Improve Your Credit Score

IMPROVE YOUR CREDIT SCORE, Wilmington NC Real Estate NC

 

Your credit score is one of the most important factors used to decide whether you will qualify for a major loan and what its terms will be.  Every day, many would-be-borrowers are denied loans, while consumers with strong credit histories are getting great rates on mortgages, car loans, and student’s loans. Understanding how your credit score is formulated is your first step when applying for a loan.

 

Take advantage of the rules.

Too many credit applications can lower your score. Multiple inquiries signal that you are having trouble successfully securing a loan and may be a credit risk or undesirable borrower. However, multiple inquiries from the same type of lender such as a mortgage company are counted as single inquiry if submitted over a short period of time.

 

Reduce your debt.

Creditors look for an optimal total debt load of around 36 percent of your house-hold income. If you monthly mortgage, car loan, and revolving credit card payments total more than 36 percent of your monthly salary, you will likely need to find a way to lower your overall dept before applying for a new loan.

 

Pay on time.

The easiest way to raise an ailing credit score is to make all your loan payments on time every month. Over the span of several months, you will likely need to find a way to lower your overall debt before applying for a new loan.

 

Timing is everything.

Wait 12 months following a credit problem before applying for a mortgage or a car loan. You will be penalized less for problems that are more than a year old.

 

Get your finances in order.

Avoid credit card purchases prior to applying for a major loan, and stay away from independent finance companies with high interest rates, which reflect poor credit management. Transferring dept from one card to another is another way to reduce your credit score. Of course, paying off credit cards every month is ideal. But that is not possible, steadily pay down the debt.

 

Posted by:  Nilesh Jethwa Wilmington and Leland, NC Real Estate

Nilesh Jethwa is a local real estate agent in the Wilmington and Leland area. If you are considering

purchasing a home in the near future. Please contact me for a free consultation.  Making

your home buying  process has seamless as possible. To contact Nilesh Jethwa please click here!

Creative ways to buy a home in Wilmington, NC

CREATIVE WAYS

TO BUY A HOME IN WILMINGTON, NC

 

If your credit situation is less than ideal, here are a few options for purchasing a new home:

 

1.       Research and speak with your real estate agent and lender about local, state, and national down payment programs that may be able to cover part or all of your down payment if you

Qualify.

 

2.       Arrange financing through the seller for part of or for the entire purchase price.

 

 

3.       Find a shared equity partner for your home.  A family member, friend, or third party-investor buys a portion of the home and shares any appreciation when the home is sold.

 

 

4.       Secure a loan from a family member or ask a family member to cosign on your home loan.

 

 

5.       Lease with the option to buy, which will allow you to rent for a period while you collect enough for a down payment. You will likely be able to apply part or all of the rent paid to the final purchase price.

 

6.       If you have good income and low debt, apply for a second short-term mortgage to allow for a higher down payment.

 

To learn more on how to Improve Your Credit Score Please Click Here!

 

Posted by: Nilesh Jethwa Wilmington and Leland NC Real Estate

 

 

Nilesh Jethwa is a local real estate agent in Wilmington and Leland NC. To contact Nilesh Jethwa please click here! Don’t forget to ask for his Custom Home Buying Package!!

 

 

 

 

 

First Time Homebuyer Tax Credit, Wilmington NC

The U.S. House of Representatives passed the final version of the Economic Stimulus Bill – a massive, $787 billionpackage of tax cuts and federal spending. The U.S. Senate is expected to vote on this bill later today or over theweekend. Included in the bill is a $8,000 tax credit to first-time home buyers.

To veiw the chart with more details about this tax credit click here.  

Posted By Nilesh Jethwa Wilmington, NC Real Estate 

Nilesh Jethwa is a local real estate agent in Wilmington, NC.To Contact Nilesh Jethwa please Click Here!

Negotiating Tips For Sellers, Wilmington NC

Negotiation is an important tool of the real estate business. To be a successful home seller you should have a basic understanding of negotiation methods, knowing the motivation of the other party and adapting to their style. You can strengthen your position as a home seller, by following these four negotiation tips.
 
1. Get your home into top condition. If your home is on the market with obvious defects such as paint, repairs, cleanup, carpets and landscaping, you can be certain prospective buyers will either not look at it, or if they do and they make an offer, it will be low.
 
Examine your home carefully. If you spot anything that a buyer can criticize, your negotiating position will be weakened. For example, if your home has peeling paint, you can be sure buyers will lower their offer by much more than a paint job would actually cost you. To negotiate from a strong position, always get your house painted inside and out before putting it on the market. See Nilesh Jethwa’s  
home staging program for more information on preparing your home for sale.
 
