Month: February 2023

 

Raising your credit score can take time and effort, but there are several steps you can take to improve your creditworthiness. Here are some tips to help you raise your credit score:

1. Check your credit report: You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year. Review your report for errors or inaccuracies, and dispute any errors you find.
2. Pay your bills on time: Payment history is one of the most important factors in your credit score. Make sure you pay all of your bills on time, every time.
3. Reduce your credit utilization: Your credit utilization ratio is the amount of credit you’re using compared to your available credit. Aim to keep your credit utilization below 30% of your available credit.
4. Keep your credit accounts open: The length of your credit history is another important factor in your credit score. Keeping your credit accounts open and in good standing can help improve your credit score over time.
5. Don’t apply for new credit too often: Every time you apply for credit, it can have a small negative impact on your credit score. Try to limit your applications for new credit to only when you really need it.
6. Consider a secured credit card: If you have no credit or poor credit, a secured credit card can be a good way to establish or rebuild credit. With a secured card, you make a deposit that serves as collateral for the credit limit.

Remember that improving your credit score takes time and patience. It’s important to stay committed to good credit habits over the long term to see the best results. Please reach out to us today so we can guide you through your home buying journey.

Down payment assistance (DPA) is a type of financial assistance that helps homebuyers cover the down payment and/or closing costs associated with purchasing a home. These programs are typically offered by government agencies, non-profit organizations, or private companies and are designed to help low- to moderate-income homebuyers who may not have enough savings to cover the upfront costs of buying a home.

There are several types of DPA programs available, including grants, loans, and deferred payment loans. A grant is a form of gift money that does not need to be paid back, while a loan typically has to be repaid with interest. A deferred payment loan allows borrowers to defer payments on the loan until a later date, such as when they sell the home or pay off the primary mortgage.

DPA programs may have income and credit score requirements, as well as limits on the amount of assistance provided. Some programs may also require borrowers to complete a homebuyer education course before receiving assistance.

DPA programs can be a valuable resource for homebuyers who need help covering the upfront costs of buying a home. If you’re considering a DPA program, please reach out to us today!

 

A mortgage escrow waiver is an agreement between a lender and a borrower that allows the borrower to pay property taxes, homeowners insurance, and other related expenses directly rather than through an escrow account.

When a borrower takes out a mortgage, the lender may require them to establish an escrow account. This account is used to collect and hold funds for the payment of property taxes, insurance premiums, and other related expenses. The lender then makes these payments on the borrower’s behalf when they become due.

With an escrow waiver, the borrower agrees to make these payments directly to the relevant parties. This means that the borrower is responsible for budgeting and paying for these expenses themselves, rather than having the lender do it for them.

An escrow waiver may be beneficial for borrowers who prefer to have more control over their finances or who are able to earn interest on the money they would have otherwise deposited into an escrow account. However, it also means that the borrower takes on the risk of not having enough funds available to make these payments when they become due, which could result in late fees, penalties, or even foreclosure.