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Does Applying For A Mortgage Affect Your Credit Score?

(Published on - 9/2/2020 5:38:48 PM)

The current ups and downs in the global economy are affecting almost everyone. Today, keeping one’s credit score high is harder than ever. However, the changing economic trends have led many to make significant financial decisions, such as applying for a mortgage.

More people are now realizing the need to own real estate because it ensures them of their secure future. As great as owning some property sounds, not everyone can afford to purchase a home for cash. Hence, many people choose to take out a mortgage - something that can affect their credit score.

If you’re worried about your mortgage application affecting your credit score negatively, keep reading to see what you can do!

What Is Mortgage Pre Approval?

Understanding mortgage pre approval is an essential step in learning how a mortgage application can affect one’s credit score. Applying for a mortgage requires the applicant to get their credit inquired from a credit bureau. Such an inquiry helps the lender decide if you are qualified get a mortgage or not.

Simply defined, a mortgage pre approval is a certification showing that the applicant’s credit and finances have been carefully looked at by a professional. Generally, people provide their income, assets, finance, debts, and other such details to a loan officer for inquiry. The officer looks at these details and determines the amount that the applicant can afford to pay each month and also determines the interest rate and the maximum amount that the bank is willing to lend the applicant.

This report is generally referred to as a mortgage pre approval.

How Mortgage Pre Approval Affects Your Credit

Undoubtedly, repeated credit checks and inquiries can be detrimental to your credit health. However, this is not the case with every inquiry. Many people think that getting a mortgage pre approval will always affect their score. The truth is, the kind of inquiry that is done by the loan office is what decides whether your credit is affected or not.

An inquiry about your credit can either be a hard inquiry or a soft one. Hard credit inquiries are only performed if you allow them. These are detailed and look at each of your financial aspects very closely. Such inquiries do affect your credit score negatively. On the other hand, soft inquiries are surface-level credit checks that can be done without your permission and don’t affect your score at all.

How to Get Your Credit Ready for a Mortgage

Getting your credit ready for mortgage pre approval is not difficult. Here’s what you can do:

  • Try to pay your debts on time.
  • Maintain your credit score on a good range.
  • Ensure a better credit history with no negative score or late payments.
  • Work with a credit repair company if you find it necessary.

All these steps will make your credit report better. This, in turn, will help you get mortgage approval easily.

For assistance with obtaining a pre approval or to determine your credit score, contact Realty Executives Exceptional Realtors® at (866) 742-5732 or email us at ClientCare@RealtyExecutives.com.


DIY - Turn Your Trash Into Treasure

(Published on - 8/26/2020 2:09:56 PM)

recycle

If you are on a tight budget after moving in your new home, there are plenty of ways to decorate on the cheap. How many bags of trash do you accumulate within a week? 1? 2? Maybe more?

As climate change accelerates, global movements have pushed people to reduce waste and adopt a more sustainable lifestyle. People may think that recycling their garbage and buying eco-friendly products is more than enough, but the truth is that it isn’t.

What everyone should be doing is reducing the number of products they’re throwing away. One way to do this is by purchasing reusable items, but if someone has non-reusable items that they don’t need anymore, what do they do?

This is where DIY comes in! There are a bunch of great DIY products that anyone can make using their trash. Some popular DIYs are listed down below. These will help reduce waste and create excellent items that can be used around the house.

1. Tin Can Plants

Tin cans are found in pretty much every house; some people will have old cans of paints while others will have empty tinned vegetable cans. All these tins can be repurposed as plant holders! Here’s how.

First, empty and wash the tins. After that, spray paint the tins a bright color. Once the paint is dry, some patterns could be created. Some people may draw geometrical designs; others may decorate the tins with colorful abstract drawings. Once the tin is painted, wait for it to dry and then fill it up with a lovely plant.

This DIY ‘tinned’ plant can be a nice piece of décor for both inside and outside the house. These tin-can plants can also complement the furniture if painted and designed accordingly!

2. Bottle Cap Map

Bottles are often repurposed as vases or item holders. However, what ends up in the trash are bottle caps. These small items are thought of as useless and often thrown away, but that’s not true! Bottle caps can be repurposed to create beautiful art pieces that will serve as a wonderful decoration for your house.

A bottle cap map is one such piece. To make a bottle cap map, one has to store any bottle caps that may otherwise be thrown out. Once a considerable amount of bottle caps have been collected, decide what map you’d like to make. A common one most people do is the US map.

