You never know where the next nugget of inventive, genius financial advice will emerge. Most people have relied upon their financial advisors, corporate executives, educators and parents to glean the most heady financial advice, however in today’s market keeping your ears and eyes open can be beneficial.

For example, take the guy from the Papa John’s commercials. Recently Money Magazine* interviewed some of the most influential, subjects of success stories in the nation and John Schnatter, Founder and CEO of Papa John’s Pizza was one of the chosen few.

So what does the pizza guy have to say about financial security and staying afloat during these uncertain times? Plenty. His advice is to “live below your means and be frugal.” Sounds pretty old school and something your dad would have told you, right?

Schnatter says that it was his grandfather; he affectionately referred to as “Papa” who pointed him in the direction of being frugal and fiscally conservative, which ultimately helped him to launch the multi-million dollar empire he’s at the helm of today.

He cites the example of when he used to go to the hardware store with his Papa, and noticed that his grandfather would always charge his purchases. The young Schnatter asked his grandfather why he always charged items when in fact he had the money in the bank to pay.

His grandfather’s response was, “I have money, but my credit is good.” Schnatter admits that at the time he had no idea what Papa was talking about until later in life when reflected upon the situation.

Schnatter says this lesson wasn’t that it was good to borrow money, but rather if you borrow money, you should pay it back promptly in order to maintain good credit. Pretty astute advice from one of America’s favorite pizza guys.

And what’s the point of having good credit? Good credit is the gateway to obtaining the American dream. With today’s stringent lending standards, it’s impossible to obtain a traditional mortgage with bad credit. Plus, rates are at historical lows and home prices continue to drop…now is the best time to purchase a home and fulfill the American dream.

If your credit is less than stellar, there are a few things you can do to revive it:

• Check your credit report for inaccuracies—even the smallest error can drop your score several points. Yes, you can do this for free online.
• Pay your bills on time, starting with your mortgage. If you are having trouble meeting invoice deadlines, contact your creditor to work out a plan. It’s better to be proactive and communicate than ignore a possible problem.
• Reduce the number of credit cards you have—many people have several cards that they don’t use. Get rid of them…they are only dragging you down.
• Avoid companies that tell you they’ll fix your credit for a fee. Credit repair companies may have good intentions, but in many cases if you are charged a fee you need to be careful that you are not being taken advantage of.

Above all, ask for help when in doubt. The reason why so many of your friends and neighbors turn to the professionals at AmeriFirst is because we work with clients just like you on the whole picture. Credit score a little eschew? Our loan experts can offer advice and an action plan to put you back on track so you can achieve the American dream of home ownership.

Come by for a review of your financial situation…heck, we can even order pizza. Call us today at 800-466-5626 today.

* Schnatter, John. Money Magazine. Pg. 31. April 2010

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Steve Cartwright’s introduction to the home market was with a hammer and two-by-fours at a construction site. Cartwright spent a good amount of his career building homes from the ground up, until four years ago when he turned his attention to the financial side of the business. “My wife works for AmeriFirst and told me that there was great opportunity to help people at this company.”

When Cartwright joined AmeriFirst he quickly found his niche as one of its first-time homebuyer “experts.” “Having a background in building and development, I have insight into every aspect of what’s needed to build a home.”

“I apply my previous experience in the building industry to working with first time homebuyers especially. It’s a difficult situation when you’ve never purchased a home. You can do all the research and educate yourself but at the end of the day, you still don’t know what it’s like to go through the financial and emotional process of purchasing your first home.”

Cartwright explains that he acts as both loan officer and confidant to first time homebuyers. “I act as their tour guide through the process. When they come to me, I go beyond helping them obtain a loan for the best possible rate; I educate the buyer line item by line item about ways they can improve their credit score and what to look for when searching for the perfect home.”

For example, Cartwright says that he digs deeply into his experience as a builder to point out some of the potential pitfalls of home ownership. “If you’ve never been a homeowner there are plenty of things you may not consider happening, such as what to do if you have a plumbing leak.” Other issues such as roofing, heating and cooling, electrical headaches and structural issues are also discussed and how as homeowners this is a financial responsibility that needs to be budgeted for.

He adds that he and his clients also take a sharp look at the homebuyer’s credit report. “This may also be the first experience the borrower has with examining their credit report. I take great pains to detail each aspect and item on the report, even if their credit is fine.”

Cartwright says that he explains how each area of the credit report impacts the borrower’s credit score and how the borrower could improve that aspect. For example, if paying bills on time is a problem, the homebuyer will see a drastic drop in score. Cartwright might refer the borrower to a credit counselor or offer suggestions on ways to meet bill paying deadlines each month.

