Do you prefer brick and mortar or online lending?

Brick and Mortar vs. Online Lending-What do you prefer?

Buying a home is one of the biggest decisions a person can make—and in all reality, there is no easy button. Finding the right home is a daunting task! Whether you are in the process of buying currently or have purchased a home in the past, the mountain of paperwork may still be haunting you.
So what is the new trend in the home buying process?

Online applications!
As of 2016, the online lending community made a surge! It makes sense, as somehow our lives are becoming more and more busy with work, kids, etc.
Supposedly the shift in trends directly correlates to the smart phone savvy millennial home-buyers. As a millennial myself, I feel everything is based off of accessibility, but I still want the personal touch when I look into buying the largest physical asset/debt I take on. Maybe I am in the minority here? As we continue to see a shift in the way social media and marketing evolves it is pertinent to appeal to the masses, but is the mortgage process one that you want to make via an online lending company or a brick and mortar lender?

Let’s discuss a little further here.

Brick and Mortar:
The phrase, if it isn’t broke, don’t fix it comes to mind. Remember all that paperwork mentioned before? This is where it comes into play now. Apparently, the mounds of paperwork is just too much. It makes sense! You have to bring W2’s, pay stubs, bank statements, tax returns and profit loss statements in to the lender. The same goes for your spouse or co-borrower that is on the loan as well. But on the flip side of that, you have someone to walk you through the entire process and someone you can rely on for questions and feedback. Person to person interaction is irreplaceable and because everything is now online,  I am even more interested in more of the face to face human interaction.

 

Online:
Online mortgage lenders typically are licensed in several states. This is very appealing! Most of these companies are not affiliated with a bank or are non-bank lending institutions. In turn, they aren’t held to the same federal oversight that a bank is so the process can be sped up, another appealing aspect!

Online lenders reduce that timely documentation headache discussed previously. It would seem with the online lending process, the turn around closing time is quicker too. As with brick and mortar mortgages, online lenders also have varying fee structures. Shop around and compare rate quotes when you are working with online lending. Remember, cheaper is not always better.

All in all, the consumer wins! Online lending has made the process quick and easy for the consumer, and brick and mortar companies are allowing for a good mix of face to face and easy access online for their borrowers as well. As always, it is up to the consumer on their own preference of how this transaction works out. What would you prefer?

A Note From The Author:The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

Improve a credit score in the next 24 hours!

Three things you can do in the next 24 hours to improve a credit score. Two of the three options do not cost you any money!

Credit Law Center explains three things to do to improve a credit score in the next 24 hours. First, add a new account or become an authorized user. Second, is to pay down your credit cards or balances. Third, pay for deletion. We have broken these tips down for consumers to understand what will work best or what fits with their current situation.

Add new account/authorized user: Adding a new account will not cost you any money. Becoming an authorized user to an account that is in great standing (spouse, parent, sibling) will immediately impact your own credit report. If you do not have a good mix of credit, this may be a great option. We tell clients two revolving and two installments is a good, healthy mix of credit. If you are working with a lender and trying to become approved for a home loan, check with your Loan Officer on the authorized user as sometimes, if that is your only revolving account, underwriting will not approve you.

Pay down and lower utilization: This step, if you have some money to put towards lowering those balances, your utilization ratio will really help. Often times, people are told to pay their accounts down to zero. Another idea, if extra cash is not on hand, is to ask for a credit limit increase. This is not an excuse to go shopping, however, helps again with that utilization ratio. Good rule of thumb is to look at the report as a grade card. A credit Score is ascending not descending. So, you do not start with an A and lose points, you start at the very bottom or a 350 score and gain points based on the types of accounts you have.

 

 

Pay for deletion: Credit Law Center uses pay for deletion as one of the tactics for our clients. This is a great article on the DIY way to attempt pay to delete on your own.

