Is one better than the other? Are they different from one another? The answer is Yes, and Yes.
Generally when being prequalified, a lender will estimate what a buyer qualifies for based on the information they have been told by the buyer. The problem with this is that even the most informed buyer may not know what exactly what is being reported on their credit.
With a preapproval a lender will actually pull credit, verify a buyer's income, assets, and obtain any other information the lender will need for final underwriting. In essence, the lender is preunderwriting the loan in order to determine what the buyer actually qualifies for. This method if far more accurate than a simple estimate based on unverified information. As a result, a buyer who presents an offer with a preapproval letter will generally have more sway over a transaction than one who only has a prequalification letter. Furthermore, being preapproved will lessen the chance of thing going bad at the last moment.
Should you have any questions or need further information, please don't hesitate to contact me, (775) 220-1630
Your credit score will directly affect how much and at what rate you will be able to borrow from a lender. Whether you're looking to purchase a home or simply finance a car, you should always have an idea of what your score is and what factors may affect it.
A great way to start understanding your credit is to obtain an actual copy of your credit report. According to the "Fair and Accurate Transactions Act" (FACT ACT), you are entitled to receive a free copy of your report from all three major credit companies. www.annualcreditreport.com to order your free report. Your actual scores will be missing from the report as you are only entitled to receive the report itself for free. If you are interested in seeing your scores, you will have to pay. Each company uses a slightly different format, but once you start to go through them you will get an idea of how things are being reported.
Some factors that will bring down your scores are as follows:
•1. Maxing out your available credit.
•2. Having few lines of credit with low use.
•3. Applying for credit at many places within a short period of time.
•4. Errors and multiple entries on your report.
•5. Allowing unpaid bills to go into collection agencies.
Factors that will improve your scores:
•1. Constantly using your credit.
•2. Paying your credit/bills back on time.
•3. Multiple lines of credit in good standards.
A great way to enhance your credit is to obtain around 4 different lines of credit. Use them to buy your big ticket items, and try to pay them down as fast as you can. But be careful not to pay them down to zero. Most lenders and other creditors want to see that you are using your credit often, but not over exhausting your limit. If they don't see enough activity, they don't have much information to judge your amount of credit responsibility on.
When you review your credit report, be on the lookout for items that shouldn't be there. Most items are suppose to drop off after seven years (there are some exceptions), however sometimes you will see things that are still being reported that shouldn't be. Any accounts that you closed should state "closed by consumer." Many times you will find that these accounts are being reported as "closed by creditor." This type of reporting has a negative impact on your credit. Sometimes you will also find the same account being reported multiple times. If it's an account in good standing, this isn't really a problem. However if a negative account is being reported twice, it may be impacting your credit more than it should. In these cases, you would want to dispute these reports (Contact me for further information on disputing your credit reports).
Should you have any questions or need further information, please don't hesitate to contact me, (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com
Fractional Ownership is a concept we're seeing more of. Although not necessarily a new concept, more and more people are looking to the advantages and minimal risk of having fractional ownership in a property. The idea is a great way to invest in a second family home you will only plan on using certain times of the year. Rather than spending $1 million, a buyer may only need to invest $250,000 and have the right to use the property ¼ of the year. This way, buyers are not fully exposed to the risk as if they had purchase the property outright for the full amount.
You may think of it similar to a timeshare, however with this type of transaction each individual buyer owns an actual share of the property and receives a deed for their share. Also, fractional ownership has a larger backing of lenders and real estate professionals since it is still viewed as an actual real estate purchase.
Should you have any questions or need further information, please don't hesitate to contact me,(775) 220-1630
Or visit my blog at www.SellingNorthernNV.com
-The days of loose lending are over. The same ARMs that had a part in creating our recent housing slump have now become extinct.
-Inexperienced and shady agents are gone. The only agents able to survive in today's market are those who are able to develop trust with their clients based knowledge and experience. Buyers and sellers are able to pick the cream of the crop in today's market.
-Today's increasing inventory means buyers have the opportunity to purchase exactly what they are looking for.
-Short sale and REO listings are becoming are large percentage of our current market. This is enabling buyers to purchase homes below market value with built in equity. It is also creating a need for agents who have experience and knowledge in handling these difficult transactions.
