Tidbits® - April 2006
Credit insight from Credit.com
Welcome to the Credit.com newsletter!
Each month, this free email newsletter delivers easy-to-read tidbits
about credit directly from personal finance experts. In this issue
we're focusing on recovering from credit problems. We'd love to
hear from you! Send an email to tidbits@credit.com with your credit
questions or comments anytime!
Quick Tip
Thinking about paying your taxes with your credit card? Think again.
IRS service providers charge a 2.49% convenience fee for paying with
credit cards. These fees might be refunded or discounted if you use
specific tax preparation systems. Investigate the costs and benefits
of using credit cards before deciding how to pay.
Home Buyer Boot Camp
You can save thousands on a home by doing a little research and preparation
before you buy. The mortgage industry is complicated, and it helps
a lot to know the drill. Credit.com's home buyer boot camp shows
you exactly what you need to know before becoming a homeowner.
Crunch the Numbers
Before you start shopping for a home, take a few minutes to evaluate
your options. Credit.com's free calculators can help you decide how
much you can afford, if it is better to rent or
own, what kind of mortgage is best, and how much you should save
for a down payment. You should also spend some time researching the
housing market in your area. Doing a bit of
research in advance can help save you time later. Start calculating
here -
http://www.credit.com/r/tidbits_home_mortgage/af=p40523&ag=article
Beef up your Credit
Your credit standing plays an important role in determining your
mortgage rates. You should check all three of your credit reports
and credit scores online a few months before you plan to buy a home.
Order your credit data online here - http://www.credit.com/r/fico_deluxe/af=p40523&ag=articleSimple
credit improvements, such as removing inaccurate information, can
turn into major interest rate savings. Click here to read more about
how to improve your credit - http://www.credit.com/r/tidbits_credit101/af=p40523&ag=article
Pre-Approval Push-Ups
The next step is to go through the "pre-approved" process
with a mortgage lender. Being pre-approved for a mortgage will help
you evaluate what you can afford to buy. It will also help your real
estate agent narrow his or her search and will help you
negotiate with a seller. Avoid "pre-qualification" letters
that are little more than an estimate. Remember: your pre-approval
is for the maximum amount you can potentially borrow. This is not
the amount that you should spend or that you can comfortably afford
each month. Shop for a mortgage online - http://www.credit.com/r/mortgage_pur/af=p40523&ag=article
Find a Good Sergeant
Working with a trusted real estate agent is a key part of the home
buying process. A good realtor can help you find the home of your
dreams at a price you can afford. You can search online for real
estate agents in your area. Plus, this service lets you compare experience,
commission rates, and more.
Pass the Home Inspection
Always arrange for a home inspection before you agree to buy a house.
Home inspectors will look at a home's heating, plumbing, and electrical
system as well as the foundation, floors, walls, ceiling, and basement.
At the end of their inspection, they provide you with a report of
their recommendations and repairs. A $200-400 inspection could potentially
unveil serious problems with the home that need to be fixed before
your purchase.
Now you're ready to become a home owner! These five home buying tips
should help you save a bundle and buy a home stress-free.
For Tidbits® Readers Only!
Download an exclusive article by mortgage expert Randy Johnson: "Almost
everything you know about the Mortgage Industry is Wrong."
This article reveals the common myths and scams involved in the home loan
industry!
Featured Article
ChoicePoint made headlines in 2005 with a data theft case involving
163,000 consumer records. In this article, our team of credit experts
asks ChoicePoint's Matt Furman about identity theft and security.
On the Blog
Equifax, Experian and TransUnion joined together to launch the VantageScore
last month. In this post, a former FICO insider goes beyond the hype
to explain what the VantageScore means to the industry and consumers.
Read more about VantageScores online here - http://www.creditbloggers.com/2006/03/vantagescorebeh.html
Quote of the Month
Money is a terrible master but an excellent servant.
- P.T. Barnum
Tidbits® - April 2006
About this newsletter
This information has been compiled and provided by Credit.com as
a service to the public. While our goal is to provide information
that will help consumers to manage their credit and debt, this information
should not be considered legal advice. Such advice must be specific
to the various circumstances of each person's
situation, and the general information provided on these pages should
not be used as a substitute for the advice of competent legal counsel.
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