Credit Score Explained How to Build it Up

Credit Score Explained

In this article we’ll explain how your credit score is arrived at, why your credit score is important and how you can improve it, it is very important to have good credit if you are buying a house even employers are looking at credit scores to screen applicants

There are businesses that exist solely to scrutinize your credit history. Credit card companies and other lenders rely on this information, so your credit score determines your chances to borrow money — and how favorable the terms will be.

The three major credit-reporting agencies—Equifax (www.equifax.com), Experian (www.experian.com), and TransUnion (www.tuc.com)—offer reports to you by mail or via the Internet. Order one from each; you should give your credit report a yearly checkup.

Credit scores can range from 200 to above 800. Scores below 620 are considered risky; 720 and above earn excellent rates and terms.

There are five categories used in determining a credit score:

l Payment history (35% of score): Late payments and amount owed are the two areas scrutinized most closely.

l Amount owed (30% of score): Large outstanding balances do not necessarily damage your score. The significant factor is the percentage of total available credit you’re using on your credit cards. Consolidating many small credit card balances onto one card actually causes your score to go down.

l Length of credit history (15% of score): You need credit to get credit, so there’s no way to improve this part of your score other than to wait.

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l New credit (10% of score): Applying for too much new credit in a short period of time is a common and costly mistake. Your score drops from too many credit requests in a short time.

l Types of credit (10% of score): This considers the overall mix of credit —loans, mortgages, credit cards, etc. Unfortunately, scoring companies won’t disclose how accounts are weighted.

Lenders receive your score and “reason codes,” so examine these reason codes; they’re the keys to improving your score. When you get your report in the mail, you'll also want to review the following items:

Check that all items are correct. Notify the credit bureau in writing of inaccuracies. Use certified mail to send them copies of documents that dispute the incorrect entries. They have 30 days from receipt to adjust or verify the data.

It’s possible that someone else’s information might be attributed to you. You have an obligation to correct the information.

Look for inactive accounts. Close any accounts you don’t use.

Check for late payments. Request that those older than seven years be removed.

Verify and update your accounts and account numbers.

Verify your address and Social Security number.

Wait to Buy Big Ticket Items Until you Buy Your Home

Cashback Credit Card Capital One get $500 see Details

If you plan on purchasing a home wait until you buy it before buying big ticket items on credit because this can negatively affect your credit big time.

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How to Get your Home to Appraise Higher

Unfortunately we can't just say my hose is worth $$ Because I Slept Here! Banks will only lend based on what your house is worth.

It may seem that homebuyers and sellers don't agree on much, but they share one important concern: that the transaction is successful. This comradery is never more evident than during the appraisal process. It's only natural, since the results of the appraisal can send the deal spiraling out of control.


Appraisers consider many factors when determining the worth of a home. While some of these, such as location, can't be helped, there are things a homeowner can do to ensure that the home is appraised for maximum value.

1. Information is King

Appraisers don't spend a lot of time in the home. In fact, Brian Coester, chief executive of appraisal firm CoesterVMS, tells CNBC that the interior inspection typically takes 30 minutes or less.

"After inspecting thousands of homes, it does become quite easy to quickly assess the amenities in a home," reiterates Ryan Lundquist on Sacramento Appraisal Blog. That isn't much time to make a good first impression, so line up those ducks in advance of the appraiser's visit. The first one should be a packet of information that you can hand the appraiser as he or she speeds out the door after the inspection. This packet should contain not only the basics about your home but anything that will help back up the buyer's offer.

Include a fact sheet about the home with the address, the year the home was built, the square footage, number of bedrooms and bathrooms, and the size of the lot. Also include a listing of recent sales in the area, especially if you know of any for-sale-by-owner homes that have sold or homes that sold for less than they should have for any reason. For example, a home may have been sold to a relative, or the owners may have sold quickly to take a job out of town. Yes, the appraiser has access to recent home sales, but there's always a chance he or she may miss something.

Create a list of any improvements you've made to the home. List them by date and include contact information for the contractor who did the work.

2. If It's Broken, Fix It

The appraiser will assign the home with what is known in the business as an "effective age."

It's largely based on the condition of the home and how well it has been maintained. This age may be older or younger than its actual age. "Say you have a cracked window, thread-bare carpet, some tiles falling off the shower surround, vinyl torn in the laundry room, and the dog ate the corner of the fireplace hearth, these items could still add up to an overall average condition rating as the home is still habitable, however your effective age will be higher resulting in comparable being utilized which will have the same effective age and resulting lower value," Doreen Zimmerman, an appraiser in Paradise, California, tells the Wall Street Journal.

Fix anything that will age the home in the eyes of the appraiser.




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3. Give the Home a Quick Cleaning

Most appraisers will tell you that it doesn't matter if your home is clean or dirty - it has no bearing on its value. We, on the other hand, know how illusions can sell, and if a clean house gives the illusion that the home has been well-maintained, what harm can it do to clean it before the appraiser's arrival? I don't know about you, but before I trade in a car at the dealership, I give it a good cleaning.

