UtahCreditCoach uses a unique software program we call "Home Sweet Home." The program guides you, step by step through the process, coaching you to reach your credit goals. Once you are enrolled, you are able to log into the system, anytime, anywhere and work towards improving your credit scores. REGISTER HERE FOR A FREE, PRIVATE CONSULTATION!
Last year Fannie Mae and Freddie Mac introduced new Loan Level Pricing Adjustments, which increase the borrowing costs for higher risk borrowers. Some areas that Fannie and Freddie consider higher risk are borrowers with fico scores less than 740, loan to values greater than 70% or combined loan to values (1st and 2nd mortgages combined) over 80% and of course Non-Owner Occupied mortgages.
As of April 1st 2011 Fannie will be increasing these loan level price adjustments for borrowers that fall into these higher risk loans. However as most of you know, our clients don’t borrow directly from Fannie Mae or Freddie Mac, they borrower from Citywide Home Loans, Wells Fargo, Bank of America, etc. These banks have started charging these loan level price adjustments this month, because they know it might take several months for Fannie or Freddie to purchase these loans and they don’t want to be shorted when they sell the loans.
How much would you be willing to pay to have someone
Coach you for a year on how to fix your credit
Analyze your credit report every 90 days
Put together the steps you need to take
Analyze how the steps taken are going to help all three bureaus
Show you why you need to take the steps
Show you the points you will gain by taking the steps
Help you with disputes
Help you put together goodwill letters
Show you which accounts to pay down and why
Guide you on what to say to collection companies
Look over your report for mistakes in reporting
Help you correct any errors that show up on your report
Help your score recover after bankruptcy, foreclosure, short sale
We use lender scores/reports not consumer credit report scores (theres a huge difference)
Be there for you to help you
Still think you want to do it by yourself???
If you were able to access your lender report and then have all three bureaus run a lender credit report for you every 90 days your cost for one year would be roughly $162.00 and you would not have access to a software program to analyze your steps or a coach to work on your report and with you for the year ( see list above)
So why do we only charge $89…. because we know it works and want you to succeed.
To enroll in our credit coaching program simply go to our website http://www.UtahCreditCoach.com and at the top you will click the “private consultation request” Once I receive your email I will contact you and send you the forms to enroll.
Did you charge all your holiday spending on your credit cards? Are your cards maxed out? Are you cringing at the thought of opening up your January Credit Card statements? If you are currently in the process of buying a home or want to buy a home in 2011 we need to get your credit score in order, check us out, UtahCreditCoach.com
I wouldn’t have thought this big of an increase would be possible with everyone talking about tougher credit card laws. Credit card companies shutting down card limits. Credit scores dropping so people no longer qualify for the loans they are applying for. When I saw this statistic I was floored, needless to say I am still sitting here baffled.
Between the first and second quarters of this year, Americans added to their debt by a whopping 249% over the same time period last year. -CardHub
I see this as a sign that more people still need help as we try to recover as a country. Many people are still looking for jobs. To anyone who is trying to borrow from Peter to pay Paul, stop the madness and start moving forward. Call the companies you are having a hard time repaying and work something out. The phone call is well worth the time and money you may save in the end.
Step 4 is to Pay your bills on time. Sounds simple but to someone who is barely making it day to day the thought of paying all their bills on time may seem impossible. Some days its down to paying the bill thats due or putting food on the table for your family. Again step three is critical to keep up on step four. You must have a budget; a place to start. Step four will always be a struggle without completing your budget and becoming knowledgeable about the whole picture.
Now assuming that you’ve completed step three; you can now look at your bills and their due dates. If the dates fall during the middle of a pay period, set it up to have them paid out of the earlier paycheck. This may be easier said than done, but it really does help out. Once you’ve switched your mindset and you get used to this happeneing, you’ll have the peace of mind of knowing you will never miss or be late on a payment.
*(this step may require you to get another part time job maybe sell some items you don’t use around your house)* You will need to build up some money so you have the ability to switch the payments to an earlier pay date.