“It’s all about walking them through the entire process that makes a difference to my clients. I care and see everyday ways to make the first time home buying process clearer and a journey filled with education and opportunity.”

If you’re considering a new home purchase, meet with Steve, one of AmeriFirst's top loan professionals. Contact him at (269) 488-9531 or drop him an e-mail at stevecartwright@amerifirst.com.

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It was a dark stormy night and the Collins family was huddled into the deepest recess of the house waiting…hoping it wouldn’t happen, but knowing it was inevitable.

Perhaps next you are anticipating a man with a hockey mask and a chain saw to smash through the finely appointed French doors; however it’s much worse, more dire. It’s….foreclosure.

The horror of foreclosure has befallen our friends, family and neighbors across the country. At least one in five homes is currently experiencing foreclosure and the forecast still isn’t sunny.

According to AmeriFirst mortgage expert, Colleen Marie, it isn’t over until the fat lady sings and she isn’t singing anytime soon. Marie, a 17-plus year industry veteran has seen it all in the home business but this is a first.

“I got into the business when only four loan types were available. You had to have money to back your purchase and a job. Guidelines were incredibly strict, but financial institutions knew that when they made a loan, the borrower could pay.”

“Then came the driver’s license loans, which ultimately contributed to the mess we are currently experiencing. Essentially, everyone got a loan if they had a driver’s license. We began to experience the market fallout so we went from super strict guidelines to the other extreme.”

Marie reflects on what is concerning her—the next round of foreclosures. “What makes the current situation especially depressing is that the next round of foreclosures are homeowners with A credit paper.”

She says that the only way to hit bottom and find a way out is to stop the foreclosures. “The problem is that people can’t make their payments because they’ve lost their job. Instead of working with homeowners and taking a partial payment or allowing the homeowner to rent the home from the financial institution, banks continue to foreclose.”

“Foreclosures are impacting the home value market, which impacts loans. People can’t refinance their homes because their values are lower than what they paid.”

“The market is also being choked because now guidelines are so extreme, so strict that now no one can get a loan.”

Not wanting to sounds like the grim reaper, Marie insists there is a silver lining amid the mess. “Rates are amazing right now and there is a lot of opportunity for those who have solid credit and money to back their purchase.”

She adds that the homebuyer tax credit has also had a positive influence. “People are leveraging that money pay off debts or make improvements.”

Overall, we are going to have to ride this “perfect storm” for a little longer. Marie’s best defense against a falling market is education and learning how to communicate with your financial institution.

So if your hands are clasped firmly over your eyes, move your fingers aside so you can peek out between them. It still may be scary out there, but keep your eye on the prize—the bottom may be right around the corner.

If you'd like to talk further with Colleen, one of AmeriFirst's top loan professionals, contact her at (269) 968-6100 or drop her an e-mail at cmaire@amerifirst.com. You'll be glad you did.
 

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Its tax time again folks, but this year homebuyers are feeling a little more anxious to lay down their cash for a new home. Like Cinderella at the ball, your homebuyer tax credit will go “poof” at the stroke of midnight on April 30th.

Buyers have been lapping up one of the many benefits of purchasing a home. In addition to historically low rates and discounted prices, established buyers have been enjoying a $6,500 tax credit for buying a more expensive home and first time homebuyers have raked in as much as an $8,000 tax credit.

As the deadline nears, the market may become flooded with buyers interested in cashing in before their tax benefit is history, however the experts at Money Magazine say not so fast.

Take into consideration whether home prices have bottomed out in your area.  If you want to buy in a neighborhood that hasn’t bottomed out, you may want to reconsider jumping into anything. A substantial price drop would certainly more than offset what you will receive from Uncle Sam’s tax credit.

Also, if you already own a home and are coming late to the game you may not be able to get out of your current home in time.  It’s certainly not worth it to carry two mortgages just to receive that $6,500 tax credit, especially since the average home sits on the market for approximately 110 days before being sold.

Sure, you can play chicken with the market and hope that with the uptick of buyers wanting homes, yours could be one that sells fast.  But do you want to gamble in hopes that your home sells in harmony with your purchase?   If you want to know how long homes are taking to sell, check out http://www.zillow.com and click on market reports to get the lowdown on what’s selling and how long it’s taking to sell.

But before you do anything, call one of our mortgage professionals at AmeriFirst. Because you need to act fast, you should get pre-approved for a mortgage before you make an offer on a home.  Being pre-approved will not only start the mortgage process faster but will put you in a more positive light in the seller’s eyes. 

We know you are ready to get pre-approved. That’s why we made it so easy!  Click here to complete our online application or we can do this the old fashioned way and you can simply call us at 800-466-5626 today. Either way, we look forward to hearing from you soon!

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