Just read this great article about what could be bringing a person's credit score down. Found it at Bankrate, Inc.'s website and it was written by Dana Dratch. Here are the 6 in a nutshell:
Her opening: "You pay your bills on time and never miss a payment. if you're still having trouble with credit, something on your credit report could be scaring lenders. Everyone knows the big gremlins that haunt credit reports: bankruptcies, foreclosures, missed and late payments." But less dramatic items can also spark some anxiety in skittish lenders.
1. Opening 1 new account is normal, but if you open several in a small amount of time, that signals that there could be problems with your finances. Companies are now monitoring you monthly or every other month, and the one thing they do NOT want to see is you asking everyone in town for a loan.
2. People are told short sales won't hurt their credit as much as a foreclosure as you are just settling the account for a lesser amount than originally agreed. Actually it is as negative as a foreclosure!! They gave the tip to negotiate with the lender to NOT report the difference between your mortgage and what you repaid as "balance owed" on your credit report. Your credit score will take a heavy hit, but doing it this way will slightly soften the blow. Do not discount the notion of a short sale, just go into it with your eyes open, she said. You will get out of the house, move on with your life, but there will be an impact to your credit history.
3. When you co-sign on someone else's loan, the whole debt goes onto your credit report. Potential lenders could be concerned that you are carrying too much debt, and it will be included in your existing debt load when you apply for a mortgage, credit card or any other credit. If the person you signed for is late or misses payments, that too goes on your credit report. Co-signing does "Not play well in the underwriting office".
For those who don't know what underwriting is, its the mortgage insurance company that insures your loan to a lender if you forfeit and allow the house to go into foreclosure.
4. Even though there is a minimum that credit cards allow you to pay each month, it is not looked at favorably if you do pay just the minimum each month. "It suggests you're under financial stress."
5. Having your credit report checked too often lowers your score. "Every time you allow a potential lender to pull your credit report, your score can take a small hit." She advises if you are applying for a home loan or new car or student loan, do all the inquiries within a two-week period and those checks will be lumped together as one. There is no similar grace period for credit card applications however.
6. Cash advances on credit cards "indicate desperation". It suggests you might have lost your job or gotten yourself into too much debt. It suggests you are "borrowing from Peter to pay Paul". The cash advance is immeidately added to your debt balance, which lowers your available credit and can lower your credit score and all potential lenders will see your score. Regularly credit card companies will pull your credit just to see how it looks, and if you've taken on alot of new debt, they may slash your credit line or raise your interest; should this happen, that further lowers your FICO score.
I thought this was a very informative article, and wanted to share it with you; as I was unaware of a few of these things, and I've had customers wanting to buy houses who did not understand why their score was low. Maybe this article will help us all understand better how the credit score business thinks and operates and help us not make mistakes that sinks "our credit score" boat.
Thursday, July 7, 2011
Tuesday, July 5, 2011
Steps to Buying a House.
I get lots of calls from potential buyers who say, "I've never bought a house and I don't really know how to get started." So here follows some of the steps to buying a house.
1. Get prequalified by a lender. This does not get you the loan. It takes about 5-15 minutes. All it does is say what amount of loan it appears you could qualify for. Later when you get a contract and they get more information, you will get preapproved. Approval comes at the end after underwriting gets all your information.
A prequalified letter from a lender, lets a broker know you are serious and not wasting their time as they show you house after house. Further, it tells a seller that your offer is serious and you will go through with the loan process. Best of all, it tells you what price range to stay within so you don't look at nicer homes than you can actually afford and waste your and the broker's time, and gets your hopes up for something not within your means. THIS STEP IS UN-NECESSARY IF YOU ARE PAYING CASH FOR A HOUSE, BUT VERY FEW OF US CAN DO THAT!!
2. Pick a realtor to work with. Why? A realtor has access to all MLS listings. You can find something you like on line, but you can't get in to see it without a realtor. But that is not the only reason. There is a lot of paperwork involved in buying a house. I've written as many as 4 contract offers for the same customers, each one was 9 pages long plus the third party financing addendum which is 2 pages and the non-realty addendum. Further you might have lead based paint addendum, addendums to change closing dates, or to make repairs, etc. Do you know how to fill these forms out? A lawyer could help but at what cost per hour. A realtor is trained to fill these forms out and to know which ones to use in each situation, and they charge you nothing. The seller pays their fee at closing - unless you chose a house listed by a realtor that doesn't include the buyer's agents commission in their listing. Then it might cost you. But it's your choice whether to look at those listings or not.
