Understanding Credit and Building For Home Ownership

(I am not a credit expert. These are just my opinions and proven research)

The market is heating up and I wanted to re-post a previous blog from last year. Today I want to talk about understanding and building your credit. You must understand credit in order to build credit properly. In today's real estate market, I'm faced with potential buyers struggling to become homeowners however continuously blocked by credit issues. Although you cannot build credit overnight, you can establish good credit history within 6 months or what I call "good behavior" period.

Understanding FICO Scores:

There are several aspects to how a FICO score is determined. A score can range between 300-850; the higher the better. The goal is to get your score at 720 or higher however having all 3 credit bureau scores above 620 can get you into a home today. Just this week, I handed a new home owner the keys to her new home with a middle score of 616 so it can be done.

35 percent Payment History: "Having a long history of making payments on time and no missed payments on all credit accounts is one of the most important items lenders look for."

30 percent Amount Owed: "This measures the amount you owe relative to the total amount of credit available. Someone closer to maxing out all their credit limits is deemed to be at a higher risk of making late payments in the future and this can lower their credit score.

15 percent Length of Credit History: "In general, a credit report containing a list of accounts opened for a long time will help your credit score. The score considers your oldest account and the average age of all accounts."

10 percent New Credit: "Opening several new credit accounts in a short period of time can lower your credit score. Also multiple credit report inquiries can represent a greater risk, but this does NOT include any requests made by you, an employer or by a lender who does so when sending you an unsolicited, "pre-approved" credit offer. Also, to compensate for rate shopping, the score counts multiple inquiries in any 14-day period as just one inquiry.

10 percent Types of Credit in Use: "Your mix of credit cards, retail accounts, finance company loans and mortgage loans is considered."

There are 3 main companies that collect credit information; Equifax, Experian and TransUnion. You can purchase all 3 scores and reports at www.myFICO.com for $40.00 and compare. If you find inaccurate accounts, submitting an online dispute request is a very common practice. Accounts less than 2 years old and/or over $500 must be paid and resolved PRIOR to you contacting a mortgage lender. Any late payments in the last 12 months are worth contacting the creditor to see what you can do to have removed.
If you have filed bankruptcy Chapter 7, you must wait 2 years and Chapter 13 wait period is 3 years before you may qualify for a mortgage loan. Repossessions have a 3 year wait period and rental history with an apartment complex must be clean for 12 months. And a Judgement must show paid. Contacting a reputable credit repair company such has Halo Credit Solutions to help resolve bad credit while you build NEW credit is the best route.
Tips to Building Credit: 


1. Apply for a credit card but apply for a credit card that you are likely able to meet all requirements. Before applying, do your homework by making sure the creditor reports to credit bureaus otherwise it defeats the purpose. 
2. Create a spending plan. Use a credit card for purchase however keep the balance under $25 or at least a balance that you know you can pay IN FULL on time. Not just minimum...IN FULL. Getting gas or a few items at the grocery store will do the trick.
3. Opening a SECURED card is a great way to build credit. Orchard Bank and First Premier Bank are my recommendations
4. You need 2-3 major credit cards. Reason: you can not have a dormant credit card. You must be able to rotate your credit every few months. Having a dormant account can harm your score as well.


I really hope this information will help you. I want potential home owners to walk into a lenders office with confidence and secure in knowing they will be approved for a loan. Debt to income ratio is a lending factor as well however the majority a denied loans are due to poor score. If you are in the Charlotte area, please do not hesitate to contact me for a FREE home owner consultation meeting. Contact me directly or join my FACEBOOK page:


Yolanda Hayes
www.soldbyyolanda.com
soldbyyolanda@gmail.com
704-839-6005

The SKYE Is The LIMIT!! New Uptown Condo Living

Yes, it's true!! There is a new addition to Uptown Charlotte that is truly adding value to the Queen City.

