Category Archives: home ownership

Boost your Credit Score

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Check out these 5 (Totally Legal) Tricks to Boost Your Credit Score Fast

So, you’ve decided next year is the year you’re finally going to buy a house. Congrats! But now you’re a little panicked because your credit score isn’t exactly going to make lenders swoon.  You’re not alone. The national average credit score is 695, while only half of consumers fall in the desired 700-plus range. Although you certainly can get a mortgage with that score, you’ll need a 740 or higher to get the best rates. And that point is not lost on potential home buyers, 45% of whom wait for their credit scores to improve before applying for a mortgage.  While credit history isn’t built (or, for that matter, destroyed) overnight, there are still some things you can do right now to boost your credit score—fast. Here are some sneaky yet totally legit ways you can improve that all-important three-digit number in record time.

Paying down your debt is the thing you can do that could have the biggest—and fastest—impact on your credit. Credit utilization (or the amount you can borrow versus the amount of debt you’re carrying) accounts for 30% of your credit score. And the more available credit you have, the better.

If you have the cash on hand, try to time your payments so you’re reaping the credit-reporting benefits.

“The easiest way to optimize your utilization is to use a credit card and pay your balance down to 1% of your credit limit right before your bank reports to the credit bureaus,” says Liran Amrany, founder and CEO of Debitize, a financial technology company that automates better money and credit habits. “You want to have positive utilization so it’s clear you are using the card, but otherwise want to be as low as possible,”

Not sure when your creditor reports? You could call them up and ask, or you can check your credit report. According to Amrany, you want to pay before the date last reported.

Estimated time for improvement: One month

2. Get your bills current

You hopefully already know that you have to pay your bills on time to get a good score. If you’re already late on a payment, pay that puppy ASAP for a quick credit boost.

“Because paying bills on time is the most important factor in a credit score, going from paying one or more bills late each month to paying all on time could show an improvement in one to two months,” says Kevin Gallegos, vice president of Phoenix operations for Freedom Financial Network.

Bonus: If you’re less than 30 days late and you can make the payment today, do it! Creditors don’t typically report until after the 30-day mark.

Estimated time for improvement: One to two months

3. Open a new account

Opening a new credit account can help in two ways.

First: “If you open up a new card, which increases your total outstanding credit line, your utilization should improve,” Amrany says.

Second: If you have only one type of credit card or a small loan, opening another type (like a store card) can help your “credit mix,” a term the credit bureaus use to indicate whether a person can handle different kinds of accounts.

But don’t go nuts—try opening just one new account, at least at first. If you apply for a card every time you’re asked whether you want 10% off your purchase today, you’ll take a hit on the number of recent inquiries . And that won’t look good.

Estimated time for improvement: One to six weeks, based on processing and reporting your new account

4. Become an authorized user

Have a responsible partner or family member? Becoming an authorized user on one of their accounts will let you piggyback onto their good credit history.

“The full history of the other account shows up on your credit report immediately,” Gallegos says. “And when this older, established credit account is added to your credit history, it results in an increase in the average age of accounts you’ve ‘managed’ (which also increases your credit score).”

Just be careful to make sure the person you choose actually pays his bills on time and keeps the debts low—just like good credit history, bad history will show up, too.

Estimated time for improvement: Immediately

5. Don’t bother with additional payment histories

A popular credit-boosting myth says you can add to your credit history (and improve your score) by calling your other providers—like your wireless provider or utility company—and asking them to report your payment history to your credit report. It sounded like a pretty good deal, so we asked the experts about it.

But alas…

“Each of the major credit-reporting agencies is making some changes to include more bill payments, albeit slowly. In general, though, most of the time, these types of payments only appear on credit reports when they are delinquent,” Gallegos says.

So, that one probably won’t work in your favor, but there are still plenty of things you can do now. House, here you come!

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 | Nov 22, 2016

Angela Colley writes about real estate and all things renting and moving for realtor.com. Her work has appeared in outlets including TheStreet, MSN, and Yahoo.

 

Important To-Do’s After You Close

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The moving frenzy never ends: Even after you close, the to-do lists drag on and on—endless pages of bullet points that keep you up at night when all you want is to begin your new life. Some of them are fun, like redecorating and buying new furniture.

Others, not so much.

“When you move into a new house, you’re more concerned with decorating and taking stuff out you don’t like,” says Kevin Minto, president of Signet Home Inspections in Grass Valley, CA. “But let’s not forget about the less romantic things that are mundane—but more important in the long run.”

