Having an online presence has become a standard in the business world today. Businesses that do not have a website are in the minority and businesses that do not take advantage of online marketing are missing out. For new and growing small businesses in particular, establishing an online presence and an online marketing plan is an important if not crucial factor in their success or failure.
For small businesses that are serious about establishing an online presence, the website should be optimized for the keywords or keyword phrases relevant to the products or service from the ground up. A common mistake that small businesses make is to design and publish a website without doing any keyword research. Keywords are what the search engines zero in on to find and categorize websites. The search engines---especially Google---especially pay attention to relevant content. In other words, the search engines pay close attention to the text, including the domain name of websites. The online marketing industry is so competitive, that it behooves you to play every card you can when it comes to optimizing your website. With that in mind, the best practice is to do keyword research prior to purchasing a domain name. There are a number of free keyword research tools available, including Google's Adwords Keywords Tool.
With these tools, you can see what keywords or keyword phrases relevant to your product or service are the most popular on the search engines. Once you have established a number of the best keywords and phrases, you can then determine what domain names are available that most closely match. Also, you can use those keywords throughout your site for further optimization. Many online marketers also make use of keywords in a blog that is designed to drive traffic to the primary website.
Taking site optimization a step further, the images on your website can be "tagged" with relevant keywords. This is just another way to attract the attention of the search engines for your particular keywords or phrases.
Again, the moral of the story is website optimization from the ground up through careful keyword research and planning. It is much easier to design the site around the keywords and phrases rather than to overhaul an existing site that was built without your keywords in mind.
Sponsored by Personal Financial Guide and Affordable Homes Oklahoma
Thursday, April 30, 2009
Wednesday, April 29, 2009
Getting a House Ready to Sell
With mortgage approval standards tightened and with the general tough state of the credit markets, it is hard enough already to find a qualified buyer. Sellers in many real estate markets across the country are having to wait longer and longer to get their property sold. It makes sense, then, to make every effort to avoid any potential issues in the selling process. The old saying, "you never get a second chance to make a first impression" is extremely important and relevant when it comes to real estate. When you put your house on the market, you need to make sure it is in a condition that "wows" the buyers and has "curb appeal". These highly technical real estate terms simply mean that when a potential buyer pulls up to your property, you want their first glance and first impression to be as favorable as possible. Here are some basic tips to help you get your property in shape to sell:
Curb Appeal: Again, the first impression starts when the potential buyer pulls up at the curb. The front of your house, your lawn, your flower beds, everything the buyer can see when they first pull up, should be immaculate and should stand out from houses around it. Would you be interested in a house that had an overgrown lawn, flower beds with lots of weeds, obvious signs of neglect at first glance?
Flower Beds and Landscaping: This goes back to curb appeal, but deserves specific mention. Cleaning up or adding tasteful and attractive flower beds and other landscaping features is a quick and effective way to enhance the look and feel of your property. In many cases, you can accomplish this for relatively little money especially if you do the work yourself.
Privacy Fences: If you don't have one for your back yard, you need one. Without question, privacy fences enhance the value and marketability of a property.
Kitchens and Bathrooms: These two areas of the house are where you get the most "bang for your buck". Money you spend enhancing kitchens and bathrooms is money well spent. Simple cosmetic upgrades like tiling the floors, or tiling the back splashes or upgrading the sinks or counter tops can greatly enhance the perceived value of your house. Almost every buyer will pay particular attention to the kitchens and bathrooms.
New Paint: Another simple cosmetic upgrade you should do is to re-paint the entire house. Avoid unusual colors and go with something that is neutral yet tasteful. This is another upgrade that is simple and relatively cheap to do.
Get a Home Inspection: Invest the $150 and get a home inspection done by a local reputable home inspector. The buyer will most likely end up doing his or her own inspection, but doing your own prior to putting the home on the market is a smart move. Your inspection will help you uncover, anticipate and eliminate any potential issues with the property and avoid having them come up as a surprise and slow down or sabotage the sale.
It should go without saying that when you or your Realtor shows the house that it should be clean and uncluttered. Again, put yourself in the buyer's shoes and understand that you are trying to present your property in the best possible manner and that appearances do matter when it comes to selling a house.
