Real Estate Survival Guide with Terry Story
Business:Investing
People who pay for everything with cash are at a major disadvantage when it comes to getting a bank mortgage. Banks make loans based on borrowers’ credit history, which helps determine lending rates and other parameters of those loans. Those folks who refuse to use credit cards or other forms of borrowed (and re-paid) money are essentially invisible—“off the grid” as Steve puts it—and therefore are unknown risks to lenders. Most banks will simply balk at offering mortgages to thin-credit individuals. The irony is that many thin-credit individuals are probably in healthy financial shape and may be more responsible than others when it comes to managing their money.
Breaking out from thin-credit status to become someone whom lenders would be willing to work with is not terribly complicated. Opening credit cards and establishing a track record of both using and paying them down can provide a fairly quick fix. But even folks who can’t abide the idea of credit cards have options: paying and documenting rent and other bills and routine expenses (utilities, child care, insurance, cell phone, and cable bills, etc.) with checks can go a long way towards establishing the kind of credit identity that lenders require. One of the main reasons people are drawn to the cash-only lifestyle is the anonymity and privacy it provides, but these benefits must be abandoned if you want to take out a mortgage. Steve and Terry’s bottom line: get back “on the grid” with credit cards and/or checks two or three years before you plan to buy a home.
July 12th - It’s a Seller’s Market for Now, But Things Could “Flip”
July 5th - Increase In Fannie Mae’s Debt To Income Ceiling Should Make Your Next House Easier To Buy
June 28th - Why Are Millennials Buying Homes Rather Than Renting Them?
June 21st - How Will Eliminating The Property Tax Deduction Affect You?
June 15th - It’s Hurricane Season Again! Do You Have The Right Insurance?
June 7th - The Stress Of Moving Is Keeping People At Home
May 31st - Low Housing Inventory Is Frustrating Would Be Buyers
May 24th - Looking For A Retreat? How About Vero Beach?
May 18th - Home Sales And Prices Spring Forward
May 10th - How To Guarantee A Return On Your Home Improvement Investment
May 3rd - What To Do When Your HOA Goes Rogue
April 26th - What Do Bankruptcy And Your IRS Refund Have In Common?
April 19th - The Home Affordability Crisis: Are You Being Priced Out Of The Real Estate Market?
April 5th - Real Estate Prices Are Higher Because Of Millennials Buying Homes
March 29th - How To Buy A Home When You Already Own A Home
June 21st - How Will Eliminating The Property Tax Deduction Affect You?
Aug. 9th - Think Outside The Box To Win In Today’s Tight Housing Market
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