7 Real Estate Hacks First-Time Homebuyers Should Know

1. Low Down Payment Options

While I would never argue against any home buyer having at least 20% to put down on a home for a down payment, the reality is that the vast majority of first-time homebuyers do not have it.  With the rents constantly rising in Las Vegas and cost of living increases, it can be difficult to save a large down payment and the additional cost required to buy a home. 

The good news that few buyers know about is that there are dozens of programs that exist to help first time home buyers with their down payment and some even assist with closing costs.  They include:

• Home is Possible – Down payment assistance for eligible homebuyers in Clark County
• Home At Last - Down payment assistance for eligible homebuyers in rural areas
• USDA – up to 100% financing in USDA Eligible areas 

2. New Construction & Foreclosure Homes Have Hidden Costs

New builds are a great option for some homebuyers but not for everyone and typically not necessarily for first time home buyers.  More often than not, home builders want large deposits based on the timeline to build and close – and then there are those other costs.  Most do not realize that items like flooring, countertops, drawer pulls, decorative wall paint, landscaping (among other items) are usually not included in the purchase of a new construction home.  Some builders will sell them to you; however, it will drive up the cost of the home and the mortgage.  As a result, most buyers end up spending thousands more after closing finishing the home exactly the way they want it.  Additionally, some items like hardwood floors can be less expensive to have installed after closing than at the time of purchase.

Foreclosure homes are also viewed as potentially huge savings but they have hidden costs as well.  Depending on how well the home was maintained prior to and since foreclosure, the home may need thousands in deferred maintenance repairs, which could make the property cost prohibitive.  Unless you are experienced in construction and will have thousands left over after the purchase, it may be wise to avoid bank owned homes.

3. Relocation Homes Can Be Better Deals Than Foreclosures

Properties offered by relocation companies are often more rare to find than foreclosures but a good relo property can be an even better deal than a comparable bank owned home.  One reason is that the home is usually maintained by the prior owner through the time the home was entered into a relocation program.  Another is that the relocation company usually has each home inspected, provides a lengthy report for public inspection, and then has repairs made.  While the report is a great starting point, it is in no way a replacement for your own home inspection.

A real estate agent can help you locate homes in relocation programs.

4. Ask for Closing Help

Keeping your cash in your hands instead of spending it on closing costs is usually smart ways to leverage your money.  Essentially, when a buyer is asking for a Seller to pay for their closing costs, they are asking for an added contribution from the seller or they will be paying a slightly higher price for the home.  The Seller is receiving a higher sales price but a lower net to them so be smart in your negotiations.

Here’s an example of why a Buyer might ask the Seller for closing help:

• The sales price of the property is $200,000 and the closing costs for the Buyer is approximately $6,000.
• The monthly principal and interest payment of a $200,000 mortgage at 30 years at 4.5% is $1013.37.
• Adding $6,000 to the mortgage amount brings the total to $206,000 and only increases the payment by $30.40 per month.

5. Buy Below Your Means and Make Extra Principal Payments

Owning a home doesn’t mean that you need to wait until you can afford a home that is four times the size you currently need and out of your budget.  Considering the current cost of rent in Las Vegas, purchasing the right home can save you hundreds of dollars per month over the equivalent rent.  While some buyers take this to mean they can purchase a much larger home with a payment more in line with what they are paying in rent, consider purchasing a home that is less than your current rent.  With the additional money, you can pay down debt, improve the property, save it for a rainy day or retirement, travel, etc.

Buying below your budget means that you can apply extra money to the principal balance of your mortgage each month to pay it down and save money in costly interest.  You could pay off a 30-year mortgage in 17 1/2 years if you pay extra every year.

