November 16, 2003

It's a jungle out there! The purpose of this ezine is to guide you through the swamp and onto the mountaintop. Life is a journey; Solidgoldmonthly is here to bring provisions and guide maps to assist you in finding the path of success.

This is the one year anniversary of Carolyn and I starting our online business. Have we made any money? No. Have we learned anything? The answer is a resounding YES. We have learned that it is very difficult for the small business person who is honest to make money online.

It seems that the majority of people come to the internet searching for instant gratification and instant rewards. They will throw their money at any scam artist that promises to make them an instant internet millionaire. They are not interested in hearing that it takes dedication and hard work to succeed. That is unless you want to joint he ranks of the scam artists and charlatans.

We appreciate those of you who have agreed to receive our ezine. Hopefully you have found our ramblings informative and useful. Because of you we have decide to stick it out another year and see what happens. In your honor we have a special gift for the first fifty subscribers that send us an email.

Past issues of the newsletter have included articles on the dangers of Identity Theft. We have purchased fifty copies of "Someone is Watching You", a 96 page paperback book that details the inside story of this epidemic that is sweeping America. It is yours FR*E, we'll even pay the S&H, for just being one of the first fifty requests to solidgoldhome@charter.net.

We have continued our series on Identity Theft with a related article explaining your credit score, how it is determined, and how it can be improved.

We try to stay away from politics since that is not the purpose of this ezine. However we thought the judge's statement at the end of the "Shoe Bomber" trial needed sharing. Especially since we never saw or heard this reported by the media.

Thank you for agreeing to receive our ezine. Please feel free to forward this issue to your friends. Comments and article submissions are always welcome. Our email address is solidgoldhome@charter.net. If you wish to subscribe or view past issues please visit our website at Solidgold Home Business. If you have not already downloaded your fr*e ebooks the email addresses are below.

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Contents

Article - Your Credit Score

Thought - The Highway to Success is a Toll Road

Computer Tip - Disable Instant Messanger

Ruling - Shoe Bomber Trial

Operation Adopt a Soldier

Frequently Asked Speeding Ticket Question

Interesting Link

Fr*e Ebooks

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YOUR CREDIT SCORE

Most mortgage loans on the market today are credit score driven with the exception of FHA (one of the best loan programs on the market for people with minor issues that lower scores) and a very few non- conforming loans. Credit scores range from 300 to 850. A rule of thumb: The higher your score, less risk, lower interest and less down payment required. Lower scores could require a larger down payment and could have higher interest.

Credit scores are just one factor but here is the basic break down for loan qualification:

A score of 620 and above will get you into a conventional conforming loan with the lowest rates available (Fannie Mae and Freddie Mac). These rates are 1% above the 10 year T-Bill.

In the non-conforming market credit scores will determine your interest rate. You may be in this market for many reasons, not just score. It could be because; your loan amount exceeds conventional guidelines (jumbo), the house does not qualify, no down payment, high debt ratios, credit history issues, or you could be self employed and don't show enough income to qualify.

Credit scores above 620 will get you the lowest rates in this market which is 1 to 2 points higher than the conforming market, depending on the type of loan you are getting.

Scores from 580 to 620 could put you as much as 3 to 4 points higher in rate, and you can still qualify for a zero down program.

If your score is below 540 you will need at least 20% down and the rate will be 4 or more points higher.

Credit Payment History: Your payment history contributes about 35% towards your overall credit score but history is also a qualifying factor on it's own. Underwriters look at the last 7 years and if there are no Glaring issues such as bankruptcies or collections or judgments they are most concerned with the last two years. This is what the underwriters are looking for:

Mortgage/Rent: This has to be your number one priority. If you have been more than 30 days late on your rent or mortgage in the last 12 months you will not qualify for a Fannie Mae, Freddie Mac, or FHA/VA loan. Again, there are sometimes exceptions. If you have a very high score, lots of assets, and a legitimate excuse. If you can't get a waiver for a late mortgage payment there are still loans available to you in the non-conforming market. The interest rate will depend on how many times you have been late.

