Site to See: Federal Reserve's 'Credit Reports and Credit Scores'

There's a new source of credit score and credit report information in town and it doesn't try to sell you related services or use content to generate ad revenues.

While the federal government would like to sell you on the idea that it's on your side -- and convincing you your government is working for you often does take a bit of a hard sell these days -- the Federal Reserve's new credit score and credit report web site is worth the taxpayer dollars that financed it.

"Consumer's Guide to Credit Reports and Credit Scores" is a compendium of advertisement-free credit report and credit score content that earns the Feds a high score.

Among independent sources of like information, perhaps only Consumer Reportsand AARP offer similarly robust, independent information without a sales pitch.

Along with practical answers to questions about credit reports, credit scores, and the importance of protecting your credit history, the Fed's free online guide explains the contents of your credit report, tells you how and when a credit score is used, and discusses the role of credit bureaus in collecting and sharing your credit history.

You need this information because it can make or break you when it comes time to get a mortgage, personal loan, insurance, a job, or whenever some entity needs to determine if you are creditworthy.

If you are approved for financial services, your report and score also determine home much it's going to cost you to obtain credit and other financial services.

The Fed's web site reveals how you can improve your credit score (and lower credit costs) and it offers step-by-step instructions to help you correct an error on your credit report -- not an uncommon job for credit-active consumers.

What's more, the site couldn't have gone live at a better time.

Lenders are squeezing consumers for the best creditworthiness ever, just as the Feds are rolling out two related landmark regulatory overhauls for the greatest consumer protections ever and long overdue finance industry scrutiny.

Your credit standing is at stake.

One is the "Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010"(known as "Wall Street Reform"), which is heavy in mortgage lending rules.

Good credit scores are crucial to landing a mortgage, getting your mortgage refinance and getting a home equity line of credit or second mortgage.

The other regulatory newbie is the "Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009" and the site is embedded with related information:"New Credit Card Rules Effective Aug. 22, 2010" and "New Credit Card Rules Effective Feb. 22, 2011" to keep you apprised.

The new credit card rules heap on new and extensive disclosures credit card issuers must reveal to you and they limit the fees, interest rates and other charges credit card issuers can levy.

But it's still up to you to do the right credit thing and the site offers some pointers.

For example, to improve your credit score:

• Get copies of your credit report -- then make sure information is correct. The site tells you how.

• Pay your bills on time.

• Understand how your credit score is determined. The new site tells you.

• Learn the legal steps to take to improve your credit report. Again, the information is online.

• Beware of credit-repair scams. The web site keeps you up to date.

Also to get the most out of your credit card, the site advises:

• Again, pay on time. Don't be a deadbeat.

• Stay below your credit limit. How much below? Visit the site.

• Avoid unnecessary fees. You'll learn online which ones to avoid and how to avoid them.

• Pay more than the minimum payment. The more the better.

• Keep tabs and watch for changes in your credit card terms. Credit card companies continue to look for loopholes so they can take you to the cleaners -- for a fee.

The site is new and fresh with the latest government regulations dovetailing into your responsibilities, indicating it's not just up to the law to make sure creditors do the right thing.

You pay taxes for this kinda information. Pay attention.

Bookmark it.

"Site To See" is a DeadlineNews Group series of reviews of content-heavy websites deemed unique, consumer-friendly, informative and easy to use.


Written by Broderick Perkins
December 30, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Mortgage Advice: What is an ARM?

For those new to real estate, there are a hundred different terms to learn. It can be overwhelming, but if you take it a term at a time, you'll be just fine.

In today's column we are going to examine the term "Adjustable Rate Mortgage," better known as an "ARM."

There are very few buyers in the market that can pay for a house outright with cash, thus avoiding a mortgage loan. If you are one of those lucky few, congratulations! You can quit reading. If you will need to finance your home purchase, however, let's continue.

An adjustable rate mortgage is just that. You will have an interest rate that is adjusted by your lender over the life of the loan, depending on a variety of factors. This means that while you may start out with a low monthly payment of $1,000 it could easily rise by hundreds, or even thousands, of dollars.

What are the benefits of an ARM?

You will generally enjoy a lower initial rate. Additionally, these loans may be available for shorter loan periods. This is especially beneficial to buyers who plan on staying in a home for only a short period of time.

ARMs can also be a good option for those who expect a rise in their salary in the future. If a raise is in your future, you may be able to rest easier knowing your rate could rise.

What are the risks of an ARM?

Your rate could rise so high you would be unable to make your payments. Be sure to ask if there are caps on your loan. Another risk is prepayment penalties. Some, but not all, adjustable rate mortgages will charge you to pay off your loan early.

If interest rates remain low, then the risk from an ARM remains low. But by signing an ARM loan, you are gambling that rates won't rise. If they do, you will see your payments rise as well.

