If you are thinking about applying for a mortgage any time soon, it is imperative that you know what your credit score is. If you don’t know, find out. If you’re not sure if your score is good enough, call Ruth Schoenherr and discuss it. If it’s not good enough, make your best effort to fix it.

If you sign up for a credit repair service, generally they prepare an initial report identifying your issues and prepare a plan for you to fix it. They usually cost between $80 and $120 a month. Usually, you are expected to make the calls and do the work yourself. The process is described below.

Many individuals find themselves grappling with the challenges of a less-than-perfect credit history. The good news is that credit repair is not an insurmountable task. In this comprehensive guide, we will explore the intricacies of credit repair, demystify common myths, and provide actionable steps to help you embark on the journey to improving your credit score.

Understanding Your Credit Score: Before delving into the world of credit repair, it’s crucial to understand what a credit score is and how it is calculated. Your credit score is a numerical representation of your creditworthiness, ranging from 300 to 850. The higher your score, the more favorable terms you can secure when applying for credit.

Factors Affecting Your Credit Score: Several factors contribute to your credit score, and understanding them is the first step towards effective credit repair. These factors include:

1. Payment History: Timely payment of bills and debts is a significant factor in determining your credit score.
2. Credit Utilization: The ratio of your credit card balances to your credit limits impacts your score.
3. Length of Credit History: The longer your credit history, the better it reflects your financial behavior.
4. Types of Credit: A mix of different types of credit (credit cards, installment loans, etc.) can positively influence your score.
5. New Credit: Opening multiple new credit accounts in a short period may have a negative impact.

Common Credit Repair Myths: Before we delve into practical strategies for credit repair, let’s dispel some common myths:

1. Myth: Credit repair is only for people with bad credit. Reality: Anyone can benefit from credit repair, even those with good credit, as it can lead to improved terms on future credit applications.
2. Myth: Credit repair is a quick fix. Reality: Credit repair is a gradual process that requires patience and consistency.
3. Myth: Closing unused credit accounts improves your score. Reality: Closing accounts can negatively impact your credit utilization and, consequently, your score.

Practical Steps for Credit Repair:

1. Obtain Your Credit Reports: Request free annual credit reports from the major credit bureaus (Equifax, Experian, and TransUnion) to review your credit history.
2. Identify and Dispute Inaccuracies: Scrutinize your credit reports for inaccuracies and dispute any discrepancies with the respective credit bureau.
3. Develop a Budget: Create a realistic budget to ensure timely payments and responsible credit usage.
4. Pay Bills on Time: Timely payments have a significant impact on your credit score. Set up reminders or automatic payments to avoid late payments.
5. Reduce Credit Card Balances: Work towards reducing credit card balances to improve your credit utilization ratio.
6. Negotiate with Creditors: If you’re facing financial challenges, consider negotiating with creditors for more favorable terms or payment plans.

Conclusion: Credit repair is a journey that requires dedication and strategic planning. By understanding the factors influencing your credit score and adopting responsible financial habits, you can take control of your creditworthiness. Remember, there are no quick fixes, but with persistence and the right approach, you can pave the way for a healthier credit profile and a brighter financial future.

If you are purchasing a home or looking for a new mortgage, call Ruth. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Ruth Schoenherr NMLS Florida Mortgage Lender License 336647

Innovative Mortgage NMLS 250769

In the journey of life, we often find ourselves entwined with a significant other, sharing not only our joys and sorrows but also our financial responsibilities. While love may conquer all, the practicalities of financial management can sometimes present challenges, especially when it comes to applying for a loan. One burning question that many couples face is whether a spouse’s bad credit can cast a shadow over their joint financial endeavors. Let’s explore the intricacies of this issue and shed light on how it might affect your loan application.

Understanding Joint Finances: When a couple decides to combine their lives, it’s not uncommon for them to merge their financial resources as well. Joint bank accounts, shared expenses, and collaborative financial goals become the norm. However, the question of creditworthiness may arise when the need for a loan arises.

Credit Scores and Loan Applications: In the world of loans, credit scores play a pivotal role. Lenders use credit scores to assess an individual’s creditworthiness, which ultimately influences the approval or denial of a loan application. The higher the credit score, the lower the perceived risk for the lender.

Impact of a Spouse’s Bad Credit: If your spouse has a less-than-ideal credit history, it can potentially impact your joint loan application. When you apply for a loan together, lenders typically consider both individuals’ credit scores. A spouse with a lower credit score could contribute to a higher overall risk assessment, affecting the loan terms offered by the lender.

