As home investors all know, “You make your money at the time of purchase.” How? By being a wise buyer.

While it’s true that you’re buying a home to live in, not to re-sell, you still need to keep that wisdom in mind. So consider another old investor adage: “Buy the worst home in the best neighborhood.”

No, I don’t mean you should buy a ramshackle, run-down home that will cost you thousands before the first year is up. By “worst” I mean you should consider homes that need a bit of cosmetic care, or perhaps a thorough scrubbing.

Carefully consider these points:

Begin by choosing that “best neighborhood.”

“Best” can be defined as a neighborhood that is, in general, well-kept. Look for pride of ownership in the neighboring homes. Notice the number of for sale signs. If they’re there in abundance, it might be safe to assume there’s a reason why so many people want out.

Unless you’re choosing a seniors’ only development, “best” can also be defined by the school district. Learn the boundaries, then go on line to research the schools and their ratings. Even if you have no children or your children are grown, you should think ahead to the day when you want to sell.

Once you’ve chosen a neighborhood – or two or three – begin working with an agent who knows the territory and will work hard on your behalf. Remember that loyalty to just one agent will get the best results.

As you begin your search…

Look Beyond Curb Appeal: Smart home sellers know that curb appeal sells homes – but not all home sellers are smart and not all have the time, energy, and money to create a beautiful exterior. One can always find Fusion Exteriors here, though. So take a second look at the homes other buyers are passing by because the lawn isn’t mowed or the window trim needs a new coat of paint. Look past the overgrown shrubbery to see the house itself, the size of the lot, and the possibilities for landscaping.

Interior condition: Beautifully staged homes sell faster and for more money. That’s a fact few can deny. And yet, you may walk into a house that’s completely cluttered, with unmade beds, dishes in the sink, and windows you can scarcely see through.

Many buyers will take this as a sign that the whole house is in disrepair and simply pass it by. Or, they pass it by because they want a house that’s move-in ready. But do look twice, because you might be looking at a rare bargain.

Be alert for signs of structural damage as evidenced by:

• Water Damage (contact BC Restoration Services in that case)
• Pest damage (that is crucial, if you really like the house better immediately call for specialists like those from the #1 Pest Control in Chicago, Illinois!)
• A sagging roof line
• Large cracks in the foundation
• Uneven or spongy floors

If you don’t see those things, then move forward and make your purchase contingent upon the results of a professional home inspection.

Whether the problem is exterior or interior condition, a house that doesn’t show well is apt to be on the market for a long, long time, with more and more price reductions along the way. Plus, the owners may be ready to entertain an offer below the list price. You could possibly save 3 or 4 times the cost of cleaning, repainting, and installing new flooring – or remodeling a kitchen or bathroom, according to the experts in exterior remodeling Fort Lupton.

Look at the floor plan and the functionality for your household. Hating the wall paper or the kitchen counter tops is not a good reason to pass up a house that will suit your family and comes at a bargain price. As long as the house is structurally sound, has room for everyone and a pleasing floor plan, give it a second look.

Don’t get hung up on square footage. Yes, the trend lately has been for larger and larger homes, which of course means larger and larger mortgage payments, larger and larger utility bills, and more and more time and/or money spent on upkeep.

Instead of choosing the largest, most expensive house you can afford, choose a house that has the space you need – and perhaps a floor plan and a lot that will allow for an addition should you (or a future buyer) want to expand.

Don’t over-spend. That big, beautiful, gorgeous home can turn into a lead weight around your neck if you have to forgo other pleasures just to make the payments and pay for upkeep. So consider your lifestyle, your hobbies, and the small pleasures you enjoy.

Your lender will tell you what you can afford based on verifiable income and expenses – but he or she has no idea whether you’ll feel deprived if you can’t attend concerts, dine at 4-star restaurants, or send your children to exclusive summer camps. You do know, so add a line to your budget called “enjoying life” and ask your lender to calculate your top home price with that as one of your expenses. A review by paul koger states that it is better to have the basic knowledge of trading while considering buying a house as it helps you in making wise choices based on the market condition.

When you’re ready to search for that home, make your first step a call to the Mike Clover Group at Homewood Mortgage. We’ll be glad to get you pre-approved so you can search with confidence.

