Your credit score is based on the following five factors:
Your payment history. (35% of your score)
It shows whether you make payments on time, how often you miss payments, how many days past the due date you pay your bills and how recently payments have been missed.
How to improve it: Make all your payments on time. The higher your proportion of on-time payments, the higher your score will be. Each time you miss a payment, you risk losing points.
Amount owed on loans and credit cards. (30% of your score)
It's based on the entire amount you owe, the number and types of accounts you have, and the proportion of money owed compared to how much credit you have available.
How to improve it: Smaller balances on credit cards can raise your score0 if you pay on time. High balances and maxed out credit cards will lower your credit score. New loans with little payment history may drop your score temporarily, but loans that are closer to being paid off can increase it because they show a successful payment history.
Length of your credit history. (15% of your score)
The longer your history of making timely payments, the higher your score will be.
How to improve it: This simply takes time. It may seem wise to avoid applying for credit and carrying debt, but it can actually hurt your score if lenders have no credit history to review.
Types of accounts you have. (10% of your score)
A mix of accounts is the best.
How to improve it: If you only have one type of account, add another type when it makes sense for you. Installment loans, home loans, retail and credit cards will improve your score.
Recent credit activity. (10% of your score)
Steady credit activity is best.
How to improve it: If you've opened a lot of accounts recently, or applied to open accounts, it suggests potential financial trouble and can lower your score. However, if you've had the same loans or credit cards for a long time and pay them promptly- even after payment troubles- your score will go up over time.
Be sure to review your credit report annually. It's smart to stay on top of your credit report, and know what potential creditors are seeing. You can request a free copy of your credit report from each of three major credit reporting agencies- Equifax, Experian and Transunion- once each year at AnnualCreditReport.com or call toll-free 1-877-322-8228.
Review your credit reports carefully, as each one may contain inconsistent information or inaccuracies. If you spot an error, request a dispute form from the agency within 30 days of receiving your report.
Information taken from Wells Fargo Home Mortgage Newsletter, Fall 2013, Volume 10, Issue 4
Friday, November 22, 2013
Thursday, November 21, 2013
Ten Things You Might Not Know About Arizona
Arizona celebrated 101 years of statehood earlier this year.
Now as we approach our 102nd birthday, AZCentral brings you 101 things you may or may not know about the Grand Canyon State.
http://www.azcentral.com/news/arizona/articles/20131105arizona-101-prog.html
Now as we approach our 102nd birthday, AZCentral brings you 101 things you may or may not know about the Grand Canyon State.
http://www.azcentral.com/news/arizona/articles/20131105arizona-101-prog.html
Monday, November 4, 2013
Apple in Arizona: More than 700 jobs coming to Valley, says Gov. Brewer
Great news for Mesa!!
By: abc15.com staff
By: abc15.com staff
MESA, AZ - Apple is coming to the Valley and will create more than 700 jobs for Arizonans, announced Gov. Jan Brewer Monday afternoon.
The newest U.S. manufacturing facility for Apple will be in Mesa near Elliot and Signal Butte roads.
"Apple is indisputably one of the world's most innovative companies and I'm thrilled to welcome them to Arizona," said Brewer.
She said it will create at least 700 quality jobs in the first year and generate significant capital investment.
It will also generate about 1,300 construction and other associated jobs.
"Apple's confidence in Arizona and its selection of Mesa as the site of its newest manufacturing facility represents an enormous win for our state and a historic investment in our community," said Sandra Watson of the Arizona Commerce Authority.
Brewer said bringing Apple to Arizona was a collaborative effort led by the Arizona Commerce Authority, chaired by Brewer, in conjunction with partners at Salt River Project, the Greater Phoenix Economic Council, the city of Mesa and Maricopa County.
The newest U.S. manufacturing facility for Apple will be in Mesa near Elliot and Signal Butte roads.
"Apple is indisputably one of the world's most innovative companies and I'm thrilled to welcome them to Arizona," said Brewer.
She said it will create at least 700 quality jobs in the first year and generate significant capital investment.
It will also generate about 1,300 construction and other associated jobs.
"Apple's confidence in Arizona and its selection of Mesa as the site of its newest manufacturing facility represents an enormous win for our state and a historic investment in our community," said Sandra Watson of the Arizona Commerce Authority.
Brewer said bringing Apple to Arizona was a collaborative effort led by the Arizona Commerce Authority, chaired by Brewer, in conjunction with partners at Salt River Project, the Greater Phoenix Economic Council, the city of Mesa and Maricopa County.
Saturday, October 26, 2013
FREE MONEY! HARP 2.0- Are YOU Eligible?
Up to $100,000 in principal forgiveness!
