Garden City, MI

Your credit history is very important to lenders and mortgages in determining whether you get a loan. That is why your credit report is so important. A skilled lender is able to read what it means. A credit report shows how many accounts you have open, how much you owe, how long they have been open, what available credit is available. But the most important item is your actual payment history. How many times in the last two years have you been late on your accounts? Do you always pay on time? Do you let accounts go to collection? Have you had Bankruptcy, foreclosure, or judgements? These are the items that are important in determining whether you are credit worthy.

This is what the lenders are looking at. The credit agencies then assign a credit score based on a formula they have devised. In 2009 the mortgage companies want you to have a 620 score.

The lenders usually only cares about the last two years history. Though FHA loans only want you to have a one year of clear credit. The better the history the better your credit score. They like to see two or three open lines of credit with good payment history. That is why you sometimes do not want to close accounts down. Sometimes older people who pay everything cash have a tough time getting credit because they have no credit history. The key is start getting credit by a secured credit card or being an authorized user on somebody else's credit card. Or get a co-signer on a loan. You need to have credit history.

The credit report will show how many times you are 30 days late, 60 days late, and 90 days late and when they happened. A credit report is like a report card of your financial responsibility. The higher the grade you get the better the rate and the easier to get a loan. A poor score will cost you thousands of dollars in higher interest rates.

Collections, judgements, bankruptcies, and foreclosures are bad marks on your credit history. It is better to not have them on your credit report at all. Even if you pay them off sometimes your credit score will not go up.

The FHA is generally more flexible than conventional lenders in its qualifying guidelines. In fact, the FHA allows you to re-establish credit if:

• two years have passed since a bankruptcy has been discharged
• all judgments have been paid
• any outstanding tax liens have been satisfied or appropriate arrangements have been made to establish a repayment plan with the IRS or state Department of Revenue
• three years have passed since a foreclosure, short sale, or a deed-in-lieu has been resolved
  
  It is good to get a FHA loan because it allows border line credit history and gives you a good rate. . Email me to see if you qualify for a FHA loan.

I hope this helps you start thinking about what you need to do to get your credit on track. A good credit history will help you in the long run.

Russ Ravary your Metro Detroit real estate agent

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I am noticing more and more foreclosures that are in bad shape. With Metro Detroit banks getting tougher with the appraisals. Appraisers are noting all the damage whether it is:

• roof that needs to be repaired
• missing light fixtures,
• drywall damage
• peeling paint

That is putting more Metro Detroit foreclosure buyers in the position of fixing the home before they actually own it. They have to go and fix the roof, or put in the light fixtures before the deal has closed.

It is a catch 22. You don't own the property, but you have to put money into it. It is a dangerous situation for the buyer. But you have to do it. The appraiser has to come back and make sure it is fixed and the bank isn't going to do it. You either do it or walk away from the house.

Most Metro Detroit bank foreclosures are needing some work right now. So be prepared to do a few things if you want the mortgage to pass. Or better yet is to get a 203k loan on the house if possible.

Russ Ravary your Metro Detroit real estate specialist

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Metro Detroit home buyer tips

As a metro Detroit realtor I'm doing things I have never done before. And I admit I am breaking rules that many real estate agents around the country would take me to task for. And I admit that I sometimes am chicken to tell what I have done. I don't want to get into an argument about it.

Right now I am busy but my philosophy has always been to work when there is work. With 2 of the 3 the major employers in the Detroit area possible going belly up... I admit I am very nervous about metro Detroit's future. I am nervous what will happen in our real estate market in the next year. So I am like a squirrel trying to put away all the nuts I can before the winter.

In a few of Detroit's suburbs home values have fallen over 50%. That means every real estate agents income has dropped by that much if they haven't stepped up the amount of homes they are selling.

So here is what I am doing. So go ahead and tell me I am crazy.

• I have no limit on how small of a house that I am selling. I don't care if it is a $2000 foreclosure or a $5000 Detroit home or a $30,000 Westland home or $45,000 Garden City home. I'm not proud. If I'm not busy that day. I'll take the buyer out. I feel someday in the future they may be bigger buyers or they may refer a bigger buyer to me.
• I no longer being finicky about people taking months and months to buy. I mean 6 months of looking. (unless they are unreasonable) I will continue to show home buyers homes. I AM BEING MORE PATIENT WITH THAT VERY FICKLE BUYER... if I know they truly are a good buyer. I have no limit of how many homes I will show them. If... I am not busy and I have no other buyer that needs attention.
• I will travel farther to show homes. With the internet I have the ability to pull comps and get the information I need to help my buyers make a qualified and good decision. I have the access to public records and sold home comparables all over metro Detroit. I have to admit I have been in Chesterfield township 40 minutes away from my area. It was a $225,000 home buyer. I only spent about 6 hours including travel time and they bought a house. It has closed already.

