Obtaining a credit report is a great asset. It tells you everything about your credit history — which credit cards you hold, how long have you held each account, the balance and status of each account and whether you are late on payments and, if so, by how many days. By checking your credit report, you can verify the accuracy of your report and dispute any details you may believe are not true. These reports are available from the following credit reporting agencies: Experian, Equifax and TransUnion.

The Home Buying Institute strongly advises that homeowners get a credit report before trying to get a house. Those who have good credit histories will have an easier time obtaining a loan than those with bad credit histories. Those who fall into the latter category, The Home Buying Institute says, should work on improving their credit score. Some ways to do this include paying bills on time, keeping credit card balances low, making sure your debt does not exceed 20% of your personal monthly income and limiting the number of loans or credit cards you apply for.

It doesn’t hurt to check your credit score. After all, what you don’t know about your credit score can hurt you.

The Mortgage Bankers Association’s index was up 2.7% in the week ending August 27, according to the Bloomberg BusinessWeek article. Refinancing increased by 2.8% to the highest level since May 2009 and home purchases saw a gain of 1.8%.

The average rate on a 30-year fixed-rate mortgage fell to 4.43% last week — the lowest rate going back to 1990 — from 4.55% the previous week. The average rate for a 15-year fixed-rate loan fell from 3.91% to 3.88%. With the record-low mortgage rates, more people are looking to refinancing to reduce their monthly payments. The share of applicants who refinanced rose to 82.9% — the highest since January 2009 — from 82.4% the prior week.

Despite record-low mortgage rates, home sales have fallen sharply and people are still losing their homes to foreclosure. The Obama administration is looking to propose a program offering $1 billion in zero-interest loans to help homeowners who have lost their income avoid foreclosure as part of $3 billion in additional aid targeting economically distressed areas.

According to information from CoreLogic, a supplier of financial, property and consumer data, 26% of all homeowners who refinanced between January and June of this year chose a 15-year fixed-rate mortgage, up from 18.5% from all of 2009. The reason for the move this year is the historically low mortgage rates being offered. Last week’s Freddie Mac survey showed that the average rate for a 15-year fixed-rate mortgage was 3.86%.

Economists say the 15-year mortgage not only gives homeowners the incentive to pay off the house more quickly but to get out of debt sooner than later. But, while homeowners should be credited for making that effort to get rid of debt, they should consider if they can really afford a 15-year mortgage.

According to the Zimonet.com articles, those who choose 15-year fixed-rate mortgages are older, have more equity in their homes and less debt, earn higher incomes and are more likely to stay in their homes longer. If you do choose to go the 15-year route, it is advisable that you have liquid assets available for at least 12 months and your debt-to-income ratio is below 35%. It is suggested that you review your finances carefully before making the switch.

Citing data from the Mortgage Bankers Association’s National Delinquency Survey, the article says that, in the second quarter of 2010, foreclosure action was started on 1.11% of loans, down 12 basis points from the last quarter and down 25 points from the second quarter of 2009. In addition, 4.57% of all home loans were in the foreclosure process, a decrease of six basis points from Q1 2010 but an increase of 27 basis points from Q2 2009.

The percentage of loans 90 days or more past due or in the process of foreclosure was 9.11%, down 43 basis points from the first quarter of this year, but an increase of 114 basis points from the second quarter of 2009, REALTORMag reports. But that’s where the good news ends.

The MBA’s survey showed that the percent of loans in which borrowers fell behind by one payment was 3.51% after it was 3.31% by the end of 2009. This could be attributed to the unemployment rate as more people have either lost their jobs or are unable to find a new job.

In addition, the number of cardholders past due by 90 days or more fell to 0.92% in Q2 2010, down from 1.17% last year. The numbers show that, despite the economy, borrowers are making a conscious effort to pay off their balances and keep their credit cards in good standing.

Those who continue to pay down their debt will see some benefits, such as a higher credit score, a better chance to receive a home loan at a reduced rate and lowering their credit risk. It is good to see today’s consumers looking to reduce their debt. Now, if we could only get the government to do the same thing.

Long Island was 19^th overall as being the nation’s riskiest housing market. The factors that PMI took into effect were higher unemployment and foreclosure rates, excess housing supply and more volatile home prices. The riskiest market was the Miami-Miami Beach-Kendall, Florida area, REALTORMag.com reported.

PMI also determined the probability that home prices would fall within the next two years. According to PMI, there was a 91.5% probability that home prices in the Nassau-Suffolk area would see a decline in the next two years.

As stated before on this blog site, the job market will dictate what the housing market will do. Right now, more people are filing jobless claims, job creation is at a crawl and some local corporations are relocating off the island. Also, with the tax deductions for mortgages possibly being eradicated at the beginning of next year, that might mean even more foreclosures here on the island and increase the chances that home prices will fall even lower.

But there’s no reason to panic just yet. The New York State Labor Department’s recent report shows the unemployment rate for July holding steady at 8.2% and Long Island’s at 7.2%, which is higher than last month, but far below the national rate. The NYS Labor Department also said that 8,600 private-sector jobs were added to Long Island last month.

