From Selling on The Floor To Mega Success
Show Summary Anthony & Candace Coffey has gone from sleeping on the floor to a 10 million dollar real estate portfolio in just 8 years. Theyâve built an amazing business in…
Show Summary Anthony & Candace Coffey has gone from sleeping on the floor to a 10 million dollar real estate portfolio in just 8 years. Theyâve built an amazing business in…
There are several obvious reasons to give a hoot about your credit score, and very few reasons you should ignore it. After all, you’ll need a good credit score and a solid credit history if you ever plan to purchase a home or take out an auto loan. A bad credit score can even come back to bite you if you want to rent an apartment or apply for certain jobs.
But your score isn’t the only detail you need to pay attention to. You also need to keep an eye on your credit report — the document that lists your formal credit history including any accounts you have open, balances due, and payments you’ve made.
Your report and your score are intricately intertwined. If bad information gets on your credit report due to fraud or misreporting, this can easily cause your credit score to nosedive. Likewise, a clear credit report with nothing but true (and positive) information can help your credit score reach greater heights.
That’s why, every single year, you should get a free copy of your credit report from all three credit reporting agencies — Experian, Equifax, and TransUnion. Fortunately, this part is easy to accomplish via AnnualCreditReport.com.
Once you have a copy of your credit report from all three bureaus, you’ll want to look over all the details to make sure they’re correct. Incorrect information you might notice on your report may include:
Thanks to the Fair Credit Reporting Act (FCRA), both the credit bureau and whoever is providing them with information are responsible for correcting misinformation on your credit report. This means that, if a specific retailer or bank is reporting an account that isn’t yours or an incorrect balance, both the credit bureau and the retailer or bank have to work together to make things right.
If you find an error, here are the steps you should take right away:
The first step you should take is informing the credit reporting agency of their error, keeping in mind that it’s possible not all the credit bureaus will have the same information. You should let them know about the mistake in writing, taking special care to list important details about the mistake with proper documentation. The Federal Trade Commission (FTC) even offers a sample letter you can use if you need help.
Note that credit bureaus usually have 30 days to investigate your claim and they are required to get back to you with a response. They are also required to forward the information you sent them to the provider who shared the information with them in the first place.
You’ll also want to provide the company reporting the incorrect information with copies of any documentation that prove an error has occurred. Make sure to include all details required to prove your claim along with copies of documentation that backs you up. The FTC offers another sample dispute letter you can use for this instance.
Generally speaking, credit reporting agencies are required to inform you in writing of the results of your case. They are also legally required to give you another free copy of your credit report if your dispute caused a permanent change.
You also have the option to ask the credit bureau to send notices of any corrections to anyone who has requested your credit report within the last six months. You can even have an updated copy sent to anyone who has asked for a modified version of your credit report for reasons regarding employment.
While the steps above may sound tedious, it’s crucial to understand the damage incorrect information on your credit report can do. If you have inaccurate late payments on your report, for example, you could see your credit score plummet through no fault of your own. And if there are accounts on your credit report that aren’t even yours, that could signify a much larger problem, such as outright identity theft.
Fortunately, the small amount of time required to dispute an item on your credit report really can pay off in a big way. After all, any negative information you manage to get wiped clean should immediately stop dragging your score down.
However, you should also note that you’ll only be able to get false negative information removed from your credit reports. Any damaging information that’s true will have to linger on your report until enough time has passed. Generally speaking, negative information and reporting can remain on your credit report for up to seven years and bankruptcy can stay on your report for 10 years.
Errors happen all the time, and they may never be uncovered if you don’t find them yourself. In addition to staying on top of your credit reports, it can help to sign up for a free service that gives you updates on new accounts in your name or fluctuations in your credit score. CreditKarma.com and CreditSesame.com are two that offer a similar free service with these features, so they are both worth checking out.
The previous chapters of our savings series explained various ways for you to start saving money and where to keep your funds. But once you feel ready to begin building your funds, the question of how much you should save starts springing into your mind. Knowing how much you need can help you set milestones
The post Chapter 05: Calculate Your Savings Needs appeared first on MintLife Blog.
If youâre a business owner looking for a loan, your lender will be looking for your solvency ratio. Of course, if you have a startup and are new to running a business, you may not know what a solvency ratio ⦠Continue reading â
The post How Is Solvency Ratio Used for Company Credit? appeared first on SmartAsset Blog.
