Credit Score

[bmore_ken]

If your credit score is top-notch there are some very attractive mortgage loans out there. I sold a home to a first-time home buyer the other week (settled Friday) that was a 30 year fixed rate at 3.25%. She was a single girl with a safe steady job and a credit rating of 830!! She got in for no money down a !00%+ mortgage and owed nothing for closing with a credit from the seller and the rest built into her mortgage, so all she actually paid for was the lunch and drinks she bought me after settlement!

Yeah but 830 is not exactly easy to come by in this economy. Just sayin'

[OldBay]

If your credit score is top-notch there are some very attractive mortgage loans out there. I sold a home to a first-time home buyer the other week (settled Friday) that was a 30 year fixed rate at 3.25%. She was a single girl with a safe steady job and a credit rating of 830!! She got in for no money down a !00%+ mortgage and owed nothing for closing with a credit from the seller and the rest built into her mortgage, so all she actually paid for was the lunch and drinks she bought me after settlement!

This is why I got out of real estate years ago. Does she really have a job that provides 30 years of security or just secure enough to get to closing? This girl is underwater immediately. A 0 down mortgage means she will need about 5 years of appreciation to recoup closing costs if she must sell.

In these times, large down payments and 15 year loans make more sense. But that means qualifying for less house which translates to lower commissions.

[OldBay]

Yeah but 830 is not exactly easy to come by in this economy. Just sayin'

Not true. 830 is very easy to do if you have always paid all your bills on time. If you are saying that its hard to find someone that responsible, then I agree.

[bmore_ken]

Not true. 830 is very easy to do if you have always paid all your bills on time. If you are saying that its hard to find someone that responsible, then I agree.

I'm saying there are a lot of people who lost jobs and can't always pay their bills on time once their savings(if they have any) is exhausted. A lot of people forced to work part time who can't always pay every bill on time every month because they no longer have the same income. It's not all black and white my friend

[Byng]

This is why I got out of real estate years ago. Does she really have a job that provides 30 years of security or just secure enough to get to closing? This girl is underwater immediately. A 0 down mortgage means she will need about 5 years of appreciation to recoup closing costs if she must sell.

In these times, large down payments and 15 year loans make more sense. But that means qualifying for less house which translates to lower commissions.

What I ommitted to tell you is that she is my step-daughter so she will be fine! She works for the State as an Investigator for child protective services so has pretty good job security. She was renting and has been for the last ten years, her lease was up and her mortgage payment is just $1.37 more than she was paying in rent.

Plus she has a far better credit rating than me!

[Byng]

....................I did not see much of the Commission, either!

[OldBay]

What I ommitted to tell you is that she is my step-daughter so she will be fine! She works for the State as an Investigator for child protective services so has pretty good job security. She was renting and has been for the last ten years, her lease was up and her mortgage payment is just $1.37 more than she was paying in rent.

Plus she has a far better credit rating than me!

Good for her! The rent v mortgage analysis is valid. I hope her security with the state is as good in practice as you think.

[OldBay]

....................I did not see much of the Commission, either!

LOL. I was such a softie as a realtor that I cut my own commission to get better deals for friends. I cheated myself then, especially with the work of new construction, but all of them appreciated it, and some still even remember.

[bmore_ken]

Good for her! The rent v mortgage analysis is valid. I hope her security with the state is as good in practice as you think.

I was thinking that but didn't want to say it. I wish her the best though

[OldBay]

I'm saying there are a lot of people who lost jobs and can't always pay their bills on time once their savings(if they have any) is exhausted. A lot of people forced to work part time who can't always pay every bill on time every month because they no longer have the same income. It's not all black and white my friend

All that is true. However, there are many people with high incomes and no personal discipline and they have lower scores than 830. I learned early on when I started to do real estate to have folks pre-qualified first before wasting my time taking people around just based upon income statements, who should have been able to afford a house but really couldn't afford to buy lunch.

Personal discipline and deferred gratification are rare qualities. Look at all the shoppers who have no resistance to this Black Friday nonsense. Yeah, that big screen looks cheap, but I see no need to replace 20 year old stuff only because the new & better is "on sale". I wonder how many black friday shoppers have 830 credit scores.

[Byng]

Good for her! The rent v mortgage analysis is valid. I hope her security with the state is as good in practice as you think.

She is a single lady so she has the option of taking in a room-mate if times should get difficult which would cut her mortgage payment at least in half. Unfortunately the abuse of children is not going to go away anytime soon and she because, of her experience, gets the worst cases. The job will always be there but I wish I could say the same for her own mental health and well-being. I don't know how she does the job she does and then comes home at night, kicks her shoes off and manages to live a mostly normal life. I know I could not do what she does.

[OldBay]

She is a single lady so she has the option of taking in a room-mate if times should get difficult which would cut her mortgage payment at least in half. Unfortunately the abuse of children is not going to go away anytime soon and she because, of her experience, gets the worst cases. The job will always be there but I wish I could say the same for her own mental health and well-being. I don't know how she does the job she does and then comes home at night, kicks her shoes off and manages to live a mostly normal life. I know I could not do what she does.

My hat is off to her. And I know that she is not paid enough to do that job. The trend is to eliminate these jobs and replace them with politically connected private contractors at higher cost. Its a win-win for the politicians who can pretend to cut costs and gain more votes and for the contractors who get better pay and benefits than state workers.