You can reach us at 469.621.8484 or apply on line at mikeclover.com.

The 14 million or so self-employed borrowers in the U.S. naturally mourned when the housing crisis hit and banks tightened up their lending guidelines. Gone were the days of no-doc and stated income loans.

Following that, self-employed borrowers were required to complete a staggering amount of paperwork – enough to almost prove that they didn’t even need the loan. Like all borrowers, they had to submit information regarding income, debts, savings, employment history, and a record of where they’ve lived.

Of course the lender checked their credit and verified the information provided. All borrowers were (and are) also required to show the source of any large or atypical deposits to their bank accounts.

For self-employed borrowers, even more was required. For instance, in addition to bank records, they were required to submit copies of two years of complete federal income tax returns, plus documentation verifying the vitality of their business activities.

These stringent policies have now been eased.

First, self-employed borrowers who don’t regularly pay themselves wages from their business must now show only that they have access to income from the business. If not a sole proprietorship, this can be accomplished with a letter of incorporation or a K-1 filing showing the borrower’s ownership percentage.

Of course, they do need to show that the business income can support withdrawals.

The other two changes have to do with submitting federal income tax returns.

The old requirement for two years of tax returns has now dropped to one year. The borrower must show self-employment income from the business over the entire twelve months, and a cash-flow analysis must verify that the business is sound. The benefit – if things didn’t go so well the previous year, or if you were just getting started, you no long need to disclose the fact.

Next, borrowers who qualify for a mortgage loan without counting income from their self-employment are no longer required to submit their business tax returns as long as they have business w2 income and they qualify with that income only. This is a big plus for those whose self-employment is not yet contributing to their income – or for whom self-employment provides substantial “paper losses” to offset income tax on their wages or salaries.

If you’re self-employed and wish to purchase a new home or refinance an existing home, get in touch! The Mike Clover Group at Homewood Mortgage would love to help.

You can give us a call at 469.621.8484 or apply on line at mikeclover.com.

Mike Clover

R.M.L.O

Homewood Mortgage,LLC

O: 469.621.8484

C: 469.438.5587

F: 972.767.4370

18170 Dallas Parkway

Ste. 304

Dallas, TX 75287

For the past several years, would-be homeowners have been on the fence, wondering at first whether prices would continue to drop, and then feeling uneasy about the economy. And then of course there was that period of time right after the housing crash when lending standards were too stringent for many people.

But now… it may be time to take the plunge and either move up to a house better suited for you and yours – or move from renting to owning. Here are four good reasons:

1.      Prices are expected to keep rising.

Reports show that home prices in the U.S. have appreciated by about 6% in the past year. That varies from city to city, with some remaining steady and others appreciating at a much higher rate.

Core Logic predicts that over the next twelve months, prices will rise another 5.4%, and The Home Expectation Survey predicts an appreciation of more than 3.5% per year for the next 5 years.

So erase the thought that you’ll “get a better deal” next year than this year.

2.      Interest Rates are Still Low

While Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for 30-year mortgages have remained at 3.5% or less for the past quarter, many of those “in the know” predict that rates will have increased significantly by this time next year.

Since a 1% rise in interest rates equals approximately $56 more per month in your mortgage payment for each $100,000 of loan value, this rise will definitely affect your buying power.

3.      Unless You’re Living With Mom & Dad, You’re Paying a Mortgage – it just might not be your own

Unless you have no housing costs because you live with family or friends, you’re paying for the roof over your head.

 You’re either paying it to the bank who gave you a home mortgage loan or you’re paying it to a landlord. The big difference is that when you pay it to the landlord, you’re also paying what he or she hopes will be a margin of profit for owning the property. As a tenant, you’re also paying into a fund to cover repairs, maintenance, and vacancies.

If you choose to purchase a home similar to the one you rent, your monthly outlay for a mortgage payment should be less than the rent you’re paying.  AND… you’ll be gaining equity each month.

4.      It’s Simply Time to Become a Homeowner

Why does anyone want to own a home? The reasons range from a desire for independence to wanting to put down roots in a community. You may want a home you can alter to suit your own family or you may want the security of knowing that your monthly outlay for housing can’t rise.

