If you have ever looked at your credit score recently? Or the main question is have you looked at what is required now in order to buy a house? 640! Yep you read that correctly, all investors are now requiring 640 credit scores. ALL THREE credit scores higher than a 640. Now the government and Fannie Mae and Freddie Mac are still saying anyone above a 600; but does it really matter what the government says, if investors are not buying any loans with a purchaser who has less than a 640. So now lenders can not sell their loans to investors if they approve a buyer with a score below a 640. What does this mean in ENGLISH?
If you are looking to purchase a home, you must have great credit. Check your credit score before you even think about buying a home. I understand the housing market was bad, because everyone was approved. Just two years ago I was doing loans with 540 scores, but this is a dramatic change. Basically this is going to assure that if you are buying a house, than you WILL be able to afford it AND MAKE PAYMENTS and the banks are going to make sure of that. There are two things you can do to help yourself in this situation.
1. CALL JOHN PAYNE AT FIRST NATIONAL BANK. THEY ARE STILL DOING 620 SCORES
2. BUY CASH
and the number one thing you should NOT do is to pay someone to fix your score. If you want free advice and help, call a lender or myself. All the companies out there that say they can fix your credit for $XXXX are all there to make a quick buck and will stay around as long as they can while the requirements are high.
Johns number is :972-673-1909
My number is: 972-322-1717
Tuesday, November 16, 2010
Thursday, September 2, 2010
Where are People Moving...Where can People afford to Live
Now that the census is complete, statistics are coming out. With the national average of home prices dropping, where can people get a solid job and afford to live? Many things are considered when these statistics are put together, but the one thing that is most accurate are the actual numbers. Numbers of people moving in to a particular state and numbers of people actually moving out of a state. (Or in this economy being forced out). Out of the top 10 states that have an increase in population, Texas is number 9; ranking in with a 55.4% increase in population during the year 2009. The census even shows that Texas actually brought in the largest influx of people. In terms of the total number of inbound and outbound moves, Texas ranked second only to CA.
Okay, so Texas is a large state, so you would expect large numbers, but Wyoming ranked 3rd in the highest percentage of increased population! Lets be honest, Wyoming? Whats there? Job? Big cities? I will let you think about that.
MSN.com constantly puts Texas in the top ten places to acquire a job; so with the housing market staying stable, at least in TX, and job market being one of the best in the US, why wouldn't you want to be one of the numbers? Move to Texas now so we can be number one!
Okay, so Texas is a large state, so you would expect large numbers, but Wyoming ranked 3rd in the highest percentage of increased population! Lets be honest, Wyoming? Whats there? Job? Big cities? I will let you think about that.
MSN.com constantly puts Texas in the top ten places to acquire a job; so with the housing market staying stable, at least in TX, and job market being one of the best in the US, why wouldn't you want to be one of the numbers? Move to Texas now so we can be number one!
Tuesday, August 17, 2010
HOW TO GET THE CREDIT SCORE YOU WANT.....
The following 2 items count for about two-thirds of your credit score:
Your Payment History
Having a long history of making payments on time on all types of credit accounts is one of the most important items lenders consider before approving a loan.
Owed vs. Available Credit
This compares the amount you owe versus the total amount of credit available. Your credit score can be lower when you use more than 50% of your available credit for each account. This is because when you are at the point of possibly maxing out your credit limits, lenders see you as a higher risk and more likely to have late payments in the future.
The following 3 items count for about the last one-third of your credit score:
Length of Credit History
A credit report containing a list of accounts opened for at least 5 years or more will help your credit score.
New Credit
Opening several new accounts in a short period of time can lower your credit score. Along the same lines, multiple inquiries may also lower your credit score.
Type of Credit Used
A mix of credit cards, retail accounts, finance company loans, installment loans and mortgage loans will help your credit score, as long as they all follow the above rules.
About 13% of Americans have a credit score of 800 or higher. If you were to look at their credit report, they generally have:
· 4-6 credit card accounts
· No late payments in the last 3 years
· At least one installment loan (mortgage or car) with excellent payment history
· An average of 3 years credit history and a few accounts with 5 years of good history
· Low number of credit inquiries (less than 3 in a 6 month period)
· No bankruptcies, foreclosures, judgments, charge-offs or collections
· Debt limits at no more than 35% of their overall credit limits per account
To sum it up, having a long history of on time payments, using the right mix of credit and not maxing out on available credit are the keys to having a great credit score.
