Credit Scoring

Good Credit Translates into Lower Rates for You the Consumer

In the 1960s, Fair Isaac Corporation started working on a system lenders could use to evaluate the likelihood of receiving repayment on loans. Prior to that, it was really a matter of trusting an individual to be a "man of his word," so to speak. Fair Isaac sought to take human error out of the equation with a reliable system that could determine whether or not consumers were truly worthy of credit, and thus FICO was born. This evolved to become the standard for lenders by the 1980s.

Credit scoring has an enormous impact on a borrower's ability to purchase a home. It can mean the difference between getting a good interest rate and the home of their dreams, or whether they even qualify at all. For this reason, it is important for borrowers to understand the credit scoring process, and to know what their credit score is when they look to obtain mortgage financing.

What the credit scoring model seeks to quantify is how likely the consumer is to pay off their debt without being more than 90 days late on a payment at any time in the future. Credit scores can range between a low score of 350 and a high of 850. The higher the client's score is, the less likely they are to default on their loan. Only a rare one out of approximately 1300 people in the United States have a credit score of above 800. These are the slam-dunk clients that walk away with the best interest rates. On the other hand, one out of eight prospective home buyers are faced with the possibility that they may not qualify for the loan they want because they have a lower score between 500 and 600. Here is a sample chart that illustrates how an underwriter interprets the score in terms of risk, and how the interest rate is affected.

On July 31st, the 8th largest wholesale lender (per Q1'07 report), American Home Mortgage/American Brokers Conduit, announced that it could not provide funding on loans sold to them by their brokers and correspondents across the nation. The 2 day impact alone is nearly $1 billion in home loans that will not be consummated. This is a historical event.

Top Mortgage Company will do everything in our power to assist our customers without compromising the integrity of our underwriting and operations groups. If you do have loans that are now in what we would classify as an "emergency situation" due to this failure, please call me now! We are here and are ready to do what we can to help. If you have not been effected by this event, then consider yourself lucky.

Whether you have been effected or not, this just once again drives home the point and one of the major advantages of doing business with a sound and stable company like Top Mortgage Company. We are literally a safe harbor for your business. We are a licensed mortgage company with access to hundreds of premium sources for funding with competitive low rates and low cost fees. We are waiting for your call to help you close fast!

Please call my office at 360-733-9898 or email me at info@topmortgage.com. Again we will do everything we can to assist borrowers and Realtors to get through this application process as swiftly as possible so that we can protect you against any market moves. Feel free to also contact us online at http://www.topmortgage.com/ or http://www.mytopmortgage.com/.

I thank you in advance and look forward to servicing all your financial needs.

Sincerely,

Siha K. Top

President

 

 

 

Wal Mart "Superstores" are having a tough time getting approval to build and open for business in my city and the  surrounding counties.  The main reason for their disapproval here is how enormous the Superstores will be. They also argue the added traffic this will bring, the possible closure of other retail & servces selling the same products, and if Wal Mart were to ever close their doors then will the building sit empty for a long period of time or what could it be used for?  

Curbing the traffic around all growing areas is a joint effort and is the responsibility of community leaders and individuals to do their part.  Just like protecting the environment with building "green" or driving hybrid cars. The competition aspect that this will close those business that can not compete, well this is nothing new to business economics it is the base for entrepreneurial and capitalism.  Lastly, if Wal Mart were to close their doors the building could be retrofitted for a school, office space, boys & girls club, government office, manufacturing plant, athletics club, mini mall, entertainment venue, convention center, the list can go on and on for what a valueable structure this could be if not a Wal Mart.

The community leaders here seem to want to limit the size to no more than 35,000 sqft buildings should be built. Even though the public has voted and elected to approve Wal Mart's application.  The Mom & Pop stores and competing business are releaved that for now Goliath will not open their doors to compete today.  The losses of services and savings to consumers seems almost unfare because others just like them did get a Superstore in their neighborhood.  How about the loss of tax revenue to the city or jobs here and abroad that a new Superstore would create.  Competition for business is what this country was built on and is about.  If Wal Mart can help more then it can hurt then should it not be supported and allowed to conduct business?

