Tips To Raise Your Credit Score

TIPS TO RAISING YOUR CREDIT SCORE

We are coming into a new year and a new year bring new Dreams! To achieve those dreams you first need to have steps to achieve it. If that dream this year is purchasing a new home? Then setting goals early on can help you achieve your dream, even if you are not planning on hitting the mark until later in the new year. 

It is important to remember when it comes to your credit score it can be said it is often like losing weight; it takes time and there is no easy quick fix to correct it. It is always best to manage your credit score responsibly over time. 

Buying a new home is an exciting time. It can also be stressful if you are unsure about your credit or know that your credit is not as high as you’d like it to be. Your credit score is one of the biggest factors in how much of a home loan you can qualify for and the interest rate you’ll pay. The good news is there are easy ways to increase your credit score.

 By following a few tips, you can make sure your report accurately reflects your use of credit and create a plan to improve your scores if necessary.

• Check for Errors - Errors on a credit report is very common. Make sure that everything is current and accurate. A report from the Federal Trade Commission stated in 2012 that one in five consumers had at least one error on one of their credit reports. You are entitled to one free credit report a year, start off the new year getting the report and checking over it to make sure there isn't anything that is a mistake. 

 • Pay Down Credit Card Debt – One of the easiest ways to boost your score is to lower your credit card balances. Aim to have no more than 50% of available credit in use.

 • Remove Negative Accounts – If you have old collections or bad debt, negotiate with the creditor to pay some/all of the debt in exchange for removing the record. Remember though that by paying off a collection debt doesn't mean it will automatically be taken off your credit score. It can remain on your report for up to 7 years. 

 • Keep Old Accounts Open – About 15% of your score has to do with how long you’ve had credit accounts. Do not close any accounts trying to find a quick fix way to correct debt. Doing so may backfire and hurt your credit score. 


It is easy to get started but as our busy lives begin it can easily be put in the back of our minds when life and bills begin to come in. There are some helpful tools available to help you stay on task with your New Years Goal! 

By setting up payment reminders - Making your payment on time is crucial step in maintaining the perfect correct history. Often banks can set up alerts for you to remind you of upcoming payment due dates. You could set up auto pay monthly with your payments being automatically taken out of your budget each month at a set time. 

With these steps it can be a starting point to achieve the credit score you are wanting to get the best rate and mortgage payment on your new home. 

Create a budget plan and stick to it. With out a plan in place achieving a goal can get hard. Don't give up! Like I mentioned earlier it takes time and anything worth while can. So create a plan this new year and picture yourself achieving home ownership.
 Contact me or your local mortgage lender to help you achieve this goal in 2019. We are here to help and give you the right tools to make purchasing a home easy. 

Happy New Year! 

What Are Contingencies On A Contract?

What are Contingencies on a Contract? 

Contingencies are commonplace in contracts of all kinds. A contingency allows for one party or another to legally back out of a contract in the event of some specific condition occurring. They are protection against the unknown. In real estate, there can be contingencies inserted for either buyer or seller or both. These take many different forms and until removed in writing, either party may change their minds based on the result of the contingent event or issue. While the seller contingencies are less common, there are a few that you can use to your advantage, should you need them. Keep Reading to find out what they are and how you can use them to protect your interests.

Some examples of home buyer contingencies:

 • Home inspections – condition of the home there are various inspection-related contingencies with specified due dates and requirements. These allow the buyer to demand new terms or repairs should the inspection uncover certain issues with the property – and to walk away from the deal if they aren't met. The seller can then either accept or reject those terms; rejecting them would also terminate the contract.

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 • Specialty inspections – mold, geological, roof inspections

• Code Violations – an investigation into improvements made without permits

• Lender appraisal – ensures the offered price is not too high. Should the appraisal come in lower, another negotiation might become necessary to see if the seller will lower the price to make up the difference. If not, this circumstance could void the contract

• Sale of current home – allows the buyer to back out if they cannot sell their current home in specific time frame. Sometimes the buyer is only able to close if he can get funds from the sale of his current home, which is usually under contract at the time he enters into the deal for the new home. So he makes the new deal contingent upon successful completion of his old place. A seller accepting this clause may depend on how confident she is of receiving other offers for her property.

