Three Responsibilities of Homebuyers

Three Responsibilities of Homebuyers

Nothing says, “Welcome to Adulthood” like buying a home. You’re taking on very real responsibilities, but you may not realize how far they reach and impact others. Meeting them will reward you and your family for years to come with more equity, happier neighbors and a better living environment for your family.

Financial responsibilities: Paying your mortgage on time helps you build better credit and gets you lower interest rates if you refinance or make a new purchase loan some day. Now’s Responsibilities of Homebuyersnot the time to get overextended with new furniture, remodeling or other debt. Limit the credit you actively use and pay off balances every month. Don’t add new charges until you’ve paid off your balances. Try to save as much as you comfortably can with the goal to build at least six months of cash so you can make your house payments if you become ill, lose your job or face an emergency.

Neighborhood responsibilities: When you buy a home, your household becomes part of the neighborhood. Protect your investment and that of your neighbors by keeping your lawn and trees trimmed, your home freshly painted and repaired, and toys and trash picked up from the yard.

Household responsibilities: Your home should help make you and your loved ones safer and happier. Don’t take on more house than you can comfortably afford. Try to choose the best home that suits the needs of your household without creating anxiety between you and your spouse over monthly bills.

How to Sell Your Home In a Cooling Market

How to Sell Your Home In a Cooling Market

Homebuyers tend to move like a herd – they stampede together and they graze together. Signs your market is easing may include showings with fewer offers, longer days on the market (tracked by your area’s multiple listing service) and more questions, contingencies and demands from buyers.

Your Berkshire Hathaway HomeServices network professional can help you with sales and staging strategies and bring offers from qualified buyers. So what can you do to help?

Make your home pristine.
How to Sell Your Home In a Cooling MarketThere’s a huge difference between a home that’s “move-in ready” and one that “needs work.” Show pride of ownership by putting your home in top move-in condition so that your home is more appealing to buyers than any other home in your area and price range.

Price it right. 
You can expect lower offers in a slower market, but homes that are priced fairly and in pristine condition will be treated with respect and enthusiasm by buyers. Consider pricing slightly below market value or offer to include all appliances to attract more interest from buyers.

Be willing to negotiate.  
Negotiation works best when both parties get what they want. You might take less money in exchange for a cash offer or quick closing. Your buyer may be willing to pay your asking price, but may ask you to pay their closing costs.

You may sell your home for a little less than you were expecting, but you’ll find that a slowing market means you’ll be able to buy your next home for less, too.

Mortgage Advice: How Late Payments Impact Credit Scores

How Late Payments Impact Credit Scores

FICO scores, the Fair Isaac Corporation credit-scoring system, are used by lenders to determine your creditworthiness. The lower your scores, the more risk you pose to lenders, resulting in higher interest rates or loan denial.

Scores fluctuate for many reasons, including your debt-to-income ratio, making minimum payments only, credit inquiries and other factors. But nothing impacts credit scores like a missed rent or revolving credit payment. And, for the best-scoring consumers, the drop in credit scores is the most punishing.

Making timely payments is one of the easiest things you can do to show you’re using credit How Late Payments Impact Credit Scoresresponsibly, which is why your payment history accounts for the largest part of your FICO score—35 percent.

Late payments remain on your credit report seven years from the original delinquency date, regardless if the payment is made and the account is current or if the account is closed and the payment is never received, according to Experian.com.

The more recent the late payment, the more it can impact your scores. If you’re late or missed a payment, make the account current as quickly as possible. The length of time it takes to recover will depend on whether the late payment is an anomaly or part of a habitual pattern.

Establish a current history of on-time payments. Use at least one credit card, paying in full each month to avoid finance charges.

On-time payments will add positive activity to offset negatives from the past, and over time your credit scores will rebound.