Credit Inquiries and What They Mean

We get many questions about how many points are affected by a credit inquiry. This is a simple yet difficult question to answer. Let me explain. There are two types of inquiries that a person must take into consideration. Here is a look at both of them:


Soft Inquiries: These do not affect your credit score and thus you don’t have to worry about them. They are reported on your credit report which confuses many people. A soft inquiry, or “soft pull” as we refer to them, are harmless in nature. There are many examples. Here are a few:

1) You have a credit card and you see they have pulled your credit. This is done by your credit card company to see if you have missed paying any of your other financial obligations. If you have been late, this allows them to increase the interest rate on your credit card per your agreement! Very few people notice this when they open a credit line because they don’t read the agreement.

I know what you’re saying: what does a late payment on some other line of credit have to do with my payment history on this credit card? Yes it’s unfair but non-the-less reality.

2) Pulling your free annual credit reports at www.annualcreditreport.com. Again, these don’t affect your score and is something everyone should do once a year. The credit reports are free but you have to pay a fee if you want the score.

3) Lending institutions regularly pull your credit for “pre-approved” offers. You know the main culprits here—usually credit card companies that want your business.

4) A few other examples are when you apply for employment or by landlords for renting or leasing an apartment or a house.

Hard Inquiries: Ok, these are the only ones you have to worry about. When I talk to clients I make it simple by telling them if you apply or initiate an application for a vehicle, credit card, line of credit or a mortgage etc… then it is factored into your credit score.

From my experience many people get into trouble with inquiries when they are making purchases at major department stores or other large businesses. At checkout the clerk tells them they can get “15% off this purchase” if they apply for a credit card or line of credit with that business. Do not do this! Department store cards are not rated the same as major credit cards and the interest rates are usually much higher!

Finally, keep in mind hard inquires stay on your report for two years but are most often only factored into your score if they are within the last six months.



From Thomas McGee

By the way T-minus 12 on the increased MIP. Call me so I can help you avoid it.

You can reach me at 615-777-4663 or via email at george.margrave@migonline.com

Good news and bad news

I have told you about how HUD is raising the MIP for their borrowers after April 1. Actually the final letter says April 9th now, so we got a few more days. So If you are thinking of buying, you would save money by getting the transaction far enough along to order the FHA case number and appraisal by then. The countdown is T minus 26 days


Now the good news. People that currently have an FHA loan that was closed prior to the first part of 2009 (date to be determined) will be able to get a considerably lower MIP for their refinance. This will mean a big savings. So if I ran the numbers for you and it didn’t look very good, it is about to get a lot better. But we have to wait until June 11.


You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com .  

Call on Us First

Over and over I receive calls from my clients and they start out with I talked to my bank and 1. They won’t return my calls or 2. They say they can’t close for 60 days or 3. They don’t do the kind of loan I want and so on and so on. I guess people call their bank because they think they will give them a better deal.


I can safely say that in most cases we can close much quicker, with a better rate and we do return our calls. In fact when you call us, a human answers and you don’t go into voice mail Hades.

I’m just saying. Call us first and save yourself some aggravation.  You can reach us at 615-777-4663 or via email at George.Margrave@migonline.com

TIPS FOR WORKING FROM HOME

Over 25 million people in the United States work from home and that number is increasing daily as companies and employers strive to decrease costs and increase productivity during these challenging economic times. While working at home is not feasible for every job or personality type, if your company allows it, it can be the perfect fit for some.

Here are five tips to make the most out of working from home:



1. Define your home office space

Make sure it is free from distractions and has a door you can close for privacy. This will also help differentiate between work and home life. Organize your home office as you would in your company's office space and spend a few minutes at the end of each day tidying up in preparation for the next business day.



2. Follow a dress code

Even if you are working from home, you should follow some sort of dress code. You don't have to don your best suit or anything that requires dry cleaning, but neither should you simply roll out of bed, and into your home office, still clad in pajamas or lounging clothes. Studies show that the way you dress affects your attitude and productivity.



3. Don't allow yourself to become "out of sight, out of mind"

Stay in contact with your boss and colleagues via email and phone. Remain accessible, communicate the successes and challenges associated with your projects to your boss, and collaborate with others as needed. Make certain that you stay on the radar and are always an essential contributor to the team.



4. Set regular office hours

Having regular office hours that include breaks and time for lunch will help you stay fresh, focused and allow you to accomplish your daily objectives. Try to resist the urge to go back into your office after your day has ended.



5. Get out and about

It is important to maintain ties with the outside world, so schedule a little time daily for outside activities. To avoid feeling isolated, take a brisk walk around the neighborhood during your break or schedule lunch with a client. This will help boost your energy level and maintain your positive outlook.


There are no hard and fast rules for working at home, as each individual and their situation will vary. Using these simple tips may help your home office become more efficient, effective and enjoyable, providing a win/win situation for both employer and employee!

~~From Foundation Title

PLEASE DON'T KEEP US A SECRET!

Thank you for confidence in our team

The George Margrave Team

Your Personal Mortgage Consultants

1-615-777-HOME (4663)

Fax Number 615-777-FAXX (3299)

www.mignashville.com