US Home Refinance A Real Estate Blog Wed, 18 Nov 2015 22:46:55 +0000 en-US hourly 1 Top Five Ways Bad Credit Scores Harm People Wed, 14 Oct 2015 05:24:40 +0000 bad-credit-score

If you need reminding regarding the importance of keeping your credit scores high, this article is a quick reminder of the harms that low credit score can inflict in your personal financial life. Here are the top five ways that a bad credit score can harm you.

1. You Might Not Be Able To Rent The Apartment You Want

It’s a common practice for landlords to ask for credit scores for people applying to rent. This makes a lot of sense, because if you’re the landlord, you don’t want to be in the position where your tenant skips out on you, and you have no recourse except for, of course, the deposit. The landlord needs to weed out bad tenants and he does this by checking their credit scores.

You can eliminate a lot of the drama by doing a credit score or a credit history check on the person. Because like it or not, credit scores reflect your overall credit risk – the better your score, the higher the chance that you’re going to pay your bills and that you would be a good person to rent to.

2. Your Credit Cards Will Have A High Interest Rate

If you have a low credit score, chances are, you might not get a credit card with a low interest rate. You would still get a credit card; that’s not a problem. In fact, people who’ve declared bankruptcy still get credit cards in America.

The problem is, getting the right kind of cards. These cards of course are the ones with low interest rate and you, probably, will not get those offers if you’re a bad credit risk.

How do banks find out if you’re a bad credit risk? Your credit score. The same goes with getting a limit increase on your credit card. If you have a low credit score, your credit card limit would be quite low.

3. It May Hurt You When Applying For A Job

There are certain very sensitive jobs that require backgrounds checks, and, oftentimes, these background checks also look into your financial records.

It would look really bad for certain jobs that involve money and credit security, if your credit score is quite low. There have been many people that didn’t get jobs because of a low credit score.

4. You Might Not Be Able To Get A Mortgage

When time comes for you to buy a home, and you need to take out a loan, you will need to get a credit assessment and your credit scores will come up again. And guess what, it is the same story as the others above.

Worthiness is determined primarily by your credit score, and if your credit score is low you would have a tough time getting a good mortgage. You can still get a mortgage but the interest rate would be quite high and the terms will be a little bit more oppressive.

A good mortgage with low rates and relatively easy terms would only be attainable with good credit rating.

5. The Damage To Your Reputation

While it’s not as prevalent as before, having a low credit score and being known as a bad credit risk can lower your status and your standing with your friends and family. While your friends and family might be more accepting other people might not be. So friends of friends might be a little bit more judgmental when it comes to this kind of thing. They might think twice when it comes to lending you money.

Keep the harms above in mind so you can focus on keeping your credit score high or working to improve your credit score. There is a reason why people place so much emphasis on credit score. It’s time for you to understand this so you can improve your personal financial life.

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Investing In Land vs Rental Properties Thu, 24 Sep 2015 07:37:25 +0000 investing-in-rental-properties

If you are thinking of investing in real estate, one of the most fundamental questions you will confront this early in your investing career is whether you should invest in rental properties or in land. The differences between these two ways of investing in real estate are huge. Pay close attention to their descriptions below so you can cross reference them with your own financial goals.

Not everyone prefers to be a landlord. Nor do they have the competence and temperament to be successful at it. Not everyone has the patience to be a landowner either. You have to pick the right path but you have to know yourself first so you can make the right decision.

Active management versus passive management

Investing in vacant land is easy. How can it not be? You buy land and wait. After a few years when land prices have gone up, you sell. Nice and easy, no? Well, not so fast. Not all areas appreciate at the same rate. In fact, some areas barely appreciate and when you factor in inflation, you might discover you actually lost money.

Rental income properties, on the other hand, require more legwork on your part. You have to actively find renters. You have to make sure the renters are happy. You have to keep your property in good shape. These take effort and they take money. It costs money to maintain rental property. With that said, you do get cash flow from your properties. They also tend to appreciate faster than many vacant lots.

