“Why Should I Fix My Credit” – Part 1 of 2 Part Series

So for some of my clients the biggest question after they have viewed their credit report is “Why should I spend the time to fix it”? Fixing your credit report or spending the time to improve your scores can be very time consuming and not to mention dealing with all the creditors can be very irritating. However, when everything is said and done it is well worth the time and effort.

In today’s society credit scores are used very often and for many things. Lenders use them to determine your risk associated with offering you credit. It can be used in everything from mortgage loans to auto loans. Some of the areas that are not as commonly noticed but definitely still apply are credit cards, student loans, credit unions, rental applications, employment applications even cell phones and car insurance. If you don’t believe me talk to someone from a cell phone company and let them know you have bad credit.

Sometimes lenders will still offer credit even with a bad report but in each case it will cost you more than you realize to acquire that credit. In the mortgage lending world and for that matter any lending environment, you are given the best terms when you have the best credit. So oppositely you are given the worst terms if you have bad credit. Not only can this affect your ability to get loans but it will also cost you a lot of unintentional money spent because of this.

So now you may be wondering how and why these negative items are reporting on your credit report. Well, even though there are many different forms of negative items, lates, balances, collections, inquiries, length of account history, etc. they all are reported from the same source…your creditor. Usually every 30 – 60 days your creditor or lender will report any new history, whether good or bad, to the reporting agencies. Even if the information is not true…unfortunately it is up to you to fix it. Just as there are many ways that good and bad credit can be reported there are just as many ways that false information can harm your credit report, identity theft is only one example.

It is wise to view your report on a biyearly basis and having a professional walk you through the reporting information can also be very beneficial. There’s a lot of information to look over and it can be very overwhelming to look at, especially if there are lates and erroneous information. I have seen it over and over and over again with clients.

So once you see the different items that are reporting to credit, false or not, there are two areas that you want to focus on fixing. Quite simply they are the items that are not true and the items that are true and are negatively affecting your score.

With the right direction, it can be fairly easy to get false information removed from the report. There are hundreds of articles that can help you with this. The ones that I want to focus on are going to be the items that are true. These can be much more time consuming and difficult. However, I have to add, they may be removed from the report but you still will owe the balance until it’s paid off.

I’m going to leave you hanging…I know, don’t kill the messenger. Next week, I am going to talk about what tools you can uses to get these “true” items taken off your report at a rapid pace. The best part is that in the process this will remove the false information as well. Stay tuned for more info.

Dedicated to your Financial Success,


Kenton Becker
kentonb@empireoptions.com
Managing Partner / Lakemont Mortgage Specialist
License # 510-LO-36929
http://www.empireoptions.com/

Why Do a Rent to Own – 7 Benefits That Will Drive You to Home Ownership.

So you want to buy a home? Well then you are probably aware of some of the benefits of home ownership. For instance, the appreciation, tax benefits, pride of ownership, etc, but what if you are unable to get into a home due to financing issues. As a loan officer I am constantly seeing more and more lenders change guidelines and dropping off the map. So then what, well if you are considering doing a Rent to Own as an option then you are on the right path.

There are numerous benefits to going with our Rent to Own program when you are unable to acquire financing. I’m going to list out 7 of the largest benefits that I have found over the last couple years.

Top 7 Benefits:

#1 Building Equity: If you are currently renting, every month you send in a check it goes to the landlord to make him money and pay down his mortgage. After 2 years what will you have to show for it…nothing, except a chunk taken out of your paycheck each month. With our Rent to Own program your payment each month gets credited towards the purchase of your home. Also, because our area is still increasing in value each year at a steady rate you are building equity in the property through appreciation.

#2 Minimum cash out of pocket: Traditionally when you purchase a home you are going to be required to pay standard closing costs and depending on the loan program a down payment. But with Empire Options Rent to Own program you’re only required to pay 1st months rent plus a security deposit equal to your monthly lease payment. That’s it! This can save you substantially when you don’t have much money to spend.

#3 Bad Credit, No Problem: Sometimes people go through rough times with their credit and with our Rent to Own program that’s OK. Our program is a make sense qualification process. We don’t solely look at one thing to make our decision but a combination of your ability to make the payment each month.

#4 Time: Empire Options Rent to Own program gives you plenty of time to get your financial picture ready to go. With our program you can purchase the home anytime between month 13 and month 24. Traditionally most of our clients wait the full term to make sure that everything is in line but for some it makes more sense to buy early.

#5 Improvements and Alterations: One of the highlights of our Rent to Own program is that you have the ability to make improvements to your home. Do you want to replace the carpet, have at it. Paint the house, go for it. Install new counter tops in the kitchen and put in new cabinets, that's great. You are only limited by your imagination because this is your new home.

#6 Greater Financing Options: One major benefit with Rent to Own programs that is heavily overlooked is how you can utilize all the equity that you have gained. To keep it simple, when you buy the home at the end of the lease term you are not purchasing the home at 100% financing but rather refinancing the home at whatever loan-to-value you are at with the new equity. In most cases our clients are able to do a 90% financing loan with a lender, which will give you much better rates and terms.

#7 Pride of Ownership: Biggest of all is that you are getting into your own home. This is no longer a rental or an apartment but your own home that you have picked out. Empire Options Rent to Own program allows you to pick out the home of your choice based on the budget that you have set for yourself.

So that's the top 7 that I have found over the years. There are many more benefits that our clients have found as they have moved forward with the program but for simplicity sake I kept it small.

If you have any questions about our program or if you would like more information about how this program can work for you and your family, let me know. I would be more than happy to help.

Dedicated to your success,

Kenton Becker

kentonb@empireoptions.com

Managing Partner / Lakemont Mortgage Specialist

License # 510-LO-36929

http://www.empireoptions.com/