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Credit And Financing Basics For First-Time Real Estate Investors

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The right real estate investment, whether a single-family home or a multifamily property, is a valuable addition to your portfolio. But the learning curve can be steep as you prepare to purchase your first property. Your future success will depend on your current creditworthiness and capacity to secure financing, so it’s important to take your time as you explore options and 

get your affairs in order. 

Here is an overview of the key steps you need to take in the six months leading up to a real estate purchase.

In the first three months: 

Evaluate your credit. 

Your credit score carries a lot of weight with lenders. It can determine whether or not they decide to approve your loan application, and what interest rates they offer you. The difference between mediocre credit and stellar credit may add up to significant savings in monthly payments over many years.  

Run credit reports with the three major credit bureaus: Equifax, Experian and TransUnion. Federal law entitles you to get a free copy from each reporting company every 12 months. Look at your credit score, credit utilization ratio and debt-to-income ratio, and review reports for common errors, such as incorrect or incomplete identity information, account status or current balance data.

Resolve any credit problems you find. 

You have to fix any inaccuracies and address any legitimate negative marks on your credit report before moving forward with financing. If you have late payments, accounts in collection or bankruptcies on your report, consider working with a reputable credit repair company to improve your creditworthiness. You can manage this process on your own, but for timely and effective results, it’s often worth outsourcing to experts who can help you correct legitimate concerns, reduce your credit utilization ratio and raise your overall credit score. 

Set aside money in an account. 

Before you invest in a property, you need to build up funds for the purchase, as well as reserves to cover three to six months of mortgage payments. Lenders want to see seasoned money, meaning that it has been sitting untouched in a checking or savings account for some time. They will also be concerned about any large deposits or expenditures leading up to the purchase. To avoid setting off red flags, take a slow and steady approach to accumulating the money in your account, and don’t make any major purchases.

In the next three months: 

Start shopping for financing options.

Once your credit is in good shape and you’ve started to build your savings, you can begin to research different lenders. Unless you’re able to pay all cash for a property, you need to acquire some type of loan. There are many ways to finance real estate investments, all with different requirements, benefits and drawbacks. Here are a few of the most common types of loans: 

Conventional loans are categorized as either conforming loans or non-conforming loans.

Conforming loans are available through or guaranteed by private lenders (like banks or mortgage companies) or two government-sponsored enterprises, the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac). Conforming loan limits are adjusted annually to keep pace with the average U.S. home price and they vary by county. For example, the conforming loan ceiling in most areas across the US is $510,400 for 2020. However, in some markets like Los Angeles and New York where home prices are higher, the maximum conforming ceiling is $765,600.

Non-conforming loans (or jumbo loans) are above the conforming loan limit. Since jumbo loans cover larger amounts, they are riskier and tend to have higher interest rates, stricter qualifying standards and larger required down payments. 

FHA loans are backed by the Federal Housing Administration but issued by private lenders. They require lower minimum credit scores and down payments (as low as 3.5%). 

Fixed-rate loans have interest rates that are fixed for the loan’s entire term, meaning monthly payments will stay the same for the duration of the loan.

Adjustable-rate loans have interest rates that can change over time, meaning monthly payments can increase or decrease. 

Hard money loans are offered by individuals or investors, not traditional mortgage lenders. Hard money loans short-term (generally one to five years) and are backed by a hard asset, a property that is used as collateral for the financing. They have higher interest rates and are often used to purchasing properties that need major construction. 

Investing in real estate is a smart way to build wealth, but you have to do your due diligence before making your first purchase. Follow these steps in the coming months, and you’ll be well-positioned to take the first step into real estate investment. 

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Credit Repair Companies

Free credit repair consultation for people in credit distress – Press Release

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Free credit repair consultation for people in credit distress

At a time when the number of people with negative credit listing has increased, Intel Credit Consultants is coming to the aid of the credit distressed individuals and business through offering free credit repair consultation.

With the rate of credit default reaching new levels, a credit repair company is offering individuals and business a free consultation. While announcing this credit repair assistance, the lead consultant at Intel Credit Consultants said this is meant to help individuals and businesses make informed credit decisions. “We are aware of the situation  occasioned by the pandemic and we would like people as well as businesses to come out strong , remove their negative information and improve their chances of getting credit to finance their activities,” said the company representative while urging those in need of credit repair services to register for free consultation.

Intel Credit Consultants relies in a pool of experienced credit repair professionals to help its clients. The team is reputed for its experience and high skills as well as dedication to provide assistance quickly and effectively. The company representative says that the team goes out of the way to ensure customer satisfaction and delivering the desired results.  He observes that the free consultation is a step towards providing a path that will streamline a customer credit path and open avenues where they can live comfortably without being bogged down by issues of negative listing.

“The importance of credit repair cannot be overemphasized, it can open many doors for you especially if you are considering buying a house, a new car, furnish your house, taking a loan among other financial decision. We are providing assistance that will help improve your credit score,” said the lead consultant while adding that they are a reputable firm, a choice of many people looking to repair their credit fast and at affordable rates.