Options for Managing the Impact:

1. Attempt to Repair your credit: There are companies who can help you repair your credit. They offer a number of useful services. Let us recommend some legitimate companies to you so you know you are getting a good value.
2. Apply for a Loan Individually: If your spouse’s credit history is a concern, one option is to apply for the loan individually. This way, only your credit score is taken into consideration, potentially securing more favorable terms.
3. Seek Professional Advice: Ruth Schoenherr has been in business a number of years. She can provide valuable insights into managing joint finances and navigating the complexities of loan applications. She can offer tailored solutions based on your specific situation. Since she represents a number of different lenders, she may have a program that can be suited to your specific situation.

Communication is Key: Regardless of the approach you choose, open and honest communication with your spouse is essential. Discuss your financial goals, challenges, and strategies for improving credit scores if needed. Working together as a team can strengthen your financial foundation and help you overcome obstacles.

Conclusion: While a spouse’s bad credit can pose challenges when applying for a loan, it doesn’t necessarily mean the end of your financial dreams. Understanding your options, communicating openly, and seeking professional guidance can empower you to make informed decisions and navigate the loan application process successfully. Remember, facing financial challenges together can strengthen the bond between you and your spouse, reinforcing your commitment to a shared future.

If you are purchasing a home or looking for a new mortgage, call Ruth. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Ruth Schoenherr NMLS Florida Mortgage Lender License 336647

Innovative Mortgage NMLS 250769

Mortgage rates are high now. You may be thinking that you should wait to buy that dream home. However, a decision to wait could cost you in the long run.

The most important factor is the cost of the home.

We can’t predict the future. But, you watch the news. Do you think that home prices are continuing to increase?

We have seen in the news that inflation has been trending downwards. Is it possible that mortgage rates will go down in the future?

If you buy your house now, and refinance later, and housing prices continue to go up, you will have saved a bunch of money, and your monthly payment will be lower than they would have been.

If you are purchasing a home or looking for a new mortgage, call Ruth. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Ruth Schoenherr NMLS Florida Mortgage Lender License 336647

Innovative Mortgage NMLS 250769

Making the Right Choice for You

Choosing the right mortgage is a critical decision in your homebuying journey. When it comes to mortgages, you’ll often find yourself debating between two primary options: fixed-rate mortgages and adjustable-rate mortgages (ARMs). Each has its advantages and disadvantages, and the choice you make can significantly impact your financial stability. In this blog, we’ll explore the key differences between fixed-rate and adjustable-rate mortgages to help you make an informed decision.

Fixed-Rate Mortgages: Consistency and Peace of Mind

Fixed rate vs adjustable rate mortgage pros and cons.

A fixed-rate mortgage is like a financial security blanket. With this type of mortgage, the interest rate remains constant throughout the life of the loan. Here’s why it might be the right choice for you:

1. Predictable Monthly Payments: The most significant advantage of a fixed-rate mortgage is predictability. Your monthly principal and interest payments remain the same for the entire loan term, making budgeting a breeze.
2. Protection Against Rising Rates: In a rising interest rate environment, a fixed-rate mortgage shields you from higher monthly payments, offering stability and peace of mind.
3. Long-Term Planning: If you plan to stay in your home for an extended period, a fixed-rate mortgage allows you to lock in a stable interest rate for 15, 20, or 30 years, enabling better long-term financial planning.
4. Minimal Financial Risk: You won’t have to worry about potential payment shock if interest rates surge, making it an ideal choice for risk-averse individuals.

Adjustable-Rate Mortgages (ARMs): Flexibility and Initial Savings

An adjustable-rate mortgage, on the other hand, offers initial interest rates lower than fixed-rate mortgages. However, these rates are subject to change over time. Here’s why an ARM might be appealing to you:

1. Lower Initial Rates: ARMs often come with lower initial interest rates, which can lead to more affordable initial monthly payments. This is especially beneficial if you plan to sell your home or refinance before the interest rate adjustments occur.
2. Short-Term Ownership: If you anticipate selling your home within a few years, an ARM might be a cost-effective choice, as you can take advantage of the lower initial rate without worrying about future adjustments.
3. Rate Caps: ARMs typically come with rate caps that limit how much your interest rate can increase in a given period. These caps provide some protection against drastic rate hikes.
4. Interest-Only Options: Some ARMs offer interest-only payment options for a certain period, which can be beneficial if you want lower initial payments and are confident about future income growth.