A realtor will save you time. They can narrow down the houses to look at based on the criteria you give them. They can make all the appointments and make a schedule of the order to view properties that will save the most time. I do mine in a circle. Starting with south of my office moving counterclockwise and ending north of my office. I make appointments for 30 minute durations but overlap them. For example 5 to 5:30, then next one 5:15 to 5:45. etc. This helps if we pull up to one and they hate the location, we don't have to wait 30 minutes for the next appointment.
Besides scheduling and paperwork, realtors help you know the next steps and when they occur, and can be there for these events if you have to work: setting up inspections, appraisals, repairs, measuring rooms if you have a question such as if your refrigerator will fit in the space, run addendums to title companies, etc.
3. After you select the realtor you feel comfortable with, be sure and sign a buyer's representation agreement. This makes sure that the realtor works for YOU and not the seller, and that you can trust them to work for your best interests and to hold information confidential that you share with them.
Other steps in the process which your realtor will explain are: making an offer on the one you want, negotiations, inspections, getting insurance arranged, choosing home warranty company (your realtor will be sure to put this in the contract offer for your benefit), doing walk-thru before closing, appraisal, survey, closing.
Buying real estate is time consuming, but with a realtor to assist, it can be less confusing and flow smoothly. Don't be afraid, you can do this and in the end have the American dream of home owership. So.... go get prequalified.
1. Get prequalified by a lender. This does not get you the loan. It takes about 5-15 minutes. All it does is say what amount of loan it appears you could qualify for. Later when you get a contract and they get more information, you will get preapproved. Approval comes at the end after underwriting gets all your information.
A prequalified letter from a lender, lets a broker know you are serious and not wasting their time as they show you house after house. Further, it tells a seller that your offer is serious and you will go through with the loan process. Best of all, it tells you what price range to stay within so you don't look at nicer homes than you can actually afford and waste your and the broker's time, and gets your hopes up for something not within your means. THIS STEP IS UN-NECESSARY IF YOU ARE PAYING CASH FOR A HOUSE, BUT VERY FEW OF US CAN DO THAT!!
2. Pick a realtor to work with. Why? A realtor has access to all MLS listings. You can find something you like on line, but you can't get in to see it without a realtor. But that is not the only reason. There is a lot of paperwork involved in buying a house. I've written as many as 4 contract offers for the same customers, each one was 9 pages long plus the third party financing addendum which is 2 pages and the non-realty addendum. Further you might have lead based paint addendum, addendums to change closing dates, or to make repairs, etc. Do you know how to fill these forms out? A lawyer could help but at what cost per hour. A realtor is trained to fill these forms out and to know which ones to use in each situation, and they charge you nothing. The seller pays their fee at closing - unless you chose a house listed by a realtor that doesn't include the buyer's agents commission in their listing. Then it might cost you. But it's your choice whether to look at those listings or not.
A realtor will save you time. They can narrow down the houses to look at based on the criteria you give them. They can make all the appointments and make a schedule of the order to view properties that will save the most time. I do mine in a circle. Starting with south of my office moving counterclockwise and ending north of my office. I make appointments for 30 minute durations but overlap them. For example 5 to 5:30, then next one 5:15 to 5:45. etc. This helps if we pull up to one and they hate the location, we don't have to wait 30 minutes for the next appointment.
Besides scheduling and paperwork, realtors help you know the next steps and when they occur, and can be there for these events if you have to work: setting up inspections, appraisals, repairs, measuring rooms if you have a question such as if your refrigerator will fit in the space, run addendums to title companies, etc.
3. After you select the realtor you feel comfortable with, be sure and sign a buyer's representation agreement. This makes sure that the realtor works for YOU and not the seller, and that you can trust them to work for your best interests and to hold information confidential that you share with them.
Other steps in the process which your realtor will explain are: making an offer on the one you want, negotiations, inspections, getting insurance arranged, choosing home warranty company (your realtor will be sure to put this in the contract offer for your benefit), doing walk-thru before closing, appraisal, survey, closing.
Buying real estate is time consuming, but with a realtor to assist, it can be less confusing and flow smoothly. Don't be afraid, you can do this and in the end have the American dream of home owership. So.... go get prequalified.
Interest rates
Interest rates are remaining pretty steady. Conventional loans you need 5% down and the interest rate for 30 years is 4.875. For FHA loans you need 3.5% down and the 30 year rate is 4.5 and the 15 year rate is 3.875. Home prices haven't risen in several years, and with this low of interest rates, it appears to be a good time to buy.
Rumor has it that if QEM passes (Obama's bill) then FHA loans will have to have 20% down the the American dream of owning a home will be the thing of the past.