Sponsored by Personal Financial Solutions and Affordable Homes Oklahoma
Curb Appeal: Again, the first impression starts when the potential buyer pulls up at the curb. The front of your house, your lawn, your flower beds, everything the buyer can see when they first pull up, should be immaculate and should stand out from houses around it. Would you be interested in a house that had an overgrown lawn, flower beds with lots of weeds, obvious signs of neglect at first glance?
Flower Beds and Landscaping: This goes back to curb appeal, but deserves specific mention. Cleaning up or adding tasteful and attractive flower beds and other landscaping features is a quick and effective way to enhance the look and feel of your property. In many cases, you can accomplish this for relatively little money especially if you do the work yourself.
Privacy Fences: If you don't have one for your back yard, you need one. Without question, privacy fences enhance the value and marketability of a property.
Kitchens and Bathrooms: These two areas of the house are where you get the most "bang for your buck". Money you spend enhancing kitchens and bathrooms is money well spent. Simple cosmetic upgrades like tiling the floors, or tiling the back splashes or upgrading the sinks or counter tops can greatly enhance the perceived value of your house. Almost every buyer will pay particular attention to the kitchens and bathrooms.
New Paint: Another simple cosmetic upgrade you should do is to re-paint the entire house. Avoid unusual colors and go with something that is neutral yet tasteful. This is another upgrade that is simple and relatively cheap to do.
Get a Home Inspection: Invest the $150 and get a home inspection done by a local reputable home inspector. The buyer will most likely end up doing his or her own inspection, but doing your own prior to putting the home on the market is a smart move. Your inspection will help you uncover, anticipate and eliminate any potential issues with the property and avoid having them come up as a surprise and slow down or sabotage the sale.
It should go without saying that when you or your Realtor shows the house that it should be clean and uncluttered. Again, put yourself in the buyer's shoes and understand that you are trying to present your property in the best possible manner and that appearances do matter when it comes to selling a house.
Sponsored by Personal Financial Solutions and Affordable Homes Oklahoma
Tuesday, April 28, 2009
Mortgage 101
Mortgages are among the most important financial transactions that we make during our lives. It is very important to understand how they work, how the loan process works and to understand basic mortgage terminology.
1003: Form 1003 is the standard mortgage loan application form. The loan officer will fill this form out when you initially apply for the loan. The information will include names, addresses, social security numbers dates of birth, employment and income information, asset information, a projected payment for the new loan, and liabilities taken from the credit report.
Term: The term of the loan is the length of time or duration of the loan. Traditionally, mortgages last for 30 years, but there are other term options available, including 10, 15, and 20 years.
Rate: The rate is the interest rate at which you pay back the loan. The higher the interest rate, the higher your payment and the lower the amount of your payment which is applied to the principle balance of your loan.
PMI: Private Mortgage Insurance(PMI) is not to be confused with homeowners insurance. PMI is a specialized type of insurance, that insures the lender against default by the borrower to a certain extent. On conventional loans, the lender can make PMI mandatory if the loan to value(LTV) is above 80%. In general, the higher the LTV and the lower the credit, the more the PMI will cost. PMI is tacked onto the monthly payment.
LTV: Loan to Value(LTV) is the percentage of the appraised value or purchase price that you are financing. It is important to understand that LTV is figured differently on purchase transactions than it is on refinance transactions. The LTV on a purchase transaction is whatever percentage of the purchase price that you are borrowing. On a refinance transaction, LTV is whatever percentage of the appraised value you are borrowing. In general, the lower the LTV, the easier it is to get approved and the better the interest rate.
Appraisal: The appraisal is the document or the process that establishes the current market value of the property. The Appraiser does an interior and exterior inspection of the property and does an analysis of other similar properties in close proximity that have sold recently.
Title Insurance: Title insurance and title inspections are a requirement of all mortgage loans. The title inspection is the process of analyzing the chain of ownership of the property and establishing how many liens/loans are on the property. Title insurance is a specialized type of insurance that protects the buyer or borrower against errors or other issues that might arise in connection to the title of the property. The title inspection will also uncover any civil judgements lodged against borrowers.
