Jeff McIlhenny

2009 is a great opportunity for those looking to buy a home in Charleston SC. Whether you are buying a home for the first time, or you are a move up buyer, an important aspect if the process is your credit. It is especially important that you become familiar with your credit at the BEGINNING of the process. In fact, it should be the first step you take.

In the wake of the mortgage meltdown and the wave of foreclosures, lenders have tightened up their guidelines, making mortgage money harder to get than ever before. That is why if you are looking to buy a home in Charleston SC in 2009, it is more important than ever to make sure your credit is in the best shape possible.

Once you obtain copies of your credit, you want to look over the reports to see what information they contain, as well as to see if there are any errors---it is very common to find an error of some kind.

Nowadays online resources provide consumers with easy to read reports. They will usually contain information to help translate what the information in the report means. But there are still things that are foreign to most people regarding their reports, so that is what I will try to address here.

One common thing people ask me is they will see what appears to be the same account repeated on their credit. Often, if a creditor cannot collect on a particular account, and that account is well past due, they will often sell the debt to a collection agency. This creates a new account (with the collection company), although it is the same debt. This also creates a double hit on your credit, as both accounts report negatively and negatively impact your score.

The status of your accounts also impacts your score. Ideally, the accounts will report as current, paid as agreed, and never late. If you are late on a payment by a few days, that does not show up. If you are late by 30 days or more, then it will show. If you are consistently late, then this will be reflected on your report and will hurt your score. Payment history is the greatest factor of your score--it accounts for 35% of your overall score.

One important warning, and something that confuses most people: be very careful about past due accounts. Many people will attempt to pay them off, only to find that doing so actually hurts their credit. There is a wrong way and a right way to go about taking care of past due accounts.

First, if you are planning to buy a home in Charleston SC this year, then you want to make sure your credit looks good to the mortgage lender. Lenders look at the information on your report from the last 2 years. If you have any past due accounts that are over two years old, you may not need to worry about them. If they are large debts, such as over $2000, then a lender will probably want to see them resolved. But if you have a $50 phone bill from 5 years ago, chances are you won't need to worry about it.

Your credit score is impacted mostly by accounts and information from the last 6-12 months, so older items don't affect your score as much. The accounts on your report will have a date of last activity. Current accounts obviously will have a very recent date, the older accounts that are no longer active (whether they were closed or not) will have older dates. Here's where that $50 phone bill can hurt you:

This example is a 5 year old account, so the date of last activity would be from around 5 years ago. You decide to call the phone company to pay the bill. The payment is reported to the credit bureaus, so now there is new activity on the account. However, the account will still report as a past due account, but it is now recent activity, which basically means you just hurt your score by making this negative account updated with new activity.

What happened? When creditors receive a payment on old past due accounts, that will update the account. However, they are happy to get their money, but the y will not usually change the staus of the account from "past due" to "paid as agreed", thus leaving the account as a negative account. Below I will show you how to pay off past due accounts the right way. But if an account is over 2 years old, hold off on repaying--unless a mortgage officer recommends you do so.

So, what is the proper way to repay? First, look to see who the debt is assigned to---does the original creditor still have it, or did they sell it to a collection agency? If the sold it, you want to be careful not to pay off both the original creditor and the collection agency.

Second, on older debts it is possible to negotiate the debt. The older the debt, the easier it is to settle for pennies on the dollar. Even if you cannot get a deep discount, it is important to remember that you do not necessarily have to repay the full amount.

The most important thing about paying off older debts is making sure the creditor agrees to report the account "paid as agreed"--have them send you something in writing before you pay them. Also make sure to have them send you a receipt of the payment. It is also a good idea to pay by check (this makes it easier to document). In the memo line of the check (or back) write "cashing this check constitutes payment in full". All of this will ensure you have proper documentation that the account has been satisfied and paid in full. You will need this if the creditor fails to report the account correctly--you can then dispute the account to the credit bureaus directly, and will have the ammo you need to get the account to report correctly (and have this new information help, not hurt, your score).

You can dispute items on your credit report directly to the bureaus online, or you can use a credit repair company. But be careful of scammers--many companies will take your money and not do anything to improve your credit. Or worse, they will leave your credit in worse shape.

The best advice for those looking to buy a home in Charleston SC in 2009 is to connect with a professional team--a mortgage consultant and a Charleston SC realtor. Most Charleston SC realtors do not know much about credit or credit repair. However, I began in this industry doing mortgages and studied credit and credit repair. I have a lot of helpful credit information, including my free credit e-newsletter. Just drop me a line to sign up.