6. Can you Assume the Seller’s Mortgage?

One of the hottest trends that I am anticipating in the coming years are assumable mortgages.  The idea with an assumable mortgage is that the new buyer can (if they qualify) assume the mortgage terms of the Seller.  The Buyer would then either pay the difference in cash or take a second mortgage out for the difference.  Assumable mortgages were a popular marketing tool in the 80’s when mortgage interest rates were 15-20% but became unnecessary as rates settled below 10% in the early 90’s.  A few years back, the Fed’s bond buying program enabled millions of homeowners to refinance their mortgages at unheard of sub-4% interest rates and some are assumable.  As mortgage rates are expected to rise over the coming years, a Seller with a ultra-low interest rate that is assumable would be extremely attractive opportunity for any buyer.

7. Get Instant Updates from the MLS

For the last 18-24 months, many first time home buyers in the Las Vegas area have found it frustrating to purchase affordable housing because of a lack of available housing inventory.  The solution: beat the other homebuyers to the punch by seeing the homes as soon as they are listed for sale on the market.  Most very popular websites only update every 24-36 hours with new listings and that is simply too late.  Fortunately, the local multiple listing service has a feature that will notify potential buyers the instant a home is entered into the system that matches their criteria.  Don’t expect there to be pictures right away but, if the home was listed on the market in the last few years, there will be photos of what the home looked like at that time.

If you want a referral to a top agent in the area, just reach out, we work with some of the best.

Aundrea Beach-Greco
(702) 326-7866
NMLS 333739
info@aundreabeach.com
www.iLendLasVegas.com

FHA Approved Condos in Las Vegas ... who knew!

As prices increase in the Las Vegas market, condos are a great option for buyers. There are still many affordable Condo communities and some are even FHA approved.  If you have never purchased and financed a condo, there are some additional steps but nothing that would deter you from considering a condo.  If you need financing, just make sure the lender you select offers financing on condos and has experience with them as it will make your experience much more pleasant. 

Although there are hundreds of condos in the valley, here is a current list of FHA approved condos to choose from. 

https://entp.hud.gov/idapp/html/condo1.cfm

Give us a call if you need more info, we're here to help! 

Buy a home with the Culinary Union (Local 226) Down Payment Assistance Program

The Culinary and Bartenders Housing Partnership provides up to $20,000 in assistance to purchase your first home!

The Culinary and Bartenders Housing Partnership provides the following benefits:
* Post-purchase workshops (in English & Spanish), including foreclosure prevention
* First-time homebuyer down payment assistance loans

Key elements of the program include:

• The down payment assistance loan up to $20,000 has a 0% interest rate.

• You do not have to pay back the loan unless you sell, rent, or refinance the property.

• If you sell, rent, or refinance you pay the loan back at face value with no interest charges.

• You must live in the house you buy (no second homes or vacation homes).

• You must not have owned a home within the past three years.

• You must contribute 3.5% down payment for an FHA mortgage. 

• You must contribute 1% of the purchase price for a conventional mortgage.

• Your combined household income can't be greater than $83,750 for a 1-2 person household. For a household with 3 or more persons, your combined household income can't be greater than $105,350.

• You will be required to complete an orientation class, an 8 hour homebuyer education course and a one-on-one counseling session at no cost to you.

• You must qualify for a mortgage - you may use a lender of your choice. Go to www.iLendLasVegas.com and click apply now

• Funds for loans are limited and will be granted on a first come first serve basis.

If you are a worker covered by the Culinary and Bartenders’ union contract who has at least 2,000 hours of service over a three-year period, then you are eligible for the housing benefit that helps workers obtain the dream of homeownership.

The Culinary and Bartenders Housing Partnership provides the following benefits:

* Homebuyer education and pre-purchase counseling in English and Spanish

Are you curious to find out if you are eligible for the Culinary Union down payment assistance program? Call us and we will go over the details with you and answer any questions you have.

702-718-8000
www.iLendLasVegas.com 

www.iLendLasVegas.com

Starter Home or Forever Home?

If you’re in the market to buy a home, you may be wondering: Should you purchase a starter home to get into the market now, knowing you may outgrow it in a few years? Or, should you stretch your budget — or spend more time saving — to get a “forever home” that will take care of your long-term needs?