Dealing with people

When you are investing in vacant lots, you only deal with people at certain periods: when you buy and when you sell. When you are investing in rental properties, you have to constantly deal with your tenants and service providers for your rental property. In fact, you will have to constantly put out fires, so to speak since there are so many things that can pop up. The good news is that all this activity is rewarded by the rental property since there is a steady stream of income coming in.

Easier to scale

Another key consideration to keep in mind when trying to decide between investing in income properties and vacant land is: how easy is to scale your investment? In other words, how much collateral can you get so you can invest in more properties so you can scale up your empire.

The truth is that vacant lands can be used as collateral too but they aren’t as ‘sexy’ as rental properties on the whole Rental properties have both land value and income value. This makes for a very powerful combination.

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How To Improve Your Credit Score In 3 to 6 Months Sun, 20 Sep 2015 08:34:55 +0000 improving-your-credit-score

Wondering the best way to improve your credit score? Raising your credit score could have beneficial impacts – like better rates on future credit or investing in a house.

A person’s credit score is influenced by debts as well as payment behaviors. However, improving credit scores within several months ought to be achievable for those who are determined to accomplish that. The main factor that could cause it to be difficult within a short time span would be recently filing for bankruptcy or perhaps damaging your credit score in a different way.

Check Your Credit Report For Errors

Evaluate your credit reports to make sure that the data is correct on all 3 credit bureaus. Make certain that credits cards, loans, bills, and mortgages are your own as well as the balances are right. Get in touch with the appropriate credit bureau should you notice an item that is concerning that you should dispute. Fixing disputes can certainly raise credit scores rather quickly. Essentially, it is advisable to check your credit report yearly.

Pay All Your Bills On Time Every Time

Steer clear of paying your bills late since this will certainly reflect badly on your credit score. Think about setting your payments automatically. Making your payments on time will improve your credit score, in the same way not paying them by the due date will lower your score significantly.

Decrease Your Overall Debt

Decrease debt by paying down your major credit card balances; ensure you pay over the minimum for this to have any impact. After that pay off smaller balances, if you can. Do not close a paid-off or unused credit card because this will certainly lower your credit score ; except if you will still be incurring fees whether or not they are used . You could make a small purchase on an unused credit card, so the issuer continues to report the activity. Pay off the balance quickly, maintain low credit card balances and by no means max them out.

When It Comes To Erasing Major Credit Blunders

When removing major credit issues – like a foreclosure or even collection agencies account – may take years, however following a combination of these steps may improve your credit score by 100 points or more.

“Past due” Payoffs

Accounts that are 90 days late will have a bigger negative impact on your score than those that are 60 or 30 days late.

Liens, Collection Accounts and Charge-Offs

Paying charge-offs or liens which are more mature than 2 yrs. will not improve your credit score. Initially, pay debts which are under 2 yrs. old then the other ones once you have the money to get it done.

Be aware that repaying collections accounts may, initially, trigger your credit score to fall. That is due to recent payments count as current activity on the account.

As soon as it’s paid off, ask the collector to delete the account from your credit file and a copy of proof.

Improve your credit score by improving your debt-to-credit ratio

Without having to pay extra on your debt asking for a credit increase will improve your debt-to-credit ratio.

Transfer credit card balances. Keep debt below 30 % of your credit limit on each credit card.

Use a personal installment loan to consolidate all your credit card debt.

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5 Questions To Ask Before Buying A New Home Fri, 14 Aug 2015 07:25:18 +0000

There are many reasons why buying a new home is ideal and better compared to renting or leasing. Renting a home to live in is not really that wise where you don’t really get to earn the property in the long-run. All the rental fees will earn you nothing in the end. So if you are relocating, downsizing, upsizing or just simply looking for another home to live in, consider owning one and gain better benefits.

Owning a property is always a good investment since it makes you save more money and it increases in value in the long-run. However, there are certain crucial things you need to ask yourself before you plunge into this relatively huge financial decision. With these questions, you can evaluate the scenarios and plan ahead.

Can I Afford Buying A New Home?

Generally speaking, new homes are definitely more expensive compared to old and foreclosed homes. Since buying homes involve huge amounts of money, you need to evaluate your finances thoroughly before you do anything major. Calculate every expense you would be incurring once you own the property. Aside from the selling price, include taxes, insurance, utilities, improvements, maintenance costs, and others. Check the range of expenses you would be incurring, from the necessary ones to the wanted ones. Then you can have an idea if you can indeed afford a new home.

