Mortgage Everett: How Is Your Credit Score Calculated Part 2 of 2

 FHA Mortgage, FSBO, Mortgage Everett, Real Estate Agents, VA mortgages  No Responses »
Oct 302009
 

Mortgage Everett: How Is Your Credit Score Calculated

Part 2 of 2

Debt (30%): Continued:  If you made your payment before the reporting date that would give you the extra 3 points you would need fro that score. If you have old delinquencies it may not help you to make payments on them. This is because if you don’t pay it off completely the old late payments become current and now your scores get dinged because now it a current late. If you pay off old delinquencies demand a Letter of Deletion. A Letter of Deletion removes that line of bad credit completely from your credit report. Watch for old collections and the statue of limitations. If the debt is more than 7 years old (most debts but not all) it must be removed. A common practice of debt collectors is to try a change that date to when they bought the debt. This is illegal.

Length of Credit History (15%): You might think that opening up a new line of credit would help your score. Watch out it can actually hurt you a great deal. Say you have a 3 year clean history with one account. Today you open up another account at a local department store. You suddenly have a 1.5 year clean history because they will average your history over the total open accounts. That could cause you to drop 10-15 points in one moment.

New Credit (10%): Every time you shop for a better deal, say on a car, your score is dinged 2-3 points. If the dealer sent your deal to several banks then each one dings you 2-3 points. Just stopping at one car dealer can cost you 20-30 points in less than an hour.

Type of Debt (10%): They are looking for a good mix of all three types of debt.

The way the various parts play against each other creates a dynamic and that creates your scores. It is a complex system that can be used to improve your scores but I suggest you hire a good professional to do that. I have several professionals that I refer my clients to. Remember that the FHA mortgage is not score driven but the better your score the better chance you have of getting a loan. You will find more helpful tips on my blog at Everett Mortgage on Line.

Twitt
 Posted by JAJohnson at 11:21 am

Homes for sale Everett: What is the best way to buy a home today

 FHA Mortgage, FSBO, Homes for Sale Everett, Real Estate Agents, VA mortgages  No Responses »
Oct 262009
 

Homes for sale Everett: What is the best way to buy a home today

In the “old” days a home buyer was required to have 20% for a down payment. Then in the 1950’s along came mortgage insurance offered by a company called MGIC. They pioneered the MI industry. If you had less than 20% down they offered a kind on mortgage insurance to insure the lender that if you defaulted the lenders loss was covered. The way it worked was simple. The less you put down the higher the insurance premium

charged. The buyer was required to keep certain ratios to qualify. This meant the buyer bought less of a home because part of the monthly payment was for MI. This was pure gold for the American dream. It allowed for the present liquidity in the real estate market. Without MI selling a home would take far longer because there would be far fewer buyers.

Fast forward to today. If you are a veteran you qualify for a VA mortgage. The VA mortgage is the only true ZERO down loan available today.

If you are not a veteran the next best way is an FHA mortgage. The FHA mortgage requires a minimum of 3.5% down. Currently the First Time Home Buyer Credit is 10% of the purchase price up to $8000. So you can actually buy up to $228,571 and have a ZERO down purchase. But there is a bit of a catch. You have to have the 3.5% first, buy the home and then file for the tax credit. The federal tax form you file is form 5405. The credit is refundable so even if you didn’t pay taxes you can still get the credit. In some states there are various funds where a qualified buyer can get a “loan” for the down payment and then buy. Check with your local mortgage broker to see if you live in a state when that option is available.

Currently the First Time Home Buyer Credit is set to expire after November 30, 2009. Senator Bill Nelson (D) a member of the senate finance committee says the credit will be extended for a limited time. But no extension has reached the floors of either house yet.

Every mortgage loan is very important to me, so I handle each one personally. My background includes extensive knowledge of the real estate market, real estate finance and personal taxation. If you are looking to refinance or purchase real estate please give me a call or email. I will be happy to discuss all options with you. Currently I have access to 70+ lenders. I have access to 4 different credit repair agencies. My goal is to become your lifetime lender. thefhaloanguy@aol.com

Twitt
 Posted by JAJohnson at 3:03 pm

Homes for sale Everett: Shadow inventory of homes will delay recovery

 FSBO, Homes for Sale Everett, Real Estate Agents  No Responses »
Oct 242009
 

Homes for sale Everett: Shadow inventory of homes will delay recovery

How will the shadow inventory effect homes for sale in Everett? First let’s define what a shadow inventory is. Shadow inventory is bank owned residential property that is not on the market. This is also called the REO (real estate owned) inventory.

