Credit Scores
GREAT:
720 OR HIGHER, WITH A SCORE LIKE THIS YOU CAN USUALLY GET ANY LOAN YOU WANT AT A GOOD INTEREST RATE. YOU CAN USUALLY
QUALIFY FOR A VIP LOAN.
YOU CAN GET STATED INCOME LOAN IF NECESSARY.
THIS SCORE WILL HELP YOU SAVE ON THE INTEREST RATE, AS WELL AS MORTGAGE INSURANCE IF YOU HAVE TO PAY IT.
GOOD:
680-719 YOU ARE STILL IN GOOD SHAPE.
YOU WILL GET CLOSE TO THE SAME RATE AS A THE GUY WITH A 720.
MORTGAGE INSURANCE MIGHT BE A LITTLE MORE EXPENSIVE.
IT'S OK:
620-679 YOU STILL QUALIFY FOR REGULAR LOANS. MORTGAGE INSURANCE IS GETTING MORE EXPENSIVE.
YOUR INTEREST RATE WILL BE A HIGHER THAN THE 720.
GETTING ROUGH:
580-619 YOU CAN STILL DO A TYPE LOANS.
YOUR MORTGAGE INSURANCE WILL BE HIGHER. IT WILL BE TOUGH TO IMPOSSIBLE TO GET YOU A SECOND MORTGAGE.
FHA IS A BETTER OPTION WHEN YOU HAVE A SCORE LIKE THIS.
WE NEED TO TALK:
579 OR LESS
YOU HAVE SEVERAL LINES OF BAD CREDIT. IT WILL BE ALMOST IMPOSSIBLE TO GET A LOAN WITH THIS SCORE.
A HUGE DOWN PAYMENT MIGHT MAKE IT WORK.
SEEK CREDIT COUNSELING.
PROBABLY NOT GOING TO HAPPEN:
351-519 THIS PERSON HASN'T PAID A BILL ON TIME IN A LONG TIME. IT WILL BE 1-2 YEARS BEFORE THEY WILL GET A DECENT SCORE. THERE ARE LITTLE TO NO OPTIONS FOR THIS PERSON CURRENTLY.
WHAT AFFECTS MY CREDIT SCORE?
SOME COMMON MISCONCEPTIONS;
DON'T RUN MY CREDIT, I WILL LOSE POINTS.
IS IT TRUE THAT RUNNING CREDIT REPORTS CAN REDUCE YOUR SCORE?
Fico.com states that it doesn't if it is a same industry report. Experience tells me differently. The good news, if it is less than 3 in a 90 day period, it doesn't change it at all. If you run 15 in one week you will lose 2-4 points for each report run.
HEY, I KNOW MY SCORE; I RAN IT ON THE INTERNET. ISN'T IT THE SAME?
Not so much. The online version is close to the real thing, but not quite. If you really need to know, have someone in the mortgage industry run it.
I HAVE BEEN WORKING ON MY CREDIT. WILL MY SCORE EVER IMPROVE?
Late pays affect the score by the number of lates, how long they were late, and more importantly, how recent were they. It is hard to quantify the damage multiple lates have on the score. If the lates have been more than 2 years, they have a much smaller affect on the score.
IF YOU HAVE HAD PERFECT CREDIT ALL OF YOUR LIFE, WILL YOU HAVE A PERFECT SCORE?
NO!!!!!!! One of the dumbest calculations that go into credit scoring is the ratio of credit used versus the credit limit. The closer you get to 100% of your credit limit, the more points you will lose.
A card with a $100 limit and a $99 balance will lose you about 15-18 points. If that same card has $101 on it, you will lose about 25 points. Throw on a past due, and now you are talking about some serious points.
Ideally, you would never want your balance to exceed 50% of your limit.
SHOULD I CLOSE OUT MY OLD CARDS TO GET A HIGHER SCORE?
Again, NO!!! If you want a higher score, go out and use those cards just a little bit. Putting $20 on a $10000 card will score you some points. Also a 0 balance on an ACTIVE credit account still reports positively every month so don't close your credit account just because you have paid it off.
The longer you have had a card or loan, the more it adds to your score!
HOW DO I GET A PERFECT SCORE?
I don't know. I have run lots of reports and have never seen an 850.
Other than the obvious (paying everything on time) and keeping credit balances less than 50% of the limit, time. I have only seen one score of 847. She had credit established for 30+ years, no lates and minimal balances on credit. To top it off, she was a real estate agent.
OK, SO WHAT DO I DO WITH ALL OF THIS INFO?
I will be glad to talk with you and counsel you on raising you score.
Call Kris @ 404-579-5889 , www.zugloff.com
Other Credit info:
Common Questions About Down Payment Assistance Programs.
Down payments for real estate purchases have always been difficult for the average consumer to come up with. Over the years, buyers have gotten increasingly creative about circumventing that major obstacle to home ownership. A popular way to come up with a down payment is to have it handed to you by a generous non-profit organization.
Q. Can I still buy a house with 0% down payment and 0% Closing Cost.
A. The answer is definitely YES! There are still many Down Payment Assistance Programs (DPAP) out there that you can take advantage of. In-fact FHA products are getting more popular now and as of March 13 2008 in Cobb County the loan amounts limits is $346,250 for one family and $443,250 for two families.