While explaining how they operate, the company spokesperson said the first step is becoming a member through signing up. The new member is supposed to choose a plan where they analyze the available options. The credit repair company has a variety of programs that a member can choose from. Once a customer provides all the necessary information and documents, the company representative says they can now sit and see the progress. “On average our clients see an 85 point increase in their credit score in a period of one month,” said the representative while adding that they have received numerous testimonials from customers who are happy with their services. “We are happy to hear positive feedback from our customers, we are pleased to learn that we made a difference in their lives, providing an avenue where they can improve their financial standing. This is who we are, a credit repair company that makes a difference in people’s lives,” said the representative while reacting on the positive testimonial from the customers.

Intel Credit Consultants promises to continue offering credit repair assistance, encouraging those who are looking for services to take advantage of their free consultation through booking an appointment through their website: https://intelcreditconsultants.com/

About Intel Credit Consultants

Intel Credit Consultants is a US based black owned credit Repair Company. The company that puts its clients needs first making sure they are educated and well informed on every credit decision.

Media Contact
Company Name: Intel Credit Consultants
Contact Person: Media Relations
Email: Send Email
Phone: 866.990.7175
Country: United States
Website: https://intelcreditconsultants.com/



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Give yourself some credit (reports)

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Image courtesy FTC
Image courtesy FTC

By EMILY WU
Attorney, Federal Trade Commission

One important back-to-basics step you can take this Financial Literacy Month (or anytime) is checking your credit report. 

Your credit report has a summary of your credit history. For example, if you’ve been evicted and a landlord turns uncollected rent over to a collection agency, that might be on your credit report. Information in your credit report affects your credit score. That’s important because businesses — like insurance and phone companies — use your credit score to decide whether to give you a policy or service, and what rate to offer. And potential employers and landlords also might check your credit.

So you want to know that the information on your report is accurate. And if it’s wrong, you want to make sure someone didn’t steal your identity.

Here’s the plan:

Order your free credit report. Go to AnnualCreditReport.com or call 877-322-8228. Until the end of the pandemic, everyone in the U.S. can get a free credit report each week from all three national credit bureaus (Equifax, Experian, and TransUnion).

Read the reports carefully. Do you recognize the accounts? Do they list credit applications? Did you apply for credit at those places?

Spot mistakes. Fix anything that looks wrong (read more about how). But if it looks like someone else is using your credit, go to IdentityTheft.gov to report it and get a recovery plan.

Spot a credit repair scam. If a credit repair company asks for money up front, or tells you not to contact the credit bureaus yourself, that’s probably a scammer.

Look, it’s been a tough time, and it’s hard to get back on track. But you can take steps to rebuild your credit. Only time and a plan to pay off debt will improve your credit, but with free credit reports available every week, it’s a good time to take a small step towards recovery. 

. . .

The above information is from the Federal Trade Commission Consumer Information blog

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Introducing Oasis Credit Group, New York City’s premier credit repair company – Press Release

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Oasis Credit Group is a credit repair company, based in New York, that is proficient in erasing bad credits accumulated from terrible financial decisions whilst providing its clients with a first-class platform for business or personal growth.

Available statistics suggest that 43% of consumers haven’t checked their credit score in the last year. Meanwhile, VantageScore says there are about 220 million scoreable people and 68 million of them have bad or poor scores. Hence, Oasis Credit Group is aptly positioned with its services—the ability to remove all negative derogatory and delinquent accounts across all 3 bureaus.

“The first thing we do is obtain a 3B Credit Report which is one report from the 3 major credit bureaus. We will then analyze the entire report with the client on the line. We will go over each item that is on the report and figure out what needs to be done. Ex. dispute with the bureaus and/or furnisher, Debt Settlement with the creditor or collection agency, Adding positive accounts, etc. We do not sign up any client who wants to sign up. If we cannot help, we will not onboard the customer”, explained the company CEO.

Oasis Credit Group started as a small business funding industry where they observed the biggest reason for denial was someone’s credit score. “After figuring out a way to help people with their credit scores, we decided to move strictly to credit repair as we saw the number of consumers who can use our service AND the amount of business who can help as well”, explained a company spokesman.

Oasis Credit Group differentiates itself from other companies in the credit repair industry with a number of impeccable services including:

  • 100% Money-Back Guarantee
  • Flawless integrity
  • Sufficient experience with consumer, business, and mortgage credit
  • Full-time availability and customer support
  • Affordable fees, with NO long binding contracts.


Oasis Credit Group
offers a referral bonus as an incentive for any client referred to them.  “As mentioned above, we know what it likes to have a client declined due to credit. We are your solution. Refer those clients to us or any client you know can use our help and we will get them a better credit score AND you will get paid for the referral. We pay a residual commission for each active client each month.”

Perhaps, a pointer to the company’s proficiency is the rave reviews and customer testimonials from clients. According to a client, Gloria G.: “After working with 3 different credit repair companies I had 0 results after 2 years. I was on my last try and Abie was awesome from the first phone call. He didn’t promise anything that wasn’t possible and gave me an accurate timeline to reach a score of 650 so I can get my dream home. They were able to get the results I needed in 2 months! For anyone that has been struggling I strongly recommend you give Oasis a try they DELIVER!”

Media Contact
Company Name: Oasis Credit Group
Contact Person: Abraham Shalam
Email: Send Email
Phone: (646) 727-6985
Country: United States
Website: oasiscreditgroup.com



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