Whatever your reasons, when it’s time – it’s time. If it’s time for you – don’t wait, because waiting could cost you thousands of dollars.

When should you NOT consider purchasing a home?

When you know your employment is shaky or when you know you’re apt to move to a different city within the next 2 or 3 years.

Getting pre-approved for a loan before you shop is wise…

So visit to fill out our on-line application at http://www.mikeclover.com/ or call us at 800-223-7409 and we’ll get started.

Your pre-approval will serve two valuable purposes:

·         It will show you what you can afford, so you don’t fall in love with a home that is out of range.

·         It will strengthen your position with sellers – because they’ll be able to see that you can follow through with your offer.

Don’t wait. If now is the right time for you to own a home – get in touch today.

Mike Clover

R.M.L.O

Homewood Mortgage,LLC

O: 469.621.8484

C: 469.438.5587

F: 972.767.4370

18170 Dallas Parkway

Ste. 304

Dallas, TX 75287

You owe your individual ability to own a home to your own hard work and enterprise, but take a step back and consider how you got the freedom to own that home – and the freedom choose where and how you work and live.

For that, you owe the veterans who put their lives on the line to protect America and every American’s freedoms. Thousands did lose their lives in that effort. Of those who came home again, many suffer from physical disabilities they will carry for the rest of their lives.

Without veterans, we would without a doubt be living with no freedom to choose anything at all. 

We think that makes veterans highly deserving of home ownership.

That’s why we feel distressed when we hear real estate agents recommending that their listing clients decline to sell their homes to those using Veterans Association financing.

Their story is that VA loans are tougher – and that they cost the seller too much. While it is true that the VA won’t approve loans on sub-standard housing, the old regulations that required a seller to pay all of a veteran’s loan costs are a thing of the past.

The only standard borrower’s cost that cannot be paid by the veteran is the termite inspection fee – and in many cases inspectors waive that $75 – $100 fee when the buyer is a Veteran.

The fact is, agents who discourage their clients from accepting offers from veterans are ill-informed and sadly behind the times. They’re also forgetting who paid for our freedom to purchase and sell homes.

Any buyer can ask for seller concessions, and many do.

Whether the buyer is paying cash, using a conventional loan, borrowing through an FHA loan, or going with VA, he or she has the option to ask for seller concessions – and many do. Those concessions might include the seller paying some or all of the borrower’s loan costs, or might be something entirely different, such as giving an allowance for new flooring.

You as the seller are under no obligation to accept that offer as it is written, but can either reject it or negotiate with the buyer in an attempt to settle on a price and terms acceptable to both of you. This is the same whether the buyer has cash or is getting any type of loan.

Veterans aren’t asking for and don’t expect free housing. They’re simply asking for the same consideration and opportunity to purchase a home as any other citizen.

We believe they should be given that opportunity. In fact, we believe their offers should be given the highest consideration and priority.

Without veterans, you and I would not have the freedom to own a home, much less the right to sell one.

When you have a choice, choose a veteran to purchase your home – it’s the right thing to do.

Mike Clover

R.M.L.O

Homewood Mortgage,LLC

O: 469.621.8484

C: 469.438.5587

F: 972.767.4370

18170 Dallas Parkway

Ste. 304

Dallas, TX 75287

If you’re planning to sell your home within the next 3 years, the answer is no. Refinancing typically carries closing costs amounting to 3% to 6% of your loan amount, so you need to be planning to stick around long enough to reap the benefit.

Although 3 years is typical, how long depends upon the interest rate you’re paying now and the interest rate you could get today, so take the time to do the math before making a decision.

Otherwise, here are 4 good reasons why you should sit down with us at Homewood Mortgage and discuss your alternatives.

The first and most obvious reason is if you’re paying too much interest!

Conventional wisdom says that if you’re paying 1% or more above the rate you could get today, then it’s time to consider refinancing.

According to Core Logic, more than 1/3 of homeowners are paying at least 4.5% – and some of that number are likely paying more than 5 or 6%. Refinancing would save them thousands of dollars.

What if you don’t want to increase the time left on your mortgage?

