Gaurav Bhola

How the Economic Stimulus Package Places the Burden upon the American People

Gaurav Bhola (GimmieTheScoop) — Mon, 18 Feb 2008 15:54:07 -0600

Is the US economy in trouble? If it is how long will the crisis last? Will the elected representatives and traditional news media tell the American people the truth or hide the true facts? These are all the questions the American public wants answered and has the right to know.

Unfortunately, it is not being discussed openly and reported upon in the media in a transparent manner. The media conglomerates are parts of huge publicly traded companies whose sole purpose is to increase stock value for their shareholders. So if they start reporting on the true State of the American Economy, than the investors will start selling shares thus, pulling their money out of the market.

Herein, the stock value of many publicly traded companies (including the media companies) will decline. Of course that can’t happen hence, you find useless dribble like this being reported in the mainstream press and publications, such as the BusinessWeek article The Economy: Five Signposts to Recovery.

And of course our elected representatives aren’t being honest with us because they want us to spend money instead of saving money. The best example of this is the nonsensical policy of the Bush Economic Stimulus Package. Instead of telling people to save money for the future, our president and Congress in their wisdom want us to shop, hoping that mass consumerism will be an economic stimulant.

Unbelievable, isn’t it that the government and media are encouraging people to spend the tax rebate money instead of saving it or paying off debt. The current economic mess our nation is in is due to the irresponsible policies of President Bush, Congress, the Federal Reserve Bank, and Wall Street. The subprime mortgage crisis was mainly the result of Alan Greenspan’s Fed policies, Fed not holding Wall Street accountable, greedy Wall Street, the home builders, the mortgage lenders, and mortgage bankers.

The Fed is still afraid to penalize Wall Street for their role in the subprime mortgage meltdown. Wall Street can take all the asymmetric risk that it wants because it knows the Fed will come bail them out by injecting liquidity into the market. For example, the Fed injected $17.25 billion in August 2007 and $31.25 billion in September 2007 into the market to keep credit markets from drying up. Basically, the market can take all the risk it wants without fear of a downside because it knows that the Fed will come to its rescue.

The American economy needs to be rescued but the elected representatives guiding our policies and economy shouldn’t lay the onus upon the American people to bail the economy out, why should Americans bear the burden for misguided policies they had nothing to do with, in consultation nor implementation. If you really think about the true purpose of this new Economic Stimulus Package, Bush, Congress, and Wall Street want Americans to spend money, hoping to have a domino effect within the economy as new money gets pumped into it. So if you truly think about it THEY EXPECT THE AMERICAN PEOPLE TO BAIL OUT THE ECONOMY AND THEIR FAILED POLICIES. It is amazing to me when the people we entrust to look out for our interest, our elected representative tell us to go SHOPPING, instead of saving.

How the Economic Stimulus Package Places the Burden upon the American People

How the Current US Economy Parallels Past Financial Crises

Gaurav Bhola (GimmieTheScoop) — Mon, 18 Feb 2008 15:39:37 -0600

Is the US economy in trouble? If it is what can be the extent of the damage? What is unique about the subprime mortgage crisis? Will the elected representatives and traditional media tell the American people the truth or hide the true facts?

Recently, I found an interesting paper titled, Is the 2007 U.S. Sub-Prime Financial Crisis So Different? by Carmen Reinhart of the University of Maryland and Kenneth Rogoff of Harvard University.

The authors draw parallels between the current US economic issues with five previous financial woes. These five past crises lasted longer than anyone had anticipated. The nations where the extended crises occurred were:

Japan (1992)
Spain (1977)
Norway (1987)
Finland (1991)
Sweden (1991)

It is abundantly clear that these nations vary from the US in many ways but a closer examination reveals some similar patterns.

The Chronicle of Higher Education did just that. In reviewing the Reinhart and Rogoff paper, they focused on the parallels to the Japan crisis. The Chronicle states that like Japan et al., the United States has seen:

A sharp rise in home prices the four years preceding the financial crisis (The U.S. increase was twice as large as the average of the five nations)
An extreme jump in equity prices (Larger in the U.S.)
A healthy rise in account deficits
A decline in per-capita growth in gross domestic product (In this case, the U.S. situation doesn’t appear as bad as in the five predecessors)
An increase in public debt (Here again, the U.S. situation isn’t as bad as in the historical examples – but Reinhart and Rogoff add that “if one were to incorporate the huge buildup in private U.S. debt into these measures, the comparisons would be notably less favorable”)

How the Current US Economy Parallels Past Financial Crises

What Are Conventional Loans

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:54:57 -0600

By, Gaurav Bhola, MSM

The federal government is the major driver of the idea of home ownership. Hence, it has become the biggest player in the residential mortgage market. Approximately one out five residential loans are either guaranteed or insured or by a federal agency. These types of loans are called government loans. The other 80 percent of residential mortgage loans are called conventional loans.

A Conventional mortgage must meet the underlying funding terms and other limits of Freddie Mac and Fannie Mae. For home properties in some states and U.S. territories such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the conforming loan limits are 50 percent higher.

2007 Single-Family Mortgage Loan Limits - Fannie Mae

Single-Family Mortgage Loan limits effective January 1, 2007:

First mortgages

One-family loans: $417,000
Two-family loans: $533,850
Three-family loans: $645,300
Four-family loans: $801,950

Note: One- to four- family mortgages in Alaska, Hawaii, Guam, and the U.S. Virgin Islands are 50 percent higher than the limits for the rest of the country.

Second mortgages

$208,500
In Alaska, Hawaii, Guam, and the U.S. Virgin Islands: $312,750

Source: Fannie Mae

Freddie Mac and Fannie Mae buy conventional loans that meet their guidelines and limits in the secondary mortgage market. The secondary mortgage market for conventional loans is very large and liquid. Majority of the conventional mortgages are bundled into pass-through mortgage-backed securities, which trade in a forward market known as the mortgage TBA (to be announced) market.

Due to the fact that a conventional loan is not given by the government, the lender obtains a lien or defeasible legal title to the property in return mortgage payment. Once the mortgage has been paid in full, you receive the title to your home. This loan may be fixed rate or adjustable rate mortgage.

What Are Conventional Loans

Blog: Gimmie The Scoop

What Are Government Loans?

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:52:20 -0600

By, Gaurav Bhola, MSM

Government loans are mortgage loans that are insured or guaranteed by the federal government. These loans are designed to aid home buyers who meet mortgage criterion that allow them to get into a home either with a lower down payment , a lower interest rate and/or with a lower credit rating.

In many instances consumers seek government loans because they do not qualify for a conventional loan.A conventional loan is simply any loan that is not a VA loan, FHA loan, RHS loan, state or local government loan.

The following three federal agencies provide government loans. Also, the homes purchased must meet certain standards to apply.

U.S. Department of Veterans Affairs (VA) Loans

Qualified military veterans are able to purchase a home under $203,000 with no down payment.

Federal Housing Administration (FHA) Loans

FHA does not provide home loans.
FHA provides the mortgage lender insurance that will compensate the lender for any losses in case of default on the loan
Very low down payment on your home. (between 3-5% based on the FHA appraisal value)
Maximum loan limit depends on the average cost of living in your local area
Flexibility in calculating household income to payment ratios

Rural Housing Services (RHS)

RHS does not provide mortgages, it simply guarantees mortgage loans made to rural residents
Low interest rate loans with no down payment to low to moderate income rural residents
Loans have lower closing costs than with conventional loans

State and Local Loan Programs

Special programs available for first-time home buyers.
Loan offers first-time home buyers with low down payments or lowered interest rates if specific income guidelines are met
Certain state or local agencies provide assistance with down payments and closing cost

What Are Government Loans

Blog: Gimmie The Scoop

What are Hybrid Loans

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:49:39 -0600

By, Gaurav Bhola, MSM

A hybrid mortgage loan has combined features of fixed rate mortgage and adjustable rate mortgages. A hybrid loan is also known as a fixed-period ARM. A hybrid loan initially begins with a fixed period of a fixed interest rate (typically 3, 5, 7 or 10 years). The hybrid mortgage then converts to an adjustable-rate mortgage. It is a wonderful combination of the best features of a fixed rate and adjustable rate mortgage. This combination gives you an initial interest rate during the fixed period of the loan that is lower than a traditional fixed rate mortgage.