Here are some factors to consider as you weigh whether to get a home best suited for the short term or the long haul.

First-time homebuyer factors

Market conditions: Mortgage rates are historically low, but there’s no telling how long that will last. Also, many real estate markets nationwide are booming; consider whether to jump in before home prices get even higher, or whether they may weaken.

Where you want to live: Consider if you’d be OK living for a few years in the suburbs, where you might be able to find something more affordable, or if you’d rather try to snag a home in a different area where you want to live long-term.

How much house you can afford: It ultimately comes down to how much money you have saved and how much you can afford to spend on a monthly mortgage payment.

Homebuyer programs to help with financing: Find out if you may qualify for a homeownership program that could help you save on your home loan. There are about 2,500 programs available across the country that could help you save on your down payment or closing costs, or provide tax credits.

What kind of house you want: For a starter home, you might go for a small home, a condo or townhouse in an up-and-coming area. If you’re thinking forever home, a single-family home with land to build an addition later could be a better fit — but it’ll be more expensive.

The costs of getting out early: If you choose a starter house now, and you end up getting married or having kids or needing to move quickly, you may face penalties, such as capital gains tax. You should talk with your tax professional about that.

Now, let’s dive into the details on what else you need to think about.

Starter home considerations

Your lifestyle: Do you want to be in the middle of a big city, or are you fine with the ’burbs if that means you can own a home? If you want to live centrally, where real estate is most expensive, you’ll probably have to start small. What if you could only afford a 1-bed condo somewhere and regret being near your friends. Consider what you’re willing to sacrifice, both in terms of location and size.

Your future needs: Many first-time home buyers assume they’ll be in a home much longer than they actually are. She says young, single people sometimes don’t realize how quickly life can change. A job switch, new relationship or new baby can alter what you need in a home.

So, if your life is full of flux and you think you would stay in your starter home for only 1 1/2 to 3 years, it may be less stressful to keep renting until you’re ready for something large enough to meet longer-term needs.

Capital gains taxes: If you set out to buy a starter home for the short term, be careful, Bull says. If you sell soon after moving in, you may owe capital gains tax on your profit from selling the home. That means you may want to think carefully about buying a home you’ll grow out of in less than two years. Consult a tax professional to see how this could affect you.

Consider an exit strategy: If you’re considering going the starter home route, you should think through from the start how you’ll offload it when the time comes to move. For instance you might buy a property that you could rent out to cover your mortgage, especially during times of economic uncertainty. This helps ensure you can cover your mortgage payment if you need to move ASAP, or if the market is weak when you hope to sell but you don’t want to take a loss.

You should also carefully research the area in which you’re looking to buy, and confirm “there’s enough resale potential to make sure that even in a market that’s heading downward, you still have a likelihood of being able to get out of where you are.”

Forever home considerations

Interest rates: If you decide to wait so you can afford a forever home, there’s a chance interest rates could increase from their current historic lows. You might be able to save additional funds in the next few years, but at that point, interest rates will have risen, and your mortgage will be more expensive.  Nobody can predict what will happen, but it’s important to keep a pulse on mortgage rates.

Hot markets: In many major cities such as Boston, property values are rising rapidly. There’s also a lot of uncertainty as to whether home values will plateau or keep going up, leaving first-time home buyers wondering if they should give in to the feeding frenzy. If you wait in hopes of saving for a larger home, it’s possible prices will rise faster than you can save.

Your cash flow: Considering your lifestyle and life events it is important to do the math and check your cash flow.

If you want a forever home, you have to ask yourself whether you can afford the larger down payment, and whether your salary supports a higher monthly mortgage payment. It’s key to create a budget and to carefully track what you save and spend and to be sure you can afford a more expensive home. Don’t assume your salary will be higher in a few years and go for a bigger mortgage. And don’t forget to factor in higher ongoing expenses like property taxes and homeowners insurance.