Where Should I Buy A New Home?

Choosing the location of the new home you desire living on is important. Every different location or neighborhood would give you are totally different living experience. This fact is caused by the differences in the surroundings and composition of each unique neighborhood. From the business establishments present in the area to the residents the live there, there are many factors that affect the kind of living experience perceived by anyone who lives there.

The goal here is buying a new home in a suitable neighborhood based on your preferences and expectations. You also need to ensure that the basic things you need are within your reach such as schools for your kids, market to shop on, mass transportation and other essential things. So make sure you find a new home in a neighborhood you would fit in just fine.

Are There Things I Need To Inspect?

You might be thinking that since you are buying a new home that you don’t need to inspect anything in the property. There are a lot of things that you need to inspect in a new home. Needed inspections include radon levels, presence of certain pest such as termites, soil composition and others you might have in mind. For the really important features of your house like your foundation or roof, consider consulting a local contractor like Art Construction.

Does The New Home Meet My Family’s Needs?

Obviously you need to examine the home and the neighborhood if it does meet the needs of your family. You cannot just fall in love with the physical things you see, you need to prioritize those that you need such as security and comfort. You need to address size issues such as that yard and room and make sure that everybody, including your pet, will live comfortably. If the home does not have the space you need you may have to consider general steel buildings for added space. You also need to examine is the property is in a comfortable distance away from your kid’s school and your workplace.

Is The Home and Neighborhood Safe?

The home may look like your dream house based on its physical appearance but don’t let that fool you. You need to consider safety when buying a new home. This kind of safety is beyond the physical structure or anything with regards to the property. There are certain outside and uncontrollable forces that contributes to the overall safety in a home and neighborhood. One in particular is crime. You don’t want to live in a community where criminal activities are rampant.

Another thing to consider are the forces of nature. Check for histories of flooding, earthquake, tornado, and others that you would find alarming. You can address this issue by doing research. Ask the local authorities and the residents nearby and know more about past significant events regarding safety.

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When Is It A Good Time To Refinance? Wed, 15 Jul 2015 00:16:35 +0000 refinancing-your-mortgage

Before the financial crash, there was such a Gold Rush mentality among different banks and home mortgage companies that refinancing was very easy and, in many cases, actually encouraged. As a result, homeowners got deeper and deeper into debt and instead of liquidating or terminating their debt in ten to fifteen years, many signed on to another thirty year term.

When the housing bubble burst, many of these same homeowners found themselves with huge mortgage payments because the refinance terms used adjustable rates. No wonder, many homeowners had no other option but put up their homes for short sale. Others, laid off due to the financial crisis, had no choice but move out since the bank foreclosed on their homes. Ouch.

I bring up this sad recent experience to bring home the point that refinancing is a financial move you should not take very lightly. It is intended only for certain situations. You have to actually be in these situations for refinancing to truly work for you. Sadly, during the pre-Financial Crisis days, many homeowners looked at refinancing as a quick and easy way to treat their home’s equity into a credit card credit limit. Disastrous results. Read the guide below to quickly get a good idea of when it is a good time to refinance.

Interest rates matter as much as equity

As I mentioned earlier, many people refinanced their homes once their houses showed some market appreciation. As you probably already know, prior to 2008, the US went through a long housing boom where real estate prices spiked up. This created a lot of paper wealth and many homeowners decided to cash in on some of their homes’ appreciation by refinancing.

The problem is they based their decision on the amount of equity (appreciation) in their homes instead of pairing this information with another key piece of information-interest rate. Interest rates are extremely important because they dictate how much you’ll be paying on your loan.

Remember, that loan is not free money. It is borrowed money and it comes at a price. Many of these individuals took out refinancing loans that were pegged at initially low rates which spiked up after a few years. Eventually, many got foreclosed on since they could not handle the spike in their mortgage payments when the interests rates changed.

If you are going to refinance, pay attention first to the fixed mortgage rate the bank or finance company is offering you. Make sure it is very low. You need it to be very low so you can have some cushion in the future should your income change for the worse. Next, you should look at your equity and make sure there is enough appreciated equity to make refinancing worth the bother.

