You can help your spouse or child to increase their score

1. Use the Buddy System

If you have no credit or can’t get a credit card on your own, explore the option of becoming an authorized user on a credit card. What you do is ask a primary cardholder, like a family member or significant other, if you can get an authorized card in your name on their account. Keep in mind that some scoring systems may give less weight to authorized user accounts than they do to primary accounts, but you would still stand to benefit from them.

While this can be a great way to add payment history to your credit file, it can be a delicate, high-stakes strategy. First, the primary cardholder must be willing to add you to his or her account, and even though this person can be anyone, you should only tie your credit to someone you deeply trust.

This is especially important for the primary cardholder. If you add an authorized user to your credit card account, and that user runs up a huge bill, you’re held accountable for it, and your credit score will be affected by the high debt levels or missed payments.

Adding your child as an authorized user on your account can help them build credit from a young age. In fact, the authorized user gets credit for the whole account history, not just the point from which they’re added to it. Not only does that establish a credit history, it increases the average age of accounts on your credit report, which is also an important factor in credit scoring.

Primary cardholders should keep in mind that their actions will affect that user. You don’t want to trash your kid’s credit by adding them as an authorized user to an account that’s maxed out or delinquent.


How Purchase Loans Are Made A Step-By-Step Walkthroug


1.   Pre-approval – Get pre-approved for a mortgage and know in advance exactly how much house you can afford. Completing this step will also increase your negotiating power since you’ll be viewed as a “cash buyer”.
2.   Loan Search – Put yourself in the hands of an experienced mortgage professional, someone who will help you to determine which financing options best suit your needs today and in the future.
3.   Loan Application – It’s crucial to supply the lender with as much information as possible, as accurately as possible. All outstanding debts as well as assets and income should be included.
4.   Documentation – Paperwork supporting the application must also be submitted. Information commonly sought includes pay stubs, two years’ tax returns, and account statements verifying the source of the down payment, funds to close and reserves.
5.   The Hunt – Begin shopping for a house. Once you find the right one, the terms of the sale will be negotiated, including the price and potentially the terms of the loan being sought.
6.   Appraisal – Lenders require an appraisal on all home sales. By knowing the true value of the home, the borrower is protected from overpaying.
7.   Title Search – This is the time when any liens against the property are discovered. A lien may have been placed on a property to ensure payment of outstanding debts by the owner. All liens must be cleared before a transaction can be completed.
8.   Termite Inspection – While most purchase loans do not require a formal inspection for termite and water damage, some loans (especially government loans) allow for the possibility. If problems are found, repairs may be necessary.
9.   Processor’s Review – All pertinent information will be packaged by your mortgage professional and sent to the lending underwriter, including any explanations that may be needed, such as reasons for derogatory credit.
10.   Underwriter’s Review – Based on the information put together by the loan professional, the underwriter makes the final decision regarding whether a loan is approved.
11.   Mortgage Insurance – Many lenders require private mortgage insurance when borrowers put down less than 20 percent on a loan.
12.   Approval, Denial or Counter Offer – In order to approve a loan, the lender may ask the borrowers to put more money down to improve the debt-to-income ratio. The borrower may also need a bigger down payment if the property appraises for less than the purchase price.
13.   Insurance – Lenders require fire and hazard insurance on the replacement value of the structure. Flood insurance will also be required if the property is located in a flood zone. In California, some lenders require earthquake insurance on condominiums.
14.   Signing – During this step, final loan and escrow documents are signed.
15.   Funding – At this point, the lender will send a wire or check for the amount of the loan to the title company.
16.   Confirmation of Funding – The lender authorizes the disbursement of loan proceeds.
17.   Closing – Documents transferring title will now be officially recorded by the County Recorder.
18.   Congratulations, you are now a homeowner!

If you’d like to learn more, please give me a call. I’d be happy to speak with you!


Easy tips to increase your credit

These quick tips will help increase your overallimages
¬†First, never cancel a credit card that is more than 2 years old. Having a “seasoned” account, one that is more than 2 years old is a big plus for you. Next, increase your maximum allowable credit limit. In other words, if you have a credit card that is close to its maximum balance, call the credit card company and ask them to increase the credit limit.The credit bureaus don’t like to see maxed out credit. Tell them you would
like them to do this without pulling your credit. You should also spread out your balances among your cards. trying to keep the ratio between card balances and credit limit to 30% or less.
If you are even considering buying a new home or refinancing, let’s take a look and see if we need to do some work to get your credit score up to its highest possible point. Since lower scores mean higher interest rates, even a few lost points on your credit score could cost you tens of thousands of dollars in wasted interest payments. Don’t wait, call or email me soon to schedule your complimentary credit review. I am here to help improve the
quality of your life and to save you some of your hard earned money. Thanks again for letting me enter your world each week and thanks for the referrals of your friends and family. I appreciate it and so do they

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DID you know ……

Did you know that 75 percent of the electricity used in your home comes from electronics that are turned off? Here are some great energy saving secrets..

Stop the drain of electricity by plugging your computer into a power strip, then shut it down when your done. You can also remove your digital camera and phone chargers from outlets when they are not in use.

Here’s another waste.. It’s the cost of being credit challenged. Did you know that the average person who has challenged credit will pay an extra $8,593.30 over a 5 year period on their car payments due to an increased interest rate? You could also pay higher insurance and mortgage rates! If you would like to make sure this isn’t happening to you.. I can give you a free credit analysis and help you find where you are on the credit scale. Give me a call anytime, I look forward to connecting with you soon!

Hope HallHall Lending Group

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