A trip from The National Credit Care- Student Loans Part 2

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Student Loans- Part 2

There are a lot of people out there who receive tremendous benefits from student loan assistance. This doesn't include the 30% of people who obtain only to drop out of school early, or for our 300,000 waiters and waitresses that have a Bachelor's Degree. It's certainly a hit or miss scenario. However, what definitely shouldn't be a hit or miss is on how the student loan fairly impacts your credit profile.

Obviously, we can expect if we don't pay our loan on time, or at all, that it will go late or into collection status. What really kicks us when we are down is that if you do go late on a student loan you don't just get a single late. As student loans report per semester, and you receive them for four years, then you will have eight lates from your eight different accounts causing eight times the damage and headache! Our experience shows an abundant amount of people will go late as soon as the deferment is over. This is generally because they aren't aware or haven't been appropriately notified when they have to pay. That then creates a sever-year penalty on your credit report, which seems harsh as criminals seem to serve less time for felonies.

The plot thickens as now we can see reports that the federal government along with an Attorney General is suing Navient (the largest student loan provider) for allegedly cheating borrowers out of their repayment rights. The allegations are that Navient directed struggling borrowers towards paying more than they had to, misallocated borrowers' payments, and in some cases falsely reported borrowers had defaulted on their loans causing tremendous credit score damage. So apparently not all student loans provide tremendous assistance like we hoped.

These kinds of cases seem like they will last forever, in the meantime, people will still be denied for loans or will pay too much for the ones they can get. Allow us to provide a better solution for this case and many others, please get those referrals on over from your personal URL PORTAL.



Devin Norcross
Regional Director and Manager National Credit Care
Cell: (303)500-7697 Office: (866)595-6313 Ext. 403 Fax: (877)754-5724 Email: devin@nationalcreditcare.com http://www.nationalcreditcare.com/

Credit Tip from National Credit Care

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"Types of Credit - 10%

This 10% of your score is made up of criteria where almost nobody has
a correct idea of what to do. If you have ever heard those incorrect
statements such as: 'You should have at least three credit cards,' 'American
Express is a great revolving account,' or my favorite, 'You should have a 1
to 1 ratio between revolving and installment accounts' (this would mean
my sister, who at one point had every store card known to mankind and
would need to buy up half the real-estate in town to keep her
calculation requirements), this section is for you.

The best score is certainly not about quantity but rather quality. Ideally,
you want to have one account in every category. I'm not just talking
about Revolving, Installment and Other either. Installment accounts can
be broken down further than that. A close to perfect mix is going to be: a
credit card (R), an automobile loan (Auto), a mortgage loan (Mtg), a
student loan (I), and an "other loan" like American Express (O). American
Express that has no limit and is considered an "Other" account, not
revolving as one might assume, as it has no limit to calculate its
utilization.

The reasoning behind all this is to show you can carry a variety of loans
(shows responsibility) but not too much of any one kind (too much risk).
This doesn't mean you should start opening and closing your loans left
and right to try to get this mixture correct. If you do, all of the other
sections are going to be impacted just as much, which could be good or
very bad. However, to receive guidance, you certainly may send your
referrals our way by using your URL PORTAL."

Devil Norcross

Regional Director and Manager

National Credit Care

Cel: (303)500-7697

Office: (866)595-6313 Ext 403

Fax: (877)754-5724

Email: devin@nationalaecftcare.com

http://www.nationalaecftcare.coni/

Realtors: On a more serious note, prep your buyers and consider renovations!

I hope you have success this weekend while showcasing listings and/or showing buyers homes.  If you are doing neither, it likely means that someone is covering for you, so you can have some leisure time.  Please enjoy it.  Either way, here is some information you will find helpful…

Though most of my borrowers are owner occupants and the occasional 2ndhome borrower, the 5 to 10% of investor loans I do typically fit a very specific list of parameters.  There is a list below, but to make it easier, here are basic investor guidelines for secondary mortgage lenders (that is most of us). 

-      Must have a credit score above 720 (we will go to 620).

-      Must have no more than 3 mortgaged properties.

-      Should be able to put at least 15% down of acquisition.

-      Should have 3 to 6 months PITI reserves for every other investment property they currently own.

The rest of the rules are pretty much similar as most other conventional guidelines. 

You should send your renovation buyers, regular non-cash buyers (and maybe those too) to me because…

Experience – As you know, experience is powerful.  When you and your customers run into tricky scenarios, loan problems, or unique properties, experience is the one thing that trumps all else.  Closing loans since 1988, over 2,200 closed mortgages (60% of those being renovation), and 3 renovation loans personally, it is more likely than not that I will have a solution to your transactional challenges, and especially make the easy ones extremely smooth.   I created the first CE Class on renovation lending in 1993, and still teach that to realtors today that want to increase enhance their toolbox or resources to help clients. 

Products – When it comes to RENOVATION LENDING, no one has more products than we do at PrimeLending.  We have products for…

Owner Occupants - FHA 203K  /  HomeStyle  /  VA Renovation  /  EZ-C  / Jumbo Renovation  /  Reno/Perm  Escrow Repair

Investors - HomeStyle  /  EZ-C  /  Escrow Repair

2nd Home Borrowers – HomeStyle  /  EZ-C  /  Reno/Perm  /  Escrow Repair

Complete list of reno products below…

Process –Once a loan is applied for, our processing and underwriting teams offer world class service with manual and automated communication systems in place to keep you informed throughout the loan process.  Additionally, I am available by phone 7 days a week to answer important questions to keep transactions moving forward.  Since we follow automated underwriting guidelines we have fewer approval conditions than most lenders.  Being a direst lender is always preferable, and we are.  For the tech savvy clients, borrowers can apply for loans and get loan status through all available E channels.  For non-tech users, we can also do loans manually.  Paper and pen still work!    

Service - All introductions start with a LOAN CONSULTATION to map out and understand exactly what the borrower wants, qualifies for, and what products are the best fit.  My renovation website www.rdayhouseperfect.com is a valuable resource for you and your buyers, to get qestions answered 24/7.  Once a loan closes, our draw department managers the draw process faster, smoother and with less hassle than any other lender!  This is important to you as an agent, because that last thing you want happening after a loan closes is to hear from your buyer about how they can’t get their contractor paid.