Don’t stress too much

Making the decision between a starter home and forever home is a major move, but don’t fret too much about making the wrong decision. Remember, there are always options — you can sell, you can rent, you can put yourself in a position where you can go out and buy another house.

For more information about what you qualify for today and building your entrance strategy, call us.

Aundrea Beach-Greco
702-326-7866
info@aundreabeach.com
www.iLendLasVegas.com

NMLS 333739

Tax Reform & Housing: A Reference Guide

Disclaimer: This guide is not meant to be a resource for tax advice but instead a resource for basic information concerning only certain aspects of the new tax code and how they may impact the real estate market. You should get tax advice from your accountant or tax preparer who will explain how the entire tax code will affect your personal return.

This information comes immediately after the new tax code became law. Some of the information may be revised as the analysis of the new law evolves.

When the tax code was originally being overhauled by the House and the Senate, there were three major proposals being considered that would have substantially impacted the residential real estate market:

• Changing the requirements for the exclusion of gain on the sale of a principal residence
• The reduction on the limit of the Mortgage Interest Deduction (MID)
• The elimination of the State and Local Tax deduction (SALT) which includes property taxes

Let’s look how the tax code has evolved from the original proposal, and decipher what impact experts believe it may have on the housing market.

1. Exclusion of gain on sale of a principal residence

Original Proposal: Owners would need to live in their house for at least 5 out of the last 8 years to claim this exemption. Under the former tax framework, a typical owner, who has lived in their house for at least 2 years out of the last 5 years, would pay nothing in capital gain taxes if they sell the house.

The New Tax Code: No change. The “at least 2 years out of the last 5 years” requirement is unchanged.

Impact on the Market: None.

2. Mortgage Interest Deduction

Original Proposal: Reduce the limit on the mortgage interest deduction (MID) amount from $1,000,000 to $500,000.

The New Tax Code: Reduces limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17. Current loans up to $1 million are grandfathered.

Impact on the Market: Assuming a 20% down payment, this reduction in the MID will impact buyers that are purchasing a home between the prices of $938,000 and $1,250,000. Any home under the lower price is still covered and any home over the higher price was not covered under the former tax code either.

What does that mean to the market? Experts disagree. Calculated Risk’s Bill McBride:

“I think the impact of reducing the MID from a maximum of $1 million in mortgage debt to $750 thousand in mortgage debt will have very little impact on the housing market.”

On the other hand, Capital Economics claims:

“The impact on expensive homes could be detrimental, with a limit on the mortgage interest deduction raising taxes for those that itemize.”

3. State and Local Taxes (SALT)

Original Proposal: The elimination of the state and local tax deduction (which includes property taxes).

The New Tax Code: Allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes.

Impact on the Market: Most experts agree that higher taxed regions will be impacted as homeowners in those communities now have a cap on these deductions.

Calculated Risk’s Bill McBride stated:

“SALT will have an impact on housing in some areas. Some people might choose to live in one state over another (if they have a choice), based on taxation. This could impact demand in certain states – especially for the middle and upper-middle class homeowners.”

Mark Zandi of Moody’s Analytics said:

“The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.”

What will be the overall impact on the housing market?

For most of the country, the new tax code will not have a negative impact on the market. As Capital Economics reports:

“Given most households will see an overall tax cut, and potential buyers are likely to put that saving towards their home, we doubt it will have a significant detrimental impact on the housing market.”

There is also no doubt that some higher priced, higher taxed regions will be affected more than others. However, most experts agree that other portions of the tax code will favor the high-end buyer and seller, and this might mitigate many concerns. McBride explains:

“The corporate tax cuts (and other tax cuts) will mostly benefit the wealthy, and this will be a positive for high end real estate.”

What does this all mean to you?

To know for sure, you should sit with your accountant or financial planner and explore how all the aspects of the new code will impact your family.