Generally, a shorter fixed period for the hybrid loan means a lower initial fixed interest rate. Most homebuyers prefer the 10-year fixed hybrid home loan even though savings might be larger in the short-run with an initial 3-year or 5-year fixed rate term.

Many studies have shown that most people refinance or sell their houses within 5 to 7 years. Therefore, it makes sense for many homebuyers to opt for a 10-year fixed after which they can refinance or sell their homes thus, never experiencing adjustable rate mortgage payments.

It is of critical importance that you become aware that many hybrid loans contain prepayment penalties. In many cases the prepayment penalty is applicable for the first three years of the loan. Hence, if you sold your home within the three years of your loan origination you would be liable for paying the prepayment penalty. It would be feasible to seek alternative mortgage loan options if you are considering selling your home in three years.

There are several varieties of hybrid mortgage loans:

Fixed Period ARMs
Two-Step Mortgage
Convertible ARMs
Graduated Payment Mortgages (GPMs)

So before you decide that a hybrid mortgage loan would make sense for you, take time to find out about any fees, potential penalties, and terms of the loan. Make sure you get a free mortgage rate quote from an expert Mortgage Consultant in your area and arrange for a complementary consultation to see if a hybrid loan is best suited for your needs.

What are Hybrid Loans

Blog: Gimmie The Scoop

Mortgage Applications Jump With Falling Interest Rates

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:47:58 -0600

By, Gaurav Bhola, MSM

The commercial real estate market has been doing extremely well for the last few years. However, its cousin the residential real estate market needs to take advantage of various opportunities for improvement. The housing and mortgage markets have been seeking to return to hey days of the recent past when home sellers couldn't keep pace with demand.

It is the demand for housing has slowed appreciably. Additionally subprime mortgages and foreclosures have raised concerns amongst the policy makers and Wall Street. Before it was a sellers markets, as buyers lined up to bid for houses; now the roles have reversed. Home buying is in the position of strength, as home buyers seek to leverage low home prices.

Whilst, some home buyers have decided to stay on the sidelines for the moment, many are looking for bargains. The home buyers can eventually help revive demand for mortgages such as fixed rate mortgages, adjustable rate mortgages, interest- only mortgages, 100 percent financing loans, second mortgages, subprime mortgages, and conforming loans.

The mortgage challenge can be rejuvenated as home buyers and real estate investors start buying homes and condos. The impetus is already starting, as many real estate investors are beginning to buy condos and use them to generate rental income. The mortgage and housing industry will benefit from the increase in real estate property purchase to be used for rental income generation because these investors and buyers will need mortgage financing.

Also, as interest rates fell this September, many homeowners opted to refinance their home to find their feet. The falling interest rates might have been the reason for the recent jump in mortgage applications. Mortgage application volumes rose by 5.5 percent during the week of November 9.

The Mortgage Bankers Association's (MBA) index increased to 707.3 from 670.6 recently. Many more homeowners are refinancing as reflected in the jump of 6.4 in refinance volume in the first week of November, while home purchase volume rose 4.8 percent.

The further positive effects of lower interest rates can be discerned, as 50.2 percent of total mortgage applications in the first of November were for mortgage refinance.

Many homeowners are choosing to convert their variable rate mortgages into fixed rate mortgages through mortgage refinancing. In the past, homeowners sought to flip houses but now they are looking to buy and hold for the long-term until they see home prices rebound.

This return to traditional real estate investing philosophy mostly means that the housing market won't see the unrealistic price appreciation of the last few years; which unfortunately, locked out many working families and middle class from owning their dream home. Many working families who were able to buy homes through subprime mortgages were unable hold onto their dream homes. So it goes to show homebuyers needs trusted mortgage lenders, mortgage brokers, and real estate agents looking out for their interests.

Mortgage Applications Jump With Falling Interest Rates

Blog: Gimmie The Scoop

What Is An Interest Only Mortgage

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:45:55 -0600

By, Gaurav Bhola, MSM

An interest only mortgage has scheduled monthly mortgage payments consisting of interest only. Generally, the length of the interest mortgage payments last for a period of 5 to 10 years. If you pay only interest during this period your proceeding balance will remain unchanged. However, you may choose to pay more than the minimum interest payment every month.

An interest-only home loan represents a higher risk for lenders; hence, your mortgage loan will have a somewhat higher interest rate. If you expect a substantial increase in income in the forthcoming years the interest only mortgage loan gives you leverage financially. The excess savings from a lower interest only monthly payment can be used for various purposes, ranging from investment into the stock market, to home renovations, among other uses.

Interest-Only Mortgage Loans Benefits

Lower monthly payments during the interest-only payment period
If you have irregular income, like bonuses, commissions, etc.; an interest-only mortgage gives you the flexibility to have increased cash flow to meet your other financial goals
Increase your cash flow, take the extra cash and invest the rest
Real estate investors can leverage the savings and invest in other properties

An interest-only mortgage gives you the option of leveraging your dollars by taking advantage of more affordable mortgage options. More new homebuyers are able to enter the housing market by using low interest-only mortgage payments. Also, if you are a current homeowner looking to upgrade you can leverage the interest-only mortgage loan into a more expensive home that otherwise would be unaffordable.

What is an Interest Only Mortgage

Blog: Gimmie The Scoop

What Is 100% Financing Mortgage Loan?

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:44:13 -0600

By, Gaurav Bhola, MSM

The mortgage industry has worked diligently to find loan solutions for home buyers who wish to purchase a home without a down payment. The industry wants not only to increase home ownership in the U.S., but also target a growing untapped market of consumers who desire home loan solutions that require no down payment. This type of "zero down" mortgage is popularly known as 100% financing.

It is essential to understand that the term, "100% financing," does not automatically signify higher interest rates. Actually, if your credit is good, you are eligible for equivalent rates that are applicable to most traditional mortgage loans.

Nonetheless, in order to obtain 100% financing with an interest rate that parallels a traditional loan rate, you must meet higher standards of credit worthiness. The standards for credit history have been set high by lenders because of greater risk on their part. Usually lenders want you to have a minimum 650 score on a scale range of 300 to 850, 850 being the best credit worthiness.

Also, many lenders due to the risk involved, require you to hold private mortgage insurance (PMI). Private mortgage insurance rates vary depending on the size of the mortgage loan. PMI should be maintained until home equity has increased to a certain level or until it can be verified that you can make payments in continual good standing.

However, if you like to avoid PMI altogether and still be eligible for 100% mortgage financing, an 80/20 loan is an alternative choice. An 80/20 mortgage allows you to receive two loans; the first one covers up to 80% of the home's purchase cost, while the second loan works as a 20% down payment.

The 100% finance mortgage option is good for:

• First-time homebuyers

• New homebuyers with limited financial resources

If you meet any of the above criteria, 100% financing may be an option for you. This type of mortgage loan gives you flexibility of buying a home without need for immediate financing. You can get a quick rate for 100% financing and speak with a Mortgage Consultant to see if this is ideal for your specific needs.

What is 100% Financing Mortgage Loan?

Blog: Gimmie The Scoop

What Are Subprime Mortgages?

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:41:45 -0600

By, Gaurav Bhola, MSM

Subprime mortgages are mortgage loans meant to help borrowers who are unable to qualify for traditional mortgages that require good to excellent credit histories. Due to the fact of higher risk of default inherent in subprime mortgage lending, subprime borrowers receive higher interest rates on their mortgage loans than their traditional counterparts. The subprime mortgage loan terms may also include additional regular fees, or up-front charges.

As defined by the U.S. Department of Treasury guidelines issued in 2001, subprime borrowers usually have weakened credit histories that are inclusive of payment delinquencies, problems such as charge-offs bankruptcies, and/or judgments. The borrower's credit history may reflect reduced repayment capacity as defined by credit scores, higher debt-to-income ratios, or other credit criterion. Borrowers are individuals with limited income or FICO credit scores below 620 on a range from 300 to 850. The different types of subprime mortgages include:

Initial fixed rate mortgages that soon convert to adjustable variable rates.

"Pick a payment" loans that allow borrowers to select their kind of monthly mortgage payment (interest only , interest and principal, or a minimum payment that might be lower than a payment essential in reducing the balance of the loan)

Interest-only mortgage loans, that permit borrowers to pay only interest for a fixed period, typically 5-10 years; after which the monthly mortgage payment may include principal and interest.

Subprime mortgages have become immensely popular over the years. Also, lenders are becoming more conservative in their subprime lending practices. However, it doesn't cost the borrower anything to get a free bad credit loan quote and to see if they can get a subprime mortgage.

