A home inspection is a normal part of the home buying process where an experienced inspector evaluates the condition of the home being sold. A home inspection is a basic, noninvasive survey of the home and property. It is meant to alert the buyer and lender of any problems with the home that may decrease the value and/or need to be fixed. Most lenders won’t loan money on a home that has not been inspected.

With the mini-boom we’re seeing in the housing market right now, many homes that are for sale have multiple offers from buyers. Some buyers are choosing to forgo the home inspection in order to gain the spot as the top bidder on a home. Continue reading “Home Inspection Basics” »

In the last few years there has been a lot of discussion about credit and identity theft. Credit scores are determined in large part by a consumer’s spending and borrowing history, so if a criminal is using the consumer’s name and identifying data to make irresponsible purchases or rack up debt, it can hurt the consumer’s ability to borrow for a mortgage or other important purchases in the future.

Identity theft is one of the fastest growing crimes in the U.S., with 8.6 million households being affected by it in 2010. Continue reading “Preventing Identity Theft” »

Mortgage rates are affected by the borrower’s credit score, debt to income ratios and other characteristics, but they also depend on economic and governmental factors. In the U.S., the Federal Open Market Committee is responsible for setting a range of interest rates that lenders are allowed to charge when extending credit. Borrowers are assigned a rate that corresponds to the risk they present to their lender. The ranges are largely determined by external factors, including those discussed below.

Inflation. As goods and services become more expensive over time, the value of money decreases as fewer items can be purchased for the same amount of money. Continue reading “Mortgage Rate Factors” »

If you are thinking about buying a home or refinancing your existing home, you probably are aware that your credit record can affect your mortgage options. As we explained in our previous post on credit score basics, credit records are one way that lending companies determine whether or not to lend money. Credit records can also be a factor in other transactions as well, including starting a cell phone contract, turning on utilities, and sometimes even when applying for a job.

In order to maintain good credit, it’s important to understand what information credit bureaus consider when calculating a credit score. Continue reading “Creating and Maintaining Good Credit” »

With how much credit scores affect our daily lives, it’s hard to believe that it was only a short time ago that the average consumer didn’t even know that credit scores existed. Credit scores came into being in the 1980s. Before that, lenders had to use their own judgment to determine who they should lend money to. It wasn’t until the 1990s that people began to realize what credit scores were, and even then, lenders were not allowed to tell borrowers what their credit scores were. Consumers brought up the valid point that if they didn’t know what was on their credit report how did they know if they were being judged fairly and accurately? This led to new legislation being passed in 2000 that allows consumers to view their own credit scores. Continue reading “Credit Score Basics” »

Home ownership is a big responsibility, but a little effort can reduce the stress associated with it. Keeping up with home maintenance can help you reduce the necessity for costly repairs. Keeping everything in working order will help your home run more efficiently and help you save money on energy costs.

You should always keep the outside of your home looking nice and working properly. This not only increases the curb appeal of your home, but also keeps problems from cropping up on the inside. Make sure the roof is in good condition with no worn or curling sections. Scrape and sand any flaking paint on the outer walls and repaint to protect the material underneath. Make sure windows and doors are weather proof to keep energy costs down. Keep up with landscaping to add to curb appeal and to avoid a major overhaul later on. Continue reading “Home Maintenance” »