Most families consider homeownership an essential part of the American Dream, and don’t purchase a home based solely on the tax advantages. The main reasons they buy a home are personal (they just got married, they are looking for a good place to raise children, they want to be near friends and family, they want to better enjoy their retirement, etc.). This will never change.

Looking at the new tax code, Mr. McBride’s opinion makes the most sense:

“There will be some negative impact based on SALT, but overall the impact of these policy changes on housing will be minimal.”

2018 Loan Limits in Clark County, NV

Applies to all loans locked and closing after 1-1-2018

CONVENTIONAL & VA LOANS

FHA LOANS

Do you need help to see what you qualify for?
Contact us!
Aundrea Beach-Greco
702-326-7866
info@aundreabeach.com
www.iLendLasVegas.com

5 Ways To Tell if You Are Getting Ripped Off on a Mortgage

It doesn’t matter the industry, there are scammers in just about every profession looking for opportunity. We really need to keep our feelers up when it comes to scams, hackers, and those just trying to get your money or your identity. Even in the loan industry, this is becoming a hassle, much more than an inconvenience, but a source of deep frustration for those looking to buy a house or refinance. In mortgage world, there are big red flags to look for so that you know your loan officer or mortgage officer is not ripping you off and keep you from being scammed. Here are the five most important ways you can tell that a lender is just not aboveboard.

#1. The ask for money up front.

This is one of the most obvious red flags. A scammer may call this an insurance fee, processing fee, advance payment or some other kind of deposit and they may even say it’s a standard procedure. But those lenders require you to wire the money through the Western Union or some other similar service, be on the lookout. This is probably a scam. We do not ask for money upfront!  Most loan costs are paid at the closing or can be rolled into the loan and you shouldn’t have any out-of-pocket expenses right off the bat. There may be some legitimate reasons why a lender would want money upfront such as for a credit report or an appraisal fee but that’s usually a very small amount. It’s important to know who you’re dealing with, not just the bank itself but the individual loan officer before handing over any funds.

#2. A lender that says every loan program out there is available to you.

This clearly is not true and that loan officer isn't doing their job or you a service. Many lenders specialize in specific types of loans such as Jumbo, FHA, VA, UDSA, Down Payment Assistance or investment loans. If a scammer says that they can handle any loan in any state and that you can qualify for anything, it probably is too good to be true.

#3. A lender promising guaranteed loan approval.

No lender can offer guaranteed loan approval without validating your documentation first. Be very cautious of any lender that promises you the moon. If they say you will get approved regardless of your credit history and no credit check, run far away. Your credit history is often the first line of defense that determines risk when it comes to finding the right loan and a loan approval for a borrower.

#4. A lender requiring quick decisions.

We're not talking about locking in interest rates in a volatile market, because sometimes we need to move quickly on those, especially if the bond market is moving, however if a loan officer is pressuring you to make a decision today, handover money right away for fear of missing out, it’s time to back off. Many hackers and scammers use this ploy to ensure that the borrower doesn’t have the needed time to research the lender enough. A reputable lender will let you take your time and help you feel comfortable with your decisions all the while reminding you of any urgency needed down the line.

#5. No license.

You might think that borrowers would be crazy to use a loan officer without the required licenses but most people don’t even question it. Legitimate loan officers and lenders will have licensing, registration and or affiliations with professional organizations. Most of them are also required to be licensed and registered with the NMLS national registry.  If a lender is not on the approved list, that could be a big red flag.

The last thing you want is to get involved with the lender that is trying to scam you out of your money, your livelihood and your security. Make sure you go with someone you trust and ask for referrals on how well a lender did with a certain loan before jumping in. Most banks, reputable or national mortgage lenders and even small-town credit unions will have reputable lenders on hand to help you. Don’t just go with the lender that looks the previous or sounds the best.

I’d be happy to go over any upcoming programs or lending options that might work for you both now and in the future.

