Does checking your credit hurt your score?

One of the myths surrounding personal credit scores is that checking your own credit reports and scores will make your score go down. That myth has been around for nearly as long as credit reporting agencies.

This myth hurts home buyers because it discourages them from checking their credit report in order to know what’s in it. If your report has erroneous information, at worst it could result in you being turned down for a loan. At best, it could cost you thousands of dollars by paying a higher interest rate than you should.

The simple fact is that checking your own scores does not affect them in any way. It’s what’s known in the industry as a “soft” inquiry. When you make the request, it will show up in your report, but it does not affect your score.

A “hard” inquiry from any potential creditor can adversely affect your credit score because it represents potential new debt that doesn’t yet appear in your credit report as an account. One piece of advice: If you have a friend who works at a bank or car dealership, don’t have them pull a credit report just so you can see it. If you don’t have a long credit history, this hard inquiry could affect your score enough to cause a problem.

Requesting a copy of your own credit report will not affect your credit scores. An inquiry will be added to your report as a record that you requested it. This type of inquiry is sometimes called a “soft” inquiry because it is shown only to you. Therefore, you can check your own credit report as often as you like with no effect on your credit scores.

You can request your own scores from any number of sites for a minimal cost. Ask your REALTOR® to recommend where you should make a request.

Seven things that kill your home sale

Your home can be immaculate, in a great neighborhood and priced right. But when a prospective buyer walks in, they can be persuaded to turn and walk out. Obviously, they're motivated; otherwise they wouldn't have wasted the trip.

If your home has any of following six problems, you may see the buyers turn on their heels and head in the direction of the next property. Two of them, you can't do much about. The others can be fixed, but the cost ranges from not much to quite a bit.

Seven deal-breakers for homebuyers

The backyard isn’t family-friendly

The back yard is something that potential home buyers give great consideration to when buying a home. They imagine cookouts, landscaping, gardens, kids playing and tire swings. If it doesn't match up to their expectations, it's a deal breaker... and there's not much you can do about it.

Mold

You can try to cover it up but it's going to be found in the inspection if you have it. Fixes range from a new piece of drywall behind the bathroom sink to calling out a remediation crew. Don't hide it, especially if you've spent the money to have it removed.

Foundation problems

A crack in the foundation can cause a myriad of other mostly cosmetic, but costly, repairs, from repairing drywall to doorframes. Many buyers walk away from foundation problems. Most lenders require foundation problems to be repaired before closing. And even a fixed foundation can be a deal-breaker because potential homeowners are worried about the damage that it has caused.

Personal belongings

Your sense of style and taste may not appeal to the potential buyer. Ask your REALTOR® about staging your home for sale. He or she will have some suggestions about what should be put in storage until you complete the move. For higher end homes, you may want to consider hiring a staging consultant.

The house is dirty or smelly

Pets, mildew, smoke... these are all turn-offs to potential buyers. Permanent smells and stains, if they aren't a deal-breaker, may mean you'll have to drop the price on your home because the new owner will have to pay to have it cleaned or do it themselves... which can be a big undertaking.

Pest infestation

This is especially true of termites. The damage they can cause is not always immediately apparent. A certified termite inspector knows what to look for and how to eradicate them.

Location

You can have the perfect house, the right number of bedrooms, a great kitchen, plenty of storage space, a clean inspection and a perfect back yard, but if the location is horrible, your house is going to sit for a while.

What is eminent domain, and should I be worried?

One of the things that property owners must be concerned with is eminent domain, which is defined as "the right of a government or its agent to expropriate private property for public use, with payment of compensation."

City, county, state and federal governments can claim eminent domain for any number of reasons. For example, if your property is impeding a road expansion, it may make the claim in order to make the land available for public use.

If you receive notification that a government entity is considering an eminent domain designation on your property, there are two things you should know:

1. They have to pay you fair market value for it.

2. Their offer will be on the low end of fair market value.

Eminent domain power can and has been abused. There can exist a conflict of interest when a developer lobbies a city government for a redevelopment project, only because it plans to construct new buildings for office, retail or housing in order to line their pockets.