I find it hard to believe that very few Realtors, Mortgage Broker, or for that sake any business not using the power of FREE advertising on WWW.CRAIGSLIST.COM.   Craigslist.com is easy to use, it's getting more & more popular with all types of consumers, it can be targeted for your region and customer of choice for most anything you want to promote or sell, I find it can be addictive like blogging, it's still working when your not 24/7, reliable as long as internet is connected, there's no shipping costs to you if it's worth your drive to go get it, and did I say FREE. 

The old adage of, "you get what you pay for" doesn't seem to apply here.  I find that you get way more then you bargained for. 

For example I have helped many Realtors & FSBOs with Example Payment & Program Options flier for potential buyers.  I then post my fliers at craigslist.com with the attached link to the FSBO's or Realtor's listing website and WAH-LA!  The property has exposure and our business has exposure too.  Our target market is everyone worldwide that may want to see what's on the market and hopefully will purchase in that area.

I have also posted my properties to rent and have had them filled this way the last few year with qualified renters.  I have had past customers tell me they saw my picture there which is another excellent way to get in front of them in a not so in your face advertising way.

Another example is I was looking for an extra ipod docking station for my office, home, and one to leave at my parents.  Like any consumer I priced them out on line with the regular big chain electronics stores as well as mail order website.  This was about the end of January.  I just had a hunch. Christmas was just last month & many teenagers had the same mind set as my 16 year old nephew.  He had gotten an xbox 360 and already he wasn't using it he would rather sell it and use the money for his car, typical 16 year older.  So I checked out craigslist.com and I was dead on there were at least 10 listings in all the areas of all types of docking stations I found some were still unwrapped & in their boxes. I ended up with 3 for the price of 1 retail & 2 of the stations were better then what I was originally looking at. 

FREE is a great price when your R.O.I. is in the 1000's of percent.  I look forward to reading your ideas on how you use free tools of the trade in your business marketing.

Okay you real estate Gurus...  I need some help on this one.  I have a townhouse in Boynton Beach, Fl & I want to trade it for another property some where west of the Rockies.  How do I go about doing this?

I have asked a few Realtors with National Agencies and also some that claim to be relocation specialists and non of them had any ideas.  So I told them I would blog our Active Rain members and report back to them.

It would be nice to get any tips on taxes, or posting websites, escrow, state laws, or anything related.

Portland Oregon today is not the same as I knew it in 1975.  I had left the area in 1987 but I would return 6-8 times per year.  Year after year I kept seeing the changes and progress of the city.  Now it is 2007 and oh my, what a wonderful city Portland has become!  It is one of the most  beautiful and livable metropolitan cities I know of.  The natural sights of the Willamette River, the rolling-hills on the west side, and Mt Hood as you look east will keep your soul at peace.  The man made wonders of the seven bridges, the rose garden on the hill, and the historical arcitecture.  Some how it all blends in seamlessly with the new contemporary style condominiums it is literally 360 degrees of beauty. 

Also what makes a beautiful city is how livable it is.  If you love to jog, bike, or go on power walks this is a city that makes you want to do more of it.  If you don't want to deal with driving in city traffic or on your way to the airport, the MAX lite-rail is an excellent option. Entertainment, shopping, and restaurants downtown are in many different flavors to choose from and satisfy your desires.  The people are so friendly.  I can smile at passer biers and actually have a conversation with a total stranger without feeling like I must be from outer space.  The business atmosphere is welcoming & positive for all kinds of start up and support for the ones that have been apart of its rich history.

I couldn't resist investing in the Pearl District and I have to tell you I love it!

Now that I think about it maybe, I was too young to appreciate all that Portland was in 1975.  Well, it has been over 30 years so I'm going to stick to my story as to what a beautiful city Portland has become. I'd love to to hear your thoughts for favorite spots, hangout, coffee shop, martini bar, jazz club, restaurant, park, shows, events, clubs, activities, etc., etc. in Portland or surrounding areas.

