What NOT to do with Your Credit Card!

For most of us, using a credit card has become a way of life.  To improve our credit score, or keep our credit score high, and keep those credit cards available remember what NOT TO DO!

1.  Seek a lower rate.  Although asking for a lower rate can be a good thing sometimes, keep in mind that when you ask for a lower rate, credit card issuers will often check your credit score or credit report or even question you about your financial situation.  Once you ask for a lower rate, companies will often treat you as if you are a new customer and check your most recent credit history.  If you have had any credit problems that show up in your credit report, this could actually cause your credit limit to be lowered or your account closed.  To prevent this, check your credit report before you ask the credit card company for a lower rate.

2.  Close your account.  If may seem that closing your account would improve your credit score, but it may not.  Credit bureaus use the information from these creditors to track your information and give you a score.  When there is too little information, it will actually cause your score to decrease.  Closing an account will not remove any information from your credit history right away.  It can take up to 7 years for delinquencies to get off your record.  In addition, credit bureaus use the information they get from your credit report to figure the "debt-to-limit ratio".  When you close an account that already has a zero balance it will cause your available credit to decrease which raises that debt-to-limit ratio.  Instead of closing the account you owe nothing on, consider reducing the balances on other credit card accounts.

Remember that a lower credit score makes it more difficult to get a loan for school, a car, or a mortgage.  Keep your credit score high and you will increase your chances of getting that much needed loan next time you want to buy a car or a home.

Read more from this Tulsa World article "Safety in the Credit Card Ring", here.


To buy or sell a home in the Tulsa, OK area, contact Kelly Howard of McGraw Realtors at 918-230-6341 or www.kellyhowardhomes.com

The "Norm" Changes for Mortgage Down-Payments!

Before the housing market crashed a few years ago, the "norm" used to be for buyers to save for years until they had enough money to put a down-payment on a home. Lenders are now taking us back in time as they change the requirements for a loan. If you are thinking about buying a home or are in the search for one, keep these things in mind:

• To receive low-rate mortgages or refinancing, lenders now require 10% down-payment or equity.
• If you can't put down 10% you still have the option for an FHA insured mortgage but you will still need 3.5% down-payment
• For no down-payment loans you need to qualify for a Department of Veterans Affairs Guaranteed Home Loan or a USDA Rural Housing Service Loan.
• A first mortgage of 80%, with a 5-10% down-payment, and the remaining 5-10% on a second-mortgage can, in many cases, be cheaper than getting the home loan with mortgage insurance.

Take advantage of extremely low mortgage rates and buy or sell your Tulsa, OK area home today. Contact Kelly Howard of McGraw Realtors at 918-230-6341 or www.kellyhowardhomes.com.

To read the original article in the Tulsa World, "Buyers Forced to Jump Through Hoops", click here.

Mortgage Rules Make it Harder to Qualify!

For some buyers, it will be more difficult to qualify for a loan for their new home. Why? Well, the mortgage market and the housing market have both changed a lot over the last couple of years. These changes have caused the rules for qualifying for a low-interest mortgage much more difficult.

In the past, many homeowners were passing on the fixed-rate mortgage and utilizing an adjustable rate mortgage. Bankrate says that for some homeowners, those not planning to stay in their home longer than 5 years, an adjustable rate mortgage was usually a good fit. For those that did plan on staying in their home for more than 5 years, a fixed rate mortgage was usually the right choice. With the changing economy and more difficult standards, however, things are changing.

Two of the new rules for mortgage qualification include:

• FICO scores must now be at least 740 in order to get the best rates, fees, and points.
• Homeowners using an FHA loan may now only spend 31% of their gross monthly income on their house payment, including principal, insurance, interest, taxes, and association fees.

Want a few tips to help improve your chances? First, check your FICO score regularly. If your score is lower than optimum, you can begin making changes to raise the score. If your score is already high, then you know you are doing the right things. Second, don't focus simply on interest rates when trying to get a loan. Remember that you have the option to pay discount points or change the type of loan. Third, always compare several different loan options to determine what the differences in cost really are. You can compare a loan with a higher interest rate with no points to a loan that is a lower rate but requires points to be paid. You can also compare your options with different companies. Finally, if you refinance your house after 5 years, don't get another 30 year loan. Get your loan amortized for the remaining period of your old loan.

To read the article from the Tulsa World, "Buyers Forced to Jump Through Hoops", visit this link.

To buy or sell your Tulsa, OK property, contact Kelly Howard of McGraw Realtors at 918-230-6341 or www.kellyhowardhomes.com.

How Do I Handle Fraud in Title Insurance?

Handling fraud in any situation is difficult. When it comes to title insurance, there are some things to keep in mind. First, let's define title insurance. Title Insurance is insurance that covers financial loss as a result of a defect in a title to real estate. Second, we need to know what period the insurance will cover. When we buy homeowner's or auto insurance, we are covering our home or auto from the time we purchase the policy until that point in the future that the coverage is canceled. With title insurance, though, it works in reverse. Title insurance covers from the moment you purchase your home and into the past. If you are sued after you close on the property, then the title insurance may not cover you. Finally, title insurance issues can be quite tricky. To ensure that you are covered for everything you need, talk to your attorney or your title company. You may even consider asking for extended coverage on your title insurance to cover you from your home purchase into the future.

If you have legal problems with your Oklahoma title, contact David Keesling at Richardson, Richardson, Boudreaux at 918-492-7674 or www.rrblawok.com.

To purchase title insurance or if you have questions about title insurance in Oklahoma, contact Ann Rollins of Closings of Tulsa at 918-493-2241 or www.closingsoftulsa.com

For all your Oklahoma home, auto, and life insurance needs and more, contact Mike Tedford, Tedford Insurance at 918-299-2345 or www.tedfordinsurance.com

Some can still qualify for a tax credit!!

The Tax Credit is Over Right?

The $8000 tax credit may still be available for you if you are a Veteran and you have served 90 days between 12-31-2008 and 5-1-2010. If that is you, then you can still utilize the tax credit. You must have a contract by 4-30-2011 and close by 6-30-2011.

If you live in the Tulsa, OK area and want more information on this tax credit extension for Veterans, contact Karen Heston of BOK Mortgage at 918-230-9432 or visit her website.

To buy a home in the Tulsa, OK area to take advantage of the tax credit extension for Veterans, contact The Baskin Real Estate Specialists at 918-258-2600 or www.darrylbaskin.com

New Area Code

By  now, probably most everyone in the 918 area has heard that we will be getting a new area code.  It will no longer be simply 918.  Now we will be adding area code 539.  The hardest part for most of us will be getting adjusted to using a 10 digit phone number every time we call.  To ensure that we are all ready for the new area code and 10 digit calling, the Oklahoma Corporation Commission has set up a practice period before the 10 digit calling is required.  Keep these dates in mind:

• July 7, 2010- You should have received a notice in the mail with dates and information about the new area code.
• August 7, 2010-  "Permissive Calling Period Begins"-  you can call using 7 or 10 digits.
• March 5, 2011- "Permissive Calling Period Ends"-  you will now be required to use the 10 digit number.
• April 1, 2011-  New 539 area codes will be available.  You can also request a 918 area code phone number if one is available.
• Spring 2012- 918 area code phone numbers are expected to run out.
  

The same long distance rules will apply for the 539 area code.  Simply put, if you can call a 918 area code now without long distance, you will be able to call 918 or 539 without long distance.  If you pay long distance to call 918, then you will also pay for the 539 area code

What NOT to do When Getting a Home Loan