* Loan must be owned by Freddie Mac or Fannie Mae (sold to them by 6/1/09)
* Must be current on payments
* No late payments in last 6 months
* Max 1 late payment in months 7-12
* No FICO requirements
* Available for primary residence
* Refi available for non-owner occupied and second homes
To learn more about the program call or email me! 602-330-3379; stacia.ehlen@remax.net
Information provided by LeAnn, The Lending Lady
* Loan must be owned by Freddie Mac or Fannie Mae (sold to them by 6/1/09)
* Must be current on payments
* No late payments in last 6 months
* Max 1 late payment in months 7-12
* No FICO requirements
* Available for primary residence
* Refi available for non-owner occupied and second homes
To learn more about the program call or email me! 602-330-3379; stacia.ehlen@remax.net
Information provided by LeAnn, The Lending Lady
Wednesday, October 16, 2013
Do Remodeling Projects Pay?
by Monica Perdue
We all love to see the before and after on home remodeling shows and the biggest appeal seems to be updated kitchens and master baths. It’s all about the “wow” factor! But when you are selling your home, it’s important to consider (in business terms), the ROI, which is Return On Investment. Cost versus value is clearly a tricky thing. According to the National Association of REALTORS, “A house that sparkles on the surface will sell faster than its shabby neighbor, even though both are structurally well-maintained… Buyers feel more comfortable purchasing a well-cared for home because if what they can see is maintained, what they can’t see has probably also been maintained.”
Considering potential renovations requires research. Personally, I’d love to have a luxurious master bath with heated Travertine tile floors, mosaic accents in the over sized fully glass-enclosed shower with wall jets, not to mention those sexy above counter sinks, but is it worth the investment? Appraisers care more about the condition of the house and property, square footage (overall living space), number of bedrooms and baths, and what your neighbor’s home sold for, not necessarily the latest bathroom renovation . It’s all about function over form.
The Remodeling 2012–13 Cost vs. Value Report (www.costvsvalue.com), outlines which project give you the most bang for your buck! It may not all be so sexy, but when you’re ready to sell, getting more return for your investment makes you feel much more warm and fuzzy about the deal.
Entry Door Replacement (Steel): Not sexy at all, but this simple update costing an average of $1,100 gives you an 85% return, that’s over $900 back. And in the meantime you have more security and an entryway that could appeal to potential buyers.
Deck Addition (Wood): This is definitely a more fun add-on, but may not be on your remodel list. This renovation has an average 77% return, with the average cost around $9,000 and a re-sale value of $7,000. It’s definitely something to consider. Using composite over wood elevates the cost significantly (average$15,000 ) and your return percentage drops to 67%. When considering this type of remodel, wood may provide the best return.
Minor Kitchen Remodel: When I saw this, my big question is “What does ‘minor’ mean?” Essentially this is a re-facing of the kitchen, keeping all the structure of the current kitchen, replacing cabinet facings (doors, drawers and hardware), updating counter tops, sink and faucet, new energy efficient oven and cook top, as well as repainting. This “minor” kitchen remodel could cost an average of $18,500 with over 75% return – potentially $14,000 back in your pocket when you sell.
Siding Replacement (Vinyl): This is not an exciting conquest when looking at remodeling options, but when you are selling your home, consider what an inspector will be looking at for your prospective buyer. No one wants to come into a home with a need for hefty updates, especially replacing siding. If your house needs it, it’s definitely value added. Another 73% return with an average cost of $11,000 adding $8,000 in home value.
Basement Remodel: More “livable” space always increases value. While this is the most expensive remodel yet, it provides great return for dollars spent. Extra living space immediately adds value, but a finished basement can be many things to many people. It could be a second/separate living space for family. It could be a great place to entertain. A place to send your kids to watch movies, or to get away from your kids. Possibilities are virtually limitless. This being an extensive project with extensive costs (average $60,000), this would be a great option for someone looking to sell down the road. Get some of that value for yourself and then hopefully get it back at about 70% return when you sell.
Bottom line, your remodeling plans need to be something that will make you happy now as well as help you sell later because in most cases you won’t get 100% of your investment back. With all renovations to your home, your return will vary from buyer to buyer as well as from one location to the next. It’s important to discuss your desired updates with a respectable contractor. And when considering these renovations for resale value, it’s even more important to discuss with your local real estate professional. They have the best grasp of what you can gain based on the renovation and the buyers market in your area.
© 2012 Hanley Wood, LLC. Complete data from the Remodeling 2012–13 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.
We all love to see the before and after on home remodeling shows and the biggest appeal seems to be updated kitchens and master baths. It’s all about the “wow” factor! But when you are selling your home, it’s important to consider (in business terms), the ROI, which is Return On Investment. Cost versus value is clearly a tricky thing. According to the National Association of REALTORS, “A house that sparkles on the surface will sell faster than its shabby neighbor, even though both are structurally well-maintained… Buyers feel more comfortable purchasing a well-cared for home because if what they can see is maintained, what they can’t see has probably also been maintained.”
