Interesting Items About the Credit Scoring Model

1. You are better off being over your credit limit than maxed out on your credit card.
2. You are better off owing $10 on a credit card than owing $0 on a credit card.
3. It is better to have a business credit card than a personal credit card.
4. Paying off a collection could hurt your credit scores.

Appraisal Changes and APR Changes Explained

The mortgage industry has made numerous changes over the past year that affect you, me and all potential homebuyers. These changes can, if not handled properly, cause mortgage transactions to be delayed or, in some cases, terminated. Below is a list of some of the more important changes and the date in which they go or went into effect:

May 1, 2009: For conventional loan transactions, loan officers are no longer allowed to order appraisals or have any contact with the appraiser during the process. This law only affects conventional loans. VA appraisals are still ordered by the VA and FHA appraisals can still be ordered by the loan officer.

July 30, 2009: Homebuyers must wait a minimum of 7 business days (this includes Saturdays) from the date that they received the initial RESPA disclosures before closing on their mortgage.

July 30, 2009: If the actual APR being charged to the borrower differs by more than 0.125% from the APR listed on the Truth-In-Lending that was given to the borrower as part of the initial RESPA disclosures, then the lender must furnish an additional, corrected statement to the borrower. The borrower must then wait an additional three days from the receipt of this new Truth-In-Lending Statement.

$8000 Tax Credit FAQ

Below is the link for the best website that I have come across that answers some of the more unique questions about the $8000 tax credit and when the buyer qualifies. Furthermore, the website is the IRS official website. I would think that they would know what they are talking about. (Feel free to comment on that last statement.)

One of the more interesting items that I picked up is this statement:

• Eligibility for the first-time homebuyer credit is determined on the date of purchase. If Taxpayer A, a first-time homebuyer, buys a house and then later that year marries Taxpayer B, not a first-time homebuyer, the credit is allowable to Taxpayer A. Taxpayer A may take the maximum credit.

Go to http://www.irs.gov/newsroom/article/0,,id=206294,00.html for more answers.

Money Myths

MYTH #1: Co-signing is not a big deal.

If you believe this, you shouldn’t be allowed near a loan document. When you co-sign for a loan (or credit card), you are agreeing to pay that debt in full if the primary borrower defaults or misses even one payment.


MYTH #2: Student loans are dischargeable through bankruptcy.

Student loan debt for the most part is not dischargeable in bankruptcy. There is a provision that allows student loan debt to be wiped out but only in hardship cases. However, a hardship discharge is a near impossible standard to meet.


MYTH #3: You can’t get credit after you file for bankruptcy.

Not only can you get credit, you might actually get more credit offers after declaring you can’t pay your debts.


MYTH #4: Having too much available credit will hurt you when applying for a loan.

Available credit will not only not hurt you when applying for a mortgage, it can help you. It is important to have a low percentage of credit that you are using compared to credit that you could use. When credit card companies extend your credit limit, this ratio improves and your credit scores rise.

VA Appraisal Issues

Below is a link that I found that can help you if you have a VA appraiser that came in lower than your comps dictate. Good luck if you have this issue because getting these appraisals changed can be a very difficult process.
http://www.vba.va.gov/ro/central/stpau/Real%20Estate%20Professionals/Reconsiderationofvalue.html

Should we really be celebrating America's birthday on The Fourth of July?

WHAT REALLY HAPPENED IN THE SUMMER OF 1776

· June 1776—a committee that includes Thomas Jefferson, Ben Franklin, and John Adams is given the task of drafting a declaration of independence. (Thomas Jefferson does most of the writing and is therefore given credit as its author.)

· July 2, 1776—the 2nd Continental Congress declares the colonies independent. (This is the date that many of the founding fathers, including John Adams, considered America’s Independence Day.)

· July 4, 1776—Congress approves the final version of the declaration presented by the committee. Only two delegates sign this document.

· July 19, 1776—It is ordered that an official copy of the declaration be created on parchment. The order calls for handwritten ornamental script to be used. It is also ordered that all members of Congress are to sign this official document.

· August 2, 1776—John Hancock, along with forty-nine other delegates, puts his now famous signature on the official document. (Five members of Congress sign later that same year and one delegate, Thomas McKean, does not sign it until 1781.)