credit

Unless you’re one of the lucky ones who hit that lottery jackpot or your MegaBucks dreams have come true, the odds are when the time comes that you want to buy a home, you’re going to need to get a mortgage loan to do it. (By the way, when it gets to that point, the most important rule to know is this: SHOP AROUND FOR THE BEST LOAN! Our friends at Premier Mortgage Lending help explain exactly why in this article.)

While it’s true that your Credit Score is only one element (of many) that a mortgage lender considers (in addition to your income, expenses, and other items) – it’s one of the most important when it comes to getting a more cost-effective and affordable loan.

And by that, we mean a good Credit Score gives you more options and saves you money when it comes to getting a mortgage.

How? It can play a role in getting you a better interest rate, in qualifying for a loan with a lower down-payment requirement, and can even help you to pay less in loan fees – such as Loan Origination, Underwriting, Document, and more. (Wondering how much can those fees can add up to? Take a look here.)

Mortgage Loan Rules of Thumb:

A Credit Score of 740 and above will get you the best mortgage interest rate.
A Credit Score between 620-739 may add from .25% to 1% or even more to your interest rate.
A Credit Score lower than 620 will generally require a significantly larger down payment, additional fees, a higher interest rate, and possibly stricter loan terms.

That’s Why It’s Important to Know What Your Credit Says About You.

If you’re considering making a home purchase in the future, the first thing you should do is check to see what information shows up on your Credit Report – and to find out your Credit Score, too – because those are two completely different things:

• Your Credit Report will show your Credit History – including information such as who has extended credit to you, if you made your payments on-time, how much you have borrowed, and what your total debt obligation is – along with personal information about previous names and addresses associated with your Social Security number.

• Your Credit Score is a numerical value applied to you (between 300 and 850) that is based on an analysis of your credit files. This helps lenders determine how credit-worthy you are, and there are 3 main agencies (although there are many others) who provide them to consumers: TransUnion, Equifax, and Experian.

While everyone is entitled by law to receive a free Credit Report annually (you can get it at www.annualcreditreport.com) – Credit Scores are not free, but are available to purchase.

Potential buyers should be checking their credit score regularly, and at least six to 12 months before applying for a mortgage.

The bottom line is this: The higher your credit score, the more trustworthy you are to borrow, and the less interest you will pay on future loans (and not only mortgage loans, either).

The key to getting a low-interest rate on a mortgage or car loan is having a high credit score and solid credit history of paying off your debt. Start working on your credit today and nurture it for the future. Your reward? Saving money in the Business of Life down the road.

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for property management, a newly built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to provide just the service you’re looking for. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, and Kathy Paterniti are all here to help!

Are we all tired of hearing yet that “It’s a New Year! Time to Keep Resolutions! Set Goals! Make Changes!” Yeah, we are, too. So in the interests of ‘moving-right-along,’ we’d like to touch on a subject that seems to make all the “What to do in 2016” lists a lot, but in reality requires diligence to keep in line. Day in and day out, year after year after year.

Yes – we’re talking about your credit score.

The reason we bring it up is because “in the old days” (i.e., sort of before the internet) – your credit used to work like this:

• You pay your bills on time.

• You develop a good credit score.

• You can get a loan or line of credit when you need one.

These days, not so much. There are more things that can actually affect your credit score – both good and bad – than ever before. In fact, there are a lot of things that you probably feel shouldn’t rely on your credit score – but they can still end up costing you money (from higher credit card and mortgage loan charges to auto insurance and more).

The fact is, the state of your credit history can have a huge affect on the things you’re able to do in life. From job opportunities to owning a home. So we’d like to point out a few things you may not know about what does – and doesn’t – make a difference to your credit score.

Whaaaaat?!!! (aka “These Things Matter To My Credit?”)

Renting a car with a debit card can affect your credit. How? Some car rental agencies might see it as a red flag that you aren’t using a credit card, so they’re going to check and see if you can be trusted. It’ll count as a hard inquiry and could cost a few points on your score

Not paying a parking ticket. You might think you pulled a fast one on the local municipality by not paying a parking ticket, but they might have the last laugh. Some cities send your unpaid tickets to collections agencies, and your credit score can take a beating if you have an account in collections. So, while you might think you saved $65 on a parking ticket, you could be paying hundreds of dollars more on a new loan because you might not get favorable terms based on the decrease in your credit score. The same for utility bills, back rent and other expenses.

