Marketing Gone Wrong?

I have to admit.  I love clever marketing.  However, I had to scratch my head when I pulled up next to this truck today in my travels.  They had to really step out on a limb to adapt memorable dialogue from a long ago TV series.  Would this encourage you to give them a call?  Or to simply “flush” the idea from your mind?

5 Factors That Decide Your Credit Score

in recent years, the economy and job fluctuations have challenged consumers.  The real estate market has recorded epic numbers of short sales and foreclosures.  Thankfully, the market in and around Savannah, GA, has rebounded and many consumers are readying themselves to purchase real estate.  A foundational consideration is the potential Buyer’s credit score.  Credit scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. Certainly, the higher the score, the more likely a buyer will receive better rates or fees from the lender.

These factors will affect your score:

1. Your payment history. Basically, a lender wants proof that you paid credit card obligations on time. This gives them confidence that you will also pay your mortgage on time.  Buyers are often unaware that having a “late” payment on a credit report can rule them out of getting a mortgage.  Your payment history must be squeaky clean for 12 months prior to getting through the mortgage underwriting process.
2. How much you owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.  No matter how much a lender wants to work with you, he/she cannot move forward on approving a mortgage unless you meet the test of having the right ratio (percentage) of income to expenses. 
3. The length of your credit history. In general, the longer the better.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly. If you are planning on buying a home in coming months, think twice before opening any new accounts.  When considering buying a home, a Buyer will be told by both the lender and the Realtor that it’s a sin to establish new credit during the process.  In fact, I often tell my Buyers, “Don’t spend any money on anything other than food and gas!”
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit—installment loans, credit cards, and a current mortgage, for example. This can sometimes be a challenge for first time Buyers.  Occasionally, the type of credit you might have is unplanned, such as major medical expenses.  More often, however, Buyers simply don’t keep track of accounts, letting some go dormant.

For more on evaluating and understanding your credit score, go to http://www.myfico.com.  For more specific information, you might consider calling a lender to have them review your credit score and report and consult with you on ways to strengthen or protect your score during the buying process.  Call me for a referral to a superior local Savannah lender.

Savannah Doors–#4

Isn’t this inviting?  Can anyone guess this door’s location?

Skidaway Marine Science Day

On October 26th, The University of Georgia Skidaway Institute of Oceanography hosted a free marine science day.  The community was invited to tour the aquarium, research labs, science vessels, and the enjoy exhibits and special events like a reptile show and fish feeding.

The aquarium is small, but has an interesting variety of aquatic life.  The reptile show lasted over an hour and was a standing room only event.  The instructor had a lively question and answer delivery throughout his presentation.  It was amazing to hear how much the children knew.  After the show and tell, guests were invited to come touch or get a closer look at the reptiles.


Stations were set up for games.  In addition, scientists had set up microscopes and exhibits outside so that visitors could view plankton under high power.  More interesting items awaited on the R/V Savannah, the Institute’s research vessel which travels as far north as the Chesapeake Bay and as far south as Curacao. 


All in all, it was a great time.  Kids could crab off the dock.  Families learned about conservation.  And, of course, the weather was fabulous for walking the Institute grounds and learning about the great work they do there.

8 Steps to Getting Your Finances in Order

People who want to buy a home typically set that goal months before contacting a Realtor for assistance.  During that time, the potential home buyer focuses on preparation items, spending the majority of time on getting finances in order.  Following are eight simple steps that will assure that a buyer is ready to proceed in identifying home options.

1. Develop a family budget. Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.   If you haven’t experienced the unexpected, use a “reserve” factor.  Followers of the Dave Ramsey financial plans work to have at least a $1000 emergency fund to handle these types of items.
2. Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 percent and 10 percent of your total income.   Buyers sometimes thinks that closing all accounts will be in their best interest.  That’s not always the case.  Talking to a lender will help outline the most appropriate path to both debt reduction and maintenance of accounts.  For the best results, list accounts from smallest to largest and work on paying off the smallest accounts first.
3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. Documenting all expenses is like taking stock of your daily calorie intake.  There are always items you overlook.  Be disciplined.  You’ll probably see some great ways to save.
4. Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want. If your income is already sufficient for the price range of your choice, consider the part-time job as a way to enlarge your down payment.
5. Save for a down payment. Although it’s possible to get a mortgage with as little as 3.5% of the purchase price down—or even less for VA or USDA loans—you can usually get a better rate and a lower overall cost if you put down more. The ideal is a 20 percent down payment, so that you can avoid paying a mortgage insurance premium.
6. Create a house fund. Don’t just plan on saving “whatever’s left” of your monthly budget toward a down payment. Instead, decide on a certain amount per month you want to save, then put it away as you pay your monthly bills.   Even if you already have your down payment well in hand, or a family member intends to provide you a gift, the house fund will enable you to handle expenses such as moving, getting set up in the new home with basics like blinds or curtains, with the least amount of anxiety.
7. Keep your job. While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate. When considering buying a home, it is never a good idea to change jobs (unless, of course, the home purchase is related to a job relocation).
8. Establish a good credit history. For first time home buyers, there’s always a possibility that a credit history is non-existent.  Again, before getting a random credit card, talk this over with a lender.  With or without credit cards, it will be essential to make payments on any existing accounts by the due date. A “late” payment can prohibit being approved for a mortgage.

If you have other questions about preparing for a home purchase, don’t hesitate to give me a call!

Savannah Doors–#3

Welcome to the Mansion…700 Drayton Street!

How Do You Know It’s Time to Buy?

Have you looked at all of the current events & news reports on housing and wondered: How Can I Know It’s Time to Buy?  Well, that is a question often posed by home Buyers.  My answer is typically, “Now is the time to buy!”  I don’t say that because I’m a Realtor and need a commission.  There’s actually a set of economic indicators that can help buyers get off the fence and commit to a real estate purchase.  Listed below are a few simple “math” scenarios I put together that should help Buyers understand today’s timing:

(Economic Reports Showing that it is 35% Cheaper to Buy Versus Rent) + (US Midwest & South Best Affordability Index) = 

Time to Maximize Your Budget

(Decline in Foreclosures & Short Sales) + (Rise in Home Prices) = 

Buy Now for More House for the Money

(Rise in Home Prices) + (Reduced Inventory) = 

Future Drops in Affordability & Loss of Buyer Negotiation Strength & Fewer Home Options

(Consistent Positive Jobs Reports) + (Fed Tapering) = 

Looming Rise in Mortgage Rates

(Job Recovery) + (Advantages of Leaving Mom’s Basement) = 

Rise in First Time Home Buyers

All of these indicators are in play right now, with one exception.  The Fed has not moved forward with “tapering.” However, this action is expected by Spring of 2014.  Watch the news reports and see for yourself.  If you need more information about home buying and what is available to meet your needs and timetable, please give me a call.