• Final loan approval – loan is ready for signature and close

• HOA CC&Rs – review of documents to ensure rules and regulations do not infringe on enjoyment of property

• Insurability – home owner’s insurance available at a reasonable rate Home sellers can also have contingencies included as well, such as one which states the sale is contingent on finding a replacement home. Contingencies are a fact of contract law. In real estate, they ensure that the offer is concluded as expected.

It is important to know your personal interest in such a large financial transaction. The more you ask the better you will become with the process. It is important to have someone on your side looking out for your interests. Contact your Mortgage Lender or Me to find out more. 

Down Payment-How Much Will You Need?

DOWN PAYMENT-HOW MUCH WILL YOU NEED?

    Gone are the days when anyone could buy a home with just a promise and signature. No documentation loans allowed virtually anyone to buy a house with no money down with just a simple credit check. After the mortgage meltdown, this all changed. Lenders tightened guidelines and down payments were back. 

But how much do you actually need? Must you always find 20% down? The answer might surprise you; there are many ways to buy a home with less than 20% down payment.

  

 0% Down – There are still two loan programs which allow one to buy a home for no down payment; the VA loan and the USDA loan.

 -The VA loan requires the borrower to be a qualified service person or veteran and the USDA loan is for certain areas under the Department of Agriculture.  

 5% Down – Conventional loans with loan limits can allow one to buy a home with as little as 5% down. These loans do have PMI (Private mortgage insurance) which can be eliminated when the loan amount falls below the 20% threshold.  

3 ½ % Down – FHA offers first time home buyers a good home loan for only 3.5% down payment. Again these loans have loan limits and PMI but offer a faster entry into the housing market.  

It's important to know that if you are buying a home with less money down, know that your mortgage payment will be higher than if you put more money down. The three drivers that inflate a mortgage payment are:

1.Interest Rate

2.Larger Loan Size

3.Private Mortgage Insurance (PMI)

Buying a home doesn’t always mean 20% loan. Although many lenders like 20% down payments but most first-time buyers put down much less. Just keep your eye on the fees. The down payment is not the only upfront money you have to deal with. There are loan closing costs and earnest money to consider as well. (we will get into more detail about earnest money in next weeks blog post)

It is tempting to go with the lowest all-in upfront charges when trying to buy a home. But the key to building net worth is to buy smart, especially when it comes to such a large purchase as a house. 

Lenders are required to disclose all fees and it's always a good idea to shop around with multiple mortgage providers in your area to get your best deal. Plus, the more you explore your options, the more you'll learn about the process. 

 If you’re considering buying a new home, talk to myself or your lender about your options.

Fireplace Design Trends

Fireplace Design Trends

 The long evenings of the winter months invites families to stay home and enjoy the warmth of their own home. Naturally, attention turns to the fireplace as both providing extra heat and as the focal point of the room. New technology and environmentally friendly design has brought contemporary updates that are sleek, fashionable and playful.

  Finishing – Fireplace finishes have changed. New products such as the Cool Wall Series open a wide variety of design options by allowing a cool surface as a backdrop for finishes. 


 Wood – Wood burning fireplaces are back in style. Decorative spaces for wood storage are adding architectural interest.

  Larger Openings – One of the leading trends in fireplace design is enlarging the viewing window of the fireplace. A simple retrofit of an existing fireplace can make a huge difference in the look of any room. 

 Corner Fireplaces – This popular feature of the 1990's is back with modern updates. Two or three sided fireplaces with sleek styling and elegant accents, such as wood or metal, are providing a centerpiece for rooms. 

 Fireplace Walls – Linear fireplaces that stretch the length of the wall is one trend showing up in model homes across the country. Monotone colors and clean lines finish this modern trend.