Yes, this is a warning for spring home buyers! The holiday season is approaching rapidly and everyone tends to be in the festive holiday spending mood. This practice could easily delay, or completely derail your plans for a new home purchase in the first quarter of 2016. This is the advice I give to all of my clients so they don't sabotage their goals. Here are some suggestions that will keep you on track: MAKE A BUDGET for your holiday spending. Be sure to break down the amount to be spent on gifts, travel, holiday entertaining, etc. STICK TO THE BUDGET! Don't get … (5 comments)
credit: Cash Isn't King, Credit Is!
- 09/24/13 12:29 PM
Cash isn't king, credit is! Many Americans have struggled during this last economic crisis and many have opted to not make the same mistakes they have made before. In doing so, they have stopped using credit cards, Instead they have paid cash for all of their purchases. While I understand the desire to be debt free, this philosophy of cash only payment system creates a problem when they want to purchase a home. Are you paying cash for your rent? If so, this is a HUGE issue, let me say that again, this is a HUGE issue. Cash payments cannot … (28 comments)
credit: Don't lose those keys
- 11/10/12 12:11 AM
Don't lose those keys! Here is my advice if you are purchasing a new home. We all know that the mortgage process is more difficult since the crash of the real estate market. All of the reduced documentation, stated income loans are done. EVERYTHING is full documentation. This means, 2 years tax returns, pay stubs, W-2's, bank statement, asset statements, credit reports, IRS transcripts etc. All of the documentation must be clear, legible copies. The one thing I always tell borrowers during the mortgage process is to not make any new purchases, do not increase the balances on your credit cards … (23 comments)
credit: A new home in 2013
- 11/06/12 09:22 AM
If a new home in 2013 is one of your goals, I have some advice for you. The upcoming holidays often derail home buying plans. Don't make the mistake by over spending during this time of year. Most importantly stick with your budget. Don't have a budget, now is the time to put one together.
I recommend to my clients that they pay cash for their holiday spending including gifts, entertaining and travel. The last thing you want to do is run up the balances on credit cards and potentially lowering your credit score.
Make sure … (11 comments)
credit: But I have good credit!
- 09/23/12 09:42 AM
"But I have good credit" has been said by many prospective clients. I almost wish I had a nickel for every time I have heard it. This week there were three clients that made that statement and right now, not one of them will credit qualify for a mortgage.
Understanding your finances and credit is critical if you wish to purchase a new home. To start, DO NOT guess at what your credit score might be. You are entitled to a copy from each of the credit bureaus every year. Start with one, find out if everthing that is on … (15 comments)
credit: Credit History Is Necessary
- 04/22/12 02:10 PM
There have been many changes in the underwriting process for a mortgage. If you want to borrow money, you have to prove you have a satisfactory payment history. This applies to applications for a mortgage, car loan, or credit cards. In the mortgage process, the most important is showing on time payments for your housing. If you rent from an apartment complex, it can be documented with a verification of rent. If you rent from an individual, you must be able to document that payment history, Ideally, payment by check is preferably, at minimum would be by money order. The worst is … (12 comments)
credit: 5 More Things To Know About Credit Scores
- 09/21/11 07:08 AM
Building your credit score can take a lot of work, but sometimes doing the wrong thing will sabotage your efforts. Here are five other items you need to take into consideration when working to improve your credit score.
First, DO NOT pay old collections until you have established that this will not affect score. Many creditors will revive an account if not careful. This should be handled but after you get the score into range of qualifying for a mortgage. Nothing is worse than taking a 4 or 5 year old collection and making it current!
First, you must know the score. You must know where your score is now to determine if you are going to be considered credit worthy. The 3 digit number generated by the three credit bureaus will range from 300-850. The number will tell the lender how likely it is that you may default on the loan. You are entitled to a free copy of your report from each of the bureaus each year. This is the first place you want to start. To get a free credit … (4 comments)
credit: Credit and buying a home
- 06/28/11 02:42 PM
A credit report used when buying a home is probably one of the most frustrating pieces of information a home buyer has to deal with during the initial stage of the process. Without a doubt, credit is one key component of the mortgage process. As a buyer/borrower you need to understand that a credit report score is an analytical assessment of your credit worthiness. The three credit bureaus will tell you that the calculations are made based on a proprietary system. I will tell you. it is based largely on the account balances and payment history at that point in time. Here is the breakdown: 35% … (3 comments)
credit: Foreclosure On Your Credit Report
- 04/11/11 02:49 PM
A foreclosure on your credit report will have an impact on your ability to purchase a new home. The amount of time you have to wait will depend on the type of financing you are looking for and the amount of your down payment and the rest of your credit rating. The first thing you should know is that a foreclosure (or any public record ie, bankruptcy, judgement, foreclosure) can negatively impact your credit score between 100-200 points. You can plan on that foreclosure being on your credit report for the next 10 years. Under today's guidelines, a new purchase is … (0 comments)
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