Coldwell Banker's New Ad Campaign

I like the new Coldwell Banker ad campaign.  Of course I am biased, but I am very happy that CB is such an innovative company when it comes to technology.  Being a tech-geek myself, I like the fact that they have iPhone optimized sites and are actively Twittering and using other social media.  

Now that they have firmly planted themselves in the social media space, it is only right that they let people know they are there by way of their traditional advertising.  

Here's the ad: 

Did You Know? Credit Scores Fact vs. Fiction: Installation 2

Round Two of information provided to me by my contact at Coldwell Banker Mortgage to assist buyers in separating the FACT from the FICTION in credit scores and lending... 

Fiction: The credit score on my consumer credit report should be the same as the one the mortgage company returns.


Fact: When mortgage companies order a credit report the credit bureau will include a “mortgage adjustment” that is factored into your score. These adjustments are not controlled by the mortgage lender, but by the credit bureaus themselves. This adjustment takes a your past mortgage history into account and will reflect accordingly in the credit scores returned to the lender. For example, a customer with an extensive clean history of mortgage payments will have a different adjustment than a customer who has never had a mortgage in the past.

Fiction: There is nothing I can do to fix errors on my credit report.


Fact: If you have errors on your credit report you have the ability to file a dispute with the credit bureau to correct the erroneous information. You can go to www.annualcreditreport.com and obtain a free copy of your credit report. You will need to submit documentation supporting your claim that the information reported is erroneous, and the credit bureau has 30 days to confirm the information and update the repositories.

Fiction: My score will drop if I apply for new credit.


Fact: If it does, it probably won't drop much. If you apply for several credit cards within a short period of time, multiple requests for your credit report information (called “inquiries”) will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score as stated above.

Fiction: A poor score will haunt me forever.

Fact: Just the opposite is true. A score is a “snapshot” of your risk at a particular point in time. It changes as new information is added to your bank and credit bureau files. Scores change gradually as you change the way you handle credit. For example, past credit problems impact your score less as time passes. Lenders request a current score when you submit a credit application, so they have the most recent information available. Therefore by taking the time to improve your score, will put you in better position to get approved for a loan.

Tips for Buying Foreclosures

This is a handy introduction into the landscape of buying foreclosure properties for investors.  

Here is a little snippet from the article that sets up who this is aimed at: 

“This is a market where somebody who does their homework can save significant money on a home purchase and create a nice investment opportunity on a longer-term basis,” said Rick Sharga of RealtyTrac.com.

This comes from CNBC's 2009 Spring Real Estate Guide.  It is a pretty good collection of pieces on how-to's and do's and don'ts.  Suprisingly, even the guide to selling on your own is pretty even handed (which you aren't going to hear very often from a REALTOR :-) ) giving you reasons why you may want to do it yourself, but also reasons why you may need advice of an expert.  

There are a few other notable items in the Guide worth checking out, too, such as: 

• Vacation Homes Still Work for Some
  
• Wading Through The Mortgage Maze

Did you know? Mortgage Facts & Fiction

This information was provided to me by my contact at Coldwell Banker Mortgage Company.  I found it interesting because I had heard the same fallacy, so I figured I would pass this along in order to edify more people:

Fiction: "Inquiries from multiple mortgage lenders while shopping for a loan will lower my credit score."

Fact: Looking for a mortgage or an auto loan may cause multiple lenders to request your credit report, even though you’re only looking for one loan. To compensate for this, the score ignores all mortgage and auto inquiries made in the 30 days prior to scoring. If you find a loan within 30 days, the inquiries won't affect your score while you're rate shopping. In addition, the score looks on your credit report for auto or mortgage inquiries older than 30 days. If it finds some, it counts all those inquiries that fall in a typical shopping period as just one inquiry when determining your score.

Fiction: Paying old collection accounts will improve my credit score. 


