Credit Reports

Check your credit report!! 

My recommendation is to pull one credit report at three different times a year.  (For example, pull Equifax in February, Experian in June and TransUnion in October.)  Check out the link below to pull reports, get further information and even take care of issues or disputes:

http://www.annualcreditreport.com

Your credit score is NOT included in your reports.  For a “ballpark credit score” I recommend going to http://www.creditkarma.com.  This typically takes a good average of 2 of the 3 credit scores to give you an idea of where you stand.  Be sure to open the PDF below to walk you through some great information on “Understanding Your Credit Score”:

• myFICO_UYFS_Booklet

Federal law now requires each of the three nationwide consumer credit reporting companies to give you a free credit report every 12 months if you request it. The three are Equifax, Experian and TransUnion.

What is a credit report?

A credit report is a list of information that can be found on your personal credit file.  Examples of what can be found on a credit report are:

• Companies that have given you credit or loans
• The amount of each loan or credit limit for each credit card
• Frequency of when you paid your credit or loans on time as well as the amount you paid

Why check your credit report?

• More and more things in our daily lives are based on credit and your credit worthiness.
• It will help you detect and dispute errors.
• Your credit may be affected by other’s mistakes (ie. cosigning, etc.)
• You may stop identity theft or credit card fraud early on.
• By being proactive with your credit, you will save money.
• It’s FREE!

Credit comes in especially handy when looking to purchase a home.  I recommend talking to a least 2-3 different banks when getting pre-approved for a mortgage.  A great resource I can offer you is our Mortgage Officer at Edina Realty, Josh Sullivan.  He is extremely knowledgeable, honest, quick and resourceful.  He also partners with a fantastic Credit Repair company that can help get your back on track fast!  For contact info, rates and more, visit Josh’s website at:

https://joshuasullivan.edinarealtymortgage.com/

 

If you or someone you know is looking to buy or sell a home, please send them my info! 

Tips for First-Time Homebuyers

Do your homework before you start looking.

Decide specifically what features you want in a home and which the most important ones to you are.

Get your finances in order.

Review your credit report and be sure you have enough money to cover any out-of-pocket expenses. Many finance plans provide for including the closing costs within the loan amount, but you still need some ready cash. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration…or to save money for other financial goals.

Don’t wait to get a loan.

Talk to a lender and get pre-qualified (pre-approved) before you start looking. Don’t worry about having to make an immediate decision on a home because of it…the pre-approval is usually good for quite a while.

Decide when you could move.

When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?

Think long-term.

Are you looking for a starter house with the idea of moving up in a few years…or do you hope to stay in this first home longer? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that suit you best.

Don’t be naïve.

Insist on a home inspection and if possible, get a home warranty from the seller to cover defects in one year.

Get help.

Consider hiring a REALTOR as a buyer’s representative. Unlike a listing agent whose first duty is to the seller, a buyer’s representative is working only for you. Most often the buyer’s representative is paid out of the seller’s commission payment anyway.

Choosing your realtor.

Home buying is emotional and a big financial commitment. Make sure you are working with a skilled professional who is a good fit with your personality.

“Right” time to buy.

There’s no real right time to buy any more than there is a right time to sell. If you find a home now, don’t try to second-guess the interest rates or housing market by waiting. Changes don’t occur fast enough to make that much of a difference anyway. A good house won’t stay on the market that long either.

Too many opinions.

This is especially true with first-time home buyers. It is natural to want reassurance for such a big decision, but too many ideas will make it a harder decision. Trust your realtor…that’s your expert.

No house is perfect.

Remember to focus on the things that are most important to you, and let the others go.

Killer negotiator.

Negotiations are part of the real estate process. Trying to “win” by getting a dirt-low price may lose the house for you.

Physical aspects of the home.

Don’t focus too much on room size, kitchen size vs. overall home… you may forget such issues as amenities, noise level and other aspects that have a big impact on what it is like to live in your new home. Although appreciation is important, your new home’s most important role is to be a comfortable and safe place to live.

Buyer’s remorse.

This is inevitable and will probably pass. Buying a home…especially for the first time…is a big commitment. Remember it also yields big benefits

 

 

Why Work With an Agent?

A Realtor can show you appropriate properties, offer valuable advice and coach you through the entire home buying or selling process. By entrusting an agent with your home search or sale and openly sharing your expectations and needs, you’ll improve both the process and the results.

How an Agent Works For You:

• Lends knowledge of the market to help you make informed decisions.
• Shows you properties that meet your needs in style, price and location.
• Uses their expertise and experience to negotiate on your behalf.
• Guides you through each stage of the transaction.
• Recommends professionals in related fields – loan officers, closers, home inspectors and other vendors needed to ensure a smooth transaction.
• Shows you any property, even those listed by another broker.
• Monitors the MLS, Edina Realty and Network One daily for you.
• Networks with other agents to obtain leads on properties coming in the market.
• Locates potential builders, if new construction is right for you.
• Saves yourself time and trouble searching for a home.

