Camille Taylor : Real Estate Transaction

My credit score is what?....How did they come up with that ...?

Camille Taylor — Wed, 01 Feb 2012 22:12:00 GMT

A credit score is a snapshot of a person's individual credit risk at at particular point in time. There are about five main criteria that is considered when your credit is being evaluated such as: Payment History, Amounts Owed, Length of Credit History, New Credit, Types of Credit Used.

Scores are calculated with different percentage points given to each group, which are only approximates and vary per person.

For instance...
Payment history: 35%, Amounts Owed: 30%, Length of Credit History:15%, New Credit:10%, Types of Credit in Use: 10%

The factors, and the importance of each one, depends on the overall information on file. Multiple factors are evaluated on each category or tradeline, including the type of account, revolving (R), installment (I), open (O), mortgage (M).

The timing of negative information is important. A recent thirty day delinquency can lower a score more than a charge-off two years before. All updates and changes to an individual's credit file are considered when calculating the next credit score.

Inquires are also an indicator of credit risk. Inquiries have a small impact on credit scores, although the more inquiries that are on a file, the more likely that a borrower may not have paid as agreed. The stronger indicators of future performance such as past payment history and use of credit can offset inquiries, so if you have a good payment history and are responsible with your credit it can positively affect your score, even if you have multiple inquiries.

An important factor to remember when buying a home or auto is that multiple inquiries that can occur as a result of shopping for rates on an auto or home loan are "bundled" to avoid negative impact. This allows you to "shop" for the best mortgage product and rate, just like you shop for a home...the best one that meets your needs and financial situation!

A FICO score will ignore all auto or mortgage related inquiries that occur in the previous thirty day (30) period. Prior to that buffer period, the scoring also notes when earlier inquiries were made and counts back fourteen (14) days from each one. In any fourteen (14) day segment scoring counts all auto or mortgage inquires as just one inquiry.

FICO scores are calculated on the last twelve (12) months, although inquiries form the last two years will show on a credit report.

Some advice to improve your score...

Pay your bills on time, keep balances low on credit cards and other revolving credit, pay off debt rather than move it around, apply for and open new credit accounts only as needed.

If you want more information on obtaining a mortgage qualificaton we can connect you with various lenders that can discuss the mortgage qualification process with you at length. Call or email us for further details.

Camille Taylor

Your Neighborhood Real Estate Broker with World Wide Connections!

So you want to rent your home ...the tenant has a dog...what is the first thing you need to do?

Camille Taylor — Tue, 24 Jan 2012 00:17:00 GMT

Did you know that not all dogs are covered under your Landlord policy? In fact, many major insurance carriers limit coverage to specific breeds of dogs.

The prime "no-insure" dog targets are large dogs that tend to inflict a lot of damage. Other concerns that impact an insurance company's willingness to cover a breed include the frequency of dog bites for the breed, the breed's reputation, as well as research conducted by the Centers for Disease Control and individual insurance companies. Many of these dogs are fine with their owner and owner's family, but are territorial and can become aggressive if someone enters their home's boundaries/territory, such as a neighborhood child. If the child comes into the yard the dog may react negatively toward the "intruder".

So, the first item you need to check out on the rental application is the type of breed the potential tenant's dog is and check with your insurance carrier. Each carrier has different requirements. For instance some will allow a German Shepherd and others will not.

There are a number of breeds that could raise your insurance or exempt you from obtaining insurance. I have listed some of them below.

Akita, Alaskan Malamute,Chow Chow, Doberman Pinscher, Pit Bull, Rottweiller,Siberian Huskey, Stafordshire Bull Terrier, Wolf Hybrid,Cane Corso, Argentinian Mastiff.

Also, be careful when you advertise, will consider small dog, as you may be setting yourself up for a problem.

If you haven't rented your home before, use a reputable and knowledgeable Real Estate Brokerage firm that has a Rental Deparment. They are better equipped to help you understand the rental process.

So you want to get a real estate bargain...

Camille Taylor — Wed, 16 Nov 2011 22:31:00 GMT

There are a lot of opportunities in the current real estate market here in Southeastern Connecticut...

With the current interest rates for thirty year fixed mortgages between 3% and 4% you have a lot more buying power, therefore the ability to buy a larger or higher valued home with a lower interest rate for the same monthly mortgage amount. You can also have more buying power with a home that is in a compromised financial situation, such as a short sale or foreclosure.

A home that is in a short sale or foreclosure situation may offer you more buying power depending on the condition of the home.

Many homes which are in a short sale situation can offer you a very good value, especially if you are looking to buy as a first time homeowner or if you are looking to invest. A home in a short sale situation often has the homeowner still living in the home, so the home is occupied and usually being cared for, and in the winter, heated.

A short sale is a home that the owner still owns, but the homeowner may be delinquent in their mortgage payments. If that is the case the lender must approve the sale/offer/purchase price of the home. A homeowner does not have to be late in their payments for a short sale situation to occur. A homeowner could be in a short sale situation because the value of their home is currently worth less than the amount of money they have invested in it, i.e their mortgage note.

