Erika Sullivan Realty Group



Posted by Erika Sullivan Realty Group on 7/22/2018

Credit plays an important role in your ability to secure a home loan and to qualify for a low-interest mortgage. However, many first-time homebuyers arenít arenít sure about the exact relationship between credit scores and mortgages.

This doesnít come as much of a surprise considering the many factors that go into your credit score and into your lenderís decision to approve you for a mortgage. So, in this article, weíre going to cover three commonly asked questions that homebuyers have about credit scores and how theyíre used by mortgage lenders to determine your eligibility for a home loan.

Will my credit score go down if I check my credit report?

If youíre thinking of buying a home in the near future, one of the first things youíll want to do is check your credit. However, if youíve heard that some credit inquiries briefly lower your credit score you might be hesitant to find out.


This common misconception stems from the fact that taking out new lines of credit results in a temporary decrease in your credit score. The difference between checking your credit and a credit inquiry is simple: a credit check you can access for free online through a service like Credit Karma, whereas a credit inquiry is performed by a lender or creditor with whom youíve applied for credit.

In short, checking your credit score online wonít affect your score. In fact, the major credit bureaus are required to allow you to check your credit for free once per year.

Can I get a loan with low credit?

Increasing your credit score is a lengthy process that requires careful financial management. Many people who have had difficulties paying off bills, loans, and credit cards will have to rebuild their credit. Or, if youíre young and donít have a diverse history of credit payments, youíll be starting from scratch to build your score.

If youíre hoping to get an FHA (first-time homeowner loan), the lowest your score can be is 580. However, that doesnít mean you should always take a loan with a low credit score. When you donít have a good credit history, lenders will seek other ways to guarantees their investment. This comes in the form of higher interest rates or PMI (private mortgage insurance) which youíll have to pay on top of your monthly home insurance and mortgage payments.

Will applying for a home loan affect my credit?

Simply stated, yes. However, applying for a loan or get preapproved is considered a credit inquiry and wonít leave any lasting negative on your credit score. Making several inquiries within a short period of time, however, can significantly lower your score, so choose your inquiries wisely. And, be sure to monitor your credit score on a monthly basis so you have an idea of where you stand along the road to applying for a home loan.




Tags: Buying a home   FAQ   homebuyers  
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Posted by Erika Sullivan Realty Group on 7/15/2018

For homebuyers, it is paramount to remain patient as you explore the real estate market. At the same time, it is important to understand that the real estate market moves quickly. Thus, if you wait too long to submit an offer on a house, you could miss out on your dream home.

Lucky for you, it is easy to prepare to buy a house in a fast-paced real estate market Ė here are three tips to ensure that you can do just that.

1. Make a Competitive Offer

If you find a house that you like, don't wait to submit an offer on it. Instead, submit a competitive offer from the get-go, and you may be able to secure your ideal home immediately.

An informed homebuyer is a smart shopper who understands what a "competitive" offer means for both a homebuyer and home seller. Ultimately, a homebuyer who assesses the condition of a property and the current state of the real estate market should have no trouble submitting a competitive proposal.

2. Track the Housing Market Closely

As a homebuyer, you'll want to stay up to date on new homes as they hit the real estate market. By doing so, you'll be better equipped than other homebuyers to check out these properties and find houses that match your budget and lifestyle perfectly.

New homes become available daily, so be sure to track properties online. Also, if you understand exactly what you want from a residence, you can narrow your search and improve your chances of finding a home that suits your needs.

3. Work with a Fast-Paced Real Estate Agent

When it comes to purchasing a house in a fast-paced real estate market, there is no need to leave anything to chance. Fortunately, you can hire a real estate agent who can help you discover your dream home quickly and effortlessly.

A fast-paced real estate agent will go above and beyond the call of duty to assist you. As such, this real estate professional will set up home showings and keep you informed about new properties as they become available. Plus, your real estate agent is happy to negotiate with home sellers on your behalf and ensure that you can purchase your dream home at a price that matches your budget.

Perhaps best of all, even a fast-paced real estate agent will slow down the homebuying process as needed. If you ever have concerns or questions about buying a house, your real estate agent will respond to your queries without delay.

Hiring a trusted real estate agent can make a world of difference for homebuyers in a fast-paced housing market. In fact, with a top-notch real estate agent at your disposal, you can browse the housing market closely and accelerate the process of finding your dream house.

Although the real estate market may fluctuate constantly, homebuyers who plan ahead will be able to simplify the process of acquiring exceptional properties. And if you use the aforementioned homebuying tips to your advantage, you can boost your chances of obtaining your dream home in a fast-paced housing market.




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Posted by Erika Sullivan Realty Group on 5/27/2018

