Boosting Your Credit Score

So you’ve got the basics down when it comes to keeping up with your credit score; pay on time, wipe out the balance every month, and never close out too many accounts at once, but what other factors of a credit score are most people kept in the dark about as to what makes their credit go up and down? There are 5 key components as to why your credit score is the way it is. Here are a few helpful and positive tips to keep in mind as you work on building a higher score:

• Paying on time and past delinquencies make up 35% of your score, which is the largest chunk. If you have any past due items or late accounts, you should bring them up to date as soon as possible. Also be sure not miss any future payments. With the exception of Inquiries, it can take up to 7 years for any past delinquencies to be removed from your credit report. One idea is to make periodic payments through-out the month. For example, if you decided to pay every Thursday you’ll cut the amounts and lower the balance on your report.
• 30% of your score is made up of your Utilization Ratio (Revolving Debt Ratio). This scoring is a major factor and comes from the amount and type of debt for your accounts. Many tend to believe that the due date is vitally important to a score, but often times what is calculated from the total on the statement date is even more important. If you pay most of the bill before the statement date, you can lower the utilization rate which will result in a higher credit score. Another great solution for this is to keep each balance owed on a credit card or loan to be as small a part of the maximum as possible.
• At 15%, the average length of time for a credit file comes next. Although your credit history grows with time, it still takes 7 years for any negative information to fall off of your report. On the other hand, you can help your credit score with positive accounts that have been opened for at least two years.  Just remember that the older the account the better (as it has more history), and do not close old credit cards (it helps your utilization ratio).
• Although it may not seem like a big deal, the mix of your credit factors in at 10% of your score. Having a variety of accounts proves that you can handle more than one type of credit or loan and will help you overall. Three to five revolving accounts, 1-2 automobiles, and 1 or 2 mortgages usually credit a healthy mix. Anything more tends to take a hit to your score.
• Along with the mix of your credit, be sure to keep a careful eye on your Inquiries as well. Inquiries also make up 10% of your credit and you will cause your score to suffer if you abuse this. “Soft-pulls” (personal, promotional, and insurance) do not usually hurt your scores, but “hard-pulls” (mortgage and automobiles) affect it greatly. In addition, do not apply for credit unless you need it. Every time you do your credit suffers whether you are accepted or not. If you have been a victim of identity theft you may want to consider putting a freeze on your credit to ensure that no one can open or inquire about any accounts without your permission in the future.

Following these tips can greatly help to improve on building or restoring your credit score. For more information on credit scores and restoration please visit our website www.ocdirectloans.com.

Owning A Home May Be Easier Than You Think

The CHF ACCESS Program is a new loan program designed to assist low-to-moderate income homebuyers with the purchase of a home, by providing a means to finance most of the down payment on a home purchase. Many times this means families and individuals can purchase a home much sooner than they thought possible!

The Program combines a 30-year fixed interest rate FHA First Mortgage Loan with down payment and/or closing cost assistance from CHF in the form of a low fixed interest rate Second Mortgage, making combined financing up to 99.5% of the purchase price possible. It is available for purchases of both new and existing homes, as long as the home will be the primary residence of the homebuyer, and does not require that the homebuyer be a first-time homebuyer. Those who may have owned a home in the past are still eligible to apply for CHF ACCESS.

 With flexible qualifying guidelines, the CHF Access home loan program is the perfect solution to help low to moderate income home buyers realize their dream of home ownership a lot faster than they thought possible!

For more information regarding the CHF Access Loan program and other state and local housing programs available, please visit our website www.ocdirectloans.com

 

 

 

 

Make Yourself a Better Candidate for a Home Loan

When obtaining a Home Loan several things will factor into your qualification for a home loan: your credit history, income, assets and your debt. All of these factors are within your control. The following is a blueprint on how to become a top candidate for a home loan.