Based on a recent survey, up to half of employers eliminate potential job candidates with low credit scores. Though some 20 states have introduced recent legislation to limit employers’ use of credit reports, employers still are allowed to check prospective employees’ credit files as long as they get their permission.

Hiring managers claim poor credit raises a red flag. Some believe these candidates may be at greater risk for theft from the company or bribery from outside sources. Others feel financial problems may indicate a lack of responsibility, inadequate judgment or questionable character.

According to recruiting experts, here are some red flags on your credit report that could cost you a job:

• Liens — show that you haven’t responsibly paid off debt or negotiated a settlement

• 100% Credit Utilization — indicates you’re in over your head and can’t stick to a budget

• Bankruptcy/Foreclosure — suggests you bail on large projects or lack long-term visibility

• Recent late fees — signal financial stress or trouble budgeting

• Significant Activity — frequent opening or closing accounts shows you’re desperate for cash or aren’t good with money

Recently, some government officials have stated that checking potential employees’ credit reports is unfair, particularly in light of the recent recession. However, the practice is unlikely to change anytime in the near future.

If you have concerns about your credit score and that it may affect your chances of obtaining employment, visit www.vrtmg.com/lfigueroa for more information.

• Credit Card Utilization. If your existing credit cards are maxed out, you may be more of a risk than someone who has the same exact credit score but not maxed out.

• Recent Hard Inquiries. If you have several recent inquiries, it suggests that you were denied or you did get the credit and it wasn’t enough to meet your needs.

• Age of Oldest Trade. The ability to maintain accounts in good standing speaks volumes about the borrower. Lenders like to see a long history of open accounts, which, in many cases, means more than two or three years. In that short amount of time, you probably haven’t been laid off, or experienced a major life event. On the other hand, if you have 10 years of credit history and maintained your accounts, it says a lot about your level of responsibility and financial management.

• 30-Day Delinquencies. If you have a habit of paying late regardless of your score, be prepared to suffer the consequences when it comes to credit approval. This is why you should ALWAYS pay bills on time.

• Presence of a Mortgage. Mortgages denote stability and suggest that your credit is strong enough to support a high dollar loan.

• Presence of an Installment Loan. Just like a mortgage, installment loans demonstrate the breadth of experience you have with accessing and managing credit. Installment loans show a level of planning not displayed in credit cards since installments have a fixed monthly payment, which often requires more discipline and budgeting, both of which are often a plus.

Signing up for the FES Protection Plan will automatically show you how you rate in each of these categories and how to further improve your credit score. To see whether you qualify for a loan, visit http://www.vrtmg.com/lfigueroa.

Last week, mortgage rates fell for the eighth straight week, with 30-year fixed-rate mortgages at 4.44%, down from 4.49% the previous week, CNNMoney reported. Freddie Mac noted that this was the lowest rate since the mortgage finance company began collecting data in 1971. The lower rates come from the Federal Reserve’s promise to buy more government debt to help the economy recover.

This is good news for homeowners looking to refinance. The bad news is they may have a tougher time obtaining refinancing. Thanks to the Treasury Department, borrowers are now required to have a FICO score of at least 620, a higher down payment and lower monthly debt service ratios. Many borrowers who have been in good standing have since lost their jobs, making it difficult to meet income requirements in the future.

Despite calls from economists to loosen these refinancing standards, Treasury said it has no intention to do so. Those who are calling for the loosening of the restrictions say this will quickly inject more money into the stagnant economy. Those defending the tougher standards say less restrictive requirements will cost Fannie Mae and Freddie Mac hundreds of billions of dollars more than what they’re losing now.

While these requirements should cut down on the number of unqualified applicants, on the other hand, it is an example of the innocent being punished with the guilty. Fewer homeowners, in turn, will be discouraged from applying for refinancing and be stuck with higher interest rates. When the homeowner is unable to make payments anymore, he goes into foreclosure. That is not good for the homeowner — or the economy.

The Mortgage Bankers Association says that overall applications rose 0.6% from the previous week, according to the AP. Applications for refinancing and home purchases increased by seasonally adjusted rates of 0.6% and 0.3%, respectively. The average rate for a 30-year fixed-rate mortgage fell last week to 4.57% — the lowest in 20 years. (It had been 4.60% the previous week.) The average 15-year rate fell from 4.03% two weeks ago to 3.95% last week — the lowest rate on record, according to the MBA.

The reason for the flaccid mortgage application numbers could be attributed to the economy. Today’s article from Reuters suggests that prospective homebuyers are coming to grips with a recent job loss or wage cuts. The elimination of the federal tax credit has also kept buyers away from the housing market.

Yesterday, the Treasury Department took steps to keep interest rates low in order to stimulate the economy. Meanwhile, according to a recent Reuters article, sellers in the 50 largest cities slashed home prices by a collective $30.1 billion last month, up from $27.3 billion the previous month.

The job market has been a key indicator of the housing market. When unemployment starts to rise and wages are cut or frozen, there are fewer buyers. But when businesses start hanging “HELP WANTED” signs in their windows, that is a sign the economy is picking up, and so will home sales.