5 Things That Won't Hurt Your Credit Score!

1. What is or isn’t in your bank account – Bank account information will never, ever appear on your credit report and therefore can never affect your credit score. Your credit report is a comprehensive list of your debts, not your assets. If you plan on applying for a home loan or a car loan a chunk of change in your bank account can still help even though it won’t help your credit score. Extra money in the bank always looks attractive to lenders; some even consider it a “compensating factor” for a lower than desired credit score.

2. How much you make – In the same way your bank account information will never appear on your credit report, neither will your income! This one is a catch-22. Some people believe that having a stable job should help boost their credit scores, but could you imagine if you didn’t have a job? It would become a vicious cycle! No job means you may need to borrow some funds to get by but you wouldn’t be able to use credit because your credit score would drop and so on, so thank goodness it doesn’t affect your score!

3. The value of your home or if you even own one – These days there have been many people worrying about the value of their homes since property values have dropped vastly across the board. While a credit report does include the amount you owe on your mortgage versus your original loan amount, the value of your home is not factored in. Great news!

There is also a common misconception that a rented home or apartment will appear on a credit report. This is actually not the case. Landlords currently aren’t required to report your consistency on paying rent to the credit bureaus – for now at least!

4. Your job or lack on one – Well, not directly. Though your job history does appear on your credit report (just the name of the employer and an address typically), your job information isn’t relevant to your credit report at all. Job consistency isn’t related to your credit score at all. It is much more common though to see credit scores of those without a job drop because they are unable to pay their bills on time. If you’re able to pay your bills and pay them on time you’ll be good to go!

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How much will a Short Sale hurt my Credit Score?

It goes without saying but a short sale will no doubt damage even the highest credit score.It is fair to ask, what is a reasonable expectation for your credit to be after a short sale has concluded? It is impossible to say conclusively, but first and foremost it is important to understand how a credit report is scored.

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I want to buy a house.

If your credit is poor, buying a house requires extra effort. Before beginning the search for your dream home, determine what monthly payments you can realistically afford. Research the local market to see what houses are selling for and how much each month's payments will be. Be aware that you may pay slightly more than someone with an existing conventional loan from the bank; thus, be mindful when deciding what you can afford.

Finding a home you can afford without borrowing money can be more challenging. You will have to look around more to find what you are willing to settle for in terms of features. Consider whether living with just one bedroom is possible or if three is necessary; are two cars allowed in your garage or do you need a carport? Is living on one level necessary for health reasons; is proximity to schools important? Make a list of essential needs before searching any further.

Make a list of all the items you're searching for, such as a hot tub or pool, walk-in closet, wood floors, decks or another type of architecture. While it would be ideal to find a home that meets all your desires, first focus on finding one that meets your needs. Many of these features can be added later on when selecting your new residence.

On a third list, make a list of items you don't want in your home. This could include too many stairs, fixer-uppers, undesirable areas such as those close to freeways or far from downtown.

It may be that you do not have the luxury of being too picky. You might be able to downsize while building credit and building equity in your home, then trade it in for a larger one later on.

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How to pick a Real Estate Agent

These steps will assist you in discovering the ideal agent.

1. Online Comparison of Real Estate Agents Comparing real estate agents online allows for an informed decision.

2. Refer a friend
3. To experience the real thing, visit your local housing market

4. A minimum of three agents must be present.

5. Ask the Appropriate Questions
Asking questions that are pertinent and insightful can be a key aspect of success when conducting market research.

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Here is your Short Sale FAQ

Facing the reality of the possibility of a short sale leads each and every homeowner to question what a short sale will mean for them and wondering what to really expect.>

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Short Sales vs. Foreclosure – The Process

Many of you are probably wondering what you should do with your underwater mortgage, and for some of you, the only options are probably short sale or foreclosure. It’s not an easy question to answer: only licensed financial professionals and realtors should be giving you advice on which to choose, and even then, they should be doing it in person or over the phone. Never, ever take advice from a stranger.

That said, we’re going to go over what the differences between short sales and foreclosures are, so that when you do talk to a professional (in person!) you know a little more what you’re talking about. When it’s your financial survival on the line, you want to make sure you’re as informed as possible.

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Do I still owe after a short sale?

A common problem with short sales is that the seller doesn’t know precisely what he or she owes after the sale is final. That’s because short sales are complex contracts and are usually only drawn up in situations that are unfavorable for the seller. Unfortunately, that’s the reality of the post-2008 market, and it’s usually the lesser of two evils (the other being the “f-word”: foreclosure).

In many short sales, the bank agrees to discount the repayment of the seller’s home loan. That is, if they bought the house for $120,000 and the sale price is $80,000, the bank will only demand $80,000 in repayment for the $120,000 loan. This sounds like a great deal—and usually it’s the only deal—but there are a couple of things to watch out for.

The first is that $40,000 you made on the loan will probably be counted as income, and the bank will issue a Form 1099 which means that you’ll be on the hook for tax on that income. If you’re really out of money, this is unlikely to cause a real problem, but if you have a little more than most short-sellers, you may be in trouble.

The other issue is that banks will sometimes seek a “deficiency judgment” against sellers. That means that the bank would like to recoup the money you owe them but are unable to pay because of the value of your home. If the seller has not requested that the bank waive its right to seek a deficiency judgment, it’s still on the table. Being unable to pay a judgment can further damage your credit.

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Weighting short sale vs. foreclosure? Read this first

Facing the very real prospect of having to choose between squeaking by another month of mortgage payments or paying other monthly bills and buying necessities like groceries has unfortunately become a regrettable realty for millions of Americans.Whether you’re struggling to make your monthly payment due to the loss of a job, an interest rate re-adjustment, ugly divorce, sickness or injury, the question millions are forced to ask, “Should I try for a short sale or go ahead with a foreclosure?” Only use a foreclosure as a last resort The buzzword “foreclosure” is everywhere these days; we all are talking about it.

 

Facing the very real prospect of having to choose between squeaking by another month of mortgage payments or paying other monthly bills and buying necessities like groceries has unfortunately become a regrettable realty for millions of Americans.Whether you’re struggling to make your monthly payment due to the loss of a job, an interest rate re-adjustment, ugly divorce, sickness or injury, the question millions are forced to ask, “Should I try for a short sale or go ahead with a foreclosure?” Only use a foreclosure as a last resort The buzzword “foreclosure” is everywhere these days; we all are talking about it. 

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Facing foreclosure – How it will effect your credit score

Times are tough across the country forcing tens of thousands of people into foreclosure or facing the very real possibility of losing their homes.With so many people in the same boat many are left wondering how foreclosure will affect their credit scores.Restoring credit scores are extremely important as soon as possible for so many Americans in order to acquire a rental home and restore a tinge of normalcy to their everyday lives.

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Facing Foreclosure? There may still be hope for your Home and Credit Score.

The realities of facing a foreclosure can be very painful to grasp. A foreclosure not only means the loss of a home but realistically a huge gouge to your credit and a mountain of debt. There is always hope and a road to recovery, but if you are able to catch the foreclosure before there it is finalized you may be able to save yourself a lot of money and hundreds of points to your credit score.

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Why Do I Have Different Credit Scores?

Great question! Every time a credit report is pulled by a company analyzing your ability to repay a loan they request your credit history from not one, but three credit bureaus; Experian, Equifax and TransUnion. Why do we need to have three different credit bureaus you may ask? Well in a way it is for your own protection! Think of it like a checks and balances system, if there were just one bureau they may go mad with power and create ridiculous credit standards, with three I suppose this is less likely.

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