Mortgage Blog

What should I do with my federal tax refund? Assuming you are getting one, which most of us do. Below are a few ideas that come to my mind that I think you can do with your refund check.

• use it as a down payment on a home
• pay down some credit card debt to increase your credit scores to purchase a home
• pay down credit card debt to increase your purchasing power on a home
• use the refund to pay for your closing cost on a new home
• invest into a high yield fund, so in a short period of time it will grow and use the funds as a down payment on a home of your own
• pay off a car and free up that payment for a home loan payment
• use it to pay down your mortgage so that you are able to refinance into a lower fix rate
• upgrade your existing home with energy efficient appliances or windows and doors

Find positive ways to use your refund verses going out and buying clothes or the new gadget, which that new gadget is the gadget next month. Lets talk about how we can use that refund to purchase a home in the Inland Empire in 2012!

You here it more and more today, credit is everything. that is how the lending community, auto dealers, credit card companies and sometime employment judge you, is your credit. You have someone behind a desk running your credit and judging you based on 3 scores, if all 3 of them are there. So your credit does not depick who you are as a person. It is unfortunately situation that we base your rate and a job based on that number. There are a lot of ways you can improve or at least maintain a healthy credit score.

• Keep revolving balance low, about 30% of the limit
• do not open to many accounts in a short period of time
• do not over extend your limit on the credit card
• pay all debt on time
• do not run your credit report over and over in a 6 month span
• do not allow any collections or judgements appear on your credit
• do not max yourself out on the credit cards
• have at least 3 open tradelines in good standing

Take these small steps to improve or build your credit.

You may be hearing a lot in the news today that in some markets it is cheaper to own than it is do rent. What is holding you back to purchase a home and make a payment that will benefit you on your taxes. Well lets answer some of the questions that are holding you back.

• My credit is not the best at this present moment, then stop delaying and starting the path to improve your credit scores
• I do not have money for a down payment, you can find sources to gift you the funds, savings, retirement plan, sale something, tax refund, etc we can discuss ways for the down payment
• Do not know what I can afford, that is where we come in to discuss this options with you
• I do not feel comfortable with the economy, who does but you have to live somewhere and pay rent, if you default on the rent that still can damage your credit, get over what you hear in the media, this is the best time in modern times to purchase a home
• You have to live somewhere, make that somewhere your own
• Where do I start, start here by call 909-503-5600

Just explore the option of purchasing a home, make that first step towards home ownership. Does not hurt to ask, that is what we have been always taught, well ask!

Credit is everything today especially when it come to purchasing a home. There are several keys factors that can improve ones credit score.

• Keep revolving balances on credit cards below 30% or lower against the high limit
• Pay all debt on time
• Do not occur multiple credit in a 12 month span
• Do not run your credit multiple times in 90 days
• clear any derog marks on your credit such as  collections and judgements

Cash is king today as while as credit, you can have all the money in the world but without a good score it is not worth very much if you are looking to finance a car, home or even a job. Your scores can prevent the ability to move forward in the areas mentioned, the great thing about credit it will come back if you work at it.

Do not walk away from a home that needs a little TLC on the windows, insulation, hot water heater, AC unit or heating unit. There is a loan program that offers up to 5% of the appraised value to remedy these issues, the best part is you do not need to qualify for the additional funds and the appraisal does not need to come in at the higher loan amount. The additional increase in payment is offset by the savings on each energy bill a month. This is an excellent home loan program, this is not a second lien, built into the first lien, one loan.

Needing 1 loan at 100% financing, think USDA Rural Housing Home loan program, that is right one loan at 100%, no money down. Great for any new home buyer looking in specific areas in their county, think about this program and look at the website below on the areas that offer this wonderful home loan program.

website to check available areas where USDA will lend in at 100% financing, thats right NO MONEY home loan program. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11

With interest as low as they have been this past week, I have been reviewing the payment on a 15 year term verses a 30 year term for homebuyers and homeowners looking to refinance into a short term. The rates last week on a 15 year term were anywhere from 3% to 3.5% depending on credit scores and loan to value, in some cases the payment on this new rate was lower than what a 30 year has to offer. Look into that option when looking to finance a home, you might be surprised on how fast you can own your home and build equity a lot faster on a shorter term mortgage.