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Benefits Of Flipping Real Estate Properties Tue, 09 Jun 2015 04:12:25 +0000 flipping-homes-for-profit

Thе оbvіоus bеnеfіt аnd sоught аftеr bеnеfіt оf flіppіng rеаl еstаtе іs thе prоfіt. Thіs іs оnе іncrеdіbly tаngіblе bеnеfіt, pаrtіculаrly whеn thе prоfіts аrе lаrgе аnd quіck tо cоmе yоur wаy. Of cоursе thеrе аrе rіsks. Mоst vеnturеs thаt оffеr hіgh prоfіt аlsо cоmе wіth а hіgh dеgrее оf rіsk. Mоnеy, hоwеvеr, іs nоt thе оnly bеnеfіt thаt cаn bе аssоcіаtеd wіth flіppіng rеаl еstаtе thоugh іt іs cеrtаіnly thе оnе оn mоst іnvеstоrs’ mіnds whеn thеy gеt іntо thіs lіnе оf wоrk.

Lеt’s tаlk prоfіt fіrst. Prоfіt іs thе оnе rеаsоn thаt mоst pеоplе gеt іntо thіs busіnеss. Thе dаys аrе lоng аnd thе wоrk іs hаrd. Thіs іs dеfіnіtеly nоt thе typе оf wоrk оnе wоuld оrdіnаrіly undеrtаkе fоr thе sіmplе lоvе оf gеttіng оnе’s hаnds dіrty. Thіs іs rеаl wоrk thаt lеаvеs yоu bоnе wеаry аt thе еnd оf thе dаy. Hоwеvеr, whеn аll thе wоrk іs dоnе аnd yоu gеt аrоund tо mаkіng thе sеll, yоu wіll fіnd thаt thе prоfіt іnvоlvеd іn а succеssful flіp іs wеll wоrth thе еffоrt yоu’vе put іntо thе prоcеss.

Thе gооd nеws іs thаt thе sаvvy іnvеstоr cаn stіll mаnаgе tо mаkе mоnеy еvеn whеn thе sіtuаtіоn mаy nоt wоrk оut quіtе аs plаnnеd. Thіs іs yеt аnоthеr bеnеfіt tо flіppіng rеаl еstаtе. If thе flіp dоеsn’t wоrk оut, thеrе іs аlwаys thе оptіоn оf lеаsіng tо оwn thе prоpеrty оr rеntіng thе prоpеrty оut. Thе prоfіts іn thеsе sіtuаtіоns аrе cоnsіdеrаblе lеss thаn а strаіght оut flіp but іt cаn prеvеnt fіnаncіаl ruіn thаt іs оftеn thе rіsk оf а flіp gоnе wrоng. Thе fаct thаt thеrе аrе оptіоns аnd thаt yоu аrеn’t nеcеssаrіly lеft ruіnеd аt thе еnd оf а bаd flіp іs dеfіnіtеly а bеnеfіt. Thеrе аrеn’t mаny typеs оf іnvеstmеnts thаt аllоw yоu thе оptіоn tо sаvе yоursеlf thе wаy rеаl еstаtе dоеs.

Onе оf thе іntаngіblе bеnеfіts оf flіppіng hоusеs іs thаt yоu аrе іn еssеncе wоrkіng fоr yоursеlf. In оthеr wоrds yоu dо nоt hаvе tо punch а tіmе clоck оr wоrry аbоut оvеrtіmе (аt lеаst nоt оn yоur pаrt). Thіs cаn bе а bаd thіng tоо іf yоu lаck thе dіscіplіnе rеquіrеd tо gеt thе jоb dоnе. Hоwеvеr, mоst оf us wіll vіеw thіs іs а hugе chеck іn thе prоs cоlumn whеn dеcіdіng whеthеr оr nоt tо tаkе thе plungе іntо thе wоndеrful аnd frіghtеnіng wоrld оf rеаl еstаtе іnvеstіng.