The first thing you need to do when faced with eminent domain is hire an attorney who specializes in the area.

1. Agency with the interest in your property will hire an appraiser to inspect and appraise your property.


2. Agency makes an offer, usually a low one.


3. If you don't accept their offer, and are unable to negotiate a fair deal, they will schedule a public hearing. The agency has to prove their case that acquiring the property is necessary for the public good.


4. They will file a complaint against you in Superior Court, and you will be served a summons which requires a response.


5. They will deposit "probable compensation" and file a motion for prejudgment possession with the Court. At this time, you may object once again. If their motion is approved, they may take possession of your property within 30 days.


6. At this time, your attorney will obtain appraisal reports from appraisers and other experts to establish your property's fair market value. These reports are filed with the Court and presented to the agency who filed for eminent domain.


7. Mediation - the two parties come to an agreement, if one can be reached.


8. If you can't come to a compromise, they are forced to make a final offer.


9. If you still do not accept the offer, a trial will be held to determine fair market value of your property and hear any other issues.

Your rights as a property owner vary by your home state. You need to be informed of those rights and the process. For instance, depending on your home state, you may be able to recover attorney fees from the agency who filed the case. Do your homework. Most importantly, hire a successful attorney who specializes in eminent domain cases.

Lenders using new criteria to determine credit risk in mortgage loans

A low credit score doesn't necessarily result in an automatic turn down for a mortgage loan.

Mortgage lenders are looking for borrowers who are good risks, even though they may have little or no credit history. Lenders are now looking at additional criteria, some that they may not have considered a few years ago, in order to find new home buyers who are good risks, even though their credit score may not show it.

Those most likely to gain from this new way of looking at financial history include young adults and new immigrants. They are more likely to be approved without being subjected to extremely high interest rates because their scores are not high.

This "non-traditional" data that lenders are now looking at when considering home loan applications includes:

Information in public records, including property records and professional licenses. A license indicates that a person is a better risk because they have a steady income and commitment in the community.

Rental payment is another category that reporting agencies have begun to consider. Late payments could be an indicator of future behavior.

Utility payments and cell phone bill payment history can also be an indicator of whether a person with little or no payment history takes paying their bills seriously.

The takeaway for many is that even though you may have little credit history, or may have a score that falls somewhere between bad and good, you may be able to secure a loan from a mortgage lender. The first thing you need to do is talk to a lender to see what you qualify for and what a loan will cost. A mortgage lender will also be able to tell you how to improve your scores so that you can get a better rate.

What the government shutdown means for home buyers and sellers

With Congress unable to come to an agreement, we've got a situation known as a partial government shutdown. The last time this happened was in 1995 when there was a shutdown that lasted for 21 days.

Many agencies, such as NASA, have furloughed non-essential personnel. Still others are operating at full capacity, including the military and TSA. There are many, including Housing and Urban Development, which are operating with skeleton crews.

Early reports stated that the Federal Housing Administration would stop processing loan applications. This is not the case. The first contingency plan issued by HUD mistakenly stated that FHA would be unable to endorse any single-family loans and that staff would be furloughed.

The announcement sent a panic through the real estate market. After noticing the error, HUD issued a statement saying that its Office of Single Family Housing will continue to endorse new loans even in the event of a lapse in appropriations.

The FHA is funded through multiyear appropriations. There will be some reductions in staff and furloughs, but it will be able to operate. Because the department will be short-staffed, there could be some delays, but the paperwork will be processed. Multi-family operations, however, are funded on a year-by-year basis. During a shutdown, condo projects would be put on hold because the FHA will not be able to underwrite them.

It is unknown at this time how much of a delay we can expect in single-family loan applications or what the long-term impact of a lengthy shutdown will be. In its statement, HUD said that it does not expect the impact on the housing market to be significant, provided the government shutdown is brief.