Tri-merge: This is a term that refers to a merged credit report that pulls information from all three major credit bureaus: Transunion, Equifax and Experian. Generally, mortgage companies will use the middle of the three scores from the three credit bureaus.
These are just a few of the basic terms associated with a mortgage, but they are important ones for new borrowers or buyers to understand.
Sponsored by Personal Financial Guide and Affordable Homes Oklahoma
1003: Form 1003 is the standard mortgage loan application form. The loan officer will fill this form out when you initially apply for the loan. The information will include names, addresses, social security numbers dates of birth, employment and income information, asset information, a projected payment for the new loan, and liabilities taken from the credit report.
Term: The term of the loan is the length of time or duration of the loan. Traditionally, mortgages last for 30 years, but there are other term options available, including 10, 15, and 20 years.
Rate: The rate is the interest rate at which you pay back the loan. The higher the interest rate, the higher your payment and the lower the amount of your payment which is applied to the principle balance of your loan.
PMI: Private Mortgage Insurance(PMI) is not to be confused with homeowners insurance. PMI is a specialized type of insurance, that insures the lender against default by the borrower to a certain extent. On conventional loans, the lender can make PMI mandatory if the loan to value(LTV) is above 80%. In general, the higher the LTV and the lower the credit, the more the PMI will cost. PMI is tacked onto the monthly payment.
LTV: Loan to Value(LTV) is the percentage of the appraised value or purchase price that you are financing. It is important to understand that LTV is figured differently on purchase transactions than it is on refinance transactions. The LTV on a purchase transaction is whatever percentage of the purchase price that you are borrowing. On a refinance transaction, LTV is whatever percentage of the appraised value you are borrowing. In general, the lower the LTV, the easier it is to get approved and the better the interest rate.
Appraisal: The appraisal is the document or the process that establishes the current market value of the property. The Appraiser does an interior and exterior inspection of the property and does an analysis of other similar properties in close proximity that have sold recently.
Title Insurance: Title insurance and title inspections are a requirement of all mortgage loans. The title inspection is the process of analyzing the chain of ownership of the property and establishing how many liens/loans are on the property. Title insurance is a specialized type of insurance that protects the buyer or borrower against errors or other issues that might arise in connection to the title of the property. The title inspection will also uncover any civil judgements lodged against borrowers.
Tri-merge: This is a term that refers to a merged credit report that pulls information from all three major credit bureaus: Transunion, Equifax and Experian. Generally, mortgage companies will use the middle of the three scores from the three credit bureaus.
These are just a few of the basic terms associated with a mortgage, but they are important ones for new borrowers or buyers to understand.
Sponsored by Personal Financial Guide and Affordable Homes Oklahoma
Monday, April 27, 2009
Learn Financial Responsibility Young
Credit cards, credit history, auto loans, mortgages, insurance, savings, retirement........these are just a few of the things that people should have a basic understanding of from an early age. In fact, a personal finance course should be a mandatory part of high school curriculum, to be taken in the senior year. Many high schools offer a personal finance or consumer economics course as an elective, but it should be a standard part of the basic curriculum.
Why?
There is a long list of valid reasons why high school seniors should have to take a practical finance course, but what it boils down to is this: credit history, credit cards, auto loans and mortgages can have a huge impact, positive or negative, on a person's life. The fact is, many young adults learn about credit history, credit cards and auto loans the hard way. They have not received any structured training in these matters and are not aware of the serious consequences of bad credit and of the pitfalls of credit cards and loans.
If there was a federal mandate to include a personal finance course as a mandatory part of the high school curriculum, the instances of bankruptcy, foreclosures and bad debt charge-offs would decrease significantly over the next 5 to 8 years. Young adults would be introduced to the concept of financial responsibility before they get into the "real world".
Sponsored by Personal Financial Guide
Why?
There is a long list of valid reasons why high school seniors should have to take a practical finance course, but what it boils down to is this: credit history, credit cards, auto loans and mortgages can have a huge impact, positive or negative, on a person's life. The fact is, many young adults learn about credit history, credit cards and auto loans the hard way. They have not received any structured training in these matters and are not aware of the serious consequences of bad credit and of the pitfalls of credit cards and loans.
