Need a mortgage? What’s your score?

Maintaining a strong credit score is one of the most important things potential buyers can do if they want to qualify for a mortgage, since credit scores are used by lenders to measure financial health. A recent study showed that 34 percent of potential buyers believe their current score will hurt their future ability to purchase a home.

If your clients are concerned about their current credit rating, Yahoo! Finance offered some advice on common credit problems they should avoid.

  • Don’t be late. Paying bills on time is essential, since a person’s payment history makes up 35 percent of the total credit score. A late bill payment of 30 to 60 days also gets reported to credit bureaus and stays on the credit report for a whopping seven years.
  • Applying for new credit. According the National Association of Realtors® (NAR), applying and being approved for a new line of credit can cause concern with lenders who might take it as a sign that there’s a higher risk of default due to increased spending. Bottom line, if your potential buyers are planning to apply for a home loan in the near future, make sure they don’t apply for anything else around the same time, Yahoo! Finance warns.
  • Having high balances. Just making minimum credit card payments isn’t good enough for most mortgage companies. People who hold high credit balances are not looked as favorable loan candidates since high balances and maxed out cards raises the debt-to-income ratio, according to lenders.
  • Too much disputing. While it’s a good idea to keep tabs on the credit report and dispute false charges, doing so too-often will be a red flag to lenders who may chalk it up to gaming the score instead.
  • Not having a credit history at all. Credit can’t be established if there’s none to begin with, so if your clients have a thin credit file, let them know they need to start building their history before applying for a home loan.

Paul Antonelli

REALTOR Professional
Broker / Owner of NextHome Antonelli Realty
The Future Of Real Estate is HERE !
Cell; 321-443-4028       Email; Info@PaulAntonelli.com
www.AntonelliRealty.com
http://www.PaulAntonelli.com/
www.GetFreeShortSaleHelp.com
http://www.WhatsMyMarketValue.com/
www.ThatShortSaleGuy.com
http://www.paulantonelli.realtor/

Should the Fed now raise rates

Financial conditions are much better than they were just weeks ago. Equities are up, yield spreads are down, the dollar has weakened and the VIX or “fear gauge” is at its lowest level since August.

Risk is suddenly appealing.

Should the Fed now raise rates? No, things are better because the Fed doesn’t plan to raise rates much this year.

A sudden change in plan will undo the recent improvements.

Paul Antonelli
REALTOR Professional
Broker / Owner of NextHome Antonelli Realty
Where The Future Of Real Estate Is Coming in 2016.
Cell; 321-443-4028       Email; Info@PaulAntonelli.com
AntonelliRealty.com
http://www.PaulAntonelli.com/
GetFreeShortSaleHelp.com
WhatsMyMarketValue.com/
ThatShortSaleGuy.com
http://www.paulantonelli.realtor/

Homeowners really don’t know their homes value

Just under 50% of homeowners with a mortgage (about 66% of all homeowners) in the U.S. expect their equity will increase in 2016, even though about 60% say equity in their homes already increased during the last three years of the housing recovery, according to research conducted for loanDepot.

Of those expecting a change in their equity, about 85% expect it to rise as much as 10%. Many of the experts are already reporting that we should see between a 1% to 2.5% increase this year.

More than half, 58%, are expecting their equity to increase between 1% and 5%. The other 27% are expecting an increase between six and 10%. About 3% expect the equity to fall, and 27% say they expect it to remain the same.

Although about 57% of homeowners believe their home’s value appreciated in the past three year. Even so, loanDepot studies show about 80% of them underestimate how much their home value has increased during the housing recovery.

The Standard & Poor’s Case Shiller 20-city index shows home values rose twice as much as one in every four homeowners believed.

“Homeowners who bought during the housing boom are regaining equity many thought was lost forever, yet too many are not aware of the equity they have gained or they are unclear about how to determine changes in their equity,” loanDepot chief financial officer Bryan Sullivan said.

“People who bought after the housing boom when prices were low are realizing homeownership can be a great investment and an asset that they can now leverage through equity to realize many dreams,” he said. “Whether they choose to leverage their home equity now or reserve it for future needs, millions of homeowners have choices today not available just a few years ago.”

loanDepot studies have shown that timing has an impact on how homeowners feel about their equity. Those who have bought homes after 2009 are generally more cautious, but more optimistic.

Zestimate Accuracy

Nationally, the Zestimate has a median error rate of 7.9%, which means half of the Zestimates in an area are closer than the error percentage and half are farther off. For example, in Seattle, Zestimates for half of the homes are within 6.6% of the selling price, and half are off by more than 6.6%.

To improve Zestimate accuracy, we allow homeowners to edit their home facts and then we incorporate this information into our Zestimate calculations. So if you obtain an MLS account and input all the sales from the last 60 days that happened in your neighborhood, that may improve your chance of getting a closer value to your own.

Be aware that in some areas, we might not be able to produce a Zestimate at all, but we do have some basic information on the homes. The tables below show you where we have Zestimates and other home information.

Lets take Orlando, FL –  875.5K homes on zillow – 803.0K have the zestimate – only 37.1% of those come with in 5% of the real value – only 61.9% come with in 10% –  and 83.0% make it with in 20% of a homes REAL Market value.  And this is taken right from the zillow web page What is a zestimate.

    Want to Really Know what your home is worth today?Go to www.WhatsMyMarketValue.com

Paul Antonelli

REALTOR Professional
Broker / Owner of NextHome Antonelli Realty
The Future Of Real Estate is HERE !
Cell; 321-443-4028       Email; Info@PaulAntonelli.com