Home Financing Made Easy - Part Two

By Bruce Smith

Buying a home could possibly be the biggest investment you'll ever make. Your ability to position yourself for the best mortgage will help you pay down this investment early and assist you in becoming mortgage free.

In Part Two of “Home Financing Made Easy,” we cover the topic of “Improving My Ability to Obtain a Mortgage.”

If you’ve missed Part One click here.

Improving My Ability to Obtain a Mortgage
Preparation is often the key to maximizing your leverage when seeking mortgage financing. Lenders focus on three main criteria when evaluating an application; credit, collateral, and cashflow. We’ll share some of the secrets that will help you when dealing with lenders.

1. Credit
Your personal credit score will determine your ability to obtain the best rates in the marketplace. Quite simply, the higher your score is, the lower your interest rate will be. Your score is determined by a number of factors, including your payment history, amount of your credit balances compared to the limits, length of credit history, number of inquiries on your report, and types of credit in use.

Payment history
Each time you are late or miss a payment, it is noted in your report and is detrimental to your score. It is better to make a token payment if you do not have the funds to pay off the balance or make the minimum payment due. The last two years of your credit history will be given greater consideration.

Amount of your credit balances compared to the limits
If you are planning on shopping for a mortgage, your best strategy is to pay off all outstanding credit balances and not use your credit for about 45 days prior to your search. This will provide enough time for your balances to clear the system. If you cannot pay off the outstanding balances your next best strategy is to pay them down to at least 60% of the credit limit.

Length of your credit history
The longer you have demonstrated the ability to manage your credit, the higher your score.

Number of inquiries on your report
Frequent requests for credit are often an indication of problems in terms of need or in terms of being turned down by previous lenders. One of the advantages of using a mortgage broker to assist in financing, beyond superior rates, is that a broker will only pull your credit report once.

Types of credit in use
Credit lines that are unused are of no value. The more you demonstrate the ability to manage your debt the better your score

In Canada, credit scoring is handled by two credit reporting agencies. To obtain a free copy of your credit history by mail, contact the credit bureaus below by phone or online. If you wish to download your credit report online a $15.00 - $25.00 fee will apply.

Equifax – 1-800-465-7166 www.equifax.ca

Trans Union – 1-866-525-0262 www.transunion.ca

2. Collateral
Collateral is a term for the amount of down payment that you are prepared to offer on a property. A 25% down payment of the purchase price eliminates the need for your mortgage to be insured by CHMC or Genworth as required by most lenders.

3. Cash Flow
Cash flow is commonly referred to as income. Lenders typically require that your housing payments are no more than 32% of your income. A second ratio lenders consider is your total debt service ratio. Additional debt such as credit cards, lines of credit, car payments, and child support payments, etc. are added to your mortgage debt. All your debt payments combined, are to be no more than 40% of your income.

There are many types of acceptable income but generally you will be reporting either employment income or self employed income. If you are an employee, you should have worked with your current employer for a minimum of three months and be able to produce an employment letter and a current pay stub to verify employment. Lenders look to verify salary, position, and length of employment. When planning to purchase a first home it is not the time to be switching jobs. Lenders like to see steady employment.

If you are self employed, lenders look for a three year history. Notices of assessments are the preferred choice to verify employment income as it provides the lender with your income and verifies that your income taxes are current. If you are self employed and unable to verify income, there are mortgage products accessible to you as well, but you will pay a premium rate or you will require a higher down payment.

Read Part Three: Information Required at the Time of Application

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Bruce Smith is a consultant with Future Group Mortgages and brings more than 20 years of business enterprise development and funding solutions, through an innovative and effective results driven approach. Bruce holds a Bachelor of Business Management Degree, double majoring in accounting/finance and enterprise development. Future Group Mortgages arranges residential, commercial, and construction mortgages. Contact Bruce at 519.649.2502 ext 3 or bsmith@futuregroup.ca.

Published in Networking Today, January, 2007

Finding Your Career Direction

By Barb Smith

Where do I go from here? What do I really want to do for the rest of my career? Where will I find job satisfaction?