2. Know the market value of your home. After getting your home in the best possible condition, improve your negotiating position by determining the true market value of your home. One way is to hire a professional appraiser to evaluate your home and provide an expert opinion of the market value. The cost will be several hundred dollars for a complete appraisal, depending on the size of your home and the difficulty of appraising it. Choose an appraiser who is properly licensed and is experienced in your area.
 
Another way to determine the market value of your home is to interview several real estate agents about listing it for sale. As part of their listing presentation, each agent will prepare a written “comparative market analysis.” This report will show the recent sales prices of similar nearby homes as well as the list prices of other homes currently on the market. By comparing the reports submitted by the agents, and by checking out the comparables they use, you’ll be able to determine the market value of your home. Be sure to throw out any inflated price opinion given to you by an agent who is trying to “buy” the listing.
 
3. Relax and be patient. Another way of stating this rule is, “The one who cares the least, wins.” For example, if you must sell your home quickly because of a job transfer or to avoid a pending foreclosure, buyers will take advantage of your vulnerable situation. Give yourself plenty of time by putting your home on the market early. Sellers who get the top prices for their residences are those who have their homes in excellent condition and who do not have to sell it by a deadline.
 
They can afford the “I don’t care” attitude, so they only have to sell if they get the price and terms they really want. A good real estate agent will support you when you take this position even if it takes a little longer to sell your.

 

Posted by Nilesh Jethwa Wilmington, NC Real Estate

Nilesh Jethwa is a local real estate agent in Wilmington, NC. If you would like to contact Nilesh Jethwa or receive his free monthly market reports please click here!

Wilmington, NC 2009 Real Estate Summary

Coming into 2009, there is a lot of promise for this year to be better than 2008. With a new administration in the White House and the Federal Reserve and Treasury department spending hundreds of billions, we have a lot of action moving our economy forward.  Congress has offered assistance to the Auto Industry, Obama has a strong economic stimulus plan, and mortgage rates are at an all time low. With the potential recovery of the credit markets and the amount of housing inventory available, this makes the spring of 2009 a very desirable time to purchase real estate.

Our median sales price for 2008 ($215,000) reflects a small downturn of 6.7% from 2007($230,000) and maintains the same median as 2006 ($215,000). In 2008, we continue to see a small market correction in average sales price; we decreased 6.8% from year end 2007. Just two zip codes had average decreases of 9.6% and 15.7% while three zip codes managed slight decreases of 1.2% to 1.9%. A total of three zip codes had an increase in concessions offered to buyers on the sales price; concessions are now offered in 14% to 25% of the transactions in 2008.

Our market has experienced a decline of 30% in number of homes sold in 2008 compared to 2007. All five zip codes experienced a decline from 20% to 43%. Our list to sales price ratio for 2008 is 95.4% a slight decrease from 96.7% for 2007. Sellers in 28412 got about 96.5% of their asking price while those in 28403 only got 92.7% of their asking price. 2009 can be a good market for our area with an inventory of homes available and interest rates low, this would make a great time to buy.

This is all the more reason for consumers to call a REALTORS now to help them prepare for this opportunity.  REALTORS® have the knowledge, tools, and experience to help buyers and sellers make good, sound decisions with our local market and get the best deal for their clients. Their guidance now more than ever will be critical to the improvement of the real estate market and to making consumers feel confident in purchasing a home. Call your REALTOR® today or visit www.Nileshjethwa.com for more information on using a REALTOR® or to begin searching for homes. You may also obtain current real estate news, and much more.

 Posted by Nilesh Jethwa

Nilesh Jethwa is a Local Real Estate Agent in Wilmington, NC to contact Nilesh please click here! Don’t forget to ask about his Client Appreciation Program.

Your Credit Score, Wilmington Buyers

Managing your credit score

Part 2

As a real estate agent in Wilmington, NC I have help a number of buyers whether they have been first-time home-buyers, investors, and relocators find their perfect house. My goal working with buyers and sellers is keeping them informed on current market conditions, and helping them achieve there goals. Currently I’m working with a great couple looking to purchase their first home in Wilmington, NC.  During my first initially appointment I discussed with them the home buying process. I make it a point that we collectively come up with a home buying plan, I have found this to be a get tool. It has not only saved my clients time, but also money. During my appointment we went over how the qualification process works and how their Credit rating plays a factor in their purchase amount. Needless to say I realized that their rating was not as positive as I hoped for.  I understood that we needed to take this from a different perspective, not to look at this as an obstacle but an opportunity. I knew it was a great time to start improving it and helping them get started. Here are a few things we discussed.

A credit score is a number that lenders us to help them decide, “if I give this person a loan or credit card, how likely is it that I’II be paid back on time?” Also called a risk score, this number is a statistical measure of the risk that you’ll be able to repay the debt as agreed.

