VA home loans FHA Loans ... News Updates and Commentary

Well, the unemployment figures came out… yes they are ugly. Surprisingly the mortgage rates haven't changed a bit this morning. TheUnemployment figures came out with a staggering 0.5% jump in May, the largest monthly increase in some 20 yrs. Which shows that employers are nervous. The stock market reacted heavily, but the bond market barely rose, which in turn should drop the rates maybe .125 this afternoon. But it is a Lovely Friday Morning across the country, looks like moderate temperatures, with a little rain here and there. Historically the rates are not going down on Friday, so no real surprises, but for those of you with VA or FHA home loans who are floating their lock, you might want to check rates on Monday, but maybe consider Tuesday to get the Mortgage Interest Rate you are looking for.

On a separate note, this week has been tumultuous at www.veteranslendingcenter.com the switch to going paperless has not been without its challenges, but overall I think we may have saved at least two trees so far! Kudos to all involved, It seems everyone is happy to be able to log in and check status or deliver secure documents 24/7 . One final accolade to the IT team and our regional experts. Our clients with questions regarding the VA Home Loan Requirements, and regional home loan rates have been busy using the desktop chat feature to ask questions and elicit an immediate response. The word is getting out and it seems to be becoming a valuable tool. Thanks to all our experts who are making the chat feature a reality, and to the IT team keeping it running.

Ok, I need to get back to work so I can knock off early and see about having some fun this afternoon. Please leave your comments or questions and have a great weekend

Jim

Yesterday, we discussed a little how to read your credit report. You have your highlighter ready and you've made copies of your credit report. If you've been studying your credit report, you'll notice that each report is different. You will also notice the codes in the leftmost column

Experian is pretty straightforward, anything marked with an * is a negative credit indicator.

Trans Union is a little more difficult, but still fairly comprehensive. The easiest way to look at it is with the codes. Anything higher than I1, M1 or R1 (such as I2 or R9) is a negative credit indicator.

Equifax is similar to Trans Union Anything higher than I1, M1 or R1 (such as I2 or R9) is a negative credit indicator.

1. any item rated higher than I1, M1, or R1 (such as R2 or I9).
2. any item proceeded by a ">>>>" icon.
3. any item listed as repossession, foreclosure, profit and loss write-off charge-off, paid profit and loss write-off, paid charge off, settled, settled for less than full balance, or included in bankruptcy.
4. any collection amount, whether paid or not.
5. any court account, including a lien, judgment, bankruptcy chapters 11, 7, or 13, divorce, satisfied lien, or satisfied judgment.
6. any item showing one or more thirty, sixty, or ninety day late payments in the column to the far right.
7. any inquiry.

Those I2 and R9 codes - what do they mean?

R- Revolving (usually a credit card)

I - installment (like home or auto loan)

R1 or I1 = pays as agreed never late

R2 or I2 = 30 days late

R3 or I3 = 60 days late

R4 or I4 = 90 days late

R5 or I5 = 120 days late

R7 or I7 = making regular payments under wage earner plan

R8 or I8 = repossession

R9 or I9 = charge off

Generic Codes

What it means:

O = Open (entire amount due each month i.e. AMEX)
R = Revolving (payment amount variable i.e. VISA)
I = Installment (fixed number of payments i.e. Auto loans)

0 = Approved, no rating
1 = Paid as agreed
2 = 30+ days late
3 = 60+ days late
4 = 90+ days late
5 = 120+ days late or collection
7 = Making regular payments under wage earner or similar plan
8 = Repossession
9 = Charged off to bad debt

J = Joint
I = Individual
U = Undesignated
A = Authorized User
T = Terminated
M = Maker
C = Co-Maker/Co-Signer
B = On behalf of another person
S = Shared

So let's get out our markers and highlight any negative items on our credit reports. Tomorrow, we'll discuss "what to do with those negative Items" and how to challenge the bureaus.

 

Earlier, we discussed a little about your credit report, the Fair Credit Reporting Act, and the Federal Trade Commission. Go Here To review Today, we are going to begin the step of how to analyze your credit report.

The first thing to do is get a copy of your credit report from each of the three major CRAs: Equifax, http://www.equifax.com; Experian, http://www.experian.com; and TransUnion, http://www.tuc.com. There are many ways to receive a new report. The Law says you are entitled to received one free report each year. NOTE: The Credit Bureaus are not required to give out your Score for free, just your report. give me a call, we'll discuss some alternatives.