Once you’ve got the keys, feel free to give yourself a break. You deserve it! But don’t rest on your laurels too long—and make sure to do these eight things right away.

1. Change the locks

Before moving even one tiny piece of furniture into your new home, change the locks—or at least have them rekeyed. It’s not that you don’t trust the sellers (who are, we’re sure, perfectly respectable and upstanding citizens). It’s that you shouldn’t trust everyone who’s had contact with those keys over the years, any of whom could have copied the keys for some unsavory purpose.

2. Change the alarm batteries

Making sure your fire and carbon monoxide detectors have fresh batteries may not seem like a pressing issue while you’re in the middle of a stressful move (and aren’t they all), but it’s the kind of thing that gets ignored and then forgotten. Better to deal with it now, when the home is empty and you can make a quick sweep of the house—without lugging a ladder around furniture.

3. Review your home inspector’s report

Can’t find your inspector’s report? Minto says reports are often filed with the escrow papers—but don’t wait until something goes wrong to pull them out. A good home inspector will outline the most important issues in their report, so use their expertise as a guide for your first few days of ownership. If they’ve marked anything as particularly pressing, make sure to handle it before moving in.

4. Find the circuit breaker

If you were there during inspection, you should know where your junction box is, but if you don’t, finding it “should be the first and foremost thing that should be attended to,” Minto says. During a move, when you’re plugging all sorts of electrical doodads into the wall, you don’t want to be lost in the dark hunting for that elusive metal box. (While you’re there, find the water shut-off, too.)

Then, get familiar: If it’s not already well-marked, have your spouse or another family member stand in different parts of the house while you flip different switches, and make a note of which ones handle different rooms.

5. Deal with any water problems

Looking at that inspector’s report? Deal with water-related issues immediately, says Minto. These tend to be troublesome because they’re so easily ignored—”out of sight, out of mind,” he says. A leaky toilet might seem minor, but the steady drip can damage internal structural components.

Check your roof, too: If the rubber vent boots on your roof are leaking, you might not know it for a while.

“By the time they see it in a ceiling, there’s been a fair amount of water,” Minto says.

6. Caulk everything

This one isn’t mandatory, but caulking is a whole lot easier if you do it when the house is empty, letting you see all the nooks and crannies that might need a little sealing—and don’t forget the exterior. Minto says he sees caulking issues on “every home,” and while they might seem minor, it doesn’t take long before cracking gives way to leaks and even more water issues.

7. Plan your emergency exits

Before you begin bringing in furniture, walk through every room and decide how you would escape in an emergency. This can help you spot problem areas or rooms that need some adjustments—say, removing bars or adding egress windows to a basement.

8. Clean your gutters

BO-RING. Right? You can put this off until Day 2 of your big move, but don’t let the dullness of the task push you to procrastination: If the previous homeowners didn’t clean the gutters, you need to do so ASAP.

“I see gutters that are filled with organic materials start to rot and start to rust through,” Minto says. Take 30 minutes to clear them out, and you’ll be rewarded come the rainy season.

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Jamie Wiebe writes about home design and real estate for realtor.com. She has previously written for House Beautiful, Elle Decor, Real Simple, Veranda, and more.

 

How to Buy a Home Without a 20% Down Payment

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But if you don’t happen to have that kind of cash on hand, you’re not alone. Quicken Loans Vice President of Capital Markets Bill Banfield notes that the most common barrier to homeownership isn’t being able to afford the monthly mortgage payment—it’s being able to save the down payment.

Thankfully, there are other ways to go about buying a home that don’t require you to put 20% down, like the following:

The Federal Housing Administration requires a down payment of only 3.5%. Compared to 20%, that’s pretty sweet—but these government-backed mortgages aren’t for everyone. To be eligible, you’ll need a decent credit score, of at least 580. Scores as low as 500 may qualify, but then you’ll need to put 10% down.

Another stipulation is that you’ll have to pay mortgage insurance, an extra fee that’s required on home loans where less than 20% has been put down. There are also limits on how much money you can borrow, with a minimum and maximum between 65% and 115% of the median home price in an area—on average between $271,050 and $625,000. Still, in spite of these restrictions, these loans are plentiful and a boon to home buyers, particularly those who are entering the housing market for the first time.