If there was a federal mandate to include a personal finance course as a mandatory part of the high school curriculum, the instances of bankruptcy, foreclosures and bad debt charge-offs would decrease significantly over the next 5 to 8 years. Young adults would be introduced to the concept of financial responsibility before they get into the "real world".
Sponsored by Personal Financial Guide
Friday, April 24, 2009
Credit Repair Basics
If you are in a situation in which you need to repair your credit, the first thing you you need to do is to find out what exactly is on your credit report. Actually, you need to find out what is on all three credit reports. There are three primary credit reporting agencies that almost all lenders use: Transunion, Experian and Equifax. Your credit score and accounts will be different from report to report. Almost all mortgage lenders will pull all three reports and use your middle FICO score for loan qualification and pricing purposes.
The main point is that you could have credit issues on one report that might not show up on another, so it is very important to monitor all three reports. There are a number of places that you can go online to get your credit reports and scores, and ongoing monitoring services, but they will charge you anywhere from $20 to $50 for the scores and reports and a monthly subscription fee for the monitoring.
Everyone is entitled to view all three of their reports at http://www.annualcreditreport.com/. There is no charge, but if you want to see your scores, you will need to pay a little bit. It is still a very good idea to go ahead and look at the free reports even if you are not willing to pay for the scores. You should review the reports and look for the items that are negatively affecting your credit. If you have charge offs or late payments, the only remedy for that is time. The negative items---with the exception of bankruptcies---will fall off your report after 7 years. However, you need to review the reports to make sure that there are no negative items that are over 7 years old that are still reporting. This has been known to happen, but you can dispute the items on the basis that they are past the 7 year mark and get them removed.
Again, the first step toward repairing your credit is to know what exactly is on your reports that is affecting your score. The next step is to get your finances under control to the point that you are able to meet your monthly obligations. Easier said than done for most people, but spending less than you make is the basis of financial health and the building block of good credit. You have to be able to meet the monthly obligations on time to re-establish good payment history.
A quick way to boost your scores is to pay down or to pay off credit cards and charge cards. Your score will drop when your balance exceeds 50% of your total credit limit. Paying your balances down under 50 % will give you a quick score increase. The best way to do this is to focus on one credit or charge card and pay as much extra over the minimum monthly payment as you can until it is paid down or off. Once it is paid off, roll the monthly amount you were paying on that card into the monthly amount you are paying on another card. Obviously, this does not reduce your monthly obligations, but it dramatically reduces the amount of time it takes to pay off your debt and will save you large amounts of money in interest charges.
Sponsored by Personal Financial Guide and Affordable Homes Oklahoma
The main point is that you could have credit issues on one report that might not show up on another, so it is very important to monitor all three reports. There are a number of places that you can go online to get your credit reports and scores, and ongoing monitoring services, but they will charge you anywhere from $20 to $50 for the scores and reports and a monthly subscription fee for the monitoring.
Everyone is entitled to view all three of their reports at http://www.annualcreditreport.com/. There is no charge, but if you want to see your scores, you will need to pay a little bit. It is still a very good idea to go ahead and look at the free reports even if you are not willing to pay for the scores. You should review the reports and look for the items that are negatively affecting your credit. If you have charge offs or late payments, the only remedy for that is time. The negative items---with the exception of bankruptcies---will fall off your report after 7 years. However, you need to review the reports to make sure that there are no negative items that are over 7 years old that are still reporting. This has been known to happen, but you can dispute the items on the basis that they are past the 7 year mark and get them removed.
Again, the first step toward repairing your credit is to know what exactly is on your reports that is affecting your score. The next step is to get your finances under control to the point that you are able to meet your monthly obligations. Easier said than done for most people, but spending less than you make is the basis of financial health and the building block of good credit. You have to be able to meet the monthly obligations on time to re-establish good payment history.
A quick way to boost your scores is to pay down or to pay off credit cards and charge cards. Your score will drop when your balance exceeds 50% of your total credit limit. Paying your balances down under 50 % will give you a quick score increase. The best way to do this is to focus on one credit or charge card and pay as much extra over the minimum monthly payment as you can until it is paid down or off. Once it is paid off, roll the monthly amount you were paying on that card into the monthly amount you are paying on another card. Obviously, this does not reduce your monthly obligations, but it dramatically reduces the amount of time it takes to pay off your debt and will save you large amounts of money in interest charges.
