Posts Tagged ‘credit history’

Buying a home is one of the most exciting times in a person’s life. Not only is it a huge financial investment but it can also turn out to be one of the best assets later in life. When buying a home, it is viewed as a long-term decision it typically tends to pay off and be a smart investment. The proper way to go about making this type of monumental decision is to define your goals and how you plan on achieving them. This, of course, relates to all parts of life not just buying a home.

Setting Goals

As you examine your goal on buying a home there are several things that need to be taken into consideration. The most obvious is how much home you can afford. This is a very important question because you may be paying on your home for the next 30 years. You don’t want to be strapped month-after-month just trying to make your mortgage payment or worse, losing your home because you get behind on your mortgage payments.

The length of time you plan on owning your home should also be evaluated as you develop your goal to buy a home. You may be buying your very first starter home or planning on building your dream home. It is important to know because it will affect many of your decisions later down the road.

Pre-Approved for a Home Loan

Getting pre-approved for a home loan is a critical step in the home buying process. It tells real estate agents and home sellers that you are serious about buying and know what you can and cannot obtain. Nobody likes to have his or her time wasted or works for free so be courteous and prepared when you start the home buying process. Getting pre-approved for a home loan accomplishes several critical items. First off, you find out what a bank is willing to lend you and secondly, you can find out if there are any problems areas that need to be fixed within your credit history.

Down Payment

There are several types of programs available for first-time homebuyers to get into a home without having to save 20% of the purchase price as a down payment. However, many lending institutions like to see at least 5% saved for a down payment. There are advantages to being able to put 20% down on your new home purchase. Maybe the most important, you won’t have to borrow as much money and save in the long run. Also, most lending institutions require private mortgage insurance if the 20% is not met. This just adds cost to your overall home loan and increases your monthly mortgage payment. Plan on saving as much money as you can before buying. Put together a monthly budget that allows you to save, save, save.

Schools, Neighborhoods, and Time

Price is usually the motivating factor when buying a home and often times dictates the neighborhood you live in. In all honesty, this should not be the case unless it fits with your long-term goals.

If you have children you may want to check out the schools in several neighborhoods to find one that will suit your children best, ones that have easy access, and transportation.

If you spend a lot of time at work, which most of us do, you may want to drive the commute during the rush hours to see what you will be dealing with. This goes for any other important places that you will be frequenting. The key is to determine if you can live with the time it takes and possibly the lack of convenience of getting to your destination. Many times this most likely is not an issue but don’t you want to know that you will be sending an hour and a half each day on the freeway?

Must Haves

When buying a home we all have our wish list. On this list we have things that we must have and things that would be nice to have. This list comes in handy when the cost of having everything on the list outweighs what you can afford. Typically, the more things you require the higher the price of the home. Know what you can do without in order to control those costs.

Tips for Buying a Home

• Shop and compare home loan products
• Know your needs and wants in a home
• Take your time – don’t rush
• Be persistent and check the market daily
• Don’t make hasty decisions
• Don’t spend more than you can afford
• Get a home inspection

Boise Real Estate is a fast growing, quickly changing environment. BoiseRealEstateInfo.net provides resources, statistics, and information for individuals and families looking at moving to Boise Idaho.

Author: Jason Deines
Article Source: EzineArticles.com
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While it may be seen as a bad career move for a real estate agent to publish an article advising people not to buy a home, there are a few times when the decision to make a real estate investment should be put on hold.

If you have recently changed jobs, you may have a hard time getting financing for a new home. Rather than wasting valuable time looking for a home, a smarter option at that time might be to continue saving for a down payment while maintaining a regular work schedule. You could also work at building your good credit history by purchasing things on credit and promptly paying them off. Once your current employment history and monthly income has been consistent for at least a year, and you have a healthy down payment saved up, then contact an agent to be shown homes for sale in the area you are wanting to buy in.

Similarly, if you suspect you will need to change jobs soon it is best not to purchase a home. The process of buying a home is expensive even if you don’t consider the actual cost of the home. Imagine being laid off or transferred shortly after buying a home. If you are forced to make a quick sale of a home you just purchased, chances are you could lose thousands of dollars. Waiting until there is stability in your life is the best idea.