There are agents in my area that haven't made $5000 for the year. There are agents that won't do the things I'm doing. It's beneath them. It's too much work. The buyer takes too much time, It's too far Those are all great excuses not to sell a house. Not to make a living.

By doing some of these things have cut into my personal family time but I am worried we are headed with this Metro Detroit economy. I just don't have much faith at this moment.

But houses are selling and buyers are pulling the trigger on home purchases. Sure I want to sell the $500,000 home like in years past, but I haven't seen any of those clients this year. At least any that have pulled the trigger. Here in Detroit we are working much harder but I am still making a good living. I want to be a survivor. I know agents that won't be.

Russ Ravary your Oakland and Wayne County real estate agent

As a real estate agent we have to deal with many different agents. Some are full time and some are part time. Some are great at their jobs and some don't know how to do it. There are all types but my job as an agent is to help you get your house deal closed.

I tell a few stories of a few to illustrate my point. Let's call the first guy "Hubert" Hubert is about 70 years old. When ever I send documents over to Hubert I swear he falls asleep on them. I sent over a purchase agreement to Hubert on Monday night at 6 pm. Well Tuesday night a 7 pm Hubert calls me up and says the purchase agreement has not gone into the bank yet but he will get to it tomorrow. I have worked with Hubert on another house deal before and it was frustrating. I was working with Michigan relocation buyers and time was important. My poor relocation buyers were as exasperated with Hubert as I was. So I had to keep calling and keep pushing Hubert to get the paperwork and items taken care of. But we did get my Michigan relocation buyers in the house finally.

Then we deal with the "adversarial agent". The one that wants to fight about everything. Anything is fair game, about the purchase agreement or inspection report even before the client is told about it or makes a decision. Rebecca as I shall call her wanted to argue about 3 or 4 days for moving out. What does one day really matter. She wanted to argue about the pre-approval letter because both the clients name wasn't on there. When it came to inspection time she wanted to argue about GFI's and little items. Unfortunately Rebeccas pre-determined attitude poisoned her clients response to any issue. We weren't negotiating with the client. It was Rebecca's issues and attitudes that we were negotiating with. Sometimes as agents and clients, we have to pick the battle we fight over. I once had a $200,000 home deal almost blow up over one GFI. A $20 dollar item. Neither they buyer and seller would give in. They wanted to fight over it. I bought one and gave it to the buyer. The deal closed.

If you want to sell your house or really want to buy a certain home then you can't dig your heals in. You have to negotiate it out. Sometimes you have to give a little to get the "big end result". That is sometimes our job to take the "who's right" or "who's wrong" out of the negotiations. We have to work with the other agent's personality or work ethic in the best way possible to get the deal closed. ( No matter how hard it is)

As a real estate agent we have to step back many times and think of a way to best get the deal closed without ruffling too many feathers. Using the other agents quirks or style to our best advantage. I have dealt with some agents enough to realize how they are going to counter back. And I am sure are some agents out there that know a few of my negotiating tactics.

But the goal is to help get my clients goals achieved with the least amount of stress for them. Sometimes it is frustrating, sometimes we do the other agents job to help get the deal closed. But that is just part of the Metro Detroit real estate business.

Michigan Home Sellers Tips

You will be getting ready to sign the closing papers in a week or two. Now is the time to be the "good neighbor". Now is the time to start sorting things to leave for the buyer of your home. Here is a list of things that you should be thinking about getting together for the buyer of your home.

Keys - front door, back door, garage door, gate keys, shed keys

Alarm code - write down the alarm code and contact information of the company that put in the security system

Manuals - manuals for appliances, garage door openers, alarms systems, water softeners, home vacuum systems are all helpful for the new home buyers. They then know how to operate them.

Association directory or association board members phone numbers

Remotes- for the garage door, fireplace, or lights

A list of repairmen and people you use to keep up the house. Such as landscaper, heating & cooling repairman, electrician and others

Garbage removal company- and when they pick it up

Whether you leave your phone number for the buyer to contact you with questions is up to you. I don't recommend to do that myself because some buyers will be calling you everytime something goes wrong.

More Metro Detroit Home selling advice

Have a great day Russ Ravary your Metro Detroit area Realtor