Wednesday, June 16, 2010
Richardson Hoping to ADD more Parks, Green Space
Just a few things that are on the agenda for Richardson;
Parks Plan
Among the Priorities of Richardson's proposed master plan:
1. Rebuilding Heights Recreation Center
2. Rebuilding Arapaho pool (at Heights Center)
3. Acquiring and developing park land in Richardson Heights and Northrich neighborhoods
4. Building hike and bike trails and an indoor aquatics facility
5. Buying land for and developing a community "Central Park" possibly including open space, nature trails, and a dog park
Look for more updates and if you know of updates in your city PLEASE comments and add what is going on in YOUR CITY.
Parks Plan
Among the Priorities of Richardson's proposed master plan:
1. Rebuilding Heights Recreation Center
2. Rebuilding Arapaho pool (at Heights Center)
3. Acquiring and developing park land in Richardson Heights and Northrich neighborhoods
4. Building hike and bike trails and an indoor aquatics facility
5. Buying land for and developing a community "Central Park" possibly including open space, nature trails, and a dog park
Look for more updates and if you know of updates in your city PLEASE comments and add what is going on in YOUR CITY.
Wednesday, April 28, 2010
A Real Story...Can you afford a house?
The girl: Katie
Age: 24
Job: government contractor
Where she calls home: the Midwest
The place she wants: $127,000
Her sitch: Katie wants to buy a home, and she has her eye on one in particular: a foreclosed two-bedroom condo in a neighborhood she describes as "absolutely perfect."
Asking price: $127,000.
"Eventually I'd like to buy a townhome," she says, "but I see this as a great starting point".
Her finances: Katie makes about $38,000 a year doing government contract work, but her job isn't permanent and she has no health benefits -- she's still on her parents' insurance for now. She has about $40,000 in student loans, and sends $475 a month toward the balance. She also has about $20,000 in cash, and her parents would likely help her out with a down payment, if necessary. She rents an apartment for about $650 a month, not including utilities, and she's saving $700 a month toward an eventual down payment.
The expert's take: It might be a good time for Katie to take the home ownership plunge, says Boston financial planner Cheryl Costa. "She can probably more than afford this home," Costa says. But there are a few things she should keep in mind before plunking down her hard-earned savings. For one thing, Katie may not meet certain bank requirements. When you're purchasing a home, banks like to see that all of your home-related expenses (principal, interest, taxes and insurance) don't exceed 28 percent of your gross monthly income. And they typically require that all of your long-term debts (including the house) don't exceed 36 percent either.
If Katie picks up a 30-year mortgage for $127,000 at 5 percent, she'll owe $682 a month. Assuming about $150 a month for property taxes and homeowner's insurance, the house would cost less than $887, or 28 percent of her monthly pay. If she puts down a 10 percent down payment (or more), she'll have even more breathing room. The problem is her student loans: The additional $475 a month puts Katie's total debt over the 36 percent that some banks require.
How She Can Get in the Door: Get prequalified. Many banks buy into the 36 percent number, but not all. "Sometimes there's a lot of leeway on that," Costa says. But Katie won't know either way until she picks a bank and goes through prequalification. The bank will do a detailed analysis (including a credit check) and tell her how much she's approved to borrow -- or if she's approved at all. "You'll find out in advance whether they think the student loan thing is a deal-breaker," Costa says.
Extend her student loan terms. Katie's student loans are currently on a 10-year term, but if she extends them to 25 years, her monthly payments drop to $288 a month -- which would probably get her in under the 36 percent mark. If prequalification reveals that she needs to do that, it's a smart move. Then -- and here's the secret -- she can keep paying it off at the 10-year rate to nix the debt sooner. (So long as she can swing it.)
Put down as much as possible. "Nowadays, banks like you to have at least 10 percent and even 20 percent for a down payment," Costa says. Twenty percent for this condo is $25,400, which is more than Katie has in the bank, but if her parents can help her make up the difference, she should take them up on it. A down payment of that size could keep her from having to pay PMI, or private mortgage insurance.
But don't put down everything. Katie has $20,000 in savings, but that doesn't mean she should clean out her bank account. Home ownership comes with surprises, and it's wise to have some cash on hand, just in case. "They could raise condo fees," Costa says. "Or any number of unexpected things could happen that she might need some padding for." Consider a new gig. Katie's job now is contract work, meaning she has no guarantee that she'll still be employed when the contract ends. "If she were to lose her job, she's kind of screwed," Costa says. "If she really senses that her job is uncertain, I'd encourage her to be looking for a new job before she commits herself to a mortgage that she may or may not be able to afford."