What are Subprime Mortgages

Positive Outlook for Commercial Real Estate

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:39:27 -0600

By, Gaurav Bhola, MSM

The housing and mortgage market have been going through some difficult times in recent months. However, unlike the residential real estate cousin, the commercial real estate market has been doing well.

The construction spending on shopping centers, office buildings, and other nonresidential projects rose by 15.2 percent in August, led by strong growth in retail and office segments. Commercial retail sales jumped to $401 billion from $359 billion last year.

Unlike, residential real estate, where home loan mortgages, such as interest only mortgages, adjustable rate mortgages, and subprime mortgages have been a cause of concern, along with foreclosures; the commercial mortgage and real estate market has been growing.

The current home loan market has not had any residual effects on the commercial market. According to many experts, the commercial market has been able to sustain itself and grow because the buyers and sellers are more sophisticated and have more financial wherewithal to ride out any turmoil.

Just like the housing market, the commercial arena is a great place to look for opportunities for investment; although bargains are more readily available in the home buying market. The commercial mortgage and real estate market is a different animal than the residential construction business.

In the commercial arena, banks have a direct relationship with commercial real estate developers and other business leaders, not banks and homeowners as in the housing market. This by in itself creates more stability in the commercial market as commercial mortgage lenders are familiar with the real estate business history of the borrower, thus providing less risk to the banker.

But this doesn't mean that the market would be unaffected if economic progress didn't accelerate. If there is a correction in the economy, commercial real estate market may become vulnerable to the credit-risk contagion. This may lead some sellers asking for more money upfront if other mortgage-backed assets are financing the purchase.

In New York, Washington, San Francisco, and some other areas of the country, institutional and foreign investments have remained stable. The core fundamentals of the commercial market remain muscular with increasing occupancy and rent levels projected to grow, particularly in metropolitan areas.

At present there is no oversupply of commercial properties, a good sign for maintaining real estate price levels. In order to keep the prices adequate and occupancy high, it is better to have an undersupply, not an oversupply.

Herein, Host Hotels & Resorts Inc., the country's biggest lodging real estate investment trust, announced this month its third-quarter results which beat Wall Street analyst estimates due to superior occupancy and lodging rates. Also, the $22 billion acquisition of Archstone-Smith Trust, an apartment building operator by commercial real estate company, Tishman Speyer earlier this month gave another boost in the arm to the marketplace.

This shows there is still much confidence in the continued growth of the commercial mortgage and real estate market. Certainly, there is plenty of capital available from investors.

Positive Outlook for Commercial Real Estate

Blog: Gimmie The Scoop

What is a Second Mortgage

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:35:10 -0600

By, Gaurav Bhola, MSM

A second mortgage is a secured mortgage loan which is secondary to another loan against the same asset. In the real estate arena, a singular property can have numerous loans against it. The mortgage loan that is duly registered foremost with the proper state, city or county agency is classified as the first mortgage. Hence, the mortgage loan registered second is classified the second mortgage, a third loan against the same property is considered a third mortgage, and so on. So the same property can have multiple mortgage loans.

A second home mortgage loan is also called a subordinate mortgage because if this loan goes into default, the primary or first mortgage is paid in full then, the second mortgage receives any money. Due to this reason, second mortgage lenders are taking on more risk, thus they pass on some of the risk to you by charging a higher interest rate. If you are thinking about taking out a second mortgage make sure that you can afford to do so and are prepared to place yourself in more challenging financial circumstances with regards to your mortgage loan.

Once upon a time second mortgage loans had a stigma of financial hardship attached to the homeowner who sought the loan. However, overtime this is no longer the case and there is wide spread appeal and acceptance of second mortgages.

Types of Second Mortgages:

Home Equity Line of Credit
Home Equity Loan
Traditional Mortgage

A second mortgage may be good option for:

Home improvement
Home renovation
College tuition
Debt consolidation
Emergencies

Make sure you get a free second mortgage rate quote to see if it makes sense for your specific financial goals.

What is a Second Mortgage

Blog: Gimmie The Scoop

Top Six Reasons to Do a Mortgage Refinance

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:27:33 -0600

By, Gaurav Bhola, MSM

There are several reasons to do a mortgage refinance. Here are the top six reasons to refinance:

1. Lower Your Monthly Payment

Have you ever asked yourself if you could lower your monthly payment? Work with a personal Mortgage Consultant to customize a refinancing solution to meet your specific loan needs.

Refinancing to a lower interest rate means more cash for you
Enjoy more options with money you save every month due to lower monthly payment
Pay off your loan faster if you choose to by paying a little more every month on your mortgage from the extra money you save from refinancing to a lower rate
You can use that extra cash to pay off high interest debts, have your dream vacation, do home improvements or whatever you need
Refinancing your home with us will give you choice and flexibility in your finances - Let's get started!

2. Put Cash in Your Pocket You have built up equity in your home but would like to put it to good use. Why not use a cash-out refinance loan? Some ways that capitalizing on your home equity can benefit you:

Helps you take charge of your financial situation
Increase your home's value by making home improvements
Pay yourself first by using it like an another source of income
Finally take that dream vacation
Buy your vacation home
Pay off high interest credit cards
Your home loan interest may be tax deductible, unlike credit card interest

3. Consolidate My Debt. Simplify My Life. It is easy to fall into debt but difficult to get out of it. Why not simplify your life and consolidate your debt into one easy payment:

One easy monthly payment in place of figuring out your bills
Stop the cycle and pay off your revolving credit card accounts
Pay off your high interest debt with one simple refinance mortgage
Generally, your home loan interest is tax deductible, not like your credit card interest
Whatever your credit, we can get you refinanced

4. My Credit Score Has Improved

You have worked hard towards rebuilding your credit, it may be time for a mortgage refinance:

An improved credit score can get you a lower rate
You may be able to improve your credit even further
Reduce your monthly payment, save on interest and put more cash in your pocket monthly
We can also review opportunities to increase your credit score.

5. Stop My Payments From Rising. Take the guess work out of your current adjustable-rate mortgage (ARM), convert to lower fixed monthly mortgage payments:

Low fixed refinance mortgage can give your more control of your finance
Take charge refinancing now to a lower fixed rate can help with cash flow
Have security from rising interest rates
Discover refinance options that work best for you

6. Leverage Cash from My Real Estate Investment:

You are an entrepreneur at heart but would like to maximize your real estate investment. Why not refinance your investment property and leverage a lower payment towards other investment opportunities:

Lower refinance mortgage payments will give you increased cash flow
Use the extra cash to search for other investment opportunities, possibly diversify your investment portfolio
Increase your property value, and make home improvements from the improved cash flow.

Top Six Reasons to Do a Mortgage Refinance

Blog: Gimmie The Scoop

Useful Tips on Buying a Home

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:25:32 -0600

By, Gaurav Bhola, MSM

Home buying is one of the most important financial decisions you can make. With the proper resources, home buying can be an easier process. Let's learn the basics of home buying in seven easy steps.

Step 1: Identify My Home Needs

List in order of priority the features and options you would like in your next home

Discover what these features would add onto the cost of your home

Narrow down your choices based on the reasons why you want to include them in your next home

Narrow the options even further within the spectrum of your budget

Weigh desires against needs and available funds

Step 2: What Can I Afford?

You have now by process of elimination finalized a list of what your home should include from the number of rooms to the type of floors and everything in between. It is now time to crunch the numbers to see what is within your budget. Use online tools and mortgage calculators for help. Now is the time to take the next step. Many people try to understand the difference between pre-qualified and pre-approved mortgages. Let's take a look:

Pre-qualified

Pre-qualified for a mortgage is something you can do very easily

Taking the steps to pre-qualify will give you a basic idea of how much you can borrow

You are not really applying for a loan, you are simply sharing with a mortgage consultant your credit history, income, assets and liabilities

Since with your pre-qualification no information has been verified, your mortgage consultant cannot guarantee a mortgage loan amount

Remember pre-qualification is just a preliminary step in getting a home loan; herein, this is where pre-approval becomes important

Pre-approval

You can skip to the pre-approval step to save time and be more efficient in your home buying process

Tells the real estate agent and seller that your are serious about your home purchase

Your information is verified and gives you control when making an offer to a home seller

Lets you know your affordable price range

Can speed up your home buying process

However, pre-approval is not the final step; mortgage lenders will want to know what home you are interested in purchasing before locking in your interest rate.

