How to improve your credit score before you purchase a home will take some help from this book and a little work!
I’ve never written a book review of sorts before but after reading ‘Debt Cures they don’t want you to know about’ by Kevin Trudeau. I wanted to express how truly exceptional this book can be for consumers.
If you want a book to explain the credit reporting process in general – this is the book for you!
Bad credit and want to fix it – this is the book for you!
How the credit industry and banking industry are screwing the public – this is the book for you!
Lots of tips? You bet! Here is a small sampling that I’ve found interesting:
Increase your credit score and
stop messing things up for
yourself with this formula they don’t want you to
particularly know about. Play
their spread! The
FICO credit score system only wants you
to use 30%-35% of your
available credit on each card.
Spread out what you owe, so no one card has a
high balance. Do
not max out your cards!
Play their game by asking for an increase in your credit limit – do not make more purchases but to use the ratios stated above. This can boost your credit score by 50 points!
Example of different credit scores and how it effects your payments. Credit Scores make all the difference in the world!
Doug $275,000 Mortgage Credit Score 700 Interest rate 5.6% $1579.00
Tom $275,000 Mortgage Credit Score 675 Interest rate 6.1% $1666.00
Dave $275,000 Mortgage Credit Score 620 Interest rate 7.3% $1885.00
Tom will have paid $31,596 more in interest dollars than Doug. Dave will have paid $110,377 more than Doug at the end of 30 years. Let's face it, poor Dave is getting screwed.
Shave years off your mortgage
by ‘Splitting
your Mortgage
Payment’. Most
mortgages now allow for
prepayment so an idea is to ‘split’ your total
payment ($4000 as an example)
into weekly installments
of $1000 each.
Just be sure your ENTIRE payment is there by the 1st
of the
month or your due date.
This one I have heard before but it bears repeating.
Paying any extra with your regular payment
will reduce your mortgage by years.
It
doesn’t have to be huge sum; it can be only $50 per month. Suggestion –
you’ve just paid off your car –
take that payment that you are already used to budgeting and put it
towards
your mortgage. It
all makes a difference! And
the idea is to keep your money IN YOUR
POCKET.
Money Merge Account and Mortgage Accelerator Loan
This was a new one for me and both plans are designed to pay
off your mortgage in one-third
to one-half the time.
So new things are available with more on the
horizon!
FICO Scores Matter – It’s a very big deal! Check out these payment differences.
|
FICO Score |
Interest Rate |
Payment |
30 Years of Interest |
|
500 |
9.3% |
$1,651 |
$394,362 |
|
560 |
8.5 |
$1,542 |
$355,200 |
|
620 |
7.3 |
$1,373 |
$294,247 |
|
675 |
6.1 |
$1,220 |
$239,250 |
|
700 |
5.6 |
$1,151 |
$214,518 |
|
720 |
5.5 |
$1,136 |
$208,853 |
Suggestions to combat this problem and where to file a complaint if it has happened to you would be the Illinois Attorney General’s Office. Most of the lawsuits that have been file against the credit card companies started in the Attorney General’s Office. Don’t forget these people work for you! The Better Business Bureau in my opinion no longer has any effective ‘teeth’ for the consumer.
Universal Default –
What a scam! If you
are in default with one credit card or
lender, you could be zapped by your other cards.
The average default credit card rate is
somewhere around 24%. I
bet you didn’t
know that this could happen to you and
it’s completely
legal. Think about
how stupid this is if you ARE
having financial problems, so the credit cards double your interest
rates and
then REALLY cause more problems!
So the main purpose of this post is to remind you to monitor your credit information on a regular basis and know your FICO score. Doing any credit repairs and corrections should be done PRIOR to looking for a home and possibly with the mortgage pre-approval process. Most lenders are very credit saavy and can help you get things cleared up fairly quickly. But just don’t sit there until you want to buy a home! Get started now with your ‘financial education’ and get proactive. Some things might take time to straighten out if there are mistakes on your report possibly holding up your home sale.
So I recommend reading this book is ‘Debt Cures’ by Kevin Trudeau. Not having a good ‘credit education’ can be costly!
I proudly serve and sell real estate in the Northwest Suburbs of Chicago. If you are thinking about purchasing or selling your home in the communities of Schaumburg, Hoffman Estates, Elk Grove Village, Roselle, Palatine, Medinah, Itasca, Bloomingdale, Carol Stream, Bartlett, Hanover Park, Streamwood, Elgin, South Elgin, St. Charles and more importantly, want to work with a local area expert, contact me immediately.
© 2007 - 2010 Lyn Sims
marketing tips that you might
want to know about if you are planning on selling your home?
A
home warranty can give a purchaser peace of mind. If anything
catastrophic happens in the house, you are only financially liable for
the deductible. So if the furnace goes out one evening and
you
just can't get it going (as long as it is maintained and not abused)
you would call the warranty company and they would send out a
technician to fix/repair/replace the furnace depending on the problem.
So yes, if the furnace did indeed blow up (heat exchanger)
you
would get a new furnace of comparable quality. You cannot
choose
the technician or company involved but for years my clients have used
these warranties with no problems. You just have to give up a
little control with that extra peace of mind.
Normally I wouldn't suggest this if you have a new furnace or
this is a newer home. The perfect selling solution for a home
and
a warranty is where the furnace is around 10 years old and all
the
appliances have been well maintained and cared for but varied ages.
Coverage is for systems and
appliances in good working order at the start of the contract.
Deductibles are
usually $55 - $75 - $100 depending on what plan you select for
'EACH' occurance.
Illinois Land of Lincoln 
to start out? 
Every
year I have posted on my website Remodeling Magazine’s
Improvement Project
Payback Reports for my clients and prospective clients looking for this
kind of
valuable information. This proves that
every nail, fence post and shingles should
‘improve’ your home for maintenance
and your sense of well being, your sense of home, your sense of style.
Not only to improve value! If you go down to Lowe’s
or Home Depot and
spend $20 in materials on your home – does it increase your
home that
amount? If you spend $35,000 on a
kitchen remodel does your home increase that amount? What
amount of increase do you see?
ople are
wondering where their money will be safest during these uncertain
economic
times. When home owners turn to you for your expert advice, counsel
them that
some things never change: Investing in their home still pays
off.
starting in 1986
Sales Summary
Builders.
When I first visited the subdivision many
years ago it impressed with the brick exteriors and it offered a ranch
model
which was in buyer demand but never built by most builders.
For 
If
you are 
If you are currently in the market for a new home, you may be interested in how 
a real estate agent can help you. You are about to make a great investment of both money and time. I have a wealth of experience helping buyers of all categories like you make sound, informed decisions.
evaluate homes based on your affordability and the qualities you desire. You can also have custom searches of multiple areas on my website until you make a final choice on a particular town. Not all companies offer this service!
Stream, Hanover Park, Streamwood, Elgin, South Elgin, St. Charles. 
a real estate agent can help you. You are about to make a great investment of both money and time. I have a wealth of experience helping buyers of all categories like you make sound, informed decisions.