Age: 24
Job: government contractor
Where she calls home: the Midwest
The place she wants: $127,000
Her sitch: Katie wants to buy a home, and she has her eye on one in particular: a foreclosed two-bedroom condo in a neighborhood she describes as "absolutely perfect."
Asking price: $127,000.
"Eventually I'd like to buy a townhome," she says, "but I see this as a great starting point".
Her finances: Katie makes about $38,000 a year doing government contract work, but her job isn't permanent and she has no health benefits -- she's still on her parents' insurance for now. She has about $40,000 in student loans, and sends $475 a month toward the balance. She also has about $20,000 in cash, and her parents would likely help her out with a down payment, if necessary. She rents an apartment for about $650 a month, not including utilities, and she's saving $700 a month toward an eventual down payment.
The expert's take: It might be a good time for Katie to take the home ownership plunge, says Boston financial planner Cheryl Costa. "She can probably more than afford this home," Costa says. But there are a few things she should keep in mind before plunking down her hard-earned savings. For one thing, Katie may not meet certain bank requirements. When you're purchasing a home, banks like to see that all of your home-related expenses (principal, interest, taxes and insurance) don't exceed 28 percent of your gross monthly income. And they typically require that all of your long-term debts (including the house) don't exceed 36 percent either.
If Katie picks up a 30-year mortgage for $127,000 at 5 percent, she'll owe $682 a month. Assuming about $150 a month for property taxes and homeowner's insurance, the house would cost less than $887, or 28 percent of her monthly pay. If she puts down a 10 percent down payment (or more), she'll have even more breathing room. The problem is her student loans: The additional $475 a month puts Katie's total debt over the 36 percent that some banks require.
How She Can Get in the Door: Get prequalified. Many banks buy into the 36 percent number, but not all. "Sometimes there's a lot of leeway on that," Costa says. But Katie won't know either way until she picks a bank and goes through prequalification. The bank will do a detailed analysis (including a credit check) and tell her how much she's approved to borrow -- or if she's approved at all. "You'll find out in advance whether they think the student loan thing is a deal-breaker," Costa says.
Extend her student loan terms. Katie's student loans are currently on a 10-year term, but if she extends them to 25 years, her monthly payments drop to $288 a month -- which would probably get her in under the 36 percent mark. If prequalification reveals that she needs to do that, it's a smart move. Then -- and here's the secret -- she can keep paying it off at the 10-year rate to nix the debt sooner. (So long as she can swing it.)
Put down as much as possible. "Nowadays, banks like you to have at least 10 percent and even 20 percent for a down payment," Costa says. Twenty percent for this condo is $25,400, which is more than Katie has in the bank, but if her parents can help her make up the difference, she should take them up on it. A down payment of that size could keep her from having to pay PMI, or private mortgage insurance.
But don't put down everything. Katie has $20,000 in savings, but that doesn't mean she should clean out her bank account. Home ownership comes with surprises, and it's wise to have some cash on hand, just in case. "They could raise condo fees," Costa says. "Or any number of unexpected things could happen that she might need some padding for." Consider a new gig. Katie's job now is contract work, meaning she has no guarantee that she'll still be employed when the contract ends. "If she were to lose her job, she's kind of screwed," Costa says. "If she really senses that her job is uncertain, I'd encourage her to be looking for a new job before she commits herself to a mortgage that she may or may not be able to afford."
Wednesday, March 3, 2010
I want to buy a home and dont know where to start?!
Here is a simple list of key things that you need to do in order to make the process of buying a new home simple and easy. The process can be complicated, but with a little guidence the process can be fun and exciting. Read the below for a step-by-step process that will guide you through the process and make everything much simpliar.
1. Find a mortgage professional who you trust. Provide your financial information and get pre-qualified for a home purchase. A good mortgage person will help you determine not only what you can afford (or tell you what price range to search to stay within a specific monthly budget), but they will also help you ensure that you get the best interest rates. They may make recommendations on how you could easily lower your debt to income ratio or raise your credit score so that you get the best mortgage rates available.
2. Decide on what you want in your perfect home. Besides the obvious questions like # of bedrooms, consider some of these questions as you determine the right home for you: How far away do you want to be from work or family? How long do you plan to live in your next home?
