applying for a mortgage.

Sit down with a real estate agent and honestly discuss your financial situation, this includes your income and your expenses. It only makes sense to determine how much of a home mortgage loan you can comfortably afford, and it is essential to having financial confidence and avoiding common mortgage fears.

Now, quit worrying and go out and look for your new home!

About The Author: This article provided courtesy of http://www.2nd-mortgage-guide.com

The latest rates are in... (News Roundup)

Tue, 9 Aug 2005 16:29:00 MDT

Some recent bits of financial news that have been floating in:

U.S. consumer spending grew by 0.8% in June of 2005, while the nation’s savings rate feel to a paltry 0%. [via Marketwatch]
The Federal Reserve Bank raised the short-term interest rate by a 0.25% for the tenth consecutive month today. [via CNN/Money]
The Detroit Free Press rightly suggests that you should consider your current financial situation before shopping for a mortgage. They offer up some valuable tips to home shoppers.
And our local Denver Post reminds us that the zero percent savings rate is the worst since October 2001. In that month, the savings rate fell to below zero, minus 0.2 perecent to be exact—a record low.

Don't Get Scammed When Repairing Your Credit!

Tue, 9 Aug 2005 09:46:00 MDT

by John Sanderson

If you are in trouble financially, then you may be tempted to answer an ad from a company that tells you that they can give you an entirely new credit identity, or remove bad marks from your credit report—whether or not they’re true.

The truth is, there are no shortcuts to building an AAA credit rating—it will take time and a lot of effort on your part to make it a reality. Meanwhile, there are some scams and traps that you need to be aware of so you won’t fall victim to one of these questionable credit repair companies. We’ve put together some guidelines to help you in the process.

First of all, be aware of any company that tells you they can remove true marks from your credit report. Generally, a credit repair scam that tells that it’s possible will try to bombard the credit reporting agencies with inquires and hope that they won’t respond in the given time-period. Or will simply take off the remarks to stop the incoming letters. Here’s the truth: even if the scam operation does manage to get a few bad remarks removed from your credit report, they can always be added on again should the lender prove that the bad marks were true.

Next, run as fast as you can from any company that offers to get you a new credit identity! Not doing so could land you in jail! Why? Because their mode of operation is to get you to apply for a tax identification number, which has the same amount of digits as your social security number, and then use it whenever applying for credit. The number will come up “clean,” and you won’t have to pay the consequences for your past bad marks. Now, here’s the downfall. Lying to the federal government about your intended uses for a federal ID number is a federal offense—and guess who will take the rap? That’s right—you—the person who actually filled out the forms “under penalty of law.”

Another sure sign that a company is operating a scam, and not a true credit repair company, is if they try and pressure you into signing a contract with them. They will likely want large, upfront fees and will tell you that the offer expires today, or use some other high pressure tactic. A company that is truly concerned about helping you to repair your credit will never pressure you or try and trick you into signing a contract with them. In addition, they will make it clear to you, that if you do change your mind within three days of signing, it’s the law that you will be release from any obligation.

Finally, you should accept that fact that no one can “repair” you credit if you’ve truly made some errors in the past. The only way to build a good credit report is to pay your bills on time, not extend your credit limits, and be careful not to apply for too many credit lines. Do all of these things on your own and you’ll soon find yourself with a great credit report!

About The Author: This article provide courtesy of http://www.debt-solution-guide.net

Refinance Online

Tue, 9 Aug 2005 00:06:00 MDT

by Carrie Reeder

If you want a low interest, low payment mortgage refinance, refinancing online could be the answer. There are many mortgage companies who specialize in mortgage refinancing online. No matter what your credit history, you can refinance your mortgage online and potentially save thousands of dollars in interest on your loan. With interest rates being at a historical low level, customers expect great rates and low payments from mortgage lenders. Online lenders can offer you free quotes and low interest rates when you apply for a mortgage refinance loan online.

Online lenders compete for customers by offering incentives and extremely low interest rates, even for a subprime loan. Bad credit will not disqualify you when you apply to refinance online. Subprime online lenders will offer you the lowest rates possible and easy terms on your refinance loan. Refinancing online is quick, easy, and convenient. You can be pre-qualified or even pre-approved in a matter of minutes. You can begin the refinancing process now when you complete a mortgage refinance application online.

