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This is the week I start working on the derogatory parts of my credit, the collections and charge offs. I’m a few days late because work in real estate is picking up.

I ordered my credit reports from all three credit bureaus. I categorized everything into collection agencies, original creditors, medical bills, bad address, inquiries, judgements and liens. I’m sending specific and individual letters to each of the groups to find out how I work with creditors. I should hear back in about 30 days. Fingers-crossed.

Talk to you soon,

Leona.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://LeonaGreenlowTurner.kw.com

www.facebook.com/BayAreaRealEstateToday

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September 2016

I just finished the first week of September and here’s the crash. I have to seriously wonder if I’m addicted to trashing my credit. I applied for the Target Red Card and a Chevron gas card and I crashed and burned. My score is improving and I get the itch to apply for more credit. I violate one of the cardinal rules of maintaining your fico score. Do not apply for too much credit within a two year period.

All credit is not created equal. If you have a 600 score and apply for credit, you may get approved. A different person, with the same credit score, may apply for the same card and get denied. There must be some divine credit law somewhere to determine how two people with an identical score get approved or denied. I’ve heard to people better scores not get approved for credit. Others can be married and both not approved for the same credit account.

Today was a credit crash. Ok. Now, I tie my hands. No more new credit until I reach a 700 fico.

Here are the 6 parts of having great credit (repeated for me, I guess):

  • On time payment history (99%+)
  • Length of time with credit (9+ years)
  • Credit card utilization (< 30%)
  • Derogatory marks (none would be best)
  • Total accounts (21+)
  • Hard Inquiries (< 2) I need to stay away from applying for anymore new credit.

Talk to you soon,

Leona.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://leonagreenlowturner.kw.com

www.facebook.com/BayAreaRealEstateToday

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Credit Journal, Part 6

September 2016

Today, 9/1/2016 , my Capital One card finally posted to my credit report. Yippee. New credit scores on 8/21/2016 are 581 on TransUnion and 579 on Equifax with 14% utilization. It’s a bit higher because I paid for Back to School clothes and supplies.

I wish it would have posted after I made the payment to bring the utilization down but whatever. I’ve noticed that charges post to your credit report much faster than the payments. This has all been so exciting. If you have any feedback on your journey, please don’t hesitate to let me know.

Here is another word about applying for credit. I found another site that tells you who received credit at a certain credit score by credit reporting agency (CRA): (Thank you CBS)

https://creditboards.com/forums/index.php?app=creditpulls I tried one of them and it didn’t work for me. I was denied credit and have a hard pull on my credit score.

Lesson learned.

Talk to you soon,

Leona.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://leonagreenlowturner.kw.com

www.facebook.com/BayAreaRealEstateToday

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Credit Journal, Part 5

The next thing is tackling collections and charge offs. I’m still researching this topic.

What I do know, if you plan to pay these off then make sure you have correspondence in writing for each collection agency (CA). You can also suggest a pay to delete agreement with the collection agency. If you pay or negotiate a settlement on the debt then they agree to remove the collection from your report for good.  

I have a single collection in dispute right now with TransUnion because I didn’t know what I was doing. I’m waiting to see what happens and I’ll let you know. It may come off and raise my score and then come back on the future. 

A credit repair firm can dispute everything and get it removed but the collection agency may put it back on your credit report. Now that sucks.

Talk to you soon,

Leona.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://leonagreenlowturner.kw.com

www.facebook.com/BayAreaRealEstateToday

 

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How much money do I need to buy a home?

Earnest Money Deposit

An earnest money deposit (EMD) sits in escrow during the duration of the purchase. EMD is about 3% of the purchase price. Escrow is an impartial company that holds the deposit. If the transaction is cancelled the buyer and seller must agree, in writing, to return the deposit to the buyer.

Inspections

The first two weeks of the purchase is a time for inspections. Normally, inspections are paid by the buyer. Your Realtor will review all of the inspections available. The most common inspection is the home inspection. The cost of the home inspection is based on the size of the home. It is a safe bet to budget about $600. Other inspections can include roof, pest, structural and sewer.

Down Payment

The next step in the process is your down payment. Down payments can range between 3% and 20% of the purchase price. For example, if your home is $600,000 then at 3.5% your down payment would be $21,000.

Closing Costs

Another step is the paying for the closing costs. Closing cost can range between 2% – 5% of the purchase price. FHA loans typically have lower down payments than conventional loans. FHA loans often has an additionally monthly fee called Private Mortgage Insurance or PMI. PMI amounts vary based on the amount of the purchase price.

Talk to you soon,

Leona.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://LeonaGreenlowTurner.kw.com

www.facebook.com/BayAreaRealEstateToday

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Credit Journal, Part 4

Also, on 7/30/2016 I had “The Breakthrough”. I went Capital One to apply for credit. The cool thing is Capital One has a pre-approval page: https://findmycard.capitalone.com/en/PageVersions/LandingPages/LP_ONE_V01.aspx

You can find out if you are pre-approved for a card without a hard pull on your fico score. I decided to try and I was pre-approved for two cards. Once I applied I did get the hard pull but it’s worth it once you get credit. I heard that once you make 5 months of on time payments you gain a credit line increase.

This approval allowed me to avoid a secured credit card. There is nothing wrong with a secured credit card. Why use your money when you don’t have to?

How do I get credit without a hard pull on my credit? 

There are several sites where you can see if you’re pre-approved before you apply: (Thanks DOC)

The other factor is not applying for too much credit all at once. Get one and wait 6 months to a year for another one. I applied because I wanted to see what I could get. In hindsight, I would have leaned more toward a Visa or MasterCard. Credit card offers are not going anywhere. You have plenty of time.

Talk to you soon,

Leona.

Leona@LeonaTurner.com

http://leonagreenlowturner.kw.com

www.facebook.com/BayAreaRealEstateToday

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I got to thinking about questions I receive from buyers on a regular basis.  

Question 1 – I think I’m ready to buy a home, where do I start? 

The first thing is to find out how much house you can afford. Your agent will need a pre-approval letter from your lender to start looking for properties. Lenders can come from anywhere banks, credit unions and mortgage brokers. If you don’t know anyone, ask around. Your Realtor will probably have a few referrals as a starting point. 

Before meeting with a lender, you’ll need to gather the following documents:

  • 2 years tax returns (all pages)
  • 2 months bank statements (all pages)
  • 1 full month of tax returns

 Additionally (if applicable):

  • Statements from retirement accounts
  • Statements from investment accounts
  • Business records

 ** Note: Before and during the process, do not open new credit or close credit until advised by your lender. They will know what will strengthen or weaken your loan package. 

Your lender will run your credit and look at all of your documents. Be prepared to answer questions and/or provide additional documentation. Your lender will give you a pre-approval letter that says how much house price you can afford. The Realtor now knows what type of homes to show you that fit in your budget. The Realtor needs the pre-approval letter to present an offer on your new home.

Talk to you soon,

Leona.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://LeonaGreenlowTurner.kw.com

www.facebook.com/BayAreaRealEstateToday

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