Archive for December, 2014

NEW 3% DOWN PROGRAMS

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NEW 3% DOWN PROGRAMS

Great news for a large number of the potential 1st time home buyers who have been locked out of the market for the past few years by over cautious Lenders.

The new programs just announced are aimed at borrowers who have higher than required Income but less than the minimum down payment.

Both FANNIE MAE & FREDDIE MAC are going to accept 3% Down Payment on

FICO logo

FICO logo (Photo credit: Wikipedia)

new fixed rate loans to 1st time buyers.

FICO Scores in the 640 range may be able to qualify if there are compensating circumstances i.e. recently graduated, earning large income, but major debts from Student Loans etc.

Details are still coming in but this is major good news for this underserved segment of the market.

MORTGAGE CREDIT CLARITY

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Factors contributing to someone's credit score...

There are many different credit score providers out there. The best known of these are Experian, TransUnion, and Equifax, due to their being the most important when applying for a mortgage.

As they all use slightly different scoring algorithms, each will provide a different FICO (Credit Score) for any given person.

 

All regular Mortgage lenders have minimum acceptable FICO score requirements for anyone wishing to get a mortgage approval.

 

The most important thing to be aware of is that the credit report you get directly from any of these bureaus is not the same as the one the Mortgage Company obtains. (Theirs has much stricter requirements).

 

You might personally be given a 660 score, but when the Lender runs your credit they get a 640 which may not qualify for their loan on the terms you were hoping for.

 

I know of at least 12 other Credit Bureaus used by different businesses with industry specific standards, but these are not relevant to Real Estate Mortgage issues.

 

If you need help improving your Credit Score be very aware that there are more scam artists than reputable professionals in the Credit Repair business.

I can personally recommend Ken Strey who can be reached at:

 

Scorewell Inc. | 925-478-4732 | kenstrey@scorewellinc.com | http://www.scorewellinc.com 1371 Oakland Blvd Suite 201 Walnut Creek, CA 94596

CALIFORNIA IS NOT SILICON VALLEY

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English: This is one of the huge welcoming sig...

English: This is one of the huge welcoming signs for Google plex in the silicon valley. (Photo credit: Wikipedia)

CALIFORNIA IS NOT SILICON VALLEY

The Market Statistics fiasco

I’m continually answering client’s questions about mass media, or on line reports (Case Schiller etc) which claim to give “information” about the California Real Estate Market and which contradict the information I give them.

Here’s the reality:

REAL ESTATE IS LOCAL

Data covering the whole of California is totally useless to anyone considering Buying or Selling property in Silicon Valley.

To get useful information about a specific area why not go to a source which deals ONLY with that area, and has ACCURATE and RELEVANT information on it.

A competent and tech savvy Realtor has direct access to all relevant data bases and can easily provide accurate and current data for individual homes, neighborhoods, Cities, and Counties within minutes, at  no cost to a Client.

Much of this data is either not available to the general public, or costs inordinate time and money to an individual.