Sponsored by Personal Financial Guide and Affordable Homes Oklahoma
Thursday, April 16, 2009
Quick Tips for Home and Auto Insurance
When you are shopping for home insurance or auto insurance, what should you consider when making your decision? Should you make your decision solely upon cost? What about the quality of the coverage and the level of service? Here are a few key things to keep in mind when shopping for auto insurance: Can I get local face-to-face service? Are the billing options flexible? multiple policies with the same insurane company You should get a discount on your auto insurance if you have your homeowners with the same company and vice versa You should get a discount if you have more than one vehicle insured with the same company You should get a discount if you are willing to set your bill up on electonic draft from you checking account You should get a discount for defensive driving courses for being ticket and accident free for 1, 3 or 5 years.
On your homeowner's insurance, you should get a discount for: Having an interior/exterior inspection done Being able to prove you updated your wiring/plumbing/heat and air system Having a life insurance policy with the same company various occupations qualify for discounts---teachers, military, nurses, etc Various age classes will qualify for discounts.
These are the discounts that you should think of as standard discounts. You may not qualify for all of them, but you should qualify for some of them. If the company your are talking to does not offer these, you should consider shopping around.
What discounts do I qualify for?
Remember this; you should get a discount for:
Remember this; you should get a discount for:
On your homeowner's insurance, you should get a discount for:
These are the discounts that you should think of as standard discounts. You may not qualify for all of them, but you should qualify for some of them. If the company your are talking to does not offer these, you should consider shopping around.
Sponsored by Affordable Homes Oklahoma
Homeowners Insurance and Your Mortgage
Let me outline a situation that happens all too often in the loan process; the customer has been pre-approved, the titlework is done, the appraisal has come in above the purchase price, everyone is just waiting on final approval and closing instructions. Then, out of the blue there are problems. The homeowners insurance is higher than the loan officer initially estimated in the loan application.
Here is why this can be a potentially huge problem; The loan officer can only make a somewhat educated guess as to how much the insurance premium will be. The debt to income ratio--a ratio of your income verses your monthly obligations including your new mortgage payment with insurance included--- is affected by the insurance premium and if the premium comes in higher, the underwriting decision is invalidated and has to be re-run.
For loans underwritten to conform to Fannie Mae/Freddie Mac guidelines, debt ratio can be a huge issue; sometimes causing an otherwise clean deal to be either turned down or put in a different pricing tier---higher rates.
While it is true that the insurance premium is derived in a large part from the property itself, an equally important factor in deriving premium is the individual borrower's insurance score. In other words, I'll pay a different rate than you will to insure the same exact property for the same exact amount of coverage. Why? My consumer history is different from yours. My credit history is different from yours and my claims history is different from yours.
The point is, until the loan officer or realtor or the customer gives an insurance agent the exact customer specific and property specific information, the insurance premium the loan officer used to get the pre-approval is a guess. Which means the debt ratio is a guess, which means the pre-approval could be meaningless.
A loan officer can take a customer's information, input it, pull credit and generate an automated Fannie Mae/Freddie Mac underwriting decision in minutes. This almost always has to happen first, because realtors and sellers usually will not take an offer seriously until they know a customer has been pre-approved for the loan. The pre-approval process is done by the loan officer, not by an insurance agent, so there is simply no way for the LO to know the true premium. Most LO's will overestimate the premium to protect against premium swings. A truly experienced LO will ask permission to get an insurance quote as well, or instruct the borrower to obtain one BEFORE issuing a mortgage pre-approval letter and BEFORE the deal goes to contract.
So what?
Here is why this can be a potentially huge problem; The loan officer can only make a somewhat educated guess as to how much the insurance premium will be. The debt to income ratio--a ratio of your income verses your monthly obligations including your new mortgage payment with insurance included--- is affected by the insurance premium and if the premium comes in higher, the underwriting decision is invalidated and has to be re-run.
