Ever wonder how hard is it to get your free credit report with no strings attached? Well, it can be harder than you think. I’m sure you’ve heard or seen commercials that offer “free” credit reports. At first you think they’re a great idea and then months later you find out that you’ve been automatically enrolled in a “special program” and now owe hundreds of dollars!

One of the most frequent emails I send to friends and prospective clients in Eugene, Springfield, and all over Oregon is how to review their credit report for free. It’s always a good idea to preview your credit history before you apply for a mortgage, refinance, or consider buying a home.

I encourage everyone to review their credit report every four months. Here’s how to do it without signing up for some “special” service or even paying a dime!

First go to the website:
www.annualcreditreport.com

AnnualCreditReport.com is a centralized service for consumers to request free annual credit reports. It was created by the three nationwide consumer credit reporting companies – Equifax, Experian and TransUnion.”

• Look for the lady in a green sweater and Select Your State.

• The site will then ask you for some personal information. Be sure to put in the correct information.

Next:
After you answer some questions it will give you the option of selecting a credit reporting agency.

Now, here’s the key in being able to utilize this site once every four months. Each of the three agencies can only be reviewed every 12 months so you need to choose and keep track of the agencies you’ve used.

For Example:
After you review your report from Trans Union you won’t be able to access it from this site for one year. However, after four months you can go back to www.annualcreditreport.com and choose Experian or Equifax to get a fresh glimpse of your credit history.

• Choose the agency to use for this four month period.

• Select the option that doesn’t involve paying any money. It will ask you things like “do you want to have access to your report for 30 days”… Avoid Clicking These Options
  They charge a fee when you opt-in to them

• ***If you get to a screen where it’s clearly asking you for money, try to find an option like “go to the previous page.”***

Finally:
Once you get to your free report on the screen, you can copy and paste it to a Word document. You can also print it out if you wish.

No matter what, write down the reference number of your free credit report and write down the phone number for contacting the bureau if you have questions, or an error that needs to be corrected/disputed, etc…

After finding your credit report, you may want to find out your credit score. Stay tuned or Contact Me, Tom Freitag, for specific information on the best way to do that. If you pay for the score on Annual Credit Report, it isn’t always the same score you’d get when applying for a home loan.

So it’s time to buy a new home. You’re ready to sign the mortgage loan papers and put an offer down on a house in Eugene, Oregon, but have you really looked at all the options?

Until recently, some of the best values in home buying were only available to cash buyers. These values were often homes in a state of disrepair that needed additional remodel capital which most home buyers just couldn’t afford. With the FHA 203K mortgage loan, the average home buyer can now take advantage of these amazing and often overlooked homes, sometimes gaining “instant equity” of $20,000 to $60,000 or even more.

Right now I’m helping a client in Eugene, Oregon who’s buying a home that needs substantial work for less than $100,000. With the help of a FHA 203K mortgage loan we are able to finance a new roof, remodel of the interior, all new appliances, new electrical wiring, new paint, a new garage door, and much more. When the transformation of this house in Eugene is done, it will be virtually brand new. She will have a 30 year fixed mortgage loan in the mid 5% range and the mortgage will be about $180,000. The best part…The typical price for a similar home, in move-in condition, in that same area would be around $200,000. By utilizing the FHA 203K mortgage loan her house is now worth $200,000+, yet she only paid $180,000 for it! That’s over $20,000 of instant equity on her home!

While its greatest value is in buying a house that’s a diamond in the rough, an FHA 203K rehabilitation mortgage loan can be a smart move in many circumstances. For cases where there’s simply not enough equity in the home to finance needed repairs, the FHA 203K has you covered.  The FHA 203K mortgage loan allows a borrower to finance repairs based upon the value of the home after the repairs are completed. Funds are set aside and paid to the contractors as the work is being done. You can even use the FHA 203K program to remodel your current home!

