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How to Avoid Credit Score Pitfalls

by The Jamey Kramer Group

How to Avoid Credit Score Pitfalls

The most vital factor in determining your interest rates and creditworthiness when you are buying a home is your credit score. When you begin the process of buying and looking for a mortgage loan, checking your credit score will be one of the first things your lender will do. Your credit score can drastically impact the amount of money you end up saving in interest payments throughout the life of your loan.

The credit score that will allow for a mortgage to be given is a score of around 640. Here are a few key factors that can negatively impact your score:

Paying Credit Cards Late  

Having a credit card is one way that can help build your credit score. Thirty-five percent of your credit score is based on your payment history. Sadly, credit cards have a lot of pitfalls that can cause extremely negative effects on your credit score. When you have credit card payments and you consistently pay late, your credit score will be deeply impacted. Consistently paying your credit card late or not paying the bill at all is worse.

The second most important part of your credit score is your level of debt. Having high credit card balances is considered a form of dept. This will decrease a credit score. In addition, maxing out your credit cards is the least ideal for your credit score. The percentage of extended credit you utilize accounts for another thirty percent of your credit rating. To help your credit score, you want to keep your balances as low as possible and make the payments on time each month.

Another way that credit cards can negatively impact your credit score is when you make too many requests for new credit cards. This sends the wrong message to credit bureaus.

Defaulting on a Loan

Similar to credit cards, having loans are ways that can build your credit score. However, failing to pay your loan payments can dramatically hinder your credit score.

A Foreclosed Home

A mortgage payment is similar to your credit card payment and your loan payment. When you get behind on your mortgage payments, it will cause your lender to foreclose on your home. This will dramatically impact your credit score. 

Unemployment

Many individuals experience unemployment as some point in their working careers. Thankfully, there are unemployment benefits that help get those through those hard times. However, it is important to not use those benefits for long periods of time as they will impact your credit score.

Improving Your Credit Score

Understanding what can hurt your credit score is vital, but knowing how to improve your score will help to get to that goal of owning a home with a low interest mortgage. The best part is that you are not powerless.

There are many things that you can do to help your credit score. According to Money Crashers, the number one way to improve your credit score is simply by paying your bills on time.

Another way to help improve your credit score is by keeping an eye on it regularly. Oftentimes credit reports can contain mistaken information. It is shocking to realize how many errors can happen on your credit score.

In addition, make sure to pay down any outstanding debt that you might have. This is a huge way to help to bring your credit score up higher.

Take Away

As you begin to plan and think of buying a home, make sure to keep your credit score in mind. If you check and your credit score is not as high as you would like it to be, work on ways to help to improve your score. Having a great credit score can save you thousands of dollars in the long term through interest rates. While the process might be hard and painful, it will be worth the effort.

If you are looking to buy a new home, please give us a call. We would be honored to help you find the home of your dreams.

248-348-7200

 

3 Must Visit Metro Detroit Parks

by The Jamey Kramer Group

Metro Detroit Parks

Are you looking for a fun way to enjoy the amazing summer weather? One great way is to head outdoors and visit some of Southeast Michigan’s best state parks. Some say these are Southeast Michigan’s best kept secrets.  

Here are a few of our favorites.

Maybury State Park
Northville, Michigan

Maybury State Park boasts almost 1,000 acres of gently rolling terrain. When you visit Maybury State Park, you have the opportunity to get involved in outdoor recreation activities while still being a part of a state park.

There are a ton of activities to enjoy at Maybury State Park. You can go biking, horseback riding, mountain biking, fishing, and even cross country skiing. For biking, there are four miles of paved trails and trails through the brush with a biking course. If you want to go horseback riding, you can experience eleven miles of trails. Want to take it easy? Let your kids play at a playground or visit the large farm with a petting zoo at the front of the park.

For more information, please visit: Friends of Maybury State Park

Lakeshore Park
Novi, Michigan

Lakeshore Park is host to many different Novi community events. They have many activities that will allow you to enjoy the great outdoors and cause you to forget you are in the middle of suburbia.

The park has a swimming beach that allows you to enjoy the beauty of Walled Lake. There are also mountain biking and walking trails. The mountain bike trail is approximately 10 miles long and will be a great challenge for both an intermediate biker and experienced rider. If that is a little too intense for you or your family, don’t worry as they offer great trails for walking, family biking, and cross-country skiing. They also have two great play structures for children, places to picnic, BBQ, and sledding in the winter time.

For more about the park, please visit Lakeshore Park.

Island Lake Recreation Area
Brighton, Michigan

The Island Lake Recreation Area is a state-run park with over 4,000 incredible acres. Some people have described Island Lake as an “up north” experience without having to leave Southeast Michigan. When you visit this park, you will notice that there is a mixture of open brush land and mature hardwood forest. You will also find open meadows throughout.

Would you like to watch some hot air balloons take off? Island Lake Recreation Area is the only port in the state part system where balloons take off. You will most likely see them early morning or late evening depending on the weather.

There are so many activities to enjoy here. You can take your family camping or rent out a cabin or lodges if that’s more your style. While you’re there, take an adventurous bike ride. There are four miles of paved trails that also connect to Kensington Metro Park and the Lyon Township Bike Trail.  

Canoeing is another highlight of the Island Lake State Park. You can rent them at the Kent Lake Beach near the dam. Rowboats and paddle boats are also available. There is truly something to do for everyone. Enjoy metal detecting, a shooting range, hanging out at the beach, fishing, or enjoy some cross country skiing in the winter.

