Home Buyer Tips Archives – Page 13 of 62

25

Mar

Home Mortgage Tips

Four Ways That Being Diligent with Your Mortgage Payments Can Seriously Improve Your Credit

Four Ways That Being Diligent with Your Mortgage Payments Can Seriously Improve Your Credit The unfortunate reality is that many individuals have a lower credit rating than they would like. For many, this is caused by issues related to high debt balances, late payments and other related issues.

If you have a lower credit rating, you may be wondering what steps you can take to improve your standing with the credit bureaus. While there are several steps available for you to consider, making timely payments on your home mortgage can have a great impact on your credit. There are four unique ways that diligence with your mortgage payment may improve your credit.

Showing Financial Responsibility

First, when you make timely payments on an account, including your mortgage, you are proving your financial responsibility. Previous issues with late payments, collections accounts and other similar credit events may have indicated that you are a credit risk to lenders, but you can prove your responsibility through regular mortgage payments.

Reducing Outstanding Debt Balances

High debt balances are another common reason your credit ratings may be lower. When you make your mortgage payments on time, you will effectively reduce your outstanding balance on what may be the largest single debt that you have. This can have a tremendous impact on your rating over time.

Preventing New Derogatory Credit Events

When you are trying to improve your credit rating, the last thing that you may want is to have additional derogatory credit events listed on your credit report. Making your mortgage payments on time each month will prevent new late payments from being shown on your report. Establishing a solid new credit history from this day forward will help you to rebuild your credit rating.

Increasing The Length Of Time Between Older Derogatory Credit Events

As you regularly make your payments on your mortgage each month, more time will elapse between any blemishes or derogatory events on your credit report. Essentially, you will be making those derogatory events dated, and you will have a recent history of positive activity. Increasing the length of time between the present and your derogatory credit items is a great way to boost credit scores.

If you have a speckled credit history with lower scores than you would like, you understandably want to take steps to improve your credit rating. These are all ways that making timely mortgage payments can boost your credit rating, and you can apply these concepts to any other outstanding debts as well.

A mortgage consultant may help you to learn more about your current credit report and steps that you may take to boost your scores.

12

Feb

By First Rate Financial Group

Home Buyer Tips

Three Excellent Reasons to Buy a Home So You Can Get out of the “Renting Rut”

Three Excellent Reasons to Buy a Home So You Can Get out of the Renting a home is a good option for some, but buying a home just might be the best thing for you. When you rent a home, you send money to someone else every month in exchange for knowing that you can call on your landlord when the roof leaks, an appliance stops working or your bathroom faucet breaks.

There are some big advantages to buying a house that will help you get out of your renting rut and focus more on your future.

Build Equity

Did you know that when you rent a home, you help someone else build equity? Any changes that you make with your landlord’s approval puts money back in his or her pocket. Keeping the yard clean and taking care of routine maintenance builds equity in that property. When you buy a home of your own, you have the chance to build equity of your own, which you can use to obtain a loan later.

Save On Your Taxes

When you rent a house, you cannot deduct the money you spend on your taxes. Though some states will let you make a small deduction based on the total amount you spend in rent each month, you cannot make any deductions on your federal taxes. When you buy a home, you can save with a few different types of deductions.

The federal government lets you make a deduction if your home is worth more than what you currently owe on your taxes. If you purchased your first home, you can make a deduction in regards to your property taxes. You can also deduct money that you spend on some renovations and energy saving appliances.

Put Your Personal Touch On Things

As long as you continue renting, you live in a home that belongs to someone else. Your landlord has final say over what you do and do not do. This often means that you cannot make repairs or significant changes without seeking approval first.

Renting a home lets you put your personal touch on things. You can paint the walls any colors you want, rip out the carpet to add hardwood flooring or even make significant changes outside to turn your new home into your dream home.

Now that you know more about the benefits of buying a home and how that purchase can get you out of the rental rut you’re in currently, turn to a mortgage professional for assistance.

10

Feb

By First Rate Financial Group

Home Buyer Tips

Buying a New Home? Follow These Three Tips to Ensure a Stress-Free Transaction

Buying or Selling Your Home? Follow These Three Tips to Ensure a Stress-free Real Estate Transaction Buying real estate and or taking out a home loan is a significant milestone in life. Frequently, it means that a new phase is starting, whether it’s a new job, a new relationship, or moving to a new area. However, when the most basic steps are missed, this transition can be fraught with stress and disaster. To ensure a smooth transaction, home buyers should be sure to mind the following tips.

#1: Always Be Honest

Honesty and clear communication need to be a two-way street. Home buyers expect their mortgage professional to be honest with them, and likewise it is always necessary for a home buyer to be honest with their mortgage professional.

Hiding details or covering up potential problems by either party will only cause more issues when everything comes to light. When important information is withheld, it’s possible for delays to occur, costs to rise, or even for the deal to fall through.

It’s much better to disclose all necessary information upfront so the situation can be handled appropriately. An expert mortgage professional will be able to guide home buyers through any problems and issues to a workable solution.

#2: Hire A Professional Team

Buying real estate and taking out a mortgage is not an easy process, so it’s never a good idea to try to proceed without a professional who can be trusted.

Far too often, people let friends or family members represent them in real estate transactions. In these cases, it’s likely for feelings to be hurt, relationships to be damaged, and trust to be compromised.

Rather, it’s recommended for home buyers to use a real estate agent and mortgage professional they do not have a close personal relationship with. That way, they can stand confident that their agent or mortgage professional is looking out for their best interests, and nothing else.

#3: Understand The Market

Far too often, home buyers fail to understand the market and their finincial situation.

Failing to identify this crucial information will waste time for buyer and mortgage professional. However, this is where a real estate agent or mortgage professional comes in: he or she will know the market inside out and be able to offer valuable counsel for all financial situations.

Home buyers should call their mortgage professional if at any time they have questions about taking out a mortgage; this professional is the key to a smooth real estate purchase.