Getting a New Cell Phone. Opening a new mobile account could also initiate a hard credit inquiry. Although each hard inquiry shouldn’t drop your score too drastically, you’ll want to be careful not to initiate too many in too short a time, or else these little actions can really add up.

Things You Think Should Matter – But Don’t

How much money you make. Now seriously, of anything that affects your financial status, what could possible matter more? And yet, nowhere on your credit report is your income reflected. That’s not to say that anyone you’ve asked to extend you credit won’t make that inquiry, or that the results of a high or low income may ultimately show up in other ways on your report. But as far as your credit history alone – it makes no difference.

Your Debit Card History. For those who were raised with the theory “If you can’t pay cash, don’t get it” – they’re probably more quick to pull out the debit card than the credit card at the purchase counter. But in doing so – you’re using cash you already have (another thing that doesn’t show up on your credit report: Your net worth or cash in the bank). So it’s not demonstrating your ability to utilize and responsibly manage credit. In fact, many people have zero information on their credit history because they chose not to borrow money or pay for things with credit. So literally, by staying out of debt – you’re working against your own credit score.

Spent time in prison? Your credit history won’t show it. However, while it’s true your criminal record is typically ignored, civil judgments can and do appear on your credit report. This includes everything from bankruptcies and tax liens to monetary judgments and overdue child support payments in some states.

The Things That Really Do Matter To Your Credit Score

1. The best thing you can do is pay your bills on-time. 35% of your credit score is your payment history.

2. If you can’t pay them on-time, make sure you pay something each month. Completely ignoring your bills is much worse than paying late. And having an account charged off gives potential lenders historic proof that a company lent you money and you didn’t pay it back, (Need we point out that’s not a good thing?)

3. Help your score by keeping your credit card balances low in relation to your credit limit.

4. Avoid tax liens, bankruptcies and foreclosures.

If buying a home is on your list of things to do anytime soon – or even in the distant future – it is literally never too early to start focusing on building your credit history and credit score. For more tips on what you can do to help improve your ability to get a mortgage loan, take a look at this blog post from Premier Mortgage Lending. (Seven Things To Do To Improve Your Credit Score.)

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!

No two real estate transactions are ever going to have the exact same set of circumstances. But there are things that are rule of thumb for both buyers and sellers, and your Realtor has experience with what those things are. Without them, the odds are that getting to the finish line will be tougher for you, no matter which side of the transaction you’re on. These are some tips that can make the difference.

A List of “Do’s” for Sellers

You love your home and you just assume that everyone else will see what you do and love it, too. Maybe they will – maybe they won’t. But if you don’t make an effort to focus on the positive aspects of it, how do you expect a prospective buyer to see in the few minutes they have to view your property (and compare it to all the others they see)? Here’s a list some of the most important “Do’s” to make your property the one they want to buy:

1) Yes, staging your home by getting rid of clutter and bringing in furniture or accessories can help it sell. (And that includes the garage.) Also, buyers love to see lots of wide-open counter space – so be sure to clear off countertops in the kitchen and the bathrooms.

2) “Does it really matter if we have the carpets cleaned or take the family photos off the wall?” Yes! A buyer needs to walk in and have it look good, feel good and smell good. Put yourself in the shoes of the prospective buyers as if seeing it for the first time. Perhaps unmade beds or laundry on the floor shouldn’t make a difference – but a mess leaves an impression that’s hard for a buyer to overcome. And whether or not it actually matters to them, you should take advantage of every opportunity to make your home as appealing and showroom-ready as possible.

3) At a minimum, you should follow these steps for every prospective buyer:

a) Have your home clean and smelling good. (By the way, keep in mind that not everyone is a fan of plug-in air fresheners or scents. In fact, some people are quite physically sensitive to them, and an adverse reaction may mean they have to leave your home before they were able to fall in love with it.)

b) A comfortable temperature – whether heated or cool depending on the season.

c) Turn on the lights – it’s welcoming and inviting – and makes it clear there’s nothing about your home to hide.

d) Consider their comfort – set out some snacks or even just bottled water. If nothing else, it will cause them to remember your house out of the sea of competitors they visited that day.

4) The takeaway from all the above? The longer a house is on the market, the less likely you are to get fair value. So you really want to position yourself to be the one that sells, not the one that languishes on the MLS listings.