When it comes to getting a mortgage, finding the right option with an affordable rate is essential. But how do you know when to draw the line on what you can afford? In this article, we’ll outline the differences between gross income and net income and how they can help you determine your loan affordability…. View Article
The post Is Gross or Net Income Better for Calculating Mortgage Affordability? first appeared on Total Mortgage.
Avoid racking up a mountain of student loan debt and start applying for scholarship money today with these tried-and-true strategies.
The post Everything You Need To Know About Scholarships appeared first on MintLife Blog.
For many homeowners, upgrading to a bigger property is a great accomplishment and a goal to strive for. However, it might not always be the right move depending on your situation and needs. Could it be time to downsize and take advantage of a cheaper, smaller space? In this article, we’ll dive in and cover… View Article
The post Four of the Best Reasons to Downsize Your Home first appeared on Total Mortgage.
For many Americans, student loans can be one of the most frustrating parts of your personal finances. And paying them off is likely one of your top personal finance priorities. However, for many, it can be hard to know how long your loans will last, or what your repayment timeline might look like. Thatâs why
The post Student Loan Calculator appeared first on MintLife Blog.
Buying your first home can be a very exciting time. Youâre finally going to have your own space, and youâre ready to start a new chapter in your life as a homeowner. However, purchasing a property can be quite the process. Weâll walk you through the loan qualification requirements, various first-time homebuyer programs, and loan options available. How Do I Get a First Time Homebuyer Loan? The first step in obtaining a mortgage loan is determining your financial goals and how much home you can afford. Once youâve found a property in your budget, you can begin researching different lenders and explore all available loan options to help you get the best rates and financial support you need. The lender you choose will guide you through the pre-qualification process and examine all necessary documents required for approval. Loan Requirements and Qualifications Depending on the loan you choose, youâll have to meet various requirements and qualifications specific to your mortgage. The first requirement for all first-time homebuyers is to meet the definition of a first-time homebuyerâwhich may be broader than you expect. According to HUD, a first-time homebuyer is someone who meets any of the following criteria: Has not owned a principal residence in the last 3 years Has not owned a home jointly as a married couple within the last 3 years (if you owned a home but your spouse hasnât, you can still qualify) A single parent who has only owned a house with a former spouse while married Has only owned property prior to applying that didnât comply with building codes Has only owned property that didnât have a permanent foundation In order to qualify for a first-time homebuyer loan, most lenders will evaluate the following criteria: Your credit score. Depending on the loan, youâll need a specific score to qualify, but it will depend on your specific loan. Your debt-to-income ratio (DTI). Your DTI is determined by how much you owe in debt and how much your income isâspecifically how much of your income goes toward debt. Having less of your income go to debt is a good indicator of being able to qualify for a loan. Your income. Many lenders will want to verify how much you make each month or year to determine if youâre able to make the monthly mortgage payments. Your credit history, DTI and monthly income will determine how much of a mortgage you qualify for and the housing price range you can move forward with. First-Time Homebuyer Loan Options First-time homebuyers have a variety of loan options available. You will have the chance to choose a type of loanâor a beneficial programâthat will fit your needs and financial goals. Programs There are many programs available to first-time homebuyers that can help make home ownership a reality. These programs can come through your state or local programs like non-profit organizations or housing authorities. Your loan officer or real estate agent can be a valuable resource to find some of these local assistance programs to help with your first home loan. Grants Unlike a loan, grants are money given to you by an organization or government that wonât need to be repaid. A grant is essentially free money you can use to put toward your house. One common type of grant is a down payment grant that can help first-time homebuyers pay the down payment required at closingâas well as the closing costs. These types of grants are usually given to low- to medium-income individuals or families earning no more than 80% of the area median income (AMI). You can apply for many grants at the same time, so if you think you could qualify, itâs worth applying to as many as you can find. Oftentimes, you can find grants through bank programs, non-profits or associations. Tax deduction Homeowners and first-time homebuyers can qualify for quite a few tax deductions. Many homeowners are able to deduct their mortgage interest for a primary home up to $750,000 if married or $350,000 if single. There are many other under-used tax deductions that could benefit you as a first-time homeowner. Closing assistance Closing costs can add up quickly and can be substantial. There are programs through the government, organizations, banks, or other places that can help you pay some of the initial payments youâll need to make on your home. Closing assistance can come through a grant, but it can also come through loans, which will need to be repaid. These loans typically have lower interest rates and the possibility for deferred payments. Your lender may also be able to offer you loan options to help you close on your first home. There are also down payment matching options that can help you with your first closing costs. With