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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