|Posted on July 9, 2017 at 8:20 PM||comments (2)|
Moving into a home you've just bought is exciting—and sometimes exasperating. That's because, although you might love your new place, you don't know it all that well—which means that sooner or later, you're bound to end up in a situation where you're floundering cluelessly with the Circuit breaker, or petting a neighbor's seemingly adorable Pomeranian who nearly nips off a finger. Home, sweet home, right?
Yet you'd be surprised by how many of these unfortunate surprises home buyers can circumvent merely by asking the person who sold them the home some pointed questions before moving in. Sure, you'll also be soaking up intel from the seller's disclosure agreement, the home inspector who gave a thumbs-up to the place, and eventually even the neighbors. But truth be told, there's nothing better than hearing about a home straight from someone who's been living there for umpteen years. So go ahead and ask!
Just keep in mind that some sellers might feel tight-lipped if they think your questions might jeopardize the sale. As such, many of these questions are best asked near the end of the process—like during your walk-through or at closing.
|Posted on June 26, 2017 at 8:50 PM||comments (0)|
If you have bad credit and fear you’ll face a loan denial when applying for a mortgage, don’t worry. You can get a mortgage with a low credit score. It’ll just come at a higher cost, and you’ll likely need to provide an explanation of your low credit score.
Fixing or Preventing Bad Credit
Having bad credit is not the end of the world. It still may be possible for lenders to give you a loan, provided your credit score is not too low. But be aware that you may pay a higher interest rate and more fees since you are more likely to default (fail to pay the loan back). So it’s in your best interest to improve your credit score in order to get a lower interest rate, which can save you thousands in the long run.
Mortgage lenders look at the “age,” dollar amount, and payment history of your different credit lines. That means opening accounts frequently, running up your balances, and paying on time or not at all can impact your credit score negatively. Just changing one of these components of your spending behavior can positively affect your credit score.
There are ways you can improve your credit score, such as paying down your debts, paying your bills on time, and disputing possible errors on your credit report. But on the flip side, there are ways you can also hurt your score, so remember:
DON’T close an account to remove it from your report (it doesn’t work).
DON’T open too many credit accounts in a short period of time.
DON’T take too long to shop around for interest rates. Lenders must pull your credit report every time you apply for credit. If you are shopping around with different lenders for a lower interest rate, there is generally a grace period of about 30 days before your score is affected.
Finding Home Loans and Refinancing With Bad Credit
Even after you reverse the downward spiral of your credit history, you might need to tell a prospective lender that there may be some signs of bad credit in your report. This will save you time, since he or she will look at different loans than he might otherwise.
If bad credit continues to dog you, the FHA loan programs may be your ideal option. With down payments as low as 3.5%, Americans with good and bad credit have been getting into their first homes with these federally insured loans since 1934.
Why Were You Turned Down for a Loan?
Bad credit is just one of many reasons you may be denied a loan. If you are still having trouble getting a loan, ask your lender why. Chances are it will be one of these reasons for rejection:
Overextended credit cards: If you miss payments or exceed your limit, that’s a red flag to lenders.
Failure to pay a previous or existing loan: If you have defaulted on other loans, a lender will think twice.
Bankruptcy: Filed for bankruptcy in the past seven years? You might have trouble getting a loan.
Overdue taxes: Lenders check your tax payment record.
Legal judgments: If you have a judgment against you for such things as delinquent child support payments, it could harm your credit
Collection agencies: Lenders will know if collection agencies are after you.
Overreaching: You might be seeking a loan outside what you can reasonably afford.