When determining your credit worthiness for a home loan lenders look at your credit history. To them, your credit report shows how you handle credit and if you are responsible enough for a home loan. The better your credit score the better rate you will get, the exact opposite is true if you have a lousy score below 620. To make sure your score is where it should be, pay off or pay down the balances of your debt. Lowering your debt lowers your debt to income ratio, strengthening your borrowing power. Make all monthly payments on time and check your credit report for false or incorrect information. In addition, maintaining your score is crucial and any new trade lines may have a negative effect on your score.

Another important aspect when qualifying you for a home loan is your income. Maintaining your current occupation is crucial because at least 2 years steady employment will be required. If you need to increase your income to qualify for your home loan, be sure to stay in the same field. While it may be tempting to switch into a better paying field lenders like to see steady employment history. A second job may help, but then again 2 years of steady employment history is required in order to count towards your qualifying for a home loan.

When applying for a home loan, the larger portion you have to put down the better. While you may not be required to put a full 20% down these days, it is always a good idea to do so because you won’t have to borrow as much and your lender will consider you less of a risk when qualifying you for a home loan.

Getting a home loan can be a little tricky and confusing. Be sure to plan ahead, having a plan and adhering to it will make all the difference when qualifying for a home loan. Remember, buying a home should be fun and exciting! If you are looking for more information on home loans please visit www.ocdirectloans.com.

Zero Down! Fact or Fiction? The Truth About VA Loans!

The VA loan industry differs from conventional and FHA loans and there are many misconceptions about VA home loans.
If you are a California veteran, we want you to receive accurate and helpful information about the VA loan industry and loan programs available to you.

Below is a list of the top questions veterans ask, and we have the answers for you.

 

1. What is the VA Lending Limit?

2. I used my VA loan once, can I do it again?

3. Is there a down payment required?

4. Is there PMI?

5. I have a VA disability. Does this help?

6. I lost my home to VA foreclosure. Can I use my VA eligibility again?

7. I want to buy a multi-family property. Can I use my VA eligibility again?

8. My fiancée & I want to buy our first home. Can I include them on the loan?

9. I had a bankruptcy. Can I still use my VA benefits?

10. I want to buy raw land. Can I use my VA benefits for this?

11. My wife has bad credit. Can I exclude her from the loan?

12.What is the minimum credit score required to receive my VA benefits?

These are all very important questions to ask and if you have these same questions and would like more information, we would love to help you answer them.

Please visit our website www.ocdirectloans.com for more information, or reply to this post and one of our mortgage advisors will respond to your inquiries in a timely manner.

20 Things You Must Know Before Buying A Home

Purchasing a home may sometimes feel like a huge and overwhelming process. Many people are needed to coordinate a myriad of tasks. However, as with most experiences in life, familiarizing yourself with the process and knowing what to expect will relieve much of the anxiety and make the purchase far more enjoyable. Listed below are 20 frequentley asked questions that a home buyer should ask their mortgage advisor or real estate agent before purchasing their home. We want to make your transaction go as smoothly as possible so if  you currently do not have someone helping you with your home purchase transaction, please feel free to contact one of our representatives at Oxford Capital, and we would be more than happy to help you and answer any of these questions for you. 

1. How do I begin the process of buying a home?

2. How does purchasing a home compare to renting?

3. How do I know if I am ready to buy a home?

4. How do I know what I need?

5. What should I look for when deciding on a community?

6. How do I select the right real estate agent?

7. How can I find out how much homes are selling for in a certain area?

8. Is an older home a better value than a newer home?

9. What do I  look for when walking through a home?

10. How long will I be living in the home?

11. How do I keep track of all the homes I’ve seen?

12. How many homes do I look at before choosing?

13. I found a home, what inspections are required?

14. What does a home inspector do? How does the inspection figure in the purchase of a home?

15. Do I need to be there for the inspection?

16. What are “home warranties” and should I consider them?

17. How can I find information on property tax liability?

18. Do I need home owners insurance, and if so, how do I get the lowest rate?

19. I am ready to make an offer, how do I determine the initial offer?

20. Do I need a lawyer to buy a home?

If you are interested and would like more info regarding this blog, or any loan programs we offer please visit our website www.ocdirectloans.com for more information.

