Credit score needed to buy a home

Credit score needed to buy a home

You’ve found the home of your dreams, you have some money saved up for a downpayment and your employment history has been steady. So far, so good. But how is your credit history? Have you ever thought about the credit score needed to buy a home?

We certainly hope you have! Obtaining a mortgage loan to pay for your home purchase can be a complicated process. Having a poor credit score can make it far more difficult.

Facts about the credit score needed to buy a home:

There are several scenarios that can put you, as a borrower, into a high-risk bracket. Here are some points that can impact your creditworthiness.

  • Your credit score is below 620. That can be a real red flag when applying for a mortgage. Lenders use your credit score to determine your ability to make future payments.
  • According to the real estate industry online publication Keeping Current Matters, the average FICO Score on all closed loans recently dropped to 722. The average includes both refinance and purchase loans.
  • FHA and VA loans offer the greatest opportunity for individuals looking to enter the housing market with low down payments and even lower FICO Score requirements.
  • Ellie Mae’s Millennial Tracker reveals that those who purchased homes in December 2017 with an FHA Loan were able to do so with an average downpayment of 4 percent and a FICO Score of 684.

Overall, it’s getting a little easier to receive loan approval with a credit score that’s not quite up to par. If you’re currently debating a home purchase and worried about the credit score needed to buy a home, please contact The Olear Team today!

Appointing an executor of estate

Whether you call this individual an executor or a personal representative, the responsibilities are the same. Appointing an executor of estate means selecting an individual who will carry out any details relating to your last will and testament.

Typical responsibilities of an executor might include:

  • Collecting, recording and safeguarding your assets.
  • Paying your debts, expenses, bills, utilities, taxes, etc.
  • Distributing your remaining assets to any beneficiaries named in the will.

The actual responsibilities of an executor will vary by state and are governed by the probate court within that state. Working with an experienced estate attorney will always prove helpful.

It would also be helpful to utilize an executor who is skilled in financial matters and has a strong understanding of the will, any assets and the overall family situation. There are some restrictions as to who may serve as an executor, and again those restrictions will vary from state to state. The ideal candidate will also be someone who displays the following character traits:

  • Trustworthiness
  • Dependability
  • Organizational skills
  • Communication skills

Selecting the right person to serve as executor of an estate will ensure prompt and accurate closure of the estate. Therefore, appointing an executor of estate is a serious decision that requires much thought. For more information and advice, please do not hesitate to contact The Olear Team today!

Do I need a realtor to buy a house?

Do I need a realtor to buy a house?

It’s a pretty straightforward question: Do I need a Realtor to buy a house? While the answer is no, you don’t, there are plenty of reasons why you should!

So, if you’re asking the question, do I need a Realtor to buy a house, consider the benefits of using a Realtor:

  • A Realtor will guide you through and help you understand what can be a complicated process. An experienced Realtor is a valuable asset and can clearly explain the home-buying process.
  • An experienced Realtor can also point out both features and flaws within a home that you might not have otherwise noticed.
  • Realtors are known for their negotiating skills can can likely negotiate a better deal for you.
  • Realtors are typically well connected. If you need a contractor, home inspector, plumber, painter, etc., they can very likely point you in the right direction.
  • Most Realtors are strongly tied to the community and know the history of the neighborhoods — good and bad.

We recently came across this statement in a real estate industry article: “Famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money … not cost you money.” We couldn’t agree more.

The road to owning real estate is like a well-traveled street after a bad winter — filled with potholes! So do you need a Realtor to buy a house? We highly recommend hiring a Realtor to guide you safely down that road. Please contact The Olear Team if we can be of assistance.

Let’s Talk Real Estate Power of Attorney

Let’s Talk Real Estate Power of Attorney

In our industry, the phrase real estate power of attorney is one we hear quite often. Typically, there are two types of power of attorney in real estate: General and limited power of attorney.

When someone has general power of attorney, they can basically do anything the principal can do. The principal is the individual who grants power of attorney to another individual. This is a legal appointment that allows an individual to make decisions for another person regarding property and finance.

Limited power of attorney, on the other hand, gives an individual a more narrow range of powers, allowing him or her to conduct a specific transaction. Please note that laws pertaining to real estate power of attorney vary from state to state.

If power of attorney is to be used to complete a real estate transaction, you must be certain that the closing company has approved the use of power of attorney for the real estate closing. Your Realtor and/or real estate attorney can help ensure that all parties have been notified.

An individual with real estate power of attorney can:

  • Legally conduct business on behalf of another individual.
  • Enter into contracts on behalf of that individual.
  • Change legal documents related to the specified transaction.

Power of attorney is a very powerful tool, so be careful when selecting your representative and be sure to select an individual who will act in your very best interest.

For more information on real estate power of attorney, please contact The Olear Team today!