As many know Second Ward was deemed a redevelopment area in 2001 and after the original developer fell into foreclosure The Small Brothers, LLC Real Estate Development took over the project in 2009. Small Brothers is a family of privately owned companies founded in 1980 by Richard G. Small and his sons. Today, the company has 11 offices in 8 states. Small Brothers family of companies employs over 1,500 people in general contracting, interior contracting, design/build, construction management, manufacturing of metal studs, distribution, fabrication of load-bearing walls, real estate and development.




Charlotte's latest uptown development graces the corner on South Caldwell and East Third St. The SKYE is a 21 story, 67 unit luxury condominium high rise project consisting of 1 bedroom, 2 bedroom and penthouse availability. The endless amenities never seen in Charlotte includes:

• Parking on floors 4-6
• Fitness Club
• 24 Hour Concierge
• Valet Parking
• Rooftop Pool
• Theatre Room
• Restaurant 
• Residents Only Lounge
• Ground Level Retail
• AND MUCH MORE

The SKYE Condominiums sales center is open for more information and handled by The McDevitt Agency. 

Thanks for stopping by my blog site today and if you are interested in Charlotte Living, contact me to schedule a free consultation appointment. Join my FACEBOOK page to stay informed on the Charlotte and surrounding areas real estate. 

Yolanda Hayes, Real Estate Broker
Wilkinson and Associates
704-839-6005

5 Important Items All Buyers Must Have
 To Buy a Home 

1. ID (State issued ID or Drivers License) : Although this seems understood there is an amazing amount of mortgage fraud therefore the lender much know you are who you say you are. 


2. 30 Days of Pay Stubs:  A buyers income is a huge part of determing the loan amount 


3. 2 Months of Bank Statements: Lenders require  proof of regular income AND proof that the money is really yours. The down payment is very important to prove that the money is coming directly from the buyer however down payment assistance is avaialble in most cases. 


4. 2 Years of W2's or Tax Returns: Lenders want to see stable, long term income 


5. Divorce Decree: Well, there are states that are considered "community property" states meaning, 1 to buy 2 to sell. If you were to buy a home but still legally married, your legal spouse will automatically own 50% of the property and you cannot sale the property without them.  This law applies in North Carolina

I hope this helpful information will get your ready for your first steps towards home ownership.  

www.soldbyyolanda.com 

Top 5 Mistakes First Time Buyers Make

 Top 5 Mistakes First Time Buyers Make


1. Buyers Do Not Ask Enough Questions
You want to ask as many questions as possible when it comes to home buying. This may be the largest financial purchase you'll ever make so you want to really get into the core questions so that you can better understand the process and what it takes to be a home owner. Make sure you have the phone number of every professional involved (realtor, lender, attorney, inspector etc.)

2. Not Being Pre-Approved Prior To Contacting A Realtor
Buyers tend to look at homes and/or contact a realtor before they actually know how much they would be qualified for through a mortgage loan company. I know the thought of having your own home is exciting but you don't want to get your hopes up nor waste the time of a professional so get approved first. Time and time, I have buyers call telling me how they are ready to buy then I send them to a lender and they cannot get loan approved due to their credit or debt/income ratio. This can be very discouraging to a buyer and most just give up thinking they can never stop the cycle of renting.

3. Submitting An Unappealing Offer
Yes we are currently in a buyers market however that does not mean to be heartless towards the sellers. Submitting a low ball or unappealing offer is not good and you also put yourself in the position for the seller to completely deny your offer and not willing to negotiate with you. This may be the home of your dreams that you are placing yourself and your family at risk of losing because you want a $200,000 home for $170,000. Put yourself in the sellers shoes...they still owe the bank the difference between the selling price and the loan balance. They have closing cost to pay out of pocket and surely the buyer will also want the seller to help them pay their closing cost in addition. Now, when dealing with a foreclosure, the seller is the BANK. Completely different...the bank has no feelings but an actual seller does do keep that in mind. Would you want someone to offer you an unappealing offer when it's time for you to sale?