Tips for First Time Homebuyers

In today’s economy many prospective first time home buyers need to be smart about purchasing a home for the first time. Buying a home is usually the biggest purchase a person will make. Here are a few things to consider for first time home buyers.

Home values can change for various reasons; more specifically home values can decrease even without a disaster. A home’s neighborhood and surrounding area or the economy can have an effect on a home’s value. To combat this it is always a good idea to research the area you are looking. For starters an experienced real estate agent should be knowledgeable about the area and able to answer questions for first time home buyers. Research the crime level, school systems etc. First time home buyers should contact the city’s government and asking about future development plans in the area.

The pride of ownership for first time homebuyers often comes with hidden unexpected maintenance costs. To alleviate a lot of headache, first time homebuyers should look at homes that have been well maintained, recently updated (ie: new roof, new water heater, new electrical etc), new homes and should perform routine maintenance to avoid costly repairs. First time homebuyers should set aside reserves for those rainy days.

First time homebuyers should always seek advice from a professional and knowledgeable mortgage advisor. Mortgages can be very confusing and a seasoned mortgage advisor can help navigate first time homebuyers through one of the largest financial decisions they will make. Finding the right mortgage loan that suits the first time homebuyer’s needs is just as important as finding the perfect house that meets their needs.

Now is a great time to be a first time homebuyer. With the right education and representation first time homebuyers stand to get an excellent deal! For more information on mortgage loans and first time homebuyer programs, please visit our website at http://www.ocdirectloans.com/home.

 

CalSTRS Home Loan Program Advantages

Whether you are dreaming of buying a new home, or refinancing to lower your payments or to take cash out, the CalSTRS Home Loan Program can help by offering competitive rates on a variety of mortgage loan programs.

Who is eligible? Most likely you are! If you are a member of CalSTRS, you are eligible to apply for a loan under this exciting program. You are also eligible to take advantage of the CalSTRS Home Loan Program if you currently receive a paycheck from a California public school.

• Conventional 15 or 30 Year Fixed Rate

To meet your individual needs, competitive rates are available for buying a new home or refinancing your existing home. Mortgage loan amounts are available up to $834,000.

• 80/17 Program

Put only 3% down with an 80% first mortgage and a deferred 17% second mortgage that has no payments due for 5 years! Mortgage loan amounts are available up to $650,000.

Your Money Works for You

Income derived through the Home Loan Program goes to the California State Teachers´ Retirement Fund.

Receive Discounts

CalSTRS has negotiated discounts on escrow fees, and mortgage insurance rates. So you save money when buying or refinancing your home.

If you are interested and would like more info regarding CalSTRS loan programs, or any other loan programs please visit our website www.ocdirectloans.com for more information.

CHF Platinum Home Buyer Grant Program

CHF Platinum is a 3% home buyer grant that can be used to cover down payment or closing costs.

This program is, at this point, perpetually funded with no pre-determined limit to availability of the down payment or closing cost assistance.

Buyers can buy a home for as little as 1/2 percent down, have a 620 FICO, and do not have to be a first time home buyer.

The CHF Platinum program is being administered by the National Homebuyer Fund (NHF).

The top 3 things you need to know about the CHF Platinum Grant

1. You must use an approved lender (brokers not allowed) approved to offer a NHF first mortgage.
2. The first mortgage can be either a FHA, VA or USDA loan at the published interest rate. Lenders are not allowed to determine the interest rate for this program.
3. Home buyer must meet income requirements for CHF Platinum program.  Income limits are limited to 120% of Area Median Income for the county that the home is purchased in.

This is an incredible opportunity for home buyers to take advantage of historically low interest rates as well as affordable home prices.

