Shirley's San Antonio Real Estate Blog: November 2008

To say your credit history & score is HUGE these days may be a borderline understatement.  For purposes of my experience, I'll concentrate on how credit relates to getting a mortgage to buy a home or trying to refinance the one you currently own.

Talking about credit is about as much fun as chewing broken glass while watching Yanni's latest video on VH1, at least to most.  Even for the most severe masochists or staunchest Yanni advocators, it's probably not a subject full of brim excitement.

So, I'll try to make this concise and simple.  Educating yourself and working with professionals who can guide you along the way, to make sure your credit is worthy of a three course meal at the White House, is crucial.  I'm not just talking about those whose credit is in the crapper.  I'm also writing to folks whose credit may be moderate or maybe you've never made a late payment in your life but your score is low.  The Credit Reporting Industry is wagging the dog, forget about whining... work and know the system.

Here are a few tips & quips:

* Get a copy of your Credit Report.  It may not provide your actual credit score, but at least you can verify the accuracy of the information on your report.  I've included information below that you can utilize to do this.  Quick thing here, credit modules differ within industries.  For example, the credit report a mortgage company pulls may differ from that of the institution giving you a car loan or credit card.  Mortgage folks weigh heavy on student loans and car loans and even heavier on your Mortgage History, provided you have one. 

* Communication is key with your credit.  If you are experiencing rough financial times, call them before they WILL call you.  Let your creditors know what is going on.  It probably won't stop them from reporting you late to the credit agencies, but it probably will provide you one less of a headache.  That's what life's all about... avoiding headaches:-)

* The only thing that may be just as bad or even worse than credit overload, is no credit at all.  Establish yourself in the creditor's eyes.  If you have no credit, get secured credit that reports to all three credit reporting agencies.  This may mean making a deposit at your bank and taking out a loan against it or pre-paying on a credit card.  If you are doing the latter, use that credit card and pay it off it off regularly.

...if you have a bankruptcy or foreclosure in your past, establishing 12-24 months worth of a good credit is absolutely crucial!

* Oh, those credit cards.  I'll put it bluntly, the bigger the differential between what your current balance is and what your available balance is, the better for your Credit Score.  Don't be afraid to call your credit card company and ask them to raise your available balance.  Don't use it, just have it there to improve your credit standing and score.

...sidenote on credit cards.  Don't be afraid to call your current credit holders and ask them to lower your interest rate.  If the first person you talk to can't or won't, ask to speak with a manager.  If unsuccessful in that endeavor, call back at a later date.  Be persistent & professional in your efforts.  Lowering your rate even the slightest bit can save you some serious money now and down the road.

* Pay your bills on time.  Yeah, I know, this is a no-brainer to most.  Yet, it doesn't report late to the credit bureaus until you fall 30 days late.  Try to make sure you don't get 30 days late on anything.  Sure, you may incur late fees if you are even a day behind on some credit, though Mortgage Companies typically give you a 15-day grace period before you incur any late fees.  From my experience, make sure your mortgage/rent is paid on time first, then student & car loans, then credit cards.  If you are a renter...

...pay your rent by check and keep copies of your canceled checks.  Twelve months worth will do (pay month by month, pre-paid bulk payments won't do you any favors...create a consistent history).  This establishes a housing history.  While it doesn't do anything positive for your credit, it does wonders when you apply to buy a home.

* Settle delinquent accounts for pennies on the dollar.  If you owe the International Bank of Jason Sardi a cool $5,000.00 and your account is charged off, you should call to arrange a settlement once it goes to collections.  Often times, you can come to an agreement for a lump sum of $2,500.00 or less and you may even be able to work out a payment plan.  Either case, make sure you pay that account satisfactory and get the paperwork of the agreement and the final pay-off to prove it.  Paying off delinquent accounts will probably drop your score at first, but will do wonders for your score down the road (provided you keep paying everything else on time).

* Avoid 'Hard' Inquiries.  Your current creditors may check your credit, but that is considered a 'Soft' inquiry and shouldn't affect your credit score.  Yet, if you are applying for credit out the behind, those inquiries can adversely affect your score.  It raises the red flag that you may be on your way to becoming credit dependent.  Psychologically speaking, never give them that drift, make them know that their livelihood depends on you... not the other way around.