[bmore_ken]

All that is true. However, there are many people with high incomes and no personal discipline and they have lower scores than 830. I learned early on when I started to do real estate to have folks pre-qualified first before wasting my time taking people around just based upon income statements, who should have been able to afford a house but really couldn't afford to buy lunch.

Personal discipline and deferred gratification are rare qualities. Look at all the shoppers who have no resistance to this Black Friday nonsense. Yeah, that big screen looks cheap, but I see no need to replace 20 year old stuff only because the new & better is "on sale". I wonder how many black friday shoppers have 830 credit scores.

I don't disagree with most of that. I merely disagreed that a 830 is easy to come by in the economy. There are some irresponsible people out there, but there are many who are victims of circumstance. I pray you're never in a situation where something happens to damage your credit score and you have to fix it. It can be a long hard road

[Byng]

My hat is off to her. And I know that she is not paid enough to do that job. The trend is to eliminate these jobs and replace them with politically connected private contractors at higher cost. Its a win-win for the politicians who can pretend to cut costs and gain more votes and for the contractors who get better pay and benefits than state workers.

Exactly! Which is why she remains 'cash poor'!

[Byng]

I don't disagree with most of that. I merely disagreed that a 830 is easy to come by in the economy. There are some irresponsible people out there, but there are many who are victims of circumstance. I pray you're never in a situation where something happens to damage your credit score and you have to fix it. It can be a long hard road

You are absolutely right bmore_ken, and an 830 credit score does not cross my desk very often and when it does it more normally belongs to a much older person that has not put a foot wrong, ever.

Having said that, I have a few lenders that I keep in my back pocket for where the lender has the Patience, experience, will and that are not after instant gratification financially, that I send all sorts of clients to, so that they can get the help needed 'for free' to repair their credit with the object of purchasing a home.

The lender will map out a course for you with things to do and target dates to meet, with the pledge that if you follow the guidance given they will be willing to lend at a predicted date in the future. The better you do and the better your credit rating becomes then of course it follows that the lower your interest rate will be. The longest this process has taken for any of my clients has been about 18 months, to 2 years.

I have never seen a 3.25% interest rate that was not an 'adjustable rate mortgage' in the almost 30 years I have been selling real estate which is why I pushed my step-daughter into buying. Because a 3.25% Fixed Rate Mortgage is probably as close to 'Free money' as any of us will ever be lucky enough to get.

[OldBay]

You are absolutely right bmore_ken, and an 830 credit score does not cross my desk very often and when it does it more normally belongs to a much older person that has not put a foot wrong, ever.

Having said that, I have a few lenders that I keep in my back pocket for where the lender has the Patience, experience, will and that are not after instant gratification financially, that I send all sorts of clients to, so that they can get the help needed 'for free' to repair their credit with the object of purchasing a home.

The lender will map out a course for you with things to do and target dates to meet, with the pledge that if you follow the guidance given they will be willing to lend at a predicted date in the future. The better you do and the better your credit rating becomes then of course it follows that the lower your interest rate will be. The longest this process has taken for any of my clients has been about 18 months, to 2 years.

I have never seen a 3.25% interest rate that was not an 'adjustable rate mortgage' in the almost 30 years I have been selling real estate which is why I pushed my step-daughter into buying. Because a 3.25% Fixed Rate Mortgage is probably as close to 'Free money' as any of us will ever be lucky enough to get.

When we built our first house in 1982, after years of renting, the rates were 11.25% when we applied for financing in the early spring. By the time the house was completed in the fall, mortgage rates were 19%. I remember reading articles by leading financial experts that "loan rates will never again fall below 10%".

3.25% is indeed great. Its also effectively about 2.5% after the mortgage interest deduction. She must be very happy. Best wishes to you both at Thanksgiving!

[Byng]

When we built our first house in 1982, after years of renting, the rates were 11.25% when we applied for financing in the early spring. By the time the house was completed in the fall, mortgage rates were 19%. I remember reading articles by leading financial experts that "loan rates will never again fall below 10%".

3.25% is indeed great. Its also effectively about 2.5% after the mortgage interest deduction. She must be very happy. Best wishes to you both at Thanksgiving!

And Best Wishes to you and yours for Thanksgiving too! I started in Real Estate in 1986 and remember well those high interest rates. I used to advertise the best interest rates in town at 17.5% and if I remember correctly interest rates went above 20% for a while.

[RavensGrrl]

quizzle.com (run by the quicken people) is a great place to get your credit report AND score instantly for FREE..no catches. they have lots of financial tips & advice for all kinds of stuff too. they also have paid plans for credit monitoring, repair etc.. just answer no!

my credit is great, dad beat financial responsibilty into our heads from a very young age & i've been lucky with job stability. i bought my house by myself at age 25 & just refinanced down to 2.75%!!

[Eastside Terp]

quizzle.com (run by the quicken people) is a great place to get your credit report AND score instantly for FREE..no catches. they have lots of financial tips & advice for all kinds of stuff too. they also have paid plans for credit monitoring, repair etc.. just answer no!

my credit is great, dad beat financial responsibilty into our heads from a very young age & i've been lucky with job stability. i bought my house by myself at age 25 & just refinanced down to 2.75%!!

good for you and dad .......

I was 25 when I bought my first house as well - houses in canton were pretty inexpensive then ......

I am always apprehensive about putting my personal info into those sites to check my score, especially a new site .......

[demopublican]

Any cop would have reacted to her charge to the car with some form of violence. I am sure all of their training would dictate that they stop her before she can get to the car and either drive away or get a weapon. What was she gonna do if she got the car started? Drive them over and/or start a high speed chase?