3. Find a Realtor that you feel comfortable with and that you can trust. Work with them on your specific wants/needs. Your agent will provide advice throughout the process as well as send you home choices to view and tour properties with you. They will also assist you with negotiations, inspections, and attend closing with you. Don't ever pay a Realtor to represent you as a buyer - the sellers pay the real estate commission for the transaction.
4. Begin your home search. Start on-line with the help of your Realtor. Then view the homes that interest you. Once you find the right home, your Realtor will provide you with comparable sales data for that neighborhood and help you prepare your offer. Your agent will also help you through negotiations.
5. Once you are under contract to purchase your home, your Realtor will assist you with home inspections, selection of a home warranty company, and may help you with utilities, moving companies, and home owner insurance.
6. Your agent should be there with you throughout the entire transaction to help make sure that your move goes smoothly. After you complete and "close" the transaction you will receive your keys to your new home.
Of course there are other minor things that go on during the process and every situation has a unique circumstance, though with the right consultanting and the right realtor you will be please with your new home and a set of NEW KEYS!
1. Find a mortgage professional who you trust. Provide your financial information and get pre-qualified for a home purchase. A good mortgage person will help you determine not only what you can afford (or tell you what price range to search to stay within a specific monthly budget), but they will also help you ensure that you get the best interest rates. They may make recommendations on how you could easily lower your debt to income ratio or raise your credit score so that you get the best mortgage rates available.
2. Decide on what you want in your perfect home. Besides the obvious questions like # of bedrooms, consider some of these questions as you determine the right home for you: How far away do you want to be from work or family? How long do you plan to live in your next home?
3. Find a Realtor that you feel comfortable with and that you can trust. Work with them on your specific wants/needs. Your agent will provide advice throughout the process as well as send you home choices to view and tour properties with you. They will also assist you with negotiations, inspections, and attend closing with you. Don't ever pay a Realtor to represent you as a buyer - the sellers pay the real estate commission for the transaction.
4. Begin your home search. Start on-line with the help of your Realtor. Then view the homes that interest you. Once you find the right home, your Realtor will provide you with comparable sales data for that neighborhood and help you prepare your offer. Your agent will also help you through negotiations.
5. Once you are under contract to purchase your home, your Realtor will assist you with home inspections, selection of a home warranty company, and may help you with utilities, moving companies, and home owner insurance.
6. Your agent should be there with you throughout the entire transaction to help make sure that your move goes smoothly. After you complete and "close" the transaction you will receive your keys to your new home.
Of course there are other minor things that go on during the process and every situation has a unique circumstance, though with the right consultanting and the right realtor you will be please with your new home and a set of NEW KEYS!
Friday, February 26, 2010
MONEY 101 FOR TEENS
CONSIDER THESE WAYS TO TEACH THEM FINANCIAL MANAGEMENT
1. Model good money management. If you're mired in credit card, debt, your teen will notice.
2. Encourage your teen to get a job. This will provide disposable income and an opportunity to learn about the value of time and hard work
3. Show your teen how to bargain-hunt. You can often find same items at target, or simply checking internet sites like FROOGLE.com or other cost-comparisons sites
4. Require your teen to contribute to big purchases, such as car insurance
5. Avoid credit cards at least until your teen has demonstrated a high level of responsibillity. Plastic tends to add a sense of unreality about money.
6. Manage those cellphones provide a unique opportunity to teach your child about-obeying limits and the high costs of exceeding them.
7. Open an IRA for your child and contribute a percentage of each paycheck by offering to match the contributions
Just some ideas to get our teens in the right mind set about money. Who knows how much the government is going to be able to support them when they become our age!
CONSIDER THESE WAYS TO TEACH THEM FINANCIAL MANAGEMENT
1. Model good money management. If you're mired in credit card, debt, your teen will notice.
2. Encourage your teen to get a job. This will provide disposable income and an opportunity to learn about the value of time and hard work
3. Show your teen how to bargain-hunt. You can often find same items at target, or simply checking internet sites like FROOGLE.com or other cost-comparisons sites
4. Require your teen to contribute to big purchases, such as car insurance
5. Avoid credit cards at least until your teen has demonstrated a high level of responsibillity. Plastic tends to add a sense of unreality about money.
6. Manage those cellphones provide a unique opportunity to teach your child about-obeying limits and the high costs of exceeding them.
7. Open an IRA for your child and contribute a percentage of each paycheck by offering to match the contributions
Just some ideas to get our teens in the right mind set about money. Who knows how much the government is going to be able to support them when they become our age!
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