Let’s say you got a promotion, or recently hit your savings goal, and thought it would be a great time to buy a car. You need to decide what you’d rather buy, a house or a vehicle, because chances are good you will be unable to do both. When getting pre-qualified for a loan, the assessor looks not only at your credit history and income stability, but also at your debts. If you have a couple-hundred dollar vehicle payment every month, it will probably compromise your ability to be approved for a loan. A lender needs to see your income as far higher than your debts to know you will not default on their loan to you. While you may be willing to live frugally to make up for having both a mortgage and car payment, the bank isn’t going to see it that way. So if you are wanting to get into the real estate market in the near future, either purchase a much older and cheaper vehicle, or do with what you have for the time being. If you have just gotten into a vehicle loan, focus on paying it back as soon as possible before you try to enter the real estate market.

If you are new to an area, it might be a good idea to explore it a little before jumping into purchasing a home there. It can take time for the character details of different neighborhoods to reveal themselves, and buying in the “wrong neighborhood” is a decision that could affect you for life. Renting for at least a few months can seem like a waste of money, but in fact it gives you valuable time to make a wise decision about where you want to live and invest.

Of course no one likes to think about things like divorce or separation, but the reality is that some couples think buying a home together may save a failing marriage. Just like deciding to have a baby under similar circumstances, buying a home with a partner you aren’t completely stable with is not a good idea. Separations are never easy, but adding financial negotiations to divide up your assets only makes it more stressful.

Contact Virginia Wherland at Associates Realty for more information about buying a home in Minneapolis, Minnesota. With over 30 years experience in the Minneapolis Real Estate market, Virginia and the team at Associates Realty are known for their commitment to exceptional customer service and satisfaction.

Author: Virginia Wherland
Article Source: EzineArticles.com
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There is one simple reason that people sell real estate notes, and that is to raise cash quickly. To achieve the desired result, however, you must make sure you’ve done your research: that you are selling to a reputable buyer or group of real estate note buyers, and that the buyer of the property you are financing has a reputable credit history.

A real estate note is the document created when financing the sale of a home or other (likely investment) property. Different categories of real estate notes include mortgage notes, land real estate contracts, and contracts-for-sale. Holding a real estate note means that payments are coming into you, but often, depending on the financing, those payments are small and trickle in, rather than providing a quick influx of cash. This is the reasoning behind selling to note buyers.

There are a couple of options when selling real estate notes. When choosing between these options, take into account your goal in selling the note. If you only need a smaller, quick influx of cash, it might be in your best interest to only sell a portion of the note. If you need something more substantial, you will likely want to sell the entire note. Whichever happens, the payments made by the buyer are the same-they will just make the payments to the new note holder instead of to you.

Selling only a portion of the note means selling “x-amount” of payments to the real estate note buyer. Many buyers will do this, but others will not, so be up front with how much of the note you would like to sell at the beginning.

While you will likely not get the true face value of your real estate note if choosing to sell it, there are other things to keep in mind when selling that will make sure you get as much value as you can out of the note. First, and most important, is that when selling, you should pay no up front fees to buyers. Most reputable buyers will check your buyer’s credit and give you a quote on the note without charging you any sort of “processing” fee.

Make sure that the note buyer checks the property buyer’s credit up front before quoting you on a price for the real estate note. A sign of an unethical buyer is quoting one price initially, then quoting a lower one later using the property buyer’s credit score as an excuse. This is a simple bait and switch and a strong sign that you should not deal with these real estate note buyers.

Get several quotes before selling. This can help to ensure you get the best value for your note. If possible, it is best to wait until at least six payments have been made on your note before attempting to sell; this is because buyers will be more likely to pay a higher price for a note that is considered “seasoned,” knowing that the property buyer is reliable in making payments.

Chances are, you will get somewhere between 20 and 30 percent less than the remaining value of payments due on the note. This is fairly standard, and though the discount seems steep, it is probably the best value you will get on the note. If you have not received an offer that is satisfactory, you can hold out until your note is more “seasoned.”

Selling notes that you hold can be a good way to get a quick influx of cash. Just make sure that you’re careful and don’t rush into it, and it can be beneficial for you and for the note buyer.

Stephen V. Richards is a real estate expert specializing in advising sellers and brokers on the best times to sell real estate notes to real estate note buyers. He has weathered the mortgage storm and advises a number of successful clients on managing their real estate contracts.

Author: Stephen V. Richards
Article Source: EzineArticles.com
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Are you ready to buy a house now? Do you also know how to arrange finance for the home buying procedure? These questions are top answered untimely on in the course. On the other hand, buying your first home could be exciting and to some extent scary process. But a tiny research would go a long way towards obtaining you in the door with a smallest amount of stress involved. So if you are a newbie to the procedure of buying a home and also require assistance getting off the base, then read the following steps involved.

