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Home Buyers
If you’re thinking of buying a home, you probably have a million thoughts running through your head, and I’ll be at least a few have to do with credit. With our current gutter economy, the more information you have, the better off you’ll be. So let us then examine just how your credit can affect your home purchasing power.
If You’ve Got It, Flaunt It
If you’ve been a responsible person up till now, and find that you have good credit, you want to make sure that you’re recognized for your fiscal efforts. The high FICO score you’ve obtained will play a huge role in what sorts of interest rates you’ll be offered during the home mortgage loan process. If you’re unsure of your credit score, you can get a copy of your credit report free (once yearly) from all three of our major credit reporting agencies (Experian, Equifax, and Trans-Union).
Scores of 619 or are listed as “Poor”, whilst the average American will have a credit score of between 620 and 659. Good credit scores range from 660 to 749, and if you have a credit score of 750 or above…you can be sure that you’re entitled to the best financing offers out there.
How Do Lenders Decide How Much Money to Lend?
Debt to income ratio is the first thing that most lenders will look at. They compare the amount of your gross income (that is before tax) with the amount of your Housing vs. Non-housing expenditures. Non-housing expenditures include those long-term debts such as a car or student loan, alimony or child support, or credit card balances. The FHA states that a mortgage payment should not be more than 29% of your gross income and that the Mortgage payment, when combined with your non-housing expenditures, should not exceed 41% of your overall income. Of course things like down payment, closing costs, credit history, and a slew of other factors will be considered by the lender when deciding the maximum amount that they would be willing to lend.
Of course the old adage is still true that “Location, location, location” plays an important role in your ability to sell AND PURCHASE a home. Believe it or not, though the lending standards are considered equal across this nation, some areas have suffered a great deal more from the current economic turmoil, and taking this into consideration, you might find you stand a better chance of being financed for a home in a different location. It pays to shop around…literally!
Breaking It Down
If you don’t have the best credit, it may seem a bit cumbersome to get an unsecured personal loan, but it’s not impossible. Besides what we’ve mentioned so far, there are other things that can affect your credit score such as the amount of time you’ve lived your current residence or the amount of time you’ve worked for your current employer. Sometimes all that’s needed to raise your credit score is time.
Buying a home can be a stressful, and at times, terrifying experience, especially with the current economic uncertainties, and if you’re not sure if you’ll have a job tomorrow, that can add to the pressures you’re feeling, but it is not impossible to get into the home of your dreams. You simply need to be aware of how your credit score plays a role in the process of buying a home, and then have patience as you work through the process of finding what sort of financing option will work best for you.
Posted By Lewis Van Tassel
Lewis is the Education Manager for MDJustlisted.com
specializes in Columbia Md Real Estate
and Baltimore Md Real Estate
Posted: August 20th, 2009 at 2:33 pm
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Home Sellers
If you are like a lot of people who are looking to sell their home in this “down market”, you’re probably worried about your home sitting on the market for a long time only to take a loss when it finally sells. Keeping in mind that it is a buyers market, you can still come out on top, and sell your home fairly quickly, if you take a moment to plan before you execute.
Probably one of the best resources out there for knowing how to increase the value of your home is your real estate agent. It is there business to find value in a home and highlight it to prospective a buyer. A real estate agent can walk with you through and around your home, and point out the small things that can be done to bring big improvements in your home’s value. A little bit of work in the beginning can mean huge returns at closing.
Now let’s talk about some of those small things that can be done to boost your selling potential:
First impressions really do make all the difference, and in this context that means making sure that your yard is looking fantastic. Keeping your lawn beautiful, making sure that flower beds are weeded, power washing the driveway… These are all little things that will pay off as they let the prospective buyer know that your’s is a home that has been well cared for.
Paint, Paint, Paint… Nothing does more to improve the interior appearance of a home than freshly painted walls. It’s easy to do, and costs very little. Make sure that showerheads and toilet seats are brand new and that you get rid of any rust or mildew rings anywhere in your bathroom. Clean and bleach the grout!
Keep your kitchen spotless. Ensure that all food preparation areas are clean enough to eat off of at all times. Keep your oven clean and functional and organize any storage pantries and cupboards.
Rearrange your lighting to bring out the best areas in your home. You want to highlight those things that are good while drawing attention away from any less positive aspects of your home.
Finally… Live in your home in such a way that you would be happy to have a stranger come in and look around at any time with little notice. That means, keeping everything spotless and dust free at all times.
Looking through the list above, and considering other options that your real estate agent might toss out there, you might feel a bit overwhelmed, but in reality, these are easy and inexpensive things that you can do to significantly enhance the value of your home in the eyes of a buyer. The end result, you walk away from your home more quickly and with more money in your pocket.
Posted By Lewis Van Tassel
Lewis is the Education Manager for MDJustlisted.com
specializes in Columbia Md Real Estate
and Baltimore Md Real Estate
Posted: July 25th, 2009 at 11:06 am
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Home Sellers
In the current economic climate, the purchase of a foreclosed home can be a surefire way to see huge profit returns. A foreclosed home is a home that was purchased by a buyer who, after time, found they were unable to afford. These homes are left vacant and banks, especially at this period in time, are very anxious to move new buyers into them. Even if you’re unsure if you can qualify, it’s worth a try, and you’ll be surprised just how much banks will work with you to ensure a successful purchase.
