Real Estate - 买房 - Buying a Home?(6)Home buyer FQAs(2)

[QIANSHUIBA]

To obtain the most professional representation available, contact an agent at
your local Prudential Northwest Properties office today.

My Credit Is Less than Perfect. Can I Still Buy a Home?
Perhaps in recent years, you've had financial difficulties that caused you to
make a few late payments to creditors or even possibly not pay some bills at
all. You may have even had to file for bankruptcy. Now your difficulties are
over and you want to buy a home. Will it be possible to get a home loan with a
blemished credit history? Although it may be a little harder than if you had
A+ credit, the answer is yes.

One of the first things you want to do is order a credit report. There are
three main credit reporting agencies: Equifax (800-685-1111), Experian
(888-397-3742), and Trans Union (800-888-4213). [Because not all creditors
report information to the same agencies, you may want to request a report from
all three.] Once you have the report in hand, study it to make sure that the
information is accurate. If there are discrepancies, make sure you follow the
steps provided by the credit reporting agency to dispute the information and
get it changed. In addition, you may want to add a consumer statement on your
credit report to explain any late or non-payment to creditors.

Depending on how damaged your credit is, you may want to put off buying a home
for another year. Use that time to repair your credit by paying off creditors
and create a history of paying your bills on time and consistently.

When you are ready to apply for a loan, realize that your previous credit
history may limit your eligibility for prime loans and low interest rates.
When lenders are deciding on whether to issue a potential borrower a loan,
they use various criteria in addition to payment history to evaluate the
borrower such as employment, income, assets and liabilities. Based on this
evaluation, borrowers are offered loans rated on a scale from A to D. The more
damaged your credit history, the higher of a risk you are to lenders.

Because of your blemished credit history, you will more than likely have to
get a "sub-prime" loan. These types of loans come with higher interest rates
and more points. Don't assume that just because a lender offers sub-prime
loans, that you will automatically be embraced. Be prepared to explain to the
lender why you had credit problems and what you have done to prevent the
situation from occurring in the future.

Remember your past financial problems don't have to stop you from experiencing
the joys of homeownership.

To learn more about home financing, contact Columbia Mortgage. For more
information on the home buying process, contact a Prudential Northwest
Properties office near you. To find an office in your area, click here. >>
Want to Invest in Real Estate But Not Live In It?
Turn on any financial news program and at some point you'll hear the experts
extolling the virtues of diversification. Real estate has long been considered
a conservative, long-term strategy to growing wealth. While some seasoned real
estate investors make it look easy, to be successful, beginners should follow
some basic principles.
•Learn all you can. Before committing your cash, you should have a
fundamental understanding of real estate. For example, be aware that, in
general, investment properties are not liquid investments. Barring exceptional
circumstances, real estate does not sell at a moment's notice. It could take
days or months to sell a property, depending on the strength of the market in
a particular region.
•Consider cash flow. You'll need to have enough capital on hand to cover any
short-term losses due to vacancies between tenants.
•Start small. Look into buying a single family home or a duplex. Leave large
apartment buildings and commercial properties to the pros.
•Inquire at the local Chamber of Commerce about companies relocating into or
out of the area. Company movement is one indicator of demand for rental and/or
office space.
•Find a property that will be in demand. Look for a moderately priced home
with three or four bedrooms, two bathrooms, and a garage that sits on a quiet
street.
•Research the property. The most common way first-time investors lose is by
failing to investigate a property thoroughly. Look beyond the front door.
Investigate the reputation of the school district, the crime rate, and plans
for expanding a nearby highway or developing vacant land. Ask a Prudential
Northwest Properties associate about the area, its history, and how fast (or
slow) properties are moving.
•Inspect the home you're considering for signs of water damage, such as
stains on the ceiling and crinkling or gathering wallpaper; open and close
every door and window; and check all electrical sockets by plugging in an
appliance. Get an independent home inspection, roof inspection and termite
inspection. Unexpected repair costs can eat away resale profit. Because even
the best inspection can't always predict problems, try to set aside some of
the rental income for unexpected repairs.
•Spend time driving the streets of the neighborhood noting the condition of
other properties. Are lawns maintained? Are roofs in good shape? Are homes
kept up?
Be ready to make fixes quickly and respond to the renter's needs. If you're
not prepared to be a hands-on landlord, consider hiring a property management
firm. Remember, investing in a property is much different than living in one,
and while emotion and attachment can be prime motivators when it comes to
homes, it is return on investment that counts when investing in real estate.