A home that is REO, Real Estate Owned, is a bank owned property that has been foreclosed on and taken back by the lender.

A Foreclosure action is taken when a homeowner has stopped paying the mortgage for a specific period of time. They are usually vacant, and here in Connectiuct, often go through winters vacant with the heating/plumbing system in a winterized state. (Winterized means that the hearting pipe have been drained and all water supply is turned off to prevent damage to the heating system by pipes freezing, etc. when there is no heat source in the home). Oftentimes, though, heating pipes have already suffered damage because winterization was not done in time to prevent frozen pipes.

In essence you still need to have a licensed home inspector evaluate the homes condition and systems and to see if it is financially feasible for you to go forward with the purchase of the home.

These homes are not for everyone, but they are everywhere and the opportunities are worth pursuing.

If you are considering buying a short sale, take the time to speak to a Realtor who is specialized in Short sales and foreclosures. It is also a good idea to obtain legal advice from a Real Estate attorney and accountant.

Camille Taylor, SFR, CRB, GRI

So you want to Buy A Home- 69% of American Public surveyed believe it is the Right Time to Buy!

Camille Taylor — Fri, 19 Aug 2011 13:57:00 GMT

Are you still not sure whether to move forward with buying that home you have had an eye on? Are you still picking up free Real Estate magazines and flipping through the pages in your spare time? Are you spending your leisure time in front of the computer, checking sites like ERA.com, ERATaylorRealty.com, Realtor.com, or any of the many real estate sites to see what is "out there"?

If you are interested to know what your fellow American think about homeownership today, read on...

On August 15, 2011, Fannie Mae released their National Housing Survey for the second quarter of 2011. They survey the American public on a multitude of questions concerning today’s housing market. Each quarter, we like to pull out some of the findings we deem most interesting. Here they are for the most recent report:

Most Important Reasons to Buy a Home

When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. However, the study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:

It means having a good place to raise children and provide them with a good education
You have a physical structure where you and your family feel safe
It allows you to have more space for your family
It gives you control of what you do with your living space (renovations and updates)

The Home as an Investment

Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what they said on this issue:

65% of the general population (and 67% of homeowners) believe that homeownership is a ‘safe’ investment.
56% believe that homeownership has more potential as an investment than any other traditional asset class.
69% think that now is a good time to buy a home (this number has increased in each of the last two quarters)

Rent vs. Buy

We are always interested in the difference people see in renting vs. owning.

63% of renters have aspirations to someday own their own home
72% of renters think that owning is superior to renting
95% of homeowners see homeownership as a positive experience (4% see it as a negative experience) while 82% of renters see renting as a positive experience (17% see it as a negative experience)
96% of homeowners live in a single family residence while 46% of renters live in a multi-unit building

Bottom Line

Even in difficult times, Americans still realize the value of homeownership.

The decision to buy a home is a personal one. There is a lot that goes into making that step. If you have any questions about the process involved, or the market conditions, or you just need to talk to someone who knows, do not hesitate to give us a call or email us at REquestions@erataylor.com. We are always there for you!

Statistics from National Housing Survey compiled by The KCM Crew on August 15, 2011.

Mortgage Compliance Beware!

Benjamin Morris — Thu, 23 Jun 2011 22:05:00 GMT

Your almost done with your Real Estate Transaction, just finishing the final paperwork and then BAM! An issue arises right after your home inspection. The paint on the home you are buying or selling is "defective", whatever that means. Instantly, one of the largest transactions you'll make in your life, which was going smoothly until now, does not comply with the strict FHA & VA Mortgage Requirements. It is the FHA/VA appraiser's subjective take on what will classify as "defective" paint. It is not just peeling paint, which is easy to define, it is "defective".

This nightmare can be avoided or at least be prepared for if you are selling your home by making sure your Listing Agent informs you ahead of time which property condition issues that a potential buyer who is obtaining a VA or FHA loan needs to adhere to. It is also a good idea to have the Listing Agent informs any potential Buyer's agent via the MLS (Multiple Listing System) sheet that "this house may not qualify for VA or FHA loans" .

If you as the seller are able to address and correct the peeling paint, i.e have it repainted or sided, it is better for you to do so before listing it or during the initial listing period because most loans in today's market that are affordable and easier to obtain, are FHA/ VA . Besides, it increases abiloiuty to be sold quicker for a higher price.

If you are a Buyer, make sure that your agent is familiar with VA and FHA requirements and informs you of what they are prior to showing you any homes so that if you are unable to remedy any of the paint issues, you will not put money out for home inspections, appraisal fees,etc when more than likely the home will not pass a VA/ FHA appraisal without conditions to remedy the defective paint. There are other property condition requirements like condition of roof, and safety issues like proper hand rails that you also need to be aware of.

If you need to know more information feel free to email me. camille.taylor@erataylor.com Camille Taylor, Broker/Owner of ERA Taylor Realty Group