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Posts tagged ‘credit’

What Affects Credit Scores?

When you’re applying for a mortgage, your credit score can have a big impact not only on the mortgage rate you get but also on how much you can borrow. One of the critical first steps in buying a home is ensuring that your credit score is as high as possible to allow you the most flexibility, but many people aren’t aware of how credit scores are calculated.

Your credit score is a numeric value that incorporates all of your credit and payment history into a mathematical equation and calculates the probability of repayment of any future loan. The seven factors that are included in this calculation are:

  1. loan repayment behavior
  2. credit score inquiries
  3. delinquency of loans
  4. length of established credit
  5. composition of credit
  6. quantity of credit already available
  7. amount of outstanding loans

Dear TZ – What happens after the home inspection?

Dear TZ,

We found the perfect house! It’s exactly what we want, and we can afford it. We made an offer and it was accepted! Our lawyer told us to have a home inspection, and the inspection report came back with some problems. The roof is old and needs to be replaced, and some of the plumbing is corroded. What do we do?

Ivana HomenowWoman With Magnifying Glass

Dear Ivana,

First thing you’ll want to do is go over the home inspector’s report.  Speak to your home inspector if you have questions.   Then you’ll want to discuss what your options are with your attorney.  In many cases you’ll be able to work out a situation through the attorney’s where the seller may do the repairs or have them done.  Alternatively, they may opt to give you a credit for the repairs or a part of them at the closing.

No matter what you’ll want to cosult with your attorney either way.

Beyond that you may want to look into purchasing a Home Warranty.  Most warranties sell for less than $500 and they will cover every major appliance and system in the home for a year or more.  This way if something was missed in the inspection you’re covered down the road.  Ask your REALTOR(R) about how to purchase your home warranty.

With some negotiating by the attornies and some patience, most of the major issues should be resolved before you close on the house.

Best of luck!

– Wayne and Jean

Please note that all information is reliable but not guaranteed.  Please consult with your Real Estate professional and/or attorney before making any Real Estate decisions.

Wayne and Jean 

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