Getting pre-approval can be very fast and sometimes only take a few minutes

Use your mortgage pre-approval as leverage when negotiating for a home

Step 3: Shopping for My Home

You have decided which community you would like to reside in and have solidified your home price range; it is now time to start looking for your home

Your search:

It is good to check out a real estate agent directory online to find a local realtor that can help guide you through the pitfalls of home searches

By enlisting the help of a professional realtor you can save a lot of time and money

Give the realtor your specifications and you can start visiting homes in your target community and price affordability

Be patient, have an open mind, and enjoy the journey that leads to the path of your new home

Step 4: This is My Offer

You have found the home you wanted; now it is time to make the offer.

Remember the seller and you have different goals. You want to buy at the lowest price while the seller wants to sell at the highest price

If you have a real estate professional working on your behalf it can make the negotiation process easier for you.

It is critical that you hold all of your cards close to your chest when negotiating: don't tell the homeowner about your moving status, your current financial status and, your thoughts about the home.

Basically, keep your interaction with the homeowner to a minimum and keep it professionally cordial; don't lose your leverage at the negotiating table

Step 5: My Home Inspection

Once you and the seller have agreed upon a price, it is time for the extensive home inspection. Some of the inspections to be considered are:

Insect

Radon

Building quality

Oil tank

Asbestos

Title

Termite

Lead paint analysis (if house built earlier than 1980s) etc.

There are some basic inspections you should do depending on your form of financing. It is upto you how extensive the inspection is, sometimes 2 or 3 separate inspections can be performed:

First inspection should be your own basic one

Second inspection should be a professional complete home inspection by a reputable person

Third, a mini-inspection should be performed at the end of the appraisal. But don't depend on this appraisal as your only inspection of the home

I cannot highlight enough the critical importance of having an extensive inspection. It is better not to skimp on a few hundred dollars on a home inspection and pay thousands later on in home repairs that could have been avoided if discovered during a thorough inspection. The offer of purchase should be contingent upon a satisfactory home inspection report. When it comes to the inspection have the final say and not let anyone dissuade you from carrying it forward to your satisfaction.

Also, if you have a proper inspection and move into the house, the inspection can give you an out from the legal contract. If the damage cannot be compensated for monetarily or repaired to professional standards, you still may have the option to cancel the contract. Remember inspections are not there to reveal cosmetic deficiencies but material ones that can affect livability, resale value or safety.

Also, don't wait till you have placed an offer on the table to look for an inspector. The contract may have time limits designating when the home inspection must be completed by (usually 7 to 14 days). If you search for an inspector after the offer, you may be left with two choices:

Work with an inspector not of your first choice

Risk going past home inspection deadline (this may void chances of the seller fixing any repairs)

Neither is a palatable option.

Step 6: My Home Insurance

While having your inspection done check into home insurance or home protection plans. What does home insurance do? Home insurance policies can be purchased by the buyer or seller and help protect against unexpected costs or home repairs during the listing period or in the initial years after a home has been purchased.

Provides you financial protection against disasters

Your standard policy protects your home and its belongings

Covers you in case of damage to your property

Gives liability protection in case you or members of your family cause an injury and property damage to other people; includes damage caused by your household pets

Damage caused by many disasters with the exception of earthquakes, poor maintenance, and floods

You have the option of purchasing separate home insurance policies for flood and earthquake

Damage due to poor maintenance is not covered, that is your responsibility

Also, having a higher deductible can lower your insurance premium.

Step 7: My Home Closing

You are now one step closer to your new home, only the final closing stands before you. Make sure you have the necessary items for the closing;

Complete paper work and deposits

Title work

Homeowners insurance

Other items necessary under local and state laws

Now it's official, it is your new home. It is time to move in.

Useful Tips on Buying a Home

Blog: Gimmie The Scoop

Home Loan Finance And Mortgage Refinance Options

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:20:47 -0600

By, Gaurav Bhola, MSM

After buying your home it is now time to find the perfect mortgage financing. Make sure you consult an expert Mortgage Consultant in terms of financing that fits your needs. There are many choices available to you for home loan finance and mortgage refinance. But it is critical that you take your time to understand the various choices before making a final decision. Here are some home financing options:

· Fixed-Rate Mortgages

· Adjustable Rate Mortgage(ARM)

· Interest-Only Mortgage Loans

· Conforming Loans

· Jumbo Loans

· Subprime Mortgages

· Hybrid Mortgage Loans

· 100% Financing

· Conventional Loans

· Government Loans

Refinance for My Current Home

If you presently own your home, refinancing to a lower rate can save you dollars. Help increase your cash flow. Here are some reasons to refinance;

· Consolidate and pay off your debt

· Pay for your home improvements

· Start your business

· Pay your major medical bills

· Buy your car

Leverage the Equity in My Home

A home equity line of credit (HELOC) is an alternative to finance major items. The mechanics of a HELOC is analogous to the way a credit card work. The equity in your home is used as collateral for a loan which is a revolving line of credit from which you can draw money. You receive a set checkbooks or a type of credit card you can use to pay for items during times of purchase. HELOCS can be used for:

· Your home improvements

· Consolidating and paying off your debt

· Taking your dream vacation

· Buying your second property

· Paying for your major purchases

· Pay for college tuition

Home Loan Finance And Mortgage Refinance Options

Blog: Gimmie The Scoop

Sell Your Home Fast By Using These Tips

Gaurav Bhola (GimmieTheScoop) — Tue, 05 Feb 2008 15:14:39 -0600

By, Gaurav Bhola, MSM

It is time to make a move and you need to sell your home fast. Use the following strategies to sell your home quickly:

Step 1: My Marketing Strategy

When selling your home, how do you want to distinguish your home from the rest of the flock? How serious and dedicated are you in doing what it takes to sell your house before your neighbor sells his?

There are several steps you can take to speed up the home selling process:

· Have a marketing plan, nothing complex but come up with something that reflects some effort on your part.

· Separate yourself from the local herd

· Do what it takes to distinguish your home by repainting, landscaping, among other creative steps.

· Hold an open house

· Advertise in the local paper

· Post you home on the internet

· Most importantly list your home with a local realtor. A professional realtor can also help you with your marketing plan

· A professional realtor can make the process simple and help your home in the shortest time possible

Step 2: My Price

Included in your marketing plan is your list price. Consider certain things before deciding upon your home value price:

· Don't make it too expensive, if priced too high many buyers will simply gloss over your listing

· Set a realistic price, based on recent sale prices of comparable homes sold in your area

· Evaluate local housing and real estate market trends

· Look at what your competition is doing

· Ask a real estate agent for help in assessing your home value

Step 3: Time to Show My Home

It is time to put your best foot forward.

· Clean your home top to bottom, every crevice, nook and cranny

· Get rid of clutter, have a garage sale if necessary

· Give the home a fresh coat of paint, if it needs it

· Manicure the lawn

· Put some effort in landscaping

· Speak with your realtor about ideas for curb appeal

Step 4: Making My Deal Happen

This is the time to get down to the nitty gritty. Someone wants to purchase your home and has made an offer, time to negotiate.

· Get guidance from your realtor during the negotiation, they are an invaluable resource

· Your realtor works on your behalf to get you the best possible price for your home

· Once you like the offer, it is time to seal the deal, make sure deadlines are met with regards to home inspections, buyer visits, deposits, and other items

· Be prepared for any renegotiation

At the closing, come prepared have the proper documents to seal the deal. Your professional realtor can help you prepare for the close.

Sell Your Home Fast By Using These Tips

Blog: Gimmie The Scoop

Top Ten Gadgets for Business & Consumers II

Gaurav Bhola (GimmieTheScoop) — Mon, 28 Jan 2008 13:30:01 -0600

Top Ten Gadgets for Business & Consumers II

by, Gaurav Bhola, MSM

Business gadgets and consumer gadgets are gaining popularity worldwide. Here are the popular Top Ten Gadgets for Business & Consumers:

3M LED Mobile Phone Projector

The projectors keep getting smaller and now come in micro size. Following on the heels of Texas Instruments and Microvision small projectors, 3M will be coming out with a fully operation micro projection device that can be placed in any mobile phone.

The 3M LED projector will be embedded in mobile devices as early as the first-second quarter of this year. The projector is VGA capable with a brightness of around 8-10 lumens, and roughly the same size as a wireless earpiece. It can project an image of up to 50in.

