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Why Credit Scores Are Important When Buying a House

One of the easiest and quickest ways to secure a great mortgage rate is by having a good credit score. The truth is that the majority of companies will first check your credit score to decide the rate that you will receive. If you have little to no credit or if you have a low credit score, then this will hinder or almost entirely null your chances of getting a good percentage rate or any loan for your mortgage whatsoever. Your credit score is important, but what is just as or even more important than your actual score are the other things that are indicated on your credit score. It is frowned upon greatly if you have, for instance, repossession on your credit score, credit card debts or even an eviction that is noted. Many companies will demand that you fix these issues on your credit score before you are ever given a good mortgage rate. A credit score is your calling card in the real estate world and aside from anything else, it is the most important piece of paper that you will have to show in order to get a loan or good mortgage rate. Credit scores are very helpful in also securing a better price on real estate as well. When a company sees that you have a high credit rating, then you appear much more trustworthy and reliable than an individual with a less than desirable credit rating. A high credit rating might be able to get you money off your entire property purchase, special perks such as lower monthly payments and also a smaller down payment, etc. If you do currently have a low credit score, then there are ways that you can repair it and make it high once again. Simply contact the companies that have written marks on your credit report and do what you can to remedy the situations, either by paying the debt or asking them to remove the mark from your credit score. READ MORE

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Understanding the Earnest Money Deposit

What it is and why it’s good to include it as part of your real estate transaction.

Earnest money is specifically used to show that a buyer is serious about purchasing a property in regards to real estate transactions. Earnest money is paid by the buyer to the seller and shows a level of commitment and integrity towards the purchase and it is used as a down payment if and when the buyer goes through with the offer. If the buyer does not go through with the offer, then the earnest money is left to the owner and not returned to the buyer. Earnest money is vital to how real estate actions are perceived by buyers as well as sellers because they demand a certain level of seriousness in regards to purchasing the property to the seller. Many buyers can be interested in a property, but unless earnest money is exchanged by the buyer to the seller, a serious transaction cannot take place. Earnest money wins the appreciation from the seller to the buyer and instills that the property is practically in the buyers hands and earnest money gives the buyer first priority on a property sale. The reality is still that unless the property has been fully sold, it is still the property of the owner, but earnest money can give a buyer the reality that the property is close to being theirs. Earnest money is a great tool used in real estate transactions and can convince a seller to go with one buyer over another. If a buyer utilizes the earnest money tool, then they are giving top priority for the property, even if all the paperwork has yet to be signed. Earnest money is similar to a promise from the buyer that they will be purchasing the property. It is a good idea for sellers to instill earnest money into their real estate transactions because then they have much less of a threat of getting short-changed by a buyer who says one thing and then does the opposite. Earnest money gives a verbal promise a level of backing that works to benefit the entire real estate transaction. READ MORE