VA loans

If you or your spouse has served in the military, Uncle Sam has your back! You may quality for a Veterans Affairs loan, which requires 0% down and, unlike FHA loans, no mortgage insurance, since

To get a VA loan, you’ll need to present a certificate of eligibility, proving one of the following requirements:

  • 90 consecutive days of active duty during wartime (including from Aug. 2, 1990, to the present; see other qualifying dates), or 181 days during peacetime.
  • six years in the National Guard member or reserves.
  • You were wounded in service, even if you served for less than the specified time.
  • You’re a widow or widowers of a member of the military forces who died in action or from injuries suffered while on duty.

USDA rural development loans

The United States Department of Agriculture also offers 0% money-down loans to home buyers who qualify as having low or moderate income. And the threshold for “moderate” can be quite high depending on where you live; in San Francisco, it amounts to $141,000 for an individual.

And while eligible properties are typically in rural regions where space isn’t at a premium, this doesn’t necessarily relegate you to the sticks. A full 97% of the United States is covered under USDA loans; check whether any address or area is covered at USDA.gov.

State and local home buyer programs

The federal government isn’t the only one offering down payment assistance. In fact, there are 2,290 down payment programs across the country that offer financial assistance, kicking in an average of $17,766, according to one study.

Generally, these programs have income limitations and require you to take a home-buyer class. Find programs in your area on the National Council of State Housing Agencies website, or at the Down Payment Resource, which offers a calculator that can show you what you may be eligible for.

For information on our local Brevard County Downpayment Assistance program, follow this link to a previous post: 

First Time HomeBuyer Downpayment Assistance is BACK!- Atlantic RE Brokerage

Credit unions

You may be able to get a mortgage with no down payment or a limited down payment from a credit union—a nonprofit banking cooperative whose members can typically borrow at lower rates.

In order to qualify, you will probably have to meet limited income requirements—such as a maximum of 80% of the median area income. You’ll also need a decent credit score. But the policies can vary widely, so check. For instance, the San Francisco Federal Credit Union recently offered 100% financing for up to $2 million to borrowers with an average credit score of 747 and $219,000 income.

How to find down payment help in your area

Start by talking with a lender, mortgage broker, or your Realtor to determine not only what home you can afford, but also what programs and financial assistance you might be eligible for. You can also see how much home you can afford by punching your numbers into realtor.com’s mortgage calculator.

For information on our programs that offer less then 20% downpayment check out our previous post: 

4 Tips to Determine How Much Mortgage You Can Afford


Author:   | Sep 26, 2016

Nichole Odijk-DeMario is a Chicagoland freelance writer whose work has appeared in local, national, and international outlets since 2007.

First Time HomeBuyer Downpayment Assistance is BACK!- Atlantic RE Brokerage

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The Florida’s Hardest-Hit Fund Program is back and offers a bridge to homeownership with up to $15,000 downpayment assistance.   This program provides federal funding for qulified first time homebuyers in areas hardest hit by housing and job market decline.    Brevard County is one of the few counties where this is availalbe.    What a fantastic time to to purchase your first home.

 

As a full service brokerage, Atlantic Real Estate Brokerage can help every step of the way.  We can introduce you to lenders that offer this program, and the move on to finding you the perfect home.  But there are a lot of details thrown in along the way and that is what your REALTOR will be able to help you with.  Laying out the homebuying plan and executing it !! That is our speciality.

There are several criteria for homebuyers to qualify for this program, however this is a fantastic opportunity to first time homebuyers to get into a new home with less money down.  A few things to consider:

  • The downpayment assistance is a 5 year deferred loan that is forgiven at 20% per year
  • Must be first mortgage with a 30 year term
  • Must be primary residence
  • Education is required

To find out if you qualify, call us and we will introduce you to one of our lending partners that offers this loan.

 

About Atlantic Real Estate Brokerage – Satellite Beach, FL

Laura D Hazlett has been a Florida Broker for over 8 years and in the Real Estate Management Industry for over 12 years. She is a proud mother of a college graduate (USF), is a graduate of University of Miami, and a successful business owner.  Laura’s no-nonsense approach to real estate makes transactions easy, because of her direct style of communication and her team of successful partners.

Laura has assembled a great team of Agents. Selected with professionalism and a concierge approach to clients and vendors, Atlantic Real Estate Brokerage Agents are the best in their field.  They are selective with their client base which proves to be an effective way to serve all clients with world-class service.

The Worst Mortgage Advice – Atlantic RE Brokerage

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worst mortgage adviceThe Worst Mortgage Advice Home Buyers Actually Believe

 

Getting a mortgage is a daunting prospect, which explains why so many people seem eager to pat your hand and say, “Let me give you a little advice.” Sure, those pearls of wisdom may come from an ocean of good intentions, but the suggestions might not necessarily be right for you. In fact, they could be dead wrong.

