Hope you and yours had a great Thanksgiving with your friends and families!
The elections are over (thank God) and it looks like the interest rates will be rising in the very near future. If you haven't purchased a home yet and plan to, now is the best time. Here is how an interest hike could affect you if you wait.
If you have a combined salary of $5,000 per month or $60,000 per year, and a car payment and/or credit cards of $450 month and your real estate taxes and homeowner's insurance is $1600 per year, right now with the average interest rate of 4.5% , you might be able to afford a mortgage loan of $233,215. If in the future, the average interest rate rises just 1.25% to 5.75%, you then in this case scenario, might now afford a loan of just $202,488.
To sum this up, the longer you wait to buy a home, the less home you will be able to qualify for. So, if you want to buy within the next 1-2 months, get prequalified. Feel free to call me for more information 864/885-1445 or 864/650-1535.
*Remember this post describes a specific situation with a specific income, expenses and a particular credit score scenario.
Happy Thanksgiving Holiday from
Julie Allen, Broker, Golden Corner Realty & Development
5 CREDIT HABITS TO BREAK IN 2015
Ready to win your financial resolutions? Find out how to succeed in 2015.If you’re identifying 2015 — or even 2016 — as the year you make a major housing change, you’ll want to confirm that your credit behaviors are at their best. Buying a house is probably the biggest expense most of us ever take on in life. Your credit plays an important role in affording you access to the best terms available from your lender. If credit is on your list of things to improve next year, there are many options to tune up the ways you think about and interact with your credit. Knowing the smart solutions to improve your credit habits can take you far in the new year — especially with a big purchase ahead.
1. Being disconnected Habit to break: Not checking your credit report Resolution to make: Check your credit report regularly to know where your credit stands, and to make sure you’re prepared when it comes time to buy a home. Consider your credit report the road map to all your credit behaviors: It’s important to know how your report will look to lenders and others when they see it for the first time.
2. Overspending Habit to break: Running up or maxing out your credit cards Resolution to make: To show others you’re using credit responsibly, keep your spending under control and in accordance with the budget you’ve set. Keeping tabs on your spending now will also help you benchmark how changes to your budgeting will affect how you spend after your home purchase.
3. Managing balances Habit to break: Just paying the minimum balances due on your accounts Resolution to make: Bring down the balances you’re carrying by upping your payment amounts above the minimum — this can also save you interest over the long term. You’ll want to keep that extra money in your pocket (and hopefully earning some interest) while you look for that dream property.
4. Seeking too much Habit to break: Applying for credit indiscriminately Resolution to make: Seek out and accept new credit sparingly, so your credit-utilization rate won’t be seen as too high when applying for credit during your home-buying process. Lenders can be wary of applicants they feel might be trying to amass excessive credit and overspend.
5. Getting behind Habit to break: Making late payments on your accounts Resolution to make: Stay on top of your accounts to keep all your payments on time, every month — it’s even more important in the months you’re considering a big purchase like a home. It may be the most basic but most important way to show you’re consistently being responsible with your credit obligations. Challenging yourself by making it your New Year’s resolution allows you to take advantage of the months before your new home search begins to kick bad credit habits to the curb for good. You’ll want the peace of mind of knowing that when you discover that perfect listing, your credit is already in tiptop shape.
See more at: http://www.trulia.com/blog/5-credit-habits-break-year-2/?ecampaign=cnews&eurl=www.trulia.com%2Fblog%2F5-credit-habits-break-year-2%2F#sthash.pIzri0Ry.dpuf
I hope everyone had a wonderful holiday with family and friends. Did it seem to you like most folks were a little bit kinder during the holidays? People you might have recognized while you were shopping and would have avoided two months ago, it suddenly felt great to say with a smile, "Merry Christmas" and enjoy a little conversation. There is just something about Christmas that wakes us up inside and reminds us that Christ's birth is why we feel kinder at Christmas, and He makes all the difference in this world. Let's celebrate Christmas all year long in 2015. Julie
We are in the process of upgrading our website so you can search for properties for sale alot easier. You will be able to save your searches and search under your own account. Look for My Property Binder in the upcoming days and set up your own login. Our agents are ready to serve you when you are ready to go!