Decoding Your Credit Report

Decoding Your Credit Report
Gain a better understanding of the factors that determine your eligibility for a loan.

The importance of financial responsibility is oftentimes overlooked in a materialistic nation comprised of excessive credit card offers, stretched lines of credit and the weakening dollar. In order to boost financial responsibility and provide more accurate information to credit bureaus, the company that calculates FICO scores has introduced a revamped credit scoring system. Many consumers will benefit, but others may face higher interest rates which may affect their monthly mortgage payments. Become one step closer to financial confidence by gaining a true understanding of the factors that influence your credit score.

Determining Your Credit Score
The restructured FICO credit scoring system, created by the Fair Isaac Corporation, is reported to go a bit easier on consumers who make an occasional mistake, yet really crack down on those who have multiple late payments and delinquencies. The weight put on certain factors, like late payments, have changed, while the benefit of authorized-user status has been dropped from the scoring system altogether. These changes may strengthen or slump your score by 20 or more points. Get to know the other factors that impact your credit score by reviewing the details below.

Length of Credit History
The longer your credit history, the better. Lenders like to see that you can manage your credit accounts responsibly over time. Now that credit scoring model ignores authorized-user accounts, it is important for those “piggybacking” to establish their own credit on a new and separate account. The omission of authorized-user accounts from future FICO credit reports will enable credit bureaus to protect lenders from those trying to misrepresent their credit risk.

Payment History
Payment history is one of the most influential factors in determining your credit score. As mentioned earlier, future FICO credit reports will forgive a few late payments, but if your account shows multiple late mortgage payments and delinquencies you may see your FICO score drop.

Contact Lakewood Capital Inc. at 888-516-7555 to discuss affordable mortgage products that will enable you to maintain excellent credit and payment histories.

Amount Owed
Another significant factor that is reviewed by the credit bureau is the amount owed on your credit accounts. Having a mortgage and several credit cards will not classify you as a high risk borrower, but owing a lot of money on several accounts will. Make an effort to keep all credit balances low so credit bureaus and lenders do not assume you've overextended your financial capacity.

New Credit
Opening several credit accounts over a short period of time may present you as a risk to lenders. This is especially so for those who do not have a long, established credit history. Try to keep new credit accounts to a minimum.

Credit in Use
Be aware of the types of credit accounts you use. This includes credit cards, financial accounts, retail credit accounts, installment loans and mortgage loans. The FICO scoring program analyzes all active credit profiles when determining your financial responsibility.

Remember, higher credit scores are the most desirable to lenders; but if yours takes a dip, no need to fret, you may still qualify for certain loans and mortgage products. Review your finances and work with Lakewood Capital Inc. so that you may better understand the role your credit score plays in your pursuit of an affordable mortgage product.

Keeping You Informed
Our mortgage professionals are dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at www.lakewoodcapitalinc.com, or call 888-516-7555 today, to learn more about the best loan options for your specific financial situation. Together we can obtain your ownership and financing goals.

avoid foreclosure

After a steady climb, home prices are now starting to come down nationwide, while the foreclosure rate is rising. According to RealtyTrac.com, a real estate Web site that tracks realty trends, more than a million foreclosures are expected to be recorded this year. Foreclosures in the United States were up 47 percent from March 2006 to March 2007 and one foreclosure was filed for every 92 households last year.

If you are one of the many homeowners nationwide who are having trouble making mortgage payments, below are a few tips to keep in mind as you fend off foreclosure.

Level with Your Lender
Your lender wants to avoid foreclosure just as much as you do! If you foreclose they lose money too. Often times a foreclosed home sells for less than the amount left on the mortgage, thus depriving you and your lender from any proceeds. Level with your lender; let them know your financial situation so that they can work with you to come up with a realistic alternative solution.

Consider Refinancing
The best solution to help avoid potential foreclosure is to refinance. Some homeowners are finding that they can actually switch to a fixed-rate loan for nearly the same interest rate as their adjustable. A fixed rate loan offers the same interest rate for the life of the loan so homeowners do not have to worry about rising rates.

Re-adjust Your Adjustable Rate Mortgage
Work out a modified payment plan with your mortgage broker. Agreeing to pay for delinquent payments over the course of your loan, or postponing a few payments until you have the funds, may help you avoid foreclosure.

Sell Your Property
If foreclosure is imminent and refinancing or modifying your loan is not an option, sell your home. It is better to prevent foreclosure and make a profit than it is to have your lender repossess the property. Though you may not get the full market price for your property, homeowners who sell have the benefit of not having to put a foreclosure on their credit report.

We're here to help
The sooner you fight foreclosure, the better. Contact Lakewood Capital Inc. today to learn more about avoiding foreclosure and your refinancing options.

Lakewood Capital Inc. is dedicated to keeping you up to date on the latest housing market news and making sure you receive the best mortgage options and rates. Call 888-516-7555 today to obtain custom loan options that will fit your current financial situation and help you obtain your ownership goals.

Should I Buy?

Tips for Buyers:

The market is in your favor, interest rates are low, more housing is available in select markets and sellers are offering great buyer incentives. Below are a few tips to help you successfully shop for new real estate.