4. New Buyers Tend Not To Think About Resale (Future)
When buying think "why would I buy this home?" because the next buyer will think the same thing. Make sure you are buying within a nice community with amenities, shopping and great school districts. You never know when you may need to move again due to a growing family or job relocation.

5. Some Buyers Do Not Submit Offer Quick Enough
As apart of my buyer process and services I ask buyers to select 5 total homes to view and then narrow down to 2 homes. A buyer that is indecisive and taking their time to decide on whether to submit an offer can really be upsetting. For every home YOU love there are 10 other buyers looking at that same home. Waiting to submit an offer leaves room for another buyer to take that home from right under your nose. Homes are gone just that quickly...a difference of 5mins. If you find a home in your price range, school district, near your job, you love the floor plan etc. please do not wait to submit the offer.



I hope these tips will be helpful for when you are ready to start a home buyer process. In addition to yourself...you may have friends, family or co-workers interested in become a home owner, I am currently accepting new clients. It would be my pleasure to be your advocate to becoming a home owner. Thank you.  www.soldbyyolanda.com

Home Buyers Seminar 1/8/11 Was AMAZING!! You Missed Out

HAPPY SUNDAY!!

A few weeks ago I blogged about an upcoming seminar for credit challenged buyers. We had a shocking HUGE turn out to the point of turning people away.

This was my first seminar of 2011. If you missed it due to popular demand, I will be hosting another one in February. This program is so unbelievable that skeptical buyers openly spoke up saying this was too good to be true. Well...IT'S TRUE and they heard it directly from the creators of the "Game Plan" program.

What is the "Game Plan" program?

A program for credit challenged buyers that provides FREE tools, support and assistance to help you gain a part of the American dream. When you are partnered with a preferred lender and FREE credit repair counselor, your BRAND new home will be built by True Homes Builders. YES!! That is correct...I will be your preferred realtor and help you select one of True Homes communities, floor plans and watch your dreams of becoming a home owner come true. This program ranges from 90days-10months depending on your starting credit score.

How it works?

-Must have a credit score of at least 560 to join the program. If you do not know your current score, you can go to www.freecreditscore.com
-Must use the preferred lenders with True Homes AND follow their custom plan created just for you.
- $500.00 refundable deposit to really show the builders that you are very serious and not wasting their time...the $500.00 can be placed towards your closing cost.

IT'S REALLY THAT SIMPLE!

Contact me at soldbyyolanda@gmail.com to be added to my guest list for the February seminar. I understand that this program sounds to good to be true so join me for a FREE information presentation to help ease your mind. I'm available to answer any questions you may have about home buying and/or this program. Don't miss this opportunity because I may not be able to host another event like this. I can only provide you with the tools and education of home ownership, it's up to you to utilize the information. Until next time...

$8000 Tax Credit Reminder

You’ve decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit. Here's what you have to do to get your benefit:

Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract by April 30, 2010 and close by July 1, 2010.


Decide whether to:
apply the credit to your 2009 tax return, filed on or before April 15, 2010;
file an amended 2009 return; or,
apply the credit on your 2010 return, filed on or before April 15, 2011.


Buyers purchasing in 2010 will have the option to:

Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009;
File an amended return for 2009 if their purchase is completed after April 15, 2010; or claim the credit on their 2010 tax returns.

Living In Steele Creek

Good morning blog readers!! First I want to thank everyone for stopping by to read my Steele Creek blogs. I have had much success on writing about this area and I enjoying sharing the information I have.

Steele Creek is located in the southwest are of Mecklenburg County within the Charlotte Mecklenburg School District. This area is covers more than 50 square miles of land with Lake Wylie just east of this awesome area. Over this 300 mile venue, Lake Wylie offers boating, fishing, water sports, shopping and parks. McDowell Nature Center and Nature Preserve are 2 parks that you must stop to view if you're ever in the area.