Car payment/installment loans: Your history should reflect no 60 day late payments and no more than one 30 day late to get a conforming loan. The non-conforming loans allow these and again the rate depends on how many late payments you have had.

Revolving accounts (credit cards): You must not have any 60 day "lates" and no more than two 30 day "lates" for a conforming loan. Non-conforming loans do allow them and again the rate is dependant on the number.

Collections, Judgments, and Liens: Fannie Mae, Freddie Mac, FHA and VA require that all be paid in full and they prefer that they be at least two years old. FHA will sometimes make an exception on the length of time or if they are on a current payment plan in which case all other things must be good. Typically, the non-conforming market does not care if they are paid off or not as long as they do not impact title. Some non-conforming lenders want them paid off if they are over a certain amount. This market is a maze of guidelines and they differ from one lender to another. This is another reason why you always want to use a broker.

Bankruptcy: Fannie Mae and Freddie require 4 years from discharge date. FHA only requires 2 years and a good excuse, and reestablished credit. Actually, you can Qualify for an FHA loan if you are still in chapter 13 (for at least a year) have been paying on time through the courts, and you get court approval which does happen often!

Non conforming lender requirements vary quite a bit. As a general rule they do want to see reestablished credit unless you are putting 20% down. There are some lenders that will lend with one day out of discharge. Your credit score is very important on these programs. Again, you need a broker to sort out the details for you. Guess what, that's free, and no obligation. They will look at your entire portfolio and if they can't get you in something now, they will counsel you on the steps you need to take to get in a loan later. Be sure you seek out a broker that has ALL the products on the market including FHA.

Foreclosure: Generally, a foreclosure of your primary residence must be at least three years old and have been caused by circumstances out of your control: such as, death of the primary wage earner, layoff, or long term serious illness. Non-conforming lenders do vary but will normally require a substantial down payment if it is less than 3 years old.

Repossessions: The guidelines on this are about the same as a foreclosure except that it cannot have a deficiency balance for a conforming loan. The non-conforming market doesn't care about the balance if it is more than three years old and again, their guidelines vary from one lender to another.

Student Loans: Defaulted student loans will haunt you for the rest of your life. Unless they are re-affirmed or paid off you will never get a conforming loan. However, the non-conforming market generally does not care about them at all except in extreme cases to the tune of $50k or more.

Previous Marriage??: Be careful here. The conforming market could care less about your divorce agreement with respect to your debt. If you signed, you are still accountable. FHA will sometimes make a wavier if you can show the divorce decree that states it is the other parties responsibility and all other things are good. (these debts will also affect your debt to income unless you can prove the other party is paying with 12 months cancelled checks.) The non-conforming lenders will normally except the divorce decree.

Credit Depth: Generally this term refers to how many trade lines you have, how long you have had them and their amounts. Most lenders want to see at least a two years history and at least 4 trade lines. Some require one of those trade lines to have had a balance over a certain dollar amount ($5,000). In the non-conforming market these requirements vary between lenders.

You can see how poor credit will cost you a lot of money in higher interest. It is important to take care of your credit and monitor often as it often contains errors or fradulent entries as the result of identity theft.

There are numerous ads on the internet for a FREE CREDIT REPORT. These a a come-on for a credit monitoring service. The problem is that is all you get, acopy of your report and no assistance if there is a problem.

Why sign up for their supposedly FREE program when for the same money you can receive your credit report, your credit score, and assistance with any problems you may have as a result of Identity Theft including legal fees if you are sued. We all know that there is no FREE lunch. Call us at 800-550-3308 and we wll send you the details.

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THE HIGHWAY TO SUCCESS IS A TOLL ROAD.

Whatever you want in life, you must give up something to get it. The greater the value, the greater the sacrifice required of you.

There's a price to pay if you want to make things better, and a price you'll pay for just leaving things as they are.

