Credit Report Inquiries and Your Right to Privacy

Have you ever noticed that the moment you apply for a mortgage loan, car loan or credit card, you suddenly start to receive dozens of offers in the mail?  And if you are not on the Do Not Call list, you will receive countless telephone solicitations…and they all sound too good to be true.  That’s because they ARE too good to be true.  When you apply for a mortgage loan at Mortgage Resource Group in Cincinnati, we are required to check your credit through all three credit repositories:  Equifax, Experian and Trans Union.  We then use your middle credit score to determine the type of loan terms you qualify for, etc.  We protect your right to financial privacy and we do not share or sell your personal information to ANYONE before, during or after your loan process.  Equifax has a different view of their right to share or SELL your personal information on the general market.  They believe that once any inquiry is made on your credit, you become a customer of theirs, and they have the right to sell your interest in a mortgage loan to any mortgage company out there willing to pay their price.  And why not?  Equifax has all the pertinent information at their disposal.  They know what your credit score is, and your pay history on all of your accounts.  I believe that this is a violation of your right to privacy.  It’s not like you can choose not to have an Equifax inquiry when you apply for a mortgage.  We have to use all three scores.  We pay equifax for your credit report so that we can help you make a sound decision regarding your mortgage financing.  While it’s fine to explore financing options with more than one company, it’s not fine to have your phone ringing at all hours of the day and night, and your mailbox stuffed with incredible offers designed to make you pick up the phone and call.  Usually those offers are of the Bait and Switch variety and are just wasting your time.  If you have put your phone number on the Do Not Call list, remember that it expires after 5 years.  So if your phone is suddenly ringing again with telemarketers, your 5 years may be up.  Just go back to the website and re-enter your home and cell numbers, as cell phones numbers are also being shared with telemarketing companies now.  It may take a full 30 days for the annoying calls to end, but eventually they will.  You can also go to your local post office and get on the Do Not Mail list, which will effectively end the three inch thick catalog of advertisements stuffed in your mailbox every day.  Plus, think of all the trees that will get to live to produce more oxygen for our world!  Don’t forget to listen to The Mortgage Resource Hour this Sunday on 550AM at 1PM, or livestream on the internet at 55krc.com.  You never know what kind of helpful tips you might pick up while you are out doing your Sunday errands or driving home from church! Your Mortgage Consultant For Life….Jennifer Hammiel

Changes in the Mortgage Industry

At Mortage Resource Group in Cincinnati, Ohio, I sit at my desk and pour over the constant stream of new mortgage guidelines, that often appear to be changing with the wind.  Having been in the mortgage business for over 16 years, I have seen many programs come and go.  Shifts in power in our federal government always have an impact on regulated industries such as my own, and we deal with the changes as best we can, and try to help our clients muddle through the loan process.  The big  banks have gotten a BIG BAILOUT from the Feds in recent past, and they are about to get another “stimulous package” designed to line their coffers with yet more profits to increase the health of their balance sheets.  But at what cost to the consumer?  A Huge Cost, that’s what.  Every week on The Mortgage Resource Hour, a Live local radio talk show hosted by me and Barry Galinger, we discuss changes to the mortgage industry.  Tune in this coming Sunday at 1pm on 550AM locally in the Cincinnati Tri State area, or livestream directly from your computer at 55KRC.com.  We will be talking about how you will be affected by the new laws, which go into effect on April 1, 2011.  Don’t get caught by surprise.  It only takes a little knowledge of the situation to arm yourself with the power you need to make sound mortgage decisions.  Don’t leave the biggest financial decision of your life to a roll of the dice.  Check out www.mortgageresourcehour.com, and like our page on Facebook (The Mortgage Resource Hour).  You will get weekly blogs like this one dealing with specific issues of the day, along with podcasts and excerpts from the show that we feel will be helpful to you.

What your credit score says about you

Is it true that eventually every American will become just a number? Will you be judged solely by your credit score?  Well…yes.  If you are applying for any type of financing, that is.  Credit is not being handed out like candy anymore.  But, while it is true that credit guidelines were once too loose, and did cause a great portion of the financial difficulties our country is currently facing…it doesn’t tell the whole story. 

I do mortgages for a living…and I saw this crisis coming many years ago…nobody should be judged solely on their credit score…especially when wading through the process that leads you to the biggest financial commitment you will probably ever make…buying a house.  The ability to obtain financing for a mortgage must be based on more than just your credit score…it must also be based on your financial ability to repay the loan, and the collateral (the house) that secures the mortgage.  You may qualify “on paper”  for a mortgage payment of $1500.00.  But you have to ask yourself…with all the other expenses, needs and wants that I have, can I really afford it?  If the answer is no, adjust your expectations back to reality. 

Whether you are a first time homebuyer, or you want to refinance your existing home, all the rules have changed.  Don’t wait to have your credit checked or apply for a mortgage until after you find your dream home.  And another thing…ignore all the junk mail you get regarding mortgages…that’s all it is…junk.  Don’t compare your mortgage with your neighbor’s mortgage, because your situation is always unique and slightly different from anyone else’s.  If your credit score needs improvement, start now. Don’t wait until you need a loan, or want to buy that car or house.  And you don’t have to pay any company hundreds of dollars to help you fix your credit.  It will take the same amount of time and a lot less money to work on it yourself.  Don’t allow your credit score to hinder your chance to purchase a home or refinance the home you have now.  Your credit score is step one in the process of qualifying for a loan…if you don’t know what your credit report contains, and you want to be sure you will qualify for financing when you are ready, start now.

Dazed and Confused? You are not alone!

We keep hearing all this great news about the economy…housing sales are up, the economy is turning around, the recession is over…but what does it all really mean?  Congress and the current administration are painting a happy and unrealistic picture of the very near future of our economy.  Why?  Because even though the economy is better…unemployment rates have headed into the double digits in some markets.  Health care reform activists are on the war path, but at what cost to the taxpayer?   Housing sales may be up…but selling at lower prices…mortgage applications are up…but less people are qualifying for loans…rates are down…but credit guidelines are tightening…what are YOU going to do when you need to apply for credit?  Not just for a mortgage, but perhaps for a car loan, credit card, or other necessary financing.  Check back here daily for helpful tips on qualifying for a loan in this crazy economy, improving your credit score, and being informed about your local housing and mortgage market.  Credit guidelines change more often than the weather around here.  You need to stay informed if you want to have successful credit transactions in the future…and meet your personal financial goals.