Locate Established Real Estate Agent

Locating the established real estate agent could real difference in your home buy process, particularly if you’re purchasing you dream home for the initial time. An excellent real estate agent could guide you through the complete home buying procedure and could also assist you shun expensive mistakes. So do contact any reputed firm to locate a great real estate agent.

Checklists Tool

A checklist is a helpful tool when you are buying a new home – in particular when it is your primary time going all through the course. A good quality checklist would certainly keep you on target and assist you retain information on what features to search for when hunting for a house.

Mortgage Loans Kinds

When you want to buy a home fast, you would have come across lot of information about the different kinds of mortgage loans. It could be perplexing when you are not really informed. You would also want an expert house inspection before you actually purchase, and your lender generally requires an assessment. So do make certain you’re well knowledgeable about the different kinds of mortgage loans. You’ll find plenty of information on the various kinds of mortgage loans online.

Credit Matters

Credit is a significant title when you planning to buy a home. You need to be sure that mortgage lenders would for sure review your credit in every possible corner. So it pays to have a watch your own credit history first. You must know how to get your credit report and verify it for precision. You must also know the different ways you could actually improve your credit before buying a home.

Process of Home buying

It pays to be knowledgeable about the procedure of buying a new home – principally if it’s your first home buying. The procedure could also be devastating to a first-time purchaser, but you could stop this by just understanding the steps that are involved. Try learning the steps of buying a new home in feature, from house locating to settlement.

Foreclosure land

Though it may not hold good for everyone, but yet buying foreclosure properties could be a method to get a house for less than actual market value. You can try locating such home or could put a request across to your real estate agent to find such home. We hope you find your dream home at affordable rate!

Samuel Johnson is an expert author for We buy houses, Sell home for cash. He written many articles in various topics. For more information about Construction Sell house, We buy house, We buy home cash. Visit our site We buy houses for cash.Contact him at reiiarts@gmail.com

Author: George Samuel Johnson
Article Source: EzineArticles.com
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Hello, I had bankruptcy and recently discharged on December 2008. Right now I don’t have any loans except for 1 credit card that I obtained to rebuild my credit. I’m only using 30% and paying it off every month. My monthly income is $1500 after tax, and I’m able to save $400-500 per month. There are 3 of us considering to buy a home, my mother, fiance’ and I. My mom also have a bad credit but no bankruptcy. My fiance’ has good credit, let say about 650-670 credit score. We are just looking for a small house price ranging from 100K to 150K. Right now we are paying rent for $ 800 per month on time without struggling. My mom started renting the same house 2 years ago and on December 2008, my fiance’ and I move with my mom to help her to pay rent. I just thought that if we can pay $800 per month, why not get a mortgage for $800. Is it possible for us to get a home now or I have to wait a year or more to re-establish my credit? By the way I had my credit card on Febuary ’09 and I have a student loan that will be paid off on April 09. The student loan was on repayment plan since January 09. So I guess that will help to rebuild my credit history from January 2009? Any suggestions will greatly appreciated.

Answer:
With your limited new credit it’s unlikely. Keep your credit straight, get new lines–car, credit cards, and in approximately 2 years you might quality for an FHA loan. I don’t agree with the poster below. I was discharged inJune 2006 and purchased/closed on a new home 8/08. 2 years after—I purchased a car in 2006 –so that I had a couple of years paying for it–and had a variety of credit lines. I did NOT have to put down 20% –3% with FHA. It can be done–just NOT right now and BTW my credit score was in the 660s-680′s NOT 700+ as listed below.

What was your experience with obtaining a loan, good/bad?

Answer:
I did. But it was on a second home. So getting a loan was not quite the same, as the restrictions are different. However, my advice to you is to pull your credit report first! You can get this for free at freecreditreport.com and see where you rank and if there are any mistakes, etc. you can clear them up within 60 days. There too, if you have any past dues reported, you might be able to haggle with the company who reported them into removing them, especially if you still do business with the creditors in question and have a good credit history with them, now. Do take a look! Amazingly, while I had ok credit, it wasn’t excellent. But just taking a look at my credit report, noticing several errors, and removing some things that were positive, but 10 years old already (too many accounts also count against you!) I was able to up my credit rating by 60 points in 30 days! And virtually the couple of negative things I had on there from way back when, totally went away! Equifax/Transunion/and the other one all deleted the info immediately! It helps to have the best credit possible when negotiating for mortgage terms. Wish I’d have checked my own credit report years ago!! Banks are still loaning money. But now, more than ever, both your current income and credit score are REALLY making a huge impact. Good luck and hope this helps!