Ricardo Bueno's Blog

When you're a Real Estate Agent, you dream of having a Pre-Approved Borrower with a Buyer's Brokerage Agreement every time someone hops into that SUV. It'd be the perfect client every time!

But alas, you live in the "real world" where no one is approved for fear of running & ruining their credit report and no one wants to sign a Buyer's Brokerage Agreement; they're just not ready for that type of commitment. You know, they wanna test the water (so-to-speak) to see if there's anything out there to buy to begin with (something that's within their budget and appealing enough to call "home").

If you're a Real Estate Agent, where do you draw the line? When do you say, "no mas! I won't show you a home without a Buyer's Brokerage Agreement.

If you're the consumer, why won't you ante up? You can be honest...this blog has an "open door" policy.

 

READ ON

Did you know that you could increase your credit score by as much as 50 to 100 points in as little as 45 days? And here's the kicker, you can do it without using a formal credit repair service (Uh oh, now I'd on gone done it...here comes the onslought...).

So what's the big secret Ricardo? What's the catch?

No secret(s). No catch.

Most people who have credit issues are mis-informed is all. So here's a little Credit Education 101...

THE 5 ELEMENTS OF YOUR CREDIT SCORE

[Note: Click on the image to enlarge.]

Past Dues & Bankruptcies make up 35% of your credit score...

The Amount Owed on ALL Accounts (how much available credit there is) constitutes 30% of your credit score...

New Credit, New Accounts make up 10% of your credit score...

Credit History makes up 15% of your credit score... And,

Type of Credit Used (car loan vs. a credit card at Victoria's Secret) makes up the final 10%.

Being selective about the type of credit accounts you use can make the difference in ranking a higher credit score. Spreading your credit across various accounts is better than maxing out two credit cards.

Where most people plunder is in monitoring their credit scores to begin with. Think about it, when's the last time you checked your own credit score? "My credit is fine..." so you say. But when's the last time you checked it?

Any credit report can contain minor erros that can adversely affect your credit score between 5 to 100 points; enough to deny someone credit. If you don't monitor your credit it can take a credit bureau up to 20+ weeks to fix their own mistake. And that's if they fix it at all! Whereas if you find an error (such as a late payment or two), report a claim to fix it with appropriate evidence...they have to respond otherwise the late payment is coming off.

Not convinced you should monitor your credit just yet?

How about a payment of $388 more a month because you're shy a few points on your credit report? That's $4,656 a year. $139,680 over the life of the mortgage.

THE HIGHER YOUR CREDIT, THE BETTER YOUR INTEREST RATE!

Contact me if you'd like to register for a FREE Annual Credit Review.

What does it take to get married? Well, it starts with a formal proposal.

With life in general, two people meet. Man loves woman. Woman loves man. Man buys a diamond ring (as is the formal custom), gets down on one knee and says “will you marry me?” Then he experiences a split millisecond of gut wrenching terror while he awaits a response; hopefully a yes!

In real estate, man AND woman (though sometimes alone and not together) look for a home. At first they go it alone (newspaper, weekend open houses, maybe craigslist?). One or two weeks in they make nice with an Agent. This Agent (out of the kindness of his or her heart) puts together a list of homes for sale and saddles them up in the SUV…and off they go…house hunting!

As they go through the list and the Agent expends gallons of gas at $4.43 a gallon (how nice of him or her) it’s either “love at first sight” or “honey, let’s get out of here” until…suddenly…man and woman (though sometimes alone and not together) find the one they LOVE.

They want to put in an offer. You know, ask: “will you marry me?” Well, as is the formal custom in today’s Real Estate Market, they need to be Pre-Approved (this is the real estate "diamond ring" equivalent). A seller won’t take you seriously without one. The answer to “will you accept my offer” is a resounding (and sometimes gut wrenching) “NO.”

On the advice of their REALTOR® they accept the offer for $5,000 - $10,000 less. Why? Because they proposed with a diamond ring. They were pre-approved. Pre-approval says, “I’m qualified to buy THIS house. I have the income, credit and down payment necessary. See...look... I told you so.” This escrow will close! The seller accepts.

A pre-qualification says nothing of your credit. You haven't jumped through the underwriting hoops. Sure a lender took a gander at your DTI, quoting you a possible rate and payment (to arrive at a price point you're comfortable with). But still, no: credit report, verification of income, etc. You’re proposing empty-handed. And that’s not very confidence inspiring to Mr. Motivated Seller. Is it?

My name is Ricardo Bueno. I’m a mortgage lender based out of Los Angeles, CA. If you need to get approved for your next Real Estate purchase you can reach me at (323) 810-2175 or via email at ricardo (at) ricardobueno (dot) com

Note: this post is part of a continuing series that I host on my outside blog here. Feel free to visit and leave me your thoughts...

Jobless Claims came in yesterday lower than expected; this is typically bad for interest rates. Just have a look...today's 30-year fixed rate mortgage sits at 6.25% here in Los Angeles. That's up from 5.99% just about a week ago.

The rest of the news on tap for today is the Employment Situation. Typically, the lower the number here, the better your Los Angeles mortgage rates. See, non-farm payroll employment tracks the number of paid employees working both part-time and full-time. By tracking this jobs data investors are able to effectively gauge the level of "tightness" in the job market. And if it's evident that wage inflation is a threatening factor, mortgage rates will rise. But we want them to fall, so again, the lower the number the better your mortgage rate.

For now, let's lock-in your mortgage rates at application! And stay tuned for more info...

CURRENT MORTGAGE RATES:

Conforming Loan Amounts = Loan Amounts Below $417,000
($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
6.25% (6.379 APR)

15-Year Fixed Rate Mortgage
5.75% (5.875 APR)

5/1 Adjustable Rate Mortgage
5.375% (5.498 APR)

7/1 Adjustable Rate Mortgage
5.625% (5.749 APR) 

*Disclaimer: Equal opportunity lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on loan amounts above $650,000.

Lock/Float Recommendation: Lock-in your mortgage rate at application!

RELATED ARTICLES:

The Economics of Interest Rates & How They Work

Definition of Mortgage Rate-Locks

Mortgage Planner | (323) 810-2175

Read my blog: www.industry-report.com

Note: This is a repost of my article on my home blog here. I'm posting it here because I think it's a nice reminder to focus on everything that's good in our lives. In order to excel in what we do we need to be confident in ourselves and our abilities every day.