Price: NA

Everex Cloudbook

The alternative to the PCs is here, the Everex Cloudbook. The 2 lbs Cloudbook comes with open source software which includes Everex's gOS Rocket, a version of Ubuntu.

The small system includes a 1.2GHz processor, a 30GB Hard Disk Drive, 7" WVGA TFT Display (800 x 480), 4-in1 Media Card Reader, 802.11b/g, (1) 10/100 Ethernet Port, 3MP Webcam, and more.

According to the website, this mini notebook will be available at Walmart stores after January 25 of this year.

Price: $399

EyeFi 2GB SD Card

The EyeFi SD card is an awesome 2-1 bang for the buck. It gives you storage and the mechanics to transfer your photos from the card to your computer and can upload pictures to a variety of social networking or photo sharing sites of your choice via Wi-Fi. The EyeFi SD Card wirelessly transfers photos from inside your digital camera through your home Wi-Fi network. It can save you extra money in buying docking stations to transfer files, the hassle of hooking up a USB cable, or paying extra for a digital camera with Wi-Fi photo transfer capability.

Price: $99.99

Neonode N2

The Swedish Neonode N2 phone is about to hit stateside by the second quarter of 2008. So why is the phone coming here now, since the N1 never crossed the Atlantic? Probably they saw the success of the Apple iPhone as perfect opportunity to leverage the touch screen fad. Well, the Neonode N2 is not exactly a touch screen like the infamous Apple iPhone, its user interface works by acknowledging the movement of your fingertip, basically you can perform phone tasks such as dialing, receiving calls, watching videos, taking photos, listening to music, and so on without touching the screen. The screen feature is much better than the iPhone. Like the iPhone, it is not a 3G phone. But the Bluetooth Neonode N2 is not Wi-Fi capable. Can’t believe it.

For international travelers, the quad band GSM is a handy feature, since 85% of the world uses GSM mobile technology. It is nice of Neonode to include a 1GB MiniSD card with the phone. The Neonode N2.5 is under development, it will have 3G capability.

Price: Unlocked around $400.00 on ebay

Walletex Mp3 Player

The world’s thinnest and most portable Mp3 is here, the Walletex Mp3 Player. Just hook it up to your computer via a USB cable to upload music. While the music is conveniently uploading, your wallet Mp3 player is getting recharged all-onto an unbreakable plastic and waterproof platform.

It can hold upto 4GB of data. Not bad for a truly economical device. Hopefully, the Walletex Mp3 Player will hit the market soon.

Price: Not Known

Fujitsu LifeBook U810 Tablet PC

The business traveler just got another boon. In the crowded space of laptops, and the growing space of tablet PCs, Fujitsu has come out with a KO. The new Fujitsu LifeBook U810 has the functionality of a traditional laptop with half the cost. It weighs only 1.56 lbs and is the world’s smallest convertible notebook. The LifeBook U810 is feature rich, 5.6" WSVGA Crystal View display, 40 GB hard drive, built-in webcam, Bluetooth, Ethernet, fingerprint reader, wireless LAN, Windows Vista, MP3 playback, and more. For the mobile professional, you can’t resist the Fujitsu LifeBook U810.

Price: $999

Wireless HDTV

I am not the only one tired of the logjam of wires at the back of my media home entertainment suite. Thankfully, the electronic arena is moving away from wires to wireless and the HDTV is no exception.

There are many manufacturers coming out with these sets. Westinghouse has revealed the world’s first integrated wireless HDTV. The 47-inch wireless LCD HDTV has a built in receiver that captures wireless signals from a wideband transmitter plugged into an HD DVD player.

The initial run of these wireless HDTVs will be targeted towards business, then cheaper versions will be filtered down to consumers. Other manufacturers coming out soon with wireless HDTVs are LG, Sharp, and Panasonic.

Price: Not Known

Polaroid Digital Instant Mobile Photo Printer

Is Polaroid still around? I guess so. I thought, I would only hear the Polaroid name repeated in the corridors of a Technology Museum Hall of Fame. But wonders never cease, neither does the Polaroid brand. Like a Phoenix rising out of the instant camera ashes, Polaroid redeems itself with the Instant Mobile Photo Printer.

The Polaroid Mobile Photo Printer can print 2X3 inch photos wirelessly from any Bluetooth camera phone in less than a minute.

Price: $150

Kodak & Belkin Bluetooth Photo Dongle

Kodak and Belkin introduce the fruits of their combined labor, a Bluetooth photo dongle that transmits your digital photos from a camera to the PC, even directly to the and even, to MySpace or, Facebook with ease.

At the moment, consumers take pictures with their camera phones and pay to send those images in a compressed format. The Kodak & Belkin Bluetooth Photo Dongle wirelessly transfers full resolution pics, making printing and sharing of photos much easier than the compressed pics. The dongle is accompanied with Kodak photo software.

Price: $50

Pharos Trips and Pics

Why not stop carrying multiple digital devices on your business trips or vacations. Pharos Trips and Pics is a trip recorder combined with a photo journal. It is a digital camera that works as a GPS device with an attachment. You can share your trip photos via Microsoft Streets & Maps or Google Earth. The Pharos can store from 1 ½ to 45 days of locations and times. It comes with a rechargeable battery that can keep your Pharos Trip & Pics going for 24 hours.

Price: $89.95

For Kicks

iCarta iPod Toilet Roll Holder

An iPod accessory you cannot live without? The iCarta iPod Toilet Roll Holder from US manufacturer Atech Flash Technology is the ultimate iPod accessory which combines a toilet roll dispenser with a fully functional iPod docking station and moisture-free speakers.

Now you can sing along with your favorite iTunes while in the shower or while reading on your throne. Either way this is truly a collector’s item to be much celebrated with fanfare by the Apple fanboy.

Price: $69.99

Enough Said.

Changing Times: Barack Obama Surprise Historic Victory in Iowa Caucus 2008. Hillary Clinton Gets the Bronze Medal in Iowa

Gaurav Bhola (GimmieTheScoop) — Tue, 08 Jan 2008 09:26:36 -0600

Presidential Election: Presidential Candidates 2008 - Election Coverage

Changing Times: Barack Obama Surprise Historic Victory in Iowa Caucus 2008. Hillary Clinton Gets the Bronze Medal in Iowa

By, Gaurav Bhola, MSM

In another surprising turn of events in the presidential election 2008, Democratic presidential candidate Barack Obama won the Democrat vote at the Iowa Caucus. Obama received 38 percent of the democratic vote, compared to 30 percent for John Edwards and 29 percent for Hillary Clinton.

Meanwhile, the Republicans gave the victory to Republican presidential candidate Mike Huckabee with 34 of percent of votes, compared to 25 percent for Romney. McCain got 13 percent, Fred Thompson received 13 percent, Ron Paul had 10 percent, and Rudy Giuliani national polls front-runner got only 3 percent of the vote.

This is a historic moment in American history as well US Presidential politics, as Barack Obama is the first African American to have a successful run for the presidency. Sure, African Americans Jesse Jackson and Al Sharpton have run for president before, but none have reached the pinnacle that Obama has.

It is a positive reflection of the changing times in America when a minority (Obama) can carry a state with a 95 percent white population, and a mid-western state at that.

It is another sign of positive changing times in America when a woman can have a successful bid for the job of head of state. It is interesting commentary about our country being the most developed nation not only in terms of economics, technology, and military progress but democratic principles of equal opportunity for all; that it took the tail end of the first decade of the twenty first century for a woman to have a realistic opportunity at a successful bid to become the President of the United States.