When you first receive your Trans Union and Equifax credit reports, you will be totally lost. The information is coded in a way that is not immediately readable by the average consumer. Each credit report should arrive with a key that interprets the codes and indicators on the credit report. Sit down with the credit report and the key and study it until you understand what each number and code means.

Wait!... Don't write on your original credit report -- yet. Make all of your notes on a copy of the report. You may be sending your original report with your dispute letter, so you should make at least two copies of each new report. The original goes with the dispute, one copy is for notes, and the other copy is what you will send in to the credit agency.

Gather a yellow and orange highlighter pen. Whenever you identify a negative listing, mark the listing in yellow on your scratch copy of the credit report.

Very often, it is difficult to tell if an item on the credit report is negative or positive. The following table will help you identify every negative listing on your credit reports.

Ok, so now you are ready. Tomorrow we will discuss What all those codes mean. Take the time to study your report, it will make you satisfied that you know exactly what you are looking at, and that knowledge will help you as you go through this process. Repairing your credit is not an overnight fix. It requires some diligence and patience. Good credit is sexy, it just makes you feel good, and is definitely worth the two hours per month you will put into it during the repair process.

Feel Free to comment and if you'd like to jump ahead, go to www.veteranslendingcenter.com/disputingcreditreports

It is time to start working on our credit. As we discussed the other day, Credit Standards are tightening across the board. The first to tighten were the exotic programs, now that tightening is making its way to FHA and VA Mortgages, and the FHA and VA home loan requirements.

Your credit report is a record of your credit activities. It lists all of your credit card accounts and loans, the balances as well as your payment history. It is this Payment History rather than your score that most FHA and VA mortgage lenders look at when applying for a home loan. Your credit report also shows if any action has been taken against you because of unpaid bills such as a lawsuit or bankruptcy filing. Since businesses use this information to evaluate your applications for credit, insurance and employment, it’s important that the information in your report is complete and accurate, especially if you plan to make a big purchase like a home mortgage.

The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission (FTC), is designed to promote accuracy and ensure the privacy of the information used in consumer reports. Under the FCRA, both the credit reporting agency (CRA) and the organization that provided the information to the CRA (usually the credit card company) must correct any errors or incomplete information in your report. Next week we'll begin analyzing the report and perhaps discuss bad credit home loans. Read More...

On to the business of the day, "The beige book" came out reporting that economic conditions remained "generally weak". Seven of the 12 districts describe conditions as "sluggish" or "soft, compared with nine on the last report. This appears to be good news showing the economy is "stable" or "little changed". The good news is This should indicate that rates for the time being will continue to remain low. The bad news is with the better than expected economic news, the markets rallied pushing the bond market down and increasing today's rates. Tomorrow the Consumer price index is coming out. With larger than expected unemployment filings, the fear is that the bond market may see that inflation is a threat, which would cause a large sell off which would drive the price of the bonds down, which in turn would cause interest rates to rise. Read More ...

Keep in touch with your loan officer this week

There has been more industry buzz regarding FHA and VA Mortgages. This whole economic adjustment has been about "re-aligning" back to "normal". We received notification that some of our lenders are no longer accepting credit scores under 600. on a tri-merge both applicants lowest score cannot be less than 600. this is not really shocking, the industry has been moving in this direction for several months, but now they are trying to include VA and FHA first time home buyers. So far we have not been affected, regardless of your credit score, fill out a short app and we can still get you a home. But just in case the scenario gets worse, in the next few days, I would like to talk about how to improve your credit and credit cores, how they relate to your VA or FHA mortgage. Regardless of what your score is, chances are there is room for improvement and it just feels good to watch it rise.

A little about rates today, Last Friday, James Bullard, St. Louis Fed. President said, "Given the current economic environment and the outlook for the next 18 months, my view is that policy is appropriately calibrated at this time…." He was speaking at the Wisconsin school of business, and referencing Federal Reserve rate cuts. The Federal Reserve rate cuts were pre-emptive and designed to stimulate the economy, His opinion is to be patient, let the rate cuts do their job. Today's rates turned the bond market down sharply as investors moved away from inflation sensitive investments. This was not unexpected, and if I've been talking with you regarding rates, I most likely told you to wait and see what happens Tuesday afternoon. Well, it turns out "Wednesday will be the day the Beige Book gets released, and if it is showing slow economic activity, the bond market may thrive and rates should drop shortly afterward"… read more

Lets keep our fingers crossed Tuesday and Wednesday look good!

Send in your comments, and let's have a fun week!