Some homeowners hesitate to refinance because they’ve paid their mortgage down to 10 or 15 years and don’t want to start over. The good news is, taking out a 15 year loan will get you an even lower interest rate – and if you keep making the payments you’re making now, you’ll have that loan paid off even sooner than your original plan.

Next: You’re paying mortgage insurance.

Mortgage insurance adds a hefty fee to your payment each month, while giving you nothing in return. So if you now have at least 20% equity in your home, refinance into a conventional loan and get rid of that extra expense.

With home values climbing steadily, you could have more equity than you realize, so check into it.

Remember: You need to qualify for a conventional loan, since ALL FHA loans now carry mortgage insurance, regardless of your down payment.

Third, you need to take some cash out of your home equity.

If you’ve got some high interest credit card debt to pay off; if you need to invest in some repairs or upgrades to your home; or if you’re carrying a higher interest second mortgage that you could retire, a cash-out refinance could be a wise move.

Just remember – refinancing to take out cash for a car, a boat, or a vacation is a very, very poor idea.

Four: You’d like to shorten the life of your loan.

Yes, you could do this by simply making a larger payment each month, but why not take advantage of the low interest rates available for 15- year mortgage loans – so that more of those dollars go to reducing the principal each month?

To refinance or not to refinance should depend on just two things:

• Whether you plan to stay in your house for the foreseeable future.
• Whether the numbers make good sense.

We’ll be happy to discuss your situation with you. Then we can get you pre-approved for a loan and tell you what interest rate you’d be offered.

After that, we’ll help with the calculations so you can see the total costs and the total savings you’d see with a 15-year loan or a 30-year loan.

We’re the Mike Clover Group at Homewood Mortgage – and we’d love to help you save money!

Just give us a call at 1.800.223.7409.

Mike Clover

R.M.L.O

Homewood Mortgage,LLC

O: 469.621.8484

C: 469.438.5587

F: 972.767.4370

18170 Dallas Parkway

Ste. 304

Dallas, TX 75287

The answer lies in you, and your plans for the future.

First – what’s the difference between a fixed-rate and an adjustable-rate mortgage (ARM)?

A fixed-rate mortgage comes with principal and interest payments that remain the same over the life of the loan – whether it’s 15 years, 20 years, or 30 years.  30-year mortgage loans are the most common, while shorter term loans carry a slightly lower interest rate.

An ARM starts out with a fixed rate for the first few years, then it adjusts based on market indexes. That initial rate is always significantly lower than the rate on a fixed-rate mortgage.

The interest rate on this loan adjusts after a pre-set time. It might be 3 years, and could be up to 10 ten years. Some can only adjust by a set percentage per year, and some do have a lifetime cap. Some only allow for upward adjustments, so if the market indexes go down, your rate will remain the same.

The bottom line: Read all the fine print before choosing an adjustable-rate mortgage. Make sure you understand the terms.

But back to the question – which is better?

Fixed-rate Mortgages:

If you crave safety and predictability, and you see this as your long-term home, then you’ll probably prefer a fixed-rate mortgage loan. With interest at all-time lows, you might feel that interest can’t go anywhere but up, so a fixed-rate mortgage is your safest bet. This is the favored choice among those who plan to live in their homes for the predictable future.

The bonus: The only thing that can change is your taxes and insurance, so as your income rises, your house payment will occupy a smaller and smaller space in your budget.

The downside of a fixed-rate mortgage is that since payments will be higher, you might not qualify to purchase as much house as you might want. Also, should rates keep falling, you’ll have to refinance in order to take advantage of it.

But what if you know you’ll want to move up to a larger home or move to another community within the next several years? You might want to choose an ARM.

Adjustable-rate Mortgages:

If you know you’ll want to move before many years, you might be wise to choose an ARM and take full advantage of the even-lower rates you’ll enjoy in the first 3, 5, 7, or 10 years. This could be your opportunity to make increased payments and build your equity quickly, giving you more money for a down payment on your next home.

The advantages are that you might qualify for a larger/better home, and depending upon the terms of your loan, you might automatically see a rate and payment reduction if rates go down.

