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William Onye's Blog

Home Buying, New Home Resource and Home Ownership

By William Onye | Agent in Missouri City, TX
  • QUESTIONS TO CONSIDER BEFORE SELLING IT BY YOURSELF

    Posted Under: General Area in Harris County, Home Selling in Harris County, Foreclosure in Harris County  |  September 4, 2011 7:30 AM  |  1,314 views  |  3 comments

    ·    Who will tend to the property and pay for routine maintenance?

    ·    Who pays for major repairs?

    ·    What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?

    ·    Will you manage the property yourself, or hire an agent?

    ·    What if the renters change their minds? Who keeps the money in the escrow account?

    ·    If the buyers change their minds, what will be required to put the property back on the market?

  • WHAT IF I CAN ONLY SELL MY PROPERTY FOR LESS THAN I OWE MY LENDER?

    Posted Under: Home Selling in Houston, Foreclosure in Houston, Property Q&A in Houston  |  March 6, 2011 6:57 AM  |  800 views  |  No comments

    If you are struggling with your home loan and the value of the property is less than the mortgage amount, make sure you explore all options with your servicer, as well as an attorney or a housing counselor. In some cases, REALTORS can help explain to the lender why it makes sense to sell the property for the best price and then forgive the remainder of the debt. Until recently, the amount of debt the lender cancelled was treated as income when you filed your tax return. REALTORS® and others helped pass legislation that will prevent this tax burden from being placed on eligible homeowners who are relieved of their obligation to pay some portion of their mortgage debt between January 1, 2007 and December 31, 2012. Full relief is available only if the amount of forgiven debt does not exceed the debt that was used to acquire, construct, or rehabilitate a principal residence. Other limits also apply; consult your tax adviser or IRS guidelines for details. 
    Some lenders may require you to sign a promissory note for the difference between the value of the home and the amount owed. Before you sign any documents, seek the advice of a housing counselor or lawyer.

  • Dos and Don'ts During the Loan Process

    Posted Under: Home Buying in Houston, Rent vs Buy in Houston, Credit Score in Houston  |  February 27, 2011 7:09 AM  |  671 views  |  1 comment

     

    Each lender and each loan program has different guidelines they must follow. You should not do anything that will have an adverse effect on your credit score while your loan is in process. We know it's tempting...If you're moving into a new home, you might be thinking about purchasing new appliances or furniture, but this is really not the right time to go shopping with your credit cards. You'll want to remain in a stable position until the loan closes and give us the opportunity to help you lock in the best interest rate we can possibly get for you.

    DON'T APPLY FOR NEW CREDIT OF ANY KIND - If you receive invitations to apply for new lines of credit, don't respond. If you do, that company will pull your credit report and this will have an adverse effect on your credit score. Likewise, don't establish new lines of credit for furniture, appliances, computers, etc.

    DON'T PAY OFF COLLECTIONS OR CHARGE-OFFS – Once your loan application has been submitted, don't pay off collections unless the lender specifically asks you to in order to secure the loan and we recommend that you do everything possible to negotiate deletion in exchange for payment. Generally, paying off old collections causes a drop in the credit score. The lender is only looking at the last two years of activity.

    DON'T CLOSE CREDIT CARD ACCOUNTS - If you close a credit card account, it can affect your ratio of debt to available credit which has a 30% impact on your credit score, and also your length of credit history which has a 15% impact on your credit score. If you really want to close an account, do it after you close your mortgage loan.

     

    DO JOIN A CREDIT WATCH PROGRAM - Your bank, credit union or credit card company may be able to provide you with a free credit watch program that can alert you to any changes in your credit report. This can be a safeguard to help you intervene before the underwriter sees a problem.

    DO STAY CURRENT ON EXISTING ACCOUNTS – Late payments on your existing mortgage, car payment, or anything else that can be reported to a CRA can cost you dearly. One 30-day late payment can cost anywhere from 50 to 100+ points on your credit score. .

