Improve Your Credit Score

Improve Your Credit Score



Suggestions on what you can do right now

A credit score reflects credit payment patterns over time, with more emphasis on recent information. Ways to improve a credit score generally include the following:

· Pay your bills on time. Delinquent payments and collections can have a major negative impact.

· Keep balances low on credit cards and other "revolving credit." High outstanding debt can affect a credit score.

· Apply for and open new credit accounts only as needed. Don’t open accounts just to have a better credit mix. It probably won’t improve your credit score.

· Pay off debt rather than moving it around. Also, don’t close unused cards as a short-term strategy to improve your credit score. Owing the same amount but having fewer open accounts may lower your credit score.



Know which items can improve credit scores the most

· Paying your bills on time is the single most important contributor to a good credit score. Even if the debt you owe is a small amount, it is crucial that you make payments on time.

· Minimize outstanding debt, avoid overextending yourself and refrain from applying for credit needlessly. Applications for credit show up as inquiries on your credit report, indicating to lenders that you may be taking on new debt. It may be to your advantage to use the credit you already have to prove your ongoing ability to manage credit responsibly.

· Pay your bills and wait. If you do have negative information on your credit report, such as late payments, a public record item (e.g., bankruptcy) or too many inquiries, you may want to pay your bills and wait. Time is your ally in improving your credit scores. There is no quick fix for bad credit scores.

One common question that many consumers have regarding their credit score involves understanding how very specific actions will affect it. However, it is impossible to provide a completely accurate assessment of how one specific action will affect a person’s credit score. For example, someone might ask if closing two of his or her revolving accounts would improve his or her credit score. While this question may appear to be easy to answer, there are many factors to consider. Simply closing two accounts not only lowers the number of open revolving accounts (which generally will improve credit scores), but it also decreases the total amount of available credit. That results in a higher utilization rate, also called the balance-to-limit ratio (which generally lowers scores).



How Long Does It Take to Rebuild a Credit Score?

Actually, you don’t rebuild the credit score. You rebuild your credit history, which then is reflected by your credit score. The length of time to rebuild your credit history after a negative change depends on the reasons behind the change. Most negative changes in credit scores are due to the addition of a negative element to your credit report, such as a delinquency or collection account. These new elements will continue to affect your credit scores until they reach a certain age. Delinquencies remain on your credit report for seven years. Most public record items remain on your credit report for seven years, although some bankruptcies may remain for 10 years and unpaid tax liens remain for 15 years. Inquiries remain on your report for two years.

Take good pictures

Why isn’t my home selling? We know, it's the economy, right? Partially, but not completely. Many homes sell within a few months, some in as little as a week. So what is the problem with the houses that don't sell? Ask any home stager, or look through the MLS ( Multiple Listing Services) pictures, and you will find the answer.
Assuming that the home is priced correctly and is in a good location, the reason it remains on the market could lie in the photos posted on the Internet. Since over 80% of potential home buyers begin their searches on line pictures of homes for sale are critical. If the photographs present the home poorly many buyers won't even consider visiting the house in person. The list below highlights just some of the problems displayed in pictures that are costing home sellers thousands of dollars. These examples are from actual listings.
• Too much furniture makes the rooms appear smaller and hides the home's features.
• Outdated or very large furniture. Clutter on kitchen and bathroom counters. (Please put the toothpaste in a drawer).
• Toilet seat left up. Dishes in sink
• A cluttered or messy office, can't even see the desk
• A bed with such huge lumps under the spread that it looked like a body was under it.
• Floral, cowboy, rooster, ivy or any wallpaper design that was from another decade.
• A big screen tv blocking a window.
• A tv left on when photographing the room. It just looks tacky.
Before listing your home look at the home thoroughly to avoid these mistakes

Home Selling Tip

Home Selling Tip.
Put new comforters on all of the beds.
Comforters are a lot like family heirlooms in that they tend to stick around for a really long time. Pick out some stylish, up to date comforters that fit the ambiance of each room.

6 Reasons Sellers should have their home Pre- Inspected

6 REASONS TO HAVE A PRE LISTING HOME INSPECTION!
So you are thinking of putting your home on the market. You have cleaned, decorated, painted the home and manicured the yard. But what about what you can’t see? Many sellers will opt to have a pre-sale home inspection done, prior to putting their property on the market. The benefits are many!
1. You will have a copy of the inspection to make available to buyers when viewing your home. They will feel more confident moving ahead, after reading a report and knowing the condition inside and out.
2. If repairs are needed, you can mark them on the report or include copies of invoices for those repairs. Be sure to get permits and hire qualified contractors, or the buyer will question the repairs.
3. You will save some money by knowing if there is any issue that needs attention. You can get it taken care of BEFORE going on the market. Buyers hire home inspectors after they have agreed on a price. If something comes up, you can’t factor it in to the price, like you would if you inspected prior to listing.
4. You have trust in the inspector you hire, not an inspector the buyer chooses. You have no control over who the buyer hires, and may differ with their opinion or their qualifications.
5. You have control over the contractor and price, should any repair be needed. For example, if it is determined that a new roof is needed now, you get it done on your terms! You can get a 3 tab shingle roof, and the buyer will be happy with a new roof. If the buyer is involved in the decision, they may want the more expensive option of a dimensional roof, or a certain color.
6. In the case of something that looks scary, like an older furnace, having an inspection on file that shows it has been checked and in good working order, may keep a buyer from passing on the home.
Can you see that having an inspection done prior to listing is a good idea for several reasons? The cost of home inspections run anywhere from $250-$500, depending on the size of the property.

