Claire LeBlanc - REALTY EXECUTIVES



Posted by Claire LeBlanc on 7/8/2020

Image by David Pereiras from Shutterstock

Your FICO score is a key factor used to determine if you qualify for a mortgage. The Fair Isaac Corporation (FICO) is the creator of the most common credit score used by home loan providers. The algorithm used to create your score is a closely-guarded industry secret. But in general, it factors in your payment history, debt burden, length of credit history, and recent applications for credit. Your FICO score is powerful but there are things it cannot account for.

It does not indicate how much you can afford.

It does not reveal how much you have saved up for a down payment.

It does not understand your ability to budget.

It does not display your current bank account balances.

What does it do?

Your FICO score tells you (and your potential lender) how you have handled credit over the length of your credit history. Scores range from 300 (poor) to 850 (excellent). The primary factors that can hurt your credit score are late-payments and the debt-to-credit ratio.

Late Payments

Make your payments on-time every month especially if you are hoping to secure a mortgage. The more on-time payments you have the better your score will be. In some cases, on-time payments can dilute the impact of late-payments in your credit history. Newer incidences can be more detrimental to your score than older late-payments. Payments that are received 60, 90, or 120 days late count more against you than those that are late by over 30 days.

Credit Utilization

The total amount you owe is a consideration but the relationship between how much you owe and the credit available to you weighs more heavily when it comes to determining your FICO score. Another term for this is your credit utilization. Your debt-to-credit ratio is a measure of how much of your available credit you are using within a 30-day window. The higher the ratio of debt compared to available credit, the more likely you are to have a lower FICO score.

For instance, letís say you and your partner both owe $1000 on credit cards. Your available credit is $1500, making your credit utilization two-thirds or 66 percent of your available credit. Your partnerís available credit is $4000, making their credit utilization 25 percent of their available credit. If all other factors are equal, your partnerís FICO score will appear higher. 

Ask your real estate professional for recommended financial resources in your area.





Posted by Claire LeBlanc on 7/26/2017

Even the best real estate agents can't share important facts about your house the way that you can. You know what it's like to actually live in your house. Only you know if the refrigerator runs after the door has been open for at least a minute. You know if the house makes settling noises late at night. Soft spots in the floor, and how well the house heats during winter and cools during summer are more facts that you're privy to.

Sharing your house's inside history, builds buyer trust. But, be careful. As you share facts and history about your house, you might fall in love with your house all over again and start second guessing whether you should let your house go.

Home buyers want to do more than walk thru your house

When house shoppers start asking you about closing costs, if you have pets and when you'd like to move into your new home, it's time to start sharing important information with them. Doing so could speed up a house sale. Information to share includes:

The personality of the neighbors. Similar to how authors describe the personalities of characters in their bestselling novels, introduce potential buyers to the neighbors. Skim the surface, letting prospects know if neighbors are quiet, social or tougher to get to know. This is where having great neighbors pays off hugely.

Just as you'd let house shoppers know if you have pets, let potential buyers know if most of the neighbors have pets. If pets are well trained, not aggressive and stay in their yards, share this. It could put people who are uncomfortable around large pets at ease, especially if these potential buyers heard dogs barking as they drove up the street to your open house.

Don't keep house shoppers in the dark

Don't stop there. Tell house shoppers where malls and hit stores are, including how far these hot spots are from your house. If you live near hot spots, this alone could attract buyers who love being at the center of exciting events.

Although prospects will see key features about your house as they walk through it, they won't catch everything. Tell people who are interested in buying your house about the extra storage space that buyers can't see right away and often miss.

Have a finished basement or a finished attic? Let buyers know. It could make the difference between losing a house sale or closing a deal. Buyers may be looking for extra space that can be used as a guest room, extra bedroom or home office.

Show off gorgeous outdoor views. Share stories about renovations you performed on your house since you purchased it. Share stories about experiences you created at the house that caused you to love the house. For example, you could tell buyers that your first child was born in the house or that you started you operated your first business out of the house.

Let house shoppers know where nearby airports and other forms of public transportation like trains, subways and buses are. Buyers may not be a two-car family. Knowing that you live near reliable public transportation could seal the deal.

Talk with your real estate agent about inside history that you're considering sharing with potential home buyers. Do this before you speak with people who are interested in buying your house. Your realtor may have ideas on how you can present the history, offering house shoppers honesty and engagement.







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