The disadvantage is that you’ll need to be careful to understand each of the terms of your loan, or you could get something you don’t want. For instance, there is an ARM called a negative amortization loan that could put you in a position of owing more than the house is worth. With this loan, you have extremely low payments, and you only pay a portion of the interest due each month. The rest of it is added to the principal, growing the size of your loan each month.

In addition, should we be faced with another housing crisis in which home values drop significantly, you could see a huge jump in your payment and be unable to refinance out of it.

Here at Homewood Mortgage, the Mike Clover Group, we strive to find the right loan for you and your individual circumstances. We’ll be happy to speak with you, to explain all of your options, to answer all of your questions, and to get you pre-approved for a loan before you begin shopping for that new home.

Just give us a call at 469.621.8484 or apply on line at www.mikeclover.com.

Mike Clover

R.M.L.O

Homewood Mortgage,LLC

O: 469.621.8484

C: 469.438.5587

F: 972.767.4370

18170 Dallas Parkway

Ste. 304

Dallas, TX 75287

The Majority of Home Buyers Opt for a 30-year Mortgage. Should you?

Why do 86% of home buyers choose a 30-year mortgage over a 15-year mortgage?

Even though a 15-year loan will carry a lower interest rate, and cost about 48% less over the long term than a 30-year loan, most borrowers look at the short term and choose the lower monthly payment.

Should you?

Here’s how it looks in actual dollars and cents:

Say you’re purchasing a $250,000 home and putting 20% down. Your new loan will be for $200,000. Interest rates fluctuate from day to day, but we’ll say a 30-year mortgage comes with 3.68% interest and you can get a 15-year mortgage for 2.69%.

• $200,000 at 3.68% over 30 years will bring your principal and interest payment to $918.31.
• $200,000 at 2.69% over 15 years gives you a payment of $1,351.54.

That’s a hefty difference in a homeowner’s monthly budget. You could use that $433.23 per month difference to buy new appliances, go out to dinner more often, or even save for a vacation. Or – just save it.

But look at what it will cost:

• $918.31 paid over 360 months (30 years) comes to $330,591.60.
• $1,351.43 paid over 180 months (15 years) comes to $243,257.40.

That’s a difference of $87,334.20.

The lower payment does give a measure of security against a day when you might not be able to afford the higher payment. So if you worry about a future job loss, illness, or fluctuating income, you may want to opt for the smaller payment and put the difference aside as a safety cushion.

Perhaps you know you won’t be staying in the house for 30 years, or even 15 years.

If you’re thinking that you’ll want to move in another 10 years, consider the impact on your loan payoff when you sell the house.

• If you opted for the 15 year payoff, your unpaid balance will be approximately $75,796.
• If you opted for the 30 year payoff, your unpaid balance will be $155,842.

Paying that extra $433.23 per month for 10 years (120 payments) will “cost” you $51,987.60 and reduce your loan payoff balance by $80,046. That’s a savings of $28,058.40.

If opting for a 15-year mortgage is too frightening…

Although you’ll be paying a little higher interest, you can do what young man of my acquaintance does. His monthly payment is $745, of which $237 goes to principal. By writing a check for an even $1,000 each month, he’s paying an extra $256 toward the principal and effectively more than doubling his payments during the early years of the loan.

Mike Clover

R.M.L.O

Homewood Mortgage,LLC

O: 469.621.8484

C: 469.438.5587

F: 972.767.4370

18170 Dallas Parkway

Ste. 304

Dallas, TX 75287

Since the Consumer Financial Protection Bureau has safeguards to protect consumers, does it really matter which mortgage company you choose to finance your home purchase or refinance?

Yes, it does matter. The CFPB insists on a level playing field with regard to rates and pricing, but pays no attention to how various banks determine the risk factor in lending to you. And of course, the more risk a bank perceives, the higher interest rate you’ll pay.

In addition, because banks operate under differing underwriting guidelines, a borrower may be rejected by one lender, but approved by another.

Why are there differences? Because some mortgage companies have what are known as investor overlays. These are additional constraints that go over and above the Fannie Mae and Freddie Mac guidelines.

The constraints may cover debt to income ratios, credit scores, and even the source of funds. Additionally, some banks will allow borrowers to pay off debts in order to bring their debt to income ratios into line for qualification while others will not.