You can also find more helpful information about buying a home in Charleston SC on my website.

Stay tuned for more helpful tips for those looking to buy a home in Charleston SC in 2009!

Jeff McIlhenny is a licensed Realtor with Weichert Realtors Palmetto Coast in Mt Pleasant SC and serves the entire Charleston SC real estate market. He can be reached at 843-452-2953 or jeffm@weichertpc.com

2009 is a great time to buy a home in Charleston SC! Interest rates are at all time lows, inventory of avialable homes is high, and prices have dropped to levels from years past. If you have even thought about buying a home in Charleston SC, NOW is the time tomake the move--whether you are a first time buyer or move up buyer.

This is the second in my series about credit--getting your free reports, understanding your reports, and improving your credit to be in the best possible shape when it comes time to apply for a mortgage. Lenders have tightened up their lending guidelines in the wake of the foreclosure wave and mortgage meltdown. It is even more important than ever to make sure your credit is in the best possible shape if you plan to buy a home in Charleston SC in 2009.

Ok, so you read my first post about going to annualcreditreport.com to get your three free reports and paying the $7 each to get your three scores. Now what?

Let me show you how a lender looks at your reports, what they are looking for, to give you some perspective.

You will probably have three different credit scores--this is normal. Not all creditors report to all three bureaus, and each bureau tweaks the scoring formula a little differently, so that is why you will probably see three different scores.

Scores can range from 400-800 (you can see scores that are above and below that range, but most will fall in there somewhere). What do they mean? Anything below a 580 is bad. This means you need serious attention. Above it, and you can play, but great credit is anything over 700.

Here is how the mortgage lenders look at it. To qualify for a mortgage, you need a minimum of a 580 middle score. Middle score, what's that? Well, when lenders pull your three reports and see the three different scores, they throw out the highest and lowest and go woth the middle score. That score needs to be at least a 580. Now, FHA and VA programs do not really have any minimal credit score requirements, but the worse your credit, the worse your interest rate and the more you will need for down payment.

This series is designed to help those looking to buy a home in Charleston SC in 2009 to get themselves the best prepared--that includes improving credit to assure that you will not have to worry about marginal credit, or any credit issues that will keep you from getting the best avaialable loan.

So, the target to shoot for is 700 or above. This series will help you get there. The whole point is to be proactive--get familiar with your credit and do anything necessary to improve it.

What else are lenders looking for? Stability. They will look at the last 2 years of your history--credit, employment, salary, housing.

The most recent information on your credit report carries the most impact on your score. Lenders want to see what kind of credit you have for the last couple years. Hopefully, anything derogatory is in the past.

They also want to see your employment history (for the last 2 years)--ideally, you have held the same job. If not, then they like to see the same line of work. Of course, if you changed fields, but you received a higher salary to do so, then this woulod make sense to a lender. They just don't want to see someone bouncing from one job to the next--remember, they are looking for stability.

They also like to see the same address for the last 2 years. If you moved in the last 2 years, it is not the endof the world! Again, as long as you don't show a history of bouncing from one address to another, that is what they want to see--stability.

Future posts will discuss credit and credit repair in greater detail. I will also discuss the rent to own option. For more credit and home buying info, be sure to check out your online resource to help you buy a home in Charleston SC in 2009!

You can also sign up for my FREE credit e-newsletter to receive weekly tips, just drop me an email.

Jeff McIlhenny is a licensed Realtor with Weichert Realtors Palmetto Coast in Mt Pleasant SC and serves the entire Charleston SC real estate market. You can reach him at 843-452-2953 or jeffm@weichertpc.com

The New Year is upon us, and for many it is time for New Year's resolutions. For many, buying a home in Charleston SC will be there number one goal. An important first step is becoming familiar with, and improving, their credit.

Over the next few weeks, I will provide helpful information about credit, credit reports, and credit repair.

First, it is important that you become familiar with your credit. It is a good idea to keep up with your credit by periodically checking your credit to see if there are any errors or derogatory information. In this day and age, with easy access to your credit reports, there is no reason not to be on top of your credit. These posts will also provide you with helpful tips to improve your credit so that you can be proactive going forward, in order to improve and maintain your credit.

There are several websites that offer free credit reports, however, most of them require you to subscribe to some sort of service to get your free reports. Although these monitoring services can be of some use, many of them are simply a waste of money. The best resource is to go to the site set up by the government to give people their free credit reports. By law, you are entitled to one free credit report from each of the three major credit bureaus (Equifax, Experian, Trans Union) once a year. If you want your respective credit scores, however, they will charge--but it only costs $7 a score. It is important to get your scores, and this is just a small expense.

