How to buy a home in Olympia for zero down (or dam close).
To buy a home in the
When they started out over a half century ago they were not well known but were instrumental to credit card companies for rating risk. The rating system is now used for insurance, mortgages, housing (renting) and employment. It has only been over the past 15 years that it replaced human judgment in the acceptance for a home loan. Before that it was a tool and not the determining factor.
Anyone with a fear of big brother watching can rest assure that it was not the government that put this in place. It was the banks and lenders that instituted this system to protect themselves. If you can understand how the system works you can use it to your advantage.
To get a home loan you have to have established credit. Consumer credit like a car loan, student loan, or revolving charge account that tracks your willingness to repay the debt is what the lender is looking for. All this would be reported to Equifax, Experian, and TransUnion so that it is calculated into you FICO score. That loan from mom and dad isn’t going to cut it.
The other things that end up in that score are judgments and leans. You could say that all things financial end up in the score and that will determine how much you pay. The lower the score the more risk you appear to be to the lender.
Now FICO does not tell you how to improve your score. Some of it is cured with time. The longer it has been since the transgression the smaller the affect on your score. So, a 30 day late payment on a credit card last month would have more weight given to it than a 90 day late payment 4 years ago. Recently a client, working with a lender that I introduced them to, purchased a home. They wanted to clean up their credit but after conferring with the lender found it would have a negative impact on their score and make it more difficult to get the a zero down loan. The best advice I can give is to talk to a qualified lender that takes your whole home buying plan in to account.
To give you the most options for financing, the stronger your credit score the better off you’ll be. For a free report how to buy zero down go to www.lovelyhomesolympia.com .
Posted at 05:03PM Aug 05, 2010 by Larry Dickson in Real Estate | Comments[0]
Experts say it is a good time to buy Real Estate
Ron Insana, author of "How to Make a Fortune From the Biggest Bailout In U.S. History" was recently on the Today program and this is what he had to say.
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A key to understanding who is entitled to the $8,000 Tax credit for buying a home is the definition of a “First Time Home Buyer.” Any one who has not owner a home in the past 3 years or some one who has never truly owned a home, in the eyes of the tax code, is a First Time Home Buyer. Ask a CPA or tax professional for further clarification.
This is one of the times, or should I say the only time, that home prices have pulled back, interest rates are at historic lows and the government is giving money to home buyers. The catch is that unless you are in line to buy before April 30 that $8,000 tax incentive will disappear. The leading indicators show the recovery has started and would give the congress less reason to extend this one more time. Don’t miss this golden opportunity.
Call and set up a free no obligation strategy session to plan your next move. 360-464-4404
Posted at 02:21PM Jan 11, 2010 by Larry Dickson in General | Comments[0]
