Credit Scores and Mortgage Loans               It's no secret that "easy credit" has caused a great deal of problems in the housing and mortgage sectors and mortgage loans are more difficult to get today then they were a year ago.  All the more reason to understand what lenders are looking for when they evaluate your credit standing and make their decision about giving you a loan.   Creditors use credit scores for all lending decisions. The generic term is FICO Score.  Fair, Isaac, and Company pioneered the system for reducing ones credit worthiness to a single number. While the actual formula is a secret, the system looks at multiple layers of your credit snapshot to determine statistically whether you are a high to low risk borrower. Factors include:   Payment History - all creditors report whether you pay your bills in a timely fashion. While you may be subject to a late fee for remitting beyond a certain date, mortgage lenders look for 30-60-90 day late occurrences. All late payments are negative indicators but an occasional oversight is minimal relative to a trend of late payments.   Account Balances - creditors report account limits, current balances, highest balances, and required payments. The number of accounts you have and balances outstanding will significantly impact your rating.     Credit History - how long one has utilized and managed their accounts is considered. A long time credit user with a good history is viewed more favorably than one who has little or no credit.   Account Mix - the type of accounts - secured (mortgages, installment loans), unsecured (credit cards, store accounts), leases, etc.   Inquiries - the number of times recently that your credit file has been accessed. As there is a lag from inquiry to credit issuance, an assumption is made that new unreported credit may have been obtained.   Scores range from 400 to 900. Lower scores mean higher risk to the lender.  While not cast in stone, 620 is the dividing line between "A" credit loans versus sub-prime (B&C) loans.   Fannie Mae (FNMA) and Freddie Mac (FHLMC) drive the residential mortgage world.  Each entity utilizes an automated underwriting system enabling lenders to input borrowers application information, desired loan product, and loan parameters. The underwriting system pulls the credit report and matches the loan request with the FICO score and makes the loan decision. The credit score will have bearing on the pricing (additional fees) and loan amounts relative to property value or sales price. Borrowers with a particularly high credit score are not always rewarded with lower rates. The trade off is flexibility within product guidelines and the absence of risk based add-on fees   FICO Scores and automated underwriting have benefited more borrowers than the old system. However, it isn't perfect. If, based on FICO scores, the loan doesn't receive an "accept" finding, there is little that can be done to override the decision (even if the report contains erroneous information).     The moral of the story is to do everything in your power to manage your credit wisely.  Pay on time, avoid maxed out balances, close out dormant accounts, and use credit sparingly. Oddly enough, it is important that all mortgage applicants obtain and use credit. The lack of credit history can cause difficulties similar to derogatory credit. Lenders need credit information in order to do a risk assessment.  If you have recently come out of bankruptcy, it is critical to re-establish credit - but only that which you can manage.   We deal with mortgage companies and financial institutions on a frequent basis and have built a relationship with many local lenders.  If the buyer, property and circumstances seem to fit, we are sometimes able to get a lender to see beyond the numbers to get a loan for our client.  We don't get anything from the lender and we don't ask anything from you.  This is all part of being a "Full Service Realtor" and doing what we can to make the deal work for both the buyer and the seller, thereby, earning our commission on the sale.   Call us at 205-612-8496 or email us by clicking on this link ---> Contact Us         Back to Top                             Making the Right Offer        The "Right Offer" is the offer that gets the deal completed to the satisfaction of both the seller and the buyer.  How long the home has been on the market, physical condition of the property, price in relation to other homes in the area and other factors will all play a part in determining the correct offering price, however, an offer within 3% of the asking price is usually considered reasonable.    There are other factors the seller will consider when reviewing an offer aside from the offering price.  The purchaser’s willingness to accept minor defects in the property, ability to close fast or delay closing to meet seller’s needs and other non price related items are all part of the offer.  If you entered an agency agreement with a Realtor, this is an area where their services can be most valuable.  Your agent can talk to the sellers and seller's agent to find out the motivating factors needed to complete the sale and give you the information you need to make the "Right Offer".   Beware of putting contingencies in your purchase agreement.  They weaken your offer and could take you out of the running.  However, your offer may have to be contingent on you selling your house or a home inspection if you are uncertain about the structural integrity of the home.  These contingencies should definitely be included in the offer to purchase contract, however, the sooner the contingencies are satisfied or removed from the contract the better chance the deal has of being completed.   Earnest Money is something the purchaser is asked to deposit with the listing broker to show they are serious about the offer and their intention to purchase.  The amount of earnest money is completely negotiable but usually runs between 5% and 10% of the purchase price.  The earnest money is typically applied to the purchase price at the closing but may be forfeited to the seller or listing broker as liquidated damages should the purchaser fail to meet the terms of the contract. .   Back to Top                               Title Insurance   There are two kinds of title insurance – a lender’s title policy and an owner’s title policy.  To protect their interest in the property, mortgage lenders require buyers to purchase a lender’s title policy.  But a lender’s title policy doesn’t protect your interest as the homeowner.     To protect your interest in the property you need an owner’s title policy.  This policy pays for all court costs and related fees associated with any claim that might come up and if a claim is found to be valid, your actual loss is covered, up to the face amount of the policy.  