For more, please see: Island Lake Recreation Area.

Wrapping Up

Spending the summer in the great outdoors is good for the body and soul. When you visit any of these parks, you are sure to have a great time. If you are interested in moving to the area, these are great options to check out to get a great feel of the area. If you have any questions about buying a house, we would love to help you out. Please call today:

248-348-7200

 

 

Benefits to Buying a Home with Cash

by The Jamey Kramer Group

Benefits of buying home with cash

Are you looking into buying a home? Have you considered the option of buying a home with cash?

Maybe you were like me, and the first time you heard about buying a home with cash, it seemed like a farfetched idea only for the rich.

I was a young adult when a friend talked about the benefits of buying a home with cash. At the time, I thought the idea was crazy. I had only heard of people buying a home by taking on debt with a mortgage. In fact, at the time lenders were allowing people to buy homes with no money down at all.

However, this crazy notion took root in my thoughts.  I began to see how paying for a home with cash might be worth the effort of waiting and saving. I also learned that it doesn’t have to be a benefit for the rich, but can be an option for many other people.

Buying a home with cash isn’t an option for all people. As you make your decision, understanding the benefits can help you feel confident about the decision you make.

Here are 3 benefits to buying a home with cash:

  1. Cash Cuts Cost

One huge cost cutting benefit that buying a home with cash allows is the ability to eliminate the need to pay interest on the loan. The amount of money saved over the common thirty year mortgage is incredible.

It also will help to cut costs on some closing costs. For example, when you buy a home with cash, you will not be required by the lender to have an appraisal done. Therefore, you will not have to pay for one.

  1. Cash Helps Win Bidding Wars

You may have heard the expression, “Cash is King.” When you have cash, it gives you more negotiation power and can often get you a better deal. Having all cash helps to make your offer more attractive to sellers.

According to Peter Grabel, manager director, ML luxury Mortgage Corp in Stamford, Connecticut, “In a competitive market, a seller is likely to take a cash offer over other offers because they don’t have to worry about a buyer backing out due to financing being denied.”

  1. Credit Doesn’t Matter

If you want to buy a home, but you don’t have good enough credit, paying for a home with cash will help you jump that hurdle. You do not need to go to a lender to ask for money, and your credit would not need to be checked.

Mortgage Benefits

On the other hand, buying a home with cash doesn’t always have to be the best option. A mortgage can make sense for a lot of reasons even if a buyer has the money to buy a home with cash. Buying a home with cash can tie up a lot of money. A buyer may choose to take a mortgage because they prefer to have liquid cash.

Wrapping Up

The main goal is that you want to make the best investment and get the biggest bang for your buck. When looking 30 years into the future, being able to buy a home with cash can make huge financial sense.

If you are considering buying a home, we would love to help. Please call our office today.

248-348-7200

7 Tips on How to Sell a Condominium Fast

by The Jamey Kramer Group

7 Tips on How to Sell a Condominium Fast

Are you looking to sell your condominium property? Condos are amazing properties and are very attractive to many buyers. They often have attractive benefits that owning a single family home does not offer like pools and fitness rooms. Living in a condominium is a great experience.

However, selling a condo tends to be a tad bit different from selling a single family home. Here are 7 tips that will help you in selling your condominium property fast.

  1. Find an Experienced Professional

The most important part of selling a condominium is finding a realtor that specializes in selling these types of properties. Having a partner on your side that knows the market will be an incredible asset to you. Your realtor will help you price your home accurately based on similar properties that sold in the area, give tips for staging, take professional pictures, and give invaluable insights into the overall market. This process will run smoother and quicker when you have a real estate agent representing your property that is experienced in condo real estate.

  1. Check the Fine Print

When it comes to selling your condominium, each association might be different. Check with your association to see if there are any limits or the need to get a pre-approval. Find out the rules and if they have any regulations on whom you can sell to. Having this information in advance can help you in your planning process.

  1. Highlight the Benefits

Owning a condo can come with a lot of great benefits. These are features that you want to highlight in your listing. For example, does your property have a pool, workout room, community clubhouse, office, etc.?

  1. Be Upfront

Condo associations often have association fees. It is a great idea to be upfront about these fees. Disclosing them with your listing will make sure you have realistic buyers.

  1. Market Your Condo in the Right Places

Your real estate agent will help make this happen, too. Your realtor will place your condo in the MLS (Multiple Listing Serve) and on their agency’s website. 

  1. Host an Open House

When your condo shows well, it will mostly likely sell quickly. When getting your space ready for showings and open houses, you can follow similar steps to preparing a home. Check out our article on tips for preparing a home to sell.

  1. Offer Extra Incentives

Offering extra incentives is especially helpful in a tough or struggling market. Incentive will help your property stand out as a more attractive option from others. Forbes.com advises to offer a closing cost credit as on option.

Another incentive option could be to help your buyers is by offering to pay association dues for them for a year. Association dues can often be an aspect that causes buyers to hesitate in buying a condo. Offering them this incentive is a helpful way to bridge the gap and give them a head start.  

Take Away

If you are looking to sell your condominium property in the Novi, South Lyon, and Northville area, contact us today. We have experience in selling condos and will help you experience a painless and fast selling process. 

248-348-7200

Displaying blog entries 1-4 of 4