FREE CREDIT REPORT INFO

CREDIT MYTHS

There are so many myths out here as it relates to credit, credit reporting, and credit score. We have done a little research and have discovered the main credit report myths and want to share this information with you free of charge. The information provided below has been gathered from government agency reports to include Freddie mac and Fannie Mae. We hope this information is helpful to you. Please see the myths below:

Myth: If you catch up on your late payments, it wont show up on your credit report

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  Each time payments are paid late, there is a risk that the credit company will report on your credit late. Even if you catch up, it will still show that you were late and that could hurt your score. Call your creditors and humbly ask if they will remove the late fee as a courtesy. It may or may not work, but at least you would have tried.

Myth: If you pay a small amount by the due date, it would be counted as full payment

• All minimum payments must be paid by the due date. If it is paid short of the minimum amount due, then the creditor could report to the credit reporting agency, the fact that you are late. Unfortunately, the creditors will not give you an A for effort. Remember to pay your bills on time.

Myth: If you have a good reason for not paying, it would be overlooked

• Contact your creditors immediately if you experience a crisis. If you loose your job or become ill or experience a financial crisis, it is always recommended that you contact your creditors and see if something could be worked out. NEVER assume that is would be overlooked.

Myth: When paid, the bad debt will go away

• The history on your credit report provides all of your credit information. Bad debts, charge offs, late payments, and any other collections item, stays  on your credit for a period of 7 years.

Myth: You are responsible for debts on joint accounts or co-signed accounts if they are not your purchases

• Anytime you are a joint acct owner or co-signer, regardless of whether you have paid your fare share, both parties can be held completely responsible for the payment. The same is true for divorces.

Myth: You are not allowed to see your credit report

• You have the right to see what is in your credit report. A copy of your credit report may be free or may cost you a small amount of money.

Myth: Once you have credit problems, your score will not improve for seven years

• You can improve your credit score over a shorter period of time because recent entries to your credit report may carry more weight. Make sure you continue to work on your credit issues and don't ever give up!

The moment we found this information, we felt it would be beneficial to you. Thanks for allowing us to share with you. Call a member of our team now and we can speak with you over the phone if you have any additional questions.

Mortgages: Fixed Rates, ARM...

TYPES OR MORTGAGES

There are so many different types of mortgages that a person could get confused. The information below should help keep you on the right track and help to make sure that you are informed. It is important to be informed as it relates to your mortgage products. Lenders are available and can help you to understand mortgages better. However, as agents, we want to make sure that we are able to provide helpful information to all of our clients. Please see the different types of mortgages below. These are the major ones to be on the look out for. Remember, in all of your wisdom, make sure you have understanding!

• Fixed Rate Mortgages - Loans were the interest rates never change offering the same principle and interest payments  monthly. This does not include Taxes, Insurance, PMI, or any other state and local fees associated with your loan.
• Adjustable Rate Mortgages - usually starts with a lower interest rate and adjust periodically based on an index that reflects changing market interest rates.
• Balloon/ Reset Mortgages - mortgages reset at the end of 5 or 7 years which at the end of that time you must sell your house or get a new loan called a refi.
• Graduated Payment Mortgages - This mortgage starts out with lower monthly payments, then over a period of years, the payments go up slowly
• Interest Only Mortgages - Monthly interest only loans require that the borrow pay the balance for the first 5 or 10 years. Interest only periods do end, please be sure to ask your lender about the terms and conditions
• Option ARMs - Flex monthly payments that the borrowers choose how much to pay from one month to the next based on a few choices.

Always shop around for the best mortgage rates, terms and conditions. Don't forget to get your good faith estimate. You should get it shortly after you have submitted an application...

We hope this information helps. If you want to discuss further, please do not hesitate to contact us and we will be happy to answer any question you may have.