To qualify for a loan you must have a 640 FICO score and make a certain salary. I have a program designed by Chicago Title that will tell you what that number is, what your closing costs will be and even how much you will need in the bank account the day before closing. I'd love to share this information with you. Call Prudential Ada Realtors in Amarillo, TX, 806 355 9601 and ask for Judy.
Rumor has it that if QEM passes (Obama's bill) then FHA loans will have to have 20% down the the American dream of owning a home will be the thing of the past.
To qualify for a loan you must have a 640 FICO score and make a certain salary. I have a program designed by Chicago Title that will tell you what that number is, what your closing costs will be and even how much you will need in the bank account the day before closing. I'd love to share this information with you. Call Prudential Ada Realtors in Amarillo, TX, 806 355 9601 and ask for Judy.
Monday, July 4, 2011
REAL ESTATE ON THE GO!!
Just read an interesting article where realtors not only use the new QR codes on signs in yards of houses for sale, so that interested drivers can use a free QR Reader ap on their phones to instantly look at the property - but also they are doing videos in their cars as they drive around giving tours and real estate information. One company has their own station on UTUBE that they post these too and have gotten over 70,000 hits. I'm wondering how many of those hits led to sales.
The article also said one realtor has "become a star" on UTUBE by doing this!! Would love to know your opinion. Do you "shop" for real estate on UTUBE, and/or do you stop at yard signs and try to get immediate information from qr codes? Further, what is your favorite way to find real estate: newspaper? online? from a realtor? grabbing flyers from boxes in the yard? Use the Comment section and let me know, would you please?
The article also said one realtor has "become a star" on UTUBE by doing this!! Would love to know your opinion. Do you "shop" for real estate on UTUBE, and/or do you stop at yard signs and try to get immediate information from qr codes? Further, what is your favorite way to find real estate: newspaper? online? from a realtor? grabbing flyers from boxes in the yard? Use the Comment section and let me know, would you please?
Sunday, July 3, 2011
Fourth of July and our Founding Father' Views
Well, we are celebrating our country's Independence this weekend. It was in 1776 that 56 men signed the Declaration of Independence, and the one we think of most often is John Hancock. We say, "Let me have your John Hancock," when we mean your signature. But in all there were 56 signers of the Declaration. 52 of the 56 were Christians. Never let anyone tell you they were deists and atheists. Only people who never read their own words could say that; we can't let them rewrite history.
Patrick Henry, who is known for his "Give me liberty or give me death,"speech also had this to say which shows his view about Jesus Christ: "It cannot be emphasized too strongly or too often that this great nation was not founded by religionists but by Christians, not on religion but on the gospel of Jesus Christ. " Definitely he had to be a Christian.
Then our first President, the great George Washington, a great military leader, who was divinely protected during the War for Independence, as he had several horses shot out from under him, yet he remain unscathed, had this to say, "Without a humble invitation of Christ, we cannot hope to be a happy nation." He didn't say without Muhommed, or Buddha, or some higher power, it was "Christ". He wasn't afraid to be intolerant and say we had to have that invitation from Christ.
Next was the man people want to put down because of his owning slaves and supposedly having a child with one. Thomas Jefferson started several churches in Washington and a university in his home state. He said: "I am a real Christian, that is to say, a disciple of the doctrines of Jesus." Maybe he did some of the things he's charged with, but what Christian hasn't fallen short of the Glory of God. NONE.
Second President of the USA, John Adams said, "The general principles on which the Fathers achieved independence were the general principles of Christianity." In Isaiah 33:22: "For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; he will save us." These principles were used to set up our check and balance system. Judge - Justice Dept; lawgiver - Legislative Branch; and king - Executive Branch (president).
Finally, we come to the one that everyone wants to call a Deist. I think he may roll over in his grave everytime they say that - unless he was right (which I know he was) and he is in heaven with Jesus. Ben Franklin said: "Gentlemen, if it is true that not one single petal from any flower falls to the ground without escaping God's attention, will the distress of this nation go unheeded? Let us therefore determine to seek His face." I understand at that point the assembly had a prayer time, and there wasn't a dry eye in the house when they were finished.
People, we must keep in mind the verse in 2 Chronicles 7:13 and 14: If I shut up heaven that there be no rain, or if I command the locusts to devour the land, or if I send pestilence among my people; If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land." If ever Texas needed rain, it is now. Is he waiting for those prayers of repentence before he opens the skies once again?
