Found 8 blog entries tagged as credit.

We here at Tom Crimmins Realty can attest to the importance of a good credit score. When it comes to buying a home, big or small, all credit-collecting companies look at one thing before offering a loan: your credit report. This might be a breeze for some and nerve-wracking for others. Here’s a crash course on all things credit and how to break the coveted 850.

What is a Credit Score?

A credit score is a three-digit number ranging from 300-850 that expresses how likely you are to repay your debts. This number is created by the three main credit bureaus, Equifax, Experian, and TransUnion, using algorithm models created by companies like FICO. Lenders use this number to determine approval for loans, credit limits, interest rates, and other financial…

1607 Views, 0 Comments

Read Full Post

One of the first (and very important) steps in qualifying for a mortgage is to have your bank run your credit report. Your credit report has a major impact on what type of mortgage loan you qualify for.

What is on my credit report?

 Your credit report will consist of three separate scores from each of the three major credit bureaus: Equifax, Transunion and Experian. The scores from each bureau are usually different of varying degrees. The report also consists of all your monthly payment obligations and your payment history on each one. What banks do with your credit report is to make sure you have a history of making your payments and making them on time. If you are behind on any of your payments, the bank will see this on your credit report. They…

1987 Views, 0 Comments

Read Full Post

It's never too early to think about or plan to buy real estate. Aside from saving as much as possible, it is vital to establish good credit and make sure to keep your credit blemish free.

Here are some suggestions to establishing good credit:

  1. For the college students - if your parents have good credit and pay bills on time ask to piggy bank onto their charge account to gain positive credit ratings.
  2. Get your own minimal charge card or two. Usually a gas card or department store card is an easy one for a new applicant to secure.
  3. Don't pay your new charge card off entirely each month. Pay the minimum for a few months then pay it off. Repeat this process. Credit bureaus like to see this.
  4. College loans help establish credit. Pay them on time…

2230 Views, 0 Comments

Read Full Post

By: Daniel Boxman of United Northern, NMLS ID# 1077102

Mortgage Application Process

Now that you have negotiated a sales price and reached an agreement with the seller of your home, it is time to apply for your mortgage.

You can first reach out to the lender that gave you the mortgage pre-approval, or any other lender if you desire. Since you now have a contract of sale and are ready to apply, it is not a problem to check out which lender can give you the lowest rates and fees.

Once you decide on the lender, you will need to gather up some more documents. The lender will need to get a copy of the contract of sale, as well as a canceled check you are using for your down payment. If you decide to pursue with a different lender than the one who…

3745 Views, 0 Comments

Read Full Post

By: Daniel Boxman of United Northern, NMLS ID# 1077102

Once your offer has been accepted, but before you sign your Contract of Sale, it is very important to get your home Inspected by a qualified home inspector. This is a very important step in the home buying process. 

The home inspection consists of a very detailed look throughout the home. The main goal of a home inspection is to make sure that the home is safe to live in. For example, the inspector will take a close look at the roof to make sure it is well intact. They will also check to see if there is any structural or mechanical damage such as broken heating systems, or a collapsing floor. The basement will be checked for cracks and damage as well as your toilets and more. A termite report is…

3793 Views, 0 Comments

Read Full Post

By: Daniel Boxman of United Northern, NMLS ID# 1077102

Get Preapproved

After you've gotten yourself prepared and feel ready to move forward with your home purchase, the next step is to get pre-approved with your mortgage lender. A pre-approval is based on your financial situation and includes a loan amount agreed upon between you and your lender that they believe you will be able to repay. 

A pre-approval letter is not necessarily a commitment to the loan, but it is a huge asset to have when you are searching for your home, as it shows any realtor and/or seller you are working with that you are serious about this purchase and ready to qualify. This gives you an advantage over other buyers who have not pre-approved through a bank yet. Also, many…

2427 Views, 0 Comments

Read Full Post

By: Daniel Boxman of United Northern, NMLS ID# 1077102

Preparing yourself for a home purchase is very important. When you are investing in one of the biggest purchases of your life, you want to make sure you are ready. Here are things to consider that may help:

Look over your Financial Situation:

  1. Check your credit. Run your credit (if you haven’t in the last 3 months); you are entitled to a free credit report once a year. There are online sites such Credit Karma who do this for free, or you can even look into creating an account with one of the three big credit Bureaus (Experian, TransUnion, Equifax). Knowing your credit score will give you an idea if you are in good standing to buy a home. You will also be able to see if there are any issues…

2570 Views, 0 Comments

Read Full Post

By Timmy Rail of Citybrook Corp.  NMLS•: 12812

Some important tips that first-time homebuyers should be aware of as this year's "Spring­ Buying Season" approaches:

  • Your credit profile is made up of 3 scores from the 3 main credit bureaus, Equifax, Experian and TransUnion; lenders will use your middle (average) credit score
  • A huge part of getting "pre-qualified" is to take an early look at your credit scores and credit profile, in-case there are errors or items on your report that you can "clean-up" before you find homes you like and want to put an offer on
  • Lenders generally take your "unreimbursed employee expenses," found on the "Schedule A" of your tax return (generally, page 3, line 21), off the top of your gross income (these may be…

2502 Views, 0 Comments

Read Full Post