* Credit Restoration Companies may be able to help but avoid anything that says, "Consumer Credit Counseling."  CCS is considered a form of bankruptcy in many lenders eyes and their ability to pay your debts at a 'consolidated interest rate & lower payment' is suspect and often times worsens the situation.  On the other hand, I've only witnessed one Credit Restoration Company worth its weight in the seven years I've been traveling this gig.  There may be and probably are more, but I've only witnessed one.  If you want more info, contact me.  Always remember though, you can do everything to make sure your credit is at it's best, yourself... it's a matter of being educated and persistence in your efforts.  That takes time.  Though time is a commodity not all of us have.

Below is info on the reporting agencies that you should contact to get started.  Even if you have an above average credit score, you'll pay more than you should if your credit score is even 20 points lower than the next guy or gal.  Save yourself money, put in the time and seek out the Mortgage Professionals to ensure that time is well spent.  Your credit is crucial... our knowledge of the industry and mechanics involved... can save you money and fulfill your dreams of home-ownership.  If you already are a homeowner, we can help you get on the path to make finances one less worry in this life.

 

Equifax

P.O. Box 740241

Atlanta, GA 30374

1-800-685-1111

www.equifax.com

 

TransUnion

P.O. Box 2000

Chester, PA 19022-2000

1-800-916-8800

www.transunion.com

 

Experian

P.O. Box 2104

Allen, TX 75013

1-888-397-3742

www.experian.com

 

Bear in mind, at this point, you're entitled to one free credit report a year.  Or, and I'd personally recommend this, you can get the whole batch which is simply called the 'Annual Credit Report Request Form.'  That's free as well!  The following sites will lead you in the right direction:

http://ftc.gov/credit

www.annualcreditreport.com

The bottom line in all this, the status of your credit can either cost or save you money.  Which option sounds better to you? 

***UPDATE!***

Lori brings up a good point with the following comment:

i Jason,

What a great blog. You gave a lot of valuable information. I envy your writing skills. I have just one comment, be careful on advise towards settlement's. While it may make the consumer feel like they have done the ethical and moral thing, it mayl not help their credit rating. In reality, you can actually hurt it in the long run. That item can now be reported up to another 7 years. Understand that this reporting is fromthe date of last activity. If you are dealing with an item that has been reporting for a while and is about to fall off, by paying the debt it will be re-activated and stay on for up to another 7 years. The bottom line is a negative entry is a negative entry.  Advise on repairing credit should be looked at on a case to case basis. Each credit profile is as individual as a fingerprint. While most of your information is spot on, there are certain things that can't be generalized. I wish I had your writing skills to be able to give out all the information in my head. I am working on that end of my social networking. Again, great post and feel free to call e-mail me with any questions relating credit repair, credit profiles or any credit related issue including identity theft.

Happy Thanksgiving-Lori Isaacson

 

11/25/2008 01:46 PM

by Lori Isaacson (Credit Restoration Consultants)

Delete Report as Spam

 

 

Property investment for resale has been glorified in shows like "Flip that House", in the ultimate sellers market a few years ago people with very little experience were making big bucks doing this.

Things have changed a little since the days when you could buy a house, throw some paint on it and sell it for a big profit. The good news is that with all the bank owned properties and short sales on the market, good deals are everywhere. Now the investor is taking advantage of the market form the buying end of the transaction rather than the selling end.

Here are 10 tips for the new property investor or even the seasoned investor to consider:

10) Get bids on the work you will need to do.  Even if you have done this sort of thing for a long time, it is always a good idea to talk to your subs before you make an offer rather than after you have purchased the property. Costs are rising in all areas and a job that might have cost one price a year ago may have a completely different price tag today.

9) Figure out your acquisition money.  If you will need to obtain financing for the purchase of the property or any part of the repairs it is good to know what types of financing are available before you get to involved in the project. Typically, the mortgage requirements are much stricter for investment properties. Better credit and higher down payments are normally required. Closing costs may also be higher and all of these considerations affect your total capital out lay. The good news is that there are loans for investors that will allow you to finance a portion of your construction costs and this can be a big help with the cash flow of the project.

8) Talk to a Home Staging Consultant.  Selling vacant properties is a challenge. A good Home Staging Consultant will have some ideas for how to stage the home so it seems welcoming and appealing. This can definitely give your property a marketing edge and it is a good idea to budget for it.

7) Have a "heart to heart" with your Realtor. The worst mistake many investors make is doing the wrong improvements. Your Realtor can help guide you make choices for improvements that will increase the value of your property without over improving it. The other thing you need to carefully consider with your Realtor is the marketing time after you finish the project. What can you realistically list the property for, what marketing time can you expect at different price points and what will your carrying costs be during that time.