So before you take some friendly outside counsel as gospel, be sure to check it against our list of the worst mortgage advice people often give.

———

‘Don’t bother getting pre-approved for a mortgage’

Why you might hear this: Hey, you’ve barely begun shopping for a home! There’s no need to get all serious about mortgages just yet. And besides, a mortgage pre-approval isn’t real anyway your application isn’t reviewed by an underwriter,

Why it’s bad advice: While a pre-approval might not be “official,” it will help you avoid major problems down the road.

“Getting pre-approved by a bank is one way to avoid the heartbreak that comes from falling in love with a house you can never buy,” says Maryalene LaPonsie of MoneyTalks. “It may also give you an edge if there are multiple offers for the same property. A seller will feel more confident selecting a bid from someone with a mortgage pre-approval rather than a person who hasn’t even begun the process.”

———

‘Get your mortgage from the bank where you already have an account’

Why you might hear this: When it comes to convenience, you just can’t beat the bank you’re already using. Plus, since you have an existing relationship with it, it’ll give you the best rates, right?

Why it’s bad advice: You already know to shop around for a home. You need to do the same with your loan.

“Even though the big bank where I keep my checking and savings accounts claims they’ll give me better service and an easier application process, that may not always be true,” says Albert Tumpson, a banking and real estate attorney who owns several properties and refinances them every couple of years. “I’ve found more favorable terms with other venues. Always go with the most favorable terms.”

———

‘Don’t bother reading the fine print’

Why you might hear this: Because actually perusing all that mortgage paperwork will drive you insane! And besides, this is the standard contract that everyone gets. Just sign here, here, and here—and you’ll save yourself a ton of headaches.

Why it’s bad advice: Because that fine print contains some clauses that could cost you serious money!

“Take your time and go over every last word with a fine-toothed comb,” says Jamie, a homeowner who purchased her second home two years ago. She was astounded when her lender asked her to sign a mortgage contract involving hundreds of thousands of dollars without “bothering” to read the details. Jamie ended up taking several hours to go over the contract and found several items to dispute. So what if the process took a little longer? It was well worth the wait.

———

‘Always go with the lowest interest rate’

Why you might hear this: A lower interest rate means lower monthly payments. Duh.

Why it’s bad advice: Lower interest rates can have all sorts of strings attached—often in the form of an adjustable-rate mortgage.

ARMs are not always a bad thing, but just be on the alert when someone suggests an interest-only ARM, says Shant Khatchadourian, president of SKR Capital Group. “Interest-only ARMs can result in significant payment shock, especially if rates increase down the line and amortization kicks in.”

In the past, as interest rates were dropping and home values were rising rapidly, interest-only ARMs worked well for some people—especially those who didn’t plan to stay in the home beyond the length of the loan’s first term. But although interest rates are low, they’re likely to rise soon, so beware.

———

‘Borrow as much as you’re approved for, even if you don’t need it’

Why you might hear this: Who doesn’t want a bigger and better house? Besides, a bank wouldn’t approve you for all that money unless you could afford to pay it back, right? Right?

Why it’s bad advice: It’s always wise to live slightly below your means, since you never know when life might pitch you a financial curveball, such as a layoff or medical problem.

“You can qualify for monthly payments up to 50% of your income these days,” says Khatchadourian. “But half of your gross income seems like quite a bit for most people, especially when they factor in taxes and insurance.”

So be sure to make a budget, decide what monthly payment you’re comfortable with, and stick to it.

 

 

Article From realtor.com by Lisa Johnson Mandell

 

Energy-efficient upgrades increase home values – Atlantic RE Brokerage

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Energy-efficient upgrades not only shrink your utility bill, they can increase the value of your home.

energy-efficientHomebuyers are becoming increasingly aware of the benefits of energy-efficient homes. In fact, they’re often willing to pay more for homes with “green” upgrades, says Sandra Adomatis, a specialist in green valuation with Adomatis Appraisal Service in Punta Gorda, Florida.

Just how much your home will increase in value depends on a number of factors, Adomatis says, like where you live, which upgrades you’ve made and how your home is marketed at sale time. The length of time to recoup the costs of green upgrades also depends on the energy costs in your area.

In 2014, upgraded homes in Los Angeles County saw a 6 percent increase in value, according to a study from Build It Green, a nonprofit based in Oakland, California, that works with home professionals. Upgraded homes in Washington, D.C., saw a 2 percent to 5 percent increase in 2015, according to a study Adomatis authored.