I know this blog today sounds like a sermon and it pretty much is my pastor, Gil Lain's sermon this morning, but it's also a patriotic lesson on how our nation was founded on Godly principles by Godly men, and this weekend we celebrate their achievements in fighting and sacrificing for our freedom. Many, many people flee to the USA every year for this freedom. Let's not forget why the Lord blessed us as a nation. "One nation under God, indivisible, with liberty and freedom for all." Let's celebrate this weekend and remember our past, but look to our future with eyes focused on Jesus Christ.
Happy Holidays, and say "thank you" to a veteran if you see one and let him or her know we appreciate what he or she did for our freedom and liberty so we could have this celebration.
Patrick Henry, who is known for his "Give me liberty or give me death,"speech also had this to say which shows his view about Jesus Christ: "It cannot be emphasized too strongly or too often that this great nation was not founded by religionists but by Christians, not on religion but on the gospel of Jesus Christ. " Definitely he had to be a Christian.
Then our first President, the great George Washington, a great military leader, who was divinely protected during the War for Independence, as he had several horses shot out from under him, yet he remain unscathed, had this to say, "Without a humble invitation of Christ, we cannot hope to be a happy nation." He didn't say without Muhommed, or Buddha, or some higher power, it was "Christ". He wasn't afraid to be intolerant and say we had to have that invitation from Christ.
Next was the man people want to put down because of his owning slaves and supposedly having a child with one. Thomas Jefferson started several churches in Washington and a university in his home state. He said: "I am a real Christian, that is to say, a disciple of the doctrines of Jesus." Maybe he did some of the things he's charged with, but what Christian hasn't fallen short of the Glory of God. NONE.
Second President of the USA, John Adams said, "The general principles on which the Fathers achieved independence were the general principles of Christianity." In Isaiah 33:22: "For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; he will save us." These principles were used to set up our check and balance system. Judge - Justice Dept; lawgiver - Legislative Branch; and king - Executive Branch (president).
Finally, we come to the one that everyone wants to call a Deist. I think he may roll over in his grave everytime they say that - unless he was right (which I know he was) and he is in heaven with Jesus. Ben Franklin said: "Gentlemen, if it is true that not one single petal from any flower falls to the ground without escaping God's attention, will the distress of this nation go unheeded? Let us therefore determine to seek His face." I understand at that point the assembly had a prayer time, and there wasn't a dry eye in the house when they were finished.
People, we must keep in mind the verse in 2 Chronicles 7:13 and 14: If I shut up heaven that there be no rain, or if I command the locusts to devour the land, or if I send pestilence among my people; If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land." If ever Texas needed rain, it is now. Is he waiting for those prayers of repentence before he opens the skies once again?
I know this blog today sounds like a sermon and it pretty much is my pastor, Gil Lain's sermon this morning, but it's also a patriotic lesson on how our nation was founded on Godly principles by Godly men, and this weekend we celebrate their achievements in fighting and sacrificing for our freedom. Many, many people flee to the USA every year for this freedom. Let's not forget why the Lord blessed us as a nation. "One nation under God, indivisible, with liberty and freedom for all." Let's celebrate this weekend and remember our past, but look to our future with eyes focused on Jesus Christ.
Happy Holidays, and say "thank you" to a veteran if you see one and let him or her know we appreciate what he or she did for our freedom and liberty so we could have this celebration.
Friday, July 1, 2011
Country Property and/or Veterans
USDA is a way to get country property with no down payment. There is a great house on Western that fits the bill. If you want to live in the country and pay nothing down, get in contact with me.
Texas Land Board makes loans to Veterans for homes, remodelling and land, and you can have one of each kind of loan at a time. The home and remodelling is usually 1/2% below market, and if you are disabled there is another 1/2% discount on the rate and after first year, no property taxes. You can still get it as a VA loan but the TLB picks up part of the interest percentage and helps guarantee the loan. We are only 1 of 2 states that has state boards that helps their veterans; and you only have to live in Texas one day to qualify if you are a veteran or a Viet Namese who served in their war and participated with the USA. There are other benefits thru them such as retirement homes and burial rights, first chance to bid on property foreclosed on, etc. I am one of 13 approved realtors in this area for Texas Land Board, so if you are a veteran and need any of these, I'll be glad to help you. Please click "Follow" to get updates as they change.