And a List of “Don’ts” For Buyers

You found “The House.” The one you want to live happily-ever-after in. It’s great to be excited and enthusiastic; to plan for the future and begin creating the home you’ve always dreamed of. But buyers need to remember to do first things first:

1) For many buyers, the minute they get preapproved for a mortgage – they start planning. Not for how to get to the closing date – but for how they’re going to decorate, furnish, and get all the things they’ll need once they move in. So they start running up the cards and opening new lines of credit to buy things for their home-to-be. But that preapproval letter is just one of the first stops in the home buying process — it’s not the end-point.

2) Many (especially first-time) buyers don’t realize that just before closing, a lender will re-examine a prospective buyer’s financial situation — complete with a recent copy of the credit history and other financial re-verifications. If those numbers have changed for the worse (salary decrease, higher card balances, new lines of credit), then it could mean the terms of the loan have changed. You may be charged a higher interest rate, or even lose loan approval entirely – because the changes to your credit and financial circumstances have changed your debt ratios. In fact, the number of buyers who get denied as a result of these reasons is significant. Don’t be one of them.

3) The hard lesson that you don’t want to learn by personal experience? Never get new loans or start using credit cards more heavily until after you’ve actually closed escrow on the home.

Since the first order of business is to complete either your purchase or sale transaction, these are important facts to keep in mind so you can go on to enjoy all the benefits of ‘life-after-close-of-escrow’ – whatever your plans may be.

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!

Recovery to Continue in 2014, Says NAR; Rates and Home Prices Predicted to Rise

By Nick Caruso

The real estate market will continue its road to recovery in 2014, with home prices rising 6 percent and mortgage rates hitting 5.4 percent. In addition, demand is predicted to plateau, all according to Lawrence Yun, chief economist and senior vice president of Research for the National Association of REALTORS®, who presented his 2014 market forecast during last week’s REALTORS® Conference and Expo.

Other factors aim to set the market back on the right path. Although there could be a possible negative impact due to rising mortgage rates, job creation and loosening underwriting standards should balance out 2014’s sales volume.

“There were two million jobs created in the past few months and we’ll see the same next year,” says Yun. “These people could potentially enter the market.”

Yun does not see, however, an increase in unit sales nationwide, as inventory levels remain an issue to keep an eye on. Currently, the nation is under one million and this number needs to increase 50-60 percent in order to get back to normal numbers.

“I don’t foresee that next year, but maybe we can at least make up half the needed gain to steadily reduce the inventory pressure,” he says.

While existing home sales are expected to remain flat at roughly 5.1 million units, new homes could rise by 25 percent from 430,000 to 510,000 next year.  This part of the market is still in recovery due to the difficulties for smaller builders to obtain financing. This should continue easing throughout the next year.

When prompted further about how the rising mortgage rate will affect sales and the market, Yun responded: “Assuming nothing changes further, I believe it takes about 10 percent right off the top in terms of people who qualified this year versus the same people who would qualify next year. If need be, NAR will be pushing for new legislation to clarify what QM and QRM are so that we don’t get hit by that 10 percent.”

With the housing market is recovering for most Americans, homeowners will be more concerned than ever about their home values in 2014. Actual price increases for 2013 was 11 percent, which is now expected to be a six percent rise next year. The way to relieve home price pressure is for more inventory to come into the market, says Yun.

“We were surprised by how fast inventory would decline, but there was always a fresh set of inventory trickling in as it went out,” he says.

Overall in 2013, investor activity has been normal, but numbers slightly declined. Though, more small-time investors entered the market, staying one step ahead of the population, consistently punching numbers to see what transactions made the most sense for them. “If investors remain active, it implies that housing is a good buy,” says Yun.

Despite some cautionary areas, the real estate market has its beacons of potential. The industry may not be back to its best numbers yet, but we are still heading in the right direction and making our way down that road to recovery.

“We’ve had a decent year this year and next year will be roughly the same.”

 
Reprinted with permission from RISMedia. ©2013. All rights reserved.

5 Sure Ways to Waste Your Money

By Barbara Pronin

No matter how careful we are with money, everyone has holes in the budget: small indulgences or careless mistakes that end up costing big dollars. The finance experts at Kiplinger’s point out six common money-wasters it makes good sense to avoid:

Carrying a loan or credit card balance – This can cost hundreds of dollars each year in interest – and also costs you down the line in the form of lower credit scores that trigger higher interest rates on loans. If you can’t pay off balances each month, at least keep your balance to less than 25 percent of available credit.

