Community Magazine Februafy 2009

Meeting the NewMortgage Criteria Today’s interest rates are historically low, presenting an opportunity for substantial savings on both refinancing and purchasing mortgages. But while banks do continue to lend in this challenging market, they are more selective in the approval process. To ensure you qualify, just remember “ICE”: Income – Pay stubs, w2’s, 1099’s and tax returns are generally required and need to be verified. Credit – Borrowers with a minimum credit score of 740 are considered “top tier” and would receive the most competitive rates and programs. Many additional programs are available for borrowers with a score between 620 and 740. Obtain your score from www.myfico.com , and check for any inaccuracies. Equity – Banks generally require a 20% down pay- ment, though some programs allow for as little as 3% down. When it comes to refinancing, usually 25% - 30% of equity is required. Unfortunately, home values are declining, which makes refinancing more challenging Larry Aboudi, Senior Mortgage Consultant for GFI Mortgage Bankers Get Skin in the Game The most successful businesses we deal with generally have employees that care about their jobs and about the business’ overall success. But how can you get managers and other employees to really do their best to make sure your company succeeds? Try doing what Walmart did: make your business their business. Years ago, Sam Walton, founder of Walmart, offered store managers the chance to become limited partners if they invested in their own stores and even presented the opportunity to invest in future stores. This arrangement with employees, often referred to as “skin in the game,” almost invariably makes for a happier, more efficient and of course, more productive worker Joey Sasson, Garber Atlas Fries It’s Your Busine $$ Do you have a killer business or personal finance tip? Send your contributions to business@communitym.com Tasty Perks for Tempting Productivity Want to boost productivity, reduce absenteeism and control health- care costs? A box of fresh fruit and vegetables is an out-of-the box concept some businesses are using to promote a healthier and more vibrant workforce. CommunitySupportedAgriculture (CSA) Programs provide locally grown, seasonal fruits and vegetables to worksites each week on a subscription basis. Costs for each weekly CSA delivery range from $13 to $30 per box and con- tain enough produce for a family of four. Some businesses with limited budgets share the cost with employees who are often enthusiastic about the program. Visit localharvest.org to find a nearby CSA farm. During a bountiful season, sub- scribers may even receive extra boxes of produce with more types of fruits and vegetables than normal at no additional cost. Overall, it’s a great way to improve health, enhance your work environment and boost morale. Save on Cell Service Sans the Switch Considering switching long distance, cell phone, or Internet providers to get a better deal? Don’t keep it a secret. Competition is fierce in these industries and new customer acquisition costs are high. As a result many of these com- panies have a dedicated customer retention team which could sweeten the deal to keep you. So before switching, call your existing provider and tell them you are considering cancelling because the price is too high, you may be able to negotiate a better rate without having to go through the hassle of actually switching companies. The Time Value of Credit If you plan to shop for a mortgage or other loan for which you’ll need a good credit score, avoid closing exist- ing accounts – even if you don’t use them. Fifteen percent of your score is determined by the length of time you’ve held a credit relationship. Applying for new credit cards and closing old accounts negatively impacts your credit score in the short run, so avoid making these moves shortly before applying for a large loan. Joseph Baghdadi, Credit ScoRepair Index, Inc. 52 Community magazine