Trust Financial, Inc. Provides Tips for Keeping Your Home During Falling Real Estate Market

Hebron, IN (PRWeb) April 14, 2007 -- The National Association of Realtors stated that they expect existing home prices to fall slightly in 2007 for the first time in at least 38 years. In it's monthly housing outlook, the group claims that tighter lending standards will cut into home sales even further than they originally projected.

Even if existing home sales fall from 2006 levels, they will still be in the top 5 years of sales due to the high volume that we have experienced recently. Meanwhile, the price for new homes is expected to rise a meager 0.4%, offering some hope for the construction industry.

The brunt of the pain may be felt by existing home owners who are hoping to sell or refinance this year. With the lenders tightening their standards on a near daily basis, home owners with less-than-perfect credit may find it more difficult to get financing at a reasonable interest rate, if they are able to secure financing at all. The ones most likely to suffer the most are the home owners with an adjustable rate mortgage that is getting ready to adjust that are unable to get refinanced, either due to poor credit scores or because they have to "state" their income. They may see their monthly payment increase by hundreds of dollars, to a level that they cannot afford, and if they have a "fixed income" from a pension or social security, they may be forced to choose whether to pay the mortgage, pay for their prescriptions or put food on the table. Many of these borrowers will face foreclosure.

Trust Financial, Inc. offers some tips for current home owners and future buyers include:

•    Pay your bills on time if at all possible. If money is tight, pay your mortgage, your auto loans and then your unsecured debt (credit cards) in that order. If you foresee financial issues that may cause you to be late with payments, call your creditors and explain the situation to them. Often times they are willing to help if you contact them. Do not attempt to avoid them, as they will not just "go away".

•    Deal with a lender who is a member of the Nation Association of Responsible Loan Officers. There has been a lot of negative press about the small number of unscrupulous loan officers who are preying on unsuspecting and desperate borrowers. The members of NARLO pledge a Code of Ethics that they will put the borrower's needs first and help them get into the RIGHT loan program for their particular situation.

•    Find out what is in your credit report. It is estimated that over 60% of the reports have errors in them and that 25% of those are serious enough to be turned down for a loan. Look for clues of Identity Theft, such as credit cards and loans that you did not apply for (that may be late or in default) or address changes to somewhere you have never lived.

•    Deal with a knowledgeable mortgage planner that knows how to handle credit errors and other items that may be keeping your score low. Be cautious; while a number of "Credit Repair" companies are legitimate and helpful, some have been shut down and charged with fraudulent activity. Make sure you consult with someone you trust, including the person doing your loan. Many have only a basic knowledge of credit repair and may actually cause your score to go down further.

•    Be proactive, not reactive. You can get a free copy of your credit report once a year at annualcreditreport.com. Look over it thoroughly and correct any errors as soon as possible. Since it can sometimes take months to clear up problems, make sure you do this BEFORE you need the loan. Remember, the higher your score, the better the interest rate you may qualify for and the more choices of loan programs you have.

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