In addition, some lenders originate loans and immediately sell them on the secondary market. Thus, they may be far more conservative in product offerings and underwriting than a lender who deals directly with Fannie Mae or Freddie Mac.  

Not all lenders offer all types of loans.

One of our popular loans is the “jumbo” loan – a loan that exceeds the conforming and conforming high-balance loan limits as set by The Federal Housing Finance Agency (FHFA). Here in Texas, the conforming loan limit is $417,000.

Many lenders, fearing the higher risk, refuse to grant a conventional loan if the borrower’s debt to income ratio exceeds 43%. Here at Homewood Mortgage, the Mike Clover Group, we follow Fannie Mae and Freddie Mac guidelines and take more factors into consideration. We grant conventional loans with much higher debt to income ratios. 

FHA loans were designed to help borrowers with credit scores as low as 580, but some lenders refuse to consider a loan for a borrower whose score is less than 640.

We have no investor overlays, and we use the automated underwriting engines approved by Fannie Mae and Freddie Mac. As a result, more of our clients qualify for home mortgages. We are able to operate without undue restrictions and to operate slightly outside the box to help our clients qualify.

As lenders, we’re dismayed by seeing the low, low teaser rates advertised to unsuspecting consumers. Too often, those promises apply only to borrowers with hardly any debt and credit scores in the high 700’s. So before you say “yes” to one of those lenders, insist that they get you pre-approved and that they give you their complete offering in writing.

Meanwhile, whether you’re looking for a new home or need to refinance your existing home, give us a call us at 469.621.8484. We at Homewood Mortgage, the Mike Clover Group, will be happy to talk with you and show you the loan programs available to you.

We’ll also be happy to get you pre-approved in writing, so you can both shop for your new home with confidence and compare our low rates and fees to any other lender you may be considering. 

Call us at 469.621.8484.

Mike Clover

R.M.L.O

Homewood Mortgage,LLC

O: 469.621.8484

C: 469.438.5587

F: 972.767.4370

18170 Dallas Parkway

Ste. 304

Dallas, TX 75287

Several numbers are important to prospective home buyers. One is the amount you’ve set aside for a down payment; another is the amount you can comfortably afford for a monthly mortgage payment. But possibly the most important number is your credit score.

What IS a credit score? It’s a numerical representation of your credit history. It reflects your track record of paying bills on time and how much debt you carry. It is used in an effort to gauge the risk of lending you money.

A perfect score is 850, and I’m not sure if anyone ever attains that number. All scores above 760 are considered excellent, while scores from 700 to 759 are classified is good. Fair credit means a score of 650 to 699, and below 650 is considered poor.

Those with excellent scores are considered the least risk and are eligible for the lowest possible mortgage interest rates. Why? Because the lenders want this business!  Those with “good” scores can still get low rates, but not the lowest rates. Borrowers with “fair” scores will pay even more, while those with “poor” scores will have to jump through any number of hoops just to get a loan at all. Of course, their loans will be at the highest rates.

Your credit score is determined from three scores, one from each of the three major credit reporting companies: Experien, Equifax, and TransUnion. The three can be slightly different depending upon who reports to them, and what they track.  Many lenders look at the middle score as representative.

How are scores determined, and what affects them?

35% of your credit score is based on your payment history. Even if you’ve paid all of your bills on time for your entire adult life, one 30-day late payment can drop your score by as much as 110 points.

30% is based on your credit utilization, and this is an area that gets some people into trouble. Holding a false believe that you should only have as much credit as you need to use can drop your scores dramatically. For the best scores, you should have far more credit than you need and use. In fact, you should use only 30% or less of the credit available to you from each source.

What does that mean? Don’t cancel an old credit card just because you no longer use it. Instead, use it once in a while and pay the bill in full when it arrives.

There’s a second reason for that:

15% of your credit score is based on the length of your credit history. If you’ve held the same credit card or cards for twenty years, that’s a very positive thing. The same is true for any account that reports to the credit bureaus.

10% of your score is based on your “credit mix.” Your credit score is enhanced by having a mixture of different kinds of credit accounts, such as a vehicle loan, retail accounts, credit cards, and a mortgage. Apparently, having different kinds of credit and making those payments regularly signifies that you’re a good money manager.