Factors to Consider When Choosing

When deciding between a fixed-rate and an adjustable-rate mortgage, consider the following factors:

1. Your Financial Goals: Are you looking for long-term stability or short-term savings? Your financial goals will influence your choice.
2. Current Market Conditions: Pay attention to current interest rates and the economic outlook, as these factors can impact the cost of borrowing.
3. How Long You Plan to Stay: If you intend to stay in your home for many years, a fixed-rate mortgage might be the better option. If you’re planning a short-term stay, an ARM could save you money.
4. Risk Tolerance: Assess your comfort level with financial risk. If you prefer consistent payments and are risk-averse, a fixed-rate mortgage is a safer choice.

Conclusion

The choice between a fixed-rate mortgage and an adjustable-rate mortgage is not one-size-fits-all. It depends on your unique financial situation, goals, and risk tolerance. It’s crucial to consult with a mortgage professional to explore the best option for your specific circumstances. By understanding the differences between these two mortgage types, you can make an informed decision that aligns with your homeownership journey and financial aspirations. Remember that there’s no universally “right” choice – the right mortgage for you is the one that suits your individual needs and preferences.

If you are purchasing a home or looking for a new mortgage, call Ruth. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Ruth Schoenherr NMLS Florida Mortgage Lender License 336647

Innovative Mortgage NMLS 250769

When it comes to buying a home, securing a favorable mortgage rate can make a world of difference in your financial future. One of the key factors lenders consider when determining your mortgage rate is your credit score. A higher credit score often translates to a lower interest rate, which can save you thousands of dollars over the life of your loan. If you’re looking to buy a home and want to improve your credit score for a better mortgage rate, you’re in the right place. In this blog post, we’ll discuss actionable steps you can take to boost your credit score.

Check Your Credit Report

The first step in improving your credit score is to obtain a copy of your credit report from all three major credit bureaus: Equifax, Experian, and TransUnion. You are entitled to one free credit report from each bureau every 12 months through AnnualCreditReport.com. Review your reports for any errors or discrepancies. If you find inaccuracies, dispute them promptly to have them corrected. These errors could be dragging down your score, and fixing them can provide an immediate boost.

Pay Your Bills on Time

One of the most significant factors affecting your credit score is your payment history. Late payments can have a detrimental impact on your score. Make sure to pay all your bills, including credit cards, loans, and utility bills, on time. Setting up automatic payments or reminders can help ensure you never miss a due date.

Reduce Credit Card Balances

Your credit utilization ratio, which is the amount of credit you’re using compared to your total credit limit, plays a crucial role in your credit score. Aim to keep your credit card balances low, ideally below 30% of your available credit limit. High balances can negatively affect your score, so consider paying down your credit card debt to improve your utilization ratio.

Avoid Opening New Credit Accounts

Every time you apply for credit, whether it’s a new credit card or a loan, a hard inquiry is made on your credit report. Multiple hard inquiries in a short period can lower your credit score. Try to avoid opening new credit accounts while you’re preparing to buy a home, as it can impact your credit score and raise concerns for lenders.

Keep Old Accounts Open

The length of your credit history is another factor that influences your credit score. Closing old credit card accounts can shorten your credit history, potentially lowering your score. Even if you no longer use a particular credit card, consider keeping it open to maintain a longer credit history.

Diversify Your Credit Mix

Having a mix of different types of credit accounts, such as credit cards, installment loans, and mortgages, can positively impact your credit score. Lenders like to see that you can manage various types of credit responsibly. If you don’t already have a diverse credit mix, consider adding different types of credit gradually.

Be Patient

Improving your credit score takes time, and there are no quick fixes. It’s essential to be patient and consistent with your efforts. Over time, as you implement these strategies and maintain good credit habits, you will see your credit score rise.

Conclusion

A better mortgage rate can save you a significant amount of money when buying a home, and improving your credit score is a crucial step in securing that lower rate. By checking your credit report, paying bills on time, reducing credit card balances, and following the other steps outlined in this blog post, you can boost your credit score and increase your chances of obtaining a favorable mortgage rate. Remember that the journey to a better credit score requires patience and discipline, but the financial benefits are well worth the effort.