A home showing represents a great opportunity for prospective homebuyers, as it enables homebuyers to get an up-close look at a residence and determine whether to make an offer on it. As such, it is important to prep for a home showing; otherwise, a homebuyer could miss out on a golden opportunity to find the right residence at the right time. So what should you look for during a home showing? Here are three factors that every homebuyer needs to consider: 1. A Home's Exterior Although the home you're visiting caught your eye as you drove past it in your car, you may notice problems when you take a closer look at the residence's exterior. For instance, cracks or chips in the driveway or along the front steps may need to be repaired and may impact the amount that you offer for a residence Ė or whether you decide to submit an offer at all. Of course, no home showing would be complete without checking out the condition of the house's siding and roof, either. If you're uncertain about the condition of these areas, be sure to ask the home seller's real estate agent for more information. By doing so, you can make a more informed decision about whether a particular residence is right for you. 2. A Home's Heating and Cooling System Ideally, you'll want a house that stays warm in winter and cool in summer. But in many cases, an old heating or cooling system may prevent a homeowner from maintaining comfortable temperatures inside a house at all times. Ask about the age of a heating and cooling system during a home showing. This will allow you to find out if this system will need to be replaced or repaired in the immediate future. Find out about the efficiency rating of a house's heating and cooling system as well. Remember, the higher a heating or cooling system's efficiency rating, the more this unit will be able to save a homeowner on his or her monthly energy costs. And if you find a home that boasts a high-efficiency heating and cooling system, you may be able to save money on your energy bills down the line. 3. A Home's Doors and Windows Do a home's doors and windows open freely? If not, they may be in need of serious repair, which ultimately could put a major dent in your wallet if you decide to purchase a particular residence. The costs to repair or replace defective doors and windows can add up quickly. Thus, you'll want to ensure that all of a house's doors and windows are in great condition before you purchase a residence, and you can learn more about their condition during a home showing. When it comes to finding the right house, you'll always want to consult with a reliable real estate agent, too. Your real estate agent is readily available to assist you in any way possible, and he or she will be able to help you discover a top-notch house that meets all of your needs. Spend some time getting ready for home showings, and you'll be prepared to find an excellent home that you can enjoy for years to come.





Posted by Erika Sullivan Realty Group on 4/22/2018

Going through the process of applying for a mortgage only for your application to get denied can be a frustrating and confusing time. If youíre hoping to buy your own home in the near future, itís vital to secure financing or you risk missing out on a home that you may have been depending on getting.

In todayís post, weíre going to talk about what happens when your mortgage application is denied and what you can do to fix the problem as quickly as possible.

Determine the Cause of Denial

If your application is denied, priority number one needs to be to understand what happened. Since lenders are required to provide denied applicants with a letter explaining why they were denied, this just means reading the letter and making sure you understand all of the reasons listed.

There are a few common reasons that an application may be denied. Some of them are simple fixes, while others might require time and effort on your part that may delay your house hunt for a while.

One issue that many mortgage applicants have to handle is when their employer wonít provide proof of income to a mortgage lender. Since income verification is vital to the mortgage application process, itís important to make sure you can provide all of your income details from the last 2 years to the lender.

Sometimes there are issues with contacting employers, such as when your former place of employment goes out of business. Or, you may be a freelance or contract worker with atypical forms of income verification. Regardless, make sure you are clear with your loan officer regarding your employment history.

Other common causes for denial of an application include problems with your down payment (such as not meeting the required down payment amount) and credit history issues, such as having a lower score than you thought.

Credit score lower than expected

Itís not uncommon for a lender to run a credit check and come up with a score that is lower than you anticipated. Since scores change on a monthly basis, and since there are differences between the scores provided by the three major credit bureaus, you might find that your lender found a score slightly lower than what thought.

If the score is drastically different, however, this could be a sign of two things. First, make sure that you havenít recently made multiple credit inquiries (such as applying to several lenders who perform credit checks) or by opening new credit cards or loans. These inquiries temporarily lower your credit score.

If you havenít recently made any inquiries (other than applying for a mortgage with your lender of choice), then itís a good idea to get a detailed credit report and scrutinize it for errors. Inaccuracies on your credit report can be disputed and resolved and can give your score the boost you need to be competitive on your mortgage application.  

Choosing a different lender

While most lenders use similar criteria in determining your borrowing eligibility, there are some differences between lenders.

For example, some lenders might take on more risk by lending to someone with a lower credit score. However, they will also likely require a higher interest rate in exchange for the added risk theyíve acquired.


Now that you know your options for what to do when an application is denied, youíre well-equipped to start tackling the issue and getting back on track to becoming a homeowner.





Posted by Erika Sullivan Realty Group on 4/15/2018

A home showing represents a learning opportunity for a homebuyer. If you know how to plan ahead for a home showing, you can optimize the value of this opportunity.

Ultimately, preparing for a home showing can be simple Ė here are three tips to help you get ready for any home showing, at any time.

1. Evaluate a Home Listing Closely

A home listing enables you to learn about a house's age and condition. It also may include pictures that highlight a home's rooms and features. Thus, if you assess a home listing closely, you'll be better equipped than ever before to determine whether a house may be right for you.

As you examine a home listing, it generally is a good idea to think about additional questions that you may have about a house. If you craft a list of questions prior to a home showing, you'll be ready to get the answers that you need to make an informed decision about a residence.

2. Make a Home Showing Checklist

A home showing allows you to examine a residence both inside and out. As such, it may be beneficial to create a home showing checklist that ensures you remember to analyze all aspects of a house.

Be sure to include assessments of an attic, basement and other house areas in your checklist. In addition, it may be helpful to consider checking out a home's proximity to parks, schools and other landmarks. Because the more information that you obtain during a home showing, the more likely it becomes that you can make the best-possible choice regarding a residence.

3. Consult with a Real Estate Agent

If you plan to attend a home showing, hiring a real estate agent is essential. A real estate agent can help you prep for a home showing and ensure you can review all aspects of a residence in no time at all.

Prior to a home showing, a real estate agent will meet with you and learn about your homebuying goals. Next, this housing market professional will offer expert recommendations to guarantee that you are fully prepared to attend a home showing.

Let's not forget about the comprehensive support that a real estate agent can provide throughout the homebuying journey, either. A real estate agent will keep you up to date about new houses that become available in your area and help you set up home showings. And if you want to submit an offer on a residence, a real estate agent will help you put together a competitive homebuying proposal.

For those who want to explore the housing market, attending home showings is crucial. If you're able to make the most of a home showing, you can boost your chances of enjoying a seamless homebuying experience.

Thanks to the aforementioned tips, any homebuyer can get ready for a home showing. Take advantage of these tips, and you can approach a home showing with the confidence that you need to succeed.




Tags: Buying a home   showing  
Categories: Uncategorized  




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