Financing, Home, Home Buying, Home Loan, Real Estate, Uncategorized

Topic Tuesday: Credit Score and Home Buying

 

What is a Credit Score? 

Your credit score is a three-digit number that relates to how likely you are to repay debt. Banks and lenders use it to decide whether they’ll approve you for a credit card or loan. There are three main credit bureaus – Equifax, Experian and TransUnion. Your score is based on factors such as:

  • Your payment history
  • How long you’ve had credit
  • The types of credit you have (credit cards, auto loans, student loans, mortgages, etc.)
  • Your credit limits and how much of those limits you’re using
  • How much debt you have
  • Hard inquiries on your credit report

Does Your Credit Score Affect Your Home Buying Ability?

Yes. According to Mortgage Banker, Ross Bennett, of Paramount Residential Mortgage Group, Inc. “Mortgage lenders more closely scrutinize loans with credit scores below 620 since it is known that these loans have a greater likelihood of default. Lenders will then look at other factors, such as accumulated assets, down payment, loan type, and percentage increase in housing expense or debt ratios when evaluating loans with lower FICO scores.”  To learn more from Ross visit his blog here.

Some Lenders may consider a score as low as 580, however, it depends on other compensating factors. Those factors may include outstanding court judgments, delinquent child support, defaulted student loans and tax liens. These things can negatively impact a borrower’s ability to borrow for a home regardless of an acceptable credit score. Additional information considered may be the amount of debt you already have, how much you have in savings, total assets and current income.

If your score is not quite where it needs to be, fear not! There are things you can do to get it there!

  • Pay all of your obligations on time
  • Keep your revolving balances to less than 20% of the maximum credit line.
  • Pay off outstanding collections, judgments and tax liens. Keep proof of payment.
  • Do not dispute credit accounts on your report. Disputing accounts can actually affect your loan approval.
  • and more…

Under federal law, you have the right to obtain a free copy of your credit report from each of the nationwide consumer reporting agencies once a year. You can do so here

 

Shout out to Ross Bennett for assisting with this blog post!

Until Next time…

 

Home, Home Buying, Home Selling, Real Estate, Uncategorized

Announcing…

the newest family member of RE/MAX Premier Realty…ME! 

I am pleased to let you know of my new position with RE/MAX Premier Realty in Mount Dora, FL. You can continue to expect the same commitment and dedication that I have shown for the past five years with the additional support of a company that offers properties and offices throughout Lake and Marion Counties. RE/MAX Premier has 8 offices and has closed 350 Million in real estate the past 12 months.
It is my hope with this change that I will be better able to serve you in all your real estate needs at the present time as well as in the future. The tools and support team afforded me and my fellow agents are what I am most excited about with this change! I look forward to sharing these exciting new features as your trusted Real Estate Professional. Please feel free to contact me with any questions you may have, and let me know when I can assist you in finding your next property.
Come find me at 18097 N US Hwy 441, Suite A, Mount Dora, FL 32757!
Until next time…

 

Financing, Home, Home Buying, Home Loan, Home Selling, Real Estate, Uncategorized

Topic Tuesday: I Am Ready to Buy A House, What’s My First Step?

 

Ready to buy your first home, but have no idea where to begin? Just taking this simple step, first, will get the ball rolling on a successful home buying experience!

 

Get Pre-Approved by a Local Bank or Mortgage Lender 

Why? Getting pre-approved is an important first step because (unless you prefer or are able to pay cash) you will need financing from a bank or local lender to purchase a home and your pre-approval will tell you what price home you can afford to purchase. It is recommended you speak to at least 3 banks/lenders. While they will have similar loan programs to offer you, one lender may be able to offer you a better rate, down-payment, etc. and shopping around will ensure you get the best deal. A short phone call where the loan officer asks a few standard questions will give you an idea of what you will be approved for and you can then begin the home search! The questions will be regarding personal information about your specific finances and credit history, but will be kept private between you and the loan officer.

Once approved by the lender of your choice, you will then begin working on gathering requested documents for the lender. They will require documents such as pay stubs, bank statements, W-2’s and so on throughout the process to help confirm and guarantee your approval. You begin providing these documents immediately, but can continue to provide them along the way. So do not worry, you can begin the home search (the fun part) immediately! If you find out you are not yet pre-approved to buy a home, don’t be discouraged. You still made the right first step to getting pre-approved by speaking to a lender because they can give you some tips on how to work towards being pre-approved sooner rather than later.

Another good reason to have your pre-approval in hand when you begin your home search is it makes your offer, when you submit one, stronger and is most times a required document when submitting an offer. When you find “The One” you will be ready and won’t risk an opportunity to secure the home of your dreams! Some Sellers even prefer you provide proof of pre-approval before even viewing their home.

If you aren’t sure which local lenders to speak to, your Real Estate Agent can recommend a few for you. If you do not yet have a Real Estate Agent, see my last #TopicTuesday Blog “Choosing A Real Estate Agent”  for tips on finding the right Agent for you.

Next week we will discuss how your credit score affects your ability to buy a home. Until next time…

Blogging, DIY, Home, Home Buying, Home Selling, Home Staging, Local Events, Real Estate

Welcome Readers

 

Hello and Welcome! I am so glad you are here. My blogging skills are a little rusty, so be patient with me as I get back in the groove. I have been wanting to get back into blogging for some time now, but was over thinking the process because I want it to be perfect for you, the reader! The above Albert Einstein quote was my push to just sit down and get down to business.

Blogging is another way for me to be a resource for my friends, family and YOU! I intend for this blog to be your go to source for all things “Home”. We will talk about frequently asked questions regarding Real Estate, home buying and selling, home staging and decor, DIY projects for the home, local events and more. As the blog evolves, I hope to introduce guest voices to share their knowledge and expertise as it relates to “Home”.

I want to hear from you and encourage you to click the Contact tab to submit your questions, let me know what you would like to see on the blog or to just say Hi! Don’t forget to SUBSCRIBE so you don’t miss out on all the exciting thing to come here at Official Audrey James. You can do so by entering your email at the top right of this page. Until next time…