6) Have a contingency reserve.  Something will go wrong. It always does. Plan for it by having a percentage of your overall budget set aside for when it does.

5) Find out what type of financing your property qualifies for.  Your property may be located in an area that has special financing available for buyers. Many urban areas have community development loans that help buyers purchase homes in those neighborhoods. Rural areas may qualify for USDA 100% financing. If your property is in an area that has special financing available use that information to help market your project.

4) Get an appraisal.  This may seem like a needless expense since your Realtor is advising you on market value but it can give you and your potential buyers additional peace of mind. There is also another reason and this has to do with #5 and # 3 so pay attention.

3) Make sure the improvements meet FHA requirements and bring the property up to FHA standards.  Not every property qualifies for FHA, multi family homes or homes at the higher end of the price scale may not qualify (please talk to your mortgage professional about this) but a large number of buyers in the current market are using FHA insured funds. Your property will stand a much better chance of finding a qualified borrower if it meets these standards. A certified FHA appraiser will be your best source for this.

2) Keep all your recipts.  There are a number of reasons to do this. Of course you want to keep track of exactly how much you have put into the project for your own records but increasingly, mortgage lenders for the buyers want to know as well. If you keep these organized and in one place, if the buyers lender want to see them it will be painless to get them copies. This is even more important if you have more than one project going on.

1) TAKE PICTURES!  They say a picture is worth a thousand words and when it comes to modern day underwriting this is proving to be true. Pictures taken before you start can often help tremendously in explaining increases in value. Typical underwriting says that the value of a property is only what the most recent purchase price plus the actual cost of improvements total if the property has been owned by it;s current owner less than 12-24 months. You can have all the augments you want about sales price vs. value but a picture of a trash filled, dirty, damaged property will go a long way to helping you win that argument.

 

If you have any questions about financing for investment properties please feel free to contact me any time.

As a Buyer's Agent, I can understand how exciting it is to look for homes! I'm sure there are days when you spend hours surfing the Internet looking for that "perfect" house or weekends driving up and down streets calling on signs to see how much a seller is asking for a particular house.

There are times, I'm sure, that you've even stopped your car in front of a vacant home and peeked in the windows. Maybe, you've even checked the doors to see if they are unlocked...and quite possibly, you may have been tempted to go into the house unaccompanied by a Real Estate agent.

I CAUTION YOU:

Trespassing is illegal.

Under no circumstances should you enter the house without being accompanied by a Real Estate agent.

 

I'm not saying this to scare you, but rather to make you aware that if you are caught in the house without being accompanied, you may get charged with Trespassing.

In addition, you may be the one who is accused of vandalising the property days after your "visit", questioned if the dishwasher has gone missing or held for questioning if there is a reported crime in the house.

So, even if the window is open, the front door is unlocked or the listing agent gave you the code to the combination lock (which they could lose their license for), you should make sure you contact your REALTOR to schedule an appointment to see the property so that the showing is recorded and you are protected.

If you don't have an agent, call or text me at (321) 377-0157 for all homes in Lake Mary, Winter Springs, Sanford, Longwood, Altamonte Springs, Oviedo, Debary, Baldwin Park, College Park, Winter Park, and Windemere and I'll arrange to get you legal access to the homes and keep you out of jail!

 

LaShawn Norden, PA, REALTOR, RE/MAX Central Realty, Lake Mary, FL in Seminole County, CALL OR TEXT @ (321) 377-0157. Email at LaShawn@LaShawnNordenn.com

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First time home buyers are a growing portion of my business. 

As that number grows, I am always learning.

Radon, mold, closing, attorney, inspection, mortgage, down payment, property tax...These words can scare first time home buyers. 

Buyers should not be scared.  Buying a home should be great experience.  Not terrifying.  

 

Four professionals will usually be needed during the home buying process:

1.  The Realtor

The Realtor will fill many roles during the home buying process. 
They will coordinate the transaction.  They can also narrow down home choices, educate on neighborhoods, assist with negotiations, and even provide a shoulder to cry on. 
A Realtor can show any home listed on their local Multiple Listing System (MLS). 
The Realtor should be patient.  A home is a big purchase.  An agent should understand that. 
A good agent will help in many ways.  Find one you trust.  

2.  The Mortgage Broker

The mortgage broker is the contact between the home buyer and the finance companies.  They can educate about interest rates and loan choices.  They will also help determine how much home a buyer can afford.  They should be involved early in the search process.  

