1. Not knowing your credit score - The lower your credit score, the chances decrease to negotiate a lower rate an lower fee. Know your FICO score. If your score needs improvement, you can pay down revolving credit balances which can increase your score considerably.
2. Buying a car before a house - Any time customers open a new credit account, auto loan, credit card, etc... their credit score could drop. If there is a new credit in between the approval and the closing, the lender could disqualify the loan.
3. Skimping on a home inspection - Buying a pig in a polk can have serious negative effects at a later date. Many homes purchased in today's market are distressed properties and should be contingent upon an inspection.
4. Not having proper representation - Everyone involved in the transaction (agent, bankers, brokers) have a vested interest in your transaction. You should make sure you have someone that represents just you.
5. No budgeting for insurance - Most homebuyers just don't understand insurance, what it covers, or the various types of coverage. Standard policies cover theft, wind, fire, lightning, and hail. There is no coverage for earthquakes, flooding, or neglect in maintenance. You should also explore a rider for additional insurance.
If you are looking for a home in today's market, we can help. Give us a call at 763-784-3400 or visit our website at www.contractorscapital.com.
Monday, May 3, 2010
Tuesday, April 6, 2010
Credit Check
4 things that can hurt your credit
Consumers are feeling the pinch right now through the reduced availability of credit. If you are in the market for a new home, a car or even a cell phone, it is more important than ever to make sure your credit is in great shape.
Whenever you apply for any loan, an apartment or even a job, your credit is scrutinized to asses if you are a "good credit risk." If you have a low credit score or a rocky credit history, you will see it in higher interest rates that can cost thousands of dollars more than someone with good credit.
The first step to keeping your credit in good shape is to check your credit report. Some things to look for include:
* Errors on your report
Credit report errors are surprisingly common and can take months to correct. Regularly monitoring your credit report can help you catch mistakes early.
* Debt-to-credit ratio
If you are maxing out your credit cards, lenders take this as a sign that you are borrowing as much as, or more than you can handle. Keep your balances at least 50 percent below your credit limit.
* Late payments
Making all your payments on time means you avoid a black mark on your credit report and can save you hundreds of dollars in late fees.
* Old accounts
Consider leaving old accounts open even if you don't use them much anymore. The length of your credit history is a factor in your credit score so it pays to keep accounts open.
We can assist you with building a home, obtaining a loan for either construction or the final purchase of a home. Give us a call at 763-784-3400 or visit our website at http://www.contractorscapital.com/ for more information.
Consumers are feeling the pinch right now through the reduced availability of credit. If you are in the market for a new home, a car or even a cell phone, it is more important than ever to make sure your credit is in great shape.
Whenever you apply for any loan, an apartment or even a job, your credit is scrutinized to asses if you are a "good credit risk." If you have a low credit score or a rocky credit history, you will see it in higher interest rates that can cost thousands of dollars more than someone with good credit.
The first step to keeping your credit in good shape is to check your credit report. Some things to look for include:
* Errors on your report
Credit report errors are surprisingly common and can take months to correct. Regularly monitoring your credit report can help you catch mistakes early.
* Debt-to-credit ratio
If you are maxing out your credit cards, lenders take this as a sign that you are borrowing as much as, or more than you can handle. Keep your balances at least 50 percent below your credit limit.
* Late payments
Making all your payments on time means you avoid a black mark on your credit report and can save you hundreds of dollars in late fees.
* Old accounts
Consider leaving old accounts open even if you don't use them much anymore. The length of your credit history is a factor in your credit score so it pays to keep accounts open.
We can assist you with building a home, obtaining a loan for either construction or the final purchase of a home. Give us a call at 763-784-3400 or visit our website at http://www.contractorscapital.com/ for more information.
Going Green
A typical household could trim a utility bill by $500 or more and keep nearly 5,000 pounds of greenhouse gases out of the atmosphere.
$9.50—switch from 100-watt incandescent bulbs to compact fluorescent
$39—reduce shower times by 2 minutes
$40—install a low-flow shower head
$37—turn down the heat 1 degree in the winter
$111—turn it down 3 degrees
$14—raise thermostat 1 degree in summer
$42—raise it 3 degrees
$50—turn off unneeded appliances
$55—turn down water heater from 140 degrees to 120 degrees
$11—close your fireplace flue
$5—pay your bills online
$65—use your dishwasher’s air-dry setting
$57—wash clothes on the cold setting
Source—My Emissions Exchange.
