Business Credit Services Inc. is simply put a credit builder service program for traditional businesses. Created by successful entrepreneur David Gass the system is touted to help the business owner and entrepreneur, to get access to grantors for building their businesses as well as solid mentoring and coaching. Here is an honest review of this program.
Long time entrepreneur David Gass is the creator of the Business Credit Services Inc. program and opportunity. Based on helping the traditional business owner and entrepreneur build their credit and access credit they might not already have, can this program truly help today? The cost of the program is somewhat substantial and offers a simple 5 step program through the following steps;
1. Getting Credit Ready
2. Coaching and Mentoring for Registering for Credit
3. Access and Start Receiving Credit Lines
4. Pillar 3 Credit from private lenders and such…
5. Continuing coaching and Mentoring to grow your Business
Today many businesses are actually at a stand still, especially smaller businesses, and looking for ways to build without increasing the outlay of money is truly needed. Borrowing investment capital through lines of credit should be considered from time to time as you build your business, but only what you need, not what you want. The problem today is that not only are individuals maxed with their credit, but the small business owner cannot truly access what is supposed to be available through these so-called credit lines.
BCS does have the business service and opportunity to help those entrepreneurs through partnering and connecting them with lenders whether they are private lines or companies and banks. The coaching and mentoring can always be an added plus when it comes to building a business at first. However, when it comes to coaching and mentoring and paying for this type of service it is a MUST TO COMPLETE your due diligence. For many coaching and mentoring with a business service has been a nightmare that has cost more than what a loan could have ever cost…their time.
Business Credit Services Inc. is a legitimate credit building service program, but is the cost truly worth it? That will be entirely up to you the business owner. In these economic times building your business is not actually a bad idea, getting loans through banks and private lenders however could be. Learning to effectively market online and harnessing the power of the internet can not only prove to truly drive prospects and clients to your business, but be a very low cost investment into your business without the worry of paying back a large loan.
Chances are you have seen the mortgage meltdown within the past year on various forms on news. Who hasn’t? Whether you were watching the evening news, reading the newspaper, have heard various stories from friends and family members, or are involved in it yourself.
Here are some of the problems that occur in the mortgage industry and some insight on what to watch out for:
1) Stated income loans – These are loans for people who say they make x number of dollars however they cannot prove it. In turn, the loan officer qualifies them at this usually higher than realistic income and they get into the home. When a financial problem arises, they are unable to make their mortgage payments. If you cannot afford the payment with the income you make right now it is not a good idea to get into the loan. You might want to consider looking for something more affordable.
2) Borrower showing up for closing and the rate and closing costs on the paperwork are different from disclosed. Loan officer says they are getting 6% fixed and at the time of closing, the rate is 8% and is adjustable. This happens all the time. It happens more with people applying with a mortgage company advertised online or on commercials. The problem is that you do not get to know the people you are doing business with. They may be in another state. Sometimes you have no other choice but to sign and then you get into trouble. A way to prevent this is by looking for testimonials from people that your loan officer has helped.
3) Application fees – Mortgage companies charging application fees. Some mortgage companies require an application fee of $465.00 or more. The reasons these fees are charged are to prevent a borrower from shopping around. It is hard to walk away from a deal when you know you are throwing $465.00 away by leaving.
4) Builder affiliated mortgage companies – This is a huge one. The builder who owns part of the mortgage company says that if you use xyz Mortgage Company (builder preferred), you will receive the upgrades at no cost. If you decide to use your own mortgage company, you will not receive the upgrades. This is a violation of RESPA, and should be reported to HUD. Builders receive fines of thousands of dollars for this practice. For example, this is the story with James and Jennifer. They have great income and good credit. They have jobs that they have been in for a while. They bought a home and used the builders preferred mortgage lender. They are in a 2-year adjustable rate mortgage (goes up after 2 years) at 8.6%, with a pre-payment penalty of 3 years (mortgage lender charges a fee for paying off early). Their second rate is 12% fixed. The first rate is adjusting to 10.6 this January. By refinancing to a fixed rate mortgage of 6.5%, they are saving $312.00 per month.
5) No fee refinances – Loan officers make money in two ways. One is in the closing costs you see. The other is in the interest rate charged. The higher the interest rate the more money the mortgage banker-broker makes. A television commercial was offering a $395.00 flat fee refinance. Given the scenario, of a 700+credit score, proven income and looking to refinance a $200,000 loan, switching it from a 30-year to a 15-year and no cash out, they would qualify the buyer for a 7.5% interest rate. Someone with this can easily receive around 6% fixed with closing costs. Based on the commercial offering the buyer would pay an additional $124 per month for the no cost refinance. Over 15 years that is $22,320 extra in payments. Make sure that the person you are dealing with tells you about how the mortgage company makes money. Closing costs and yield spread and, remember that mortgage brokers are required to disclose the amount of money made where mortgage bankers are not.
6) Retail lenders vs. mortgage broker – The myth is that you can receive better pricing by going directly to the bank to secure the financing vs. using a mortgage broker. I recently had a client I will call Greg. He is in the financial advising business. I called and gave him the deal that I could get and gave him the name of the bank I was using. He called the bank directly and to his amazement, my rate was .5 cheaper than he could get at the same bank. We closed him at 6% and the best the bank could do was 6.5%. Their answer was that from the bank was that the mortgage broker must have WHOLESALE RATES!