In Alabama, it is customary for the buyer and seller to split the cost of the two title insurance policies.   Some of the things a title policy will protect against include: Fraud Liens for unpaid estate inheritance and gift taxes against prior owners of your home. Unrecorded easements – rights of way Undisclosed Heirs of former owners of you home or the land on which it is situated. Invalid deeds delivered after the death of the grantor Invalid documents executed under expired power of attorney Deeds by persons of unsound mind Deeds by minors Deeds by supposedly single persons who are actually married  Back to Top                                             Closing   In Alabama it is customary for one attorney to represent the buyer, seller and mortgage company (if a loan is involved) and for the cost of the attorney to be split equally between the buyer and the seller.  The closing attorney will lead the way and direct you in regard to the many papers that must be reviewed and signed.  A good closing attorney will make the experience pleasant and stress-free.   The closing should take less than an hour to complete.  The meeting is relatively informal and usually attended by the buyer, seller, buying and selling real estate agents, and perhaps a representative from the mortgage company.  You can also bring anyone you wish to assist you or just keep you company.   Things you should bring to the closing:    Buyer:   Photo ID A certified check for the amount specified in your most recent Good Faith estimate you received from your loan officer or lender.  This usually includes the balance of your down payment (less the earnest money you paid when your offer was accepted) as well as closing costs and fees for other services.  Your real estate agent or closing attorney can tell you how to make out the check and the exact amount. Your personal checkbook to cover any other charges that come up. Your homeowner’s insurance binder with proof (receipt) of one year’s payment. Seller: Photo ID Keys and garage door opener(s)  If more than one owner, both must attend or arrangements for power of attorney must be made in advance. Any notes or instructions that may help the buyer get aquainted with the home.    Back to Top                                   Moving Tips & Cautions   Moving can be a stressful experience for many.  Trying to pack your life’s belongings into boxes and living out of these boxes for a period of time can be a real challenge.  Of course the level of difficulty will be different for someone who has lived a few years in an apartment with packed closets as compared to someone who has spent 20 or more years in a house with packed attic, basement, garage, yard and who knows what else.  If you are the latter, one of the most important and maybe most difficult things you will have to do is decide what to keep and what to get rid of.  Have a garage sale, give to a charity and friends, throw it out, but don’t try to move it all.  This is the time to organize and trim down.   If your move is local, you will be able to make multiple trips with the car or truck, which will make moving and locating frequently used items easier.  However, for a long distance move where you make only one trip, you should pack frequently used items and necessities (toiletries, medicine, work clothes, etc) in clearly marked boxes that can be located and opened easily.  Remember, you will be tired when you get to the new house and it may take weeks (or months) to unpack and organize all your belongings.  Having your necessities available will allow you to function effectively during this process.   Moving Companies-   If your move is local and you plan to rent a U-Haul or use a local moving company like Two Men and a Truck you should have few if any problems and your biggest concern may be over extending yourself physically during the move.   However, if your move is long distance and you plan to use a long distance moving company to make the move, you have some shopping to do.  All moving companies are not “created equal” and if you pick the wrong one your move can become a nightmare.  There have been stories shown on “20/20” and other programs where people’s furniture and belongings were held hostage on a packed truck until the moving company received additional charges that could run into thousands of dollars.  A good deal of helpful information can be found on the U.S. Government website - ProtectYourMove.gov.   One of the keys to avoiding surprises is to get a firm price for the move (in writing) that is guaranteed to stay firm, or not to exceed a certain limit, regardless of any weight changes found after the move.  Moving costs are based on the weight of the truck.  Some companies will give you a low estimate on the weight up front to get your business.  They than have the truck weighed on route to your new home and demand you pay the additional charges before they unload the truck.  When you read all the print in the contract you will find that the “firm” price they gave you originally was based on their weight estimate and since the weight estimate was off, they have the right to adjust the price to cover the corrected weight.    Bottom line is to use a reputable company with a good track record and no complaints filed with the Better Business Bureau or other agencies.  Then have a contract drawn up that clearly outlines how firm the price is and what factors would cause it to be increased after the move.  Big name alone is no guarantee as some of these companies may be franchises run by local independent operators.  Recommendations from friends and satisfied customers would be a better indicator.   There are many good companies available and our intent is not to scare you but to simply caution you as to one of the possible pit falls of moving that can be avoided with some knowledge and planning.   Back to Top                                                       Mortgage Help   We deal with mortgage companies and financial institutions on a frequent basis and have built a relationship with many local lenders.  If the buyer, property and circumstances seem to fit, we are sometimes able to get a lender to see beyond the numbers to get a loan for our client.  We don't get anything from the lender and we don't ask anything from you.  This is all part of being a "Full Service Realtor" and doing what we can to make the deal work for both the buyer and the seller, thereby, earning our commission on the sale.   If you feel you need someone to look beyond the numbers when evaluating your qualifications for a loan, give us a call or email and we will discuss what we may be able to do for you.   Call us at 205-612-8496 or email us by clicking on this link ---> Contact Us     Back to Top

