Oakland County Mi-Buying a Fixer Upper
Due to the mortgage crisis that our country faced over the last several years, there are continually more and more foreclosure properties that are being put up for sale everywhere you turn. Oakland County Mi and Buying A Fixer Upper can be very tempting for Oakland County homebuyers as people can sometimes get properties for 30% or even less on the dollar.
However, if you are considering a foreclosure property or a fixer upper for your next purchase, then there are some common pitfalls that you will need to avoid along the way to protect yourself and your future asset. Let’s review some areas to be aware of before making any serious offers.
1. Avoid Making Emotional Offers: When you are planning on putting a bid down on a Oakland County property, you need to be extremely confident with the home’s current condition, its true market value, and what will be needed to fully restore the property.
Too many Oakland County buyers will think that they found a slamming deal and fear that they will lose the home to another bidder. So instead of taking the time to truly do their homework and complete the proper inspections and analysis, they can end up locking up a property for more than it’s actually worth.
2. Estimate Oakland County Neighborhood Values: Consider what other comparable properties are selling for and talk to a real estate agent who has a working knowledge of the area. In fact, it’s a wise decision to thoroughly review these questions and any other recommendations your Oakland County Realtor may make:
- Is this neighborhood a desirable location and how are crime rates?
- What schools would be available for my kids or future buyers in Oakland County?
- Were there any other foreclosures or investor sales that could negatively affect the future value of my home?
- How long do I plan on living there and how could that affect things?
- What type of appreciation should I expect in my Oakland County fixer upper?
3. Get Preapproved: Before you even start looking at homes, you must get preapproved on a mortgage in order to know exactly what you can afford. Sadly, many buyers can miss out on some phenomenal deals or spend hours of wasted time because they avoid this step. Show banks that you are a serious buyer and have your financing in place for your Oakland County home!
4. Get Professional Help: Not only should you seek the expertise and of an experienced Oakland County Realtor, but you may also need guidance from a real estate attorney or financial consultant as well. Each professional can ensure that you are making the right choices throughout the process and can protect you from any issues you may come across along the way.
Remember that there is a lot more than meets the eye when you are trying to buy a foreclosure or fixer upper property. Negotiating with the banks, filling out paperwork properly, and undergoing all the necessary inspections can be a very detailed and tedious procedure.
Therefore, we encourage you to give me a call today to get started. Myself having years of experience assisting other clients with buying foreclosures and fixer uppers in Oakland County Mi for their next home, I can help you as well.. Discover how I can help you to make a smart and profitable investment as well!
Please see my Video (below) to get advice on Buying an Oakland County Mi Fixer-Upper
Buying A Home In Oakland County MI.? Take This Free Video Credit Course
HOW YOUR CREDIT SCORE IS GRADED
The newest method used by lenders to determine credit worthiness of a Oakland County MI. home buyer is credit scoring (Free Video Credit Course included). Lenders now have an objective way to assess a borrower’s application, which also removes bias and helps lenders offer better terms to those with high scores.
Credit scoring is based on a numeric scale, using data provided by the “Big Three” credit reporting agencies: Equifax, Experian and Trans Union. The scores help lenders determine the level of credit risk a Oakland County borrower may present to investors. Depending on the score, the borrower is rated A, B, C or D. Obviously, the higher the score, the lower the risk of default. This improves the options for the borrower in Oakland County and can reduce overall borrowing costs on their New Oakland County home.
Scores above 660 are usually considered A credit, according to HSH Associates, a mortgage and consumer-loan information publisher. You can score above 660 even if you were 30 days late on an installment loan or 60 days late on a revolving credit account once within the past two years. But more than one occurrence will drop your score quickly.
“B”s And “C”s
Late payments and high credit balances lower the score and the grade. If you have had a number of late payments, you will probably receive a B or C grade, possibly increasing your interest rate and hurting your chances of getting a loan.
D credit ratings are usually given to someone who recently filed for bankruptcy or has had extensive credit difficulties.
It’s All Relative
Keep in mind, however, that a score of 660 may be considered good by one lender and mediocre by another. There’s more to approving a loan application than just the credit score.
Once your application is complete, it is usually examined by an automated underwriting system and by actual human beings! Both Freddie Mac and Fannie Mae (the two largest mortgage holders in the country) tell lenders that applications should not be approved or declined based only on credit scores.
More than 100 variables are used to determine your score. There are, however, five primary categories of credit information, according to Fair Isaac, the leading firm in the area of credit scoring. They are, in order from most to least important:
1. Late payments, delinquencies, bankruptcies
2. Outstanding debt
3. Length of credit history
4. New applications for credit (inquiries)
5. Types of credit currently in use
While a lot of information goes into determining a credit score, there are some areas that are definitely not included, including ethnic group, religion, gender, marital status and nationality. These categories cannot even be considered in a loan application. Federal law protects all Oakland County MI potential borrowers from discrimination in the lending process.
Below is a series of 7 videos that will teach you what you need to know about getting your credit in shape for a future Oakland County home purchase.
Please feel free to share these videos with a friend who currently owns or is looking to buy a home in Oakland County.
Staying out of credit trouble can have a big impact on your financials for years to come!
FREE 7 VIDEO CREDIT COURSE