Texas Land Board makes loans to Veterans for homes, remodelling and land, and you can have one of each kind of loan at a time. The home and remodelling is usually 1/2% below market, and if you are disabled there is another 1/2% discount on the rate and after first year, no property taxes. You can still get it as a VA loan but the TLB picks up part of the interest percentage and helps guarantee the loan. We are only 1 of 2 states that has state boards that helps their veterans; and you only have to live in Texas one day to qualify if you are a veteran or a Viet Namese who served in their war and participated with the USA. There are other benefits thru them such as retirement homes and burial rights, first chance to bid on property foreclosed on, etc. I am one of 13 approved realtors in this area for Texas Land Board, so if you are a veteran and need any of these, I'll be glad to help you. Please click "Follow" to get updates as they change.
How to have Curb Appeal
Great article from Kiplinger on curb appeal. Don't know if during this water shortage it will work, but maybe once the drought is over it might come in handy. Print and save until the drought is over.
Walk across the street from your house, turn around, take a good look at your yard and ask yourself if you're impressed by what you see -- or just plain depressed.
We can't all have yards worthy of being on the cover of a landscaping magazine. Those yards generally come with a high price tag. But a little cash can go a long way to improve your home's curb appeal. In fact, with existing homes selling at the slowest rate in a decade, if your house will be on the market, you can't afford not to spend some money and time on landscaping that will distinguish your house from others.
So we asked landscape professionals how homeowners could get the most bang for their landscaping buck within certain budgets: $100, $500, $1,000 and $2,000. They even threw in a few ideas for ways you can improve your yard without spending a cent.
Are you trying to improve your yard so you can enjoy it for years to come or to increase your chances of selling your house? Do you live in the city, 'burbs or countryside? What is your home's architectural style? Do you live in a wet or arid climate? Are deer or other wildlife an issue? "All these considerations can affect your approach," Vincenta says.
You don't want to waste money on plants that require full sun if your yard is in the shade. Nor do you want to try to replicate that cool, modern landscape design you saw on TV with your Victorian home -- especially if you're trying to sell it. The kind of person who would be interested in your home would want a garden that complements it.
"Do research before you go to a garden center and buy at random, or you'll end up with a hodgepodge," Vincenta says.
Make a significant impact on your landscape with a few 5-gallon trees for about $35 each, if you plan to stay in your home for at least five years, says landscape architect David Keith, owner of Arbor Studio, in Blanco, Tex. Smaller trees also tend to acclimate better.
Buy seeds, such as a mix of wildflowers, and cover much more ground than $100 worth of plants.ppeal.
Cheap Ways to Improve Curb Appeal
Boost your home's value by sprucing up your yard with these budget-conscious tips.
By Cameron Huddleston, Contributing Editor, Kiplinger.com
March 2009
Walk across the street from your house, turn around, take a good look at your yard and ask yourself if you're impressed by what you see -- or just plain depressed.
We can't all have yards worthy of being on the cover of a landscaping magazine. Those yards generally come with a high price tag. But a little cash can go a long way to improve your home's curb appeal. In fact, with existing homes selling at the slowest rate in a decade, if your house will be on the market, you can't afford not to spend some money and time on landscaping that will distinguish your house from others.
So we asked landscape professionals how homeowners could get the most bang for their landscaping buck within certain budgets: $100, $500, $1,000 and $2,000. They even threw in a few ideas for ways you can improve your yard without spending a cent.
Make a plan first
Regardless of your budget, before you grab a shovel or head to a nearby garden center, you need to determine your goals and ask yourself some questions to ensure your money is well spent, says Tara Vincenta, founder of Artemis Landscape Architects, in Brookfield, Conn.Are you trying to improve your yard so you can enjoy it for years to come or to increase your chances of selling your house? Do you live in the city, 'burbs or countryside? What is your home's architectural style? Do you live in a wet or arid climate? Are deer or other wildlife an issue? "All these considerations can affect your approach," Vincenta says.
You don't want to waste money on plants that require full sun if your yard is in the shade. Nor do you want to try to replicate that cool, modern landscape design you saw on TV with your Victorian home -- especially if you're trying to sell it. The kind of person who would be interested in your home would want a garden that complements it.
"Do research before you go to a garden center and buy at random, or you'll end up with a hodgepodge," Vincenta says.
For $100, you can ...
Create a welcoming entrance with one or two big pots filled with colorful plants. "A plant in a pot looks much bigger than when you put it in the ground," says landscape architect Sam Williamson, owner of Samuel H. Williamson Associates, in Portland, Ore.Make a significant impact on your landscape with a few 5-gallon trees for about $35 each, if you plan to stay in your home for at least five years, says landscape architect David Keith, owner of Arbor Studio, in Blanco, Tex. Smaller trees also tend to acclimate better.
Buy seeds, such as a mix of wildflowers, and cover much more ground than $100 worth of plants.ppeal.
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