Information for Buyers

8 Ways to Improve Your Credit

Credit scores, along with your overall income and debt, are a big factor in determining if you'll qualify for a loan and what loan terms you'll be able to qualify for.

• Check for and correct errors in your credit report. Mistakes happen, and you could be paying for someone else's poor financial management.
• Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.
• Don't charge your credit cards to the maximum limit.
• Wait 12 months after credit difficulties to apply for a mortgage. You're penalized less for problems after a year.
• Don't purchase big-ticket items for your new home on credit cards until after the loan is approved, or even better wait until you close the deal. The amounts will be added to your debt.
• Don't open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.
• Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
• Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be consider a sign of poor credit management.

10 Tips For First Time Home Buyers

• Be picky, but don't be unrealistic. There is no perfect home.
• Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.
• Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and your closing costs.
• Don't wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.
• Don't ask for too many people for opinion. It will drive you crazy. Select one or two people to turn to if you feel your need a second opinion.
• Decide when you could move. When is your lease up? Are you allowed to sublet?
• Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you'll buy as well as the type of mortgage terms that suit you best.
• Don't let yourself be "house poor". If you max yourself out to buy the biggest home you can afford, you'll have no money left for maintenance or decoration or to save money for other financial goals.
• Don't be naive. Insist on a home inspection and, if possible, get a warranty from the seller to cover defects within one year.
• Get help. Consider hiring a REALTOR as a buyer's representative. Unlike a listing agent, whose first duty is to the seller, a buyer's representative is working only for you. Most time buyer's reps are paid out of the seller's commission payment.

5 Factors That Decide Your Credit Score

Credit scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. These factors will affect your score.

• Your payment history. Whether you paid credit card obligations on time.
• How much you owe. Owning a great deal of money on numerous accounts can indicate that you are overextended.
• The Length of your credit history. In general, the longer the better.
• How much new credit you have. New credit, either installment payments or new credit cards, are considered more risk, even if you pay promptly.
• The types of credit you use. Generally, it's desirable to have more than one type of credit-installment loans, credit cards, and a mortgage, for example.

10 Steps to Prepare for Homeownership

• Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
• Develop a wish list of what you'd like your home to have. Then prioritize the features on your list.
• Select three or four neighborhoods you'd like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.
• Determine if you have enough saved to cover your down payment and closing costs.
• Closing costs, including taxes, attorney's fee, and transfer fees average between 2 percent and 7 percent of the home price.
• Get your credit in order. Obtain a copy of your credit report.
• Determine how large a mortgage you can qualify for. Also explore different loan options and decide what's best for you.
• Organize all the documentation a lender will need to preapprove you fro a loan.
• Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.
• Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
• Find an experienced REALTOR who can help your through the process.

5 Common First Time Home Buyer Mistakes

• They don't ask enough questions of their lender and miss out on the best deal.
• They don't act quickly enough to make a decision and someone else buys the house.
• They don't find the right real estate professional that is willing to help you through the home buying process.
• They don't do enough to make their offer look good to the seller.
• They don't think about resale before they buy. The average first-time buyer stays in a home for four years.

5 Things To Understand About Homeowners Insurance

• Look for exclusions to coverage. For example, most insurance policies do not cover flood or earthquake damage as a standard item. These coverage's must be bought separately.
• Look for dollar limitations on claims. Even if you are covered for a risk, there may be a limit on how much the insurer will pay. For example, many policies limit the amount paid for stolen jewelry unless items are insured separately.
• Understand the replacement cost. If your home is destroyed youlll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient. This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you'll only receive $150,000.
• Understand the actual cash value. If you choose not to replace your home when it's destroyed, you'll receive replacement cost, less depreciation. This is called actual cash value.
• Understand liability. Generally your homeowners insurance covers you for accidents that happen to other people on your property, including medical care, court costs, and awards by the court. However, there is usually an upper limit to the amount of coverage provided. Be sure that it's sufficient if you have significant assets.

