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July 2014

Biggest Credit Myths, Mistakes, and Misconceptions


Gerald Santoro
Mortgage Banker
NMLS# 630694
198 Route 9 North
Manalapan, NJ 07726
732-800-0060 : Direct
866-475-3094 : Fax
732-241-4015 : Cell
“We Lend In All 50 States”


[email protected]


From: Gerald Santoro

Sent: Tuesday, July 29, 2014 11:45 AM
To: Gloria B ([email protected])
Subject: Biggest Credit Myths, Mistakes, and Misconceptions


Biggest Credit Myths, Mistakes, and Misconceptions
credit is well worth the effort it takes to both achieve and preserve it. If you have good credit, the following tips will help you keep it that way. If you are looking to improve your credit, however, now is the time to get started. Give us a call. We'll
review your credit and find out exactly where you stand. In the meantime, if you plan on entering into a loan transaction in the next 6 to 12 months, you simply cannot afford to make the following credit mistakes: 

Don't fall behind on existing accounts. This includes your mortgage and car payments. One 30-day late can cost you anywhere from 30-80 points or more depending on the other factors being reported on your credit reports.

Don't pay off old collections or charge-offs during the loan process. Paying collections will decrease your credit score immediately due to the “date of last activity” becoming recent. If you want to pay off old accounts, do it through closing, and make
sure that 1) you validate that the debt is yours, and 2) the creditor agrees to give you a letter of deletion. 

Don't close credit card accounts. If you close a credit card account, it will appear to FICO that your debt ratio has gone up. Also, closing a card will affect other factors in the score such as length of credit history. If you have to close a credit
card account, do it after closing, and make sure that it is an account you've opened more recently. Remember, 10% of your credit score is made up of your Mix of Credit, so it is important that you have at least 1-2 major credit cards open and in good standing.

Don't max out or overcharge your credit accounts. This is the fastest way to bring about an immediate drop of 50-100 points in your credit score. Try to keep your credit card balances below 30% of their available on your monthly statement, and especially
during the loan process. If you decide to pay down balances, do it across the board. Meaning, make an extra payment on all of your cards at the same time. 

Don't consolidate your debt onto 1 or 2 credit cards. It seems like it would be the smart thing to do; however, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned
above. If you want to save money on credit card interest rates, wait until after closing. 

Don't do anything that will cause a red flag to be raised by the scoring system. This would include adding new accounts, co-signing on a loan, or changing your name or address with the bureaus. The less activity on your reports during the loan process,
the better. 

Don't do it alone. If you feel that the credit challenges you're facing are too much, or you don't have enough time to do the work necessary to improve your own credit, don't lose hope and give up. Give us a call. We can help. In many cases, small changes
to your credit profile could yield big results that could save you thousands of dollars on your mortgage. However, if professional credit repair does become necessary, we'll gladly provide you with a referral to an experienced professional credit repair specialist
you can trust.
Gerald Santoro
Mortgage Banker
NMLS# 630694
198 Route 9 North
Manalapan, NJ 07726
732-800-0060 : Direct
866-475-3094 : Fax
732-241-4015 : Cell
“We Lend In All 50 States”


[email protected]

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Monmouth County Real Estate Market Predictions for 2014-2015

Will home prices be higher in twelve months? 

IN Monmouth County I expect prices to remain fairly consistent over the next six to nine months. I do not see a big dip in values or a rapid increase in market values. What I predict is a very small gain more than likely to occur in the spring of next year.

There have been some towns that have been stronger than others. Certain price points and towns have lower inventory levels than others and this has kept values moving in a positive direction in these communities. We also see other places that are not quite as strong and inventory might be a little more plentiful. Real estate sales are always driven by things such as location and desirable schools. It is those communities that have these factors going for them that are continuing to thrive. 

Should a prospective home buyer purchase a home today, even if they may be in a better position to do so in twelve months? 

It is always better for a buyer not to make the jump into home ownership until they are completely ready to take on that financial responsibility. A buyer needs to really go over their finances and determine whether waiting would make more financial sense. The X factor is interest rates. As you know right now they are extremely attractive and almost gotten back to record low territory. When interest rates jump it certainly affects a buyer’s purchasing power.

Next year I believe there will be higher rates . When you look at the big picture it makes sense that if a buyer feels they are ready financially to purchase they should give strong consideration to do so. Not only will they lock in a low interest rate but more than likely build equity as home prices increase. 

Most important thing a buyer can do before they even consider putting a deposit down on a home is to understand what and how to prepare to get a mortgage. Buyers should realize a lot of time and energy goes into being prepared to take on homeownership.

Home buyers are having a tough time due to lack of inventory. Will sellers come out of the woodwork next year?

I do expect we will see more sellers putting homes on the market for the Fall but the bulk of this inventory increase won’t happen until the Spring of 2015. There are a number of owners that are just starting to come back into the black after having little or no equity. With market values continuing to rise over the last year and a half I expect more people to enter the market. There are also some folks who will see the opportunity to make a move up as long as the interest rates continue to remain low.

Final thoughts for buyers considering purchasing a home in the next six to twelve months?

One of the most important things to consider is to know exactly what you are getting yourself into. There are many buyers who will think about the fact they will be paying a mortgage, home insurance and taxes but oftentimes forget about all the other expenses that come along with owning your own property.

When purchasing a home never forget there will be extra home buying expenses that you didn’t plan for. As a new home owner there should be additional money set aside not only for all the standard costs associated with buying a home but the incidentals as well. Many new purchasers forget about these things and end up being house poor to the point where they become a slave to their property.



AHCOC Farmers' Market FRIDAY

Atlantic Highlands Chamber of Commerce News Blurb

  Farmers' Market - Friday !!

Come Visit the Atlantic Highlands
Chamber of Commerce
Farmers' Market this week.
Fridays Noon to 6pm
10+ Vendors will be in
Veteran's Park on First Avenue

Voted 2nd Best Farmers' Market in Monmouth County by the readers of Monmouth Health & Life Magazine.

Chuck Lero, President
Atlantic Highlands Chamber of Commerce
732 872-8711

Contact Information 
  Office - 732 872-8711 [email protected]