Government Shutdown Information for OBX

GOVERNMENT SHUTDOWN INFO From OBAR

THE NUMBERS: Dare County is 1,562 square miles, of which 75% is water.
Of the 384 square miles of land, 307 square miles are owned by the government - either local, state or predominately the Federal Government.
ONLY 77 square miles of land are privately owned.

The following Outer Banks sites have been impacted by the Federal Government Shutdown:

CLOSED:
Wright Brothers National Memorial/Visitors Center
Dare County Lighthouses - Closed
Fort Raleigh National Park - Roanoke Island (Elizabethan Gardens (privately owned) "Psychopath" event is operating as scheduled)
National Park Service property - Cape Hatteras National Recreational Seashore is closed. This has impacted fishing, swimming, pedestrian access and beach driving permits.
Oregon Inlet Fishing Center
National Park Service property campgrounds

Visitors and Residents should check to see if any event/activity they were planning to participate in was scheduled to be held on federally owned property.

State and locally owned event sites such as Jockey's Ridge, Nags Head Woods, Roanoke Island Festival Park and the NC Aquarium are OPEN.
Currituck Heritage Park sites - the Currituck Beach Lighthouse, Whalehead and the Outer Banks Center for Wildlife Education are OPEN.

The Outer Banks Home Builders Association's Parade of Homes will be held Thursday thru Sunday this week.
The Nags Head Surf Fishing Tournament scheduled for next week will be held as planned.
The Outer Banks Seafood Festival scheduled for October 18th and 19th on the Outer Banks Event Site in Nags Head will be held as planned.

The Nags Head Surf Fishing Tournament scheduled for next week will be held as planned.
The Outer Banks Seafood Festival scheduled for October 18th and 19th on the Outer Banks Event Site in Nags Head will be held as planned.

Due to the shutdown, the House Financial Services Committee Hearing on Flood Insurance scheduled for Wednesday, October 9th has been cancelled.

DSNEWS-COM-List of Recovering Markets HIt Record

The National Association of Home Builders/First American Improving Markets Index reached its highest level on record in September with a little more than 80 percent of markets qualifying as “improving.”

The index, released Monday, tracks 361 metropolitan areas for improvement in housing permits, employment, and house prices. Markets have to demonstrate improvement in all three areas for six consecutive months to make it on the list.

Of the 291 markets that made it onto the latest Improving Markets Index, 242 were repeats from the previous month, and 49 were new to the list.

Five markets dropped off the list over the past month. Those markets include Kankakee, Illinois; Burlington, North Carolina; Jacksonville, North Carolina; Winston, North Carolina; and Danville, Virginia.

“While there is still plenty of room for growth, this is an excellent indication of how the housing recovery has begun to take hold across more geographical areas,” “said Rick Judson, chairman of the NAHB and a home builder from Charlotte, North Carolina.

The NAHB pointed out that markets new to the index this month spanned several regions of the country, including such metros as Macon, Georgia; St. Cloud Minnesota; Brownsville, Texas; Spokane, Washington; and Milwaukee, Wisconsin.

However, NAHB’s chief economist, David Crowe, pointed out that “[t]he dramatic increase in markets qualifying for the IMIin September was partly due to a recent improvement in the way that Freddie Mac measures home prices.” NAHB relies on Freddie Mac’s housing data for its index.

“Even so, the broadened list of metros on the IMI continues to demonstrate the slow but steady gains that individual housing markets are making to bolster the national outlook,” he added.

In fact, all 50 states have at least one county represented on the index, and 23 states have at least one new market on the index this month.

Salinas, California, outranks all other metros on the index in terms of permit growth from its trough with a 44.2 percent rise.

Phoenix, Arizona, ranked highest for price growth with a 41.5 percent increase from its trough.

Midland, Texas, has experienced the greatest employment growth of any market on the index—a 33.5 percent rise from the market trough.

Recent Articles

Secretary of State Addresses Mortgage Industry at Honors Event

NextAce's Automated Title Search Platform Goes National

Equifax Solution Looks at Past Credit Behavior to Predict Future Default

ALTA Awards National Title Professional Designations