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The Effect Of Time On Your Credit Score

One factor not often discussed about credit is the effect of time on your score.  Of course most people know that the amount of time good credit has been established or since a late payment occurred is important.  But did you know that problems >2 years old only make up 30% of the weight of your score?

As events (like collections or late payments) recede into the past they will have less and less effect on your score.  For example, the rough weighting of credit score by year is:

40% items in the last year
30% items in months 12 -24
20% items in months 24 - 36
10% items that occurred >3 years ago

This is good news for anyone that has had past credit problems.  It shows that by building positive payment histories for 1 - 2 years can have a significant effect on your credit score.  While collections, late payments and other negative items can remain on your credit report for 7 - 10 years, a few years of on time payments can result in a significant improvement in your score.

For More Info Call 336-753-0844

*Pay all accounts on time and make sure you do not go past 30 days late
*Avoid allowing any accounts to go into a collection status

*Never max. out your credit cards
*Keep you balances to <40% of your credit limit on revolving credit
*Establish a history of credit and do not close old accounts

*When shopping for a mortgage or auto loan try to do it within 14 days so that it only counts as 1 inquiry

*Don’t apply for a lot of new credit at one time
*Don’t think that if you pay for everything in cash and don’t have any credit that this is good for you

*Be responsible using credit and don’t over extend yourself

Is NC Real Estate Still Appreciating???

Real Estate across the country is in decline. Even in North Carolina which is viewed by most of the Real Estate experts as the best place to buy real estate today there are pockets of depreciation. Having said that, its important to note that most of NC is appreciating even still and in some areas such as Charlotte, Raleigh Durham and Ashville NC they are appreciating as fast as ever anywhere from 3% to 8%. This is due to in part the stable rates of appreciation NC has experiences for the last 30+ years. Not experiencing the crazy hyper appreciation that other states have gone thru and because of the stable business climate.

If you have any questions about a particular area you are wanting to relocate to, just email this blog ad we will discuss

Possible changes: There is a Bill on the table to allow FHA to finance or Refinance property that is worth less trhan is owed on the property.

Ask us for details if this is what you are faced with

FHA HOME LOANS FOR YOUR LOCAL COMMUNITY

FHA FEATURES AT A GLANCE

1) 30 YR Fixed Rates & Great Rates

2) No Credit Requirement ( No Established Credit Necessary )

3) No Rental History Needed

4) Chapter 13 Buy Out With 12 Months Perfect Payment Of BK

5) 2 Years Of College Counts As Job History If Student Goes Into Field Of Study & Has An Employment Letter

Call Now At 336-753-0844

and lets get started

FHA Home Loans

An FHA HOME LOAN is a great way to go when purchasing your First Home. It is also a great program for purchasing specific types of homes such as SITE BUILT OR Manufactured, Doublewide Homes and Modular Homes. If you have a high interest rate in your present Home Loan or Mortgage this is also a great loan product to Refinance into.

An FHA Mortgage is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA MORTGAGE programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.

FHA MORTGAGE programs are particularly beneficial to those buyers with less available cash. The rates on FHA MORTGAGE are generally market rates, while down payment requirements are lower than for conventional loans.

Some of the other benefits of FHA HOME LOAN:

• Only a 3 percent down payment is required however Down Payment Assistance can be given by the seller allowing for 100% financing
• Closing costs can be financed.
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancelation of the premium.
• More flexible underwriting criteria than conventional loans No Minimum Credit Score Requirements
• FHA MORTGAGE limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage).
• Loans are assumable to qualified buyers.