5 Ways Sellers Can Minimize "Pet Factor"

5 Ways Sellers Can Minimize "Pet Factor"

Pets can make it difficult to sell a home, but there are several steps owners can take to minimize an animal's presence.



Boarding may not be an option, but owners should consider taking pets with them during showings, putting them in day care, or having a friend/relative/neighbor care for them.



Most importantly, sellers should ensure their dwellings are extremely clean by repairing scratched floors or chewed moldings, repainting rooms, cleaning carpets and removing other traces of their pets.



Finally, sellers should relocate feeding bowls, litter boxes and pet toys as well as ensure the yard is clear of animal waste.

Lowest Mortgage Rates Since 1950's

Lowest Mortgage Rates Since 1950's

The last time borrowers could get rates this low, every television was black and white. American's liked Ike. Thirty-year fixed mortgages dropped to 4.27% this wee. Freddie Mac also reported the 5 yr adjustable rate mortgage fell to 3.47%, and the 1 yr adjustable rate dropped to 3.4%. Buyers should take advantage of the current mortgage rate environment.

Work hard, play smarter.

Work hard, play smarter.
"In times of great stress or adversity, it's always best to keep busy, to plow your anger and your energy into something positive."
--Lee Iacocca
When I came across this quote from Lee Iacocca, it immediately became apparent to me how people might mistake Iacocca's advice as hard-nosed CEO's advice to channel negative energy into higher levels of productivity.
One of the greatly misunderstood American business values is determination. The idea of grit, self-reliance, and "buckling down" to meet a challenge is too often misinterpreted as a need to simply "work harder" in times of adversity.
You might be able to turn the sting of anger or weight of stress into motivation to make a change, but "doing more" isn't always going to be the most advantageous path in times of adversity. Iacocca doesn't say, "work harder," he actually only argues for focusing on "something positive."
That "something positive" might well be working shorter hours with better focus. Emerging research on personal and company productivity suggests that the time-honored workaholic's tradition of "longer hours doing more with less" doesn't result in higher levels of achievement.
In fact, a wide range of compelling evidence suggests that waves of concentration and effort are best paired with periods of positive recovery. Recovery may take the form of exercise, healthy food, naps, and other restorative, "non-work" activities which help us reset our focus, replenish our energy, and allow us to approach our challenges with a fresh perspective. (For an excellent read on this topic, check out Tony Schwartz' book, The Way We're Working Isn't Working.)
As everyone in real estate faces the challenges of a recession, it may be very tempting to preach the gospel of "just work harder," but giving in to what sounds good could ultimately be counterproductive to your success. Have you neglected to give yourself time to recharge, refuel, and reenergize yourself? Are you balancing hard work with healthy play? What's the "something positive" that will get you through?

Article written by Scott Levitt Oakley Signs & Graphics, Inc.


Something for us all to think about no matter what occupation we find ourselves doing.

Cookies and Flowers

Selling Tip: Finishing Touches
Bake cookies, light a fire, put out fresh flowers...these are common techniques to help create a feeling of welcome before open houses or scheduled showings. Talk with me about what aspects of your home are the most appealing and how you can take the extra steps to highlight them for potential buyers. Visit my website for more information. www.greencountyhomeguide.com

Buzz words with mortgage financing

Here are somethings to consider when thinking of buying a home.
Learn & Follow the 3Cs.
Location may be the buzz word in real estate, but capacity, character and collateral are the buzz words with mortgage financing.


Capacity - your financial ability to repay your loan;
Character - an examination of your credit history and history in paying previous debts; and
Collateral - the value of the home must appraise for at least the amount of the loan.
I highly recommend that you talk to your local bank to see where you are with the 3 C's before you go home shopping

Heres a couple of ideas to help sell your home

Monroe and Green County Wisconsin Real Estate by Scott Larson Here are ‎2 Things to help sell you home: Furniture arrangement – Instead of arranging your furniture against the walls, add visual square footage by first removing one or two pieces of furniture and pulling the rest away from the walls.
Fresh bedding – Make your bed an inviting focal point with an updated bedding set layered with neutral pillow shams, or extra comforter folded at the foot of the bed. Choose simple patterns.

Should I buy a house today?

Should I buy a house today?
A Home Is a Better Place to Raise a Family

Don’t take my word on this. When Fannie Mae asked current renters for the major reason to buy a house in their National Housing Survey 2010, these were the answers renters gave (they could pick multiple answers):

* 78% said it was a good place to raise children
* 75% said because they would feel safe
* 70% said because you have control of your own space

With interest rates under 4.5% you can own some homes for less than renting. Call me today and see how you can become a home owner.