Create a rough outline of the map and then begin to fill it with bottle caps. Most people use a wooden canvas and hot glue to create bottle cap maps. A pro tip is to use bottle caps of different colors and designs to make the map stand out.

3. Tic Tac Spice Containers

Anyone with many old tic tac containers lying around can use them to create spice containers. They’re very simple to make too. All one has to do is clean the containers thoroughly and fill them with your desired spice.

Ensure that the containers are labeled. One can do this by merely using some colored paper and marker! This is a great DIY product, and can be made with other small containers too – not just tic tac boxes!

These are just a few simple and easy ways to DIY in your new home when you are on a tight budget.


House Cleaning Tips & Tricks

(Published on - 8/12/2020 6:29:33 PM)

Keeping the house clean has never been more relevant, as good hygiene (and regular hand washing!) is more important than ever. Nobody likes a dirty house, but keeping your house clean can be a lot of work. Doing all the cleaning alone can be a tough job, especially if the person cleaning doesn't know how to clean. Here are five simple and effective tips that'll make cleaning the house much easier.

Avoid Zone Cleaning

Zone cleaning refers to completely cleaning a single part of the house, before moving onto another. A lot of people can get caught up in trying to make sure one area of the house is as presentable as possible. After putting all their efforts into making sure one area is clean, they lose motivation and do not have enough energy for the other rooms.

The pros recommend the habit of task cleaning. This means completing one chore around the entire house, such as sweeping or dusting, and then moving on to another chore. It will make cleaning go by much faster, and the extra steps makes this approach a better workout.

Arrange Cleaning Tools

One of the biggest mistakes that amateurs make is not keeping their cleaning tools together. It might seem like an over exaggeration, but knowing all your cleaning supplies are in one convenient location when you need them can be a blessing. Cleaners centralize all the supplies in a bucket or a tote bag for extra portability.

It would be terrible if you are starting to clean a room and you don’t have the right supplies. It'll be a waste of time, and gathering all the supplies from various closets and cupboards will make cleaning the house seem like a much tougher job. A well-arranged set of cleaning supplies can save you a lot of time and trouble.

Clearing out all clutter

The first priority when cleaning your house is to first clear out all the clutter - this is one of the most crucial tips. Go through the entire house and pick up any clutter that is visible, especially from surfaces you will later need to wipe down. While you’re at it, clear out all the garbage cans as well and it'll make the job much easier.

Vacuum basics

Ideally, before vacuuming the house, all fans should be turned off. This will stop dust from flying around everywhere while you are vacuuming. If there aren't a lot of carpets in the house, using a vacuum isn't necessary and isn't as effective as a broom or a mop. When vacuuming, make sure to vacuum in a grid pattern and cover all the nooks and crannies in the house.

Disinfection

Disinfecting the house is important now more than ever. Pour the disinfectant in a spray bottle, spray all the surfaces, and wipe down everything. Make sure to read the label on your disinfectants and rinse surfaces with a damp cloth if necessary. There are different recipes for home-made disinfectants online, but it's best to stay away from these. Buying a store-bought and approved disinfectant is the way to go to kill bacteria and protect against illness!

Conclusion

Everyone loves having a clean house but cleaning can be a drag. Following these various tips and tricks for household cleaning can make this dreaded chore go by much faster.

Realty Executives Exceptional Realtors® is here for all of your home needs. Call us at (866) 742-5732 or email us at ClientCare@RealtyExecutives.com.


Get Additional Buying Power when Interest Rates Drop

(Published on - 8/5/2020 12:59:19 PM)

With mortgage rates reaching a historic low, homebuyers have the opportunity to get additional buying power as a result of the decrease in interest rates. Even a 1% drop in interest rates significantly increases your purchasing power, so now is a great time to buy a home.

Mortgage Rates Fall Below 3%

The Federal Reserve’s efforts to support the economy during this global pandemic has translated into significant decreases in consumer borrowing costs. Their new policy has caused the average fixed mortgage rates to fall to historic lows.

The Freddie Mac survey of mortgage rates nationwide showed the average 30-year mortgage rate at 2.98%. This is the first time that rates have dropped below 3% since they began publishing this information in 1971. 15-year mortgage rates have also decreased to 2.51%, which is a significant reduction from last year's average of 3.22%.

Although most potential buyers were facing stay at home orders and quarantine requirements, pending home sales had a record jump of 44.3% in May. This has led the National Association of Realtors to predict that a comeback is building within the housing sector.