When you get paid, Ialso suggest you immediately put money aside for groceries. That will help eliminate the desperate situation of having to choose to pay a bill or put groceries on the table. It takes time to switch your thinking and day to day lifestyle habits; but paying your bills on time is another critical piece of your FICO score. A late payment or missed payments hit your score hard. Payment history is 35% of your credit score
Missed Payment:
30 day late payment: if your credit score is around 680 you risk a possible 60-80 point drop in your score
30 day late payment: if your credit score is around 780 you risk a possible 90-110 point drop in your score
YIKES…. another reminder, please please please ….even if you setup all of your payments to deduct out of your banking account automatically, stay on top of your balances, due dates and any changes in the monthly payments required. This will also hurt you if the full payment is not made… more on that later.
Questions? Contact me, I’d love to help.
Remember if you find yourself in a situation where you can’t make the payment, contact the agency you owe the money to and work out a plan.
One way to avoid financial mistakes is to know where all your monies should go. Sometimes it’s a little scary to sit down and “face the music,” to see where all of your money is actually going. Budgeting is a vital step in turning around your financial situation and begin moving forward. A key to your credit score and improving it is to learn to expect the unexpected. Create a budget and stick to it.
Although creating a budget and sticking to it maybe stressful at first; I guarantee the creditor calls (if you fall behind on your payments) will bring stress to a whole new level. Here are some simple budgeting tips to keep in mind while you start your budgeting adventure:
Budget: A Key Step to Credit Repair and Improvement
Know your budget temptations and stay away from them
Wait before making an impulse purchase. Do not purchase the item, walk away, turn off the computer; just remove yourself from the situation. If you can not pay cash for it, figure out how long it will take you to pay it off with interest added to the price. Now ask yourself: ”How many hours of work will it take for me to pay for that item?”
Budget for items like birthdays, Christmas, vacations etc. If you neglect to put aside money for these items you will end up reverting to old habits in-order to pay for them.
Start an emergency fund and do not touch it unless its an emergency, this does not mean an impromptu invite to the movies…..
Set money aside for infrequent bills (yearly car license/tabs, property taxes, insurance)
Some people prefer online budgeting. Contact me for suggestions on where to go.
Carry your budget around with you in your wallet or purse.
Contact me at www.utahcreditcoach.com for your free budget spreadsheet, coaching session or if you have questions.
Looking for an inspirational, motivational video? I have watched this video numerous times. The section on “You have to believe” is so true. I would love it if you took some time out of your busy life to watch this 10 minute video by Will Smith. The excerpts are from different interviews he has done. Definitely one of my favorite videos on youtube. Thank you to Will Smith for the words of wisdom and to youtube “themindguru” for posting it.
ENJOY… and Never let anyone tell you that you can’t do something
Another fantastic meeting with clients today. I met with a young couple today who have been through some really tough times. They have been working diligently on moving forward, trying to put the past behind them. Their ultimate goal is to stop renting and purchase a home of their own. Instead of having more doors slammed in their face, they finally had one open up.
I looked over their credit report and sure enough there were errors on the file. Close to 80% of the credit reports out there have errors on them. This made all the difference in the world. The credit simulator ran the scenario and showed a possible improvement of +55 points. One error corrected will result in a huge point gain for the consumer. This can potentially make a large difference in their interest rate, whether they will qualify for a loan or not, their home owners insurance rates, the list goes on and on and on…..
After going over their other possible areas of point gain, they left the meeting relieved, happy and excited to finally see the light at the end of the tunnel. Another happy customer!
Last year Fannie Mae and Freddie Mac introduced new Loan Level Pricing Adjustments, which increase the borrowing costs for higher risk borrowers. Some areas that Fannie and Freddie consider higher risk are borrowers with fico scores less than 740, loan to values greater than 70% or combined loan to values (1st and 2nd mortgages combined) over 80% and of course Non-Owner Occupied mortgages.