In the world of job search, there can often be more questions than answers, and finding a clear focus or direction can certainly fall into that category. Perhaps you’re considering leaving a position that is unfulfilling, or maybe you’ve been “invited to leave” a position you loved. Either way, once you are ready to start taking steps toward finding the next position, a clear understanding of where you want to go is essential. It’s difficult to move in the right direction when you don’t know where you want to end up.

While there are many tools and resources to help you decide on your direction, another way to begin answering the question is to consider exactly where fulfillment came from (or did not come from) in your previous position. Was it:

· The industry (I just know I want to stay in manufacturing. It’s where the action is!)

· The company (The company I was in was too small. There was no opportunity for advancement.)

· The function (Marketing is exciting, but my heart is really in Human Resources.)

Certainly changing industries can be a challenge and for some companies, industry experience is a definite requirement. So, if changing industries is your path to job satisfaction, seek out ways in which you can gain experience (or at least exposure) in the industry of your choice.

Moving to a different company within the same industry can be done more easily. Be sure you understand what you want in a company – the right size, culture, values – so you don’t end up with another mismatch.

Changing functions is likely the most difficult. That’s not to say it can’t be done, it definitely can, as long as you are willing to do the work. If you have been a good contributor in one function, you may be able to negotiate a change with your current employer. If this is out of the question, moving to a different function may mean an investment in educating yourself to gain the appropriate credentials. It may also mean taking an entry-level position to get your foot in the door.

Finding your career direction may be challenging, even frustrating, but once the decision is made and you are committed to it, you will find the rest of your search becomes so much easier. The direction you choose will impact every other decision you will be called upon to make during your search. Take the time to make the right decision for you.

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Barb Smith is a professional Job Search Coach in London, Ontario who applies the employer’s perspective when helping individuals find satisfying jobs with a minimum of stress and frustration. For more information, contact Barb at 519.691.0218 or email barb@barbsmithjobsearchcoach.ca. www.BarbSmithJobSearchCoach.ca

Published in Networking Today, January, 2007

21 Ways to GREAT Customer Service

By Nancy Friedman, The Telephone Doctor

There are certainly more than 21 ways to GREAT customer service, but rather than overwhelm you, we wanted to start out with a palatable number. Any one of these tips will produce better relations in your customer service. Here we go!

1. Smile! Right. Don’t kid yourself. Just as it can be seen in person, it can be heard on the phone.

2. Say something nice at least once a day to someone. At the St. Louis airport over 10 years ago, the skycap came up to me and said, “Are you going first class; or does it just look that way?” It still seems like yesterday. People remember nice things; just as they remember the not so nice things.

3. Never argue with a customer. You’ll lose every single time.

4. Adding a short personal note. Items received without any note or mention of the transaction are perceived as cold and rude. A simple “Thank you” on company note paper will do the trick. It says you stopped to do something special.

5. Use “WE” statements when possible rather than YOU. We is consultative, feels friendlier; and it’s far less confrontational.

6. Say “HELLO” loud and clear when you see someone walking into your store/branch/location/office. Ignoring people, even fellow employees, isn’t good customer service.

7. Keep the fences in your organization low. We all know there needs to be rules, guidelines, and policies. When there are so many of them, doing business may become difficult. It’s not worth it.

8. Be a double checker. We can miss something or not know all the details. Most people appreciate hearing, “The last time I checked, we were out of stock on that; however, let me DOUBLE CHECK for you.” That particular statement is so comforting. Everyone loves a double checker.

9. We cannot do two things well, at once. When working with a customer, on the phone or in person, focus on that person. Trying to type, or file, or do some paperwork while you’re communicating with a customer is dangerous; and rude.

10. If your attitude stinks. Change it. No one – absolutely no one – wants to be connected with someone with a bad or negative attitude.

11. Respond rapidly. When you receive information from a client, it’s a good thing to let them know you did receive it. That’s good communications.

