Online Lending: Pros and Cons

 

Online Lending: Pros and Cons

The Internet is well-stocked with lending choices, but is online lending for you? Here are the pros and cons.

Pros:

1. Great deals abound. Online lenders know that to attract business they must make a good offer, so they usually have competitive interest rates.

2. Less chance of being charmed. Without slick salesmanship, the numbers have to speak for themselves. If terms and conditions are lacking, you won’t feel obligated to go with someone just because he has become your buddy.

3. User friendly. If your credit profile is good, you are a perfect candidate for online financing. Spending a few hours in front of your PC can lead to multiple email offers. Let mortgage bankers and brokers outbid each other to win your business.

4. A loan is a loan is a loan. Most companies on the Internet stick with traditional methods for application approval and funding. Regardless of where they originate, all mortgage loans are protected by state and federal regulations.

5. Simplistic rate comparisons. When you’re checking only the facts, loans are easy to compare. Double-talk doesn’t transmit via the Internet.

6. Easy access to providers. Online, borrowers can skip the middleman.

Cons:

1. Lack of accountability. Local lenders rely heavily on referrals and repeat business, so when loans go bad, it reflects poorly on the company. Online lenders face less accountability.

2. A new breed. Since online lenders are a recent addition to the scene, they haven’t earned the reputations of their off-line competitors.

3. License requirements vary by state. It’s possible that you could select an online lender who isn’t licensed in your jurisdiction. If an online company is placing mortgage loans in your area, make sure they have the legal authority to do so.

4. No face-to-face contact. Some online lenders are bad apples, as are some traditional lenders. Though consumer confidence in Internet purchases is rising, Internet suspicion may still be too big a deterrent for you.

Tips

If you are ready to surf for online lenders, take the following precautions:

1. Expect a professional site. A good website doesn’t guarantee a good company, but a poor site is a bad sign.

2. Do research. Many lender sites offer the company’s history and business practices. If you can’t learn anything about the company, try another one.

3. Ask your Realtor to suggest reputable online lenders.

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Take Advantage of Passive Solar Energy

 

Take Advantage of Passive Solar Energy

Passive solar design includes such techniques as installing large, insulated windows on the house’s south side. These windows maximize winter sunlight but absorb no direct sunlight in the summertime. Putting in a heat absorbing wall or concrete slab floor next to the windows locates thermal mass.

A few tips will help you maximize the benefits of solar heating.

- Regularly clean south-facing windows.

- Dirt reduces the amount of energy the windows can absorb.

- Ensure that nothing is blocking sunlight from the concrete slab floors or heat-absorbing walls.

- Use insulating draperies on south-facing windows to reduce heat loss during the night and during cloudy weather.

- Make sure that your insulation is adequate.

- Use weather-stripping around windows and doors.

- Removable insulation is available for use on doors and windows at night and during cloudy weather to hold on to heat.

Thoughtful placing of landscaping vegetation is a must. Plant deciduous trees, shrubs and vines on the east and west sides of your house for cooling purposes. Place evergreen foliage on the north side to block winter winds.

A solar hot water heater can meet from half to nearly all of a home's hot water demand.

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How to Increase Your Home's Value

 

How to Increase Your Home's Value

Project (average cost recouped, national) according to Realtor Magazine:

Minor kitchen remodel (88%)

Bathroom remodel (85%)

Major kitchen remodel (81%)

Family room addition (80%)

Deck addition (77%)

Master suite (75%)

Attic bedroom (74%)

Siding replacement (73%)

Window replacement (69%)

Home office (55%)

Projects that may increase your home’s value include: Jacuzzi (4 jets or more); permanent hot tub; in-ground pool; security system; sprinkler system; substantial out buildings; and vaulted ceilings. These may not add value to your house: above-ground pool; ceiling fans; garden pond; and light fixtures

- Remodel with mass appeal in mind.

- Use durable, quality materials.

- Keep the value of your property within 15 to 20 percent of your neighbors’.

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History Of Thanksgiving

 

Thanksgiving in America traditionally kicks off the holiday season, which encompasses Thanksgiving, Hanukah, Kwaanza and New Year’s Eve. But how did Thanksgiving become a national holiday? Did Pilgrims from England really start the tradition?

The very first Thanksgiving was not “Thanksgiving” at all, but rather a three-day festival celebrating the first bountiful harvest in America aided by neighboring Native Americans, a tribe called the Wamapanoag. The people who sailed to the “New World” aboard the Mayflower were members of an English Puritan sect called the English Separatist Church.

