How Important is Your Credit Score

We live in a culture where credit is key, as the need for good credit impacts on countless areas of our lives and although we think about credit, we do not always pay keen enough attention to it, and so we end up paying dearly for it later.

If you are thinking about acquiring a home, or making any major purchase for that matter, credit is key. Know your credit score; know what's on your credit file. State and Federal laws allow you to request your credit report once a year for FREE from the "big three" credit reporting agencies - Equifax, TransUnion and Experian. Do not wait until you are ready to make that home purchase; sitting in front of your mortgage broker to get pre-qualified only to hear that your scores are so low, you can't even buy a bicycle.

Credit is key, pay attention to your credit and your credit history; otherwise you could pay a much higher price later.

As an example, new FHA guidelines require a new borrower with a 580 credit score to make only 3.5% down payment on their home purchase, on the other hand, a score below 580 will require down payment of at least 10%. Wouldn't you rather pay the 3.5%?

So paying attention and taking care of that credit definitely makes good sense, after all in this culture, without doubt credit is power.

Home Rehabilitation Loan

Homeowners who bought a single-family home from HUD can finance up to an additional $35,000 into their mortgage loan by taking advantage of what is called a “Streamlined 203(k) Limited Repair Program.”

Under this program, you are able to get a loan for needed repairs identified by a FHA appraiser or a home inspector, as long as the repairs are not complicated and do not require plans or the skills of architects, engineers, consultants, etc.

Typical improvements that are covered are:

• Repair and or replacement of roofs, gutters and downspouts.
• Repair and or replacement/upgrade of existing HVAC systems.
• Repair and or replacement/upgrade of plumbing and electrical systems.
• Repair and or replacement of flooring.
• Minor remodeling, such as kitchens, which does not involve structural repairs.
• Painting, both exterior and interior.
• Weatherization, including storm windows and doors, insulation, weather stripping, etc.
• Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens.
• Accessibility improvements for persons with disabilities.
• Lead-based paint stabilization or abatement of lead-based paint hazards.

For additional information and how to benefit, please contact your Realtor or visit the US Department of Housing and Urban Development’s website.

Source: www.hud.gov

My Offer is Accepted Yeah!!!

So here I am, very excited that I found the house of my dreams. Contract executed and submitted to the bank (short sale of course) I waited and waited and waited, it's now 4 months later, I got the call from my Realtor, "your offer has been accepted."

Now after waiting for so long I was hoping to hear closing will be in 30-45 days, but not so. The offer was made with a closing date of 3 months down the road.

What is going on? Are the banks really trying to get these homes off their books?

You might want to read this Article.

The Market is down but can I afford this House?

It’s the New Year and everyone’s pumped up and ready to fulfill their resolutions. The housing market is down and the words “tax credit” looms foremost in the minds of hopeful buyers; yet the most important question remains to be answered. Can I afford to make such a purchase?

Well, effective January 1, 2010, the new Real Estate Settlement Procedures Act (RESPA) rule goes into effect and should help to clarify some of the questions buyers may have regarding affordability. The Good Faith Estimate or the GFE as it’s commonly called, allows the lender to outline the fees and settlement charges associated with obtaining a mortgage, so that a buyer shopping for a loan can decide which is best, as well as the affordability. The form will be standardized so no matter which lender provides it, the form should look exactly the same thereby allowing for easier cost comparisons.

The GFE should give loan terms and settlement charges, showing what charges can change and those that will remain unchanged. This is important because often first time borrowers in particular, tend not to think of or be aware of other associated expenses other than the purchase price.

It is hoped the new rule will have the desired effect of helping home buyers make more informed decisions.