"Things like overgrown landscaping, soiled carpeting, marks on walls - those do affect value and are part of the property's overall condition rating," Dean Zibas, of Zibas Appraisal in San Clemente, California, tells the Wall Street Journal.

While some things impact a home's value more than others, the bottom line is that the process can vary by appraiser. Anything you can do in the three areas listed above has the potential to streamline the appraisal process and increase the value of your home. Plus, going through these steps prior to listing your home will only help increase the number of potential buyers. And ultimately, selling your home is what it's all about.

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Visit our Website:  www.SouthBrowardHomesbyTony.com

Antonio Ortega LLC Licensed Real Estate Professional

Text or Call 954-648-6095

Global Luxury Realty, LLC

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Broward Homes for Sale, Broward Property, CMA Home Value my Home, Plantation, Davie, Cooper City, Tamarac, Sunrise, Weston, Fort Lauderdale, Pembroke Pines, Hollywood, Miramar.

How to Choose the Right Home in Broward

It pays off to prepare in advance as in narrowing it down to the city and area you want to live in.
Looking for the right home can be a daunting process for first time buyers and seasoned vets alike. From the style of the house to the type of appliances, there are countless factors that can go into such a big purchase. The following short checklist outlines the most important things you should think about when you're on the hunt for a new home. 

1. Define your budget: 
It's never fun to fall in love with a house that you can't afford. Avoid the heartbreak by taking the time to analyze your financial situation before you begin the search. Start by reviewing your credit score, monitoring your debt and choosing an appropriate down payment. Meeting with a financial professional can help you get an accurate picture of your financial situation and the loans you are eligible for. 

Looking at your debt-to-income ratio is one of the ways that creditors establish how qualified you are for a mortgage loan. Your debt-to-income ratio is determined by taking your monthly debt (think current mortgage payments, student loans, car loans, etc.) and divide them by your gross monthly income. Ideally, you want to keep that ratio at 43% or lower. According to the Federal Consumer Finance Protection Bureau, "studies of mortgage loans suggest that borrowers with a higher debt-to-income ratio are more likely to run into trouble making monthly payments. The 43 percent debt-to-income ratio is important because, in most cases, that is the highest ratio a borrower can have and still get a Qualified Mortgage." 

Don't skip the down-payment analysis! A huge factor in getting the best mortgage rate relies on how much cash you are able to put down initially. The rule of thumb has been to put 20% down as a minimum. Anything below the 20% rule will usually require mortgage insurance and end up costing you more on the loan long term. Determining the right path for you will require you to analyze your own situation—your budget, timeframe and any other factors involved in figuring out your financial capacity to save and put money away for your new home. 

2. Your Must-Have List: 
Always search for homes that meet your "must-have" list. A must-have list encourages you to write out exactly what you need in a new home and will significantly aid in narrowing down the scope of your search, especially when searching with another person. This list will also foster communication on critical aspects of your new home that might not have been discussed previously, and help you identify requirements that may be in conflict with each other. 

Focus your list on the high-level, pricey aspects of a home. Minor changes such as painting and smaller renovation projects can be worked on down the road, but changes that add up in time and money should be avoided (think kitchen remodels or adding another bathroom). Narrowing down your search to homes that don't require major changes will help ensure you choose a home that is within your budget. 

If you are struggling on where to start, think about what type of home you want to live in–Single Family or Townhome/Condo? How many bathrooms and bedrooms do you need? Do you want a fireplace or pool? What's the minimum lot size you would be comfortable with and do you require a garage? What about air conditioning? 

Keep your list short and sweet–try to keep your must-haves on the shorter side by focusing on major requirements and ranking them by importance. Prioritizing your list will help when it comes to decision-making time, as selecting a home will often require some flexibility. Your list will provide you with an easy way to determine which aspects you can compromise on and which are red flags telling you to move on. 

Compromise can be hard, but don't let small things completely take a home off of your short list. Remember, minor changes such as painting and smaller renovation projects can be worked on down the road, however, if there are a lot of these things the costs of those projects can add up. Focus on the minor modifications that you feel comfortable changing. 

3. Location, Location, Location! While the importance of location is often a no-brainer, the location of your potential new home serves multiple purposes. Location will impact your daily life and happiness as well as your home's value down the road. 

When looking at location in terms of resell value, you want to look at a multitude of things: school districts, crime stats, and the neighborhood & community. A little research can answer most of these questions, and this website offers Market Insider, a tool to give you details on all these factors and more! Besides looking at the current stats and trends, take this information and think about what the value of the area might be in 5 or 10 years when you potentially could resell your home. 

Along with the resale value, analyze the location of a home from the perspective of your wellbeing and happiness. Things such as your daily commute, surrounding noise, and community will greatly shape your experience in the home. 

Along with this checklist, seeking guidance from a professional is always a good idea! A realtor like me can offer a wide array of skills and expertise, from the showing of a home to the endless paperwork. You can count on me to guide you through the process and assist in your home buying decisions. 