It is still a great time to buy. We can assist you with building a home, obtaining a loan for either construction or the final purchase of a home. Give us a call at 763-784-3400 or visit our website at http://www.contractorscapital.com/ for more information.
$9.50—switch from 100-watt incandescent bulbs to compact fluorescent
$39—reduce shower times by 2 minutes
$40—install a low-flow shower head
$37—turn down the heat 1 degree in the winter
$111—turn it down 3 degrees
$14—raise thermostat 1 degree in summer
$42—raise it 3 degrees
$50—turn off unneeded appliances
$55—turn down water heater from 140 degrees to 120 degrees
$11—close your fireplace flue
$5—pay your bills online
$65—use your dishwasher’s air-dry setting
$57—wash clothes on the cold setting
Source—My Emissions Exchange.
It is still a great time to buy. We can assist you with building a home, obtaining a loan for either construction or the final purchase of a home. Give us a call at 763-784-3400 or visit our website at http://www.contractorscapital.com/ for more information.
Wednesday, March 10, 2010
How to Insure Your Home
Homeowners insurance protects your home, its contents, and, indirectly, your other assets in the event of fires, theft, accidents or other disasters.
A standard homeowner’s policy will protect you from things like fires and fallen trees. Notice how we didn’t mention floods, windstorms or earthquakes—those events are specifically not covered by a standard policy and require additional coverage. Homeowners in some areas of the country may be required by their mortgage company to carry these kinds of policies.
A standard policy will also protect your possessions from said disasters as well as theft. But a standard policy is not a blank check: there’s a limit to how much you’ll be compensated. If you have specific items of value, such as jewelry or artwork, you can pay a little extra each year to insure them for their full replacement value.
Now, if someone is on your property and slips and falls and sprains his ankle, he might sue you for his medical expenses. Homeowners insurance covers your liabilities in this situation as well. And like the examples mentioned above, you can pay more for extra coverage. Homeowners insurance isn’t required by law, like auto insurance. But mortgage companies usually require you to obtain a policy before they’ll give you a loan.
Your home-insurance policy should cover enough to entirely rebuild and furnish your home were it wiped off the map. Ask a home builder to walk through your home and give you an estimate of what it would take to rebuild; that figure should be the basis for how much replacement coverage you’ll need. Be sure to point out any unique and/or expensive details that would add to the replacement cost.
Once you’ve determined the replacement cost of your home, you’ll need to know what kind of coverage you want. There are a few key terms here:
• Guaranteed Replacement Cost Coverage– This means that the insurer will pay for the rebuilding of your home no matter the cost. These policies are hard to find these days.
• Extended Replacement Coverage– Many insurers offer coverage that caps the payout at around 125% of your home’s insured value.
• Inflation Guarantee – This feature makes sure that your home’s appraised value stays current with the marketplace.
If you get a reliable appraisal, extended replacement coverage and an inflation guarantee, you should be in good shape. The appraisal provides a realistic starting figure and the inflation guarantee makes sure that your home’s price stays current. The 125% coverage means that, even if construction prices outpace inflation, they probably didn’t outpace it by 25%, so you should have enough money for whatever work you need done.
One last thing: The law requires you to have flood insurance if you live in an officially recognized high-risk area. To find out your flood risk and to find plans (which are offered by the government), go to [1] floodsmart.gov.
When it comes to protecting your possessions, you may want more coverage than your standard policy allows. If you have anything of exceptional value (a family heirloom, a piece of art, jewelry, etc.), you should insure it separately. Insurers will charge extra for this coverage (something like an extra $10 on your monthly premium per $1,000 of value insured), but it pays to be covered.
Also keep in mind that there are two different kinds of coverage when it comes to personal articles. There’s “actual cash value” and there’s “replacement cost.” You want coverage for replacement cost. Actual Cash Value Insurance is what you’d get if you sold your valuable today — a lower amount than what you initially paid. Replacement Cost Insurance pays you the amount of money you’d need to buy a brand-new item to replace your old one.-
For more information, contact us at www.contractorscapital.com or call at
763-784-3400.
A standard homeowner’s policy will protect you from things like fires and fallen trees. Notice how we didn’t mention floods, windstorms or earthquakes—those events are specifically not covered by a standard policy and require additional coverage. Homeowners in some areas of the country may be required by their mortgage company to carry these kinds of policies.
