Avoid changing jobs. When you change jobs, it can be difficult for lenders to predict future earnings. Any major career changes, such as corporate employee to self-employed, should also be delayed. Remember, the lender will look two years back and average your income. Anything that will make that process difficult is a bad idea.

For more tips on the home buying process, please contact one of our Century 21 V.J.F. Realty professionals  today.

FEATURED LISTING

Ownership of several credit cards can hurt your credit score

Mostly false. Having many credit lines isn’t necessarily a bad thing, says credit expert Liz Weston, author of Your Credit Score. Multiple lines give you a favorable debt-to-available-credit ratio. But use them correctly: It’s best to keep any balances below 10% or 20% of the total credit line, she says. Anything more will affect the ratio of debt-to-available-credit, which can decrease your credit score.

Opening and closing credit lines can hurt your credit score

True. New credit applications can decrease your credit score, so be careful about applying for new credit cards or personal loans before applying for a HELOC, second mortgage, automobile loan, or other large line of credit.

Surprise: Closing existing credit lines may also hurt your credit score, since it’ll damage your debt-to-available-credit ratio. A good rule is not to make any credit changes in the months leading up to a major credit request, such as for a HELOC.

Consolidating credit lines will help your credit score

Mostly false. Although it may seem like a good idea to move all your balances to one card, that can actually hurt your credit score, since your debt-to-available-credit ratio will spike on that card, says Weston.

However, credit expert Harrine Freeman says such a slight decline isn’t necessarily a deal-breaker for a loan, especially if the card has a lower interest rate and will allow you to pay off the balance sooner. Your score will increase as soon as that ratio goes down.

Changing jobs can hurt your credit score

Partly true. Taking a new job or losing your job doesn’t affect your credit score. However, if you have a spotty employment history, lenders may hold that against you in making a loan. Dips in income may signal that it could be difficult to pay bills in a timely manner.

Co-signing for others can hurt your credit score

Partly true. Simply co-signing on a loan for someone else may not affect your score, but if that person is late on paying the loan, it’s likely to show up on your report, says Freeman. And that’s a nasty surprise if you didn’t know the person was late.

Judgments and liens aren’t considered in your credit score

False. If you’ve had a judgment or lien filed against you, it’s considered in your payment history, which represents 35% of your score.

Similarly, while most utility companies don’t report payment history to credit bureaus, your account will likely be reported if it is seriously delinquent and referred to a collection agency.

Additional details on how to manage your FICO score are available on the FICO site.

Article From HouseLogic.com 

By: Gwen Moran

RATES ARE AT 60-YEAR LOWS!

Debt Ceiling Fears and Economy Fears create UNBELIEVABLE borrowing benefit.

Rates have plummeted to 1950′s levels

(Happy Days are here again?)

I’m often asked: What makes rates go up or down?

Here’s a simplified answer: YOU and the economy.

Are you spending more or saving more?  If you are spending more that means companies may do better; hence, rates will probably go up.  If you save money, companies may show less profit, and this usually translates to lower rates. 

The same is usually true with the state of the economy: When the economy does well, the rates typically go up. When the economy is not doing well the rates typically go down.

If you are looking for a home, there could be a silver lining in the state of the economy for you, and that silver lining is unbelievably low mortgage rates.  So don’t wait…call me today to see what you qualify for!  

Carey Lance Hollander

(914) 424-5962 Cell

NMLS # 94044

chollander@ghmc.com

Not available on all programs. Rates are for informational purposes only. Not all applicants will qualify. Certain restrictions apply.