There are four types of people...

Over the weekend I came to the realization that there are four types of people when it comes to credit. I think it is extremely important to find out who you are in the mix... Here are the four types:
1. People that think they have great credit, and do have great credit.
2. People that think they have great credit, but have bad credit.
3. People that think they have bad credit, and do have bad credit.
4. People that think they have bad credit, but have good credit.
In my experience, people are pretty aware of how they stand with credit, they have been told by people, banks or other, that they are strong, and use credit accordingly. However, there are people who really don't know where they stand. Check out my other blog on FICO scores and how they are formulated.
Credit, what is it, why is it so bad, why is it so great!
The issue with not knowing where you stand, is it puts you in a position to be taken advantage of. Fraud is one of the most horrible things to go through, and knowing where you stand will put you in a better position to question your situation, and make the best of it throughout your financial life. Check out my other blog on Fraud.
Real Estate fraud- How does it happen, why does it happen?
These types of fraud can happen, you must put yourself in the position to educate yourself to avoid the pain that these types of situations can put you through. It starts with credit. Know your score, know your positives and negatives, and don't let someone tell you otherwise. If in doubt about what someone tells you, ask someone else, a friend, or someone in the Real Estate business, for advice.
These questions came to my mind this weekend when at an Open House. I met a family that was looking to possibly buy the property, and the parent's were going to co-sign for the son on the loan, so that he could qualify.
Check out my blog on the reality of Co-signing... Credit and Co-signing Advice
The family was under the impression that the son would not qualify on his own because of issues with his credit. After going through his situation, I had a hunch that he might not be that bad off. One issue with credit, over a year ago, may have had the time to recover, and put him in the position to qualify. We went through the application, and last night when looking at his credit, it turns out he was strong enough to qualify. Submit it to Fannie Mae, PooF!, we have automated approval.
So we took them from possibly putting the parents on the loan, to now qualifying the son on his own, and not having to refinance at a later date to then put the son on the loan. That is a $3000 plus savings, plus they lock in a rate on today's terms, not what terms are like in the future.
Knowing your credit is extremely important, know where you stand, and find a reputable person in the mortgage business that you can trust. Without using someone qualified to offer you all of your options, you are setting yourself up for future issues, which in Real Estate, always adds up to future costs.
I may not be the person for you, but I think it would be a shame to not find out. You need to find someone that can give you ALL of your options, not just the standard options. Work with someone that thinks outside of the box.


Jon Vetter
Mercury Lending, Inc.
444 De Haro Street #130
San Francisco, CA 94107
650-465-5846 (Cell)

For your San Francisco Home Loan, from a trusted San Francisco Loan Officer.

Open your ears and let me help you learn.

The news of the mortgage and real estate business is starting to take it's toll on the individuals who rely on the media to give them their news. Don't we all rely on the media for the news? The truth is, we do...
Over the last few months we have seen the much publicized impact the subprime crisis will have on the market today and in the future. Heck, we can't avoid it. I am starting to realize what a huge impact it is having on individuals who don't have the experience in Real Estate, mainly those first time homebuyers.
The market is in no way exploding with appreciation, homes aren't selling fast, the truth is, we are in an adjustment phase. I believe the impact the media is having on people who rely on it for information is going to hurt us as professionals.
We are getting a bad reputation. Some of it may be deserved on some individuals, but the reality is, people looking for advice, need to contact us with questions, and a true understanding about Real Estate. In my case, use me as a tool for Real Estate finance. I have noticed a lot more lately, that people believe word for word, what they are told on TV, in the paper, on the internet, and the reality is, you need to find the trusted contacts that live this business everyday, to give you an honest outlook on the business. We have to know what we are doing to survive in this market. Call a professional, and build a relationship over time.
When considering buying a home, open your ears to the reality of the business. Be open to hearing what professionals have to say, and if it requires it, speak with multiple individuals until you find the person that is right for you.
I like to think that I am a reputable person, but I may not be the right person for everyone. People need to do the research to find that person that IS the right match.