Fact: In most cases, paying an old collection account will not increase your credit score. It is more likely to decrease a customer’s credit score because a collection is viewed the same, whether it is paid or unpaid. The difference is the last activity date. The older the date, the less impact it has on the current credit score. If the old collection is paid, the last activity date is updated and now the account is viewed as recent and will have a negative impact on the overall credit rating. More weight is given to the recent accounts on the report. 

Fiction: Credit scores can change only once per month or every 30 days. 


Fact: Just the opposite is true. Each creditor reports information to each credit bureau at different times of the month. This will cause the information and potentially the credit scores to change on a daily basis. For example, American Express may report to Experian on the 1st of the month, Equifax on the 15th and Transunion on the 25th. Thorough review of the credit report is needed to determine what caused the score to change from report to report. (It usually is not the inquiries)

Truth about home fixture warranties

Here is the latest report from Inmann News that has some helpful information: 

Some are vague about what's covered, what's not
By Paul Bianchina, Inman News

Warranties are something we see on a myriad of home improvement products, from roofing and siding to faucets and electrical outlets. They're intended to give the consumer some specific legal recourse should the product fail to perform properly, as well as some general psychological peace of mind.

But how valuable are warranties? Do they cover what you think they do, and can you rely on them to really protect your financial investment in the event of a problem? The truth is: probably not as much as you'd hoped.

READ, READ, READ

The first thing you need to do with any warranty is to request and read a copy of it before you make your purchase. Some warranties are very simple and straightforward, and others are lengthy, convoluted and fraught with legalese. Nevertheless, you need to read it to the best of your ability.

One of the first things you will notice about virtually any warranty is that it is tied to very specific steps that must be followed by the person installing the product, whether it's you or someone you hire. Failure to follow the steps exactly will typically result in the warranty being void, and this is a common pitfall that many homeowners -- indeed, many contractors -- fail to take seriously enough.

A careful examination of the warranties offered by many building material manufacturers will turn up language that states, in one form or another, that the warranty applies only to structures on which the product has been installed, finished and maintained in accordance with the manufacturer's specific instructions, and that deviation from those installation, finishing and maintenance instructions will render the warranty null and void.

Some of the things you need to be very aware of that can void a warranty include:

• Inadequate protection during storage, which includes how the product is protected from ground moisture, dirt and dust, weather, impact, and other specifics.
  
• Improper spacing. This would apply to products such as siding or shingles, where you have left gaps that are consistently too large or too small.
  
• Improper fastening, which includes the gauge, length and style of the fasteners you use, the depth of their penetration into the wood, the spacing between the fasteners, and even the amount of air pressure used with air-driven fasteners.
  
• Finishing. In the case of siding and some other materials, it must be finished (painted, stained or otherwise protected from the elements) within a certain time frame, using approved materials and approved application methods.
  
• Maintenance. Many products also tell you what steps you need to take to maintain them properly, and failure to follow those steps can also void the warranty.
  

WHAT DO WARRANTIES COVER?

What a specific warranty covers varies from manufacturer to manufacturer, and can even vary within the product lines offered by the same manufacturer. Some of the more important things to be aware of are:

• What is the term of the warranty? Some warranties last only 30 or 60 days, while others are for the expected life of the product, which might be 50 years or more.
  
• Is there depreciation? Longer-term warranties, such as those on roofing, are typically depreciated based on the product's expected life span. For example, if you have a composition shingle with a 30-year warranty and it fails after 15 years on the roof, it's common that the replacement value will be depreciated by 50 percent.
  
• Does it cover labor? Many warranties will cover the cost of the product itself, but not the cost of the labor to remove and dispose of the failed material and install the replacement. Some will cover removal but not replacement, or vice versa.
  
• What steps are required? If that new faucet fails as soon as you install it, can you take it back to the store for an immediate replacement, or does the manufacturer insist that it be sent back to their facility for possible repair?
  
• With any warranty, do your homework. Obtain and read a copy, and if you have questions about it you need to discuss it with your dealer or your contractor. If they are vague or unsure about answering your questions, ask for the phone number of the manufacturer, and call them directly.