For loans underwritten to conform to Fannie Mae/Freddie Mac guidelines, debt ratio can be a huge issue; sometimes causing an otherwise clean deal to be either turned down or put in a different pricing tier---higher rates.
While it is true that the insurance premium is derived in a large part from the property itself, an equally important factor in deriving premium is the individual borrower's insurance score. In other words, I'll pay a different rate than you will to insure the same exact property for the same exact amount of coverage. Why? My consumer history is different from yours. My credit history is different from yours and my claims history is different from yours.
What's the point?
The point is, until the loan officer or realtor or the customer gives an insurance agent the exact customer specific and property specific information, the insurance premium the loan officer used to get the pre-approval is a guess. Which means the debt ratio is a guess, which means the pre-approval could be meaningless.
A loan officer can take a customer's information, input it, pull credit and generate an automated Fannie Mae/Freddie Mac underwriting decision in minutes. This almost always has to happen first, because realtors and sellers usually will not take an offer seriously until they know a customer has been pre-approved for the loan. The pre-approval process is done by the loan officer, not by an insurance agent, so there is simply no way for the LO to know the true premium. Most LO's will overestimate the premium to protect against premium swings. A truly experienced LO will ask permission to get an insurance quote as well, or instruct the borrower to obtain one BEFORE issuing a mortgage pre-approval letter and BEFORE the deal goes to contract.
Sponsored by Affordable Homes Oklahoma
Wednesday, April 15, 2009
Apply for a Mortgage---How to Prepare
When you apply for a mortgage to buy a home, there are a number of factors that can influence the rate, terms, downpayment and your ability to qualify for the loan at all. When you apply for a mortgage, the loan officer will gather basic personal information on you and your spouse including: Employment information, both current and previous Exact income information Asset information covering all liquid assets SSN, date of birth, etc. to pull credit reports
Approval standards have risen in the past couple of years as a result of the crisis in the mortgage credit markets. Today, unless you are getting a VA loan, you will have to make a down payment of at least 3% of the purchase price when you buy a home. In many cases, buyers will have to make 10% or even 20% down payments.
Before applying for the loan, make sure that you can come up with the following documents: 2 recent paystubs Last 2 years of W2s or last 2 years of complete tax returns 2 most recent bank statements 2 most recent statements showing any other liquid assets.
Having these documents available for the loan officer at the start of the process will allow him or her to submit your loan application with precise and accurate information. Your approval depends upon your credit history, your ability to document the source of the funds that you will use for a down payment, and your ability to prove your income.
Approval standards have risen in the past couple of years as a result of the crisis in the mortgage credit markets. Today, unless you are getting a VA loan, you will have to make a down payment of at least 3% of the purchase price when you buy a home. In many cases, buyers will have to make 10% or even 20% down payments.
Before applying for the loan, make sure that you can come up with the following documents:
Having these documents available for the loan officer at the start of the process will allow him or her to submit your loan application with precise and accurate information. Your approval depends upon your credit history, your ability to document the source of the funds that you will use for a down payment, and your ability to prove your income.
Sponsored by Affordable Homes Oklahoma
Tuesday, April 14, 2009
Buying a Home--Things You Need to Know
Buying a home will most likely be the largest and most important financial transaction of your life. There are a number of basic things you should know about the home buying process that can help you avoid potentially serious financial problems:
Get Pre-approved for a mortgage before you even look at a house: Going to a mortgage professional and getting a pre-approval for a loan will do a lot to avoid problems during the buying process. Doing this before you look at houses will allow you to discover any potential problems with your credit, income verification or asset verification, it will show you exactly what you will need to come up with for a down payment, and it will show the listing Realtors and Sellers that you are a serious and qualified buyer. Contact a local mortgage company to get pre-approved for a loan.
Get a Home Inspection: Once you have settled on a house, make sure that you have a licensed and reputable local home inspection company check out the house. This will allow you to discover any problems with the house prior to closing. Home inspections uncover problems with the roof, foundation, plumbing, wiring, etc. that can cause you serious financial hardships after closing. If the inspection points out issues with the house, you can go back to the Sellers and ask for a repair allowance, a price reduction or ask that the reparis be made at their expense prior to closing.
