What is a credit Score?

First of all if you do not know what your credit report looks like please visit www.annualcreditreport.com and obtain a copy of your credit report.  Of course they will give you your report only and not your scores.  You will have to pay for the scores however, they will send you a free copy of your existing current report and you can pull it once a year through this company.  You should know your scores and you should know how your creditors are reporting you to the 3 major bureaus.  Let’s talk about the 3 major bureaus.  There are 3 major credit bureaus in the United States who have relationships with millions of creditors across the country and this is why everyone has 3 scores because your creditors (such as your Mortgage, car, installment loans, visa, mastercard, etc…) are reporting you.  These millions of creditors will report how your paying your bills to these 3 major bureaus they also report your address, date of birth, etc….  The creditors that I mentioned above do not always report to all 3 bureaus sometimes they only report to two bureaus.  Who are the 3 credit bureaus?  Let’s talk about who these bureaus the first one is a company called TU which stands for Transunion, 2nd one is Equifax which you see all over the internet, and than there is Experian.  There will be times where say for example your visa company will only report to Equifax but your Toyota dealer that you have your car payment with will report to Transunion and your Mastercard reports to Experian.  As you notice the creditors are not reporting to all 3 bureaus just to 1 bureau.  When you are applying for a mortgage or any other line of credit you really should know what your credit report looks like and what your scores are I cannot stress that enough.  When you are applying for a mortgage or prequalifying for a mortgage the mortgage company will pull your credit report and take the middle of the 3 scores and rate you.  For example, if you have a high score of 789 a middle of 760 and a low of 723 the mortgage company lender, broker or banker will use the middle scores which is the 760 when you apply.  People ask all the time if their high score will get them a better mortgage interest rate and of course it will but remember there will be add on to your rate or the pricing of your mortgage interest rate if your scores are below 720.  That is why it is so important to know your credit score.

Planning is key to buying a home!

The key to buying a home is in the planning.  In order to make the entire home buying purchase successful you need to have a plan.  You should try to have very little bills as possible.  If you have credit cards pay them off or pay them down as much as you possibly can.  However, don’t close them out completely just pay them down or pay them off.  The least amount of debt that you have going into the home buying process the better.   In order to prequalify for a mortgage what you would need to do is take your “New” monthly principal, interest, real estate taxes and homeowners insurance and multiply that by your gross monthly income.  This number can not exceed 28%.  This would be called your housing expense ratio.  Another important number to know is your debt to income ratio.  What you need to do here is take your total monthly debts including mastercard, visa, car payments plus your new mortgage payment including principal, interest, real estate taxes and insurance and divide that by your gross monthly income.  This number cannot exceed 36%.  Most of the time the mortgage underwriter will allow this number to go up to 41% however, only if there are compensating factors such as a consistent and past history of overtime or bonuses.   Everyone’s situation is different and unique that’s why it is extremely important to go into the homebuying process with very little liabilities and lots of assets.

Tax Breaks

Most homeowners are keenly aware of the interest tax deduction on their home loan, but there are many other tax breaks which are often overlooked at income tax time. Pro-rated property taxes and mortgage interest in the year of sale are deductible. You will find these amounts listed on your closing settlement statement. If you paid off your mortgage and had to pay a pre-payment penalty, it qualifies as tax deductible interest. If you paid an “acquisition mortgage loan fee” on a home loan, this fee can be deducted as itemized interest. Home improvement loan fees are also deductible. Any remaining loan fees from re-financed or paid-off mortgages are fully deductible at the time of the mortgage payoff.
Certain items don’t qualify as deductions, but can be added to the cost basis of your home, such as transfer taxes, recording and title fees, and special local property tax assessments for new sidewalks, streets, or sewers.
Don’t be intimidated by the tax code! A little research or consultation with an expert can help you maximize your real estate tax advantages. For more advice, tools and tips visit: http://www.ratesarehot.com

Broom Clean

Most purchase agreements contain language that requires a home to be free of trash and debris and “broom clean” at closing. While this language is not precise, the general idea is that you should convey a clean house to your buyers, one in the same condition that you hope to find your new home.

When the movers leave with your furniture, you may even want to consider hiring a professional cleaning service to thoroughly clean the home. It is crucial to leave your house as pristine as possible for the new owners. This includes getting rid of any leftover junk in the storage spaces. When the buyers show up for their final walk-through, they will feel much better about finalizing the sale if everything sparkles. This will set up a positive mood for completing the transaction and help to minimize any disputes at the closing.

Maximize Your Homes Appeal

Sometimes a real estate agent will walk into a home that is basically attractive, yet communicates the feeling that something is lacking. Then the agent notices that all of the drapes are closed, interior lights are off and there is a lot of overgrown shrubbery blocking the sunlight that might otherwise pour through the windows.

