Real Estate Information | Let us create a 3d Digital eBook for you! DigyCat.com |
|
Credit Help: Buying Real Estate -- Not the Same as Buying Cars
Credit for Buying Real Estate is Different than Credit for Buying Cars Forget what you've been told about credit. You may be shocked at some of these tips because this information runs contrary to what other so called experts tell you. Qualifying for a real estate purchase requires different credit than automobile financing or retail credit. Common Credit Myths 1. You need to pay off your credit cards Credit Facts 1. Paying off your credit cards lowers your credit score Why not pay off credit cards? Because paid off credit cards do not compute in your credit score. Real estate lenders like to see open, active accounts with low balances. Why not close accounts? Closing accounts before the payoff often costs consumers more money because credit card companies raise interest on closed accounts. You can buy real estate with poor credit, but you will save thousands in loan costs if you maintain good credit. A bad credit report leaves homebuyers with sub-prime loans which have higher point charges, prepayment penalties, and higher interest charges, which therefore cost more money. For instance, a mortgage loan of $150,000, 30-year, fixed-rate mortgage, interest rate of about 5.72 percent costs around $870 a month; poor credit scores raise the interest rate over 9 percent and the payments over $1,200. As you see from these payment differences, good credit means that you can finance a more expensive house with the same income, or save $330 each month. Credit Requirements for Mortgages Credit needed to buy real estate is not the same as good credit. Besides your credit score, mortgage lenders consider your debt-to-income ratio and other credit matters, unlike other credit grantors. Your debt-to-income ratio is the comparison of mortgage payment, including taxes, interest, and insurance to your total gross monthly income. Real estate lenders also consider your employment qualifications and your overall debt ratios. Understanding the difference between good credit and the credit needed to obtain real estate financing helps you buy houses! (c) Copyright 2004, Jeanette J. Fisher. All rights reserved. Professor Jeanette Fisher, author of Doghouse to Dollhouse for Dollars, Joy to the Home, and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, newsletters, and sales flyer template, see http://www.doghousetodollhousefordollars.com/pages/5/index.htm
MORE RESOURCES: |
RELATED ARTICLES
Home Buying - School District Issues A good school district is a key factor in home buying if you have kids. It can also be a positive selling point when it comes time to sell your home. Is Housing and Real Estate Bubble Hype Irrational Exuberance? Not so, says the author of this article and four real estate books including the recent "1001 Tips for Buying and Selling a Home". The upside of the hype is for real estate consumers and investors. The Perils of the Property Ladder: Has Anyone Noticed the Silence? There was a time when every conversation was focussed on property and every other TV programme was about property makeovers. Everybody wanted to get into property and those already on the ladder seemed fixated on becoming wealthy overnight. Flat Fee MLS Listings - Is This The Future Of Real Estate Realtors are all a buzz about this new form of listing houses on the MLS (multiple listing service). Some feel it creates more work for the buyers agent, while others see this as a way to tap into the For Sale By Owner market. Selling Your Home - What Can Go Wrong With Pricing and Loans So, you're selling your home (house, townhouse, condo, apartment, land, lot, farm, ranch, etc.), what can go wrong? The sad fact is that a lot of things can go wrong. Business Credit Card Dirty Tricks My system teaches people that the proper useof credit is the fastest way to speed up your profits in real estate investing.And you can use this system no matter what your own credit score is. Salt Lake City Real Estate From the mountains to the valley, there are many types of Salt Lake City real estate to choose from.Cabins:Cabins nestled into the mountains on the east side of the Salt Lake Valley are a great place to escape for those who have a home in the valley (or nearby). Expense List for Buying a Home There are many expenses that come with buying a home. The following list is a good example of what to expect:Down payment - A minimum of 20% of the home's purchase price is usually required for the best loan terms and to avoid paying private mortgage insurance (see below), but it's entirely possible to buy a house with a smaller down payment. Searching the Hawaii Property Listings Maui is an island so full of life and vivacity (perhapsbecause of the fact that it was formed millions of yearsago by the eruption of two volcanoes) as well as beingmixed with the enticing calm that you can only experiencewhen you are near the sea. Sounds enticing? All of thesedreams can become a reality by simply searching the HawaiiProperty Listings and making the move. Investing In Real Estate Investors With the never-ending changes in our Real Estate Markets real estate professionals are starting to pay attention to the sound of new commission streams of income. Some realtors have either shied away or ran-away from such terms as "Cap Rate," & "Cash-on-Cash Returns. Investing in the Baltic Tiger: What Has Estonia Got to Offer? Estonia's reputation is growing within the property investment market. Rising far above her new European neighbours in terms of infrastructure and growth, Estonia is fast becoming the Baltic's very own 'Tiger' economy with a healthy growth rate of 5. Rapid City Real Estate Agents Take me Back to the Black HillsLocated in Western South Dakota, Rapid City is a thriving community with many amenities to offers its residents. This city is nestled among the beautiful Black Hills, offering endless recreational activities for the outdoor enthusiast in the Black Hills National Forest. For Sale in Ridgefield Ridgefield Connecticut, located near the New York border, is a small, quiet town, and a great place to live. There are many types of homes that are for sale in Ridgefield, including luxury homes. 5 Steps To Choose the Best Cincinnati Realtor Excluding some professional real estate agents buying a house is a lifetime decision for most people. Whenever a person is decided about purchasing a house he is ready to invest a hefty amount of his lifetime savings for acquiring the house. Time Is A Major Real Estate Wealth Growth Tool, So Use IT And Watch Your... In Real Estate "Time" is a Wealth Development ToolsReal estate wealth,From The Desk Of Colm DillonHello, Colm here .. Cutting Edge Real Estate, Is the Bubble Ready To Burst? Of course, this is the big question in real estate now. . How to Achieve Financial Freedom with Your Home The secret disclosed on how you too could achieve financial freedom through property (and tell the pension companies just where to stick their measly, worthless 'pensions') Geoff Morris is a self-made property millionaire who made it in less than 18 months even with a hectic 'day job'. He has written a series of articles to help people like you achieve the same levels of success - as long as you are willing to 'Go For It!'Many people these days are getting more and more concerned as they approach retirement age. Real Estate, Real Property and Leased Land; Definitions, Discussion and Explanations Delaware, and the rest of the original British Colonies, has some land that is leased rather than owned by the residents of that land. Much of it is not evident to the casual observer. Home Loans - Identity Theft Protection Could Hurt Home Sales Identity theft has been a hot topic in the news during the last few years. Just a month or so ago, forty million credit card numbers were compromised due to a computer attack on a credit card processor. Buying New Construction...How Do I Begin? The prospect of shopping for a new construction residence can be quite daunting, but the rewards of owning a brand new home out-weight the disadvantages if you know the potential pitfalls. The following are important considerations: Overall Dollar Budget, Location, Cost Per Square Foot, Finishes, Upgrades, Parking and Delivery Date. |
List4Sale Domain Is For Sale - $10,000 For Enquiries eMail Us © www.List4Sale.biz 2012 |