Posts tagged "buying a house"

Trying to obtain a mortgage for buying a home today can be incredibly challenging even for those with good credit and it could become even more difficult before it gets easier. This has many home buyers turning to seller financing which can bring many benefits but also comes with its fair…

An incredible number of Americans have suffered damaged to their credit scores in the last few years while lending standards for home loans have become increasingly tougher. This doesn’t mean that you should give up on buying a new home by any means. Begin rebuilding your credit now and you could see your credit scores rebound and be able to buy a new home and get a mortgage sooner than you think.

There may be nothing you can do about recent bruises to your credit but what you do from here on out can make all the difference in your financial future and that of your loved ones. Love it or hate it, your credit is likely the most valuable asset you have.

Good credit isn’t just about the negative items you have. Often it is a matter of not having enough good credit to outweigh the bad. Negative credit will eventually fall off your report but rebuilding your credit is likely going to require establishing new lines of credit.

The good news is that banks have recently reported relaxing credit standards for consumer loans and credit cards. Those who have been hit the worst may find applying for secured credit cards and loans or in-store financing the easiest route. Just make sure that you manage it wisely and don’t get further in the hole.

To establish enough new credit to qualify for a mortgage loan you will need at least 3-5 accounts. The length of time they are open and high credit limit are important too. Just don’t apply for too much credit or you’ll lower your credit score further.

If you are still coming up short know that some select mortgage programs will accept alternative credit. This means carefully documenting your rental payments and utility bills, not just with receipts but a paper trail showing how you paid them.

5 Dumb Moves Buyers Make in Real Estate

1. Not first finding financing.
2. Low-balling
3. Buying without inspecting
4. Not having “outs.”
5. Not crossing “t’s” and dotting “i’s”

The True Cost Commuting

The closer you live to work, the more money you have for a house.  That’s common sense for most (we hope).

While the numbers on this info graphic are probably a stretch — they do illustrate the dynamic that even the smallest changes in our life (money spent on commute) can have on other areas of our life (our home).

moneyisnotimportant:

According to US census data, the size of the average American home in the 1950s was a modest 1,000 square feet. Today, the square footage has more than doubled to nearly 2,500.

It’s easy to get trapped into thinking that you need a bigger house.  The thing is, we’re like goldfish.  We expand to the size of our living space.  Because of this, it won’t be long before you feel like you’ve outgrown your new apartment or house.

Buying a new house and moving is so incredibly expensive.  So, if the only reason you’re moving is to have more square footage, be sure to give it a lot of thought before signing on the dotted line.

Whether renting is better than buying depends on many factors, particularly how fast prices and rents rise and how long you stay in your home.