Buying Your New Home
Improving Your FICO® Credit Score
December 4, 2009 by jsmith0820 · Leave a Comment
Your East Cobb Realtor would like to share this important information with YOU!
Improving your FICO® credit score
It’s important to note that raising your FICO credit score is a bit like losing weight: It takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time. See how much money you can save by just following these tips and raising your credit score.
Payment History Tips
- Pay your bills on time.
Delinquent payments and collections can have a major negative impact on your FICO score. - If you have missed payments, get current and stay current.
The longer you pay your bills on time, the better your credit score. - Be aware that paying off a collection account will not remove it from your credit report.
It will stay on your report for seven years. - If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.
This won’t improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
Amounts Owed Tips
- Keep balances low on credit cards and other “revolving credit”.
High outstanding debt can affect a credit score. - Pay off debt rather than moving it around.
The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score. - Don’t close unused credit cards as a short-term strategy to raise your score.
- Don’t open a number of new credit cards that you don’t need, just to increase your available credit.
This approach could backfire and actually lower your credit score.
Length of Credit History Tips
- If you have been managing credit for a short time, don’t open a lot of new accounts too rapidly.
New accounts will lower your average account age, which will have a larger effect on your score if you don’t have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.
New Credit Tips
- Do your rate shopping for a given loan within a focused period of time.
FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur. - Re-establish your credit history if you have had problems.
Opening new accounts responsibly and paying them off on time will raise your credit score in the long term. - Note that it’s OK to request and check your own credit report.
This won’t affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.
Types of Credit Use Tips
- Apply for and open new credit accounts only as needed.
Don’t open accounts just to have a better credit mix – it probably won’t raise your credit score. - Have credit cards – but manage them responsibly.
In general, having credit cards and installment loans (and paying timely payments) will raise your credit score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly. - Note that closing an account doesn’t make it go away.
A closed account will still show up on your credit report, and may be considered by the score.
Provided by Bank of America Senior Home Loan Consultants:
Kathy Vitali and Bragg Boyd
Call or Email me today for all of your Real Estate needs! Jodi Smith, East Cobb Realtor with Keller Williams Realty Consultants. Helping you find Homes in East Cobb, Homes in Marietta, Homes in Roswell and Homes in Alpharetta. CELL: 678-763-6025 or EMAIL: jodismith@kw.com
HOME WARRANTIES Can Help You, Too!
May 18, 2009 by jsmith0820 · 1 Comment
As it gets harder to sell homes in today’s market, many sellers and Real Estate Agents are turning to Home Warranties-using them as an added value for potential buyers. These plans give buyers some peace of mind, knowing they’ll be covered for any unexpected repairs to their new home. Plus, they help protect Realtors against claims from buyers wanting reimbursement for property defects that arise after closing.
A home is the single largest investment that most people will ever make, and the last thing a new homeowner wants to learn is that they are facing an expensive repair. And while an inspection may find many problems that could be covered b y a home warranty, it cannot account for latent issues that are beyond an inspector’s scope or occur down the road after the sale is complete. To help prevent post-closing glitches, more sellers are offering to include a home warranty in the sale of their homes to allow buyers to purchase with more confidence. In fact, real estate professionals are now purchasing warranties as a gift for buyers and sellers, while also helping protect themselves from future litigation.
To help reduce your risk, you should recommend that your clients purchase a home warranty for their property and provide them a list of reputable companies to choose from. Encourage them to resarch the copanies thoroughly and ask the right questions, including:
- Which components of thehome will be covered by the warranty, which component are not coverd, and what are the specific exclusions and limitations? Is additional coverage available for items like swimming pools or refrigerators?
- How mch is the annual cost of the home warranty plan?
- How much is the charge for a trade service call?
- What are the total dollar limits on the warranty, and what are the limits for individual items?
- How long has the company been in business, and is it licensed?
- Is the company’s consumer service department available for requests 24 hours a day, 365 days a year?
