During the recession, hundreds of thousands of people saw their credit scores were negatively impacted. Now it’s time to get those credit scores back up. Here are 7 guidelines to follow to help improve your credit score.
1) Check your credit report. This should help to not only give you an idea of the direction your credit score is going but also to ensure that it is correct.
2) Pay your bills on time. Making sure you are making your payments on time will help to improve your credit score.
3) Pay more than the minimum payment due. Not only will this help to clear your debt quicker, but will also have a positive impact on your credit score.
4) Pay off higher interest debts first. Evaluate your credit debts and then devise a payment plan that allocated most of your available budget for debt payments towards the highest interest cards first, after you have maintained minimum payments on your other accounts.
5) Don’t apply for new credit. Shopping around for new credit will also lower your credit score, as well as opening more credit. You will also end up with higher interest rates if you already have high credit card debts.
6) Don’t close your existing credit cards. Keeping credit open but not used, helps your credit-to-debt ratio. Closing credit will actually lower your credit score. Avoid temptation by cutting your credit cards so they are not useable.
7) Manage your credit. Making sure you have more credit than debt will help to increase your credit score.
For those of you who’s credit scores have been effected by the recession, please see our Another Chance program for more information on how you could receive a Private Home loan so that you can own a home once again.
As the real estate market begins to look up, we are seeing more and more new housing developments across Henderson, Nevada. As Mark Paris, Landwell Development CEO stated “The market is starting to look like it can support new development.”
Some of the new developments we can see throughout Henderson include Candence in Henderson, by Landwell Development, which has been permitted for about 13,000 homes. D.R. Horton is also expanding their portfolio having recently bought 63 acres near Horizon Ridge Parkway and Gibson Road with plans for 305 residential lots as well as closing escrow on 275 lots in Whitney Mesa Estates.
While there are certainly rays of sunshine on the horizon for both our local and national housing market with increasing home prices and strong sales numbers, not everyone feels the warmth, especially the thousands of Southern Nevadans who have already lost their homes to either a short sale or a foreclosure and those prepping for a similar fate in 2013.
“2013 has continued to show a growth in both housing prices and home sales, reasons for optimism that our real-estate market is getting back on track. While this may be great news for our economy and home shoppers, it is bittersweet for others,” Rick Piette of Las Vegas-based Premier Mortgage Lending said, citing statistics released last week by the Greater Las Vegas Association of Realtors (GLVAR).
GLVAR reported a total of 3,232 sales in February, up from 2,821 in January. Last month’s sales price for a single-family home was $150,000, up 24 percent compared to February 2012, while median sales price for condominiums and townhomes were up 36.7 percent within the same one-year period.
“These statistics show that our market is in an upswing with a strong demand among buyers seeking to buy homes at today’s lower prices. They’re also a reminder of the misfortune of the thousands of Southern Nevadans who suffered the loss of their homes through short sales and foreclosures. Since the start of the housing downturn, literally hundreds of thousands of Nevadans have lost their homes. Getting these people back into homes of their own is fundamental to the success of our recovery, and a primary goal for Premier Mortgage,” Piette says.
“I expect the sales to remain steady because short sales and foreclosures will continue to hit the market with as many as 80,000 homeowners currently underwater and delinquent on their mortgage payments, possibly facing a short sale or foreclosure in the near future. I believe that Congress’ extension of the Mortgage Forgiveness Debt Relief Act will prompt some who are currently weighing their options to finally move forward with a short sale or foreclosure before the act expires Dec. 31,” said Piette, a longtime Nevadan who has worked in the mortgage industry for over 25 years.
He says that uncertainty often follows a short sale or foreclosure due to both emotions and conflicting information.
“Many people who have experienced a short sale or foreclosure think that they don’t have any option other than rent for at least two or three years, but more realistically at least five years. But, this is not true. New loan programs such as Premier Mortgage Lending’s ‘Another Chance Nevada’ make it possible to purchase a home right after a short sale or foreclosure and to take advantage of today’s great home prices.”
Another Chance Nevada connects individuals who have experienced a short sale or foreclosure with private and institutional portfolio lenders who offer 15- or 30-year, fixed-rate loans at interest rates that are typically higher than traditional mortgage rates, according to Piette.
Full-documentation guidelines are followed and at least a 20 percent down payment is required. The down payment can come from personal funds or can be obtained as a gift from family members. Borrowers may close within 30 days from the time of loan approval, and may refinance the loan at any time without penalty.
An Another Chance loan may be used on the purchase of a re-sale or a new home. The lender is currently working with Beazer Homes, D.R. Horton, Dunhill Homes, Harmony Homes, KB Home, Pardee Homes, Pulte Homes and Del Webb, Richmond American Homes, Ryland Homes, and William Lyon Homes.
“While the decision to purchase now using non-traditional financing or to wait until you can qualify for a traditional loan is a very personal one, recent data suggests that now may be a good time to buy. Plus, if the housing prices continue to increase in 2013, it might make more financial sense to buy a home with an Another Chance loan now and then refinance when your situation allows,” Piette said.
As a full-service lender, Premier Mortgage Lending provides complimentary mortgage pre-qualification to help people determine if they may qualify for a traditional mortgage or Another Chance Nevada, and to weigh if buying a home is the right decision for them.
For additional information or to schedule an appointment for mortgage pre-qualification, call Premier Mortgage at 485-6600 or visit www.AnotherChanceNevada.com.
Premier Mortgage Lending (NMLS 393282) is located at 8689 W. Sahara Ave., Suite 100, Las Vegas, 89117 and is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.
I have recently experienced a foreclosure or short sale of a prior home that I owned. Can I still qualify for your loan program?
Answer: Our non-traditional loan program is tailored toward those
borrowers who may have recently lost their homes due to
foreclosure or short sales. We realize that this unprecedented
economic down turn has forced many of us to make the ‘tough
decisions’ to walk away from our mortgage obligations.