12. Extend a firm handshake when being introduced to a customer. FIRM is the key word. That loose, fish like handshake is not a sign of confidence.

13. Thank you notes are still thought of as GREAT. Take the time to jot several off a day to new or better yet; older clients.

14. Use your name when you answer the phone. Everyone likes to know who they’re talking with.

15. Use your listening skills more often. We all like to talk, mainly to show off how much we know. But listening to what the customer knows is much better. Let others have the stage.

16. It shouldn’t take two people to give good customer service. Learn how to handle the situation yourself rather than trying to get rid of it by shipping it off to a co-worker or supervisor.

17. Show some empathy or sympathy when a customer complains. Doing or saying nothing when they feel they have a problem will put you in the doghouse fast.

18. Learn to say, “I am sincerely sorry for what happened” or something that will allow the customer to feel that you are apologizing. The quick, “Sorry ‘bout that” statement sounds as though you’re throwing the statement away.

19. Be prepared. Any customer service, or any front line position, should expect things to happen. “Be prepared” is not just for the Boy Scouts. It’s for anyone who works with customers.

20. When in doubt, leave it out. Writing a letter to, or calling a client? If you’re in doubt of using a certain word, leave it out or use something else.

21. This is reserved for you to put in your own customer service tip. And if you have one you’d like to share with us, send it on to PRESS@telephonedoctor.com. It could end up in one of our new books. You will, of course, receive full credit.

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Nancy Friedman is president of Telephone Doctor®, an international customer service training company headquartered in St. Louis, Missouri, specializing in customer service and telephone skills. She is a KEYNOTE speaker at association conferences and corporate gatherings and is the author of four best selling books. Call 314-291-1012 for more information or visit the website at www.telephonedoctor.com.

Published in Networking Today, January, 2007

The Secret Weapon Every Savvy Exhibitor Should Use

By Susan A. Friedmann

It's time for a visualization exercise. Are you ready?

You're standing, with your booth staff, in your exhibit at a large tradeshow. Your team is prepared. Your display looks terrific. You have interactive demonstrations, a sponsored speaker, and giveaway items conveying your marketing message. Everything in your booth appeals to your target audience; and they are in plentiful supply.

There's something in this scene, something I haven't mentioned yet, that could take you over the top! Not only will this boost your ROI, but will create that most vital of marketing tools.

It’s a secret weapon: “word of mouth marketing,” which has been around since the beginning of time but only now is it realizing its full potential.

I've recently read Seth Godin's Flipping the Funnel, and it really brought home the concept of how underutilized tradeshow attendees are as a marketing tool. Attendees are more than prospects and contacts: they're a potential sales force, just waiting to be tapped on your behalf.

According to Godin, we should:

• Turn strangers into friends.

• Turn friends into customers.

• Turn your customers into sales people.

Why?
Why would you want to recruit a whole bunch of amateur salespeople, you might ask, when you already have a perfectly competent, fully trained professional sales team? Regardless how big your sales force is, there's no way they're going to be able to connect with every person who might be interested in your products and services.

This is where your friends and customers enter the picture. If you view them as assets, as allies in the world of sales, you've already expanded your potential marketplace. When more people are working on your behalf, you'll reach more customers. It's simple mathematics. When your friends and customers recommend your products and services, their words carry far more weight than anything your sales team can say. People value the opinions of colleagues, peers, and relatives far more than they do the assurances of a salesperson. It's the difference between editorial speech and advertising, played out in a face-to-face setting.

Now What?
A slight shift in priorities might be in order. While starting new business relationships will always be important, a new emphasis has been placed on strengthening and maintaining existing relationships.

Consider your current customers. Ask yourself – or even better, ask them – how they feel about your products and services. What is it about your customer service or doing business with your organization is unique, enjoyable, and/or remarkable?

