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.

My First Home

This is a great time to buy a home if you are in the market. The Housing market is down, interest rates are at an all time low, and you might just be able to afford that dream house you’ve been wanting for so long; but before you jump in, there are resources that are available to you that you might want to seek out.

The US Department of Housing and Urban Development (HUD) website at www.hud.gov have a wide array of topics pertinent to buying a home and will answer many of the common questions new home buyers have.

They go through the steps to be taken on making such a large commitment.

Here are some of the points they cover:

a) How much can you afford
b) House shopping
c) Home buying programs
d) Your rights
e) Shopping for a loan
f) Home inspection
g) Making an offer
h) Homeowners insurance
i) Signing papers

Remember you can't have too much information to assist you in making an informed decision. Happy shopping.

New Year's Resolution

So here we are at the end of 2009, staring into the eyes of 2010 and wondering yet again what happened, how did time go by so quickly….. still so many plans yet undone. If you are one of the many that fell short on your resolution to purchase a home in 2009, there’s still a chance to make up and take advantage of the Homebuyer’s Credit which was extended and expanded in November 2009 to April 2010.

What is a Homebuyer’s Credit? Well, it is a tax incentive given by the government to individuals or families purchasing their principal home, provided the purchase occurred in 2008, 2009 and now into 2010.

In order to be eligible, Buyers must enter into a binding contract to purchase a principal residence, not a rental or a vacation home, no later than April 2010 and must close on the purchase before July 1, 2010. The credit is in the amount of up to $8,000.00. As always there are additional eligibility requirements which are available from your Real Estate professional or visit: www.irs.gov for further details.