A standard policy will also protect your possessions from said disasters as well as theft. But a standard policy is not a blank check: there’s a limit to how much you’ll be compensated. If you have specific items of value, such as jewelry or artwork, you can pay a little extra each year to insure them for their full replacement value.
Now, if someone is on your property and slips and falls and sprains his ankle, he might sue you for his medical expenses. Homeowners insurance covers your liabilities in this situation as well. And like the examples mentioned above, you can pay more for extra coverage. Homeowners insurance isn’t required by law, like auto insurance. But mortgage companies usually require you to obtain a policy before they’ll give you a loan.
Your home-insurance policy should cover enough to entirely rebuild and furnish your home were it wiped off the map. Ask a home builder to walk through your home and give you an estimate of what it would take to rebuild; that figure should be the basis for how much replacement coverage you’ll need. Be sure to point out any unique and/or expensive details that would add to the replacement cost.
Once you’ve determined the replacement cost of your home, you’ll need to know what kind of coverage you want. There are a few key terms here:
• Guaranteed Replacement Cost Coverage– This means that the insurer will pay for the rebuilding of your home no matter the cost. These policies are hard to find these days.
• Extended Replacement Coverage– Many insurers offer coverage that caps the payout at around 125% of your home’s insured value.
• Inflation Guarantee – This feature makes sure that your home’s appraised value stays current with the marketplace.
If you get a reliable appraisal, extended replacement coverage and an inflation guarantee, you should be in good shape. The appraisal provides a realistic starting figure and the inflation guarantee makes sure that your home’s price stays current. The 125% coverage means that, even if construction prices outpace inflation, they probably didn’t outpace it by 25%, so you should have enough money for whatever work you need done.
One last thing: The law requires you to have flood insurance if you live in an officially recognized high-risk area. To find out your flood risk and to find plans (which are offered by the government), go to [1] floodsmart.gov.
When it comes to protecting your possessions, you may want more coverage than your standard policy allows. If you have anything of exceptional value (a family heirloom, a piece of art, jewelry, etc.), you should insure it separately. Insurers will charge extra for this coverage (something like an extra $10 on your monthly premium per $1,000 of value insured), but it pays to be covered.
Also keep in mind that there are two different kinds of coverage when it comes to personal articles. There’s “actual cash value” and there’s “replacement cost.” You want coverage for replacement cost. Actual Cash Value Insurance is what you’d get if you sold your valuable today — a lower amount than what you initially paid. Replacement Cost Insurance pays you the amount of money you’d need to buy a brand-new item to replace your old one.-
For more information, contact us at www.contractorscapital.com or call at
763-784-3400.
Monday, March 1, 2010
Spring Maintenance on Your Home
Follow the maintenance tips below to keep your home running smoothly!
Check and clean your gutters and downspouts
Check your basement or crawl space for leakage
Change your furnace and A/C filter
Adjust your thermostat for seasonal temperature changes
Check and repair any window screen damage
Check ground settling after the spring thaw
Adjust humidifier for seasonal temperature change
Open valve to outside hose connection
Turn on sprinkler system to check for leaks
Trim shrubs that weren’t trimmed in fall
Got a leak? Windows old? Build a new home! Give us a call - we can help! 763-784-3400 or visit our website at www.contractorscapital.com
Check and clean your gutters and downspouts
Check your basement or crawl space for leakage
Change your furnace and A/C filter
Adjust your thermostat for seasonal temperature changes
Check and repair any window screen damage
Check ground settling after the spring thaw
Adjust humidifier for seasonal temperature change
Open valve to outside hose connection
Turn on sprinkler system to check for leaks
Trim shrubs that weren’t trimmed in fall
Got a leak? Windows old? Build a new home! Give us a call - we can help! 763-784-3400 or visit our website at www.contractorscapital.com
Thursday, February 25, 2010
Mortgage and Construction Loans
Avoid the "bait and switch". The mortgage lending business is notorious for baiting and switching, which is when a loan officer or advertisement offers you one thing and then tries to sells you something else. Remember that if it sounds too good to be true, it probably is. Make sure you always get your quote in writing.
Typical signs of baiting and switching are obvious, some basic examples are:
o Over the phone, you are offered a much lower rate than any other quote and once you've sent in your application the rate you were quoted has all of a sudden vanished.
o You are offered a construction loan with no points and no loan fees. What you are not told is that you are paying for it with a higher interest rate and the costs are built into the loan.
o You are told that you will not have any payments while you're building. What you're not told is that construction loans often have an option of "interest reserves" and the payments are added to the loan amount.