Feel free to give me a call!
702-326-7866
Aundrea Beach-Greco
www.iLendLasVegas.com

Happy Christmas 2017 from Aundrea

Home Loan limits increase in 2018

[PSA HOMEOWNERS AND HOME BUYERS] Loan Limits increasing in 2018! It is super important you are kept in the loop with the latest mortgage information.  Great news... Loan limits are being increased in 2018... Check it out!

Confirming National Loan Limits:
Increasing to $453,100

FHA Loan Limits in Clark County: 
One-Family Increasing to $292,515

What does that mean for you? You can possibly qualify for more home, refinance to remove PMI or buy a larger home without hitting the jumbo loan mark.

Want to learn more? Get pre-approved? 

Contact us 702-326-7866
info@aundreabeach.com
www.iLendLasVegas.com

LLPA and Mortgages - Do you even know what this is?

Loan-Level Pricing Adjustments (LLPA)

A loan-level pricing adjustment (LLPA) is a risk-based fee assessed to mortgage borrowers using a conventional mortgage. Loan-level pricing adjustments vary by borrower, based on loan traits such as loan-to-value (LTV), credit score, occupancy type, and number of units in a home. Borrowers often pay LLPAs in the form of higher mortgage rates.

LLPAs Affect Conventional Mortgage Borrowers

Each week, government-backed Freddie Mac publishes its Primary Mortgage Market Survey (PMMS), a review of the week's average mortgage rates available to U.S. borrowers.

For many borrowers, however, these rates can prove elusive.

Freddie Mac may report today's mortgage rates firmly in the 3's, but when you call a lender, you get a quote which is substantially higher.

Your lender's not pulling a fast one on you. Your mortgage rate may really be higher than what Freddie Mac reports -- particularly if you're using a conventional home loan to purchase your new home due to the LLPA.

The bump to your mortgage rate is the result of a government-mandated, rate-altering program based on something called "risk-based pricing".

More formally, it's known as the loan-level pricing adjustment (LLPA) program.

What Is a (LLPA) Loan-Level Pricing Adjustment?

Loan-level pricing adjustments (LLPA) are not new. They were introduced into conventional mortgage lending in April 2008, and LLPAs remain in effect today.

They exist for good reason, too.

Toward the end of last decade, as government-backed loans began going bad, Fannie Mae and Freddie Mac realized that they were undercapitalized and over-exposed to risk.

Both organizations were losing money -- quickly. They decided to increase fees. However, neither group wanted to make an across-the-board fee change. Both groups understood that some loans were less risky than others.

From this want to collect more fees, loan-level pricing adjustments were born.

Loan-level pricing adjustments are, literally, adjustments to the "price" of a loan. Loan prices are what determine a borrower's mortgage rate.

Higher loan prices translate into higher mortgage rates.

Loan-level pricing adjustments are the government's way of raising prices for "riskier" borrowers without putting a penalty to "safer" ones. Similar to an auto insurance policy, a person loaded with risk will pay a higher premium.

LLPAs can change a person's mortgage rate by 100 basis points (1.00%) or more.

Risk Factors That Lead To Loan-Level Pricing Adjustments

The loan-level pricing adjustment system contains more than a dozen "risk characteristics". Nearly all conventional mortgage borrowers are affected by at least one.

LLPAs are cumulative, too. If you trigger 4 adjustments, you're required to pay all four.

Loan traits which affect your loan-level pricing adjustment include:

• Mortgaging a home as a investment property
• Mortgaging a condo with less than 25% equity
• Mortgaging a multi-unit home (i.e. 2-unit, 3-unit, 4-unit)
• Doing a cash-out refinance at any loan-to-value
• Subordinating a second mortgage via a piggyback loan

There are only a few scenarios which avoid loan-level pricing adjustments completely. One such scenario is when a borrower with a credit score over 740 purchases a single-family, detached home with a downpayment of 40% or more with no subordinate financing.

Everyone else is subject to LLPAs.

