Lauren Herlich

Over and over again, I am running into people who would like to buy real estate and find that they cannot get approved for a mortgage, because they have credit issues. I know this is not some big revelation. I know it is the headline in the news everyday right now. Some of these credit problems are big and will take years to straighten out and others are small items, which can be fixed in a 3 month time period. It may seem hopeless, but it doesn't have to be. What should you do if you find yourself in these circumstances?

First, don't delay and put off your credit problems. It is very easy not to open the mail, screen your calls and forget that the problem exists, but there are solutions. There are non-profit credit counselors available for help in these matters. They can help you straighten out your credit, inform you about the home buying process, and help you qualify for grants if you are eligible. I had one client go through a program, get her credit straightened out and get pre-approved for a mortgage by virtue of participating in what was available at the credit counseling agency. Further, the sooner you start, the sooner you can get your credit cleared up and approved for that mortgage. The next thing will be to find the HOUSE!

Some people suffer from another credit problem and that is no credit. They have never had a credit card, a utility bill, car payment or even a cell phone bill. You do need to establish some kind of credit to get pre-approved for a mortgage. You may want to apply for a major credit card, use it and pay it off in full (don't create a credit problem), get a cell phone, etc.. Credit counselors can also help you when you find yourself in this circumstance.

The Department of Housing and Urban Development provides a list of approved credit counselors around the country. Please, see the following link for Philadelphia HUD Approved Housing Counseling Agencies. At this link, you will also be able to search for credit counselors in other areas.

Second, I would start putting away some cash. These days, you will most likely have to come up with at least 3% of the purchase price for a down payment, appraisal fee (could be as much as $399), inspection fees (in Philadelphia, I would estimate $450) and any other closing costs not covered by a seller assist. If you do not get a seller assist, it is safe to estimate that the closing costs will be 7%-9% in Philadelphia.

Another thing to consider, in this process, is getting your paper work together. Get copies of your bank statements ready for the mortgage company, copies of pay check stubs, and copies of your tax returns. They will be asking for them between the pre-approval and the mortgage commitment. Be prepared to give them any updated copies of the aforementioned documents and copies of the resolutions of any credit problems you may have had. Unless, they have approved a "gift" of money, they are going to want to see that the money you have and some reserves have been in the bank for 2-3 months.

I would stress above all, do not delay. Get working on the problem so that there is a solution in front of you and a time frame laid out to solve the problem. The sooner you address these problems, the sooner you can be in your own house.

Today, was too nice of a day to sit inside at the computer to write. I went out early, ran some errands, and had tacos for lunch. I came home. I took a nap. I got up to take a walk with camera in hand and took photos of my neighborhood for those of you, who read this blog and are not familiar with what South Philly looks like.

My Block







Two rehabbed houses on Jessup Street, the street behind mine.



This is what typical alleyway looks like... gate and all

East Passyunk Avenue runs at a diagonal
through my neighborhood.
It has cute shops and restaurants.






































Living in Philadelphia, you sometimes forget,
there are murals everywhere

10xx Cross Street, runs between 10th and East Passyunk
A normal block with three huge houses added in recent years















My New Friend, Steve

Lady taking her bird out for an airing on 10th Street







Wall by Isaiah Zagar





Just thought the garden looked pretty - right off Tenth Street



Annunciation Parrish

Gino's Steaks and Pat's Steaks sit at the end of the market
People call it the Italian Market or Ninth Street
This is just the South of Washington Avenue. There are actually more stores and stalls on the North side
But I was there too late for it to be open
This is where you saw Rocky Balboa run

Center City from South Philly



Geno's and Pat's Steak sit across the Street from each other

Geno's Steaks



Cheese Fry and Drink Window



Steak Window





Pat's Steaks

My New Friends from NYC I met at Pat's Steaks
... but I think they ate at Geno's











Building on East Passyunk



Sign on East Passyunk for Karate School

St Pio Festival was today at Annunciation Parrish



Elvis and his fans






I wished this photo came out better .. they all looked so thrilled





Food!