In the twentieth century, the international arena saw many women leaders:

1. Sirimavo Bandaranaike, Sri Lanka
Prime Minister, 1960-1965, 1970-1977, 1994-2000
2. Indira Gandhi, India
Prime Minister, 1966-77, 1980-1984
3. Golda Meir, Israel
Prime Minister, 1969-1974
4. Isabel Peron, Argentina
President, 1974-1976
5. Elisabeth Domitien, Central African Republic
Prime Minister, 1975-1976
6. Margaret Thatcher, Great Britain
Prime Minister, 1979-1990
7. Maria da Lourdes Pintasilgo, Portugal
Prime Minister, 1979-1980
8. Lidia Gueiler Tejada, Bolivia
Prime Minister, 1979-1980
9. Dame Eugenia Charles, Dominica
Prime Minister, 1980-1995
10. Vigdís Finnbogadóttír, Iceland
President, 1980-1996
11. Gro Harlem Brundtland, Norway
Prime Minister, 1981, 1986-1989, 1990-1996.
12. Soong Ching-Ling, Peoples' Republic of China
Honorary President, 1981
13. Milka Planinc, Yugoslavia
Federal Prime Minister, 1982-1986
14. Agatha Barbara, Malta
President, 1982-1987
15. Maria Liberia-Peters, Netherlands Antilles
Prime Minister, 1984-1986, 1988-1993
16. Corazon Aquino, Philippines
President, 1986-1992
17. Benazir Bhutto, Pakistan
Prime Minister, 1988-1990, 1993-1996
18. Kazimiera Danuta Prunskiena, Lithuania
Prime Minister, 1990-1991
19. Violeta Barrios de Chamorro, Nicaragua
Prime Minister, 1990-1996
20. Mary Robinson, Ireland
President, 1990-1997
21. Ertha Pascal Trouillot, Haiti
Interim President, 1990-1991
22. Sabine Bergmann-Pohl, German Democratic Republic
President, 1990
23. Aung San Suu Kyi, Myanmar (Burma)
Her party won 80% of the seats in a democratic election in 1990, but the military government refused to recognize the results. She was awarded the Nobel Peace Prize in 1991
24. Khaleda Zia, Bangladesh
Prime Minister, 1991-1996
25. Edith Cresson, France
Prime Minister, 1991-1992
26. Hanna Suchocka, Poland
Prime Minister, 1992-1993
27. Kim Campbell, Canada
Prime Minister, 1993
28. Sylvie Kinigi, Burundi
Prime Minister, 1993-1994
29. Agathe Uwilingiyimana, Rwanda
Prime Minister, 1993-1994
30. Susanne Camelia-Romer, Netherlands Antilles
Prime Minister, 1993, 1998- 1999
31. Tansu Çiller, Turkey
Prime Minister, 1993-1995
32. Chandrika Bandaranaike Kumaratunge, Sri Lanka
Prime Minister, 1994, President, 1994- 2005
33. Reneta Indzhova, Bulgaria
Interim Prime Minister, 1994-1995
34. Claudette Werleigh, Haiti
Prime Minister, 1995-1996
35. Sheikh Hasina Wajed, Bangladesh
Prime Minister, 1996- 2001
36. Mary McAleese, Ireland
President, 1997- Present
37. Pamela Gordon, Bermuda
Premier, 1997-1998
38. Janet Jagan, Guyana
Prime Minister, 1997, President, 1997-1999
39. Jenny Shipley, New Zealand
Prime Minister, 1997-1999
40. Ruth Dreifuss, Switzerland
President, 1999-2000
41. Jennifer Smith, Bermuda
Prime Minister, 1998- 2003
42. Nyam-Osoriyn Tuyaa, Mongolia
Acting Prime Minister, July 1999
43. Helen Clark, New Zealand
Prime Minister, 1999- Present
44. Mireya Elisa Moscoso de Arias, Panama
President, 1999 - 2004
45. Vaira Vike-Freiberga, Latvia
President, 1999- 2007
46. Tarja Kaarina Halonen, Finland
President, 2000- Present
Source: Women History

So America’s tryst with history may have finally arrived with regards to presidential politics, where all men and women are created equal. Based on the current ground realities, barring any unforeseen dynamic changes, in 2008, America will either have its first African American President or its first Woman President.

Gimmie The Scoop.com

Federal Government Seeks to Prevent Economic Recession

Gaurav Bhola (GimmieTheScoop) — Tue, 08 Jan 2008 09:22:38 -0600

Federal Government Seeks to Prevent Economic Recession

Mortgage Home Loan and Housing Market Main Areas of Focus for Government

By, Gaurav Bhola, MSM

The housing market corrections of 2007 may well continue into 2008. The government is scrambling to forestall any further market adjustments. The government wants to be proactive in avoiding any severe downturn in the economy. There is a feeling that the government needs to be doing more than the Bush mortgage rate freeze plan for certain subprime adjustable rate mortgages.

Recently, the Bush Administration announced that with the partnership of the mortgage home loan industry, some mortgage loans will qualify for a freeze of the low introductory teaser interest rates for five years such as, certain subprime mortgages.

This deal prevents interest rates from readjusting to higher mortgage rates. This modest Bush plan can help prevent thousands of foreclosures. The rate freeze could buy time for the housing market to rebound, making it possible for homeowners to do a mortgage refinance to affordable fixed-rate home loans.

However, out of the 3.5 million homeowners that could be negatively affected with their adjustable rate mortgages in the coming months, only 250,000 homeowners qualify for the freeze.

The lack of inclusiveness of the Bush plan is leading many in government calling for more expansive and thorough plan of action to prevent prolonged economic recessions this year.

In order to avoid an economic recession comparable to the one 27 years ago, experts and government officials are calling for temporary tax cuts and mass spending on the magnitude of $50 billion or more.

Even Republicans and Alan Greenspan are calling for greater government intervention.

In addition to the mortgage rate freeze, the Bush administration is seeking to increase cap on the size of home loans Fannie Mae and Freddie Mac can handle.

The Bush plans may provide some help on the margins of the mortgage and housing spectrum without addressing the core issues of the credit crunch and rising foreclosures.

The Federal Reserve has cut interest rates by one percentage point since August, providing little impetus for the economy to move north.

Some believe that the Fed will have to cut the funds rate, to provoke banks to provide consumers more accessible low interest rate loans.

The Fed’s monetary policy hopes to influence positively, outcomes like economic growth and inflation this year.

The increasing energy prices will also influence future government proposals in navigating the economy. The mortgage and housing market outcome will greatly depend on the strength of government involvement in tackling the core issues to remedy the mortgage, credit, and housing markets.

Hillary Clinton Commits Foreign Policy Faux Pas

Gaurav Bhola (GimmieTheScoop) — Fri, 04 Jan 2008 13:53:12 -0600

Presidential Election: Presidential Candidates 2008 - Election Coverage

By, Gaurav BHOLA, MSM

Earlier this week Democratic presidential candidate Joe Biden hinted that the leading presidential candidate, rival Hillary Clinton lacks foreign policy experience.

The Senator from Delaware has held his foreign policy credentials as par excellence when he compares them to his democratic rivals in election 2008. He was bringing to the American public’s attention a serious gaffe made by Hillary Clinton with regards to the recent events in Pakistan.

In two separate news interviews, Senator Clinton stated the wrong information about the upcoming Pakistani elections:

She stated on ABC Sunday that, “[if Musharraf] could be the only person on the ballot. I don’t think that’s a real election.”

She stated in a Wolf Blitzer interview, “If President Musharraf wishes to stand for election, then he should abide by the same rules that every other candidate will have to follow.”

These are serious errors, and show a lack of elementary understanding of current international affairs in an important country like Pakistan. Pakistan will be holding parliamentary elections not presidential ones. Musharraf was re-elected President last year.

Her gaffes follow Republican presidential candidate Mike Huckabee’s comments last week that Afghanistan is on Pakistan’s eastern border. India shares Pakistan’s eastern border while Afghanistan shares the western.

Gimmie The Scoop

Credit Card Companies Target College Students–Part 3

Gaurav Bhola (GimmieTheScoop) — Thu, 03 Jan 2008 10:38:13 -0600

By GauravBhola, MSM

Credit Card Companies Target College Students–Part 3

The credit card companies have ensnared the college and university system in their web of exploitation of college students. The schools have contracted with credit card companies in affinity programs that undermine students’ interests. An affinity program is a contractual agreement between a credit card issuer and a university in which a card company can market to the students, faculty, and alumni their cards exclusively; in return the university gets money.

The money in return for exclusivity can run into multi-millions, much needed funds for many universities. However, this comes at a steep price, with colleges forgoing their responsibilities to students. An inherent conflict of interest arises with these affinity programs; as the college overlooks student interest for sake of credit card company interest.

Affinity relationships can be worth more than $15 million, depending on the university. Usually, the affinity agreement includes the school partnering with a credit company to issue a co-branded card, a school logo card. Bank of America has majority of the exclusive deals with colleges, with 900 agreements. Chase has 40 affinity partnerships with schools nationwide.

Also, the schools can earn annual royalties, in the millions. In return for payments, card companies get access to entire student, faculty, and alumni lists. They also can market at school events, such as sports events and more.