Get an exact insurance quote: The amount of the insurance will affect your monthly mortgage payment which affects your debt-to-income ratio. This ratio is important to your loan officer because it must fall within a certain range to meet loan approval requirements. Get a quote from a local and reputable insurance agent during the loan pre-approval process and make sure your loan officer is aware of it. Homeowners insurance quotes are fairly quick and easy to get.
Sponsored by Affordable Homes Oklahoma
Get Pre-approved for a mortgage before you even look at a house: Going to a mortgage professional and getting a pre-approval for a loan will do a lot to avoid problems during the buying process. Doing this before you look at houses will allow you to discover any potential problems with your credit, income verification or asset verification, it will show you exactly what you will need to come up with for a down payment, and it will show the listing Realtors and Sellers that you are a serious and qualified buyer. Contact a local mortgage company to get pre-approved for a loan.
Get a Home Inspection: Once you have settled on a house, make sure that you have a licensed and reputable local home inspection company check out the house. This will allow you to discover any problems with the house prior to closing. Home inspections uncover problems with the roof, foundation, plumbing, wiring, etc. that can cause you serious financial hardships after closing. If the inspection points out issues with the house, you can go back to the Sellers and ask for a repair allowance, a price reduction or ask that the reparis be made at their expense prior to closing.
Get an exact insurance quote: The amount of the insurance will affect your monthly mortgage payment which affects your debt-to-income ratio. This ratio is important to your loan officer because it must fall within a certain range to meet loan approval requirements. Get a quote from a local and reputable insurance agent during the loan pre-approval process and make sure your loan officer is aware of it. Homeowners insurance quotes are fairly quick and easy to get.
Sponsored by Affordable Homes Oklahoma
Monday, April 13, 2009
Credit Basics
Credit history can be a factor in people's lives that can have a dramatic positive or negative impact. Many people do not learn about the importance of building and maintaining a good credit rating until it is too late. Today, bad credit and no credit can influence: Your insurance rates Your mortgage rates Your auto loan rates Your employment opportunities
Obviously, the worse your credit history is, the higher rates you will pay on insurance, auto loans and home loans. In fact, especially lately, bad credit can cause you to be unable to get any type of mortgage or auto loan. It has also become more common for employers to include credit screening as part of their background check when considering a job applicant. In some cases, bad credit history can cause you to not get a job.
Amount of available credit(The higher the credit lines, the better the score Age of accounts(The longer you pay on your mortgage the better your score Number of accounts(Generally, people with a mortgage, auto loan and at least one credit card will score better then people with only an auto loan or a single credit card.
Obviously, the worse your credit history is, the higher rates you will pay on insurance, auto loans and home loans. In fact, especially lately, bad credit can cause you to be unable to get any type of mortgage or auto loan. It has also become more common for employers to include credit screening as part of their background check when considering a job applicant. In some cases, bad credit history can cause you to not get a job.
The best way to maintain and improve your credit score--FICO--is to pay bills on time and to keep credit card balances paid down below half of the total credit line. Avoiding late pays and avoiding maxing out credit cards are not the only factors that make up your credit score, but they are two of the most important. Other factors that influence credit score are:
If you are in a situation where you need to repair your credit, understand that it will take time. The fundamental basis of having decent credit is to be able to pay your bills on time. Understandably, being able to pay bills on time has been a big challenge for many of us over the past couple of years and will most likely continue to be one. However, once you are able to pay on time, the best option for repairing credit is to get credit cards paid down at least below half of the total credit line and re-establish payments on all other loans that you might have that have not charged off. Most derogatory credit stays on your report for at least seven years, so the best thing to do is to start rebuilding perfect pay history as soon as possible.
Sponsored by Affordable Homes Oklahoma
Thursday, April 9, 2009
Welcome To Personal Finance
Welcome to Personal Finance, where Nickels and Dimes Make Sense. Corny titles aside, the purpose of this blog is to serve as a practical, real-world guide to personal finance. Upcoming post topics will include the basics of credit, a guide to every type of insurance, a guide to buying and selling houses, a guide to small business fundamentals and advice on budgeting.
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