We are in the middle of very challenging economic times.

Most home sellers are waiting for home prices to go up, and at the same time we are experiencing record foreclosure rates creating greater availability and lower prices.

This is definitely shifted to a buyer’s market.

What is a buyer’s market ?  Basically it’s a product of supply and demand benefiting the buyer based on over supply and low demand.

As more and more foreclosure homes come on to the market as a result of flushing out the shadow inventory, sellers will have to reduce prices and be more flexible to buyer demands to sell the homes faster.

Bottom line, if you are in the market or considering buying a home in California – you are in a very powerful negotiating position!

For more information on the CHF Platinum Program please visit http://www.ocdirectloans.com

How Much Mortgage Can You Afford?

Purchasing your first home is an exciting decision. Deciding what you want in a home and what you don’t want is a very important step. However, calculating how much of a mortgage you can afford should be the very first step.

Most Mortgage Advisors go by the 28/36 rule when determining how much mortgage you can afford. This means mortgage lenders prefer to see your mortgage payment come in at less than 28% of your gross monthly income and your total combined monthly debt come in less that 36%.

Even still, just because you can afford the home doesn’t mean you should buy it. The larger home you purchase the more your monthly utilities can cost, so keep these figures in mind as well when deciding how much you are comfortable with in a mortgage.

Several things affect your ability to borrow money. Credit history, income, assets, and your debt to income ratio are the key credit deciphering factors. Going over this information with your mortgage advisor early on in the process allows you to get pre-approved for your mortgage loan; saving you time and money. Knowing how much you can afford in a mortgage also helps your real estate agent find the most suitable homes for you to look at. Looking at homes that are in your price range prevents the your eyes getting bigger than your wallet, which often times leads to heartache down the road when you end up with a house you can’t afford. For more information on obtaining a mortgage loan please visit www.ocdirectloans.com.

Purchasing a Home for the First Time – Some Key Things to Think About

Deciding to purchase a home for the first time is a big decision, one that requires careful consideration and merit. The purchase of a home is often times the largest financial decision you will make, so it is important to consider what your needs and wants are. In addition to finding the perfect home, home buyers must also find the perfect mortgage loan that suites all of their needs. The following are some key steps in buying a home for the first time.

First decipher how much mortgage you can qualify for and comfortably afford. A qualified mortgage advisor will be able to analyze your: credit history, income and employment, and your assets, to determine how much of a mortgage you will be able to obtain. This is a great starting point, because knowing how much of a mortgage you can afford will help your real estate agent find homes that are in your price range. Knowing where you stand financially can also help you improve your situation before you obtain a mortgage loan, allowing for more favorable terms.

Once you have your pre-approval letter you can sit down with your real estate agent and go over your wants and needs. In addition to your price range, some things to consider are location, length of time you are planning to stay in the home, and how much work, if any, you want to put into the home. With this information in hand your real estate agent can start looking for homes for you to view that meet your criteria.

Once you find a home you like you can place your offer. Again a pre-approval paves the way for a more likely acceptance because it shows that you are prepared and a serious buyer. It also starts the mortgage process, which can take a while depending on the circumstances. When your offer is accepted, escrow will be opened and the process really begins. To ensure a timely close, be sure to provide your mortgage advisor with all requested documents in a timely manner. Failure to do so could result in greater delays. Throughout your mortgage transaction it is important to maintain your financial status and by that I mean your employment and income, and credit score. Any significant drop in either can adversely affect your mortgage loan eligibility and put ownership of your dream house in jeopardy.

Before you take ownership it is advised, although not mandatory, that you have a home inspection performed, in addition to the appraisal. This will let you know the overall condition of the home and shed some light on any problematic areas that may require attention, be they ever so small or catastrophic.

If you are thinking about purchasing a home for the first time, I encourage you to visit our website at www.ocdirectloans. We provide a wealth of information for first time home buyers and existing home owners regarding mortgage products.