Should you have any questions or need further information, please don't hesitate to contact me,(775) 220-1630
You always hear companies and agents say they are "Full Service" Realtors. Unfortunately, there are too many agencies calling themselves "Full Service" and not living up to their clients' expectations. So, what should you expect from your "Full Service" agent? In addition to your personal expectations, here are some aspects you should require before choosing who you do business with:
Education-
Before entrusting someone to fulfill your real estate needs, you want to ensure you are selecting an agent who is dedicated to continually educating themselves about their industry and the current market. Unfortunately, obtaining a real estate license isn't the most difficult of things to do. There are too many agents in this industry who skate by with the minimal continuing education courses required to keep their license. A "Full Service" agent should continuously be educating themselves and staying on top of current market trends. Ask your agent how often they update themselves on new market data. If their answer is anything other than daily (or at least weekly), move onto another agent.
Communication-
One of the biggest complaints from both buyers and sellers is the lack of communication from their agents on even a basic level. You should be receiving some form of contact from your agent every week. Even if it's a simple email to tell you that there hasn't been any new activity on your property. What's worse is when agents fail to return clients phone calls and emails in a timely fashion. If your "Full Service" agent doesn't determine your preferred method of contact and doesn't have a steady system for keeping in contact with you, you should question if they are providing you with "Full Service."
Company Image-
There are several fly by night companies out there that try and pass as "Full Service" agencies. The company you choose should have guidelines in place that require a level of professionalism and dedication from all their agents. There are many companies (including well known chains) that will take on any agent who comes through the door. Find out how extensive of an interview process the companies you're deciding on have, and do they retain the cream of the crop in your market.
Long term-
Study shows that 50% of all licensees are gone within a year, and that 80% leave the industry by their second year. Of the 20% who remain, many still lack the work ethic and devotion it takes to survive in a down market. As a result, many agents will put their license on ice until the market rebounds. Within the last two month we've seen a large increase of agents coming back into the market that originally changed their license to inactive over the last couple of years. So even if the agent you're speaking with has several year of experience, find out what amount of it was spent with an inactive license. You'll find only a handful of agents have what it takes to be to deliver results to their clients no matter what the market conditions are.
Systematic-
Every agent you speak to will tell you they can do the job you're looking for. But do they have a system in place to actually deliver? You want to make sure your agent has a system in place to ensure that your needs will, (not might) be met. Studies show that less than 20% of agents have even developed a process for their original interview, let alone for an entire transaction. During your initial interview process, a "Full Service" agent should be able to provide a step by step agenda which will prove to you without a doubt that they are able to fulfill your needs.
Should you have any questions or need further information, please don't hesitate to contact me (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com
Here are a few rules when considering an FHA loan.
- You will need some credit. However, you can use credit reference letters from utilities companies if you have no credit history.
-If you have minor collections, it is possible to still get approved if you have other strong accounts on your credit report.
-Verified income. FHA will require proof of income. It can be very difficult to obtain FHA approval if you're self-employed.
-Although FHA property guidelines have eased up a little, major systems will need to be working at time of inspection.
-FHA requires a down payment. However this down payment can be obtained from several sources (borrowers' savings, family gift, grant/loan from First Time Homebuyer Assistance programs, Gift from Non-Profit Organization).
-FHA doesn't require any minimum credit score, but most lenders will require a minimum score of 500 - 580.
-FHA allows for manual underwriting if the FHA automated approval system doesn't approve the loan.