 

In conclusion:  A lot of people assume your credit score is based on history so it will remember everything, right? Your credit score has no memory.  As that report changes it doesn’t remember past information, it only knows what info is had right then and there. Your scores are only calculated when a current report is ordered. It is all based off of the information that is on the file at the time. If you can change that information or update it each time that score continues to change each time. If you have inaccurate information on a Monday and it is removed Monday evening, by Tuesday it is gone. Those changes have immediate impact on the score. Therefore, if you make changes to your balances and pay cards down and order a new report, the scores will reflect it.

35% of the credit score is based on payment history. Amount owed on your cards makes up 30%. The other 35% is made up of types of credit used, length of history, and new credit. When a consumer has a late payment, it takes a long time to recover. Looking at your report and understanding the credit world is important in order to maximize your scores. If you would like additional information on how to improve your scores, please contact us!

A Note From The Author:The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

Is DIY Credit Repair Right For Me?

We live in a world where people have a do it yourself mindset. They are ready to get back on track and they want the DIY way to go about it. Though it isn’t the fastest way to work, we still encourage clients to do what works best for them. At Credit Law Center we have the credit repair process down to a science in how we go about the removal of items from a report. We spend a significant amount of time educating our clients with the tools they need and if they choose not to use us and work on their credit alone, they are free to do so. If you are looking for a quick route to better credit, DIY is not for you!

Our credit advisors at Credit Law Center will not only walk a potential client through a FREE consultation, they also help in providing as much advice to the client as they can to save them the most money while attaining scores they want. Who doesn’t love free advice?

One of the questions clients ask about if they are hoping to wok on their own is  “how to settle an account to be removed from their report.” In the credit repair process, one piece of the puzzle is a pay for deletion. This means settling an account balance that is outstanding. Here is what the consumer needs to do to have the item removed the correct way with the DIY route on pay for deletion.

You’ll need to say:
“If I pay (cost of item) this item needs to be removed from the credit report. I need this documentation in writing either by mail or e-mail.” Once the documentation is received, then you may proceed with paying said item.

Next Step:
If you wish to take this task on, on your own make sure you put in writing as well for the creditor or collector and mail it certified to ensure you can track the process. As a client we do this for you, but again some folks wish to try on their own first.

The most important word in this process is the word “removed.” If it is not stated in the documentation they may not remove it when it is paid. Many consumers make the mistake of taking the creditor’s word via phone. Almost 100% of the time they will collect the money, hang up the phone and forget all about the consumer leaving them with lower scores and a paid collection. To read more about how a paid collection negatively impacts a score, visit this blog.

Cost and speed are what sets us apart. DIY will take time and work the consumers end of this. If you want to speed the process up and work with a credit repair company please give us a call, we would be happy to assist you!

A Note From The Author:The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

Credit 101-What You May Not Know About Your Credit

Credit 101

Janna Fox (Director of Business Development) and Breana Washington (Marketing and Media Manager) chat about common questions consumers ask about credit repair and what myths there are about credit scores.  Credit Law Center educates consumers and encourages them to know their rights, and be more informed about the credit world.   For more information about credit reports or getting in contact with an advisor, please visit our website.

Credit Law Center Mortgage Answers about repairing consumers credit

Becoming Mortgage Ready-Credit Law Center

At Credit Law Center we work with several different Mortgage Companies across the globe and want to continue educating our consumers that may be thinking about buying or that may be in the process currently. Some clients that we work with are also currently working with lenders to get approved for a loan. Combining what we know about credit, and what our lenders tell us about the loan process, we have broken down and compiled a short list to keep you informed so you feel comfortable in whatever stage you may be in.

Here is what you have the green light on!

Do:

  • Review your credit report in depth (prior to applying if possible) and look at your credit scores-Credit can impact several things (PMI, Interest Rates, etc)
  • Communicate with your lender-Find a lender that works for you and is available for you and communicates with you throughout the process.
  • Decide what the best “type” of loan will be for you-Ask questions and listen to all options out there.

Do Not:

  • No large deposits
  • No unnecessary job changes-These can have an impact on your qualification and the way your income is calculated
  • No large purchases-Do not go buy new furniture for the new house you are pining over just yet!
  • Don’t pay off a collection during the loan process-This can negatively impact you and potentially drop your credit scores and lower the chances of you getting approved!