PattiMace.com

I wanted to touch base on one of the major issues people deal with when trying to make a major purchase such as a home.  The interest rate you are quoted when purchasing a home is based on your credit score that is pulled from the 3 major Credit Reporting agencies. These agencies get this calculated information from different companies who lend credit and if paid on time it gives you a rating, the higher the better!  With help from Wikipedia I want to get the word out to individuals how important it is to try and maintain your credit.

Credit ratings are determined differently in each country, but the factors are similar, and may include:

• Payment record - a record of bills being overdue will lower the credit rating.
• Control of debt - Lenders want to see that borrowers are not living beyond their means. Experts estimate that non-mortgage credit payments each month should not exceed more than 15 percent of the borrower’s after tax income.
• Signs of responsibility and stability - Lenders perceive things such as longevity in the borrower’s home and job (at least two years) as signs of stability. Having a respected profession can improve a credit rating.
• Credit inquiries – An inquiry is a notation on a credit history file. There are several kinds of notations that may or may not have an adverse effect on the credit score. Soft pulls don’t affect the credit score and are characteristic of the following examples:

A credit bureau may sell a person’s contact information to an advertiser purchasing a list of people with similar characteristics, like homeowners with excellent credit. A creditor can check a person’s credit periodically. Or, a credit counseling agency, with the client’s permission, can obtain a client’s credit report with no adverse action. Each of the preceding examples are commonly referred to as a “soft” credit pull.

However “hard” credit inquiries are made by lenders. Lenders, when granted a permissible purpose by a borrower for the purposes of extending his credit, can check his credit history. Hard inquiries from lenders directly affect the borrower’s credit score. Keeping credit inquiries to a minimum can help a person’s credit rating. A lender may perceive many inquiries on a person’s report as a signal that the person is looking for loans and will possibly consider that person a poor credit risk.

• Credit cards that are not used - Although it is believed that having too many credit cards can have an adverse effect on a credit score, closing these lines of credit will not improve your score. The credit rating formula looks at the difference between the amount of credit a person has and the amount being used, so closing one or more accounts will reduce your total available credit. And the lower the percentage of available credit, the more the credit score will drop. The credit formula also factors in the length of time credit accounts have been open, so closing an account with several years of history is another avoidable credit mistake.

Consequences

The information in a credit report is sold by credit agencies to organizations that are considering whether to offer credit to individuals or companies. It is also available to other entities with a “permissible purpose.” The consequence of a negative credit rating is typically a reduction in the likelihood that a lender will approve an application for credit under favorable terms, if at all. Interest rates on loans are significantly affected by credit history—the higher the credit rating, the lower the interest while the lower the credit rating, the higher the interest. The increased interest is used to offset the higher rate of default within the low credit rating group of individuals.

In the United States, in certain cases, insurance, housing, and employment can also be denied based on a negative credit rating.

Note that is not the credit reporting agencies that decide whether a credit history is “adverse.” It is the individual lender or creditor which makes that decision, each lender has its own policy on what scores fall within their guidelines. The specific scores that fall within a lender’s guidelines is most often NOT disclosed to the applicant due to its nature as a trade secret. In the United States, a creditor is required to give a reason for denying credit to an applicant immediately and must also provide the name and address of the credit reporting agency who provided data that was used to make the decision.

Credit Bureaus

Several credit reporting companies: Equifax, Experian, TransUnion .

I know that this is a lot of information to take in, but the lower the interest rate the more home you can purchase. I will let you absorb this information and then blog more on the various mortgage notes based on the interest rate.

If you have guestion email me at pattimace@sbcglobal.net.  Hope to see you subscribe to my blog at www.pattimace.com.

Chat again soon,

Patti

This home has been well taken care of, great for entertaining and I hear it calling your name. Please give me a call to see this home. Will not last long on the market. www.pattimace.com, email pattimace@sbcglobal.net.

Hello again,  Last time I blogged about Eco-friendly homes.  This time I would like to touch base on the types of “Green-House” products and its’ value.  One major contributions to homeowners is the reduction in the country’s energy usuage and helping to improve the environment. For instance, adding a more efficient, green heating and cooling system will help lower utility cost which you can easily expect the system to pay for itself over a few years. These heating/cooling systems average an extra $2000 over normal systems but save you the home owner an average of $500.00 per year. 

Another item to consider for your “green house” would be Bamboo flooring which is a renewable plant and is not killed during harvesting.  Bamboo unlike Wood is a harder more durable and longer lasting product.

When considering going green the homeowner needs to keep in mind that when they place their Eco-friendly home on the market a new buyer may not consider these amenities a value thus not pay for these extras.

As the world shifts toward different eco-friendly amenities it will also help to establish a value for these products. Are these products considered “Value in use” or Value in Exchange”?  Basically does it make a contribution to the market?

 For Appraisers who estimate a homes Value in Exchange only this is based on what consumers are willing to pay for a certain amenity.

For Lenders under the current system accepting Green Homes can be of deep concerns.  Most lenders make money when the loan is put together and then they bundle them up to sell.  Green homes are not widely used yet therefore they are not in conformity with other standard type of home loans.

In time these Green homes will become more familiar to consumers and become more acceptable by builders, lenders, and appraisers. 

Talk to you soon and let me know your thoughts at www.pattimace.com.

Patti

 p.s…another product to look into is Photovoltaic solar electric systems.

