Tag Archives: Credit score

NYC Real Estate – An Advice for Purchasing Home

I am constantly running into prospective home buyers who want to purchase a house but they haven’t a Pre-approval letter from lender.

They talk with me to persuade me to take them out looking for a house! But when the subject of their CREDIT and MORTGAGE APPROVAL comes up, it may answer like, “I believe everything is fine, let’s just go house shopping first and after I found the property I like, I will pursue the Mortgage!” But the disappointment would be like this, those house hunters either lost the chance to purchase the home they like due to the timely of the pre-approval process or they can’t qualify for a Mortgage for this particular home that they like so much.

Why need pre-approval before search:

-Do not wasting your time
-You will know how much money that you will be eligible to borrow
-You will know what price range you can afford
-You will action quickly, when you find the home you love
Seller will be more likely to accept an offer from a pre-qualified buyer.
-If you see some errors on your credit report, you can resolve them right away

The fact is, most of us, unless we are paying cash, will need a Mortgage and Mortgage Approval! Why not deal with it up front so that the path is clear for your next home purchase. PressThis to read Tips for Reinforce Credit Score to Buy your Dream Home.

 Other Useful Article:

–          How to Get Pre-approval

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NYC Real Estate – Tip on Credit

–          New late payment can drop scores over 100 points.

–          Grace Periods vary – not all lenders have them.

–          Short sales are usually reported as “Settled for less full than full balance” on reports. This could drop score over 100 points.

–          Bankruptcy remains on credit for 10 years.

–          Any collection account, even if it is for $10.00, can reduce your score over 100 points.

–          Most negative information remains for 7 years

–          Good closed credit can be removed after 2 years.

–          The higher your FICO score the more the score will reduce when new derogatory information is reported.

–          Joint accounts report delinquency on both credit holders’ accounts.

–          Not all credit scores are the same.

–          FICO Score – (Fair Isaac Company) is the most popular score used by mortgage banks.

–          Plus Score – sold by the credit bureaus to consumers for educational purposes can be up to 50 points higher than FICO.

–          Vantage Score – sold by the credit bureaus to compete with the FICO score, uses numerical and letter grades. Vantage score can be up to 200 points higher than FICO.

–          Some lenders use Vantage score but the majority don’t.

–          Other score offered online are Equifax and Credit Karma score.

–          Revolving credit is any credit that consumers can change up to the limit and pay the minimal amount. If there is no limit it is still revolving if the consumer can decide to make minimum payments.

–          Installment credit is any loan, other than mortgage, that has the same monthly payment throughout the life of the contract.

–          Seasoned credit (over 2 years old) is excellent for the scores.

–          The older the age of the account the better it is for the score

 

By North Shore Advisory – A credit Education& Restoration Company – The Credit Specialists – Tracy

To receive Tracy’s FREE cutting edge credit articles email your request to: info@northshoreadvisory.com

Other useful blog:

Foreclosure – Rescue Insolvent Homeowner

Are you finding it more and more difficult to pay your monthly mortgage payments on time? Are you struggling and afraid of foreclosure? If so, FEAR NOT, because a SHORT SALE, while not the most desirable, is much more desirable than a foreclosure.

Regrettably, foreclosures often occur due to unexpected events, such as a job loss or serious illness. And if the worst does occur, foreclosures are extremely damaging. Not only does the lender take your home away from you, but the lender has the option to place a judgment lien against you for the debt owed plus costs for the foreclosure auction. Your credit report will take a disastrous hit too. Those foreclosed on will take a hit of 200 to 300 points, depending on the overall condition of credit. This means that a FICO score before foreclosure of 680 could suddenly dip as low as 380. And to top it all off, buyers who want to buy another home after foreclosure will end up waiting at less 10 years before a lender will make a reasonable mortgage offer.

On the other hand, a short sale can save you from the worst of the worst. While a short sale will also adversely affect your credit score, perhaps even lowering it as much as 200 points depending on your credit condition and mortgage payment history, the effect of a short sale on a credit score can be overcome relatively quickly, especially if you keep a few credit cards and keep them current. On average, the short sale only remains on a credit report for up to 7 years. The owner must also keep in mind that they may be subject to a deficiency judgment for the difference between the loan amount and the amount paid. In general, a trustee’s sale wipes out the right to a deficiency; however, the lender does have sole discretion on whether to pursue a deficiency judgment. Probably the biggest advantage of a short sale is that the wait-time before buying another home is much shorter than those who foreclose. In fact, Fannie Mae guidelines allow short sale sellers to immediately apply for a new mortgage if the seller had kept payments current and had no 60-day late pays or greater on record.

Short sales are popular for the number of advantages it has over foreclosures. The biggest challenge you may face is getting your lender to agree to a short sale, though lenders have been more eager to agree as of late. The best solution will be to pursue a short sale as soon as you realize you are falling behind in payments and won’t be able to catch up – the greater the amount you have in arrears, the less likely the lender will agree to a short sale.

To start the short sale process, the owner needs to present: a hardship letter, 2 years of tax returns, 2 year of W-2’s, a financial worksheet, a signed authorization from lender, 2 recent bank statements, 2 recent pay stubs, and a list agreement with a real estate agent.