Now some facts:

Zillow says the up to 31% of current home owners would sell if the market price came back. If all these homes were placed on the market right now they would depress the market prices all over the nation.

The Wall Street Journal and Bank of America say there are between 3-4 million homes held as REO property right now. With foreclosures up 12% over last year but inventories in the top 28 markets in America are down. Nobody really knows why.

It is estimated that 60,000 to 65,000 Option Adjustable Rate Mortgages will be coming due every month for the next 2 years. The Option ARMs are loans where the borrower can pay less that the full payment. Almost all of these homes will be upside down in equity. That means they will owe more than the home is worth.

Now for my speculation: What if the banks have used TARP money to avoid puting the REO inventory on the market? By putting the REO inventory on the market the bank must recognize the loss. It would depress the market for a while but in a little time the market would adjust and recover. I think many banks have used TARP money to pay bonuses and salaries and avoid painful loss recognition. Japan just went through 20 years of economic downturn because they woiuld not recognize the losses on the balance sheets of their banks. Recognizing the losses would have meant loss of face. Are the bankers of America doing the same thing but using tax dollars to fund this?

Every mortgage loan is very important to me, so I handle each one personally. My background includes extensive knowledge of the real estate market, real estate finance and personal taxation. If you are looking to refinance or purchase real estate please give me a call or email. I will be happy to discuss all options with you. Currently I have access to 70+ lenders. I have access to 4 different credit repair agencies. My goal is to become your lifetime lender. thefhaloanguy@aol.com

Twitt
 Posted by JAJohnson at 3:11 pm

Homes for sale Everett: FSBO sell your home faster, more money

 FSBO, Homes for Sale Everett  No Responses »
Oct 212009
 


If your home is for sale in Everett you should look into the following tips. First be ready to “Stage” your home. That means many little things. Clean up the yard / pick up any trash on site and on nearby streets. If possible power wash the front of the home. If possible power wash the roof and clean gutters. Clean the windows nothing brightens up a room like clean windows. Remove all unnecessary furniture for the entry way. Same goes for entire home again if possible. Nothing makes a home feel small like to much furniture. If you have pets clean up the house and keep them outside as much as possible. Remember the buyer may not like pets and probably doesn’t like yours. The three main areas to watch are entry way / living rooms area, kitchen and main bathroom. In the living room / entry way area simply remove unnecessary furniture and vacuum. In the kitchen wash the cabinets and drawer fronts, refrigerator, stove and dish washer fronts. Scour the sinks and water fixtures. Clean the windows and light fixtures of all dirt and grease. In the bathroom you may want to really look at the walls and shower stall windows. Clean as necessary. Who knows maybe it may clean up so nicely that you may not want to move. More tips in the homes for sale Everett category.

Every mortgage loan is very important to me, so I handle each one personally. My background includes extensive knowledge of the real estate market, real estate finance and personal taxation. If you are looking to refinance or purchase real estate please give me a call or email. I will be happy to discuss all options with you. Currently I have access to 70+ lenders. I have access to 4 different credit repair agencies. My goal is to become your lifetime lender. thefhaloanguy@aol.com

Twitt
 Posted by JAJohnson at 1:22 pm

Homes for Sale Everett; How to have the seller pay your closing costs

 FHA Mortgage, FSBO, Homes for Sale Everett, VA mortgages  No Responses »
Oct 202009
 


In today’s real estate market the buyer is king. The only time the buyer can get seller concessions is when making the initial offer. Before you have a signed contract everything in a real estate deal is negotiable. Remember everything must be in writing to be enforceable. Once the terms are negotiated you can’t ask for more without mutual agreement. You have signed a contract and you could lose you earnest money if you violate the terms. The way to avoid this is have your real estate agent ask for money from seller proceeds to pay for your loan costs at closing. Basically you are asking the seller for a small piece of his proceeds to pay your out of pocket loan costs. The simplest way is to ask for a percentage of the sales price back at close. I always start at 4%. Loan costs are pretty much the same for a $250,000 mortgage or a $400,000 mortgage. When I am the loan officer in a transaction if there is any excess money I get my buyer a reduced interest rate. Look for more buying tips in my homes for sale Everett category.

Every mortgage loan is very important to me, so I handle each one personally. My background includes extensive knowledge of the real estate market, real estate finance and personal taxation. If you are looking to refinance or purchase real estate please give me a call or email. I will be happy to discuss all options with you. Currently I have access to 70+ lenders. I have access to 4 different credit repair agencies. My goal is to become your lifetime lender. thefhaloanguy@aol.com

Twitt
 Posted by JAJohnson at 12:30 pm
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