erealestatemonterey.com

Good credit makes a major difference in your ability to buy a home and how much your monthly payments will be.  In most cases it takes 7 yrs for negative information to be deleted from your credit report.  Bankrupty takes even longer - 10 years.  What things affect your credit score?  Your bill paying history is very important.  If possible sign up for a minimum payment to be paid on your card automatically.  Credit cards give you very little time to make your payment these days and love to charge those late fees.  This can drop your score considerably.

Also important is how many credit cards you have and what kind, how long you have had the credit. Too high a balance can affect your score. And of course collections will lower your score considerably.

If you are getting ready to buy a home it is best to postpone any major purchases such as buying a car.  Avoid any large purchases on your credit cards also.  And it’s good to check your credit in advance for any inaccuracies. It is best to challenge they thru the credit reporting agency rather than the specific company.

Good credit is crucial if you are thinking about buying a home or refinancing.  Here are some good videos that explain some of things affecting your credit score.  Here is a link to information provided by the government on facts for consumers regarding your credit.  If you are getting ready to buy a home or to refinance then it is best if you not make any major purchases as this can affect your credit score. 

If you are just establishing your credit here is a good article on “How to Establish Credit”.

And if you want to check your credit you can get a free credit report once a year from each of the three main credit reporting agencies.  Read the Credit Report Section of our web site for links to these agencies.  While you can verify the accuracy and what is in your report for free, you may have to pay a small fee to get your actual credit score.

The first thing to do if you are thinking of buying a home in Monterey County is to get prequalified with a good lender.  This puts you in a stronger position when you make an offer on a property and helps you determine what you can afford.  Do your homework to help you decide what areas you want to consider.  You can do a great deal of research using the Internet and visiting open houses. 

Especially important though is finding a real estate agent who is willing to work hard on your behalf.   A Real Estate Agent has access to information such as how long the home has been on the market, what price reductions have been made previously and if the property is an “REO” property, meaning it is owned by the bank.  These things can help guide you when making an offer.

If you are looking for an especially good “deal”, then don’t set your sights on just one house.  If you are willing to consider a number of different homes it will help your search.  If you are good at fixing things, and/or willing to  work with contractors to remodel there are opportunities out there.   When the Real Estate market in Monterey County was really “hot”, properties that needed work still sold for top dollar amounts.  Now with more listings available, properties that need work are discounted much more heavily.  You may want to try out some of our calculators to help you determine your mortage payments, an estimate of your tax deduction, etc.