If you are purchasing a home or looking for a new mortgage, call Ruth. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Ruth Schoenherr NMLS Florida Mortgage Lender License 336647

Innovative Mortgage NMLS 250769

Getting a mortgage with a low down payment can be a great option for those who want to become homeowners but don’t have a large amount of savings. There are several programs available that can help make homeownership more accessible.

Here are a few options:

1. FHA Loans: The Federal Housing Administration (FHA) offers loans with a low down payment requirement of as little as 3.5% of the purchase price. These loans are popular among first-time homebuyers and those with lower credit scores although you don’t have to be a first-time homebuyer to qualify..
2. VA Loans: If you are a veteran or an active-duty service member, you may qualify for a VA loan. These loans are guaranteed by the Department of Veterans Affairs and often require no down payment at all.
3. USDA Loans: The United States Department of Agriculture (USDA) offers loans for rural and suburban homebuyers with low to moderate incomes. These loans require no down payment and have flexible credit requirements.
4. Conventional Loans with Private Mortgage Insurance (PMI): Conventional loans typically require a down payment of at least 3%. However, if you can’t afford a 20% down payment, you can opt for a conventional loan with PMI. PMI is an insurance policy that protects the lender in case of default, allowing you to put down a lower down payment.
5. State and Local Programs: Many states and local governments offer down payment assistance programs to help first-time homebuyers. These programs provide grants, loans, or tax credits to help cover the down payment and closing costs.

When applying for a mortgage with a low down payment, it’s important to consider your financial situation and choose the program that best suits your needs. It’s also a good idea to work with a knowledgeable mortgage lender who can guide you through the process and help you find the best options available to you.

If you are purchasing a home or looking for a new mortgage, call Ruth. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Are you pre-qualified or pre-approved for a loan?

Before you begin to shop for a new home, you should set aside some time with me so we can figure out how much you can afford. This will put you in a better position as a buyer. That’s when it is important to understand the distinction between being pre-qualified for a loan and pre-approved for a loan. The difference between the two terms will be crucial when you decide to make an offer on a house.

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What Is a Mortgage Preapproval?

Mortgage preapproval is the process of determining how much money you can borrow to buy a home. Lenders look at your income, assets and credit score and determine what loans you could be approved for, how much you can borrow and what your interest rate might be.

Without your credit report, your lender can only give you rough estimates. This means the approval amount, loan program and interest rate might change as the lender gets more information. A prequalification is different – it is an initial review of your finances, you usually don’t need to supply documentation (like bank statements and pay stubs) during this stage.

Preapprovals for a mortgage are more in-depth than pre-qualifications. When you get preapproved, you may be required to provide information or documents like bank statements and pay stubs to prove your income and the funds you’re using to get the loan. A preapproval will also require a hard credit check so your lender can get your credit score and see how much other debt you have.

To get pre-qualified for a loan, I will collect information about your debt, income, and assets. We’ll look at your credit profile and assess goals for a down payment and get an idea of different loan programs that would work for you.

If you are purchasing a home or looking for a new mortgage, call Ruth. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Ruth Schoenherr NMLS 336647 Innovative Mortgage NMLS 250769

Every so often, you need to take a look at your credit report. If you find an error, there are things that you should do.

1. The first thing to do is get a copy of your credit report from each of the three major CRAs: Equifax, http://www.equifax.com; Experian, http://www.experian.com; and TransUnion, http://www.tuc.com.

2 In a written letter, tell the CRA what information you believe to be inaccurate. Include copies (not originals) of documents that support your position. Provide your complete name and address, identify each item in your report you dispute, and request deletion or correction. Be sure to make copies of your dispute letter and enclosures.

3. Send your letter by certified mail, return receipt requested, so you can document what the CRA received.
4. The FCRA mandates that all CRAs reinvestigate the items in question — usually within 30 days — unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the credit card company. After the credit card company receives notice of a dispute from the CRA, it must investigate, review all relevant information and report the results to the CRA.
5. If the disputed information is found to be inaccurate, the credit card company must notify all nationwide CRAs so they can correct this information in your file. Disputed information that cannot be verified must be deleted from your file.
6. When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the credit card company verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the credit card company.
7. In addition to the CRA, you should also write to the credit card company about the error. Again, include copies of documents that support your dispute. If you are correct — meaning the information you disputed is found inaccurate — the credit card company cannot use it again. Further, at your request, the CRA must send notices of corrections to anyone who received your report in the past six months.

