Solving The Credit Score Puzzle

For many potential home buyers, understanding credit can be a confusing puzzle to solve. I'll try to help you put the puzzle together from the perspective of getting approved for a home mortgage.

The first step in securing financing for your next home will be a review of your credit. The lender will evaluate your credit score, payment history, balances carried, length of credit history, and types of credit. A not-so-good credit score can disqualify you for a mortgage if you do not meet the lender's minimum credit standards, it can affect your interest rate, and can raise your insurance costs.

Credit scores are comprised of five weighted factors:  payment history (35%), balances (30%), length of history (15%) type of credit (10%), and new credit (10%). Let's take a closer look at these components and some strategies to improve your score.

What Features Do Most Buyers Want In A Home?

According to a study conducted by the National Association of Home Builders, home buyers want features that will help them save energy and money and keep their family and home organized. Although home buyer preferences differ from generation to generation, there are many features that most buyers desire.  Here are features that are most important to home buyers as a whole.

Laundry room - A separate laundry room is one of the most desired features. Home buyers feel that having a separate laundry room keeps the mess of dirty laundry and ironing contained, and keeps their home cleaner and more organized.  Check out some great laundry room designs on Houzz.

Can You Purchase Real Estate With Your IRA?

Yes you can.  It's important to note that there are strict rules and processes that must be followed to do it right.

There are several different ways your IRA can own the property . . . it can pay cash and hold the title, it can partner with other IRA funds or personal funds, it can hold interest in an LLC or land trust and hold the title in the name of the LLC, among other ways. Your IRA can hold various investment property types including commercial buildings, vacant land, condos, mobile homes, apartment buildings, residential real estate, and more.