Foreclosure Listings:

Foreclosure properties can offer a bargain to a well informed buyer but not all foreclosure properties are bargains.  When a home owner is no longer able to maintain their mortgage loan payments, banks and mortgage companies try to recoupe as much of the loan amount as possible in a foreclosure sale or auction.  These sales are intended to be priced at the market value of the home but can often be influenced by the balance of the oustanding loan.  As real estate professionals we have the market knowledge needed to help you evaluate the deal.

The links below will bring you to the foreclosure listings in the areas shown.  Take a look at what's available then give us a call at 205-612-9633 so we can guide you through the process.

• Jefferson County
• Shelby County
• Other Surrounding Counties
• HUD Homes - Properties owned by the Department of Housing and Urban Development

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Relocation Services

 Nation wide home search to find a home anywhere in the country

Long Distance Moves:

Long distance moves and moves to another state are somewhat different than moving across town or to another part of the same state.  You don’t know the area or people.  Schools, churches, banks, stores, restaurants, child care, getting your car registered or even getting from one part of town to another will all be unknown to you.  You need more than a real estate agent to find you a house…you need a tour guide and some friendly, but professional, advise. 

We know, we moved to Birmingham from New Jersey in 1992.  We have first hand knowledge of what it’s like to leave your house in the morning and needing a map to find your way back; and looking at a road sign that tells you how far you are from a particular town or place and not having any idea of where that place is or even what direction it is from where you are. 

Buying a home in the middle of all this confusion can really be a challenge and can lead to a decision that results in long term disappointment and regret.  That’s why our first recommendation to people moving into a new area they know little about is…..don’t buy a house…until you have an opportunity to learn more about the area and can buy in the location that you know best fits your needs and lifestyle. 

Renting Before You Buy:

Renting an apartment or house, on a short-term basis, will give you the opportunity and time needed to get to know the area.  You will have the time to meet people at work, church, school and social functions and find out more of what is available throughout the area before you make a long-term commitment.  Weekends can then be spent searching the available houses in different areas until you find the home that is right for you.  We can help find a rental property to meet your temporary needs and work with you in finding and closing on the home that will meet your long-term needs.

Buying From A Distance:

Of course, renting may not be an option you can take.  In this case you need to obtain all the information you can about the area around you and work with someone who is not only knowledgeable of the area but will act in your best interest in finding and securing a home that is right for you. 

Our Area Information and Services guide is an excellent tool that can help you quickly get information about school systems and services available in any area.  Access to a computer will allow you to obtain and research this information at any time from any location.

As Realtorsâ we have the knowledge and experience to guide you through the local real estate market and under a simply executed “agency agreement” we will be obligated by law and a code of ethics to act in your best interest.  We will ask you questions that will help us get to know more about you and your needs. We will research properties during the week and send electronic* files of these listings to you so that your visits to the area can be spent productively looking at properties that meet your needs and budget.

Moving is considered one of life’s most stressful events along with marriage, divorce, and changing jobs.  Let us take out some of the stress and help you make the “right move”

 Call today- 205-612-9633.

* Listing information can be faxed or mailed to people with limited computer access.

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COMMERCIAL PROPERTY -  BUYING AND SELLING

The link below will bring you to a commercial property web site used by professional real estate agents throughout the country.  This link is provided as a service to you and will allow you to search and learn about properties in the commercial market.  This is the same site we would use to sell any commercial properties we have listed.  The buying and selling of commercial properties is a specialty that should be handled by a qualified real estate proffessional, therefore, although we provide this information for your general knowledge, we do not encourage you to proceed in the selling or buying of any commercial property without the assistance of a real estate agent. So visit the link below......then give us a call - 612-8496                   ***LINK TO COMMERCIAL REAL ESTATE SITE - Click Here ***

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INTERNET AUCTION SALES -

If you are a motivated seller who wants to focus attention on your property or a buyer looking for a possible bargain, online real estate sales may be for you.  As full service Realtors, we believe in offering all the tools available to assist our clients, and online auction sales is one of the newer faster growing tools available today.  The link below will bring you to RealtyBid.com.  If you visit this site you can look around and get information on how internet auction sales work.    You must be a real estate agent to list property with RealtyBid.com.  If you list your property with us and decide to participate in an online auction, we will handle all the auction set up fees and advertising at no additional cost to you.  So take a look at the site and if you feel this is something you would like to look into further, give us a call at 205-612-9633.    Link to --> RealtyBid.com

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