If you are purchasing a home or looking for a new mortgage, call Ruth. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Ruth Schoenherr NMLS 336647 Innovative Mortgage NMLS 250769

property insurance

Senate Bill 2-A requires every residential policy to have flood insurance as a condition of having coverage from Citizens, but they’re implementing it in phases. For those in a FEMA-designated flood zone, new policy holders had to get flood insurance by April 1 and any policy renewals have until July 1, 2023.

Effective 1/1/24  all Citizens policy holders in ANY flood zone above $600k in dwelling must obtain flood insurance

1/1/25  500k and higher
1/1/26  400k and higher
1/1/27 300k and higher
1/1/28  200k and higher

Florida passed a new law in December seeking to stabilize the property insurance market.

The new law will create a $1 billion reinsurance fund, put disincentives in place to prevent frivolous lawsuits and force some customers to leave a state-created insurer of last resort, Citizens Property Insurance, for a private insurer, even if the policy costs more.

‘This is going to make a huge, huge difference,’ the governor says. One of the key goals of the legislation is to keep the claims process from ending up being settled in courtrooms, a problem that DeSantis said drives up legal costs for insurers.

“This bill reins in the incentive to litigate,” DeSantis said before signing the bill in Fort Myers, an area devastated by Hurricane Ian in September. “This is going to make a huge, huge difference.”

Florida has struggled to keep the insurance market healthy since 1992 when Hurricane Andrew flattened Homestead, wiped out some insurance carriers and left many remaining companies fearful to write or renew policies in Florida. Risks for carriers have also been growing as climate change increases the strength of hurricanes and the intensity of rainstorms.

But beyond being prone to hurricanes, DeSantis said Florida needs to reduce legal costs for insurers.

Are flood insurance rates going up in Florida?

Some parts of Florida are seeing rate increases of more than 200%. Dante Weston is an attorney and insurance expert and said the new data shows more than 80% of homeowners in Florida will see increased flood insurance premiums.

Hurricane Ian was one of the most costly hurricanes of all time, causing nearly $113 billion dollars in damage and 152 deaths. This obviously was a major component in the increased insurance rates.

If you have a mortgage, your property insurance premium is most likely included in your mortgage payment. If you are purchasing a home or looking for a new mortgage, call Ruth. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Ruth Schoenherr NMLS 336647 Innovative Mortgage NMLS 250769

One of the factors that people consider when picking a house to live in is the nearby school system. How do you think we stack up?

Here’s the bad news. Florida ranks 47^th in the nation for teacher pay. However, on the other side of the coin, people want to live in Florida, and are moving here in record numbers. That makes us competitive with other states that offer higher compensation. The fact that we have no state income tax helps to tip the scale in our favor also.

Here’s some good news. Governor Ron DeSantis is working to get pay raises for Florida teachers.  He announced $800 million in this year’s budget to raise minimum teacher pay and increase veteran teacher salaries in Florida. The $800 million is a $250 million increase over last year’s funding, and brings Florida’s investments in teacher pay to greater than $2 billion since the 2020 Legislative Session.

According to the Florida Department of Education website: “Over the last three years, we have worked hard to increase teacher pay,” said Governor Ron DeSantis. “We have invested more than $2 billion in teacher pay, and with rising inflation, this could not come at a better time. This will help Florida to recruit and retain great teachers.”

“Governor DeSantis is unquestionably the most pro-teacher governor in the nation. He has challenged us to elevate and celebrate the teaching profession by listening to the needs of teachers,” said Commissioner of Education Richard Corcoran. “We’ve put words into action by replacing Common Core, eliminating the Florida Standards Assessment, and working with our close friends in the Florida Legislature to secure $800 million in state funding to provide teachers a well-deserved pay increase. I’m excited for Florida’s teachers and am grateful for Governor DeSantis’ vision and his relentless pursuit to improve the teaching profession.”

Many teachers are dedicated to their profession, but can have a difficult time purchasing a home, paying student loans, and providing for their families. This situation is getting even more difficult for teachers across the nation with rising inflation. The increases in teacher pay will provide critical help to teachers in Florida during a critical time where inflation is rising rapidly across the country.

We think you’ll find the school systems just fine in this area. And I’m sure you’ll find that your kids want to be here. But if you’re going to buy a house, the first thing you will need is a new mortgage.

If you have questions about a loan, call Ruth. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.