Do you have cash reserves?

Cash Reserves

Buyers, when you apply for a mortgage loan, the lender is going to request your bank account information. They will check again just a few days before your closing date. They want to know how much money you have in the bank, and whether or not you can afford your closing costs. They also want to make sure you have enough to cover your first couple of mortgage payments. This is referred to as “cash reserves.” The amount needed will vary based on lender and loan program. Just know that the lender is going to scrutinize your liquid assets.

QUESTION: Should you focus more on your rate or getting a price reduction?

QUESTION: Should you focus more on your rate or getting a price reduction?

ANSWER: Price swings are sign of the times. For potential buyers who are waiting to see if home prices come down a little more, that means the wait could well cost you more money in the long run.



Let's look at an example: A homebuyer wants to buy a home that costs $300,000. But the buyer wants a better deal on the home, so he/she delays a transaction until the home is reduced by $10,000. If, in the meantime however, rates were to rise .75% to 6.00% and the buyer financed 90% of the purchase price, the amount of total payments over a 30-year term would be over $35,000 more than paying the $300,000 purchase price and locking in the 5.25% interest rate. In other words, the buyer would save $10,000 only to end up paying $35,000 more.



Now these prices and rates are just for the sake of example. But the point is that home prices are already very affordable...and rates are still at historic lows for now. So in the end, waiting for a home price to reduce may end up costing you much more than you expect if rates rise.

Save up for your home-buying

Saving, Why is this so important? Here is good reason to save up for your home-buying process:

1. Down Payment

When you buy a home, you’ll have to make a down payment of some kind. The days of “no money down” ended when our economy collapsed. Almost 100% of lenders today will require you to put some money down. The amount needed will vary, based on the type of loan you are using. With an FHA home loan, you can put as little as 3.5% down. With a conventional mortgage (one that’s not backed by the government), you’ll need to put even more money down. Many buyers aim for a 20% down payment, to avoid paying private mortgage insurance.

Save even More with lower intrest rates

Buyers who jumped to get the tax credit most likely received an interest rate of 5%-5.25%. That $8,000 is mild in comparison to the payment savings a 4.5% 30yr rate will generate over the life of a mortgage. Call me today to see some great homes. 608-214-9844

Why can't I buy a home?

First-time home buyers are often surprised by the total costs associated with buying a home. Some buyers don’t even realize that a lack of cash reserves can hurt their chances of getting a loan. But it happens all the time. In fact, a lack of up-front cash is one of the most common reasons for mortgage rejection. That’s why it’s important for future home buyers to start saving money early on.

Common Misconceptions About FHA Home Loans

Common Misconceptions About FHA Home Loans



FHA home loans are a popular financing strategy for home buyers. They’re especially popular with first-time buyers who don’t have much of a down payment saved up. But FHA loans are also commonly misunderstood. Here are some of the biggest misconceptions about these loans.

But first, a quick definition. An FHA loan is simply a mortgage loan that’s insured by the Federal Housing Administration. The FHA is part of the Department of Housing and Urban Development, better known as HUD. This government agency insures mortgage lenders against losses resulting from borrower default. This makes the lenders more inclined to use the program, and to give loans to people who might not otherwise qualify for a mortgage.

Myth #1: Anyone can qualify for an FHA loan.

Truth: Not everyone will qualify. Generally speaking, it’s easier to qualify for an FHA home loan than a conventional mortgage loan. But that doesn’t mean they’re available to everyone. In fact, the Department of Housing and Urban Development (HUD) has recently tightened up their lending standards for FHA loans. One of the changes affects people with low credit scores. If your credit score is below 580, you’ll have to make a larger down payment. If your score is way below 580, you probably won’t get approved for the loan. With good credit, you’ll still have to make a down payment of at least 3.5% to get approved. You’ll also need to document your income and expenses, to show that you can afford the monthly payments.

Myth #2: You can get an FHA loan with no money down.

Truth: In the current economy, you can’t get any kind of loan without making a down payment of some kind. The days of “easy credit” and “no money down” disappeared when the housing bubble burst. The minimum down payment for an FHA loan is currently 3.5%. And, as mentioned earlier, you’ll need a credit score of 580 or higher to qualify for the 3.5% down payment. If your score falls below that cutoff point, you’ll have to put 10% down.

Myth #3: FHA loans are safer, because the government will bail you out if you fall behind.

Truth: Wishful thinking. If you fall behind on an FHA home loan, you can be foreclosed upon — the same as any other type of loan. Remember, the FHA is not the one giving you the money. You must apply for one of these mortgages through an FHA-approved lender. The government just insures the lender against losses resulting from borrower default. So the lender can still foreclose on you, if you fail to make your payments. As an FHA borrower, you might have more workout solutions and modification options available, but that’s about it. The FHA will not “bail you out.” So make sure you buy an affordable house!