 

 

 

 

Becoming Successful in business is still hard work. If someone tells you differently look deep into what they claim that they are successful in and decide for yourself is it true or is it just hot air?  There are the basics of being successful at anything you do, kind of like the 10 commandments for success.  We have all heard of "practice makes perfect" or how about "follow up and follow through" and how about "service is key" and all the rest of the quotes, systems, marketing, and organization skills the trainers and seminars throw at you over and over again.  It's all good information and like we all have heard it said before, "too much of a good thing is sometimes NOT so good".

So I suggest simplifying your success.  How you ask?  Surround yourself with Professionals, network with Professionals, and always be seeking out new Professionals in all aspects of your business and personal life.  For example my CPA is not just a CPA he is also a certified Judge and his background is Corporate Taxes.  So I know not only can he handle the preparation of my personal tax returns every year but also my business now and in the future.  My Dentist like any other Dentist can take care of routine cleanings but he is also certified to do cosmetic teeth reconstruction or even perform a root canal.  Not that I've ever used him for his extra expertise, but it's nice to know he has the expertise to do so.  I could keep going with all the professionals in my life that are apart of my network and will continue to add to my  success but I think you get my point.

As for my company Top Mortgage Company, from the window cleaner to the Chief Financial Officer they are professionals at what they do.  We have continued education for all staff member at-least quarterly from the receptionist to myself as the Broker.  We invest in ourselves to better ourselves personally and professionally at the same time we can give added value to our customers we serve.  When I am helping a client referred by our Realtors or that is new to our office they are not just getting a standard Mortgage Broker.  They are getting my 18 years of experience in financing, home ownership, investing, development, construction, and combined expertise of our entire staffing.  All of this so that when we tell you "experience & service" we can back it with our knowledge and the expertise in combination with the Professionals in our network.

I believe success in business is a never ending puzzle that evolves with other successful Professionals.  If everyone does what they are suppose to then they represent only one piece of the bigger puzzle.  It is a beautiful thing when it all comes together.  Then you finish and start the next puzzle all over again. 

I wish you all much wealth, health, & prosperity. If we can be apart of your success it would mean the world to us. 

 

What do you think about owning or investing in Condominiums?  Are they being over built in the metropolitan cities?  Is Suburbia ready for Mid to High rises across the street from the community parks? Are some truly worth $1000 a sq-ft?  What do you think is the future of for the Condo market? I have so many questions that I would like to hear from you the owners or investors and as professionals in the real estate industry advise on this topic.

Investing in Condominium has changed for me from when I 1st bought a Pre-construction in 2002 in Portland OR and then sold it in less then 90 days.  Then it was Vancouver BC from there Miami, Seattle, & then back to Portland.  Since 2002 to now the condo pre-construction deals were and still are very profitable.  But will the demand for condo ownership still be here & in the years to come? I would like to continue to invest in them but I hear from others that it's saturated in areas like SanDiego where you can now purchase a new 1 bedroom a block away from the beach today at $250,000 sold 2 years ago at $450,000.  Or Boca Raton where there's still siting vacant and have been on the Market for more then 360 days.  But yet Seattle and Portland condos are still selling their pre-construction.  So where is it HOT today?

 

 

For those of you lucky enough to be in a steady real estate sales market you better not get too comfortable. The inventory of homes for sale is continually increasing daily nationwide.  The Sub-prime foreclosure and tightening of guidelines for loans approved are not helping to decrease the inventory nor the present or future borrowers in this market.  As a result Developers and Realtors are working extra hard to move their inventory to any willing and qualified buyer.  The Media is also not helping with continuous reports of high foreclosures and down markets. They should also report on the where  it is a healthier market and what types of homes are selling best today.  I use a simple gauge to determine what is the current and next 6-12 month forecast of real estate demand in any local area and you can too. Ask any Real Estate Company how many Developers or Contractors have come through your doors in search of property to build on? Then ask the same to a larger and smaller local Developer or Contractor and you shall have your answer. We are just getting into the spring buying season for 07 and it is a buyers market.  I say GREAT to that as long as there's any market it's good for the real-estate market.