Thanks Jim

Yesterday was an incredible day. I'm accustomed to a busy day, Normally Mondays are smooth, and Friday's are rough. Tuesday Wednesday and Thursday get busy, for a few hours, but yesterday everything seemed to go backward from 7am until well into the afternoon. I noticed as the morning wore on, "I have all this to do, and not only is" that" not being accomplished, but I'm dealing with "this" instead of moving forward.

We all have days like that, and once in a while you just have step back and have a look at them. I was reading an article by Julie Escobar yesterday "Six Secrets to Keeping Your Balance" in the article she talked about a survey conducted by Harvard Business School which reported the four key elements for success in life…. What would be your four?

Their survey found Experience, Knowledge, and Intelligence, combined, comprised 7% of the elements for success…..Attitude was the number one element for success 93%.

I came across her article in the morning, and did not have a chance to read it. By 3pm all the fires were put out so I decided to take a break and get back to it… how did she know what sort of day I was going to have?

So, let's work hard this morning and take some time to play. This is an amazing industry with all sorts of twists and turns keeping it fresh and challenging. All of the recent changes have caused us to adjust our systems, but the reality is that these adjustments were just "shaking the rug". We've always had to stay within the guidelines, the guidelines have just tightened up a bit. With the housing prices down and the rates still low, it is a better time than ever to have fun and enjoy your relationships along the way.

There has been a lot of talk for this week, but so far not much action. The close of business Friday left rates flat, while a good economic indicator was expected to be released today, worries over inflation were still looming. Many expected the good economic indicators would push rates up this morning, but with several reports due out this week the only consistent prediction is another week of volatility.

Rates opened this morning with good reports in manufacturing and spending, which drove the bond prices down slightly, increasing rates approximately .125 discount due to weakness last Friday. Next Friday look for May's employment figures. http://www.veteranslendingcenter.com/DailyRateLockAdvisory

So much for rates, the next question what is the market going to do? Last week a report came out from the NAR indicating that with the subprime mess out of the way, even though foreclosures are still much higher than expected, we are still feeling the backlash, housing prices are going to steady and strengthen in the coming months. Having said that, there are many reasons right now is the perfect time to purchase, and there are very few reasons not to. If you would like more information on VA or FHA loans, please visit http://www.veteranslendingcenter.com/VALoans or feel free to call anytime.

Enjoy a productive week, and as always please comment with your thought and feelings.

This is the first page and installment of what is destined to become a daily blog. The goal is to offer timely news , and commentary in line with the Real Estate and Mortgage Industry. Today we need to "Plug the Website" as an introduction and accolade to those who have contributed and worked so hard to make it happen. While our primary focus is on FHA and VA home loans, Government home loan programs, Challenged Credit and No Down Payment Systems . The result is lifetime clients, and a referral system that can't be matched….Whether you are a Veteran in the Real Estate Market, or a first time home buyer. If you've previously used your VA Benefits, or Just back from Iraq, ready to settle down. Maybe you are just curious what are the FHA or VA Home loan Requirements, or wondering how to get your VA Home loan Certificate? Or your FHA or VA Certificate of Eligibility? Maybe you are just curious of mortgage interest rates, or perhaps you have bad credit, but are tired of paying somebody else's mortgage. Whatever your situation, we have a solution. We won't tell you that you don't, qualify, we'll share with you how to get qualified.

Our website www.veteranslendingcenter.com is set up with all the calculators and up to date mortgage rates and information including a Rent VS. Buy Calculator to help you decide if purchasing is the right thing for you.

Your own "Customer Login" page gives you the greatest security for transferring documents, as well as the freedom to check rates and review status 24/7.

You can fill out a short application just to see of you qualify, or if you are ready to be pre-approved, feel free to use the long application and receive your approval in minutes.

The Daily Rate Lock Advisory gives you up to date minute by minute snapshot of what the market is doing and whether it is a good time to lock, or is it better to wait. While there is no crystal ball, ultimately it is in your best interest to lock your rate when it feels right to you!

The Home Price Index is an incredibly valuable tool that will give you the housing trends in your area and a snapshot of what your present home is worth.

Combine our website with most powerful and secure technology available, (we'll talk about being paperless, and its effect on the environment later) Our incredible customer service, Our daily status updates, the ability to broker if necessary, and an amazing customer satisfaction rating, (which of course brings all your friends and family to the experience) and you will quickly discover you've come to the right place.

Thanks for enjoying the plug, I would like to encourage each of you to offer a "shout out" to all those who've contributed and helped this project come together.

Please comment and share your thoughts and feelings. Have an Awesome Day, and we'll talk with you tomorrow,

Thanks,

Jim