Here are some tips to make sure you are getting a good mortgage deal:
1) Do not be pressured in any way.
2) Check references.
3) Look for testimonials.
4) Get expert advice.
5) Have an attorney review the paperwork.
6) Do not pay application fees.
7) Do not borrow more than you can pay back. If someone offers you a stated loan, leave the office.
8) Find out how long the loan officer has been in business. Have they furthered their education by taking fraud prevention courses?
9) Deal with someone local. It is easier to resolve problems with someone you can meet face-to-face vs. talking with someone in another state. Avoid dealing with online advertisements or commercials.
10) Make sure that they are telling you how much they are making on the loan. Make sure they discuss how they are paid. If they are a broker, they will have to disclose closing costs and yield spread premium.
11) Find out if they are licensed. Mortgage brokers and loan officers that work for mortgage brokers require a license. Mortgage bankers that work for banks or credit unions do not require a license.
12) Find out what percentage of clients are from repeat/referral business. This will give you a good idea on who you are dealing with. See if they will give you the name and number of a closed client.
When you decide to work with home builders on building a new house, you’ll probably start to look for ways to finance the project. Loans for newly built houses are slightly different from regular mortgages, so you should make sure that you’re aware of how the new construction loan process works.
Step 1: Create Your Plan
Before you talk to a mortgage broker, you should develop a vision for your new house. Decide on its size, scale, and location. Also, consider factors that might make the project more complex. For example, if you decide that you want solar panels or geothermal energy, then your project may require special sources of financing before it the home builders can get underway.
Step 2: Research Your Lending Options
Although new construction has increased significantly as available house inventory has sold down, many lenders got away from new construction during the economic recession. Some of these lenders left their clients without financing in the middle of the building project. Do some research to make sure that your lender has a good reputation.
In addition to ensuring that your lender is in good financial shape, you’ll also want to look for the best available interest rates when you’re shopping for a loan. To save time, a mortgage broker can research multiple lenders for you to find the best option.
Step 3: Conduct a Builder Review
Once you’ve selected an appropriate lender, your lender usually starts researching your chosen construction company by performing a credit check. The lender may also contact subcontractors that have worked for the company to make sure that it has a good reputation. Before starting the process, you should have some pre-permit architectural plans and a budget for your project. Also, supply your lender with the draft of a contract.
Step 4: Project Review
While your lender’s underwriter is reviewing your application, a project review specialist usually looks over your new construction plans. The reviewer may make plans that can cut your project budget, or your reviewer may find important items that the construction company has missed. Make sure to include some sort of contingency line item in your loan papers to cover any missed items. This line item can help to prevent you from incurring out-of-pocket costs.
Step 5: Loan Approval
When you receive a loan commitment letter, your application, your builder review, and your project review are usually satisfactory. Before releasing funds to your home builders, the underwriter may ask for a few small items. These items include missing signatures, property insurance updates, and additional documentation.
Step 6: Loan Closing
After approving your loan, your lender usually releases the documents to a closing agent such as an escrow officer, title agent, or real estate lawyer. Once the agent researches the title, obtains title insurance, and prepares a closing estimate, your lender usually prepares the closing documents so that you can sign all of the papers. Even though new construction loans require a few extra steps, you’ll appreciate owning a house that’s built exactly to your specifications.
If your car insurance is due for renewal and you are considering buying another policy then this article will provide you with important facts that you should know about. Car insurance policies are getting increasingly expensive and you should do all that you can to reduce your costs. How much you have to pay for your car insurance is dictated by a variety of factors as they apply to you and your vehicle.
In this article we will examine coverage limits, your age, gender and marital status, your location and insuring other household members. All of these factors will have a great influence on how much you will have to pay for your policy.
Coverage limits are generally dictated by the price that you are willing to pay for your insurance. A higher level of coverage will generally result in higher premiums. The best way to find a good value policy is to comparison shop. Nowadays it is generally accepted that the best way to do this is by using a car insurance comparison website.
Your age, gender and marital status will have a great effect on the auto insurance rates that you are offered. Insurers rate drivers using a variety of criteria, if you are a young single male driver you will usually have to pay higher rates. If you are a middle-aged female married driver then your rates will be lower. Insurers calculate the best car insurance rates for you by comparing levels of risk. Those groups which are statistically more likely to be involved in an accident have to pay correspondingly higher rates.
Location plays an important part in deciding how much your premiums will cost. Drivers who live in an urban environment will usually pay more than those from a rural area. This is because drivers who live in cities and heavily populated areas are more likely to be involved in an accident, or to have their car stolen or vandalized. Insurers generally offer better rates if you’re able to demonstrate that you keep your vehicle in a garage at night. You may also be able to improve the security arrangements of your automobile by fitting an alarm, immobilizer and steering wheel lock.
Insuring other household members will have an influence on the cost of your policy and the best car insurance rates that you offered. If you have teenage family members living with you and they are added to your policy, then your costs will increase. This may still work out cheaper than if your teenage driver were to have a separate policy in their own name.
In conclusion, there are a variety of different factors which can affect your ability to be offered the best insurance rates. Some of these are coverage limits, how old you are, whether you are male or female and whether you are married or single. Your rates will also be affected by the area where you live and whether other household members are included in your policy.