So, what is the harm, some say? The affinity programs pose a direct threat to the schools responsibility to students’ benefits. The colleges when tempted with easy funds will not shy away from scrutinizing the credit terms or their marketing activities.

Chase’s wonderful credit card terms included double-cycle billing, which according to the General Accounting Office is a method used by one-third of credit card issuers. A double cycle billing example: I have zero balance and I purchase something for a $100. I make my payment on-time of $75 and carry over a $25 balance into the next statement. When I get me next statement, under the double-billing method I would be charged interest on the full $100, rather than the $25 balance alone. This is one of the most audacious, loan shark like, weasely, and reprehensible things credit card companies do.

Imagine, exploiting financially innocent students this way, let alone general consumers. Unless, there is grassroots uproar against the cozy nexus between the colleges and credit card companies, such practices will continue. The only ones to suffer will be students and their families.

Part 4: Coming soon...

Credit Card Companies Target College Students–Part 2

Gaurav Bhola (GimmieTheScoop) — Thu, 03 Jan 2008 10:34:48 -0600

By GauravBhola, MSM

Credit Card Companies Target College Students–Part 2

In the world of credit card companies, anything and anyone is fair game, until the laws say otherwise. The targeting of college students is well researched and positioned. Like other predatory business, such as payday loans, credit card issuers also prey upon the weak, the financially unsavvy. Like cigarette companies, card companies want to hook consumers to their product at a young age. In their quest for business perpetuity, card companies have expanded their innovative marketing efforts to the halls of higher education.

The aim of credit card companies on campus is to get college students to fill out completed applications. With the full acquiescence of the college and university, college students are recruited by card companies to solicit their fellow college students to apply for credit cards.

A credit card college representative provides the initial training to a group of students interested in making easy money, commission sales. A student card salesman can earn upto $15 for every completed application. In return for completing an application, you get a free shirt or some other trinket. That seems like a fair trade, your personal information for a t-shirt.
So student salesmen play the role of enthusiastic credit card pushers; while their prey, fellow college students may end up as credit card addicts. This is a clever strategy, hiring college students to seek out their circle of influence (friends) and then walk the corridors of their university to target other unsuspecting students.

Students are employed to target students because they come off as non-threatening, as being one of their own. Certainly a middle aged person would have less success marketing to young college students, than another student. The student salesmen are provided training by the card reps on how to approach students, giveaway free gifts, and most importantly, how to overcome objections.

Some of the objection handlers are, “Once you get the card, you don’t have to use it, you can cut it up,” “Once you get your dream job after graduating, you can easily payoff the card,” “If you start building your credit history now, you’ll have great credit right out of college,” “Can come in handy when you’re strapped for cash,” “Show your college pride by getting your very own college logo credit card,” and more.

In addition to college campuses, card issuers use high traffic strategic locations around campus to market to students. They put up their flee market tents in these areas, and start doling out trinkets in exchange for completed applications.
However you look at it this is exploitation of financially unsophisticated students for profit. Where is the corporate conscience, doesn’t corporate citizenship extend to putting an end to such abhorrent marketing practices?

Part 3: Coming Soon…

Ron Paul a Racist and Anti-Semite? Here's Why...Gaurav Bhola Makes a Case Against Ron Paul

Gaurav Bhola (GimmieTheScoop) — Thu, 13 Dec 2007 10:21:05 -0600

Ron Paul and his Presidential Election 2008 bid to become the Republican Presidential Candidate may have hit a speed bump. The Ron Paul 2008 campaign and Ron Paul may have some explaining to do to the American public. It is alleged that Ron Paul made racist and anti-Semitic statements in his eight-page newsletter The Ron Paul Political Report, founded in 1985. In the DailyKos, writer phenry gives great detailed insight into the matter. The Houston Chronicle first brought to public limelight Ron Paul’s musings in his The Ron Paul Political Report. So far, neither Ron Paul nor the Ron Paul 2008 campaign has made public any issues of his newsletter.

Here are some excerpts from the Houston Chronicle article 05/23/1996:

The Racist Ron Paul

Paul, writing in his independent political newsletter in 1992, reported about unspecified surveys of blacks."Opinion polls consistently show that only about 5 percent of blacks have sensible political opinions, i.e. support the free market, individual liberty and the end of welfare and affirmative action," Paul wrote.

Paul continued that politically sensible blacks are outnumbered ""as decent people." Citing reports that 85 percent of all black men in the District of Columbia are arrested, Paul wrote:
""Given the inefficiencies of what D.C. laughingly calls the `criminal justice system,' I think we can safely assume that 95 percent of the black males in that city are semi-criminal or entirely criminal," Paul said.

Paul also wrote that although ""we are constantly told that it is evil to be afraid of black men, it is hardly irrational. Black men commit murders, rapes, robberies, muggings and burglaries all out of proportion to their numbers."

The Anti-Semite Ron Paul

In later newsletters, Paul aimed criticism at the Israeli government's U.S. lobbying efforts...Stating that lobbying groups who seek special favors and handouts are evil, Paul wrote, ""By far the most powerful lobby in Washington of the bad sort is the Israeli government" and that the goal of the Zionist movement is to stifle criticism.

Ron Paul thus far, has defended the allegations by insinuating that he had no control over those particular issues' content and a ghostwriter wrote the particular articles for The Ron Paul Political Report. Hence, Ron Paul is not denying the published contents but the authorship and editorial control over his own newsletter, a newsletter that carried his name.

However, wouldn’t common sense and logic impede acceptance of his defense of the published words in his The Ron Paul Political Report.

Also, even if we suspend common sense and logic regarding his defense on the issue, wouldn’t we again be impeded by common sense and logic, in order to believe that a newsletter with seven thousand subscriptions didn’t reserve one subscription addressed to Ron Paul’s home. Moreover, is it plausible to believe that he would pay for mass publication of the newsletter, out of his pocket, without reviewing the content beforehand? Highly unlikely.

Logically, how can Ron Paul’s vanity prohibit him from reading any issue of The Ron Paul Political Report? Similarly, Ron Paul using his own funds to finance his newsletter, not being aware of how, what, and where of his newsletter seems implausible to me.

Additionally, outrageous and egregious is that when those particular issues of The Ron Paul Political Report were published and disseminated; he didn’t admonish the articles’ content nor denounce the racist and anti-Semitic statements. So by staying silent on the issues at the time of the newsletters’ publication, was he simply endorsing and condoning the racist and anti-Semitic contained within?

Furthermore, even if common sense and logic permits us to accept Ron Paul’s assertion that a ghostwriter wrote the articles in question; we would have to suspend reality by accepting that he doesn’t know who the ghostwriter is? In such a mom-n-pop small newsletter like The Ron Paul Political Report, how is it possible not to know who is writing for you, especially on your behalf. If he knows the person who wrote the articles that means Ron Paul at worse, associates with racists and Anti-Semites and at worst, is friends with such a person and shares such despicable views.

Now let’s look at a comparison of basic job duties of Ron Paul the publisher/editor/writer of The Ron Paul Political Report and Ron Paul the Congressman:

Publisher/Editor/Writer Ron Paul - The Ron Paul Political Report
•Responsibility includes general oversight of all aspects of newsletter publishing including writing, marketing, editorial review, layout review, financial management, etc
•Implement checks and balances for proper editorial review
•Reading in detail the entire content of the newsletter before and after publication
•Ability to comprehend what is written in the newsletter

Congressman Ron Paul
•Responsibility includes writing, sponsoring, and supporting legislation
•Read in detail the entire content of the legislation before sponsoring it
•Read in detail the entire content of another Congressman’s legislation before supporting it
•Ability to comprehend what is written in the legislation

So if we are to forgo common sense and logic as Americans and accept that Ron Paul’s duties as publisher and editor of The Ron Paul Political Report were remiss during publication of only those particular controversial newsletter editions, then it reflects poorly on his judgment and oversight abilities as publisher.

The basic duty of a Congressman as it relates to a publisher and editor is to review (meaning read) in detail legislation you sponsor and support. Herein, if he didn’t read nor review that vile content, how can we expect him to be a competent public servant as Congressman?

If Ron Paul was remiss in his duty as publisher in not reviewing his own newsletter, what makes you think he is not doing the same as Congressman by avoiding his job of critical reading and review of the people’s legislation?

Scary, thought isn’t it. Isn’t that how we classify incompetence?

