Secrets to Finding a Home in Any Type of Housing Market

 The ever-changing housing market will always keep the buyer and seller guessing. If you are a buyer, it is always nice if the market is a buyer’s market. Even when the market is up, down, or somewhere in between, professionals in the industry have some tips on how to buy a home in any market.

1. Help Your Offer Stand Out

In a seller’s market, there will almost always be multiple offers on the home you are making an offer on. To get ahead of the game, it is a good idea to get pre-qualified for a mortgage. This will give you a rough estimate of how much you can afford. To ensure that you are able to purchase the home you want to make an offer on, get a verified approval letter from your lender. This will let a seller know that you are a serious contender and you can go through with the offer.

2. Partner With an Experienced Agent

A local real estate agent will be able to battle for you in any kind of market. They have extensive knowledge in the local market and can also refer you to a local lender. You can go into a home showing with the knowledge of the comparable property selling prices in the area and an agent can get you into pocket listings. Pocket listings are usually sold privately and are not listed on MLS. Agents also keep up with one another, so your agent can get the scoop and help you make an informed decision on which way to go.

3. Check Out Affordable Alternatives

Your budget might not be in line with your dream home, so you may want to shift your focus. Focus on your must haves and share these with your real estate agent. If you can move into another area that is cheaper, that can also be a way to get the home of your dreams. To check out other areas, use a cost-of-living calculator which can help you compare housing costs, and other factors in different areas.

4. Sweeten Your Offer

You want to get your offer a second glance, so you want it to stand out. You don’t just have to work with the purchase price on a counter offer, you can also negotiate other factors. An example would be if a seller is still shopping for a home, you can rent back their home after you purchase it. This will make your offer more attractive over others.

Remember purchasing a home is a big deal no matter what kind of housing market we are in. Be sure to choose a lender and a real estate agent who will help you with the home buying process from start to finish.

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Tips and Strategies for Building and Managing Your Credit

 Good credit has lasting financial benefits but building credit can look like a huge task. The trick is the more you practice good credit habits, the better your credit will get. There are several things you can do to build, rebuild and improve your credit. Here is what you need to do to start the process.

Build Your Credit

One of the best ways to do this is to apply for a secured credit card. A secured credit card is guaranteed upfront by a cash deposit. If you deposit $500 then your credit limit will be $500. You will want to make payments on time and keep a low balance to ensure you are building your credit.

Another good way to help boost your score is to ask a family member to add you as an authorized user on their credit card. You will get a credit card with your name on it and the primary cardholder will set a limit on how much you can charge. This is a good way to manage a credit line.

A major loan like a student loan or car loan is reported to the major credit bureaus making this a great way to build up your credit. Paying your loan payments on a car or student loan will build good credit. Creditors like to see a history of on-time payments which shows you can manage your line of credit responsibly.

Keep Up Good Credit Habits

Make payments on time on everything such as your utility bills, credit card companies and other accounts. Also, you want to have different types of credits because having different types of credit improves your credit score. Accounts like cell phone bills cannot be included.

Don't just apply for a card and let it sit, use it on a regular basis. This keeps your credit utilization low. Your credit utilization ratio is the percentage of your available credit that you actually use.  For example if you have a $1,000 credit limit, ty to keep your balance under $300 which is around 30% of your credit limit.

Get Your Credit Back on Track

To do this, you need to make sure your credit report does not have any errors. Knowing your credit score is a big plus to having an idea of your financial holdings. Getting a credit report from one of the credit bureaus will show you your credit activity, your credit history, and the status of your accounts. If there is an issue or a change in your financial situation, contact a creditor directly. They will work with you to create a payment plan.

Overall remember, that the best way to handle your credit is to live within your budget and avoid bad credit. If you do find yourself with bad credit, catch the problems early.

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Freddie Mac Wants To Help Renters Build Up Their Credit Through

 Renters now have a chance to use their rental payments to help build their credit scores. Freddie Mac has a new program that allows renters to use their on-time monthly rent payments to build up their credit. This is good news for the renters but also for the owners or managers of rental properties as an incentive. Property owners or rental managers can now report on-time rental payments to the credit bureaus.

This new program's purpose is to help those who do not have a credit score. It is reported that 45 million U.S. adults have no credit score. In fact, less than 10% of renters currently see their on-time rental payment history reflected in their credit scores. This is preventing many U.S. adults from getting some of the best mortgage rates in order to purchase a new home.

“Rent payments are often the single largest monthly line item in a family’s budget, but paying your rent on time does not show up in a credit report like a mortgage payment,” says Michael DeVito, CEO of Freddie Mac. “That puts the 44 million households who rent at a significant disadvantage when they seek financing for a home, a car, or even an education. While there remains more to do, this is a meaningful step in addressing this age-old problem.”

Esusu Financial Inc. technology is used by Freddi Mac to report rental payments and rental data to all three credit bureaus. When a renter misses a payment, it will automatically unenroll renters. As an incentive, Freddie Mac will allow closing cost credits on multi-family loans to those who chose to use the Esusu platform.

“At present, the most common way for rents to be reported to the credit bureaus is when there is a missed payment that has gone to a collections agency,” says Alexis Sofyanos, senior director of Equity in Multifamily Housing at Freddie Mac. “Freddie Mac wants to flip that script, so that renters who pay their rent on time and in full each month get credit for doing so, while also putting in safeguards for the most vulnerable.”

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