If you have less than perfect credit, you can still qualify to refinance online. There are online lenders who specialize in subprime loans for those with poor credit history. As with any mortgage lender, subprime loans will have higher interest rates than loans for those with good or excellent credit. Subprime lenders, whether traditional or online, will assist you in getting the lowest interest rate possible for your credit situation. Bad credit will not prevent you from refinancing your mortgage online.

You should comparison shop when looking for online lenders. In order to get the very best terms when you refinance online, you need to compare the interest rates and monthly payments offered by various online lending institutions. Online lenders compete for customers and are currently offering amazingly low interest rates and may be able to drop the amount of your monthly payments dramatically. When shopping for online lenders it is wise to get quotes from several different lenders before making a decision. Finding the best interest rate possible can save you a lot of money over time. When you refinance online you will find mortgage experts who will assist you during each step of the refinancing process and will answer all your questions in a prompt, professional manner.

Refinancing online is an excellent choice when shopping for mortgage lenders. Your application will be processed quickly and one or more online mortgage companies will contact you promptly. If you would like to take advantage of today’s low interest rates, apply to refinance your mortgage online today. A poor credit history will not prevent you from qualifying for a mortgage refinance loan from an online lenders.

About The Author: To see a list of recommended refinance loan companies online, visit this page: http://www.abcloanguide.com/refinance.shtml – Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Mortgage rates going up

Fri, 5 Aug 2005 12:03:00 MDT

There are several sources reporting an increase in mortgage rates this week, making this the fifth consecutive week that rates have gone up. The average rate for a 30-year fixed mortgage is now at 5.82% and short-term adjustable-rate mortgages (ARMs) are at their highest point in three years.

”Long-term mortgage rates will more than likely rise over the next few months, albeit modestly compared to shorter-term rates,” said Frank Nothaft, vice president and chief economist at Freddie Mac.
”As the Federal Reserve increases its targeted overnight-lending rate, home-equity loans will become more costly. This is because many home-equity loans are tied to the prime rate, which generally follows every Fed rate hike. Currently, the prime rate is 6.25 percent and is expected by many to rise to 6.50 percent next week,” Nothaft said.

from Long-term rates seen moving upward on Fed rate hikes

As long as the Federal Reserve continues to raise short-term interest rates monthy, you can expect mortgage and credit card interest rates to follow. If you have been thinking about refinancing your existing loan, you ought to consider doing it soon.

Why Join The Credit Union? Better Benefits Are Hard To Find!

Thu, 4 Aug 2005 11:48:00 MDT

What is a credit union?

A credit union is a not-for-profit, cooperative financial institution that is owned and controlled by its members. Credit unions serve people that share something in common such as an employer or place of worship. Credit unions allow members to pool their savings, lend to one another, and have a voice in the governance in the organization. This aspect of credit unions is particularly appealing given the increasing alienation many consumers are feeling from mega banks.

Credit unions are similar to banks in that they offer many of the same services such as check and savings accounts as well as loans. Deposits are also federally insured with credit unions as they are with banks. Credit unions combine these services with many other benefits such as personal service, generally lower interest rates and higher investment returns.

Steps to take to find a credit union to join.

Contact your employer to see if your company provides this benefit. If not, ask them to consider making the valuable benefit of credit union membership available. If a family or household member is eligible to join a credit union you may be eligible to join because of your relationship. Also, try contacting occupational, fraternal, religious and alumni organizations you are affiliated with to see if they have a credit union you can join. CreditUnionRate.com is also a good source to use when searching for a credit union.

What are benefits of a credit union?

Because credit unions are democratic, member-owned cooperatives, every member, regardless of account size, has a voice in governance. Each year, your local credit union holds an annual election and meeting where members select candidates for the Board of Directors from among its members to represent them in setting the policies of the credit union. As a member-owner of your credit union, you are entitled to vote on credit union business and elect new board members. You can also serve on your credit union’s volunteer board or one of its committees. Credit union elections are based on a one-member, one-vote structure. This structure is unlike the for-profit, public companies where stockholders vote according to the number of shares of stock they own.