Whatever the answers, what are you doing to help your customers spread the word? Godin offers a number of technical solutions in his free e-book (which I highly recommend you read). Here are a few more hands-on tools to implement at your next tradeshow:

Be Honest
Tell your best customers how much you appreciate them and how much you would value having more customers like them. It's no secret that you're in business to make money. No one thinks you're at the show as a philanthropic endeavor. Appealing to your customers to spread the word carries with it an implied compliment: you're reinforcing the fact that you think they're important, and that their opinion of you matters.

Encourage Referrals
Do you know how often your customer thinks about your company? It's probably less than 1% of their daily life – after all, they have their own companies to worry about, and their own customer base, not to mention their own personal lives and world events. Sometimes, people need a little prompting to spread the word – otherwise, it might never, ever occur to them

Offer Incentives
If you want your customers to do something for you, you need to do something for them. Godin's idea is that by offering superior products and services, in a remarkable fashion, you'll transform customers into fans. Having strong advocates and supporters never hurts. Offering incentives for spreading the word can be a simple thing – an attractive discount on their next order – or something more elaborate. Remember, younger tradeshow attendees may be motivated by more than financial savings or benefits to their company. Consider offering something more personal: a gift that would appeal to your target audience.

Transforming customers into fans may not have been the top

priority on your exhibiting list; but it should be. Recruiting an all-volunteer sales force to augment your existing efforts is one of the most cost effective ways to get your marketing message out there.

Remember: people like to share stories about what they find good, interesting, or unique. By offering these at your next tradeshow, you're giving yourself a vital leg up on the competition. Those who are concentrating on the next new thing miss out on the value of what they might already have.

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Written by Susan A. Friedmann,CSP, The Tradeshow Coach, Lake Placid, NY, author: “Meeting & Event Planning for Dummies,” working with companies to improve their meeting and event success through coaching, consulting and training. For a free copy of “10 Common Mistakes Exhibitors Make”, email: article4@thetradeshowcoach.com; Web site: www.thetradeshowcoach.com

Finding Your Career Direction

By Barb Smith

Where do I go from here? What do I really want to do for the rest of my career? Where will I find job satisfaction?

In the world of job search, there can often be more questions than answers, and finding a clear focus or direction can certainly fall into that category. Perhaps you’re considering leaving a position that is unfulfilling, or maybe you’ve been “invited to leave” a position you loved. Either way, once you are ready to start taking steps toward finding the next position, a clear understanding of where you want to go is essential. It’s difficult to move in the right direction when you don’t know where you want to end up.

While there are many tools and resources to help you decide on your direction, another way to begin answering the question is to consider exactly where fulfillment came from (or did not come from) in your previous position.

Was it:

• The industry (I just know I want to stay in manufacturing. It’s where the action is!)
• The company (The company I was in was too small. There was no opportunity for advancement.)
• The function (Marketing is exciting, but my heart is really in Human Resources.)
  

Certainly changing industries can be a challenge and for some companies, industry experience is a definite requirement. So, if changing industries is your path to job satisfaction, seek out ways in which you can gain experience (or at least exposure) in the industry of your choice.


Moving to a different company within the same industry can be done more easily. Be sure you understand what you want in a company – the right size, culture, values – so you don’t end up with another mismatch.

Changing functions is likely the most difficult. That’s not to say it can’t be done, it definitely can, as long as you are willing to do the work. If you have been a good contributor in one function, you may be able to negotiate a change with your current employer. If this is out of the question, moving to a different function may mean an investment in educating yourself to gain the appropriate credentials. It may also mean taking an entry-level position to get your foot in the door.

Finding your career direction may be challenging, even frustrating, but once the decision is made and you are committed to it, you will find the rest of your search becomes so much easier. The direction you choose will impact every other decision you will be called upon to make during your search. Take the time to make the right decision for you.

Barb Smith is a professional Job Search Coach in London, Ontario who applies the employer’s perspective when helping individuals find satisfying jobs with a minimum of stress and frustration. For more information, contact Barb at 519.691.0218 or email barb@barbsmithjobsearchcoach.ca. www.BarbSmithJobSearchCoach.ca

Published in Networking Today, January, 2007