For upfront information on a mortgage loan or a construction loan, give us a call at 763-784-3400 or visit our website at www.contractorscapital.com.
Typical signs of baiting and switching are obvious, some basic examples are:
o Over the phone, you are offered a much lower rate than any other quote and once you've sent in your application the rate you were quoted has all of a sudden vanished.
o You are offered a construction loan with no points and no loan fees. What you are not told is that you are paying for it with a higher interest rate and the costs are built into the loan.
o You are told that you will not have any payments while you're building. What you're not told is that construction loans often have an option of "interest reserves" and the payments are added to the loan amount.
For upfront information on a mortgage loan or a construction loan, give us a call at 763-784-3400 or visit our website at www.contractorscapital.com.
American Dream?
When will the nation’s property values begin to appreciate again? This is the $1MM question that real estate professionals, investors, and mortgage professionals would like to know. The truth is nobody can accurately predict the return of the real estate market. Like everyone else, we can’t predict the end of this crisis either, but what we can do is tell you what will have to happen to facilitate that change. The answer is quite simple: America must reinvest in herself once again.
Think back, or read a history book, about how families in the ’40s and ’50s used to buy homes. Young couples lived with Mom and Dad during the “courtship” prior to getting married, until they had saved 20% to put down on their “dream home”. They made an investment in America, (i.e. the American dream). In the years that followed we have devalued that investment in lieu of credit and the easy access to it. Property values rose artificially and our nation became addicted to credit.
The value of the dollar has been demolished due to the same principle. When we place value in assets based on their ability to be easily bought and sold versus the value that has been invested in the asset, we devalue its worth. For example, two years ago I could have bought an $600,000 house (and I assure you that I cannot afford a house that expensive). The owner of that asset (the $600k house) placed value on his asset based on the availability of buyers like me who could buy the home. The problem is, this homeowner probably had less than 5% invested in the home. Where do you think that homeowner is today?
Had he put 20% down on his home, he would then own a valuable asset in which he has a real investment. This outlay of cash forces him to buy and sell his home in the same manner he would move an $800k investment around in the stock market – very carefully. Thus, the home has REAL value. However, having bought the home with little or no money down, the asset became disposable and so follows the real estate market.
So, as I said earlier, I cannot predict when the real estate market will bounce back, but I can tell you what needs to happen before it does. America needs to reinvest in herself by getting back to solid buying and selling principles. This strengthens home values, which encourages investors who employ builders who employ carpenters, painters, real estate agents, loan officers and so on. America was built on the “American Dream”.
Call us if we can help you with your "American Dream" at 763-784-3400 or visit our website at www.contractorscapital.com.
Think back, or read a history book, about how families in the ’40s and ’50s used to buy homes. Young couples lived with Mom and Dad during the “courtship” prior to getting married, until they had saved 20% to put down on their “dream home”. They made an investment in America, (i.e. the American dream). In the years that followed we have devalued that investment in lieu of credit and the easy access to it. Property values rose artificially and our nation became addicted to credit.
The value of the dollar has been demolished due to the same principle. When we place value in assets based on their ability to be easily bought and sold versus the value that has been invested in the asset, we devalue its worth. For example, two years ago I could have bought an $600,000 house (and I assure you that I cannot afford a house that expensive). The owner of that asset (the $600k house) placed value on his asset based on the availability of buyers like me who could buy the home. The problem is, this homeowner probably had less than 5% invested in the home. Where do you think that homeowner is today?
Had he put 20% down on his home, he would then own a valuable asset in which he has a real investment. This outlay of cash forces him to buy and sell his home in the same manner he would move an $800k investment around in the stock market – very carefully. Thus, the home has REAL value. However, having bought the home with little or no money down, the asset became disposable and so follows the real estate market.
So, as I said earlier, I cannot predict when the real estate market will bounce back, but I can tell you what needs to happen before it does. America needs to reinvest in herself by getting back to solid buying and selling principles. This strengthens home values, which encourages investors who employ builders who employ carpenters, painters, real estate agents, loan officers and so on. America was built on the “American Dream”.
Call us if we can help you with your "American Dream" at 763-784-3400 or visit our website at www.contractorscapital.com.
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