As a follow-up to a recent blog post,Your Credit and Your Home Purchase, I want to share a tip from a credit restoration company I know…

“As Shakespeare almost put it, To Pay Or Not To Pay, that is the question:

When it comes to your credit scores, paying the right account or the wrong account can make a massive difference in your credit scores. Let’s focus on what not to pay. One would assume when paying off bad debts on your credit report, the credit scores would always increase. However “one” is not always correct. Paying off items like your utility collection, or your cell phone collection will most likely decrease your scores. This is despite the popular belief that having a $0 balance on your collection accounts must be better than owing money. Balances on collections are irrelevant, for example you could have a one million dollar medical collection or a one dollar medical collection and if everything else is the same the scores would also be the same. The reason why your scores generally decrease when a payment is made is because by making a payment you reactivate the account causing it to report as new again. This is shown as the ‘DLA’ on a credit report. This ‘DLA’ or ‘Date of Last Activity’ represents the weight of the account AND the seven year statute until the item will fall off naturally (which is a whole other problem, but we will save that for another day).

The reasoning behind this madness is that the algorithms that calculate scores cannot discriminate against wealthier/poorer individuals. So the fact that a wealthier person has the ability to pay off a certain dollar amount more easily than a poorer person would be discriminatory on algorithm calculation.”

Confused? Contact us and we’ll put you in touch with a reliable lender who can answer your questions.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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Are you an unmarried couple hoping to buy a home together? In today’s culture, more unmarried couples are purchasing their first homes together. Mark Sheets, real estate author and blogger, offers some good advice about potential pitfalls to research before you buy.

Financially, ownership of your home can be very advantageous. However, it can be more difficult to end a co-ownership than it is to get a divorce. So, you need to prepare in advance. You want to make sure the process gives both of you the outcome that you expect.

When making the decision to purchase a home with your significant other, you and partner must know that a property agreement is a legal contract. One of the more important aspects of purchasing a home together is determining how the investment will be split. In many cases, one partner may initially invest more money into the home than the other.  Unequal ownership can be handled, but it has its own set of problems.

Another issue to confront in the process is filing for a Joint Tenancy With Rights of Survivorship (JTWROS).  A JTWROS allows for the home and assets to be passed to the surviving partner if the other were to pass away. This lets the partner avoid inheritance taxes, as the home won’t go through an estate.  Married couples are automatically granted JTWROS whereas unmarried couples are not.

If the relationship were to end, a dividing of the assets needs to take place.  Although everyone in a relationship hopes for the best, preparing for the worst-case scenario will alleviate a lot of pain in the future. The goal is to anticipate different scenarios under which you may want to dissolve the co-ownership.

When the time comes to apply for a mortgage, the lender needs to run both of your credit scores.  This can backfire if one of you has a great credit score and one has a not-so-good score.  If this is the case, then you may not get the loan. Investigate ahead of time to know where you stand. You will also want to check your individual state’s laws regarding an unmarried couple purchasing a home together, as some states don’t allow it.

An option to co-ownership might be for you to form a business partnership or a limited liability company to own the property. They are both legal business entities that can take on many forms. The business would then own the property and collect rent from the individuals living in the home. This eliminates any issues with state laws that prohibit co-ownership of unmarried couples. It potentially also makes transfer of ownership easier at a later date.

In any case, you must first consult a real estate attorney in your state to determine the pros and cons and to determine the best legal form of ownership to accomplish your goals.

Information provided by Orlando Realtor Teri Isner.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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Is your credit score a big deal? If you want to buy a home, it’s a huge deal!

Your credit score will determine if you can get a loan. It will also determine how much you can borrow and what your interest rate will be! To buy a home with a mortgage loan you must have a strong credit score.

There are three primary sources for credit scores in the US: Equifax, Experian and TransUnion. They all use the FICO system. These are the most used sources by creditors.

FICO developed the computer software the major credit scoring companies use. FICO scores range from 300 to 850. However, many creditors consider 500 to be the bottom of the acceptable range.

Your score is a measure of your credit-worthiness and determines the interest rate that you will pay for a loan. It’s not unusual for a creditor to obtain all three of the major scores and average them. A very good score is 700, and an excellent score in 750.