- Can the warranty be renewed?
- Will a licensed contractor be used to make the repair, and what is the turnaround time?
- What percentage of claims is paid?
- What is the company’s customer retention ratio?
Most importantly you should stress the importance of reviewing a policy carfully before accepting it, paying particular attention to what is and isn’t covered. Often, thee contrac come with loopholes that require proper maintenance or upgrades to current building codes before repairs will be covered. If your clients decline this valuable coverage, you should document this fact in writing and retain the waiver in your transaction file.
When homeowners require more than a handshake after making the most significant investment of their lives, give them a home warranty and arm them with the security they need to help fight problems and various covered systems and appliances.
(Source: Realtor Magazine)If you’re thinking about buying a home or selling your current one, Call Me Today: 678-763-6025 or Email Me: jodismith@kw.com! Let’s Get Started!!!
ATTENTION FIRST-TIME HOMEBUYERS: Claim Your $8,000 Tax Rebate Today!!
April 26, 2009 by Jodi Smith · Leave a Comment
ATTENTION FIRST-TIME HOMEBUYERS: Claim Your $8,000 Tax Rebate Today!!
It’s easy to claim this CASH, call 678-763-6025 or submit the form below for the details. Also did you know that if you hurry you can actually amend your 2008 tax return and get your $8,000 right away, instead of waiting till 2010. Today is the day to Buy your new home, deals are great, interest rates are great, timing is great, what more could you want? Call your Atlanta Realtor today at 678-763-6025!
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It’s a Great Time To Buy!
April 9, 2009 by Jodi Smith · Leave a Comment
Motivated sellers, builders offering deep discounts and incentives, historically low mortgage rates, plenty of inventory and fierce competition for qualified borrowers –it’s actually a great time to be buying a house. If your credit score is good, you’re in an even better position to negotiate the loan on the home of your dreams this spring.
Spring has always been a popular time to buy a new home. More people put their homes on the market when the weather is warm, and a wealth of inventory is available. With winter thawing into distant memory, home shoppers are ready for a fresh start in a new house. Buying a home in spring will help new homeowners ensure they move their families during the summer, and not at the beginning or in the middle of the school year.
With plenty of housing opportunities and low interest rates currently available, it pays to ensure you’re in a position of power when you go home shopping this spring. Here are some simple tips for ensuring you’re in the driver’s seat when buying a house:
Know Your Credit Score
You may not be able to control the economy, but your credit score is a financial reality you do have control over. The higher your score, the more likely you are to be able to negotiate lower interest rates when mortgage hunting.
Before you look at a single house, find out what your credit score is. Sites like FreeCreditReport.com give you access to your free credit report — which will show potential lenders your payment history and help them decide if you’re a good or even great credit risk. Through the Web site, you can also get your credit score from Experian, one of the three top credit bureaus lenders turn to when evaluating the credit-worthiness of potential borrowers.
The better your score, the better your chances of scoring a great loan, so take steps to improve your score, such as paying off credit cards quickly, paying bills on time and minimizing your use of revolving credit. Errors can occur and if you find some on your credit report, work directly with the credit bureaus to have them corrected.
Know the Playing Field
Once you’re confident you have a powerful credit score, research the market where you’re interested in buying. In addition to considering the quality of schools, proximity to work, entertainment and amenities a neighborhood has to offer; consider the number of foreclosures in an area and how much home values have dipped in the past year.
Is the neighborhood you’re interested in poised to regain value quickly when the real estate market rebounds? Recovery speed could be an important consideration if you plan to stay in the home only a few years. If you’re in the home for the long haul, you may be less concerned about how quickly home values in the neighborhood will improve.
This spring can be a great time to start fresh in a new home. To ensure you’re well-positioned to take advantage of the great housing deals, visit www.FreeCreditReport.com first to learn about your free credit report.
Contact me today at 678-763-6025 or fill out the form below and I will get back to you!
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