5 Factors That Decide Your Credit Score

1. PAYMENT HISTORY Do you pay your debts on time?

2. AMOUNT OF DEBT Less is best.

3. CREDIT HISTORY The longer the better.

4. AMOUNT OF NEW CREDIT New credit is considered more risky!

5. TYPES OF CREDIT i.e. installment loans, credit cards, and a mortgage.

Credit scores range between 200 and 800. Scores above 640 are considered desirable for obtaining a mortgage. For more on evaluating and understanding your credit score, go to www.myfico.com.

CREDIT DO’S

• Pay your mortgage or rent payments on time

• Stay current on all outstanding accounts

• Continue working for the same employer

• Stay with your current insurance company

• Notify your Lender immediately if any situation arises that could possibly affect your income, assets, or credit

CREDIT DON’TS

• Don’t switch bank accounts

• Don’t transfer balances between accounts

• Don’t increase the balance of any credit cards

• Don’t consolidate debt, including credit card debt

• Don’t close any accounts, including credit card accounts

Loan Application Checklist

• Last 30 days paystub

• Copy of last 2 years’ W-2s and tax returns

• Most recent 2 month’s checking and savings account statements

• Name of homeowner’s insurance company

• Letter explaining derogatory credit or bankruptcy (if applicable)

• Copy of Divorce Decree and Property Settlement (if applicable)

• Don’t apply for ANY credit (new vehicle, furniture, appliances, etc)

• Don’t change your job, employer, the way you are paid, or become self-employed

• Don’t pay off charge-off or collection accounts before consulting with your lender

• Don’t make large deposits without the ability to document the source of the funds

FIND A REALTOR® to represent your interests in the transaction. Communication is key. We will be a team, when you have a need or concern please tell me. I will assist you in purchasing a home: for sale by owner, marketed by a realty company, new construction...

FULL LOAN APPROVAL from a mortgage banker. Most sellers are requiring a pre-approval letter from a lender before looking at an offer on their home. Getting fully approved puts you ahead of the game. (Have a copy emailed to me.) Your loan officer will let you know how much you qualify for and can give you a good idea of payments, closing costs, and other expenses you can expect along the way.

LET’S GO SHOPPING! Now that you know how much you want to spend, we can work together to find the perfect home for you. Don’t forget your checkbook! (Yes, you will need it for earnest money.

MAKING AN OFFER? Once you have found a home you love you will want to put an offer in. I will look up the comps in the area and disclosure for the property. Then we will want to sit down and discuss the details of your offer: purchase price, financing option or cash, earnest money amount, close date, additional items to be left on premise, things to be removed, home warranty, contingencies, any other requirements or items to be paid by the seller.

EARNEST MONEY is a check or money order that is given to secure the property. It is only cashed once an agreement has been reached by both parties. It is held in an escrow account until closing. At closing it will go towards to purchase of the home. You can lose this earnest money if you do something outside of the confines of the contract so remember when your Realtor, the closer or lender ask you for information or decisions, you need to respond as quickly as possible. If there is a reason you can’t respond, then you need to discuss with us so we can help or do an extension if necessary/doable to protect you.

NEGOTIATIONS Once the offer is submitted, the seller can do one of three things: accept the offer as is, counter offer, or reject the offer. Here is where I come in handy...