Additional Buying Power from a 1% Drop in Interest Rates

As rates continue to decline, the buying power of consumers continues to increase. Even with higher home prices, this provides a very attractive opportunity to lock in long-term rates since lower mortgage rates equate to lower monthly payments.

For example, a 1% drop in interest rates – such as the decrease from 3.98% to 2.98% – can lead to significant monthly savings. Here is the illustration on a $250,000 30-year mortgage:

$250,000 Mortgage 3.98% Interest Rate  $1,191 Monthly Payment 
$250,000 Mortgage 2.98% Interest Rate $1,051 Monthly Payment

As you can see, this 1% decrease in rates results in monthly savings of $140. This means that you will save about $50,400 in interest over the 30-year mortgage term!

Another way to look at this is to consider the boost in buying power. If a borrower is comfortable making the $1,191 monthly payment, then they can afford to take out a larger mortgage. Consider this example:

$250,000 Mortgage 3.98% Interest Rate  $1,191 Monthly Payment 
$283,250 Mortgage 2.98% Interest Rate $1,191 Monthly Payment

In this scenario, the 1% drop in interest rates has boosted your buying power by over $30,000. This means you can buy a more expensive home while keeping your monthly payments affordable.

What Does This Mean for Potential Homebuyers?

For potential buyers that qualify for mortgages, lower interest rates can counteract increasing home prices by boosting purchasing power. This has convinced potential borrowers to jump into the market, and mortgage applications have climbed close to the highest levels since the 2008 housing market crash.

Lower rates also have positive implications for existing homeowners, as refinancing provides an opportunity to lower their monthly expenses and free up cash for other purchases like remodeling.

Overall, this low mortgage rate environment has made it a great time to buy a home! For assistance in purchasing a home during these unprecedented low interest times, please call Realty Executives Exceptional Realtors® at (866) 742-5732 or email us at ClientCare@RealtyExecutives.com.


Buying A House During A Pandemic

(Published on - 7/13/2020 3:26:25 PM)

The coronavirus pandemic has ruined innumerable plans, and buying a house may be one such plan for some people. However, now with lockdowns easing in most parts of the country, people are gradually starting their lives again. This means that many people are now beginning to get back to their paused plans.

Even though buying a house is a tale as old as time, it is still as confusing and challenging as ever. People who are investing in a property in such uncertain times have to consider a number of things, including the economy, health risks, and the changing governmental policies.

So how does one buy a house during this chaos? Luckily, it’s not impossible. This post tackles the process of buying a house during a pandemic. So, read on.

Financial Aspects
The current pandemic has led to a global economic downturn. Despite this, a few areas still remain unbothered by the health crisis, including the housing sector.

Interestingly, there has been no significant drop in the number of homes currently being sold. In fact, the US economy is now recording historically low mortgage interest rates, which have given a push to home sales. A low-interest rate ultimately guarantees lower monthly payments when an individual buys a house. This means that buying a house now is more economical compared to before the pandemic.

Currently, many potential buyers are leaving the more populated cities and heading for the suburbs. For this reason, it is critical that serious home buyers get pre-approved by a recommended lender and have all their financial “ducks in a row”. This way, should there be multiple buyers interested in purchasing the same suburban property, the buyer able to demonstrate their financial strength will be at a huge advantage.

Safety-Related Aspects
People are also trying to avoid coming in contact with potential COVID-19 carriers, and this may make buying a house more challenging. Many cities have banned open house showings. Even where these aren’t banned, a one on one appointment is required for a home viewing to minimize contact with other people. Viewing through an appointment can slow down the process of looking at houses, but it lessens the chances of viral contraction.

Another safe way people are buying homes now is through a virtual tour. Potential buyers are now provided with photographs, video vignettes, and 3-D online tours to make it easy for them to decide whether or not they like the house.

Lastly, health concerns have also changed the documentation work related to buying a house. People buying and selling a house during this pandemic have to sign a disclosure claiming the absence of any viral symptoms and ensuring they have had no connection to anyone with symptoms.

Conclusion
Buying a house during the pandemic is not impossible. One just has to take extra care and try adapting to the new changes. Doing so will make sure that they own a house with a minimum probability of contracting the disease or bearing any other loss.

For more specific guidance on buying a home during this pandemic, please call Realty Executives Exceptional Realtors® at (866) 742-5732 or email us at ClientCare@RealtyExecutives.com.


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