3.  The Real Estate Attorney

The attorney will look over the contract and schedule the closing.  They will review the inspection report.  They will also protect the client's interests should any unexpected legal issues occur.   

4.  The Home Inspector

The home inspector will review the home from top to bottom.  They will point out any structural issues.
A good one will differentiate big problems from smaller issues.  They will write up a detailed inspection report which will be reviewed with the attorney.

These are exciting times for first time home buyers.  Get started early.  The process can take anywhere from 30 to 180 days.  Sometimes longer. 

Home prices are lower than they have been in years.  Neighborhoods that were out of the budget are now affordable.

Considering a first home?  Try to relax and enjoy the process.

Use professionals to get the job done.

Buying a home should be a great experience.

Ken

Start you home search on my website, www.KensFeaturedHomes.com. 

Just thought I would share this with you all!

1. Take a 10-30 minute walk every day.  And while you walk, smile.  It is the ultimate anti-depressant.

2. Sit in silence for at least 10 minutes each day.  Talk to God about what is going on in your life.            
3. When you wake up in the morning complete the following statement, 'My purpose is to__________ today.  I am thankful for______________'

4. Eat more foods that grow on trees and plants and eat less food that is manufactured in plants.

5. Drink green tea and plenty of water.  Eat blueberries, wild Alaskan salmon, broccoli , almonds & walnuts.

6. Try to make at least three people smile each day.

7. Don't waste your precious energy on gossip, energy vampires, issues of the past, negative thoughts or things you cannot control.  Instead invest your energy in the positive present moment.

8. Eat breakfast like a king, lunch like a prince and dinner like a college kid with a maxed out charge card.

9. Life isn't fair, but it's still good.

10. Life is too short to waste time hating anyone.

11. Don't take yourself so seriously.  No one else does.

12.  You are not so important that you have to win every argument. Agree to disagree.

13. Make peace with your past so it won't spoil the present.

14. Don't compare your life to others.  You have no idea what their journey is all about.

15. No one is in charge of your happiness except you.

16. Frame every so-called disaster with these words:  'In five years, will this matter?'

17. Forgive everyone for everything.

18. What other people think of you is none of your business.

19. GOD heals everything  - but you have to ask Him.

20. However good or bad a situation is, it will change.

21. Your job won't take care of you when you are sick.  Your friends will. Stay in touch!!!

22. Envy is a waste of time.  You already have all you need.

23. Each night before you go to bed complete the following statements: I am thankful for__________.  Today I accomplished_________.

24. Remember that you are too blessed to be stressed.

25. When you are feeling down, start listing your many blessings. You'll be smiling before you know it.

All Economic News Today Isn't Bad

Amid all the bad news we read about today's economy; stock's plunge, leaving the Dow below 7600, Deflation, Disaster or just a nice discount, NAR forecasts further declines.

I came across some news that is good. Finally.

 

The US Census Bureau is hiring

The US Census Bureau is recruiting temporary part-time census takers for the 2010 Census and according to the Census Bureau:

"The pay is good, the hours are flexible, and the work is close to home. Census taker jobs are excellent for retirees, college students, persons who want to work part-time, persons who are between jobs, or just about anyone who wants to earn extra money while performing an important service for their community."

Every 10 years the Census Bureau conducts a census of our population. It is important work as the results determine representation in government and "as well as how federal funds are spent in your community on things like roads, parks, housing, schools, and public safety. As a census taker, you'll play a vital role in making sure that everyone is included."

 

What Are The Duties of The Census Taker

Census takers perform two main kinds of work; updating address lists (address canvassing to take place Spring of 2009) and conducting interviews (interviewing operations to take place in the spring and summer of 2010).

 

Interested in applying?

Most hiring will take place February through May, 2009 and will hire 140,000 nationally (address canvassing). The Census Bureau will hire another 1.4 million people in 2010 (interviewing operations) to follow-up with people who fail to mail back the form.

Go to How to Apply at the Census Bureau's website or you can also call the Census Bureau's national jobs line at 866-861-2010.

 

I found this recently while looking up some information related to my military service.  It may be useful to some of your customers

 military.com com offers a free address changer service.

The fastest and easiest way to tell everyone your new address. The service will notify:
The United States Post Office
Frequent Travelers Clubs
Magazines
National Organizations
Catalogs
Home Security Companies
College Alumni Associations
Monthly Clubs

Click here to sign up http://military.moving.com/Moving_and_Planning/addresschanger/

 Further military relocation information can be found @ http://mcguiremilitaryrelocation.blogspot.com/