Should you have any questions or need further information, please don't hesitate to contact me (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com
Although proper interior design is important when selling your home, with the amount of inventory available today it is almost imperative. Using modern design ideas will allow buyers to visualize their new life in your home. Staying on top of what today's buyers are looking for in their next home will increase your odds of selling your home for top dollar. Here are just a few things to consider when deciding on interior decor: Buyers are no longer looking for elaborate designs. Today's buyer wants to live in home with leek leather furniture with simple shapes. People today want to have room to breath. This means fewer accessories and more open furniture. Rooms should be well designed but useful. The bulk of the buyers in the market today are the Baby Boomers. They are looking for homes that reflect what they grew up with. Think of fifties styles with a more modern look. Built-in window seats with storage and utilizing beds with drawers underneath will free up a lot of space in your home. People are also wanting their homes to be more inviting to guests. Furniture that is comfortable but also puts them in a position to easily converse with others is a must. Screens and movable walls allow for a more versitile home. Today more than ever we see the kitchen being the main focal point of the home. For this reason we are seeing a new level of decorations being used in the kitchen. Colors also play a major role in appealing to other peoples taste. Although color is always going to be a persons personal preference, we are seeing more and more people who dare to use rich and bold colors - purples, yellow, reds and blacks are growing in popularity. We are also seeing a desire for metallic accents as well. Brushed nickel door knobs and hinges gives a home more personality. Experimenting with new textures can be very attractive for buyers. We're seeing more wood and tile flooring replacing carpeting. Not to say carpet is being eliminated from homes, just toned back a bit. When designing a new look for your home, above all trust your own taste and don't go over board. Having an exotic look to your home will appeal to buyers, but only if it's done in a tasteful manor. You can get some ideas for what is "in" by paying attention to the following: Desirable hotels generally are on top of what the consumer want to make them feel comfortable, pay attention to the new fashions and mimic them in your home, some of the popular TV shows have an influence on how people want to live as well.
Should you have any questions or need further information, please don't hesitate to contact me,
Whether you're a first time home owner or a seasoned vet, here is a short check list of things you should be doing that'll prevent large problems down the road: Furnace Filters: You should be changing your filters monthly during the winter season. By doing so, you eliminate the risk of having a clogged filter that will not only decrease your furnace's efficiency, but also any excess strain on the blower unit. Water heater: One more chore to put on your spring cleaning list should be to drain your water heater every year. Sediment has a tendency to build up over the year inside your water heater. By draining your water heater, you remove the majority of this sediment which can prolong the lifespan of your water heater. Checking for leaks: From time to time, you should make a habit of poking your head underneath your sinks to check for leaks or water stains. If you catch these leaks early, you can avoid having to deal with extensive water damage down the road. Know their lifespan: You should know the average lifespan on everything from your appliances to your roof and replace them as they near the end of it. Exterior Leaks: you should be checking around your home for any potential breach in exterior of your home with every changing season. Check for loose siding, missing shingles, and gaps around your home's flashings. Problems with any of these can allow for water to get in and puddle between these items and your home which can lead to water damage or even mold. Protect your foundation: Walk the perimeter of your home and even get underneath it if you have a crawl space. Check for any signs of cracking or deterioration. Also when checking the perimeter, make sure the ground's pitch is going away from your home. Over time a home will settle, and may change the surrounding pitch of the ground with it. You always want water to drain away from your home. Should you have any questions or need further information, please don't hesitate to contact me,(775) 220-1630 Or visit my website at www.SellingNorthernNV.com
Hope Now is a an initiative intended to help borrowers who may be facing default when their mortgage rate resets. By taking advantage the this initiative, borrowers who otherwise become default on their mortgage can avoid the possibility of facing foreclosure. The most desirable part of the initiative is an interest rate freeze. The following are the steps you will need to take if you would like to take advantage of the Hope Now initiative: 1. Call 1-888-995-HOPE, the hotline is available 24 hours a day, 7 days a week. You will be put in contact with a counselor approved by HUD. 2. After obtaining some financial information, the counselor will determine if you are eligible to participate in the initiative. The initiative applies to borrowers who secured their loan between Jan. 1, 2005 to July 31, 2007 and who's rate resets between Jan. 1, 2008, to July 31, 2010. The initiative does not apply to home equity loans. You should be prepared to spend around 45 minutes on the phone. 3. Once the counselor determines if you are eligible to participate in the initiative, he/she will recommend a course of action. It can take several calls to get to this point of the process. 