Paying late fees on missed deadlines – It’s easy to miss a payment occasionally. But if you miss a credit card payment by even one day, you will pay a late fee of $25 ($35 if it’s the second time in six months) – and your credit score could also take a hit. A history of on-time payments accounts for 35 percent of your FICO credit score — more than any other factor. If you have a good payment record, you should call your card issuer and ask that a one-time late fee be waived.

Buying insurance you don’t need – Unless you have people financially dependent on you, you may not need as much life insurance as you are paying for. You can also probably do without credit-card insurance (use the premium to pay down debt), rental-car insurance (most auto policies carry some coverage) and mortgage life insurance (a regular term-life insurance policy is more comprehensive).

Overspending on gas and oil – Most cars do fine on regular gas. Be sure tires are properly inflated for best gas mileage – and most cars today require oil changes every five or six thousand miles, not every 3,000 as they once did. Check your owner’s manual regarding regular maintenance – and opt for a fuel-efficient car.

Keeping unhealthy habits – The average price per pack of cigarettes in the U.S. is $6.03, but health-related costs per pack are $35, according to the American Cancer Society. Over a year, those added costs can amount to $12,775 for a pack-a-day smoker. Another habit to quit: indoor tanning. There is a 10 percent  tax on indoor tanning services – and as with cigarettes, the true cost of tanning — one of the most dangerous forms of cancer-causing radiation — is higher than the price you pay per session.

Look to New Home Resource as your go-to Brokerage for all of your Las Vegas and Henderson real estate needs.   Call us today at 702-365-1000

Reprinted with permission from RISMedia. ©2013. All rights reserved

The Mortgage Debt Relief Act is soon to expire!   And Congress has not mentioned a word about extending it…..     NOW is the time to get your short sale completed!

 Let me first remind everyone that we’re not attorneys,  and do not profess to understand this Act nor the law it its entirety.     Seek professional legal and tax advice for any and all of your questions or concerns!

 In a short sale, debt “forgiven” by the lender is subject to income tax,  because it is treated by the IRS as regular income.   With Las Vegas prices as they were during the “Boom Years” of 2004-2007, this figure is astronomical for most homeowners;  hundreds of thousands of dollars in forgiven debt could be considered taxable income.    

 The Act relieves qualifying homeowners from the obligation of paying taxes on mortgage debt forgiven from a short sale or foreclosure.     

 First enacted in 2007, the MDRA was extended once in 2009, but is set to expire this year on 12-31-12.    This means your short sale must be CLOSED by then, or any forgiven debt could be taxed as regular income.    There is qualifying criteria associated with the Debt Relief Forgiveness Act, so please seek professional legal and tax advice to see if you qualify.   

 Potentially millions of people could find themselves liable for a huge tax bill if the government doesn’t renew the MDRA by the end of 2012.    This bill may expire!     Since many short sales take an average of six months to complete, homeowners are simply running out of time.       Those  considering a short sale of their home need to act QUICKLY (like today!) in order to take advantage of a potential tax break. 

 Real Estate Brokers who are “Certified Distressed Property Experts” (CDPE) have undergone additional training specific to short sales.       The Broker at New Home Resource, Joanna Piette,  is a Certified Distressed  Property Expert / CDPE, and she can help. 

 Contact a professional Realtor® at New Home Resource today at 702-365-1000.     We will help you get through this!!

Current inventory on the Las Vegas market is quite low today,  which has caused a home-buying frenzy unlike we’ve seen in years!

Any given property today will REGULARLY have multiple offers within days of listing, and often sell for MORE than the listed price!   

What’s a buyer to do?   First and most importantly,  get your loan prequalification.   Every offer today requires “proof” that you can buy the property so getting in order your financing is truly step #1 of this process.     I like to suggest Cheryll at Premier Mortgage Lending to our buyers because her lending knowledge and level of service is just flat-out amazing.    You can reach her at Cheryll@PremierMortgageLending.com.  

Then, get yourself a Realtor that specializes in buyers, like an agent from  New Home Resource!   We understand the market, have excellent relationships with many listing agents,  and utilize all of the necessary and cutting-edge programs to produce offers & get your signatures.  In this craziness, you can’t afford to have any delays – for any reason.   Acting quickly is the best plan!

   And last, but not least, make your strongest offer first.   Remember that there is much competition,  and you don’t want to lose the home of your dreams over a few thousand dollars.   Your New Home Resource agent can help you decide upon the most appropriate offer for the property.   

