The Importance of FICO

Consider this:  The last few years have seen turmoil of every kind when it comes to the current real estate market. If you and your family are getting ready to search for a home or other Boston real estate to purchase, you will find that the whole credit reporting industry has gone through some changes and most people are not aware of the depth of the changes and how they will affect real estate buyers right away. It’s time you became informed on the changes, how credit ratings really work, and more aware of your personal credit ratings. Everyone thinks that if we have a lot of cash in the bank, a great job and great income, we all think that all we have to do is find the home we want and get a mortgage loan and move in.

No matter how much cash you have in the bank, or how much money you make, if you want a mortgage loan, you must meet the lender’s FICO score guidelines, and those guidelines are getting tougher and tougher.

Most of us think that if we have no late pays and basically have no debt, then we will not have a problem getting our loan. False! Financial responsibility and good credit are two different things completely. Having no credit accounts or debts doesn’t give you good credit, it gives you NO credit. Another misconception: By checking your own credit score before filling out an application at the bank, because you can make sure you have no negative surprises.

The fact is that the Boston bank or mortgage loan originator must run their own credit report independent of your credit report and it might very well have a different score and other line items that the one you ran on yourself. Another myth: If you have had a foreclosure or a short sale on your record, you will not be able to get any credit for at least 7 years. This depends on your particular circumstances.

In some cases your credit score can be rehabilitated enough to secure certain credit. Having a short sale show up on your credit report will have less impact than having a foreclosure show up on it. The fact is: Short sales and foreclosures have the same impact on your credit score, according to the credit reporting agencies. There are exceptions and your own particular circumstances can determine which way the agencies will rate you.

Good Luck.

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The importance of a buyer’s agent in purchase of a condo

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A lot of people ask, “Why do I need a buyer’s agent? Can’t I just go to open houses and find my new home?”  The answer is yes you can! But finding the home is the easiest part of the process.

    There are no Restaurants within 3 miles radius from this property.

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    The buying process can be very complicated and confusing, especially if you do not have someone in your corner at all times. A buyer’s agent negotiates price and terms (based on knowledge of the market), makes sure all parties are  doing their job, and can help translate what is going on, from the home inspection, to condo documents, and condo financials while being mindful of deadlines. Most deals go south because of a lack of communication and all parties assuming that everything is going according to plan. A good buyer’s agent can prevent this by essentially policing all aspects of the deal. They ensure that there is open communication between the lawyers, realtors, financial institutions, buyers and sellers for the most successful transactions!
    - Drew Abysalh

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