Another helpful credit site is myfico.com. They will charge you to get your three scores and reports, but once you pay, you have access to a lot of helpful information and tools that can help you with your credit. The cost (last I checked) was $44.95.

The best way to keep up with your credit is to visit the annualcreditreport.com site at the beginning of the year and get one score and report. Then, about the middle of the year, get the second report and score. At year's end, get the third report and score. This way, when it is time to get the next report and score, it will be a new year, and the cycle of free reports begins again.

If you are thinking of buying a home in Charleston SC in the next 6 months, then you should go ahead and get all three reports and scores. If you are further out, then only one score and report will do for now.

Future posts will discuss in greater detail about reading and translating your report, how to fix derogatory items, and other tips for credit repair and improving your credit.

I have some basic credit information on my website for those looking to buy a home in Charleston SC.

I also have available e-newsletters, one for first time buyers and one for credit and credit repair that you can sign up for now and start receiving tips right away--much of the information I will cover in the posts is covered in my e-newsletter. Simply drop me a line!

Jeff McIlhenny is a licensed Realtor with Weichert Realtors Palmetto Coast in Mt Pleasant SC and serves-the entire Charleston SC real estate market. You can reach him at 843-452-2953 or jeffm@weichertpc.com.

2009 is shaping up to be one of the best times ever for those looking to buy a home in Charleston SC. Prices have dropped to levels from a couple of years ago, inventory is high, absorption rate is high, and interest rates are hitting their all time low. Remember the old saying, "Buy low, sell high"? Well, right now is the prime time to take advantage of that!

The only negative factor for those looking to buy a home in Charlston SC is the fact that banks have tightened up their lending guidelines, making it that much harder for buyers to obtain mortgage money. It is more important than ever before to make sure your credit is in top shape, because if it isn't, you will not be able to get a mortgage, and you will miss out on the great opportunities that exist in the Charleston SC real estate market.

Below is a checklist of important steps buyers should take to get on the right path to success--buying a home in the Charlston SC real estate market in 2009!

1)KNOW YOUR CREDIT: Once a year you are entitled to get a free credit report, one from each of the three major credit bureaus. The government set up a website that people can get their reports. Don't fall for the "Free Reports" websites, they usually require you to sign up for some service or subscription to get your reports.

This site is the real deal. One note--they do charge to give you your scores, something like $7, but you will need these. The website is www.annualcreditreport.com.

It is best to go ahead and get them before year's end. Then, you have three free reports waiting for you in the new year so you can check progress.

2) CONTACT A REALTOR AND MORTGAGE LENDER: the next step is to contact a professional team that will go over your reports with you and translate them. The right team will work with you to devise a plan of action to get you on the fast track to success. This step sounds simple, but unfortunately their are less than professional Charleston SC realtors and mortgage lenders that will not take the time to help folks that need to work on their credit. If you aren't ready, able and willing to buy TODAY, they won't help you. Don't worjk with anyone that won't help you!

3)DON'T MAX OUT THE CREDIT CARDS THIS SEASON! 'Tis the season, however, don't get too carried away! Running up huge credit balances can put a major hurt on your credit--not to mention it could also hurt you in qualifying for a mortgage by negatively impacting your Debt-To-Income Ratio.

If you are looking to buy a home in Charleston SC in 2009, you want to avoid any big purchases--new car, house full of furniture, the entire right side of Best Buy, etc. All of these will hurt your ability to qualify.

4) START SAVING! Buying a home in Charleston SC today takes money, and not just the mortgage money. You need to worry about a down payment, as 100% loans have all but disappeared. There are also closing costs, although these can usually (but not always) be paid by the seller. Plus, it is a good idea to have some money saved away when buying a new home (especially if it is your first).

If you are thinking of buying a home in Charleston SC in 2009, now is a good time to start preparing yourself. Mortgage money is harder to come by these days in the Charleston SC real estate market, but that doesn't mean you can't buy a home in Charleston SC in 2009.

I have helpful e-newsletters that offer free information for first time homebuyers, and another for credit and credit repair. I also offer a special report about credit cards, "The Good, The Bad, The Ugly". Just drop me a line at jeffm@weichertpc.com and I will be happy to sign you up--they are free, with no obligation!

Be sure to check out my website for more helpful information and services for those looking to buy a home in Charleston SC in 2009. There is also more credit info.

Remember, it is important to choose the right team of professionals. Contact me today and I can help you get started to buying a home in Charleston SC. The services of a Charleston SC Realtor are FREE to all buyers!

