I should pay off my credit debt……..wrong
I should cancel all old credit cards…….wrong
I should consolidate my debt into one place…….wrong
It seems as though everywhere you turn, people are harping on credit scores – check your credit report, check your credit score etc. Well, there is good reason. These days your credit score has become an integral part of your ability to get a mortgage, or to get a well priced mortgage. A “good” credit score is well into the 700’s and is a welcome green light to your lender.
There are three principal credit reporting companies and the banks rely upon these in different ways, but each one will provide you with your credit report and score once a year. It is worthwhile to find out what your number is because not all of us have “good” credit ratings. Try as we might, there is that late payment (from four years ago) for the bill that was due when you were on vacation or just waiting for your paycheck to clear. Maybe there is that overcharge from a department store that you cleared up with them, but never cleared off your credit… seems that there is always something.
The question is, how do you improve your credit score? Well, improving your credit score is not as straight forward as it would seem. It is a complex and confusing system applied by mortgage companies to evaluate your credit when you are applying for a loan.
So, if living in Arlington MA or buying Cambridge MA Real Estate is in your future... Download Avenue 3's guide to Improve Your Credit Score and find out the secrets you need to know!
We all know that money seems to go out the door much faster and easier than it comes in. We all realize that for most of us, buying a home is the single largest financial decision we will make in our lives. It is important to make a wise decision. So, how do you really know what is “affordable” for you when it comes to buying a home.
Looking at just the asking price of the home is not terribly helpful. I would suggest you work from the bottom up and look at the monthly payment you would face when you own this home and see how “affordable” that feels. You can start by talking to a mortgage broker. Be sure to ask them to break down the monthly payment to mortgage costs, taxes and insurance. All three of these may or may not be included in your monthly payment. If you are buying a condo, factor in the monthly condo fee. If you are buying a home, factor in your own ‘condo fee’ for maintenance, heating, electricity, water and sewer.
Add up the figures, stare the number in the face, think about it for a while, see if you break out in a cold sweat… if not, then this price may well be what makes a home “affordable” for you.
Download Free Home Buying Kit
Find tips on buying a home by downloading our very informative Better Buyer Kit.
Let’s say that you have been searching for a new home and eureka, you found one, right here in Arlington, MA. Do you have any idea how long it takes to get from this point, to moving in all your cherished belongings and calling it home sweet home? While every transaction is different, this will give you an idea of a “standard” timeline from buyer to owner.
Home Inspection - Once the offer is accepted, the next step is most often the home inspection. This is most typically performed within 5 – 10 days after the offer is accepted.
Purchase and Sale - Next in the chain of events is the Purchase and Sale. Since this is often negotiated by the attorneys for the buyer and seller respectively, it may stretch in “legal time” which often has no correlation to “actual time”. But, assuming all goes well, the Purchase and Sale is hopefully completed within 5 - 7 days after the home inspection.
Mortgage - Typically buyers will apply for a mortgage within 2-5 days after the signing of the Purchase and Sale Agreement, if not before. The mortgage process, much more laborious than in years past, should take 4 weeks to reach commitment.
Closing – After commitment is issued to the buyer, the bank typically needs a week to two weeks to prepare for closing.
All in all, the process, moving smoothly, should take about 7 - 8 weeks from start to finish. That being said, I have seen it done in 30 days and seen it take, well, forever….
If you have any questions about the process, procedures, or contracts involved in purchasing a home, please contact us or download our better buyer kit for more info. We would be happy to help you accelerate your chance to find yourself happily living in Arlington, MA.
Download Free Home Buying Kit
Find tips on buying a home by downloading our very informative Better Buyer Kit.
Yes, Virginia, it does exist. Throughout my, shall we say, lengthy career in real estate, I have witnessed the media’s love of foretelling, reporting or rehashing anything to do with bad news in real estate. If values are on the rise, it is a bubble about to burst any moment. If values are declining, it is the end of the world for all. I do not mean to make light of the current difficulties faced by many in areas of the real estate market today, I am just suggesting that it would be wonderful to see a bit of a level playing field in reporting both the good and the bad as they occur.
For instance, right now, the good news in real estate….wait for it… is the historically, amazingly low interest rate! In my recent conversation with a mortgage originator, I was quoted refinance rates in the low 4’s and purchase money at 3.875%. 3.875%, yes, that is what I said! I remember 18.75% - although you most likely don’t – so 3.875% is just silly!
For those struggling with upside down mortgages, I express my concern and sympathy. However, this low interest rate does qualify as Good News in Real Estate. If you are able, you should take advantage.
And this might be a good time to download our BETTER BUYER KIT. It is free, it is for you, and it will help! The Better Buyer Kit offers you years of experience at your fingertips. The kit will answer many questions and help you prepare for the trransaction ahead. Read it through or keep it as a reference throughout your buying process.
Karen Lilley, principal
The real estate market is in a state of serious decline. That much we all know. The question is how I as a buyer or seller manage a successful transaction in this market. While many things affect the selling or purchasing of property in this and any market, we wanted to highlight the most crucial aspect of adjusting to this market in particular.
For the sellers, the most critical element is competitive pricing. The right price is always pivotal, but even more so in the current market. So, how do you find that number? By doing your homework that's how. First, talk to professionals, who know intimately your market and your competition. Do not price your property by relying on websites that suggest pricing by satellite views and neighborhood averages. Second, go look at your competition. You will see that the condition, functionality and "feel" of a property all affect value. Third, be objective! This may be your most difficult task, but it is important to view your home with a critical eye.
For today's buyers, have yourself pre-approved for your mortgage in the current market. Many lenders have tightened their credit qualifiers and you may find yourself at a different price point than you were able to achieve six months ago. You may want to speak to more than one lender to be sure of your qualifications. In addition, remember that reasonable values are holding in many markets. Unless you're involved in a distressed sale, you may not find "bargain basement" offers working for you. Search sold properties on avenue3re.com to understand competitive values before making an offer.
Any time the market is changing, either in an upward or downward cycle, buyers and sellers must be well informed with up to date information. Remember that your experienced local agent is a tremendous resource to help you succeed.
That is "how we see it"; let us know what you think.