86 Possible Disturbances

Things that could go wrong during your transaction are:

The Buyer/Borrower

1. Does not tell truth on loan application.
2. Submits incorrect information on the loan application.
3. Has recent late payments on credit report.
4. Finds out about additional debt after loan application.
5. Borrower loses job.
6. Co-borrower loses job.
7. Income verification lower than what was stated on loan application.
8. Overtime income not allowed by underwriter for qualifying.
9. Applicant makes large purchase on credit before closing.
10. Illness, injury, divorce or other financial setback during escrow.
11. Cannot locate divorce decree, petition or discharge of bankruptcy, tax returns, or bank statements.
12. Difficulty in obtaining verification of rent.
13. Interest rate increases and borrower no longer qualifies.
14. Loan program changes with higher rates, points and fees.
15. Child support not disclosed on loan application.
16. Borrower/co-borrower does not have steady two-year employment history.
17. Buyer feels the house is misrepresented
18. Veterans DD214 form not available.
19. Buyer comes up short of money at closing.
20. Buyer does not properly document additional money that comes from gifts, loans, etc.
21. Buyer does not bring cashier’s check to title company for closing costs and down payment.
22. Slow to get in documents, causing delays.

The Realtor

23. Has no client control over buyers or sellers.
24. Delays access to property for inspection and appraisals.
25. Does not get completed paperwork to the Lender in time.
26. Unfamiliar with their client’s financial position – do they have enough equity to sell, etc.
27. Inexperienced in this type of property transaction.
28. Takes unexpected time off during transaction and cannot be reached.
29. Misleads other parties to the transaction – has huge ego.
30. Does not do sufficient homework on their clients or the property and wastes everyone’s time.

The Seller

31. Will not allow appraiser inside home.
32. Will not allow inspectors inside home in a timely manner.
33. Removes property from the premises the buyer believed was

included.

34. Cannot clear up liens – is short on cash to close.
35. Did not own 100% of property as previously disclosed.
36. Encounters problems getting partners’ signatures.
37. Leaves town without giving anyone Power of Attorney.
38. Delays the projected move-out date.
39. Did not complete the repairs agreed to in contract.
40. Seller’s home goes into foreclosure during escrow.
41. Misrepresents information about home and neighborhood.
42. Does not disclose all hidden or unknown defects and they are subsequently discovered.
43. Seller does not appear for closing and won’t sign paperwork.

The Property

44. County will not approve septic system or well.
45. Termite report reveals substantial damage and seller is not willing to fix.
46. Home was misrepresented as to size and condition.
47. Home is not structurally sound.
48. Home is uninsurable for homeowner’s insurance.
49. Portion of home sits on neighbor’s property.
50. Unique home and comparable properties for appraisal are difficult to find.

The Escrow /Title Company

51. Fails to notify lender/agents of unsigned or unreturned documents.
52. Fails to obtain information from beneficiaries, lien holders, insurance companies of Lenders in timely manner.
53. Allows principals leave town without getting all necessary signatures.
54. Loses or incorrectly prepares paperwork.
55. Does not pass on valuable information quickly enough.
56. Does not coordinate well, so that many items can be done simultaneously.
57. Finds liens or other title problems at the last minute.
58. Is not flexible.

The Appraiser

59. Is too busy to complete the appraisal on schedule.
60. No comparable sales are available.
61. Makes important mistakes on appraisal and brings in value too low.
62. Lender requires a second or ‘review’ appraisal.
63. Ignores qualified comparable properties.
64. Does not take improvement into account and home value comes in too low.
65. Ignores qualified comparable properties.

Inspectors

66. Pest inspector not available when needed.
67. Pest inspector too picky about condition of property.
68. Home inspector not available when needed.
69. Inspection reports alarm buyer and sale is cancelled.

The Lender(s)

70. Misrepresents or self-interprets guideline(s).
71. Doesn’t know how to read a tax return.
72. Is lazy or slow.
73. Is overcritical.
74. Has an overlaying guideline that kills the loan
75. Continues to come up with more conditions that delay everything.
76. Says they will have something done by a certain date and time and don’t do it.
77. Override the appraiser and lowers the value of the house.
78. Does not adequately understand borrower’s income structure.
79. Is illogical.
80. Gives incorrect information that misleads everyone.
81. Delays verification request and/or closing documents due to ineffective and general lack of care or concern.

The Government

82. Unexpected modifications / additions to regulations or laws.
83. Slower process due to increased regulations.
84. Appraisal Management System inhibits productive communication with the appraiser.
85. Less options for the borrower due to our inability to better structure / customize fees and / or compensation.
86. Mandated wait periods due to normal product / term changes that can greatly delay the overall process (an example of this is getting a lower note).