I just wanted to take a second to thank everyone for the time they spend in formulating educated blogs for all of us "newbies" to learn from.  While I thoroughly enjoy many of the "filler" blogs that are posted on Active Rain...it's nice to actually walk away from the computer with more than you sat down at it with.

Keep up the thoughtful posts people...we'll get through these tough times together. 

In these difficult times, we've found it very useful to partner up with Rent-to-Own companies in trying to find future clients.  Creativity is huge in solving problems as we all know...and by creating a niche we have sustained our flow of loans while supplementing our income with a kick-back from our favorite credit restoration company.  These customers who currently suffer from unresolved credit issues have found great satisfaction in the service provided by our partner, whereas a few years ago they would have been completely passed by since they do not qualify for a loan today.  I see a lot of good people everyday who fully appreciate the opportunity to rebuild their credit while living in the home that they will one day own...it's nice that there is at least one element of today's less-than-perfect market that helps some people achieve their dreams.

For more information on our Rent-to-Own programs...feel free to ask.  There are few (if any) we cannot find a viable solution for...if not today...in the near future.  We have 42 homes currently available for Rent-to-Own and are usually willing to explore new purchases if the interested party qualifies for the program, and it is a sound Real Estate investment to begin with.

      Is it a better idea to accept the financing that you currently qualify for, or enter into a credit restoration program and wait a few months for your credit score to improve to then get a substantially better interest rate?  How much lower of an interest can be achieved with the average credit restoration process?  What are the qualifications to being a candidate for credit restoration?

      The answer is fairly simple....yes...in many people's situation it is better to correct any inaccuracies on your credit report before entering into a long-term financing deal.  Just exactly how much a person stands to benefit from credit restoration relies heavily on how many inaccuracies exist on their credit report.  The average restoration process lasts from 2-6 months and can improve your credit score 50-100 points, a somewhat standard amount of time to find the home you TRULY want (and make all of the relative adjustments involved in buying a home).  A typical fee for this service ranges from $300-$500...and as in most cases...you get what you pay for.  Some companies have pre-established relationships with creditors that facilitate these corrections in a far more efficient manner than those who simply pester the creditors with letter after ineffective letter of dispute.  And, don't be fooled into accepting terms of a down payment, followed by monthly installments...anyone who knows the business (as far as credit restoration) can look at your profile and tell you EXACTLY what can be accomplished...and how long it will take.  The open ended deal that lasts for a year or more is a tricky way of getting a few extra hundred dollars out of you.  Find a credible company....let them review your situation...pay the $500 or so...and start looking for the home you've always wanted.

 Your humble finance slave.

It's obvious that some of us (yes us...not you/them/they) aren't always accurate in what we think we know when posting or giving advice on Active Rain.  However, let's keep it clean people...there's no need to take shots at one another.

If an individual is mistaken in what she or he claims...simply state that in a professional manner...the vast majority of us use this resource to deepen our knowledge in our respective fields and build a foundation for success.  It's not a competition for who's the smartest.

Your humble finance slave.

Dear Mr/Mrs. Rate Shopper,

      I understand that you've been quoted at a lower interest rate than the number that I have submitted to you...however, have you considered the bigger picture?  It's my belief that the broker who has lead you to believe that you are getting "the best deal available" doesn't have your long term interests in mind. 

      Don't buy into one dimensional deals people...there are a lot of elements to consider (beyond interest rate) when shopping for a loan.  Don't be satisfied with "the lowest interest rate"...use the opportunity of buying a home to poise yourself for a better financial future...not just a cheaper monthly payment.

 

Your humble servant.

September 18th...is the Fed going to lower the rates?

In an effort to avoid a recession...the preliminary reports suggest that the Fed will lower the interest rates later this month.  Is this too little - too late? I don't think so.  My sentiments on Mr. Bernanke are high, as a matter of fact, I think he's the most qualified Chairman in the last 15 years or so.  It's about time that we have an individual who does more acting, and less reacting to the recent fluctuations of our (apparently volitile) economy.  Considering the state of our real estate market, I feel as though he has done quite well in stabilizing one of the most complex financial pictures in the history of civilization.

But, the proof is in the perverbial pudding...we will soon see (conclusively) whether or not he has a sound perspective on our country's state of fiscal affairs.

To most borrowers, there is only one way to judge the quality of a loan...that's interest rate.  To those who have taken the time to study the effects of hasty and uninformed decision making, there are a few more elements to consider when shopping for financing.  What is your 10 year outlook?  How about your 30 year outlook?  Do you have children that will need college tuition someday?  Are you prepared for the emergencies that life offers so often?  At Global Housing Services we closely examine every fascet of your financial situation to form a more comprehensive plan that takes into consideration your goals, not just how to save $50 on this month's mortgage payment.  For example: If you could borrow additional money (beyond what you need to pay your mortgage's premium) at 6.5% and invest it for a return of 9.75%....wouldn't you be making money?  Over the course of a 15 year or even 30 year mortgage, the results are undeniable...paying off a low interest mortgage way ahead of schedule is not as smart as it sounds initially.  Use your credit and let the bank's money work for you.

Just about anywhere is a good place to buy a home right now.  Prices are low, but as we all know...they will soon be on their way back up.  My personal opinion on the best places to purchase a home (in Minnesota) are 5 miles West (West of HWY 494) and 5 miles South (South of HWY 494) of the Twin Cities.  There has been a steady migration to these areas over the years, and in reaction to that migration there has been additional money put into the roadways, schools, hospitals, and many other ammenities that add to our quality of life... making them reliable and safe investments that will surely hold their value in the future. 

The market is only "bad" if you are trying to sell your home and you have no wiggle room (no equity to work with).  For those who are buying, this is an excellent time to get the home of your dreams for (approximately)    .85 cents on the dollar.  Even if you are selling your home, the equity you may need to sacrifice to get out of your current living situation will be regained when you buy your next home...basically a wash-out or a break-even exchange in most cases.

Don't let imperfections in your credit history prevent you from buying the home you've always wanted.  We have over 1200 different loan programs available to help qualify good people (such as yourself) for smart and responsible loans...regardless of past credit history.  It's no secret that some of us run into difficult times (financially) on occasion...don't feel as though you are being judged on a few isolated incidences...together we can prove your responsibilty as a borrower.