Considering potential renovations requires research. Personally, I’d love to have a luxurious master bath with heated Travertine tile floors, mosaic accents in the over sized fully glass-enclosed shower with wall jets, not to mention those sexy above counter sinks, but is it worth the investment? Appraisers care more about the condition of the house and property, square footage (overall living space), number of bedrooms and baths, and what your neighbor’s home sold for, not necessarily the latest bathroom renovation . It’s all about function over form.
The Remodeling 2012–13 Cost vs. Value Report (www.costvsvalue.com), outlines which project give you the most bang for your buck! It may not all be so sexy, but when you’re ready to sell, getting more return for your investment makes you feel much more warm and fuzzy about the deal.
Entry Door Replacement (Steel): Not sexy at all, but this simple update costing an average of $1,100 gives you an 85% return, that’s over $900 back. And in the meantime you have more security and an entryway that could appeal to potential buyers.
Deck Addition (Wood): This is definitely a more fun add-on, but may not be on your remodel list. This renovation has an average 77% return, with the average cost around $9,000 and a re-sale value of $7,000. It’s definitely something to consider. Using composite over wood elevates the cost significantly (average$15,000 ) and your return percentage drops to 67%. When considering this type of remodel, wood may provide the best return.
Minor Kitchen Remodel: When I saw this, my big question is “What does ‘minor’ mean?” Essentially this is a re-facing of the kitchen, keeping all the structure of the current kitchen, replacing cabinet facings (doors, drawers and hardware), updating counter tops, sink and faucet, new energy efficient oven and cook top, as well as repainting. This “minor” kitchen remodel could cost an average of $18,500 with over 75% return – potentially $14,000 back in your pocket when you sell.
Siding Replacement (Vinyl): This is not an exciting conquest when looking at remodeling options, but when you are selling your home, consider what an inspector will be looking at for your prospective buyer. No one wants to come into a home with a need for hefty updates, especially replacing siding. If your house needs it, it’s definitely value added. Another 73% return with an average cost of $11,000 adding $8,000 in home value.
Basement Remodel: More “livable” space always increases value. While this is the most expensive remodel yet, it provides great return for dollars spent. Extra living space immediately adds value, but a finished basement can be many things to many people. It could be a second/separate living space for family. It could be a great place to entertain. A place to send your kids to watch movies, or to get away from your kids. Possibilities are virtually limitless. This being an extensive project with extensive costs (average $60,000), this would be a great option for someone looking to sell down the road. Get some of that value for yourself and then hopefully get it back at about 70% return when you sell.
Bottom line, your remodeling plans need to be something that will make you happy now as well as help you sell later because in most cases you won’t get 100% of your investment back. With all renovations to your home, your return will vary from buyer to buyer as well as from one location to the next. It’s important to discuss your desired updates with a respectable contractor. And when considering these renovations for resale value, it’s even more important to discuss with your local real estate professional. They have the best grasp of what you can gain based on the renovation and the buyers market in your area.
© 2012 Hanley Wood, LLC. Complete data from the Remodeling 2012–13 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.
Thursday, September 19, 2013
30 Years of Interest Rates
Rates are still close to their 30 year low! If you are thinking of buying, now is the time!
Thursday, August 22, 2013
FHA Credit Policy Change Makes it Easier to Qualify
Some great info from one of my favorite lenders!
FHA Credit Policy Change Makes it Easier to Qualify "Economic Events" Recognized as Isolated
Effective immediately, policy changes in the way the Federal Housing Administration (FHA) views certain derogatory credit will make it easier for some borrowers to qualify for purchasing a home. Allowances will be made for certain "Economic Events" resulting in poor credit ratings, which previously would cause borrowers to be ineligible.
What do the new rules say? Potential borrowers who experienced a decrease of income by 20 percent or more for at least six months, and that resulted in serious derogatory credit such as a short sale, foreclosure, or bankruptcy, may still be eligible as long as:
What do the new rules say? Potential borrowers who experienced a decrease of income by 20 percent or more for at least six months, and that resulted in serious derogatory credit such as a short sale, foreclosure, or bankruptcy, may still be eligible as long as:
- The loss of employment or income was due to an extenuating circumstance beyond his or her control and can be documented;
- A satisfactory credit history has been restored for a period of 12 months; and
- Housing counseling has been completed.
If you or anyone you know has been previously denied for a home loan based on an isolated credit incident, I may be able to help! And I'm always happy to answer any questions you may have.
Sincerely,
LeAnn ScrimpshireAaron Lending LLC NMLS156162
LeAnn@TheLendingLady.com
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