• Take your time, but not too much time Yes, home prices are lower, but continuing to wait in hopes that the price will decline may backfire on buyers. If you find a property that you can't live without, make an offer and negotiate. Work with your real estate professional and suggest a price that reflects the local market and sales' price of the homes nearby.

• Watch out for competition The National Association of Realtors is expecting more than 6 million home sales in 2007, so don't think you are the only one out there shopping. People are constantly moving due to new job opportunities, marriage, divorces and more, so be prepared to make counter offers.

• Know your loan According to bankrate.com, interest rates are still very low. The average national interest rate on a 30-year fixed mortgage is about 5.79 percent. But, before you sign, be sure you fully understand your loan products. Work with your real estate and mortgage professionals to find the best option that will fit your financial situation.

Should I Sell?
Tips for Sellers:
The National Association of Mortgage Brokers predict a big selling boom this year, so be prepared for lots of competition. Below are a few tips that will help you successfully sell your real estate.

• Set a realistic asking price Over the past few years, home sellers have been able to get away with asking extremely high prices for their property in select markets. Now that the market has cooled, sellers may feel that they are getting the short end of the stick. According to Jim Gillespie, president and CEO of Coldwell Banker, sellers “need to realize that a home is where you live. It's not a lottery ticket,” it is a long term investment.

Work with your real estate professional and investigate the local real estate market and what the sellers within your community are asking for their property. Setting a proper asking price will obtain more offers.

• Fix up your home Making a great first impression is crucial. A few minor improvements and a fresh coat of neutral colored paint to visible exterior and interior parts of your home will help catch buyers' attention.

Keeping you informed…
Keeping you up to date on the latest housing market news and making sure you receive the best mortgage options and rates is our commitment to you. Call today at 888-516-7555, to obtain custom loan options that will fit your current financial situation and help you obtain your ownership goals.

Mortgage Terminology to Know Before Locking into a Loan

Below are a few mortgage terms and term details to know before locking into a loan.

Interest Rates
One of the first and most obvious terms to consider is the loan's interest rate. The interest rate is used to calculate your monthly payments and will determine how much you'll pay over the life of the loan. When comparing your mortgage options, take a close look at the annual percentage rate (APR). This figure combines the yearly interest costs and other fees charged by a lender over the life of the loan. Contact Lakewood Capital Inc. today at 888-516-7555 for an itemized list of what is included in each APR calculation for your new loan scenarios so that we can help you make a fair mortgage program comparison.

Points
Points are a type of pre-paid interest issued by the lender as an alternative to charging higher interest rates on the loan. One point is equal to one percent of the loan principal (the actual amount of your loan). If you opt to finance your home at a lower interest rate, the discount points are often paid at the time of closing. Consumers looking to live in their home for 10 to 20 years or longer may find that having more points with a lower interest rate will pay off over time whereas consumers who only plan to live in their home for 5 to 7 years may find a loan with a higher interest rate and fewer points the better option. Contact Lakewood Capital Inc. today to discuss different loan options available depending on the future plans for your new home or visit us online at http://lakewoodcapitalinc.com to view our current loan programs.

Closing Costs
Processing a mortgage application can be time consuming and costly. Typically this process takes anywhere from two to eight weeks. Avoid any mortgage closing delays by paying off unnecessary debt and checking your own credit file a few months before shopping for your mortgage.

Once you've shopped, compared and closed on your mortgage, expect to accrue additional lender fees. Closing costs, which may consist of title insurance costs, lender attorney fees, appraisal fees and more, can add thousands of dollars to your borrowing costs. When shopping for your lender, work with Lakewood Capital Inc. to collect good faith estimates (GFE) of lender closing costs and fees. Though lenders aren't required to provide a GFE of settlement charges before the borrower applies for the loan, federal law does require them to provide it three days after. Work closely with Lakewood Capital Inc., and take the time to scrutinize each estimate and define each closing cost fee so that you can make an informed decision.

The Loan Term
When shopping for a mortgage program that will fit your current and anticipated finances it is important to understand the number of years your loan will be active. Typically, mortgages with shorter terms carry higher monthly payments, while mortgages with longer terms spread payments out over the long life of the loan. Consumers who can afford the high monthly payments of a short term loan can save a lot of interest over time. Visit Lakewood Capital Inc. online at http://lakewoodcapitalinc.com or contact us directly at 888-516-7555 to help find the loan terms that will best fit your situation.

Prepayment Penalty
Loans with longer terms may seem affordable now, but what happens when your financial outlook changes and you'd like to refinance before the term is complete? Paying your loan off too early may result in a prepayment penalty or fine. To help determine if your current loan has any prepayment penalties, contact us today at 888-516-7555.

Having a general understanding of the mortgage business and what goes into a home loan will ensure that you properly compare your loan options. Working with an experienced mortgage broker enables you to shop thoroughly and determine the best mortgage program for your specific financial needs.

Keeping You Informed...
As a borrower, it is important to watch the market and stay in touch with Lakewood Capital Inc. who is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at http://lakewoodcapitalinc.com, or call today at 888-516-7555 to obtain custom loan options that will fit your current situation and help you obtain your ownership goals.