“For Sale” signs are a very not uncommon item these days. Drive through virtually any neighborhood, from the backwoods, to the upscale and affluent, and you’ll see them, and hanging at the bottom, you’re likely to find a smaller sign that reads “foreclosure”. This sad story is one we’ve heard all across this nation, people having to leave their homes vacant and move on. The story, however, need not have a sad ending. An empty home is a home waiting for a new owner, someone who will be able to care for it, love it, make it shine in the neighborhood, and that someone could be you, and at great price to boot!
If driving around neighborhoods isn’t your thing, consider using an online listing service. These “home finding powerhouses” work for you, as you enter in information you’re looking for such as, location, price range, type of home, etc. They then periodically will send you notifications of homes that fit your requirements. You can also check out your local newspaper, and you can even go straight to the bank or real estate office and request a listing of their foreclosed homes. They’ll be happy to give you a copy.
Once you’ve done your searching, you’ll probably be surprised to find just how many fantastic deals there are out there right now. You’ll need to know the steps to take to make your move on purchasing one of those great homes. Try these:
Find the home that you can’t live without. Look at as many homes as it takes until you find that perfect one and then don’t hesitate.
Decide how you’re going to purchase your home. Who will you finance through? What method will you use to finance your home home? You’ll want to be thinking about your income, your credit, how much savings you have, and how long you plan to own this home in order to answer these questions.
Make sure your lender is well informed about you. Provide them with your average long-term income, let them see your bills (all of them), and past tax forms (usually a couple of years worth will do), the purchase agreement, etc. This is probably the most time-consuming part of all, and tedious, but ensuring that your lender is well informed about your financial readiness will help to ensure you’re getting the right financial “fit” in your home selection.
Finally…you’ll want to go for a walk, take a drive, go see a movie, do ANYTHING but sit by the phone and wait for that call regarding whether or not you have been approved for your loan. “Loan Anxiety” can be very stressful. Find something to take your mind off of it while you wait to hear from your lender.
After all is said and done, if successful, you’ll be tearing that sign out of the front lawn and backing up the moving van. Congratulations on a fantastic deal on a fantastic new home!
Posted By Lewis Van Tassel
Lewis is the Education Manager for MDJustlisted.com
specializes in Columbia Md Real Estate
and Baltimore Md Real Estate
Posted: July 23rd, 2009 at 3:07 pm
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Home Buyers
Wouldn’t it be nice to have a little bit of help when you really need it most from the United States in the form of a government grant? If you know where to look and you have the patience, you, too, can help yourself to a really sweet deal, courtesy of good ‘ole Uncle Sam.
Grants from the government come in all shapes and sizes. If you think you do not qualify, you may be pleasantly surprised at what just a little bit of effort might turn up.
Before You Start Your Search
As a first time homebuyer, not only will you get a handsome tax break at the end of the year, you may be partially funded by Uncle Sam to help you buy that house you have always dreamed of. Yes Gertrude, our government really does want to see you succeed, and they are willing to help you, too.
The first thing that you need to do is sit down with a pencil and piece of paper and figure out exactly what you make yearly, both before, and after taxes. Get your last year’s tax return and look it over very carefully. If you had it professionally prepared at one of the hundreds of income tax preparation services nationwide, chances are you are at less risk of having it questioned.
After you have finished figuring out what you bring in, the next step is just the opposite. Gather up all your bills and figure out what your expenditures are each month. Multiply that by twelve, and there you have a good idea of your yearly expenses.
Finally, check your credit score with one of the big three credit agencies. You are allowed one free credit report from each per year. Take advantage of them.
Searching For That Government Funding
So, now that you are armed with your basic financial information, where do you start looking? Fire up that computer and point your browser to www.usa.gov. That is the United States Government official information website. Here, you can search for many programs that are geared exclusively for first time homebuyers. There you will find information about the HUD homebuyer assistance program, as well as state sponsored program information specific to your locale.
Down Payment Assistance Grants
Just about every down payment assistance program, tax credit, and housing grant program offered to first time homebuyers runs under an F.H.A. loan. The first step is to use all that information about your finances that is sitting in front of you to help you prequalify into a program. Look for a grant that is related either to H.R.3221, which is going to be the program that will help you get a grant, or as a first time homebuyer, a government down payment assistance grant.
Many local and state agencies run what is known as bond programs, which generate funds to help many individuals, and families with a down payment in getting into that new home you’ve been dreaming of.
The current Presidential Administration wants to see you succeed in being a first time homebuyer and owner. To that end, they are happy to provide you with a huge tax credit, and with government grants geared exclusively to the first time homebuyer.
Posted By Lewis Van Tassel
Lewis is the Education Manager for MDJustlisted.com
specializes in Columbia Md Real Estate
and Baltimore Md Real Estate
Posted: July 13th, 2009 at 7:42 pm
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