A dark house is not as appealing to most buyers as one that is flooded with light. As a part of your preparations to market your home, try to maximize the light in your home. Make sure that all the windows are clean and the drapes are open when the house is being shown. A fresh coat of light paint can do a lot to brighten up the interior. If your house has very dark paneling, and you do not wish to repaint the walls, you may want to consider adding additional lamps. Your real estate agent may be able to provide other simple and cost-effective ideas about how to maximize your home’s appeal. for more tools, tips and prequalification advice, visit: http://www.ratesarehot.com

Yard Beautiful

Many people wait until they are about to sell their home before they put energy and attention into improving the landscaping. Then in a desperate attempt to create instant curb appeal, they call in a professional landscaper and spend a lot of money making the yard beautiful for the next owners to enjoy.

Why wait until you are ready to move to enhance your surroundings? Even if you don’t want to take on a major project, you can plant a few bushes and bulbs each year. You can get plants that bloom at different times of the year, many of which don’t need a tremendous amount of care. There are several benefits to this approach. You will be able to enjoy your improvements yourself, and you will profit more from your sale if you haven’t invested a lot of money in your yard right before the transaction. Well-landscaped lawns tend to increase the real estate values in the whole neighborhood, and can result in a more rapid increase in the equity you have in your home!

For more tools and tips visit: http://www.ratesarehot.com where anyone can prequalify themselves for a mortgageloan.

“Houses and Pets”

Houses and Pets
Many home owners are animal lovers and have cherished pets that are part of the family but you can’t afford having potential buyer’s fingers or ankles nipped by furry creatures during a showing. You have opened the front door to the home only to have a purebred Persian kitten scoot toward the nearest busy street.

If you have pets and are going to put your house on the market, be sure to work out the showing arrangements carefully. It is rare for pets to pose significant problems, but big dogs can be menacing. Buyers or agents may be allergic or even a little phobic about dogs or cats. For more tools, tips advice and to get prequalified for a mortgage visit: http://www.ratesarehot.com

It is difficult to get a buyer excited about your home if he or she is sneezing continuously or unwilling to cross the threshold because your dog is barking away intruders. If your agent knows there might be a problem, they can arrange ahead of time for you to walk the dog, vacuum the cat dander or do whatever is necessary to make sure that the showing goes smoothly.

When selling your home “maximize the lighting”

Brighter is Better
Sometimes a real estate agent will walk into a home that is basically attractive, yet communicates the feeling that something is lacking. Then the agent notices that all of the drapes are closed, interior lights are off and there is a lot of overgrown shrubbery blocking the sunlight that might otherwise pour through the windows.

A dark house is not as appealing to most buyers as one that is flooded with light. As a part of your preparations to market your home, try to maximize the light in your home. Make sure that all the windows are clean and the drapes are open when the house is being shown. A fresh coat of light paint can do a lot to brighten up the interior. If your house has very dark paneling, and you do not wish to repaint the walls, you may want to consider adding additional lamps. Your real estate agent may be able to provide other simple and cost-effective ideas about how to maximize your home’s appeal. To get pre-qualified for free for a new home visit: http://www.ratesarehot.com

Make the kitchen in your home a “real asset”

There’s no doubt about it–the kitchen is one of the most important rooms in the whole house for many prospective buyers. Smart sellers will take a close look at how they can make their kitchen a real asset when it is time to sell.

Your kitchen doesn’t need to be state-of-the-art to be attractive. The first step toward enhancing your kitchen’s appeal is a thorough cleaning. This includes the walls, cabinets (inside and out), floors, and appliances. Keep the counter tops as clear as possible of small appliances and gadgets. Consider low-cost improvements which can make a big difference, such as a coat of paint, fresh wallpaper, or new floor covering. Be sure to keep the kitchen sparkling when the house is being shown. This means no dirty dishes in the sink or moldy cucumbers in the refrigerator. This extra effort will pay great dividends! To get pre-qualified for a home loan go to: http://www.ratesarehot.com! It’s quick, free and Easy!

Use your imagination when buying a home!

Houses that are spotlessly clean and tastefully decorated tend to sell quickly, and for top dollar. There can be substantial savings for home-buyers who are willing to purchase a property that needs cosmetic improvements.

When you look at a house that needs work, try to imagine it with fresh paint, refinished floors and new carpet. Consider the attractive features of the home. Would it get more sunlight if the draperies were opened and the windows cleaned? Does the back yard have potential?

Try to distinguish between the cosmetic condition of the house and the state of its structure and major systems. Some fixer-uppers need a lot of professional attention from electricians, plumbers and other expensive professionals, while others are true bargains that can be transformed with a little elbow grease, a paint brush, and your imagination. To aid you in the prequalify for a home loan process and for the best mortgage rates go to: http://www.ratesarehot.com