down payment matching, you put money into an account, and the amount you put in is matched by your lender. The money can then only go toward closing costs and the down payment. Some states will offer $3 for every $1 saved toward closing costs, which can go a long way to helping you pay closing costs for your first home. Federal Options When it comes to choosing a mortgage loan, there are a few main options: federal loans or private loans. If youâre interested in government loans, there are several options you can choose from. Government Loans Government loans come through federal departments like the Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture. Although they are technically considered government loans, theyâre still funded by and approved through mortgage lenders. So if you choose a government loan, you can go through your lender of choice. These are a few of the most common government loans for first-time homebuyers: FHA loans. FHA loans are offered through the Federal Housing Administration. These loans have specific credit score requirements. If you donât include a down payment of at least 20%, you will need to pay mortgage insurance. VA loans. Veterans Affairs loans are available to eligible military personnelâactive duty personnel, veterans and eligible family members. VA loans donât require a down payment, but they do require a funding fee (which can be rolled into your monthly costs). VA loans come with lower interest rates than other loans. NADL loans. The Native American Direct Loan (NADL) is another loan through the VA department, and the department is directly the lender, unlike with other VA loans. This financing option is available for Native American veterans and their spouses. If eligible, you can receive financing to build a home or improve a property on federal trust land. USDA loans. This type of loan comes from the U.S. Department of Agriculture, and itâs available to help homebuyers in rural areas. You donât need to purchase a farm to qualify, but your home will need to be in a USDA eligible area. Some USDA loans are eligible for no down payment, which can benefit first-time homebuyers. HomePath Ready Buyer This federal loan program is designed for first-time homebuyers interested in purchasing a foreclosed home owned by Fannie Mae. This program does limit your choice of properties, and you may end up with a property that needs repairs. However, if you take a homebuyer education course, you could be eligible to receive up to 3% in closing cost assistance as a part of your loan. This program isnât for every first-time buyer, but it can be extremely beneficial for those who are interested in buying a foreclosed home. Good Neighbor Next Door This program comes through the U.S. Department of Housing and Urban Development (HUD) and is designed for law enforcement officers, emergency responders, firefighters and pre-school through high school teachers. If you qualify for this program and buy a property in a ârevitalization area,â you could receive up to 50% off your home price. That financial assistance can make purchasing a first home more affordable. Your state lists all the eligible properties that you can look for as you decide what kind of loan you want to purchase for your first home. Energy-Efficient Mortgage (EEM) Using a loan of your choice, you can also apply an energy-efficient mortgage to your monthly payments. Essentially, this financing option allows you to incorporate the costs of green and environmentally friendly upgrades to a home or property into your primary loan. So, instead of paying for the improvements out-of-pocket, you can roll the costs into your monthly mortgage payment. The mortgage payments could be more expensive since youâre borrowing more, but if youâre looking to create an energy-efficient home, an EEM could be a beneficial option. Non-Profit Programs The federal government isnât the only avenue for first-time home loans and loan programs. Non-profit organizations also offer programs and assistance that can help you purchase your first home well within your budget. Non-profits can be based in particular regions or only applicable for certain types of families or income situations. Habitat for Humanity Habitat for Humanity is one of the most well-known international non-profit organizations. This organization has a goal to provide simple and affordable housing for low-income families. For these homes, volunteers will build them, and Habitat for Humanity wonât take any profit after you close. Because of its focus on providing affordable housing, Habitat for Humanity homes are more affordable than others in the area. First-time homebuyers can take advantage of this non-profit assistance to buy an affordable home. NACA The Neighborhood Assistance Corporation of America (NACA) is another non-profit dedicated to helping low-income or financially unstable families become first-time homebuyers. Through this program, you would receive mortgage counseling and take advantage of mortgage education to better understand the homebuying process and the requirements and implications of a mortgage. NACA teams will also help you find lenders that are able to help you through the mortgage process and work with you even with a credit score, DTI or income that might not qualify everywhere. NACA also offers loans that require no minimum credit score or down payments. The Bottom Line There are many loan programs and assistance available to first-time homebuyers. From government loan assistance and grants to non-profit assistance, you have ways to help pay for your first home. The key is to talk with your lender and find every opportunity for funding that you canâand apply for every possible grant. Ultimately, you will need to have a lender that will guide you through the process and help you find the right loan for your first-time home buying experience. At Pennymac, you can apply for loan approval now and get started right away with your homebuying process. Our loan experts will help you find the right loan and get approved for your first mortgage. Apply for loan approval today.