LLPAs Don't Apply To FHA, VA, or USDA Loans

Loan-level pricing adjustments are neither discretionary fees, nor "profit" to a bank. They are fees assessed by Fannie Mae and Freddie Mac and there's way to skip them.

However, if your LLPAs become to large, you may find it smarter to use non-conventional financing for your next mortgage loan.

Loan-level pricing adjustments apply to Fannie Mae and Freddie Mac loans only. They don't apply to FHA loans, VA loans, or USDA loans.

Therefore, if you're purchasing a home with 2 units or more, or if your credit score is below 700, you'll likely find it more cost-effective to purchase a home using an FHA mortgage instead of a conventional one -- especially if you plan to make a low-down payment.

Or, if you can qualify for a VA mortgage based on experience in the military; or, a USDA loan because you're purchasing in a less-densely populated part of the country, it's best to explore those options, too.

About the time to ignore the effect of loan-level pricing adjustments on your loan is when you're using special conventional mortgage programs such as the HomeReady™ mortgage, which puts a cap on the amount of LLPAs a borrower can accumulate and allows for just 3% down.

HomeReady™ is terrific for home buyers in low-income areas, and for buyers who rely on income from boarders to help make ends meet each month.

What Are Today's Mortgage Rates?

Today's mortgage rates are low, but because of loan-level pricing adjustments, not all rates and lenders are created equal and not all borrowers will get access to the Freddie Mac published rates.

Call today for a FREE quote!

Aundrea Beach-Greco
The Beach-Greco Mortgage Team
NMLS 333739

702-326-7866

info@aundreabeach.com
www.iLendLasVegas.com

Are you affected by the EQUIFAX BREACH? Consider a Fraud alert or credit freeze

Considering a fraud alert or credit freeze? 

You don’t need to be an identity theft victim to use these – but it’s helpful to know depending upon your situation. If you’re not sure which is best for you, here are some things to think about.

The recent security breach at Equifax has left some 143 million consumers scrambling to understand the difference between fraud alerts and security freezes, and which works best in protecting their personal information.

If you’re a victim of the Equifax breach, don’t hesitate to use these options to safeguard your information. You can opt for one or both, depending on what’s right for your situation. Here’s how to choose between a freeze and a fraud alert, and the best way to protect your credit.

What do fraud alerts and credit freezes do? With a fraud alert, businesses must try to verify your identity before extending new credit. Usually that means calling to check if you’re at a particular store attempting to take out new credit. With a credit freeze, no one – including you – can access your credit report to open new accounts. You’ll get a PIN number to use each time you want to freeze and unfreeze your account to apply for new credit.

How long do fraud alerts and credit freezes last? A fraud alert lasts for 90 days. You can renew it but you’ll need to remind yourself or it will expire automatically. Identity theft victims are entitled to an extended fraud alert, which last seven years. In almost all states, a credit freeze lasts until you temporarily lift or permanently remove it. In a few states, it expires after seven years.

How much do they cost? Fraud alerts are free. Credit freezes may involve fees, based on state law. In most states, they’re free for identity theft victims. For non-victims, they cost about $5 to $10 each time you freeze or unfreeze your account with each credit reporting agency.

How do I place a fraud alert or credit freeze? To place a fraud alert, contact any one of the three major credit reporting agencies, either by phone or online. The one you contact is required to notify the other two. If you’re an identity theft victim placing an extended fraud alert, you’ll also need to mail or upload your Identity Theft Report which you can create at IdentityTheft.gov. To place a credit freeze, you must contact each of the three credit reporting agencies individually at their credit freeze portals.

Credit freezes may be a strong tool but they may not be for everyone. Consider the cost and hassle factor. If you’re about to take out new credit (apply for a mortgage, car loan, student loan), then you’ll have to unfreeze and refreeze each time you want new credit. But if you won’t need new credit soon, then a credit freeze may be for you.