This man was as impressed by me as he was by Elvis



PARKING SIGNS - Parking is at a minimum in South Philly




Italian Gear



The Food

Pop the Balloon ... a lot of work for what?



The Rides







Mom and Dad watching their son

Isaiah Zagar's Studio (I think) * 10th & Watkins

http://www.isaiahzagar.org/

















Studio at 10th and Watkins * Next to Convent







Mummers .. Viking Club House ... Fancy Brigade

PARADE: VIDEO: String Bands Link

SERENADE FOR VIKINGS: VIDEO: Link



Different Fronts in the Neighborhood





My Block at Sunset



House with the nicest flowers .... always



My Neighbor ... selling me Cherries

After I went on an appointment the other day, I was really struck that all four houses, for what they were, showed really well. To start, they were all row houses. Two were grandma houses, one was cleaned up (new kitchen, new hardwood, paint and trim), and one was a complete rehab and very modern and innovative. It usually doesn't happen in the price range, in which we were looking, that all of the properties would show well. What did they have in common? They were all clean. One had furniture, but no knick knacks or pictures. Why is this important? There are no distractions. The buyer can picture themselves living in the house. When it is clean, they can imagine that they can move in without a big cleaning job, and they can look around and see the good attributes of the house.

I had this subject on my mind, had the television on this morning, and they were talking, on the TODAY SHOW, about a how to make your house look good for both you, and when selling the property without spending a fortune. The biggest piece of advice, which was given, was to paint the walls in light and neutral colors. Of course, I have seen examples where bold has worked, but it seems you need to be very careful when using bold colors. Next, they advised sellers to keep the house straightened, and remove pictures and personal knick knacks. They gave an example of someone with a white tiled bathroom with hot pink paint. The owner loved the hot pink, but the advice was that no one really wants someone else's bathroom, and it would be good to paint the walls white and make it look like a new, clean bathroom.

Then, they spoke about quick fixes in the kitchen, which can make it look much better. They were as follows: * New Back Splash

* New Cabinet Doors versus All New Cabinets

* New Knobs and Pulls

* Add an Island

* One "Status" Appliance

The next piece of advice they gave was for the buyer. I thought it was the absolute best piece of advice in the segment and that was to not buy a fixer upper unless you can fix it up. I would add to that .... or unless you can afford to have it fixed up in a timely fashion.

So, when I am going through a house, and I am talking about a row house, the following are the things I am looking at with my prospective buyers:

1. Cleanliness

2. General Condition of Kitchen and Bathroom

3. Basement: at minimum should be clean and neat, and in good repair. Hopefully it will also be dry.

4. Heater

5. Water Heater

6. Electric: Fuses or Circuit Breakers? Number of outlets in each room? Are there ground fault circuit interrupter outlets in the bathroom and kitchen (GFCI)?

7. Soil Line

8. Age of windows

9. Treatment of front of house and back of house

10. State of yard and wall

11. Lastly, decor and features such as anything high end or closets, etc.. In Philadelphia, we have that great store called IKEA and if there are no closets, you have a great opportunity to buy attractive, and functional wardrobes in place of the closets. For me, I prefer the wardrobe. I know, however, from showing houses that most people prefer closets.

Other things that seller should consider are the conditions of the roof and chimney. These things cannot be checked by the buyer, but instead by the home inspector, but the seller should be aware of the age and condition of these two items when selling their house.

For those of you not from Philadelphia, the yard in the above picture is really big for a South Philly Yard!

I misreported the credit for which single tax payers could qualify. It is up to $7500 if you close between for homes purchased on or after April 9, 2008 and before July 1, 2009.

Please see the following link for more detailed information.

http://www.federalhousingtaxcredit.com/faq.php

I misreported the credit for which single tax payers could qualify. It is up to $7500 if you close between for homes purchased on or after April 9, 2008 and before July 1, 2009.

Please see the following link for more detailed information.

http://www.federalhousingtaxcredit.com/faq.php