Mortgage California Blog

Mortgage News Roundup

July 10th, 2014

Real Estate Mortgage ApprovedWe hope you had a fun and safe 4th of July holiday. Today we’re going to look at some credit myths connected to buying a home, financial preparedness for disasters, and some tips on how to sell your home if it’s not selling as quickly as you’d like.

3 Common Home Buying Credit Myths

We often hear people asking about these. Zillow did a great job of exploring the truth behind these home buying credit myths.

Myth #1: You need perfect credit to purchase a home.
Fact: It is true that an individual’s credit score has an impact on the mortgage loan approval process and ultimately the resulting interest rate. However, perfect credit is not needed to secure approval for a mortgage loan. While credit scores can range widely, the higher your credit score, the more options you will have to find a mortgage with favorable interest rates.

Myth #2: Lenders have free rein in sharing your personal credit information.
Fact: Not so. For a lender to share your information with an affiliate (any entity that is involved in making, holding or investing in bank loans or credit extensions), generally you must first give your permission. State and federal privacy laws are in place to help protect your personal information.

Myth #3: Lenders only use one scoring model that determines creditworthiness.
Fact: There are a number of credit-scoring models used to determine credit risk in today’s marketplace. For example, many lenders use the VantageScore® as one model for determining credit worthiness. While scoring models vary, many of the same factors influence your credit score, including your payment history and your level of debt.

 

Eight Financial Safeguards If Disaster Strikes

In our disaster preparedness series, we talked about having a kit set up with some basics in case of an earthquake or other natural emergency. (And this weekend would be a great time to review your expiration dates and restock).

Yahoo! ran a great article on financial preparedness for disasters.

  1. Know exactly what your home or renter’s insurance covers.
  2. Create and keep an up-to-date written and photographic inventory of your home and possessions.
  3. Practice the Backup 3-2-1 Rule. (3 copies of a backup in 2 different formats and 1 should be offsite in a safe place)
  4. Protect original documents by placing them in a bank safe deposit box. (see the article for a detailed list of what should go in)
  5. Put certain essential records in a second portable waterproof/fireproof bag or box – your financial go-bag.
  6. Put enough cash in your financial go-bag for three days’ expenses for your family.
  7. Add a letter of intent to your financial go-bag in case you’re not there to help your family through a disaster.
  8. Be alert to scammers – natural disasters bring them out.

 

Tips for Sellers in a Buyers Market

And we know you’re always looking for more tips on getting a home in this seller’s market, but there are some areas out there that are a buyers market. So here’s the tips. Plus if you want to sell your house even faster, these tips may help you.

  • Know the competition
  • Consider pre-marketing your home
  • Make sure your marketing is mobile device friendly
  • Have lots of photographs
  • Know how to spend money smartly to get your home ready

 

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