Consumer Reports suggests that upgrades like a gleaming new kitchen or a finished basement may give you more bang for your buck than energy-saving features. But if going green appeals more than adding quartz countertops, here’s where you can begin.

Find out how much energy your home uses

Getting a quick energy assessment or a more thorough energy audit can determine how much energy your home uses, as well as which upgrades would make the most sense for your home and finances. An audit may include an energy rating, a number that indicates how energy-efficient your home is and how much it will increase if you make recommended upgrades.

The Department of Energy (DOE) website lists ways to find assessors in your area. The Environmental Protection Agency’s Energy Star program offers assessor and advisory services to help you determine what to upgrade. Your utility provider may also offer energy audits.

The cost varies depending on location and who’s providing the service. Your utility company may offer an assessment for free or at a discount. A full audit may run $300 to $500 depending on the complexity, according to Don Knapp, senior marketing manager with Build It Green. You may not want to foot the bill for a full audit unless you’re planning to take advantage of it with major upgrades.

Once you know where you can improve your energy use, begin by making the changes that are most affordable and have a quicker payoff, Adomatis advises. Then consider whether the costlier ones are worth the investment. Keep in mind that a variety of tax credits and financing options are available for energy-efficient improvements.

Common energy upgrades, from least expensive to most

1. Insulation. A 2016 Cost vs. Value report from Remodeling magazine found that the average attic air-seal and fiberglass insulation job costs $1,268, with an added value to the home at resale within a year of completion of $1,482. That amounts to a 116 percent return on investment. And according to Energy Star, homeowners can save $200 a year in heating and cooling costs by making air sealing and insulation improvements.

2. Appliances. Your appliances account for about 15 percent of your home’s energy consumption, the DOE says. Certified clothes dryers can save you $245 over the life of the machine, according to Energy Star. A certified dryer from General Electric can run from $649 to $1,399.

When upgrading, look at the kilowatt-hour usage of a new appliance and compare it to your current one — a good Energy Star rating doesn’t necessarily mean it will use less energy than your existing appliance, Adomatis says.

3. Heating and cooling systems. These systems account for about 43 percent of your energy bill, according to the DOE. Replacement costs for an entire HVAC system — heating, ventilation and air conditioning — vary widely depending on equipment brands and sizing, but may run several thousand dollars. Energy Star estimates that you can save 30 percent on cooling costs by replacing your central air conditioning unit if it’s more than 12 years old.

According to Energy Star, a certified heat pump water heater has a payback time of two years and can save a four-person home $3,400 over its lifetime. A 50-gallon Geospring hybrid electric water heater from General Electric costs $1,399, plus installation.

While addressing your home’s heating and cooling systems, bear in the mind that leaky duct systems can be the biggest wasters of energy in your home, according to Charley Cormany, executive director of Efficiency First California, a nonprofit trade organization that represents energy-efficient contractors. The cost of a professional duct test typically runs $325 to $350 in California, he says.

4. Windows. Replacing the windows in your home may cost $8,000 to $24,000, and it could take decades to pay off, according to Consumer Reports. You can recoup some of that in resale value and energy savings. Remodeling’s Cost vs. Value report found that installing 10 vinyl replacement windows, at a cost of $14,725, can add $10,794 in resale value. Energy Star estimates that certified windows, doors and skylights can reduce your energy bill by up to 15 percent. If you’ve already tightened the shell of your home, installing a set of new windows may not be worth the cost. But the upgrade may be worth considering if you live in a colder climate.

5. Solar panels. EnergySage, a company offering an online marketplace for purchasing and installing solar panels, says the average cost of a solar panel system is $12,500. The payoff time and the amount you’ll save will vary depending on where you live. Estimated savings over a 20-year period in Philadelphia, for example, amount to $17,985, while it’s more than twice that amount in Seattle: $39,452, according to EnergySage.

Last: Let buyers know

When it comes time to sell, your real estate agent can help you market your home as energy efficient. Provide your agent with utility bills or your energy rating, if you received one with your audit, to include when describing the house on a multiple listing service, or MLS. There’s a growing trend in the real estate industry to make energy upgrades visible, Knapp says; energy disclosures are now a common practice in cities like Berkeley, California, and Chicago.

“If it’s reflected on the MLS, “it’s more likely to be reflected in the resale value,” Knapp said.

Bottom line: If you weigh the costs and savings carefully, going green can be worth the investment.