Once you become a member of the credit union you always remain a member – as long as you maintain an account. Even after your discharge from services or relocation you can still be a member of your credit union. Again, because you are a member-owner of your not for profit credit union you derive financial benefits that are reserved for stock holders at for profit banks. In other words, you get higher interest rates on basic savings (share) accounts, interest-bearing checking accounts and CDs. Many credit unions also pay “bonus” dividends in especially good years. Credit unions also offer lower interest rates on credit cards and loans than banks. This comes as a strong point in favor of the credit unions. Many young families who are just starting out have very demanding financial needs and most often they are required to stretch their limited dollars. From credit cards to car loans, credit unions consistently offer lower rates, better terms and lower fees.

This holds true even for mortgage rates and equity loans. Credit unions are known to provide better and competitive mortgage rates and equity loans. Not only are the rates low, but closing costs generally are much lower than those paid through a conventional lender.

Your local credit union helps you make the most of your money. From personalized service to low interest and high returns its easy to see why 89 million members depend on a credit union to meet their banking needs.

About The Author: Nicole Soltau is the President and Founder of http://CreditUnionRate.com – The Leading Credit Union Directory Search, Find, Join.

What To Look For In A Home

Sun, 3 Jul 2005 11:44:00 MDT

by Nicole Soltau

Searching for just the right home can be very exciting. You may plan ahead for the number of bedrooms and bathrooms that you want. Or imagine preparing for dinner parties in a sun-filled kitchen. Although these things are important, there is more to a good home purchase than the rooms it contains. Following are just a few suggestions to consider. Take some time to make a list and determine which additional priorities are important to you.

Survey the neighborhood during many different times of the day and days of the week. Are you comfortable with the noise, activity levels, traffic volume, etc.?

If you have, or plan to have children, check with the local school board about the neighborhood schools. What is the student/teacher ratio? How are the test scores? How involved are the parents? What programs are available for students? What credentials and how much experience do teachers bring to the task?

Is the foundation of your new home sound? Is it well built?

Are the existing appliances sound or will they need to be replaced?

Are the home’s major systems such as electricity, plumbing, heating/air, and roofing in good condition?

Is the home energy efficient?

How much major and/or cosmetic work will be required?

What will your commute look like? If possible, do a trial run during rush hour.

What is the crime rate?

What permits have been issued for new projects and/or construction in your new neighborhood?

Will you be expected to pay homeowner association fees? Are you comfortable with the covenants set forth?

Does the neighborhood provide sufficient recreational opportunities?

Will you be moving into a home or joining a community?

Is the local grocer clean and well-stocked?

Enlist the help of a good real estate agent, reputable home inspectors and others to help find a home with more than just a pretty face.

Beyond Mortgage Payments

Owning a home involves far more than keeping current with your mortgage payments. There are a number of costs associated with home ownership that extend far beyond the basics (i.e. principal, interest, taxes and insurance). Assuming responsibility for these costs can be a big financial adjustment. This is particularly true if, as a renter, you are accustomed to responding only to fixed expenses (i.e. rent) without much concern for variable expenses (i.e. broken pipes and new water heaters). Well, now you are the landlord and it is up to you to handle the mortgage, in addition to all of the variable expenses of home ownership.

Routine and emergency maintenance issues are an inevitable part of homeownership. The dishwasher will need to be replaced, the roof may begin to leak, or the furnace will give out. You can minimize the financial fallout by planning ahead and budgeting in anticipation of these expenses. Recommendations vary, but you would do well to save an amount equal to at least 2% of the cost of your home for annual upkeep and maintenance. Set aside funds toward this amount each month. In this way you will eliminate the scramble and panic of getting the funds together to get that tree off of your roof.

In addition to maintenance and upkeep, there may be other costs you will need to absorb. These include water, sewer and sanitation expense; homeowner’s insurance, and property taxes. It is important to understand the full cost of home ownership before you sign on the dotted line. You can build confidence in your ability to handle these new expenses by making a trial run. Do your best to estimate the total cost of home ownership. Use that information to make a budget. Before you sign on the dotted line, live within that new budget and see how well you manage. You may find that you have adequate financial resources, that’s great. If you find that you are a bit short, you may need to make some adjustments. Being proactive now may help you avoid foreclosure in the future.