4. Once the counselor and you have determined the best course of action, you will need to contact the mortgage servicer to initiate this a workout plan. Due to the overwhelming amount of REOs banks are having to deal with, they are becoming very flexible in an effort to minimize anymore foreclosures. 5. If you are current on your mortgage, servicers will have more flexibility in working with you. More often then not, refinancing will be the typical solution but not the only one. If refinancing is an option for you, they servicer is suppose to help you avoid any prepayment penalties. 6. Although the interest rate freeze is what attracts the majority of people to the hotline, it only applies to borrowers who meet specific guidelines: borrowers who are current on their mortgage but wont be able to afford their payments after the rate increase and can't qualify for refinancing. 7. If you are already unable to make your payments before your rate resets, there are few options available to you. In this situation, the course of action may be to negotiate a deed in lieu of foreclosure or a short sale. Related posts: Avoiding Forclosure Increasing Forclosures Repairing Your Credit
Should you have any questions or need further information, please don't hesitate to contact me,
Although you may not think it, but 21% of the green house gas emissions produced in the united states come from everyday household energy usage. By implementing cost efficient energy saving techniques, you can help reduce these emissions while saving money at the same time. Improving your homes efficiency Compact fluorescent light bulbs last up to 10 times longer, produce 75 percent less heat, and still produce the same amount of light as an incandescent bulb with only 25 percent as much energy usage. By simply swapping your old lights out for these new ones, you can see a drastic reduction on your monthly energy bills. If you want to take it to the extreme, you can easily make the switch to solar power. Solar panels are getting cheaper to purchase, easier to install, and will last for around 20 years. In addition to cutting your energy bills, the federal government also offers a tax credit of up to 30 percent of your installation cost. Reducing Heat Loss By making your home almost air tight, you can improve your homes energy efficiency by 20%. Add/replace old weather-stripping to your windows and doors as well as plugging any other leaks in your home can stop/reduce heating and air conditioning losses. You may also want to consider adding insulation where it's missing or has a minimal amount. this will reduce heating/cooling expenses as well as reduce moisture buildup in your ceilings and walls. Electronics and Appliances 75% of a homes electricity is consumed by electronics and appliances while they are turned off according to the U.S. department of Energy. This can be reduced by unplugging devices when their are not in use. You can also reduce this amount by swapping out your old appliances with new energy-saving models. Hot Water For every 10 degrees in temperature you increase your water heater, you use an additional 5 percent of energy. By reducing the temperature you can be saving yourself unnecessary expenses as well as lengthening the lifespan of your water heater. If you wanted to eliminate this problem all together, Tankless water heaters only warm your water when you need it. Instead of constantly heating your water to maintain a set temperature, these devices use up to 60% less energy than your traditional water heater. Should you have any questions or need further information, please don't hesitate to contact me,(775) 220-1630 Or visit my blog at www.SellingNorthernNV.com
Joshua Talayka
Fractional Ownership is a concept we're seeing more of. Although not necessarily a new concept, more and more people are looking to the advantages and minimal risk of having fractional ownership in a property. The idea is a great way to invest in a second family home you will only plan on using certain times of the year. Rather than spending $1 million, a buyer may only need to invest $250,000 and have the right to use the property ¼ of the year. This way, buyers are not fully exposed to the risk as if they had purchase the property outright for the full amount.
Here are a few rules when considering an FHA loan.
Buyers are no longer looking for elaborate designs. Today's buyer wants to live in home with leek leather furniture with simple shapes. People today want to have room to breath. This means fewer accessories and more open furniture. Rooms should be well designed but useful. The bulk of the buyers in the market today are the Baby Boomers. They are looking for homes that reflect what they grew up with. Think of fifties styles with a more modern look.
Colors also play a major role in appealing to other peoples taste. Although color is always going to be a persons personal preference, we are seeing more and more people who dare to use rich and bold colors - purples, yellow, reds and blacks are growing in popularity. We are also seeing a desire for metallic accents as well. Brushed nickel door knobs and hinges gives a home more personality.
Exterior Leaks: you should be checking around your home for any potential breach in exterior of your home with every changing season. Check for loose siding, missing shingles, and gaps around your home's flashings. Problems with any of these can allow for water to get in and puddle between these items and your home which can lead to water damage or even mold.
Hope Now is a an initiative intended to help borrowers who may be facing default when their mortgage rate resets. By taking advantage the this initiative, borrowers who otherwise become default on their mortgage can avoid the possibility of facing foreclosure. The most desirable part of the initiative is an interest rate freeze. The following are the steps you will need to take if you would like to take advantage of the Hope Now initiative:.jpg)
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