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Contact Information |
Jeff McIlhenny Beacon Brokers Realty
Cell: 843-452-2953
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Local News |
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A more powerful mayor in Mt. P.?
MOUNT PLEASANT -- The town should have a full-time mayor with power like mayors in Charleston and North Charleston, Mayor Billy Swails said. The mayor will ask Town Council to approve a referendum on the issue. "I don't want anybody to think it is a power grab for me. It is working myself...
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Spoleto plans go smoothly
With her opening remarks on the organizational state of affairs, producer Nunally Kersh typified the lighthearted mood of the Spoleto Festival USA board's annual February meeting on Saturday. "Things are going eerily smoothly," said Kersh, representing the program committee. "It is all co...
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Krewe for a cause
They had the masks, the beads, the booze, the king and queen -- now all they need is a parade. The Krewe of Charleston brought a little taste of Mardi Gras to the Holy City Saturday night with its Royal Bal Masque at the Gaillard Municipal Auditorium.
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KNOW YOUR CREDIT!
Your credit is an important factor in the homebuying process. It directly affects the interest rate you will receive, the amount of your monthly payment, and the total amount of money spent over the life of the mortgage.
In light of the fallout from the subprime mess, banks and lenders have tightened up the standards for qualifying for a mortgage. It is more important than ever to have your credit in the best possible shape BEFORE trying to buy a house. Many people who received a mortgage a couple of years ago WOULD NOT QUALIFY TODAY!
Whether you are a first time homebuyer, move up buyer, or investor it is important to know where you stand before you decide to purchase. It is best to check your credit up to 6 months prior to purchasing to ensure you have time to correct any errors or improve any derogatory information. You want your credit to be in the best possible shape when it comes time to sign on the dotted line so you get the best mortgage options (such as 100% financing), the lowest rate, and the LOWEST MONTHLY PAYMENT.
It is important to know that you can order your credit report as often as you like, and it will not count against you. Whenever a creditor pulls your credit, it creates an inquiry, which counts anywhere from 2 points to 50 points against your score.
Experts recommend checking your credit at least once a year to make sure the information on your report is accurate. Over half of the credit reports contain inaccurate or false information. You are entitled to one free copy of their credit report from each of the three bureaus once a year.
We recommend obtaining one report first to check for errors. If there are any corrections to be made, or derogatory information to fix, you can always obtain the other free reports later to check progress. It is important to note the free reports do not come with their respective scores. This will cost extra--about $7 each.We recommend getting your score, as a report without the score won't let you know where you stand.These reports can be obtained at: www.annualcreditreport.com
BE SURE TO CHECK OUT OUR PREFERRED MORTGAGE NETWORK PAGE FOR LOAN OFFICERS THAT CAN HELP YOU WITH CREDIT/ CREDIT REPAIR AND PRE APPROVAL
WHAT MAKES UP YOUR CREDIT SCORE?
The Five Factors of Credit Scoring
MyFico.com has shared information regarding the credit scoring model. Consider these five factors when trying to improve your credit.
Payment History has a 35% impact. Paying debt on time and in full has a positive impact, and late payments, judgments and charge-offs have a negative impact.
Outstanding Credit Balances have a 30% impact. Debt ratio of outstanding balance to available credit is important. Keeping that below 50% is wise and below 30% even wiser. It is never a good idea to close an account; the debt ratio will go up and the number of seasoned lines will decrease. Pay outstanding debt down as close to zero as possible and evenly redistribute the remaining balance among the open lines. The increased interest incurred by moving a balance from a 0% card to a 23% card will be minimal relative to what the increased mortgage debt might be with a low credit score. Hitting the maximums of available credit can be very negative. It may be worth calling and asking the credit company to increase your available credit to lower the debt ratio, provided they can do so without a hard credit inquiry.
Length of Credit History has a 15% impact. The length of time a particular credit line has been opened is important. A seasoned borrower is stronger. Opening new credit cards will decrease the average length, and therefore hurt this portion of the score.
Type of Credit has a 10% impact. A mix of auto loans, credit cards and mortgages is positive, rather than a concentration in credit cards only. Careful, too, when getting credit at a store that is not a department store: the credit agencies frown on cards for more specialized stores where you’re likely to only make one purchase, as they seem to show desperation.
Inquirieshave a 10% impact. Hard inquiries for credit will negatively impact the score. Auto and mortgage inquiries receive special treatment and 20 inquiries can be made in a 14-day period for auto or mortgage and will be treated as only 1 inquiry. The maximum number of inquiries that will reduce the score is 10. Any inquiries beyond that in a six -month period will have no further impact on the borrower. Each hard inquiry can cost 2-50 points on a credit score.
LEARN HOW TO IMPROVE YOUR CREDIT SCORE
We have a free e-newsletter that contains several reports that explain credit reports, credit scoring, the important effect credit has, and ways to improve your credit score.
SIGN UP BELOW FOR OUR FREE CREDIT E-NEWSLETTER!!
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Last Updated ( Wednesday, 18 November 2009 )
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