About The Author: Nicole Soltau is the President and Founder of http://CreditUnionRate.com – The Leading Credit Union Directory Search, Find Join.

Simple Steps To Improving Your Credit Report

Mon, 27 Jun 2005 11:35:00 MDT

by www.creditandyou.com

Even if you think you have a wonderful credit report, be wary of the error factor. Just as you receive mail with your name and address misspelled, your credit report can have errors as well. Whether it’s human error, out of date information or even mistaken identity, errors occur more easily than we’d all like to think.

Under the law, both the credit reporting agency and the organization that provided the information to the credit reporting agency have responsibilities for correcting inaccurate or incomplete information in your credit report.

So, if you find an error on your credit report, be sure to notify the credit bureau in writing immediately:

Tell the CRA what information you believe is inaccurate on your credit report. Include copies, never originals of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your credit report that you dispute. State the facts and why you are disputing the information. Enclosing a copy of your credit report with the items in question circled can be helpful. Though you may think your reason for writing is obvious, be sure to request that the error be corrected. Send your letter by certified mail, return receipt requested so you can document what the credit reporting agency received. Make sure your letter is dated, and don’t forget to keep copies of everything you send. Credit reporting agency must reinvestigate the item(s) in question, usually within 30 days unless they consider your dispute frivolous. They also must forward all relevant data you send them to the information provider (bank, credit card agency, etc.).

After the information provider receives notification of a dispute from the credit reporting agency, it must review and investigate all relevant information provided and report the results back to the credit reporting agency.

If the information provider finds the disputed information to be inaccurate, it must notify all nationwide credit reporting agency so that they can correct this information in your file.

Disputed information that cannot be verified must be deleted from your file.

Inaccurate information must be corrected by the CRA.

Incomplete information must be corrected by the CRA.

Any account that belong only to another person must be deleted by the CRA.

NOTE: Credit repair can be long and tedious, the importance of knowing your rights cannot be emphasized enough so be sure you take time to digest this information.

About The Author: To find more easy steps anyone can take to repair there credit report and what to do after the investigation visit http://www.creditandyou.com/creditrepair.html it’s a free information website!

Consumer Action: Putting The "Freeze" On Credit Files

Thu, 23 Jun 2005 11:34:00 MDT

by James Dimmitt
Copyright © 2005 James Dimmitt

In the wake of 40 million MasterCard, Visa, Discover, and American Express accounts recently being breached, consumers and legislators are scrambling for ways to protect their personal and financial information from being hijacked and used fraudulently by hackers and ID thieves.

One type of privacy protection being widely debated is the option to “freeze” your individual credit reports. Californians have been protected by such a law since 2002. Vermont, Texas, and Louisiana have also passed “freeze laws” and other states are taking a closer look at enacting similar types of consumer protection.

Placing a freeze on your credit files with the three major credit reporting agencies – Experian, TransUnion, and Equifax – effectively shuts out potential lenders from accessing your credit files in order to make you an offer for credit. It would also protect your data from being used by identity thieves. When applying for new credit accounts or loans, consumers would use a special password to “unfreeze” their accounts.

Consumer advocates who support such a freeze point out that this type of privacy protection “prevents the damage before it occurs.” Consumer action groups see this as one of the most effective measures available because it places the control in the hands of the consumer and not the data-collecting agencies who profit from selling consumer information.

Companies that sell credit file data, including the credit reporting agencies, argue that freezing credit files is “overkill.” For some people, such a freeze could become a constant hassle. Before applying for a loan or opening a new bank account, they would have to contact the credit bureaus to temporarily unfreeze their files, a process that could take several days.

They also claim it would prevent consumers from taking advantage of instant credit promotions such as “10% off purchases” when applying for a new store-issued credit card. And applying for a mortgage would become “more complicated, with even more paperwork.”

Whether you feel the option of being able to freeze your credit data is a good idea or a bad idea one thing is becoming increasingly clearer – consumers want more control over who has access to their personal and financial information.

About The Author: James H. Dimmitt – James is editor of “TO YOUR CREDIT”, a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book “IDENTITY THEFT- How To Avoid Becoming the Next Victim!” and other free bonuses by visiting http://www.yourfreecreditreportnow.com