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Welcome
to Homefront News, a quarterly newsletter presented
by Bernie Saul, President, Equitylink Mortgage, Inc.
Archives
December
2001
Happy
Holidays
The message of this season that is applicable throughout the
year
Lies not in the receiving of earthly presents and treasures
But in the forsaking of selfishness and greed and in going
forward
Seeking the gifts of "love, joy, peace, longsuffering,
gentleness,
goodness, faith, meekness, and temperance." (Gal. 5:22-23)
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Improve
Your Credit Score
I
suggest that you work to achieve a credit score
of 700, which will put you in the upper 3% of
the population. With a good credit history, you
will save money on credit cards, hazard insurance,
auto loans, and mortgage rates. The following
is a list of a few items you can apply to get
the best possible credit rating:
1. Avoid opening new revolving accounts that are
not absolutely necessary. Each account with less
than 12 months history, will lower your score.
Store promotions for "90 days same as cash"
will create a new account on your credit report.
Opening new credit cards to get a promotional
rate should be considered carefully because it
creates another new account.
2. Maintain revolving account balances that are
less than 50% of the credit limit. If necessary,
spread your debt among multiple accounts to stay
away from your credit limits.
3. Pay all accounts as agreed to avoid late payments.
4. If you have an adverse entry on your report,
you are entitled to add a statement of protest
or explanation that will remain on your report.
You will need to write each of the 3 credit bureaus
to accomplish this. See the addresses below.
5. Avoid being a co-signer...someone else's mistakes
will hurt you for years to come.
6. Make sure that all past collections are shown
as "paid". Open collections, even for
medical bills will drag your score down. Most
collections can be settled for a fraction of the
original amount owed.
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| National
Credit Bureaus: |
Transunion
PO Box 1000
Chester, Pa. 19022
800-888-4213
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Equifax
P.O. Box 105873
Atlanta, GA 30348
888-841-7335
www.equifax.com
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Experian
PO Box 2002
Allen, Tx. 75013
888-397-3742
www.experian.com
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Inside
this Issue:
Christmas
Memories
Know the Score
Credit Bureaus
Stop Thief
Real Estate Strategy
Tax Tip
New Loan Limits
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Christmas
Memories
My
sweetest Christmas memory was when our young
family lived in the white solitude of the Idaho
wilderness. We lived humbly without electricity
or money for gifts and trips. We snuggled together
with light from the wood burning stove and absorbed
what we had been blessed with. We savored the
popcorn balls our loving friends had gifted along
with some hot spiced cider. The path to the front
door of our two room cabin was softly lit by the
flickering luminaries. The tree we harvested from
the surrounding mountains was trimmed with strings
of popcorn, pine cones, and hand crafted ornaments,
with small notes of love and gratitude scattered
among the branches.
I
pray that the branches of our lives are found
to contain messages of love and gratitude for
all that our Heavenly Father has given us, even
his own son. May the Lord our God bless and keep
you.
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"The
key to true happiness lies not in getting the things
you want, but rather in wanting the things that
you already have." ~ Bernie Saul
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Tax
Tip!
Remember...if
you closed a first or second mortgage loan
transaction in 2000, take a copy of your
HUD-1 Settlement Statement to your tax preparer.
Some fees such as loan discount and origination
fee are deductible.
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New
Conforming Loan Limit $300,700
is the break point before loans fall into Jumbo
rates which are at a higher rate.
The
FHA loan limit in metro Denver is $239,500.
STOP...THIEF
!
The doors and windows are locked and you sleep
soundly, confident that your home is safe
from intruders. Your computer's fan hums as
the screensaver fills and refills the screen.
Despite it's appearance, your PC is anything
but inactive. A silent army may well be busy
ransacking your hard drive. Your broadband
connection...the very same one that lets you
surf the web at breakneck speed...is an open
invitation to hackers, who have an unobstructed
access to your computer.
People do not realize when they get a cable
or DSL modem connection that allows them to
see the Internet, all the while the Internet
can see them. Some hackers scan the web looking
for unprotected computers from which to gather
credit card numbers or other info they can
use to steal your money or identity. Some
hackers delete files or reconfigure settings,
but most are looking for hard drive space
to install programs that enable them to control
your computer remotely. Then, they can enlist
your PC to shut down web sites: by making
simultaneous requests from all the computers
they control, including yours, to overwhelm
a site and block access to its URL. Now, before
you pull the plug, you can defend yourself
with a combination of good antivirus software
and firewall protection.
A quality antivirus program that updates daily,
will protect you about 90% of the time. It's
not perfect, but a lock on your front door
is not infallible either.
While antivirus software finds and repairs
damage, a firewall is your first line of defense.
There are two types: a hardware firewall is
a box you install between your computer and
the broadband line; whereas a software firewall
is a program installed on your hard drive.
For most home users, a good software firewall
should be sufficient. If you keep important
documents on your hard drive or run a business
from home, you'll want a hardware firewall
(around $200).
Whatever you decide, make sure your firewalls
are installed properly...a badly configured
one could be as bad as not having it at all.
If you need help, I suggest you call John
Feather at Computer Werx, Inc. at 303-978-0191.
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When your friends or family are discussing
home financing,
Do them a favor…
Suggest that a call to EquityLink
will save money and stress.
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Real
Estate Strategy…
Getting the best buy in today's market
requires some serious preparation.
As the market is softening to favor
buyers, your greatest saving can be
found through these strategies:
- Look
for properties in your target price
and location that have been on the
market for a while. Have your agent
call the seller's agent to find
out why the home has not sold and
just how motivated the sellers really
are. If the seller is running out
of time, and you are in a position
to close quickly, perhaps even waiving
the customary inspection, the sellers
may agree to a much lower price.
You have to be ready to jump when
opportunity knocks!
- Have
your financing pre-approved. Make
a formal application for an assumed
purchase price and down payment
for a property TBD (to be determined).
Pre-approval is the first step in
being prepared to close quickly.
A pre-qualification is not as effective
as being approved. Make sure that
both you and your agent have a copy
of your lender's approval letter.
Very Important!
- Shop
loan rates. The web is a helpful
tool in monitoring interest rates.
Web lenders are not any cheaper...there
is no difference in the cost of
funds online or offline. Online
borrowers give up having a real
live person tracking and pushing
their loan along. No wonder barely
2% of all buyers get their mortgages
online. Here's what the web is really
good for...find the best rates online
and use that info to put your earthbound
broker's feet to the fire. Compare
not only the interest rate but the
lender's fees as well. Ask for a
"Good Faith Estimate."
An informed consumer always prevails.
- Don't
rush the negotiations. Put yourself
in a position to take your time.
Whoever blinks first, loses! If
can't cut a deal on price, insist
that the seller pay some or all
of your closing costs. Everything
is negotiable!
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Be sure to disconnect
those garden hoses this winter
to prevent a frozen hydrant
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What
to Do?
If you can't decide or figure out whether
you should refinance or take out a home equity
line of credit, call me for a free consultation
to weigh the pro's and con's of both options.
For the first time in recent history, rates
for 2nd mortgages are lower than 1st mortgage
rates. We are here to help you!
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