Davemuti’s Weblog

You are probably thinking, not another made up “day” to highlight some obscure thing or sell greeting cards but think about it, your mortgage and credit report are the two things that have the biggest impact on your monthly expenses and your cash flow and you probably don’t review or monitor them. Being proactive with your finances is how you can make life happen. Most people drift through life and let things happen to them. In essence they are in a “reactionary mode” but based upon my experience those that take a “proactive approach” to life are usually better off.

Okay, perhaps you are starting to think that maybe this is something to consider but you are not sure of the benefits from reviewing your mortgage and credit report? Each year a lot can happen in your life and you need to ensure that the program you and your mortgage planner selected at your closing still makes sense. Here are several reasons why we are making this push to have everyone review their situation each year:

These are just a few reasons for reviewing your mortgage and credit. Many other advantages may arise during your review such as tax or retirement planning. Some of you reading this are thinking you don’t have to worry about a bad credit score because you have never missed a payment and you have excellent credit. But how can you be so sure? 79% of all credit reports contain some type of error. Doesn’t it make sense to ensure yours does not! By counseling with a mortgage planner on an annual basis you can help protect yourself against mistakes which can lead to high credit card fees and even uncover identity theft by identifying any unauthorized charges.

The Greek Philosopher Socrates advised to regard your good name as the richest jewel you can possibly be possessed of — for credit is like fire; when once you have kindled it you may easily preserve it, but if you once extinguish it, you will find it an arduous task to rekindle it again. Today that is truer than ever.

Improving your credit score is kind of like getting ready to run a marathon. You can’t just sign up today and expect to run tomorrow. If you have a poor credit history or if there is inaccurate information on your report it can take months to repair and correct and this will impact your monthly expenses.

Whether renting a new apartment, applying for a credit card, a mortgage or even homeowner’s insurance (yes, homeowner’s insurance!), your credit score will determine the interest rate or premium you are quoted. In essence your credit score has become the filter many industries use to decide whether they want to do business with you and at what price so it is very important you stay on top of your score.

As the saying goes, most people don’t plan to fail, they simply fail to plan. It happens all too often in our business. But if clients regularly monitored their credit scores we would be able to save them thousands of dollars on their mortgages. This is essential: if you are planning to buy a home, don’t just go and look at houses, make an offer and then get a mortgage. You may not like what you are offered as a result of your credit score. My suggestion is to plan ahead for this event. The same holds true if you are thinking about refinancing; start with a mortgage and credit review before you begin the process. If you would like more information take control of your finances, go to www.mortgageswhatyouneedtoknow.com/resources.html for free tools to help you better understand your credit scores and for systems to help you monitor your score.

Why not begin your annual review right now! I know it is probably not the anniversary of your mortgage, but why not look today to see if you can improve your situation. Not sure where to start, use this Mortgage Check-Up form for a self analysis or better yet fax it in to your mortgage planner for a professional consultation. Have them run your credit after they have opted you out of the trigger lists and really start to make changes in your financial outlook. Make Life Happen! Review your mortgage and credit report every year to Take ControlSM of your financial future and ensure you are in the best position possible.