    DO CONTINUE TO USE YOUR CREDIT AS YOU NORMALLY WOULD - Red flags are easily raised within the scoring system. If it appears you are diverting from your normal spending patterns, it could cause your score to go down. For example, if you've had a monthly service for Internet access billed to the same credit card for the past three years, there's really no reason to drop it now. Again, make your changes after the loan funds.

  • The History of Credit Scoring

    Posted Under: Home Buying in Houston, Foreclosure in Houston, Credit Score in Houston  |  February 24, 2011 6:54 AM  |  593 views  |  1 comment
    The credit score system used today has evolved since the 1950s. It was originally designed to provide lenders with financial profiles on consumers who wished to borrow money. The lenders' biggest concern was whether or not an individual had the ability to repay a loan, and establish what percentage of risk might be involved.  Congress passed the Fair Credit Reporting Act in 1971 to establish guidelines for fair practices in regard to the use of credit scoring. This law was designed to promote accuracy in reporting and protect the privacy of consumers. In light of the increased use of credit scoring and a growing fear of identity theft, recent legislation has been passed to further protect Americans and improve consumer awareness.  Remember that the credit score is a computerized calculation. Personal factors are not taken into consideration when a credit report is generated. It is merely a snapshot of today's credit profile for any given borrower, and it can fluctuate dramatically within the course of a week.
  • What If I Have No Credit?

    Posted Under: Home Buying in Houston, Rent vs Buy in Houston, Credit Score in Houston  |  February 21, 2011 8:50 PM  |  600 views  |  1 comment

    On occasion, borrowers will not have enough credit references to obtain the loan they wish to secure. If this is the case for you, start by opening small lines of credit that report to all three major CRAs, and make purchases that can be paid off easily. If you do not already have a checking or savings account, open one. Your bank or credit union may be able to provide you with a credit card account once you have established a history with them as a customer. If you do not have established credit, you are not completely out of luck. Some lenders will pull a report that will show them whether or not consumers pay their rent and utility bills on time. If they like what they see, they may approve you for credit. That is why it is extremely important to pay these day-to-day living expenses on time. In addition, your ability to hold a steady job will improve the likelihood of being approved for credit.  It is also wise to start saving money for the down payment on your home. The lender will look at your application more favorably when you are able to come to the table with a 20% down payment. Bear in mind, there are certain loan programs available that permit a percentage of gift money for down payment.

  • The Role of Real Estate Agents

    Posted Under: Home Buying in Houston, Home Selling in Houston, Rent vs Buy in Houston  |  February 17, 2011 7:01 AM  |  622 views  |  No comments

    Half of home buyers -50% - were first-time purchasers - the largest share of first-time buyers in 19 years. The share of single-male buyers increased from 10% in 2009 to 12% in 2010. Purchases of new homes were at their lowest level in nine years. Eleven percent of buyers over 50 purchased senior-related housing or bought a property/unit in an active adult community.


    By and large, most sellers - the majority of whom have worked before with a real estate professional - understand the value a real estate agent brings to the transaction. This is especially true in a still-stabilizing housing market. Nearly 9 out of 10 home sellers sold their home with the assistance of a real estate agent. In comparison, in 2001 only 79 percent of home sellers sold their home using an agent or broker. By 2009 that percentage had increased to 85 percent, and in 2010 to 88 percent. 


    According to the NAR

  • According to Wells Fargo Home Mortgage Guidelines

    Posted Under: Home Buying in Houston, Financing in Houston, Credit Score in Houston  |  February 15, 2011 7:19 AM  |  942 views  |  4 comments

    Hello!

    I just wanted to let you know that we now have the capability of doing FHA down to a 500 mid score.

    Credit scores between 500 and 579 require a 10% down payment.

    Credit scores between 580 and 599 required 5% down payment.

    As usual credit scores 600 and above require 3.5% down payment.

    Go through all of your old pre-quals and turn downs and give me a call for more info!!!!!!

    For more information Contact 832-613-5373 or email Owne@kw.com

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