Double Protection

For anyone who is in the middle of buying a home, or some other financial transaction, you may not want to block prospective lenders from seeing your credit file. If that’s the case, opting for a fraud alert may offer reasonable protection, because lenders will be warned and you’ll receive a free credit report from each bureau.

Still, a credit freeze is the stronger option. So if you can’t lock down your credit now, plan on doing so as soon as you can.

And for maximum protection, we recommend using both freezes and fraud alerts. As the Equifax breach showed, you can’t be too careful.

If you need further information, please contact us.

702-326-7866 www.iLendLasVegas.com 

Think You Have Bad Credit? 7 Signs That You Probably Do

I know you're busy and possibly quite frankly afraid of what you'll see. It can be all too easy to turn a blind eye to your credit profile. There are certain red flags that can let you know that something is really amiss - and that your credit score has entered the "bad" zone. (Credit scores range from 350-850 scale, but generally a "bad" score is considered scores below 600 scale.)

Here are a few indications that you may have bad credit.

1. A Recent Loan Application Gets Denied
2. Your Credit Card Company Won't Lower Your APR (or Raise Your Credit Limit)
4. You Get a Default Notice or Subpeona From a Creditor
5. You're Contacted By a Collection Agency/Debt Collector
6. You Start Receiving Subprime Credit Offers
7. You Have to Put a Deposit Down on Utilities

A loan denial is one of the quickest ways to learn that your credit score is low, since a good credit score generally entitles you to affordable financing and an average one will often net you credit, but at a higher interest rate.

The Fair Credit Reporting Act (FCRA) requires lenders provide a copy of the report they used, along with an explanation, when a consumer is denied or offered adverse terms on a contract or loan.  This should give you an idea of where your credit stands shortly after you get turned down for a loan (though it's a good idea to pull your credit immediately anyway). 

A credit card issuer typically reviews your credit if you ask for a lower annual percentage rate (APR) or a credit limit raise on an existing account. So, if you get turned down for some reason, it's probably a sign that there's something on your credit report.  

  

Credit Card issuers are in the habit of conducting account reviews on their own from time to time, so if you see a change in your credit card's terms and conditions (like, say, your credit limit decreases or your rate is increased), your score may have gone down. And if it's fallen low enough, they could close your account all together.

Late payments are certainly going to hurt your credit score, but by the time you've entered default, big damage is likely to have been done. The same rule applies if you're being or were sued for an old debt.

Lots of different items, including medical bills, unpaid utility accounts or even gym subscriptions can wind up in collections. And these collections accounts will hurt your credit score, if the company who owns them reports to the three major credit reporting agencies. So, if bills start arriving in the mail or a debt collector comes calling, that's your cue to check your credit. 

You want to make sure the collections notice is valid, and then address it. 

Credit card solicitations can wind up in anybody's mailbox, but pre-approved offers from subprime financing providers, like a secured credit card issuer, payday lender or a car title loan company, may be a sign your score has dropped below a certain threshold, especially if you're somebody who's used to being qualified for prime credit.

Lenders aren't the only ones who pull your credit. Cellphone providers, insurance agencies and even utility companies look at versions of your scores when determining whether to do offer credit to you. So, if you have to pay fees or are offered less-than-stellar rates, your credit may to blame.

Has There Been a Mistake on Your Report?

Keep in mind, your credit score may be bad for a variety of reasons. While you may have damaged your own credit, there is also a chance an error is weighing down your score.  And something more damaging could be lingering... a sudden drop in your score could be a sign identity theft might be occurring.

To get a handle of what might be behind your bad credit, you should thoroughly check your credit. You can do so by pulling your credit reports for free each year at www.AnnualCreditReport.com. If your bad score is valid, you can work to improve it by getting accounts out of default, paying down high credit card balances and limiting new credit inquiries.

If you need help, we are here for you to answer any questions you may have.

Aundrea Beach-Greco

NMLS 333739

702-326-7866

www.iLendLasVegas.com

PS - If you want a free credit analysis, just reach out!  Click here for your request.