7 Terms To Watch for In a Purchase & Sales Contract

As a client of Colleen she will guide you through the whole process of making an offer to purchase a home. Once you sign a contract and it is signed by the seller and delivered back to you it becomes a legal and binding contract.

• The closing date: Usually the real estate closings take place at the end of the month. The reason for this is that the buyer will have to pay less up front money for the closing because most banks prorate the interest from the day of closing.
• Date of possession: You will have access to the home immediately after the closing unless you have made other arrangements with the sellers.
• Fixtures and personal property: Check the list of items that the buyer expects to remain with the property and be sure it's acceptable.
• The earnest money: This is the down payment that will be deposited in Signature Associates, Inc. escrow account and will be used towards your down payment, closing costs, etc. If you are going for 100% financing this money will be returned to you through the attorney.
• Repairs: This addendum to the original contract becomes part of the contract usually after inspection if there are any unknown defects and it is agreed upon by both buyer and seller what the terms are as to the repairs being made or a credit going back to the buyer to do the repairs themselves.
• Contingencies: See what other factors that need to be met in order to go to closing. The normal contingencies include the home inspection, obtaining a mortgage, review of the contract by an attorney or the selling of a home of the purchase of another home. Set time limits on contingencies so that they wont drag on and keep your sale from becoming final.
• The contract expiration date: This is the date that the seller has to accept or counter offer your contract. If this date is not adhered to by the seller the contract becomes null and void unless both parties agree to extend it.

Colleen cannot stress enough the need to put everything in writing and she will make sure that you adhere to all dates in the contract.

10 Questions To Ask a Home Inspector

• What are your qualifications? Are you a member of the American Association of Home Inspectors?
• Do you have a current license?
• How many inspections of properties such as this do you do each year?
• Do you have a list of past clients I can contact?
• Do you carry professional errors and omission insurance?
• Do you provide any guarantees of your work?
• What specifically will the inspection cover?
• What type of report will I receive after the inspection?
• How long will the inspection take and how long will it take to receive the report?
• How much will the inspection cost?

What Your Home Inspection Should Cover

• Water Leaks: Roof, bathrooms, basement.
• Foundation: Look for large cracks in foundation, any sagging in floors, check support beams, and look for termites or carpenter ants.
• Siding: Look for dents or buckling.
• Exterior Brick: Look for cracked bricks or mortar pulling away from bricks.
• Insulation: Look for condition, adequate rating for climate.
• Doors and Windows: Look for loose or tight fits, condition of locks, condition of weather stripping.
• Roof: Look for age, conditions of flashing, pooling water, buckled shingles, or loose gutters and downspouts.
• Ceilings, Walls, and Moldings: Look for loose pieces, drywall that is pulling away.
• Porch/Deck: Loose railings, floor boards, steps or rot.
• Electrical: Look for condition of fuse box/circuit breakers, number of outlets in each room. Check condition of riser cable and make sure no water is going into the control panel.
• Plumbing: Look for poor water pressure, banging pipes, rust spots or corrosion that indicates leaks, sufficient insulation. If water pressure is poor, you might want to have the sewer line checked by a sewer line company who will send a camera through the sewer line to see what the problem is. This test cost around $150.
• Water Heater: Look for age, size adequate for house, speed or recovery.
• Heating System: Look for age, energy rating, general condition of the heating system. Make sure if it has oil heat that the tank is not leaking.
• Garage: Look for exterior in good repair; condition of floor cracks, stains etc. Check the door mechanism, to see if has safety features.
• Basement: Look for water leakage, musty smell.
• Attic: Look for adequate ventilation, water leaks from roof.
• Driveways/Sidewalks: Look for cracks, heaving pavement, crumbling edges.
• Mold: Mold is the newest environmental issue that has come into play because some people can become sick from mold. Your inspector will advise you on this and Colleen will provide you with additional information.
• Radon: This is a natural gas that is produced in the earth that is said to cause cancer. A simple test can be done to see if your home has high levels of radon. A canister is set in the basement and left for 48 hours and sent to a lab.