So let’s assume that he is not fulfilling his basic duties as Congressman, what makes you think he is fulfilling his other duties as Congressman?

Hence, on what merit is Ron Paul seeking to be President of our great country when he may not be fulfilling even the most rudimentary duties as Congressman and in the past as Publisher/Editor of The Ron Paul Political Report.

The American public would agree that if he couldn’t manage with proper oversight the content of his own publication and have checks and balances in place to make sure vile articles such as attributed to the controversial issues of the mom-n-pop The Ron Paul Political Report could never be published; on what credible basis are Americans to believe that he can carry on the basic duties of a President in oversight of the US and managing checks and balances with the other two branches of government, Congress and Supreme Court.

Thus, Ron Paul’s defense completely falls apart under common sense and logical scrutiny. Where is the fundamental journalistic scrutiny from the “legitimate media?” Why are people contributing to this man? Why are some Americans supporting him? Who is voting for this man to be re-elected to an august body such as the Congress? Is he fit to sponsor and support legislation in Congress that affects all Americans with his belief system?

Lastly, Ron Paul is unwilling to accept responsibility for the contents of his newsletter that carried his name. A publisher is always responsible for the content of his publication. Ron Paul is attempting to escape accountability and responsibility as a publisher and blames someone else, a “ghostwriter” for the content; then on what basis can he ridicule George Bush, another “public servant” who doesn’t accept responsibility for his actions and blames others for his misdeeds. Can the country handle another incarnation of George Bush in Ron Paul?

The supporters of Ron Paul must not be carried away by the veneer of Ron Paul but examine the underpinnings of the man himself.

Would you really support him after reading Gaurav Bhola Makes a Case Against Ron Paul?

If you do, God help you.

Presidential Election and Election Coverage 2008: Ron Paul a Racist and Anti-Semite?

Who can Take On Microsoft Office and Microsoft Windows

Gaurav Bhola (GimmieTheScoop) — Wed, 28 Nov 2007 09:09:51 -0600

Who can Take On Microsoft Office and Microsoft Windows

Subtitle: Ubuntu, Open Office, IBM Symphony, Projity, and Google Applications Think the Time is Ripe to Dethrone Microsoft.

By GauravBhola, MSM

The Microsoft monopoly has been in full throttle for years, too many years. Many software came and went, many seemed promising like the beautiful Lotus Smart Suite. Many consumers and experts concur that this was the best office suite package ever. Alas, it wasn’t meant to last as MS Office was the dominant force on desktops, a strangle hold engendered by exclusive agreements with hardware desktop makers.

Now those same companies are lamenting their complicity in making Microsoft the monopoly it is today. If they hadn’t given the sole space on their desktops to Microsoft, then the current productive office suite landscape would be different.

Now IBM, amongst others are attempting to seek redemption by promoting Free of Charge Ubuntu, Symphony, and Sun Microsystems’s Open Office, etc. Please find information about each:

Ubuntu
What does the Ubuntu mean: “African word meaning 'Humanity to others', or 'I am what I am because of who we all are.”

Ubuntu is an operating system like Microsoft Windows that is can be placed on laptops, desktops and servers. It has all the applications you desire such as, word processor, spreadsheet, presentation, email, note-taking, photo editor, music and video.

Watch this great Microsoft Vista versus Ubuntu video.

Open Office
It is full personal productivity application suite that is a competitor of MS Office. It is a derivative of Sun Microsystems’s Star Office suite. Open Office includes a word processor, draw, spreadsheet, database, mathematical function creator, and a presentation tool.

IBM Symphony
You are not locked in the unending chain of Microsoft Office upgrades, paying ever exorbitant funds to upgrade buggy software that needs patches continually. Like Open Office, IBM Symphony is free to download and use. Also when upgrades are available, you can download them for free, no purchase is ever necessary. Symphony includes a word processor, spreadsheet, and a presentation.

Google Docs
Are internet based online productivity applications the wave of the future? Google thinks so. Google offers an internet based Microsoft Office alternative that has a word processor, spreadsheet, and a presentation suite. There are limitations with regards to file size, etc. You must first sign up for Google Mail, to access the office suite.

Projity
Want an alternative to Microsoft Project? Guess what, Projity is the open source answer called OpenProj. It does have the same learning curve as Microsoft Project but hey, it free. There is a paid robust version, Project-ON-Demand, but for most people the free version will suffice. OpenProj is perfect for small business owners managing group projects. As in case of other open source software, OpenProj is available for Linux, Mac or Windows.

Gimmie The Scoop.com

Presidential Election: Presidential Candidates 2008 - Election Coverage

Gaurav Bhola (GimmieTheScoop) — Mon, 19 Nov 2007 09:59:57 -0600

National Poll Results: Democratic Presidential Candidate & Republican Presidential Candidate

By GauravBhola, MSM

The presidential election is heating up as the presidential candidates reach out to voters in the 2008 election. As the election season of the national primary kicks off with the Iowa Primary, New Hampshire Primary, South Carolina Primary, Nevada Primary, and Florida Primary, for many the national presidential primary season has come too early in many states.

For example, in Florida the state legislature moved up the date for the state primary to January 28, in order to give Florida more of a role in choosing the presidential candidates for their respective parties, thus influencing election results.

The election is now left with the following candidates:

Democratic candidates: 2008 presidential election

Hillary Clinton Barack Obama

John Edwards Bill Richardson
Joe Biden Christopher Dodd

Dennis Kucinich Mike Gravel

Republican candidates: 2008 presidential election

Mitt Romney John McCain

Rudolph Giuliani Mike Huckabee

Duncan Hunter Tom Tancredo

Fred Thompson Ron Paul

The following are national presidential election polls for democratic presidential candidates and republican presidential candidates. Please note, that some or all may not be scientific.

Source: CNN

Source: Fox News

Source: Gallup

Source: Newsweek

Presidential Election: Presidential Candidates 2008 - Election Coverage

Gimmie The Scoop.com

Mortgage Rates Slide Lower, Somewhat

Gaurav Bhola (GimmieTheScoop) — Thu, 15 Nov 2007 13:38:27 -0600

by Gaurav Bhola, MSM

The never ending saga of increasing mortgage rates seems to have hit a wall; well, more like a small speed bump. After an 11 month high of 6.74 percent for 30-year mortgages, the rate lowered last week to an average of 6.69 percent, as reported by Freddie Mac. It seems that investors have awakened to the fact that the direct effects on the economy from the unending housing slum could last longer.

The pressure in the housing arena keeps building. The construction of new homes and apartments was down by 2.1 percent. The National Association of Home Builders said that the index that measures builder sentiment fell in June to its lowest point in 16 years.

There doesn’t seem to be light at the end of the tunnel for the builders, the housing market still hasn’t bottomed out. Many parts of the country, where the housing market was on steroids, seem to be the hardest hit, leaving a detrimental effect on these markets, including the Nevada mortgage, California mortgage, and Florida mortgage markets. Adding to the insecurity is mounting mortgage foreclosures, which keep adding to unsold inventory of new houses. Even slashing of prices and other incentives by builders hasn’t made a dent in new home sales.

Also, the increasing interest rates in the past few months, increasing foreclosures, and tightening of lending practices has piled onto more woes to the weakened housing market. The buyers are still on the sidelines waiting for the prices to lower further. The growth rate for the first quarter was 0.6, the weakest growth increase in the last four years.

One indication of future home building is the number of buildings permits issued, which rose 3 percent from April. The single family homes performed less than multi-family units. This can be borne out by the fact that the demand for rental housing has gone up while sale of homes has gone down.

The government data for May shows that construction of apartments has risen by 3.1 percent while single family unit construction has decreased by 3.4 percent. The housing market being an important economic leading indicator could portend of an ominous downward economic situation in the near future.

Hopefully, the lower interest rates of last week will continue and may provide some impetus to increase home sales. The 15-year fixed rate fell to 6.37 percent last week, down 0.06 percent from the week before. The 5 year adjustable rate mortgage fell to 6.31 percent last week, down 0.06 from the week before.

The home sales will continue to decline in the coming months, adding burden to the weak housing market. The builders are being hurt by tighter home loan lending standards, especially in the subprime mortgage lending arena. The ripple effect is being felt throughout the economy from the investors to you and me. The experts predict that it will be more than a year before the housing market finds its bottom hopefully, it doesn’t lead to the national economy finding its rock bottom.

Mortgage RatesSlide Lower, Somewhat.

Gimmie The Scoop.com