Finding the right home might not necessarily mean finding the "perfect" home, but rather, finding the right home for you to make your own. Hopefully this checklist provides you with a guide to start your journey towards the right home. When you're ready to start looking, don't hesitate to give me a call!

How Much will my Broward County, FL Home be worth in 5 years?

In the period of time from 2018 to 2023 Residential Real Estate Prices increased by a whopping 20% per year or close to 100% by 2023.

Is as though the world has taken notice and every one wants to move to Fort Lauderdale and nearby cities!

Going with a very conservative appreciation rate for Homes of 3.5% per year you can expect a $500K Home to appreciate to:

5 years $594K

10 years $706K

20 years $1 Million

Due to low interest rates and other issues home values in Broward County FL increased by at least 20% in 2021, so as you can see this is a conservative estimate of future value, we might get another interest rate decrease soon, we’ll have to wait to see how the home market will react, it is impossible to predict the future, we can only look back.

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Antonio Ortega LLC Licensed Real Estate Professional

Text or Call 954-648-6095

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Home Inspections Broward Buying a Home

Should I Order a Home Inspection

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Atop the long list of items to do when buying or selling a house is the home inspection. But what is involved? How much does it cost? Why is it done in the first place? It’s important to understand what a home inspection entails and how it affects the sale of your home or the purchase of a new one. The more you know, the less likely you are to get ripped off or taken by surprise.

I have seen home inspections benefit the Buyers time and time again.

What is a Home Inspection?

First, let’s clear up a commonly misunderstood point: a home inspection is not the same as an appraisal. An appraisal is an estimate of a property’s overall market value. A home inspection is much more detailed and practical. It is also not a code inspection and therefore does not report on building code compliance or give a “passing” or “failing” grade. It is defined as an objective visual examination of the structure and systems of a home by an impartial, neutral third party not related to the buyer or seller. In layman’s terms, it shows you what’s wrong with the property you want to buy or sell and if it is serious enough to prevent a sale.

The three main points of the inspection are to evaluate the physical condition of the home, including structure, construction and mechanical systems; identify items that need to be repaired or replaced; and estimate the remaining useful life of the major systems, equipment, structure, and finishes. Bottom line: a home inspection is to inform the buyer of any readily visible major defects in the mechanical and structural components, and to disclose any significant health or safety issues.

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What Does a Home Inspection Cover?

A home inspection includes a visual examination of the house from top to bottom. There are hundred of items a home inspection covers, including general structure, flashings, basement or lower level, framing, central cooling and heating, chimneys, plumbing and electrical systems, drainage, bathrooms and laundry facilities, foundation, common safety devices, fireplaces and wood stoves, kitchen and kitchen appliances, general interior, attic, insulation. ventilation, roof, and exterior.

An inspector cannot report on defects that are not visible. For instance, defects hidden behind finished walls, beneath carpeting, behind storage items and in inaccessible areas, and even those that have been intentionally concealed. Systems that are seasonally inoperable (swamp coolers, air conditioning, furnaces) will not be turned on during the inspection.

 How Do I Find an Inspector?

To hire an inspector, get recommendations from your Realtor, or from friends and family. If you don’t know anyone who has hired a home inspector, you can find home inspectors in the Yellow Pages category “Home Inspection Services.” When interviewing inspectors, be sure to ask for references and any memberships in professional associations. Find out about the inspector’s professional training, length of time in the business, and experience.

It’s a good idea to be present during the inspection for a couple of reasons: First, you can ask the inspector questions during the inspection. Also, the inspector will have the opportunity to point out areas of potential trouble, which will mean more to you if you see it with your own eyes than read it in the inspector’s report later. Many inspectors also will offer maintenance tips as the inspection progresses.

Is the Seller Obligated to Make Suggested Repairs?

The seller is not required to make any repairs, replacements or maintenance since this is not a code inspection. However, the buyer can use the inspection report as a negotiating tool. For instance, if certain repairs or replacements are made, the buyer might offer to pay more, or if they’re not, the buyer can bid lower.

Also, never allow an inspector to contract with you to make repairs he/she has suggested — this is a major conflict of interest, not to mention unethical. However, some inspectors do offer a guarantee or warranty on their service for an additional fee, although it is not a standard practice and not required.

 How Much Does it Cost and How Long Will it Take?

Remember that a thorough, accurate home inspection takes time. The last thing you want to do is to try to hurry the inspector along. The inspector’s most important priority is accuracy, and accuracy takes time. The chances of mistakes and missed conditions are much more likely the more the inspector rushes through. Expect your home inspection to take anywhere between two and five hours (allowing about one hour for each 1,500 square feet of living space over 3,500 square feet). Of course, older homes will take longer than newer ones.

Expect your inspection to cost anywhere from $200-$500 depending on size. The cost is worth it and may be one of the most important investments you make when buying a home.

Stay Safe and Healthy

                   
        

Visit our Website:  www.SouthBrowardHomesbyTony.com

Antonio Ortega LLC Licensed Real Estate Professional

Text or Call 954-648-6095

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