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Archive for the 'First Time Homebuyers' Category

4 Important Tips for Repairing Your Credit

Credit repair does not have to be complex and can be boiled down two basic ideas: First, positive accounts will counteract the negative accounts. Second, time heals all credit. 

1. If you have positive accounts, keep them.  Do not close any accounts that have good payment histories as they will help balance the negative.  In addition, older, unused accounts with a zero balance may help improve your score.
2. If some of your positive accounts are credit cards, keep the balances below 50% by paying them down, or transfer part of the balance to another card so the balance does not exceed 50% of the limit.
3. If you do not have at least 3 accounts that report to the credit reporting agencies, open up more accounts.  With negative credit, opening new accounts may be difficult, so open a “secured” credit card.  With a “secured” credit card you will need to send the credit card company a specific amount of money, and then you will receive a credit card in that amount.  The new accounts will help you establish a positive credit history. 
4. WAIT.  While this may not seem like a plan packed with insider secrets, the fact of the matter is…time heals credit.  Remember, this is a marathon not a sprint.  If you maintain at least 3 accounts with perfect payments, your credit will progressively improve.

So, now you are 2 to 3 years in the future and what is the payoff for sticking to the plan?  Your credit will be good enough to buy a home again.  Don’t let the setback of a short sale or foreclosure make you feel hopeless.  You have options, and with the proper course of action, you may become a homeowner again much sooner than you thought possible.

If you need further information, or would like assistance with credit repair, contact me:

Scott Cooper

First Time Homebuyer Tax Credit – Update

Senate votes today to extend the first time homebuyer credit through April 30th, 2010.

Once the Senate votes, the House is expected to follow suit and then off to Obama’s desk for signature.

Here are the details of the new and improved credit:

1. The First Time Homebuyer Credit of $8,000 will be applicable through contracts in place by April 30, 2010. This allows for 60 days to close the transaction past this date.
2. In addition, repeat buyers — those who have lived in their previous home for 5 of the last 8 years — will qualify for a credit of $6,500 for purchases between December 1, 2009 and April 30, 2010.
3. Couples earning as much as $225,000 and individuals as much as $125,000 would qualify for the extension, an increase from $75,000 for individuals and $150,000 for couples.

Act quickly:

“The American people should understand this — and the affected industries — this is the last extension,” said Senator Johnny Isakson, a Georgia Republican who cosponsored the plan. “Tax credits like this only work by creating the sense of urgency to take advantage of them.” See the entire article.

http://www.bloomberg.com/apps/news?pid=20603037&sid=ai5ZNuz56Q4g

5 Tips to Getting Your Short Sale Offer Accepted

Why is it so competitive for buyers? The answer is that 68% of distress sales are receiving multiple offers. This is especially true in the affordable home range. Here are some strategies for your offer to make its way to the top of the pile.

1. Ask your lender to provide FULL loan approval and submit it with your offer. Your offer will have a huge advantage over others because it shows that financing will not be an issue in closing the transaction.
2. Submit your offer with Direct Lender approval. If your lender is not a direct lender, you can seek a preapproval from a direct lender, such as Bank of America, but you are under no obligation to use that lender.
3. Use Rebate Pricing to help pay for closing costs and minimize seller contribution. As a buyer you pay a slightly higher interest rate (.25 or so) and the lender credits additional commission back the buyer to assist with closing costs.
4. Ask your lender to contact the listing agent on each offer you submit. A good lender will communicate the highlights of you as the borrower and instill confidence about closing on time.
5. Communicate to the seller through your Realtor® that you are a committed buyer and will stay the course through the sometimes difficult transactions we are experiencing in this market.

If you have questions, or need a referral to a lender who can assist you with this high level of service, contact me and I will forward you on to the right person.