AP Logo Copyright 2016 The Associated Press, Michael Burge. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. This article was provided to The Associated Press by the personal finance website NerdWallet. Email staff writer Michael Burge: mburge@nerdwallet.com. 

More single women buying homes – Atlantic RE Brokerage

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According to NAR More single women are buying homes and First-Time home buyers increased after 3 years of declines.

single women

Single women increased their share in the market, hitting levels not seen since 2011, according to the National Association of Realtors’ annual Profile of Home Buyers and Sellers survey.

While married couples make up the largest share of homebuyers at 66%, and had the highest income at $99,200, single women are increasing their role. Last year the share of single women fell to its lowest point since 2002’s 15%, but this year they seem to be making a comeback. Single women represented 17% of the market this year, the highest point since 2011.

“Despite having a much lower income ($55,300) than single male buyers ($69,600), female buyers made up over double the amount of men (7%),” NAR Chief Economist Lawrence Yun said.

“Single women for years have indicated a strong desire to own a home of their own, as well as an inclination to live closer to friends and family,” Yun said. “With job growth holding steady and credit conditions becoming somewhat less stringent than in past years, the willingness and opportunity to buy is becoming more feasible for many single women.”

What’s more, a recent report from ATTOM Data Solutions, the new parent company of RealtyTrac, shows that women are better than men at paying their mortgages on time, and are better with finances in general.

However, while men may be slower to enter the market, homes owned by single men have a 10% greater value, and appreciate 16% more than homes owned by single women, according to an analysis released by RealtyTrac.

But single women aren’t the only ones increasing their share in the market – although first-time homebuyers have been decreasing every year for three straight years, 2016 seemed to bring an end to the trend, according to the survey.

The results of the survey, which dates back to 1981, do not include investors or vacant homes.

After a three-year decline, the number of first-time homebuyers increased to 35% of market sales, its highest since 2013’s 38%, the survey showed. This is up from last year’s 30-year low of 32%. The first-time homebuyer 35-year average rests at 40%.

“Young adults are settling down and deciding to buy a home after what was likely a turbulent beginning to their adult life and career following the Great Recession,” Yun said.

“Demand increased over the past year because of a robust job market for those with a college degree and renter fatigue at a time when homeowners continue to see their equity rise,” Yun said. “Even with the affordability challenges many buyers face, the allure of homeownership is not lost among the younger generation. Those under age 35 made up 61% of first-time buyer transactions.”

While the increase is encouraging, the lack of housing supply could still cause problems for first-time homebuyers if they continue to move towards homeownership.

“First-timers’ ability to enter the market more convincingly over the next year greatly depends on supply improvements at the lower end of the market and if wages can finally awaken from their sluggish pace of growth,” Yun said.

Article from Housing Wire – Kelsey Ramírez is a Reporter at HousingWire. Ramírez is a recent journalism graduate of University of Texas at Arlington. Ramírez previously covered hard issues such as homelessness and domestic violence and began at HousingWire as an Editorial Assistant.

Save your credit this holiday season – Atlantic RE Brokerage

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Buying a house in the spring? Here’s how to save your credit score through the holidays.

save your credit scoreThere’s not much time left before the malls are flooded with busy holiday shoppers. And for the yearlong planners, the shopping probably started a long time ago. A recent blog from VantageScore emphasizes the importance of making sure shoppers don’t destroy their credit score right before the busiest home-buying season.

The holidays may still seem far off, but when the possibility of securing a home in the spring is on the line, the time to plan is now.

So what is the main area where consumers hurt their credit during the holidays? Credit cards.

Here’s what VantageScore suggests to consumers:

First and foremost, if you apply for a new credit card or higher spending limits on existing cards for the holiday season, the card issuers will probably request your credit score from one or more of the national credit reporting companies (CRCs), Equifax, Experian and TransUnion. The same is true if a new car is on your shopping list or if you choose to open a store credit card account. Just as they would at any other time of year, those score inquiries from lenders can cause a dip in your credit score.

The shopping-season strategy here is twofold: You want to maximize your score before applying for this holiday-related credit, and you want to avoid having these holiday loans lower your score in advance of any major borrowing you may be planning in the early months of the new year.

 

 

Article from Housing Wire :  Brena Swanson is the Digital Reporter for HousingWire.com, providing expert coverage on Millennials, lending and housing. Brena joined the HousingWire news team in February 2013, also serving in the roles of Reporter and Content Specialist. Brena graduated from Evangel University in Springfield, Missouri. Follow Brena on twitter at @BrenaSwanson.