Friday, March 19, 2010

What Happens When I Fix My Credit Score for a Mass Mortgage Loan If you have been working at repairing your credit, congratulations! Your credit sco

If you have been working at repairing your credit, congratulations! Your credit score should have improved nicely in the months you have been paying all your bills off diligently. Hopefully, you have been obtaining copies of your credit score as you go along so that you were able to track your score as it went up.

If your score has improved to the point where it is 700 or more, and you still owe money on some credit cards, you may want to think about calling the credit card companies and letting them know what your credit score now is. It is possible that they could lower your interest rate, and if so, this will give you even less to pay off. The companies will not do this on their own – you have to ask them. For more information contact me at

Tuesday, March 9, 2010

Mass Mortgage Avice

● If you are in the market for a house, find out if you qualify for the expanded Home Buyer Tax Credit that pays up to $8,000. Even if you didn’t qualify before, you may be eligible now as the rules have been loosened to include more Americans. While this program may be the icing on the cake that you have been waiting for, it’s probably not enough to convert a hardened renter.

However, when you combine the cash incentive with low fixed rate home loans and throw in low prices and cooperative sellers, the mix 
becomes harder to resist. Therefore, consider the advantages of taking the plunge this year.

● Watch for home lenders to adopt the short sale process to a much greater degree than in the past. A short sale occurs when a lender agrees to accept a discounted payoff on a loan it holds. While the sale results in a loss for the lender, it is usually less of a loss than the lender will be forced to accept if the house goes into foreclosure.

The Treasury Department recently announced new guidelines to encourage the parties to accept short sale offers.

Not only will the government offer the carrot of cash payments to lenders and sellers, but it will now require lenders to respond to short sale offers in 10 days or less. This may create a real opportunity for buyers to purchase homes in reasonably good condition at excellent discounts.

● Finally, my advice to all property owners is: “Be patient.” This economy is moving, albeit slowly, in the right direction and will recover. Those who make wise decisions today will be rewarded in years to come.

If you would like to speak to someone about purchasing or refinancing please visit

Friday, March 5, 2010

How Much House Can You Afford?

Step One - Calculating Your Monthly Income

When a loan officer pre-qualifies you, he works backwards to figure your maximum mortgage amount. You can do the same thing. The first step is to determine your monthly income. It isn't quite as easy as it sounds. Lenders only count income they can document through paperwork.

If you are a salaried employee, and don't earn bonuses, it's easy. Get out your paycheck. If you get paid twice a month, multiply by two. If you are paid every two weeks, then you multiply by 26 (the number of pay periods in a year) and divide by twelve. Unless you're a teacher. Teachers don't always work year round and they have special rules.

If you are an hourly employee who works a straight forty hours a week and don't earn overtime income, then it's easy, too. Look at your paycheck, multiply your hourly rate by 40, multiply that total by 52, then divide by twelve.

If you earn overtime, bonuses, or commissions -- it isn't as easy. Lenders don't give you credit for what you are currently earning. They average your income from those sources over the last two years, then add that to your regular salary or hourly monthly income. If you want a shortcut that is usually close, get out your W2 forms for the last two years. Add them together and divide by twenty-four. That is your monthly income.

If you are a teacher, a nurse, a seasonal employee, in construction, or earn only part-time income -- you can use that shortcut, too. Add the figures from your last two years W2's, then divide by 24. It generally gets you close.

If you would like more information please contact us at

There are variations and exceptions (like those who own their own corporations) but the above should cover most people. If you would like more information please contact us at

Thursday, March 4, 2010

Steps to Take Before You Shop or Speak to a Mortgage Company

* Check out your credit report. You can your credit report and scores in many places on the internet or contact os at; to Get Free Credit Report. We can give you information about your credit report when you inquire.

* If your credit scores are anything less than 620, start looking at ways to improve your credit and scores. You might need to establish more credit, or repair what you have. We can help you with this

* If your scores are higher than 620, gather up your last 30 days of pay-stubs, your last 2 year’s W-2's, and your last two months of bank statements (if you don’t have a bank account - start one immediately. If you are self employed or you are a commissioned sales person, gather up your last two years of full tax returns.

* Start saving money - stay home for dinner an extra night of the week. Pack your lunch, turn off more electricity when you are not using it, wash your own car, make your own coffee (sorry Starbucks). The more you have in the bank the better. Even if you don’t use it for the home purchase, you’ll want money once you move in to purchase new furniture etc.

* If you are buying your first home then learn more about the home buying process and home ownership and especially read up on FHA Loans.

* No matter whether this is your first home or a move home, or even a vacation home you should get educated on loan programs and control your own destiny. .