Low Interest Rates

Even though the economy seems to be rugged, it is a great time to puchase a home. The interest are at all time lows for first time home buyers, to second homes, or even for investing. Lets look today!

Home Inspections / Hiring a Qualified Home Inspector

Once your offer has been accepted on the home you would like to purchase one of the things that is suggested is for you to get a home inspection. What is a home inspection? Well, one of the best ways to understand the property’s condition is to hire a qualified home inspector. It is recommended you contact and interview at least two to three different home inspectors in order to find one that will meet your individual needs.  Inspectors are familiar with the building codes and will help look for flaws in the home your are purchasing.

The following are some important questions to ask before making your final selection;

  1. How long have you been in the home inspection business?
  2. What are your qualifications?
  3. Are you a member of any inspection organization or association?
  4. How many resale home inspections have you completed?
  5. If I hired you today, when would you be available to complete my inspection?
  6. What will the inspection cover?
  7. How long is your average inspection and how long after it’s completed will I receive my report?
  8. How much will the inspection cost?
  9. May I attend my inspection? May my real estate agent also attend?
  10. Do you provide estimates for repairs and improvements?
  11. Can I contact you post-inspection for any questions?

These are just a few questions and you may have more but hopefully this will help you when it is your time to need a home inspection.

Talk to you soon, Patti

Myth or Fact? Home Expenses

Question – Can I write off all expenses on my home?

This is a MYTH: Home addistion, insurance cost, renovations, condo/HOA fees are not tax deductible like your property taxes and mortgage interest can be.  Remember to always check with a tax advisor or a financial planner when determining what home related issues are deductible.

see you again soon,

patti -pattimace@pattimace.com (-pattimace null@null pattimace NULL.com) or pattimace@sbcglobal.net (pattimace null@null sbcglobal NULL.net)

www.pattimace.com (http://www NULL.pattimace NULL.com)

What is the process to purchase a Home

Now that you understand where credit scores are derived from the next step in your home purchase is to go to your bank or a mortgage broker and get a pre-approval letter.  This pre-qualification will let you know based on your income and debt ratio what price range your home purchase needs to be at/under.

Realtors do not want to disappoint their clients in anyways so as a realtor when a client comes in the first step is the pre-qualification with a mortgage broker or bank.  This prevents the realtor from showing clients homes that are not within their ratio and ultimately making it more difficult to find them a home that fits their personality.

The next step in your home purchase is knowing where you want to live. Is there a subdivision or rural area that particularly interest you?  If you are new to the area then this could be a difficult decision but ask around your job or friends to see what opinions they have. 

Now that you have the pre-approval and know what area you would like to live in then the next step is to get with your realtor and/or find a realtor if you do not have one yet.  This step is easy if you live in Texas near the Woodlands, Houston, Spring, or surrounding areas you can contact me at pattimace@sbcglobal.net (pattimace null@null sbcglobal NULL.net), if not then I would be glad to assist you in finding someone in your area, or speak with a family member, or friend.

Realtors and clients then work together to find out what type of home you like, traditional, colonial, modern. Then how many bedrooms, bathrooms, and other areas you desire such as a study, or a gameroom. Do you want an older home in a mature area with grown trees or do you like the feel of a new home in an up and coming area.

Once this is all figured out off we will go to look at the inside of the homes to see how well they have been maintained and if the home fulfills your desires.  Most clients like to see 8-10 homes or more before making a decision and will usually narrow down to two and go and look at them again to make their final decision.

See you back here soon to check out my next blog on ….Now that the home has been chosen what is the next step……..

 www.pattimace.com (http://www NULL.pattimace NULL.com)  …. pattimace@sbclgoblal.net (pattimace null@null sbclgoblal NULL.net)

 

 

Interest Rates – How they are derived from your Credit Score

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 (http://www NULL.equifax NULL.com/home/), Experian (http://www NULL.experiangroup NULL.com/)TransUnion (http://www NULL.transunion NULL.com/) .

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 (pattimace null@null sbcglobal NULL.net).  Hope to see you subscribe to my blog at www.pattimace.com (http://www NULL.pattimace NULL.com).

Chat again soon,

Patti

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