The primary factors that determine your score are:

• payment history (35%)
• debt/amounts owed (30%)
• age of credit history (15%)
• new credit/inquiries (10%)
• mix of accounts/types of credit (10%)

65% of the total score is determined by only two factors: payment history and amount of debt owed. You must have a good history of paying your bills on time. And you must be very careful about how much debt you have relative to your income!

That last point is extremely important when borrowing for a home mortgage. As of 2014 the federal regulations governing mortgage lending have changed. Borrowers can no longer carry total debt of more than 43% of gross annual income, including the mortgage debt! Lenders are going to be very strict about adhering to that ratio. There are serious consequences for the lender not doing so.

Many actions you take affect your score. Most people don’t think about:

• unpaid medical bills and parking tickets can lower your credit score
• heavy credit use can lower your score, even if you pay large balances off in full in a short time
• credit scores drop if you sign up and use store cards for initial discounts

For more advice about managing your credit, click here.

Looking forward to buying a home? Educate yourself, manage your credit score, and know your credit score before your lender does.

Information provided by Teri Isner Orlando Avenue Top Team.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

There are two typical questions raised all the time about real estate…

Sellers: “Shouldn’t I first start with trying to save some money by selling on my own as a “For Sale By Owner?”

Buyers: “Shouldn’t I just look around on my own and work with the listing agents when I find something I like?”

Both of those scenarios have hidden problems. The field of real estate is loaded with land mines. Real estate professionals “know the ropes” so you don’t need to. Here are some thoughts for you to consider!

• Sellers need true expert guidance navigating the dangerous pitfalls that currently exist. Finding a buyer ready, willing and able to pay fair market value at a time when lending standards are so stringent is not an easy task.

• Buyers are finding reasonable financing is not easy to come by. It can be very tricky when interest rates are volatilelike they have been over the last several months. And underwriting standards are tight, meaning that you need special guidance getting pre-approved and assuring that your credit is clear.

• Both buyers and sellers need to be hiring a talented negotiator who could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that offer after a home inspection, to the possible cancellation of the deal based on atroubled appraisal – you need someone who can keep the deal together until it closes.

• Sellers should also realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating forthemselves and their families, what makes you think they will not act the same way when negotiating for you and your family?

• Buyers should consider working with a buyer’s agent from the start. That should be someone who really tunes into your needs and wants. That’s so they can really pinpoint the search for the right property for you. They can save you hours of spinning your wheels and they are ultimately compensated by the seller at the closing table.

Both buyers and sellers should take to heart that old saying “You get what you pay for.” Just like a good accountant or a good attorney, real estate professionals will save you money when all is said and done.

Information courtesy of Orlando Realtor Teri Isner.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

First-time homebuyers owe it to themselves to do a lot of research about the finances of buying a home. Here are four first-time homebuyer mistakes to avoid.

1. Spending the maximum amount on a mortgage a lender will loan.

Lenders often qualify buyers based on incomes and debt-to-income ratios without considering how much the borrowers spend on other budget items.

Financial experts recommend that consumers decide how much they want to spend each month on housing before meeting with a lender. It’s up to you to know your budget and to not just jump at a mortgage amount that a lender says you can afford.

2, Not getting pre-qualified.

This should be the first step toward homeownership. Many first-time homebuyers wait until they are ready to start house hunting before contacting a lender.

Buyers need to get pre-qualified early enough in the process so that they can make changes if they need to or correct errors on their credit report. Some first-time buyers may need to spend up to a year saving more money, increasing their incomes or cleaning up their credit before making an offer on a home.

3. Underestimating the importance your credit score.

While most consumers know it’s important to have a high credit score, not everyone understands how costly a low score can be. Mortgage lending is done with a tier of interest rates and terms based on consumer credit scores. Learn about credit scores the minute you start working. Many websites provide information about how to improve your credit score.

And remember, even after a mortgage approval, you must avoid applying for new credit or taking on new debt, because a second credit check is now often required before settlement.

4. Choosing the wrong mortgage product

Many first-time homebuyers opt for a 30-year fixed-rate mortgage only because it is an industry standard. Alternatives to a 30-year-fixed sometimes make more sense. For example, buyers certain they will be relocated by their companies within five years may find a 5/1 ARM could be a much better mortgage.