Evеn thоugh thіs іs а busіnеss thаt rеquіrеs а lоt оf wоrk іn оrdеr tо turn аn аttrаctіvе prоfіt thеrе іs sоmе sаtіsfаctіоn аt thе еnd оf thе dаy іnvоlvеd іn knоwіng thаt yоu аrе wоrkіng fоr yоursеlf аnd nоt tо mаkе sоmеоnе еlsе wеаlthy оr іn оrdеr tо punch а tіmе clоck. Thаt fееlіng оf sаtіsfаctіоn іs оnе thаt yоu shоuld hаng оntо whеn thе brаnd nеw tоіlеt yоu’vе just іnstаllеd bеcоmеs а gеysеr. Of cоursе thеrе аrе mіstаkеs аlоng thе wаy, whаt оthеr jоb kееps yоu оn yоur tоеs quіtе lіkе thіs оnе?

Rеаl еstаtе іnvеstіng, hоusе flіppіng іn pаrtіculаr, cаn bе оnе оf thе mоst frustrаtіng typеs оf іnvеstmеnts а sоul cаn pursuе. At thе sаmе tіmе іt cаn аlsо bе оnе оf thе mоst rеwаrdіng mеntаlly, spіrіtuаlly, аnd fіnаncіаlly. Thіs іs sоmеthіng yоu shоuld kееp іn mіnd whеn dеcіdіng whеthеr оr nоt thіs іs thе rіght pаth fоr yоu.

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3 Tips On Leasing Commercial Real Estate Property Mon, 18 May 2015 04:19:19 +0000 leasing-commercial-property

Leasing a commercial real estate property can be a confusing task for most entrepreneurs and business owners. High-profile real estate agents add more to this confusing task by providing diplomatic solutions combined with their very own interests. Commercial real estate investment normally involves a large amount of funds and any reckless move can result in huge monetary loss to the owner. In the present-day world, most new real estate businesses are commenced by leasing office space.

Leasing any kind of real estate property is becoming more difficult day by day. With myriads of options available these days, you have to follow certain effective tips and tricks that can surely help you in this regard. Here are some tips that will help you in leasing a commercial real estate property.

Developing A Good Network

In order to find the best deal, having a good network of professional real estate brokers, solicitors, investors and contractors is essential. You should always check out the references and meet such qualified people to crack profitable deals. You can also get help from local professionals which can help in providing you with lucrative leads. You can also get help from the local newspapers and magazines in order to understand more about your local real estate market.

Finding A Unswerving Tenant

You should always try and look for tenants that have a good business reputation. Tenants which break contracts, have the habit of paying late or mishandling the property, can become knotty at certain times. Therefore you, as an owner, should get involved with the clients as well as the building. You should not become casual with all these things as they might collapse your investment.

Studying the Lease Agreement Clauses

With an alarming rise in the count of fraudulent activities in the real estate world, as an owner, you should go through the lease agreement very carefully. You should read the complete terms and conditions which are stated in the agreement and any kind of doubts should be cleared before signing the contract.

You should carry out intense research in order to avoid investing in a venture that won’t be profitable. You should bear one thing in mind that there is no sure shot mantra for making a profitable investment. However, a complete understanding about the current market conditions and can help ensure that leasing commercial property becomes profitable.

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Fine Tuning Your Property For The Sale Mon, 13 Apr 2015 01:11:31 +0000

Whether you’re selling your real estate property to simply make a profit, move into a larger home, or have unfortunately fallen on hard times, you may need some help getting your property sold. Leaving that 50 year old painting of a turkey in the kitchen that was given to you by your grandmother, may have sentimental value, but may not add any value to your home.

It’s often difficult for people to accept the fact that their own stylings and tastes are not well suited for showing off a property for sale. Learning to accept the fact that using more modern furniture from quality companies like Crosley furniture, paint and even decorations can help make your property more appealing, will result in a happy buyer. Often small, inexpensive changes can result in a higher probability of selling. Staging a property before an open house or during a selling period can greatly increase the value and likelihood that the property will sell.

Paint is one of the cheapest and most common methods of preparing a room or even an entire house for sale. If you’re not great at choosing colors, find someone who has an eye for style and select a nice new paint to make your home more appealing. This is an easy to do change that doesn’t require hiring someone and costs little in materials, compared to other higher cost changes.