For more detailed information be sure to speak with a mortgage lender.


Written by Carla Hill
December 29, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Pros and Cons of Condo Living

As purse strings tighten across the nation, and aging boomers enter retirement, many homeowners are making the decision to downsize. One popular choice among consumers is condominiums.

Here are some pros and cons of condo living to consider before you make a move.

Pro

1. Affordability: Are you looking to buy in a specific neighborhood? A condo allows many buyers to live in a desired location, even if they can't afford a single family home.

2. Amenities: Many condominiums come with access to such things as fitness centers, pools, and club houses.

3. Low Maintenance: While you are still responsible for the inside upkeep, outdoor and community features such as the roof, foundation, sidewalks, pool, and yard are covered by the association. This means no mowing the yard in 100 degree heat!

4. Reserve Fund: The condo association collects funds and keeps them in reserve for larger repairs and upgrades needed down the road. If your association keeps accurate surveys and books, this means there should be no surprise expenses.

5. Safety: Many condos offer gated parking, security guards, and even doormen.

Con

1. No Storage: You may find the rare condo that offers access to storage lockers, but condo living generally means no storage. If you have items that will need stored, be sure to include a storage facility rental fee into your budget.

2. Lack of Privacy: You will most likely have neighbors upstairs or down, or at the very least right next door. Some people love the sense of community this creates, though!

3. Monthly Association Fees: Nearly all condo units require you pay a monthly fee that pays for upkeep around the community. This means even if you own your condo free and clear, you are still responsible for monthly fees.

4. Rules: Who likes to follow the rules?! But kidding aside, many condos have strict rules about guests, noise, decor, and even subletting.

5. No yard: While some homeowners love the idea of no yardwork, others enjoy planting and growing. Most condos have very little outside space, apart from small patios.

Be sure to take these elements into consideration when deciding whether a condo is the home choice for you.


Written by Carla Hill
December 15, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

The X Factor--Why Making An Offer On A Home Should Be Based On Value To You

Some people love negotiating and others hate it. Regardless of which side of the sold sign you fall on, the best possible deal is what both buyer and seller want. Arriving at that price can be a lesson in frustration or even cause a complete shut-out.

So what's the X factor? In real estate, many buyers will shop around, find the home they really like, and then, rather than make an offer based on the value of the home to them (taking into consideration comp prices too), they'll say, "How much less should we offer off the asking price?" That's the X factor.

It's as though there's a magical X percentage that should automatically come off the listing price, regardless of what the asking price is. Many times the home is priced realistically––right in line with the comps. Buyers still want a deal and may want to start with a low-ball offer. Doing this can slow the process and not necessarily result in the outcome the buyer wants–the seller, feeling insulted, may halt any negotiation. If you're a serious buyer looking to purchase a home, it's a good idea to really heed the comps, and consider the value of the home to you–especially if the home you found meets your needs and desires.

Arriving at a purchase price for a home is very personal. What one buyer would pay, another might not for the very same home. Of course, there are appraisals to make sure that the home's price is in line with how much the bank is willing to lend the buyers. But the buyers' needs, the home's location, amenities, and its overall appeal, significantly factor into its value. On the other side, the need to sell, the timeline, and the pressures of needing the money out of the home to purchase another property affect the sellers' decision to accept an offer.

All kinds of negotiations begin when it comes to buying a home. Art, drapes, dishes, timelines... many different things are thrown into the negotiating process. If there's something you absolutely must have, of course, negotiate to get it. Just understand that negotiation means compromise, so both sides will give a little and ideally both sides will win–not by a winner takes all stance but rather by each side getting their specific needs met through a compromise process.

If as a buyer you have a list of your top priorities jotted down before the process begins, it will be easier to keep them straight and ensure that those items are secured when the negotiating begins. Then, if suddenly, a non-top priority pops up and is causing the process to stall or come to a halt, you can re-evaluate your top priorities to see if this is truly a must-have or if, perhaps, you've fallen into the "winner must-take all" syndrome of negotiating. A lot of times emotions get ignited and sometimes the negotiation process becomes more about winning than really getting what the party needs or wants. In the end, that will create an unsatisfactory sale or no sale at all.

Meeting in the middle can often be a good tool for buyers and sellers who can't come to an agreement on things like who will pay for the recording fee or certain cosmetic repairs. Splitting the costs can be less expensive than haggling for weeks, losing time, money, and maybe even the deal.

If you reach a really sticking point in negotiations, table it for a bit. Move on to other negotiations and see how many areas there are that both parties can come to agreement. Often the issue that was holding things up will then appear in a different light to both buyer and seller once the bigger items are resolved.


Written by Phoebe Chongchua
December 17, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Holiday Home Safety

The Holiday season is upon us, and for most it is a time full of joy, fellowship, and family. But the unexpected can and does happen.