Over the past few years, a typical approach for a remodel was to take out a fixed second mortgage or a Home Equity Line of Credit (HELOC) and then try to get all of the needed repairs done without running out of funds. The end result with this approach would often be an incomplete remodel and constant headaches and sleepless nights. The FHA 203K rehab loan allows a contingency reserve of 10% to 20% of the planned remodel costs.  The FHA 203K loans also allow you to start your project with low fixed interest rates and no need to refinance once repairs have been completed.

There are so many possibilities with the FHA 203K mortgage loan program.  For more information please contact Tom Freitag at Summit Funding, Inc. of Eugene, Oregon at www.TomFreitag.com. Our company has loan consultants in Oregon, California, Nevada, and Washington.

Whether it’s Lane County, Eugene, Springfield, or anywhere else, the home buyer benefits of the FHA 203K mortgage loan include:

• A low down payment where the seller is able to cover most or all loan closing costs. This means low out of pocket expense!
• A single mortgage loan with a great 30 or 15 year fixed rate.
• Ability to buy a home and remodel it how you want it right from the start – The sky’s the limit with what you can do (within reason of course).
• Instant positive equity position – This loan is not for “flippers” or investment (rental) property, but it’s nice to have a healthy equity position right from the start!

The seller can also benefit from the FHA 203K mortgage loan. It’s perfect for…

• The seller who has a home that is difficult to finance because of its condition or size. Just advertise  the FHA 203K mortgage loan to increase the number of legitimate buyers
• The seller who doesn’t have capital to finance major repairs before they sell their home.  This loan pays the seller before any repairs begin!
• The seller who doesn’t only want a cash buyer. The more buyers you can attract, the higher your home will sell for.

This loan is also available to first time home buyers.  Remember if you complete your purchase by November 30^th 2009 you might be eligible for the first time home buyer tax credit of up to $8,000!

Again, for more information or help with an FHA 203K mortgage loan please contact Tom Freitag at Summit Funding of Eugene, Oregon. Contact Tom Freitag

All Content ©2009 Tom Freitag. Visit Tom at www.TomFreitag.com.

With all time low mortgage interest rates, it’s very important to consider your individual situation. Refinancing now is definitely a smart move if you intend to stay in your home or keep it as a rental for many years. If your only goal is to save on interest charged over the course of the loan, here’s a $20,000+ tip: After refinancing, pay monthly what you now pay – the difference applied specifically to principal – you’ll have your loan paid off much quicker!

Clarify when you plan to sell your home. If you plan to sell your home in 2-5 years, refinancing might wind up being a loss. There are many different perspectives to help determine if your refinance makes sense. For example, if you’re 8 years into a 30 year mortgage, the largest component in reducing your minimum payment could be the re-amortizing of 22 years over 30 years. A face to face office visit with a mortgage professional that reviews a myriad of factors is extremely valuable. Advertising sometimes portrays refinancing a mortgage as a simple “no brainer”. In fact, a mortgage is one of the most serious financial commitments a person makes. If you have an Adjustable Rate Mortgage (ARM), consider refinancing regardless of how long you intend to own your home. Do you see yourself as a landlord, retaining your home as an investment property? Find out what renters are paying to see if market rent might cover your entire monthly payment. Tom Freitag, your mortgage professional can help you understand what constitutes a healthy investment property cash flow.

Set clear goals in your quest to refinance. Know what you want to accomplish. You should have 3 details ironed out before you refinance your mortgage.

1. Understand what you currently have (Some clients were sure they had a FIXED loan, only to find out it was an ARM. When will your current loan be paid off?).
2. Learn what is available to you (based on your current loan balance, home value, etc. options can be made clear – Loan programs & guidelines have become more restrictive. By consulting with Tom Freitag you’ll know what’s available to you specifically.).
3. Know how long you plan to own your property.

Meet with your mortgage professional to help you with steps one and two. It won’t cost you a penny and the advice is literally worth thousands.

Written by Tom Freitag, Loan Consultant – © 2009