If you are planning on making a major purchase, taking out a loan or applying for a credit card, you’re going to need a good credit rating.

Managing Your Credit ScoreFind out where you stand.

The First step towards developing a better credit score is to determine where it currently stands. Start by checking with the major credit reporting agencies (CRA) listed below. You’re entitled to one free report per agency, per year, and you have the rights to dispute any mistakes, so request that each CRA send you a copy of your report.

Equifax                  www.equifax.com

Experian                www.experian.com

Figure out the Facts 

Credit reports in hand; take a good hard look at the data in front of you. Credit reports are rarely as spotless as you think- that one late payment on your Visa can stay on your report for up to seven years (long after you’ve forgotten about it). In addition, in October of 2004, CBS News reported that nearly 80% of credit reports contain at least one error, proving how vital it is to make sure that everything is accurate.

After identifying any discrepancies, you need to eliminate them. A dispute form usually is sent along with your credit report or you can request one from the CRA’s website so fill out the form and send it back to the CRA as registered mail. Make sure you document each step that you take in clearing up your report in case you need a backup later on. Fortunately, the law is on your side, stating that any item that is not verified as accurate must be removed from your report.

Call in the clean-up crew.

You’ve cleared up any errors, but there are still a few legitimate dark spots on your report. What’s a person to do now?

Clean up- Identify any depts. That are still pending, and setup a plan for eliminating them (discussed in my previous blog click here). Clearing up debt can take time, which makes it even more important to get started immediately. Remember that you have the right to add remarks to your file, so take the opportunity to defend yourself and point out positive areas of your reports, such as highlighting a loan that you paid on schedule.

Fix, rinse, and repeat

Time is your best ally when it comes to your credit report- consistent payments (no matter how small, so long as the meet the minimum) prove that you are responsible enough to repay loans as promised. Over time they will outweigh the negative points on your credit report.

Get regular- In order to avoid any ugly surprises, check your credit information regularly, especially 60 to 90 days before a major purchase (like for a car or home.)

Prove reliability- While there are not quick fixes for upping your score, taking out a loan that you don’t need and then paying it back in a short span of time can prove that you’re a good credit risk.

Too few or too many- The ideal position is to have a few lines of credit, never more than what you could afford to pay off on your income, and with none of them maxed out. Cancel old cards that you never use, but don’t max out one giant line of credit by putting your entire debt on it. Prove your self-control by having between two and four lines of credit with a minimal or no balance on each.

By Nilesh Jethwa

Posted By Nilesh Jethwa

Nilesh Jethwa is a local REALTOR in Wilmington, NC.

To Contact Nilesh Jethwa please Click Here! 

To read part 1 of my blog series Clearing Your Debt click here……

National For-Sale Inventory

For- Sale Inventory
The Environment
Inventories of home for sale around the country expanded during the house slowdown, reaching a 10.6 month’s supply in 2007, Almost twice the 5.5 month’s supply considered balanced by historical standards. Inventories started easing in 2008, falling to 9.9 months in the third quarter.
Looking to 2009, new housing starts- which peaked at 2.2. Millions units in 2005- will continue to head down, NAR (National Association of Realtors) says. That’s not good for builders, but it’s good for inventories. On the other hand, delinquencies and foreclosures are projected to rise in 2009, putting more distressed housing on the market and keeping downward pressure on prices.
Expect a national average of 8.8 months’ supply in 2009 based on the market trends in late 2008. To help spur sales-in addition to pushing for an interest- rate buy down- NAR is asking Congress to eliminate the repayment requirement in the home buyer tax credit, enacted in 2008, and to make the tax credit open to all buyers, not just those who haven’t been home owners in at least three years. One development in late 2008 that was expected to help boost demand is the decision by the Federal reserve to buy mortgage-backed securities on the secondary market. The move was expected to lower mortgage interest rates which will help return inventory to balanced conditions.

Source: NAR Research
By Robert Freedmen
Source: National Realtors Magazine Jan 09 issue

Posted by Nilesh Jethwa Wilmington, NC Real Estate
If you would like to receive free local market statics for Wilmington, NC contact Nilesh Jethwa by click here!

Clearing your debt…..

Millions of Americans set a goal for and succeed in paying off their credit card debt each year- is this one of your goals? With a little determination and a plan, you can take control of your credit and improve your credit score in the process. Here’s how: but please watch this video……Just to add some humor

Cut the Cards
The First step toward reducing your credit card debt is to stop adding to it. While you don’t have to literally shred your cards, you do need to stop using them routinely. Try one (or all) of the tips below to break this habit:

Carry Cash- Give yourself a weekly cash allowance for expenditures. You’ll be more aware of how much you actually, spend; plus once you run out of money, you’re more apt to stop spending.