So, from stopping theft to preventing fires, here are a few tips from the experts that can help keep your family safe this time of year.

Fire safety comes with the territory of the holidays. Trees and lighting can both be dangerous if not done correctly.

When selecting a real tree, be sure to buy one that is fresh. This means you should look for a fragrant tree that is a rich, deep green color. Also, the trunk should still be sticky with sap. Old trees are dry and brittle, and thus can be very flammable.

To keep your tree fresh throughout December, be sure to keep it immersed in water at all times. If needles start to fall off, give it more water!

For those with artificial trees, don't use electrical lights on metallic trees! And be sure to always turn your lights off you go to bed or leave the house.

Another fire hazard are those beautiful, twinkling lights. Every year's decorating should begin with checking light strands for cut or frayed wires.

Also, be sure that lights are used as marked. Indoor lights are for use inside only. Outdoor lights are kept outside.

Next, don't overload your outlets. Three sets of lights to an extension cord is plenty!

Another looming threat during the holidays is home burglary. Thieves prey on those that travel during this season.

To prevent thieves from targeting your home, you need to make your schedule unpredictable. That means keep your routine varied. Come home randomly for lunch one day a week. Leave for work at different times.

And to give the appearance that someone is always home, leave on a tv or use lights that are on timers.

Never post on social media that you'll be out of town or away from your house for extended periods of time.

And as added measures of security, consider installing an alarm system, or having a house-sitter stay at your home or check on it periodically during your vacation.

Use these tips to have a safe and merry holiday season!


Written by Carla Hill
November 25, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Tips for Lowing Your Homeowners Insurance Bill

In today's economy, every penny counts. How can you lower the cost of your homeowners insurance? Here are a few helpful tips.

1. Bundling: Many companies offer discounts for customers who buy multiple policies, such as your car, boat, and home insurance.

2. Deductibles: If you can afford a bit more of a financial burden should something happen at your home, then consider raising your deductible. This can easily save you on monthly costs.

3. Buy Early: You must obtain insurance in order to close your sale. Give yourself plenty of time for price comparisons and to ensure you'll have coverage in time for the sale.

4. It Never Hurts to Ask: Be sure to ask your insurer what discounts they have available. Certain groups and associations you may hold membership in receive discounts on their insurance!

5. Right Amount: Homeowners insurance is in effect to cover the replacement cost of items and structures on your property. This cost is, however, not the market value.

6. Safety Discounts: Many times installing safety extras such as smoke detectors and alarm systems can reduce your monthly bill!

7. Good Credit: Did you know that your credit score can affect your rates? According to Yahoo! Business & Finance, "In general, people with low credit scores and problems on their credit report end up paying more for insurance than people who don't have those kinds of issues in their lives."

And be sure to review your policy each year before renewal time to be sure that you policy still accurately coverages your property. Have you made changes or modifications that would require more or less coverage? Do all or even a few of these tips and you could see your insurance bill decrease!


Written by Carla Hill
December 14, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Pros and Cons of Condo Living

As purse strings tighten across the nation, and aging boomers enter retirement, many homeowners are making the decision to downsize. One popular choice among consumers is condominiums.

Here are some pros and cons of condo living to consider before you make a move.

Pro

1. Affordability: Are you looking to buy in a specific neighborhood? A condo allows many buyers to live in a desired location, even if they can't afford a single family home.

2. Amenities: Many condominiums come with access to such things as fitness centers, pools, and club houses.

3. Low Maintenance: While you are still responsible for the inside upkeep, outdoor and community features such as the roof, foundation, sidewalks, pool, and yard are covered by the association. This means no mowing the yard in 100 degree heat!

4. Reserve Fund: The condo association collects funds and keeps them in reserve for larger repairs and upgrades needed down the road. If your association keeps accurate surveys and books, this means there should be no surprise expenses.

5. Safety: Many condos offer gated parking, security guards, doormen, and even keyed entry.

Con

1. No Storage: You may find the rare condo that offers access to storage lockers, but condo living generally means no storage. If you have items that will need stored, be sure to include a storage facility rental fee into your budget.

2. Lack of Privacy: You will most likely have neighbors upstairs or down, or at the very least right next door. Some people love the sense of community this creates, though!

3. Monthly Association Fees: Nearly all condos units require you pay a monthly fee that pays for upkeep around the community. This means even if you own your condo free and clear, you are still responsible for monthly fees.

4. Rules: Who likes to follow the rules?! But kidding aside, many condos have strict rules about guests, noise, decor, and even subletting.

5. No yard: While some homeowners love the idea of no yardwork, others enjoy planting and growing. Most condos have very little outside space, apart from small patios.

Be sure to take these elements into consideration when deciding whether a condo is the home choice for you.


Written by Carla Hill
December 15, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com