In 1676, the governing council of Charlestown, Massachusetts determined that the community needed to set aside a day to express thanks for the blessings they had received. June 29 was chosen to be this day of thanksgiving. On October of 1777, all thirteen colonies joined in a one-time thanksgiving celebration. George Washington then declared a National Day of Thanksgiving in 1789. Finally, in 1863, President Abraham Lincoln instituted the last Thursday in November to be celebrated nationally as a day of thanksgiving. In 1939, President Franklin Roosevelt moved Thanksgiving Day forward one week, as it is presently celebrated.

Stay safe this holiday season!

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How Your FICO Score Is Determined

 

Your FICO Score

Named for the San Rafael-based Fair, Isaac and Co., a FICO is a numerical score of credit-worthiness assigned to anyone who has applied for consumer credit.

FICO scores had little to do with mortgage lending. Underwriters made decisions based on payment history and income-to-debt ratios. But they began to look at the relationship between credit scores and mortgage delinquencies. People with low FICO scores defaulted on loans with far greater frequency than did their higher scoring peers.

Your FICO scores may differ slightly between the three national credit bureaus, Equifax, Experian, and Trans Union. In general, however, each agency uses the following issues to determine your score.

1. Delinquencies. A 30-day late payment is not as risky as a 90-day late payment. Still, it’s best to avoid either.

2. New credit. Creditors expect you to open accounts in order to establish credit, but you run the risk of reducing your score by opening several credit accounts in a short period of time. It suggests you are overextended and may not be able to meet new credit obligations.

3. Short credit history. A longer credit history is more impressive than a newly established one.

4. Balances on revolving accounts near maximum limits. A consumer close to “maxing out” cards may have trouble making payments in the future.

5. Public records (tax liens, judgments, bankruptcies). These all jeopardize a healthy FICO score.

6. Consumer credit agencies. Although they offer consumers lower interest rates and credit counseling, the use of credit counseling services negatively affects FICO scores.

7. No recent credit card balances. Having a very small balance without late payments can improve your FICO, showing that you manage credit responsibly.

8. Too few revolving accounts. If you fail to use credit, there is no way to evaluate your ability to manage it.

9. Too many revolving accounts. Multiple revolving accounts suggest a high risk of over-extension.

Credit scores can affect your interest rate. Some lenders establish lower interest for high FICO scores and higher interest for low scores. Some will not loan at all to people with low FICOs. And other lenders specialize in finding loans for the FICO-score challenged. If you have less than perfect credit, keep looking until you find a lender who will work with you.

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Healthy Holiday Eating

Healthy Holiday Eating

Is there such a thing as "Healthy Holiday Eating"? We just had and still have left over candy and chocolate bars from Halloween. Now here comes Thanksgiving and next thing you know, Christmas! Due to pandemic, it will be difficult to have normal family get together, but I hope you can still cook and eat holiday meal with your families.

Here are some tips for Healthy Holiday Eating;

- Don’t try to diet. Your goal should be to maintain your current weight, not reduce it.

- Plan and assemble several quick, healthy meals and have them readily available for reheating to avoid relying on high-fat fast food when your days become chaotic.

- Instead of cutting out high-calorie favorite holiday dishes, take a small portion of each and load up on healthier options like vegetables, fruits and breads.

- Don’t attend a cocktail party on an empty stomach. The effects of alcohol are felt much more quickly and can lead to overeating and overdrinking. If you do drink alcohol, try to drink one glass of water before each glass of an alcoholic beverage.

- Center activity around non-food events such as ice skating, tubing, skiing, renting a holiday movie, serving in your local homeless shelter, or singing carols.

- Offer to bring a favorite low-calorie dish to holiday parties, so you know there will be at least one "safe" item available. Arrive fashionably late and stand far away from buffets so you're not tempted to nibble constantly.

- Continue your regular exercise program right through the holidays. It's the key to maintaining good health and alleviating holiday stress.

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Home Inspections

 

Home Inspections

A home inspection is a visual exam of the structure and systems of a house. It details problems with the property and if they’re serious enough to prevent a sale. The three main points of an inspection are physical condition, items in need of repair or replacement, and the remaining useful life of major systems.

A report won’t cover defects that are not visible, inoperable systems (e.g., A/C during the winter), or code violations.

It’s a good idea to be present during the inspection: you can ask the inspector questions, and the inspector can point out areas of potential trouble and may offer maintenance tips.

Expect an inspection to take 2-5 hours (old homes may take longer), and expect charges of $200-$500 depending on size.

The seller is not required to make repairs, but the buyer can use the report in negotiating (e.g., if a repair is made, the buyer will offer to pay more, otherwise the buyer will bid lower).

To hire an inspector, get recommendations from your Realtor or from others who have used them, or check the phone book under “Home Inspection.” Be sure to ask about references, memberships in professional associations, professional training, and experience.

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