First Time Home Buyer Mortgage Credit Score

You are probably running into a lot of terms and expressions that you are not familiar with. Add that to the anxiety of trying to get a mortgage, and this could be a downright stressful time for you. There are some tips of the trade that can give you a head start when you are a first time home buyer. The first thing you need to do is ensure your credit report is in good order. You don’t want any surprises to crop up when you get down to applying for that first time home mortgage loan. Knowing what your mortgage credit score is beforehand will give you a head start in landing that dream home.

The first thing you need to do is get a copy of your credit report. Analyze every item and every line very carefully. Look for things that seem askew. If there are credit cards open that you don’t use, have the accounts closed. Check for any items that come up as discrepancies or errors on your report. This would look like outstanding accounts that you know have been paid. You will need to have those corrected before you apply for your first time home buyer mortgage loan.

Your mortgage credit score is going to be affected if there are discrepancies on your credit report and you may not get the mortgage you want. To clean up the errors, send a request in writing to the company asking them to repair the discrepancy. Keep a copy of all documentation. If the error is not resolved by the time you apply for your mortgage, you may need to show it. Once you have the errors corrected and unused accounts closed, you will be well on your way to a healthy looking mortgage credit score.

Articles on first time home mortgage loan and first time home buyer mortgage can be find at our website. Author have over 6 years experience in the real estate and insurance field. Before you make any financial decision seek a professional advice!

Two Rules to Beat IRS at Their Own Game

You have filed your taxes and IRS sends you a notice asking you to explain certain deductions -- No Problem; IF you have followed the rules:

Rule #1 - The burden of proof of your deductions are on you.

Rule #2 - If you keep good records with receipts, notes and invoices -- you win!

Its that simple.

However, If your Tax Professional, or you have placed incorrect amounts on the tax return -- and IRS ask for clarification -- you may have a problem. How serious the problem becomes, depends on the "IRS Human's" interpretation of how the error occurred. The "IRS Human" usually will request proof of your deductions. Of course, if you do not have proof and there is no evidence that the figures are anywhere near correct -- you might be looking at a fraudulent return status.

It does not matter that your Tax Professional put the numbers on the tax return -- What matters is that you signed the tax return.

The bottom line is; Do not allow Tax Professionals to put incorrect information on your tax return. You are responsible for YOUR return.

Many Tax Professionals will help clients with a "best guest estimate" for example, you have a cell phone and the phone was turned on and available for business use 12 months out of the year. You do not know the exact amount of the cell phone bill paid each month. Your tax professional may take the base of your monthly bill and multiply by 12, and add a small amount for additional minutes used --- this may or may not be OK with IRS -- however, more then likely they won't question the deduction, if it is within reason.

Suggestions on how to win the Record-Keeping Game are as follows:

1. Slow down, pay attention to details when it comes to tax deductions

2. For business expenditures; pay by check when possible

3. Keep recites and invoices in a safe place

4. Track all business mileage (Write down date, beginning mileage, ending mileage, clients visited and/or nature of business)

5. Use a credit card or ATM for ALL travel, entertainment and Business Gifts ($25.00 limit on business gifts)

6. If you must use cash to pay for an item or a service; put a note in your recite drawer stating what you paid, when and how much)

7. When traveling away from home on business; keep a log of your expenses. (especially cab fares and tips)

8. Keep track of dues for professional organizations such as business league, trade associations, cambers of commerce, boards of trade and real estate boards.

9. Don't forget to keep records of your cost for your ISP (Internet Service Provider) , email campaigns, online marketing cost, PPC (pay per click cost) and web design.

10. If you Factor your Accounts Receivables, get a business loan or line of credit, or cash advance for your retail business, remember that ALL fees associated with these loans/transactions are tax deductible.

Example of Excellent Record Keeping:

You are traveling on business. It cost you $32.50 round-trip for the cab fare to a business meeting from your hotel, on one day and $27.00 for cab fare the next day for a different meeting -- You tipped the bellman $2.00 each time he ordered a cab for you. (Yes, you could stay in a hotel that is closer to the meeting, but you would rather stay downtown) This is a $59.50 legal deductions that many people forget about, because it was not on paper. Lets say this happens four times a year; same meeting, same hotel. $59.50 X 4 = $238.00; is the deduction that you may forget; if you don't keep notes.

Cassandra Ingraham is a Tax Accountant and Instructor for Basic Tax Classes in the San Francisco Bay Area. During the balance of the year she can be found at http://www.taxeswilltravel.com providing Formal Introductions to Lenders for Accounts Receivable Funding (Factoring) and Purchase Order Funding.