This rapidly blooming development consist of Single family homes ranging between mid $100,000-$600,000,townhomes and condos ranging between $100,000 to mid $400,000. Nearby you will also find Steele Creek Athletic Assocation that provide youth sports the Steele Creek YMCA. For those of you that enjoy professional sports, NFL Carolina Panther Stadium and NBA Charlotte Bobcats Arena is just 10 minutes away right in the heart of Uptown Charlotte.

If you are thinking about relocating, buying or selling in the Charlotte area, contact me direcly at 704-839-6005 or email: yourcharlotterealtor@gmail.com

Shopton Square~ Coming To Steele Creek

Yes, you've heard right!! New development currently under construction Shopton Square located in the Steele Creek area of Charlotte,NC adjacent to intersection NC-160 and I-485.

This beautiful upscale housing area is surrounded by over 45 residential developments within 5 miles. The 38,000-square-foot anchor, the center includes 29,000 square feet of small retail space, Bloom grocery store and CVS drugstore.

Steele Creeks Community of Berewick

The beautiful community of Berewick is located within the Steele Creek area of Charlotte, NC. In honor of their heritage, a group of Scots settled along the shores of the Lake Wylie where the commmunty of Berewick graces the same shore.

Shea Homes offers Tradition series homes, which include brick fronts (per plan), 9’ flat ceilings, brushed nickel hardware, 42” cabinets, granite countertops and other fantastic standards! Beautiful open spaces and neighborhood parks are interspersed between villages that connect to the Berewick Manor clubhouse.



Brand new homes in this community are still available for purchase.


If you are looking to live in a fabulous community that offers an enormous amount of amenities, Berewick is the community for you and your family. Residents of this desired community will enjoy the pleasures of the nature, walking trails lead to the planned 195-acre park. The Berewick District Park will have over 3 miles of trails including a mountain bike trail, soccer fields, volleyball court, basketball court, a dog park and even exclusive neighborhood jr olympic size pool and playground.





City:Charlotte, NC
County:Mecklenburg
School District: Charlotte-Mecklenburg
Price Range:$214,990 - $390,006
Square Feet:2,925 - 3,624
Home Types: Single Family


Convenient to Lake Wylie
Convenient to the Carolina Place Mall
Close to YMCA
Near the intersection of I-485

New shopping development just minutes away...Shopton Square coming soon!!


For more information, contact me!! Visit my website or email yourcharlotterealtor@gmail.com for any questions. Reclocating? Allow me to be your advocate to Charlotte, NC and the surrounding area.

Don't Miss This Opportunity!!

The media and news constantly inform you about the negative content regarding the real estate market. They never tell you all the good incentives that current homebuyers have available to them today like the $8000.00 tax credit, free credit repair programs or down payment assistance programs that could intrigue potential homebuyers. Several people want to know if this is a good time to buy or should I wait

The housing market is currently in a cyclical downturn, and conditions are ideal to purchase a home, especially for first-time buyers. Here's why:
Interest rates are at historical lows
Home prices have decreased
There is a large inventory of homes on the market to choose from
An $8,000 tax credit is available to qualified first-time buyers who purchase before Nov. 30, 2009.
Some states are offering special short-term tax credit loans to help buyers with upfront closing costs or downpayments.

The best way to build household wealth is to own a home. Once you become a home owner, you are able to take advantage of the generous tax deductions that homeownership offers, and you begin to build equity in your property. As your property builds in equity, you can use those gains to sell your starter home and afford to move into a bigger house.

With so many homes on the market to choose from, your best strategy may be to scale back expectations for your dream starter-home. Instead of trying to buy a 2,000 square foot home, consider shopping for a 1,500 square foot home.

Rents, along with the cost of living, will always continue to climb. So no matter what conditions in the housing market are, the sooner you make the jump from renter to home owner, the quicker you begin to create and build up wealth for your family. After a few years, you will be able to leverage this investment and buy a larger house. (Information provided by: NAHB)