Tagged: lender

Credit issues to avoid before buying a home

Credit scores are maintained by three major credit bureaus (Experian, Equifax, and Transunion). Each uses varying formulas to determine a numerical credit score that represents your credit worthiness. The higher the score, the better your credit standing. Specific activities can have a detrimental impact on your score and will possibly cause you to get denied for a home mortgage. I hope the following advice for future Marlboro NJ home buyers on credit issues to avoid before buying a home is helpful to you.

Paying Bills Late

Late payments demonstrate poor credit behavior and subsequently reduce your score. The number of days you are late (30, 60, or 90+ days) and how many times you are late also matter. Delinquencies remain on your credit report for a very long time.

Collections

If you are behind on payments and a lender has given up on their own attempts to get payments from you, they may assign your debt to a collection company. This is reported to the credit bureaus. The information will show in your credit report even after you settle the debt.

Lender Charge-off

If a lender is unable to collect the complete balance due to them, they may “charge-off” the remaining amount. This may therefore occur if you entirely fail to pay or if you settle for for less than the total amount. Charge-offs appear on your credit report for seven years. New creditors will see this occurrence and assess how likely you are to continue with this offense.

Public Recordings

Bankruptcy, tax liens, judgments, foreclosures, and other legal actions are reported into public record and to credit bureaus. Regardless of whether you resolve these items, the initial submission will appear in your credit report. Particular items remain for seven to ten years while others (such as liens) never disappear. Therefore, it is beneficial not to let issues get this serious.

Advice For Future Marlboro NJ Home Buyers

If you have any of the credit issues to avoid before buying a home offered above, you may be marked as a high-risk borrower and it could lead to higher interest rates or could completely stop you from getting approved for a home loan. Practice conscientious behavior and it will save you time, money, and disappointment when it is time to purchase a home. This is good advice for future Marlboro NJ home buyers. Keep in mind that this represents only a few common credit mistakes. Consult a credit professional for guidance on your specific situation.

You may reach me, Sujatha Bhaskara, at Keller Williams Realty via phone at 732-536-9010 or email at sbhaskara@optonline.net with any questions. Nothing makes me happier than seeing a buyer purchase a new home. I am here to help! Never hesitate to contact me. To begin your home search in Marlboro, NJ, please visit Best in NJ Real Estate – Marlboro, NJ Homes for Sale.

Things you should know as a first time buyer

The home buying process can be a bit intimidating for first time buyers. The  first time home buyer information compiled for Marlboro and other New Jersey buyers  below can help. Properties are a big investment and buyers should educate themselves about the process and know what is involved so they can make informed decisions which will make their first time home buying experience a pleasant one.

Preparing to Buy

Find a Real Estate Consultant (Realtor®)

First step is to find  a real estate agent who is also a Realtor to help with your home purchase. A real estate agent is a Realtor when he or she becomes a member of the NATIONAL ASSOCIATION OF REALTORS(NAR). Membership in NAR means that Realtors adhere to the NAR code of ethics which is based on prefessionalism and protection of the public. Evaluate several Realtors and select the Realtor that best understands your needs. A good Realtor will guide you through the whole process and help you with all the resources you need to buy your new home. They can help you get in touch with local lenders and attorneys, identify appropriate properties, prepare contracts, and make the process easier for you. This is a crucial step in ensuring that your home search and purchase go smoothly. When you find the Realtor that understands your needs have that Realtor represent you through out the whole process. Some first time home buyers are under the misconception that going to the listing agents directly or dealing with different agents on different properties gets them the best possible deal – this is not true. You need to understand the real estate relationships in New Jersey and have a thorough understanding of who the agent represents.  Having a Realtor that understands your needs and works for you could make a huge difference in the home buying process.

Find a Local Lender and get Pre-approved

Interview several mortgage companies. Pick a lender that comes recommended by your Realtor or someone you know to avoid  hassles at closing time. Get pre-approved by a Lender with good reputation. Keep in mind that banks may provide different alternatives than mortgage brokers. Compare their services and fees to figure out the best program. This will help you understand the estimated up-front and recurring costs of home ownership. This will also restrict the types of homes you will be seeing whether it is in Marlboro or other areas of New Jersey.

During the Buying Process

Find the right home

Getting pre-approved will give you a good idea of the price range you should be looking at. Only visit homes within your price range. This avoids the heartbreak of wanting a property that you cannot purchase. Visiting homes can take reasonable time and energy, so sticking to your budget will also save valuable time. After the first iteration you may realize that the home that best fits your needs may be in the higher price bracket (still within your price range) than you had initially thought – this happens a lot of the time. Understand what the difference in home price means to you on a daily basis. Sometimes this could just mean giving up eating out once a month or giving up a cup of coffee a day. Looking at things this way will help you make the right decisions with regards to purchasing the right home for you and your family. Also remember that as a first time home buyer you want to be comfortable making those monthly mortgage payment and not be a slave to your house. So, it is important that you can comfortably afford your first home and be able to enjoy it for as long as you live in it. Always be honest and consult with you Realtor when needs or affordability changes so they can help you find the home that is right for you.

Contracts

Realtors can provide you with information on contracts and negotiating them, but they do not practice law. Evaluate using a local real estate attorney to interpret legal terms of a contract and add any necessary terms needed to protect you during your home purchase. Make sure that you completely understand the terms and obligations of contracts before signing them.

Inspections

Inspections are not intended for price re-negotiations. Also avoid negotiating obvious problems. Such strategies often fail and may cause you to waste the money spent on the inspection. Sellers have the option to repair issues, offer to compensate you for them, or  do nothing at all. Try to be fair with your requests and sellers will be more willing to accommodate them.

Walk-Thru Prior to Closing

Shortly before the closing, you will have an opportunity to view the property. Try and make this after the seller has removed their belongings. If any issues are found during the walk-thru, you should resolve them before completing the closing as completing the closing signifies your acceptance of the home and its current condition.

Property Closings

You must have proper identification for the closing. Closing costs and down payment funds must be certified. Also bring your checkbook for any last minute adjustments. After the closing, the property is officially yours! Do remember to transfer all utilities in your name as soon as you are the official owner of the property.

More First Time Home Buyer Information

The home real estate process will be much easier if you prepare in advance and keep the information above in mind. For additional  first time home buyer information, contact Sujatha Bhaskara at Keller Williams Realty by calling 732-319-1340 or by emailing sbhaskara@optonline.net.