Because short sale laws and regulations differ from state to state and the benefits of a short sale will depend on your individual situation, it is very important to consult qualified professionals before making a decision. An experienced short sales agent with access to an experienced attorney who will negotiate for you with your lender is important and advised. For past three years I have processed short sales, bank-owned properties and foreclosed properties in Florida. With my success, I have obtained the trust and satisfaction of many customers, prompting them to become loyal repeat customers and reward me with referrals. I hope to do the same with you.

If you are interesting to have a FREE consultation, if you have any question about sell real estate in Manhattan, contact me directly Diana Wu at 516-320-0231 (cell) or email me at diana.wu@elliman.com, I work for The Voda Group, the AWARD-WINNER group from Prudential Douglas Elliman.

To learn more about our custom-designed marketing plans, visit my website at:  http://www.elliman.com/real-estate-agent/diana-wu/4623 to receive a complimentary valuation of your home, or to discuss any real estate related topics, please contact us today.

Other useful topical:
New York Homeowners: Sale your home at TOP Dollar
Tips for Staged the home Appeal to the Buyer

Why need pre-approval before search house

Why you need to do pre-approval before you search the property. Below are several reasons:

-Do not wasting your time
-You will know how much money that you will be eligible to borrow
-You will know what price range you can afford
-You will action quickly, when you find the home you love
Seller will be more likely to accept an offer from a pre-qualified buyer.
-If you see some errors on your credit report, you can resolve them right away

Manhattan Real Estate Market is very unique. The entire purchase process is different than anywhere else in the world. If you are interesting to have a FREE consultation, if you have any question about sell real estate in Manhattan, contact me directly Diana Wu at 516-320-0231 (cell) or emial me at diana.wu@elliman.com, I work for The Voda Group, the  AWARD-WINNER group from Prudential Douglas Elliman.

To learn more about our custom-designed marketing plans, visit my website at:  http://www.elliman.com/real-estate-agent/diana-wu/4623 to receive a complimentary valuation of your home, or to discuss any real estate related topics, please contact us today.

Other useful topical:
What You Can Get For Your Money – The Neighborhoods of Manhattan
5 Tips for Purchasing Real Estate in Manhattan
Manhattan Real Estate Glossary – Types of Rooms
Renting vs. Owning
New York, Manhattan Neighborhood – some mistakes the 1st time buyers will make
Manhattan Renters — Tips for Reinforce Credit Score to Buy your Dream Home

Manhattan Renters — Tips for Reinforce Credit Score to Buy your Dream Home

Real estate is a long-term investment opportunity. To purchase investment real estate, that will secure your financial goals for the long term. Here are 3 major things you need to prepare before you start to search your next dream home.

1) You need to get your credit report from Experian, Equifax and Trans Union. If there are any errors on your credit report, either you follow the instruction on the report to fix it by yourself, or heir some credit report agent to fix it for you. Improve your credit or fix your credit in order to get loan interest rate as low as possible.

2) Pay your bill on time. You need to pay your entire bill on time, including credit card bill, rental bill, utility bill, etc, in order to build up your good credit score and to show the mortgage bank agent that you are a very reliable person.

3) Don’t close your credit card account. Closing your credit card account will low your credit score. Use your credit card as often as possible, but try not to leave too much debt. Too much debt also will low your credit score. Also the bank will not loan the money to you if your debt over certain percentage of your annual income.

Hope those tips will be useful for you. If you think you may not ready to buy your dream home now, hopefully one day you will think to purchase a home. So why don’t you start to build your credit score now.

Manhattan Real Estate Market is very unique. The entire purchase process is different than anywhere else in the world. If you are interesting to have a FREE consultation, if you have any question about sell real estate in Manhattan, contact me directly Diana Wu at 516-320-0231 (cell) or email me at diana.wu@elliman.com, I have the privilege and pleasure to work with The Voda Group at Prudential Douglas Elliman. The Voda Group has been the top, award winning sales team at Prudential Douglas Elliman since 2003. Our team’s hard working will help your real estate goal extremely successful.

To learn more about our custom-designed marketing plans, visit my website at:  http://www.elliman.com/real-estate-agent/diana-wu/4623 to receive a complimentary valuation of your home, or to discuss any real estate related topics, please contact us today.

Reaching out to others in the real estate community and sharing ideas is the goal of this blog, so please do not hesitate to reach out to me. All comments are welcome. Also, please feel free to email me at anytime at dianawu883@gmail.com

Other useful topical:
• What You Can Get For Your Money – The Neighborhoods of Manhattan
• 5 Tips for Purchasing Real Estate in Manhattan
• Manhattan Real Estate Glossary – Types of Rooms
• Renting vs. Owning
• Manhattan Real Estate – Now is the Best Time to Buy
• New York Homeowners: Sale your home at TOP Dollar
– Tips for Staged the home Appeal to the Buyer

• BUY Manhattan Apartment – perfect wedding gift
• New York, Manhattan Neighborhood – some mistakes the 1st time buyers will make