Use debit, not credit- For times when only plastic will do, use your debit card instead of a credit card.
Out of sight, out of mind- Keep your credit cards at home and you’ll be likely to use them.

Think strategically- Decide on two to four credit cards with which you have a lengthy, positive history, and close any other accounts. Having a few good accounts will boost you credit score, but having too many will hurt it.

Lower Rate/Cut a Deal
Once you’ve got your spending under control, focus on reducing your interest rate.

Negotiate rates- Call up your credit card issuers and ask for a better rate. Explain that you plan to transfer the balances to another card unless your rate is lowered. Usually, borrowers with good credit scores can cut their rate by a few points- sometimes as much as 10%.

Transfer Balances- To a different card. Look for offers with low introductory rates that are good for at least a full year, with relatively low rates thereafter. Read the fine prints and pass up offers from cards with hidden fees or cost.

Shop around- Do a little investigative work to find the best card offers. Use the internet to research and locate current offers.

Reduce Your Dept
Now it’s time to start chipping away at those balances. Develop a strategy and make it happen, using the following tips:

Sort it out- Make a list of each credit card you have, its existing balance, minimum payment and interest rate. Use either of the online calculators listed here to help you determine which card to pay off first.
Quicken: Http://www.quicken.com/planing/dept/

Develop a plan- Pay as much as you can on your card with the highest interest rate, while paying the minimum on the other cards. This additional payment on the high-rate card will help to pay off the principal faster.

Build debt snowball- Once you highest interest rate card is paid off take the same amount you’ve been paying on that card and add it to the minimum payment on the card with the next highest interest rate (this is commonly referred to as “snowballing” or a debt-reduction rollover of your payments). Continue to pay the minimum on the remaining accounts, repeating the process until you’re dept-free.

Having a back-up- Keep one low-interest card put away for emergencies but maintain a zero monthly balance at all times by paying it off when due.

Think Ahead
Now that you’re dept free, start thinking even further ahead:

Invest- Begin to invest the same amount of money you’ve been applying to dept every month. You’ve trained yourself to live on less by paying as much as possible toward your debt each month, now take that philosophy and use it to your advantage, reinforcing that thrift must continue in order to develop a mindset of abundance.

Visualize- Spending a few moments each day imagining what it will feel like to be debt-free, paying cash for every purchase and look forward to a comfortable retirement.

Please join me next week on How to Manage Your Credit Score or just click here!

By: Nilesh Jethwa
Posted By Nilesh Jethwa
Source Buffini and Company

Nilesh Jethwa is a local real estate agent in Wilmington, NC. If you would like to contact Nilesh Jethwa click here!!

National Home Sale’s 2009 Outlook

The Environment

After falling for two years in a row, sales of existing homes are expected to edge up 6% in 2009 to 5.3 million. Even with an increase in unemployment, improved affordability is the reason. NAR’s affordability index jumped to 131 at the end of 2008, up 17 percent from 112 in 2007. It’s expected to hover around a still-high 128 in 2009. The index means households earning the national median income have 131 percent of the income needed to buy the national median-priced house.Meanwhile, new-homes sales, already off more that 50 percent from their peak of 1 million in the third quarter of 2006, are expected to continue dropping, to about 413,000 in 2009.Prices have dropped nationally about 12 percent from their peak in 2006, from a national median of $221,900 to $198,600. In some of the markets that were hottest during the boom, prices have dropped even more, as much as 30 percent in Los Angeles and 24 percent in Las Vegas. The drop has made life tough for seller with little equity in their homes. Some 40 percent of sales in the third quarter of 2008 were distressed sales, either short sales or forecloses, and according to NAR data. For 2009, prices are expected to turn a corner.

Outlook: Sales on the Rise

Existing- Homes                             2007                **2008                 **2009 

Sales (in millions)                            5.7                        5.0                         5.3

   

Prices                                        218,900            198,600                 200,800

Price Changes                             -1.4%                 -9.3%                      1.1% 

New Homes                                  2007                2008*                  2009**

Sales                                           775,000            487,000               413,000  

Prices                                          247,200            228,200              231,400 

Price Changes                            0.3%                  -7.7%                    1.4% 

AFFORDABILITY INDEX      112                      131                      128  

 *Estimated  **ProjectedSource: NAR 

By Robert FreedmanSource: Realtor Magazine Jan 09 Issue

Posted by Nilesh Jethwa Wilmington,NC Real Estate

Nilesh Jethwa is a local real estate agent in Wilmington, NC to contact Nilesh click here!