How knowledgable are you when it comes to your home and the environment?  Should you decide to build a home you may find that your builder is among many that are now using eco-friendly products in the home building process. Building green can be costly, but home buyers are willing to spend this knowing that they are helping to save the environment along with the anticipation to recover some of these expenses through savings on energy and water bills.

If asked, most people want to go green, but how far are they willing to go?. There has to be a compromise somewhere between what’s ‘over the edge’ green and what can get be placed in the housing market so that people can have a home that’s environmentally safe and attractive.

When people mention the word ‘credit score’ the subject often brings on fear and anxiety, and for good reason. With the exception of recognizing that the best score wins, the average home buyer knows very little about the whole credit scoring process. Borrowers who have credit that is not so great (sub-prime) and who are eager to move into A-Paper territory often find themselves at a loss when trying to find ways to upgrade their credit history. Now more than ever it is possible for people to improve less-than-perfect credit scores and obtain a loan for the home they truly want.

The first step in the process is making sure that to acquire a current copy of their credit report. Congress recently amended the Fair Credit Reporting Act so that consumers may now receive one free credit report annually. There are three major credit bureaus: Equifax, Experian, and Transunion. Since entries can vary across bureaus try to request a free report from each of the three companies. (www.annualcreditreport.com)

It’s also important to know just what a good credit score is. Most A-Paper scores generally begin around 680. Don’t despair if it comes up shy, there is always room for improvement. Increasing your score just 5 points can save a significant amount of money. For example, if your score is 698 and you increase it to 703, then you could save yourself thousands of dollars over time as a result of a slight improvement to your loan’s interest rate.

According to the various affiliates, while credit repair is necessary for some, it’s not the only way to increase your credit score. Even if you have stellar credit, you can enhance your score through these steps:

• Evenly distribute credit card debt to change the ratio of debt to available credit. Let’s say you have a credit score of 665. If you have debt on only one card, and four additional credit cards with zero balances, evenly distributing the debt of the first card could move you closer, and possibly into, that ideal bracket.
• Keep your existing accounts open and active. The average consumer is usually anxious to close credit card accounts that have zero balances, but doing this can cause them to lose the benefits of a long-term credit history and increase their ratio of debt-to-available credit.
• Keep credit inquiries to a minimum. Each inquiry into your credit history can impact your score anywhere from 2-50 points. When it comes to mortgage and auto loans, even though you’re only looking for one loan, multiple lenders may request your credit report. To compensate for this, the score counts multiple auto or mortgage inquiries in any 14-day period as just one inquiry, so try and stay within that time frame.

Remember, credit scores don’t change over night. Improving them requires time and diligent effort, so it’s a good idea to get the ball rolling at least three to six months prior to submitting an application for home financing.

FHA and Down Payment Assistance Update :

The California Federal Judge has ruled in favor of the Down Payment Assistance Programs. This is definitely Great news especiallay since Hud has been trying to have the Down Payment Assistance programs ruled against by the Federal Judge, however, the Judge has ruled against Hud and for the Down Payment Assistance programs. Hud has now been stopped from ruling against the DPA’s permanently, Safe at last!.

Another issue that is good for buyers and was approved is the FHA Loan amount has now increased to $271,050.00 for Harris and surrounding counties. This will give buyers more options when deciding on which loan option to take FHA, VA, or Conventional.

For Sellers

Selling your home shouldn’t be a stressful ordeal. Making the smart move of choosing a REALTOR® is your first step to ensuring that your investment in your home pays off. My services and experience allow you to focus on your move while I manage your home sale from our initial consultation to the closing deal, and beyond. I pride myself on repeat business and hope you’ll come to understand why.

As Your Agent, I Will:

* Complete a comparative market analysis that will compare your home’s value to that of your neighbors.
* Compile a comprehensive plan detailing all the efforts I will employ to sell your home, including Internet and local media.
* Present your home to as many qualified buyers as possible getting your home maximum exposure.
* Help you stage your home and generate curb appeal to ensure you get the highest price.
* Assist with obtaining offers and help you in negotiating the best deal as smoothly as possible.
* Help you find your next home and answer all of your questions about the local market area, including schools, neighborhoods, the local economy, and more.

Recent Home Sales

What are homes selling for on your street? Feel free to contact me to find out what neighborhood homes are selling for, free of charge, or to receive a more detailed analysis of the value of your home.

Getting the Highest Price for Your Home

Curb appeal is key and could make a difference whether people stop and take a flyer, or drive right by. Here are a few tips to increase the curb appeal of your home. Staging your home is important. Many buyers will stay in your home longer if it’s staged appropriately. I have compiled some ideas to present your home in the most effective manner.

Closing Costs to Expect:

* Title insurance fees depend on the sales price of the home.
* Broker’s commission is a full-service fee and will cost anywhere between 5% to 7%.
* Local property transfer tax, country transfer tax, state transfer tax, and state capital gains tax are the charges that you’ll pay for the privilege of selling your home. Credit to the buyer of unpaid real estate taxes for the prior or current year are variable and depend on when you close and when your taxes are due.
* FHA fees and costs are all fees are now negotiable between an FHA buyer and seller.
* Home inspections fees are in some circumstances paid for by the seller and include pest, radon and other inspections.
* Miscellaneous fees can accrue from correcting problems noticed during the home inspection.

Find out how much your closing costs could be. contact me.