Cleaning up the yard in front of the property is also a great idea. Prospective buyers shouldn’t be turned off before even entering the home and because the first thing they will see is the outside of the home and it’s surrounding yard, you want to give this area extra attention. Start small by keeping the grass cut, edges trimmed and any sticks and twigs that may have fallen picked up. Purchase some inexpensive plants and add some color, using fresh dirt where possible.

Installing new wall plates that match your new found color schemes can also be important and is a cheap and easy to install tune up for your property. Replacing any broken or burned out light bulbs is also important but unfortunately some times over looked as you may have learned to live without that fourth light bulb in your bathroom.

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Ways To Save On Your Mortgage Payments Tue, 07 Apr 2015 23:31:13 +0000 beat-inflation-real-estate

As a home owner with a mortgage, you know that the monthly mortgage payment is the largest expense every month. It is a known fact that some home owners wind up paying more than 75% over the purchase price of the home over the period of the mortgage.

But there are certain steps that you could take, not only to shorten the life of your mortgage, but also to reduce the amount of your monthly payments which would also help you in reducing the total payment of the mortgage. One thing that you must remember is that the interest and other costs associated with the mortgage make up a great part of the total of the mortgage over the time period of the mortgage.

Adding an extra payment each year. One of the ways to save on your mortgage costs is to make an extra payment each year. This extra payment is automatically applied to your principal and not your interest which reduces the balance of the loan and you would not have to pay the interest on that amount of the loan for the rest of the mortgage period.

Getting rid of your Private Mortgage Insurance. If you have been required to pay private mortgage insurance, due to a low down payment, you could request your lender to cancel the insurance once you have reduced your mortgage balance to below 80% of the homes appraised value. This will help to reduce the monthly payments as well as the total you would have to pay on the mortgage.

Resetting your mortgage. If you make a large payment towards the principal of your loan, you can ask the lender to reset your mortgage. This will work to either shorten the term of your loan or reduce the monthly payments if you choose to keep to the existing period of your mortgage.

Setting up bi-weekly payments. By setting up bi-weekly payments towards your mortgage will let you make 13 payments towards your mortgage in a year. This will mean that you will have made an extra payment which would be applied towards the principal and help in reducing the loan amount.

Refinancing. By refinancing your mortgage to a lower rate of interest you would be reducing your monthly payments which would in effect lower the amount you would pay on your total mortgage. But there are costs associated with refinancing and you would be advised to calculate whether you would save enough on your mortgage if you decide to refinance.

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Three Common Types Of Real Estate Sat, 14 Mar 2015 00:45:37 +0000

When thinking about investments, a great choice is something that is limited, but in demand, such as real estate. The world is only so large and there are a limited amount of properties that can be claimed. An empty lot with nothing built on it may seem worthless, but some day there may be someone who wants to purchase this land and erect a business or a home there.

Existing homes and buildings are also excellent purchases. A little renovation here and there or even simply time alone can increase their value. Here are the three types of real estate purchases you can make.

Vacant Land

Vacant land is a popular real estate investment, possibilities can be endless for building on empty lots. No need to demolish any existing structures, saving the buyer money on land that is already prepared for building. Common terms used for describing this type of land are lots, parcels and of course land. Typically a survey has been performed to determine the boundaries of the vacant land, which is then used to determine it’s worth.

Residential Properties

The next type of property common in real estate is residential properties. This type of real estate is easily described as houses or structures people live in. Residential properties are the most common type of real estate most people hear about due to the advertising that takes place when a residential property is up for sale.

Realtors are usually used when selling this type of property as they specialize in selling homes and have connections to help sell the property quicker. Housing has seen many ups and downs, often having foreclosure rates  higher than ever. For those interested in making a profit, purchasing real estate and investing some money on renovations can be a great way to make a quick profit.

Commercial Properties

Commercial property or some times referred to as income property is also a popular form of real estate and often results in high dollar amount sales, usually due to the size of the real estate property being sold. This type of real estate often includes office buildings, medical centers, industrial property, hotels, malls, retail properties and so on. These properties are specifically meant for generating income as seen by the types of buildings and businesses that fall into this category.

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