Jeremy Walsh Real Estate

Filing for bankruptcy or home foreclosure can be a very devastating time in your life. But it doesn’t have to be a barrier between you and home ownership. No longer is it impossible to buy a home after a foreclosure or bankruptcy. Here are a few things to consider.

• It will take a while to re-establish your FICO credit score.

• You will most likely need to pay a higher interest rate to get a bankruptcy home loan.

• If you are attempting to get a mortgage loan less than 2 years since the time of discharge, you will NEED a good payment history since your bankruptcy.

• You will NEED a down payment for your new home.

Buying a home is a huge financial investment. And if you have a less than financially stable history, you will need to prove to your lender that you can be trusted. One way to do this is to improve your credit scores. So here are a few ways to help you re-build your credit:

• Do not rush into buying a home after bankruptcy.

• You may find it hard to get an unsecured credit card. In this case, consider applying for a secured credit card. This type of card uses the amount of money in your savings account to determine your credit limit.

• Installment loans: These can include personal loans, student loans and mortgage loans and will help to build your credit.

Remember, while filing for bankruptcy or home foreclosure may make it harder to buy a new home in the future, it does not mean an end to your days as a homeowner.

If you have any questions, please contact Jeremy Walsh Real Estate by calling 443-610-5722 or click here today!

You can also follow me on Facebook, Twitter and LinkedIn as well!

Sources:

Buying a home after bankruptcy or foreclosure

Last week we looked at several Important Questions to ask BEFORE House Hunting. This week we are going to examine Important Questions to ask WHEN House Hunting. These questions include:

1. What kind of house are you looking for? I recommend making a detailed list of things you are looking for in a house. These could include the size of the house or yard, the number of bedroom or bathrooms, the use of public water or well water, etc. Whatever is important to you should be on the list. Buying a house is a huge investment so you should not settle for anything other than your dream home. Additionally, having a list of wants/needs will also help your real estate agent find homes for you to look at.
2. Where do you want to live? This might seem like an obvious questions, but many homebuyers do not actually research the area where they buy. This is one of the main reasons for buyer’s remorse when it comes to home buying. Even though you may be in love with a house, you still need to be conscious of the neighborhood in which it is located.
3. What is the school system like in that area? This is a very important question to ask if you have or are planning to have kids. Furthermore, the quality of schools in your area directly affects your property value. This questions ties in nicely to #2. Remember, you are not just buying a house…you are buying into a neighborhood.
4. What are home prices like now? Knowing what other homes in your area have been valued at or sold for will help you assess the value of your desired home.
5. What is the housing market like? How long are homes staying on the housing market? This, just like #4, directly influences your negotiating power. The longer a home is on the market, the more leverage you have when negotiating.

If you have any questions, please contact Jeremy Walsh Real Estate by calling 443-610-5722 or click here today!

You can also follow me on Facebook, Twitter and LinkedIn as well!

Sources:

15 Questions to Ask Before Buying A House HomeBuyingInstitute.com

Buying a home is not an exact science by any means. But there is a formula that can help you along the way, a formula that involves asking the right questions. Now you may be wondering what the right questions are, so let’s dive right into it.

1) Is this a good time to buy a home?

Well, this depends on several factors: housing market, funds, and obtaining an affordable mortgage loan. What is the housing market like? Do you have sufficient funds? Can you obtain an affordable mortgage? If you can find a happy medium between these three factors, than you are probably ready to buy a home.

2) Are you in a place in your life where it makes sense to buy a home?

Ask yourself a few questions:

• How well have you managed past debts?

• Will homeownership improve your lifestyle or diminish it?

• Have you saved up enough money for your down payment, closing costs and other expenses?

• How stable is your employment situation?

If you can answer the above questions and still feel comfortable buying a home, you are probably ready.

3) How much of a house can I afford?

You must establish a comfort zone for yourself. Examine your monthly net income against your monthly expenses and determine how much you can afford every month on a mortgage payment. This should give you a fairly good idea of the amount you can afford to spend on a home.

4) What is your debt to income ratio (DTI)?

This is a comparison between the amount of money you make every month and the amount of money you spend on existing debts. You would ideally like this ratio to be below 35%. Once you pass that number you begin to run into problems.

You can calculate your DTI by figuring out home much of your monthly income goes towards your debts. So if you spend a quarter of your income paying off debts, your DTI would be 25%. It’s that simple.

If you have too much debt in relation to your income, you will not get approved for a mortgage loan.

5) What is your credit score?

Your credit score can either make or break your chances to obtain a loan. For this reason it is important check your credit, identify any problem areas, and fix them. You should do this at least a month before applying for a loan.

Check out our blog on Simple Ways to Improve Your Credit Score.

Hopefully these questions have helped you determine if you are ready to start house hunting or not. If you are ready, check back next week for our list of important questions to ask WHEN house hunting.

If you have any questions, please contact Jeremy Walsh Real Estate by calling 443-610-5722 or click here today!

You can also follow me on Facebook, Twitter and LinkedIn as well!

Sources:

15 Questions to Ask Before Buying A House HomeBuyingInstitute.com

Your credit score will directly affect your home loan. The better your credit, the less expensive your loan will be. Getting a loan that suits your situation at the best possible price is essential in the home buying process. So here are seven ways to help boost your credit rating.

1. Know your score: Based on if and when you have paid loans, credit card bills, and other debts, your credit scores ranges from 300-850. The higher, the better. You’ll need a score of at least 620 to qualify for a home loan and 740 to get the best interest rates and terms.
2. Correct errors: If you notice an error in your credit report, notify the credit-reporting agency as soon as possible. Be sure to send documents that support your case. Also write to the company, or debt collector, that reported the incorrect information to dispute the claim. Make sure you are then copied in on any materials sent to the credit-reporting agencies.
3. Pay bills on time: Even just a few late payments can really damage your credit score. Conversely, paying your bills on time is the easiest way to improve your credit score.
4. Use credit carefully: Paying your credit card bill IN FULL every month is another good way to boost your credit score. If you cannot afford to do that, pay as much over the minimum payment as you can.
5. Take care with the length of your credit: The longer you have had and managed a credit card responsibly, the better.
6. Don’t use it all: Credit scores are also based on how much credit you use compared with how much you’re offered. Using $1,000 of available credit will give you a lower score than having $1,000 of available credit and using $100 of it.
7. Stay patient: Your credit score will not drastically improve over night. It takes time.

If you are planning to buy a house in the near future, you should really start improving your credit score as soon as possible.

If you have any questions, please contact Jeremy Walsh Real Estate by calling 410-729-7700 or click here today!

You can follow me on Facebook, Twitter, and LinkedIn as well!

Sources:

7 Tips for Improving Your Credit LiveBaltimoreCity.com