Q. How the Down Payment Assistance Program Works?
A. The basic way it works is that the buyer and seller agree to use an assistance program. Then, the program contributes funds as a no-strings-attached gift to the buyer to offset the down payment. After the sale is consummated, the seller donates that amount, plus a service fee, to the assistance program company. The company providing the money earns cash on the fee it collects, and uses the proceeds to continue its mission.
Q. How do I find Down Payment Assistance Companies?
A.The major ones are Nehemiah and AmeriDream but there are others. Make sure you speak to knowledgeable real estate agent or loan officer before signing anything.
Q. Is it true that HUD, REO and Bank Owned Foreclosures do not work with Down Payment Assistance Companies?
A. NO! Depending on the real estate market and home inventory levels many banks may choose whether to work with them or not. According to a recent article in the New York Times, officials at HUD are skeptical of the program, and have stopped supporting the practice. They claim that this technique encourages borrowers to buy houses-and incur mortgage debts-that they can't really afford. Meanwhile, Nehemiah and another down payment assistance company, AmeriDream, have sued in federal court in an effort to have the HUD moratorium overturned. Also it is very important how the offer will be written and presented. There are strategies that can be used to get your offer accepted.
If you have any other questions ask them here or e-mail us at kznet@comcast.net for a quick responce!
Currently in Cobb County
(If you are not in Cobb County e-mail me for availability)
Most Bank Foreclosures & HUD Requirements:
1. Valid Drivers License
2. Loan Approval Letter
3. Earnest Money Deposit
4. GA Licensed & HUD Certified Agent
Buying bank foreclosures (get updated list Here)and be challenging, frustrating and risky, however it can be very profitable. Picking the right real estate professionals can take the guess work out of the process and insure a worry free transaction. Buy your next home or investor's property trough your area specialist Century 21 Across Atlanta. All services are provided Free to the buyer. Click here to request appointment or ask questions.
As you can see bellow in the chart for Marietta, GA prices for the most popular 3/2 home has fallen by almost 6% since last year.
The biggest change is in the condos and specially the small one bedroom ones. Prices in that category has plummeted down. If you are in a need for a condo looking at the foreclosure condo market can bring you instant equity. Email me for a complete foreclosure list in your area.
No. Bedrooms | Nov '07-Jan '08 | Aug-Oct '07 | Nov '06-Jan '07 |
|
|
| 1 bedroom | $78,742 | $156,536 | $110,459 | $80,400 | -49.7%-28.7%-2.1% |
| 2 bedrooms | $147,016 | $145,310 | $127,405 | $120,211 | +1.2%+15.4%+22.3% |
| 3 bedrooms | $182,790 | $194,196 | $186,324 | $165,337 | -5.9%-1.9%+10.6% |
| 4 bedrooms | $352,459 | $323,635 | $336,597 | $268,714 | +8.9%+4.7%+31.2% |
| all | $252,752 | $256,439 | $244,598 | $215,742 | -1.4%+3.3%+17.2% |
This list is free and has daily updated information on all Foreclosures in the North side of Atlanta.
www.HotAtlantaForeclosures.com
Buying Atlanta foreclosures (get updated list Here) can be challenging, frustrating and risky, however it can be very profitable. Picking the right real estate professionals can take the guess work out of the process and insure a worry free transaction. Buy your next home or investor's property trough your area specialist Century 21 Across Atlanta. All services are provided Free to the buyer. Click here to request appointment or ask questions.
NINE STEPS TO BUYING A HOME:
Step 1: Know your Rights- Fair Housing
Step 2: Figure out how much you can afford
What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate. Ask your agent to assist you. Monthly Payments Calculator
Step 3: Shop for the right loan
Save money by doing your homework. Talk to several lenders, compare costs and interest rates, and negotiate to get a better deal. Financing Distressed Properties may require special financing. Make sure you talk to your agent about your goals.
Step 4: Learn about home buying programs
FHA loan programs offer lower down payments and are a good option for first-time homebuyers.
Step 5: Shop for a home
Contact us to set up Client Gateway so you can monitor all foreclosures in your area. Only GA HUD Certified Agent can open GA HUD properties. Make sure you pick your agent carefully. Atlanta Foreclosure List.
Step 6: Make an offer
Your agent should know about current changes in 2008 GAR forms and contract law and assist you in all paperwork involved. Banks usually have additional exhibits and addendums. Make sure you read and understand everything before signing anywhere. Ask your agent to explain all contracts in detail.
Step 7: Get a home inspection
Always negotiate your offer to be contingent on a home inspection. An inspection will tell you about the condition of the home, and can help you avoid buying a home that needs major repairs.
Step 8: Shop for homeowners insurance
Lenders require that you have homeowners insurance. Be sure to shop around.
Step 9: Sign papers
You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign!
See also: Foreclosure Tour with Century 21
Thank you for reading!
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Foreclosures, Estate Sales and deals which you WON'T find on MLS let me know and I will schedule a time to meet with you at my office. We will have some coffee and talk about your goals.
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