Don’t hesitate – with prices and interest rates at all-time lows, TODAY is the time to invest in a new home!!

Buying a home can be both exciting and stressful but, for those with past credit problems, the process may also seem intimidating.  The good news is that many lenders have adapted to the idea that many hopeful homeowners simply need a second chance, which means that past credit problems no longer have to define your future.

Credit Blemishes

When life unexpectedly takes a turn for the worst, it’s not always possible to come out without a few bumps and bruises.  Every day, people are faced with late or missed credit card payments, mortgage foreclosures, bankruptcy proceedings, auto repossessions and even civil judgments that will affect their credit reports for years to come.  Whether it’s from a job loss, injury or just a simple case of temporary hardship, credit blemishes are often a part of life.  The good news is that they no longer have to prevent you from becoming a homeowner.

Give Yourself A Little Credit

After experiencing a credit problem, most lenders will want to see an attempt to rebuild your credit through a steady payment history with a new account.  This can be accomplished by applying for a credit card and maintaining a responsible use of the account.  If you aren’t approved for an unsecured card, you can always apply for a secured credit card.  Either will rebuild your credit over time and will help to show lenders that your past credit problems are just that – in the past.

Clean Up Your Credit Report

Before applying for a home loan, make sure that you check your credit report from each of the three major credit reporting agencies.  Every 12 months, consumers can request a free copy of their credit report from Experian, Equifax and TransUnion.  If anything is incorrect or found to be inaccurate, filing a dispute with the credit reporting agency can help to get the information corrected before speaking with a lender.

When you apply for a home loan, the lender will access your credit report for the purpose of determining your creditworthiness.  In an effort to ensure that you have the best possible chance at being approved for the loan at the best possible interest rates, making sure that your credit report is accurate is a must.

Save Up For A Down Payment

Some homebuyers often qualify for a mortgage with down payments as low as five percent (three percent for FHA loans), but those with past credit problems may be required to shell out up to 35 percent or more for a down payment on their new home.  A buyer who pays a larger down payment obviously has more vested interest in the home and may, thereby, be less likely to default on a loan.  If you have past credit problems, check with your lender about specific down payment requirements and start saving!

Creative Financing Options

If you’ve exhausted all of your conventional efforts and are still turning up empty, don’t give up just yet.  Alternative financing is an option that many homebuyers use to purchase a home.  Your REALTOR® can provide you with details regarding any lease purchase and/or owner financing properties, which may require no credit check, no bank qualifying, a low down payment and competitive interest rate options.

Never before today in my real estate career have I encountered so many folks who are buying property, sight unseen. 

In today’s busy, busy world of real estate purchases, more and more out of state and foreign buyers are wanting to invest in the Las Vegas housing market.  I personally think NOW NOW NOW is the time to buy!  I could be wrong, but just live daily around these incredible prices,  and I can’t help but  think we should all be gobbling It up like candy.     

I’m apparently not the only person who feels this way about Las Vegas real estate 🙂

However, this concept becomes an issue for buyers not living in Vegas – how can they jump on the “purchase today” bandwagon  when they aren’t here to physically visit the home and consummate the purchase?    

Hire a stellar Realtor, that’s how!!  

You need to work with a Real Estate Agent and agency you trust to provide you with all the information available about the property.    One who directs you to websites where you can learn about the area schools, the amenities,  and the crime statistics/rates.  One who responds to your emails and phone calls.    Develop a trust and rapport with your Realtor and together, you’ll put together the deal that works best for you. 

Buying real estate isn’t a simple task, whether or not you live in Las Vegas or Timbucktoo.    Enlist the help of a New Home Resource agent and you won’t go wrong !

As Realtors, one of the first things we do is make sure the buyer in our car has the ‘ability’ to buy:  either they have cash funds to purchase, or they need financing.   Buyers who’ve had a short sale or a foreclosure often think it’s the end of the road for them…. that due to their impaired credit,  they’ll not be able to buy a home for several years.     Well, look no further!      

Las Vegas-based company Premier Mortgage Lending is able to help homeowners who’ve had a recent short sale or foreclosure, and get them into a home – – at today’s incredibly low prices!      The buyer must qualify with at least 20% down and a stable job, regular income and debt ratios that work with traditional loan types, but credit may be overlooked.      Premier Mortgage offers a free prequalification service – – if you or anyone you know has impaired credit, but does have a stable job, regular income and at least 20% down, please urge them to call Premier Mortgage Lending today at 702-485-6600.