Homebuyers eager to build equity in their homes or who are older and want to live mortgage-free in retirement should consider a 15-year fixed-rate loan or even a 10-year mortgage to reach their goals.

Do your homework and don’t jump at a mortgage because it will buy you a bigger home.

Information provided by Orlando Realtor Teri Isner.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

First-time homebuyers owe it to themselves to do a lot of research about the finances of buying a home. Here are four first-time homebuyer mistakes to avoid.

1. Spending the maximum amount on a mortgage a lender will loan.

Lenders often qualify buyers based on incomes and debt-to-income ratios without considering how much the borrowers spend on other budget items.

Financial experts recommend that consumers decide how much they want to spend each month on housing before meeting with a lender. It’s up to you to know your budget and to not just jump at a mortgage amount that a lender says you can afford.

2. Not getting pre-qualified.

This should be the first step toward homeownership. Many first-time homebuyers wait until they are ready to start house hunting before contacting a lender.

Buyers need to get pre-qualified early enough in the process so that they can make changes if they need to or correct errors on their credit report. Some first-time buyers may need to spend up to a year saving more money, increasing their incomes or cleaning up their credit before making an offer on a home.

3. Underestimating the importance your credit score.

While most consumers know it’s important to have a high credit score, not everyone understands how costly a low score can be. Mortgage lending is done with a tier of interest rates and terms based on consumer credit scores. Learn about credit scores the minute you start working. Many websites provide information about how to improve your credit score.

And remember, even after a mortgage approval, you must avoid applying for new credit or taking on new debt, because a second credit check is now often required before settlement.

4. Choosing the wrong mortgage product

Many first-time homebuyers opt for a 30-year fixed-rate mortgage only because it is an industry standard. Alternatives to a 30-year-fixed sometimes make more sense. For example, buyers certain they will be relocated by their companies within five years may find a 5/1 ARM could be a much better mortgage.

Homebuyers eager to build equity in their homes or who are older and want to live mortgage-free in retirement should consider a 15-year fixed-rate loan or even a 10-year mortgage to reach their goals.

Do your homework and don’t jump at a mortgage because it will buy you a bigger Orlando Florida home.

Access Teri’s one-stop Orlando FL home shopping website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

If you’re considering buying an Orlando FL home here are some key questions to ask before you commit…

Why are you buying a home? Simon Sinek is the author of a book called Start With Why. It’s a business book, but is very applicable to life’s decisions. Sinek says that you must know why you’re doing something before you start figuring out how to do it. His advice surely applies to buying a home!

According to a survey by the Joint Center of Housing Studies at Harvard University, the top four reasons for buying a home have nothing to do with money. Typical reasons given were…

• I want to have control over my living spaces
• I want my children to go to good schools
• We need more space for our growing family
• We want to have influence over our neighborhood

There is no right or wrong reason for you to want to buy a home. It’s personal. The decision to buy also tends to be more emotional than financial. Make sure you know what your personal reasons for buying are, and use them to guide your decisions. You can’t avoid the financial issues, but that’s not the place to start.

Where are home values headed? According to the last quarterly survey by Pulsenomics.com the average predictions of over 100 economists said national home vales would rise 4.28% in 2014. That is a national average. So, ask your favorite Realtor what they think concerning future values of homes for sale in Orlando FL.

Buying a home is not an investment in the real sense of that word. A home should be seen as a hedge against inflation. Therefore, you want to feel secure the home values are likely to grow more than the inflation rate. The NAR has predicted home values will increase 6% in 2014. That’s higher than Pulsenomics’ survey predicted. It is also higher than inflation is expected to be.

Where are interest rates headed? NAR predicted interest rates could hit 5.4%, or 1% higher than the end of 2013. That news should be saying to buyers there is no point waiting to buy. Don’t sit around hoping that mortgage interest rates will drop. Keep up with interest rates here.

That all says it’s probably a good time to buy. So, know your credit score and arrange your finances to make sure you qualify for a loan.

Access Teri’s one-stop Orlando FL home shopping website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

Savvy real estate investors always seem to find great deals. But the truth is there are always great deals out there. You just have think and act like an investor. Here are tips to make the most of the Orlando real estate market…

1. Expect competition
2. Be ready
3. Prioritize

Access Teri’s one-stop Orlando FL home shopping website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!