10% is based on new credit. This is a number that can be a negative. Lenders look unfavorably on a borrower who has opened several new accounts in the months prior to making a home loan application. This signifies that you “might” be borrowing from (or planning to borrow from) your credit card in order to make your down payment.

Don’t apply for new credit if you’re planning to buy a home. That 10 or 15% you could get off on today’s purchases at a retail outlet could end up costing you thousands of dollars in higher mortgage interest rates.

Don’t even let a retailer check your credit, as this could indicate that you purchased some form of a credit application filing service. The safest thing at this point: Do NOT disclose your Social Security number to anyone until you’re ready to apply for a mortgage.

Check your credit score when you first consider buying a home.

Why?For three reasons:

When you know your credit scores and what is affect them, you can take steps to raise them before you make your mortgage loan application. For instance, you can transfer part of a balance from one credit card to another in order to bring all of your ratios under 30% usage. You can also pay down some accounts. These changes take time, so get started early.

Secondly: Because 25% of all credit reports contain mistakes, and correcting them can take time.

Mistakes can happen easily when creditors are reporting. You might have the same name as someone who is habitually late with payments and it can get accidentally reported to your account. The data entry person might transpose numbers when entering a social security number, or hit the 5 when they meant 6.

Lastly, you could have fallen prey to identity theft without knowing it. Someone else could be using your good credit to obtain a job, rent a house, set up cell service, or borrow money. So check to see that every account is yours – and that you don’t have a new address or new spouse!

Get your free credit report from creditscorequick.com and read it carefully. If you find errors, go to a credit bureau web page and follow instructions for reporting errors. If you report to one, they’ll report to the others. Of course, if you find identity theft you should also contact the authorities immediately.

Even if you’re not thinking of buying a home, it’s a good idea to check your credit annually, just to make sure there are no errors.

Mike Clover

Another topic you have to consider is kids saving account. Check this options with Kids Savings Account | Fifth Third Bank.

Does home ownership seem like an impossible dream because you can’t seem to save for a down payment? If so, it might be time to take a look at the places where money is leaking out of your pocket, just a few dollars at a time.

You might be amazed to see just how much money you can save with a few lifestyle changes.

Here are 6 ways to save:

Cable television: At an average cost of $99 per month, cancelling that subscription would save you $1,188 per year. Did you know that you can borrow videos (and books) for free at libraries?

Gym membership: This is one you won’t want to drop if you’re really hitting the gym several days a week and staying fit and healthy because of it. But if you only go now and then, and if you pay $60 per month, stopping that membership will save you another $720.

Coffee: If you stop for coffee every morning on the way to work, that average cost of $3.65 per cup is costing you $949 per year. If you pay $8 for a can of coffee and brew it at home, you’ll probably spend less than $96 (one can per month), saving $853. If you stop again on the way home, double that figure.

Lunch: The average cost of going out to lunch is $11. If you prepare your lunch at home and carry it to work, it will cost about $4 – and probably be better for you. At $7 per day difference, you’ll save $1,820 per year.

Movies: The average cost of a movie ticket is $8.53, so for a couple to go out, that’s $17.06. Then of course you need popcorn – a tub of which is another $8 or so, and two soft drinks at $6 each. That means one trip to the movies will cost in excess of $37 – and that’s if you don’t take the kids along. (And if you have small children and don’t take them – how much do you pay the sitter?) Compare this to $3 or so to rent a movie, plus something under $5 for soft drinks and popcorn enough for a whole family.

If you’ve been going once a week, saving $29 per week adds up to $1,508 a year.

Lottery tickets: These come in prices from $1 to $20 each, but if you’re spending $5 twice a week, and winning $5 back once a month, there’s another $460 you could be saving toward that new home.

Making the changes outlined above would save you at least $6,549 per year, and I’m guessing that if you think about it, you’ll find more ways. Money that drains out of your pocket $1, $5, or $10 at a time really adds up, especially when it’s an every-day “leak.”

Mike Clover

Mortgage Banker

Homewood Mortgage,LLC

O: 469.621.8484

C: 469.438.5587

F: 972.767.4370

18170 Dallas Parkway

Ste. 304

Dallas, TX 75287