Nothing worthwhile comes easily to anyone. Work, continuous work and hard work, is the only way to accomplish results that last. Don't let the fear of change stop you from pursuing your dreams.

There is no success at bargain basement prices. You must pay a price for success. ©2003 by Max Steingart

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DISABLE INSTANT MESSENGER

Windows Instant Messenger, which is part of Windows XP, can be pretty intrusive. You can disable it. Open Windows Explorer. Find the Messenger folder, under Program Files. Change the name to Messengerx. If the program is open, Windows won't let you change the name. So close the program. If necessary, click Tools>> Options>>Preferences. Clear the box that says, "Run this program when Windows starts." Reboot the computer. Change the Messenger folder's name. That's it!

Want to receive more tips like this? Then join the Newbie Club

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RULING - SHOE BOMBER TRIAL

January 30, 2003 United States vs. Reid.

Judge Young: Mr. Richard C. Reid, hearken now to the sentence the Court imposes upon you.

Let me explain this to you. We are not afraid of you or any of your terrorist co-conspirators, Mr. Reid. We are Americans. We have been through the fire before. There is all too much war talk here. And I say that to everyone with the utmost respect. Here in this court, where we deal with individuals as individuals, and care for individuals as individuals. As human beings, we reach out for justice. You are not an enemy combatant. You are a terrorist. You are not a soldier in any war. You are a terrorist. To give you that reference, to call you a soldier, gives you far too much stature. Whether it is the officers of government who do it or your attorney who does it, or that happens to be your view, you are a terrorist. And we do not negotiate with terrorists. We do not treat with terrorists. We do not sign documents with terrorists. We hunt them down one by one and bring them to justice.

So war talk is way out of line in this court. You are a big fellow. But you are not that big. You're no warrior. I know warriors. You are a terrorist. A species of criminal guilty of multiple attempted murders. In a very real sense, State Trooper Santiago had it right when you first were taken off that plane and into custody and you wondered where the press and where the TV crews were, and he said you're no big deal. You're no big deal

Make no mistake though. It is yet true that we will bare any burden; pay any price, to preserve our freedoms. Look around this courtroom. Mark it well. The world is not going to long remember what you or I say here. Day after tomorrow it will be forgotten. But this, however, will long endure. Here in this courtroom and courtrooms all across America, the American people will gather to see that justice, individual justice, justice, not war, individual justice is in fact being done.

The very President of the United States through his officers will have to come into courtrooms and lay out evidence on which specific matters can be judged, and juries of citizens will gather to sit and judge that evidence democratically, to mold and shape and refine our sense of justice. See that flag, Mr. Reid? That's the flag of the United States of America. That flag will fly there long after this is all forgotten. That flag stands for freedom. You know it always will.

We need more Judge Youngs and fewer of the judges that are allowing frivolous lawsuits to make a mockery of our justice system.

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OPERATION ADOPT A SOLDIER

Regardless of your feelings about Iraq there are American men and women in harm's way this Christmas. They deserve our support and appreciation. Please join Operation Adopt a Soldier

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FREQUENTLY ASKED SPEEDING TICKET QUESTION

"The officer was hiding behind bushes in a private driveway. Isn't this illegal? I heard there was a law they had to be in plain sight. Where can they run radar."

The answer is the same as the joke about where a 1000lb. gorilla sleeps. Anywhere he wants to. It is legal and no he does not have to show you the reading on the radar gun.

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INTERESTING LINK

Save on airfare, hotel rooms, and cruises. Download your own travel agent search engine for FR*E. Boarding Pass

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FR*E EBOOKS

For The Bluelight Special send a blank email to

mailto:bluelightspecial@sendfree.com

For Ebay Marketing Secrets send a blank email to

mailto:solidgoldebay@sendfree.com

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Thank you for sharing your time with us. We know that you receive a lot of email and that your time is valuable. We hope that you will find the information in Solidgoldmonthly worth reading and that you will continue to allow us into your lives.

Please visit our site often as new features are added on a regular basis. Wayne and Carolyn