Jeff McIlhenny is a licensed Realtor with Weichert Realtors Palmetto Coast in Mt Pleasnt SC and serves the entire Charleston SC real estate market. You can reach him at 843-452-2953 or jeffm@weichertpc.com.

With the Holiday season upon us, we are bombarded with ads screaming "Sale, Sale, Sale!". Retailers have everything on sale right now, from toasters to new cars. Shoppers are taking adavantage of sales that began right after Thanksgiving and will continue on through the New Year, not only because 'Tis the Season, but also because of the discounts.

The Charleston SC real estate market is also having a huge sale, although it doesn't have obnoxious ads screaming "Prices slashed, everything MUST GO!!!". Buyers know that the Charleston SC real estate market is a buyer's market. However, smart and savvy buyers recognize the "Perfect Storm" of opportunity.

Several factors contribute to make the Charleston SC real estate market more than just a simple buyer's market.

First, simple supply and demand economics--there are more homes for sale in Charleston SC than there are buyers looking to buy a home in Charleston SC. Inventory in the Charleston SC real estate market has remained at over 10,000 homes listed for sale in Charleston SC for 2008.

This benefits buyers in many ways. With so many houses listed for sale in Charleston SC, buyers have a wide selection of homes for sale to choose from. Since sellers have so much competition, if they are serious about selling, they are working extra hard to make their house look better than the competition. This means they are taking care of any and all repairs before putting their house on the market, remodeling/updating, and making sure their house has a lot of "curb appeal".

They are also offering several different concessions to attract those looking to buy a home in Charleston SC. Paying buyers closing costs and providing home warranties are pretty much standard in the current Charleston SC real estate market. But sellers are also offering other incentives, such as mortgage rate buydowns, leaving behind new flat screen tvs, even offering furniture store gift cards to help furnish the new home.

The second ingredient for this "Perfect Storm" is the prices. Prices have dropped to levels from nearly two years ago in much of the Charleston SC real estate market. Remember the old saying--"Buy low, sell high"? Well, now is the low!

The third ingredient is mortgage rates, Rates have dropped to the lowest levels EVER, and there is talk that the 30 year fixed rate could drop as low as 4.5% early in 2009! This not only means lower monthly payments, but can also offer buyers more house for their money.

Buying a home in Charleston SC makes sense if you are a first time home buyer. Buying almost always makes sense--why throw money away in rent and have nothing to show for it? Plus, in many instances, you can buy a home in Charleston SC and pay as much or less in mortgage payment than you will renting.

Move up buyers are in a prime position to take advantage of the current Charleston SC real estate market. Granted, the selling side of the Charleston SC real estate market is rough on sellers. However, whatever money you "lose" by selling your house is more than made up in the savings you get by buying the new home.

For example, say you live in a $200,000 home, but can only sell it for $190,000 in the current Charleston SC real estate market. However, the home you want to buy is a $400,000 home, yet because of the current Charleston SC real estate market you are able to purchase it at $380,00. You may have "lost" $10,000 selling your current home, but you purchased the new home for $20,000 less--essentially a $10,000 gain! (These are simple numbers showing a 5% market decline, but they illustrate a point---smart buyers recognize this opportunity and are taking advantage of it).

Many buyers are hesitant to buy for fear of what the future may hold. Remember, over the long haul, real estate appreciates at an average rate of 6%--sure there are ups and downs, but it averages 6%! You may not be able to buy a home in Charleston SC today and sell it for a huge profit in a year or so like you could a few years back, but real estate is still a solid investment. Would you rather throw away your hard eraned money over the next 3-4 years on rent, or have it invested and creating equity? Remember, the key to building wealth in America is real estate ownership.

2009 is presenting what could very well prove to be the best time in HISTORY to buy a home. Smart buyers realize that a number of factors have created the "Perfect Storm"of opportunity to buy a home in Charleston SC, and are preparing themselves to take advantage of this golden opportunity. Whether it is their first house, or their next house.

What steps should you take if you are thinking of buying a home in Charleston SC? There are several important steps. Getting familiar with your credit. Getting in touch with a Charleston SC realtor and a mortgage officer for Pre Approval. Getting in touch with the right professionals will help you get on track and avoid making mistakes so you can take advantage of this "Perfect Storm".

To take the easy, important first steps and get on track to take advantage of this golden opportunity, visit your resource to help you buy a home in Charleston SC.

Jeff McIlhennny is a licensed Realtor with Weichert Realtors Palmetto Coast and serves the entire Charleston SC real estate market. You can reach him directly at 843-452-2953 and jeffm@weichertpc.com.