How Will No Credit or Bad Credit Affect Your Home Purchase?

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Selling a home? Click here for a FREE Home Price Evaluation

Today we'll discuss no credit versus bad credit-- is one better than the other?

When you have no credit, you might have all the intentions to pay on time, but you are a big question mark for the lenders because they have no way to verify your spending habits. The banks will be hesitant to loan you money if you have no credit history. You need to show you can handle debt by paying it off. Don't get into heavy debt, but have some kind of credit card or car payments lined up to build credit history.

If you have bad credit, that is usually better than no credit. Bad credit shows patterns of spending and debt that the banks may be able to live with. Maybe you had a medical emergency that led to your bad credit. If you lost your job during a particular time and bills fell behind, but got a new job and paid payments back, the bank will see that as well. The bank may decide to give you a home loan, but you may have to pay higher interest rates than someone with good credit.

The bottom line is that bad credit is better than no credit. If you have any questions for me, please do not hesitate to give me a call or send me an email. I look forward to hearing from you!

What Is the Current Market Climate in Miami?

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation

Let’s discuss the current climate of the housing market. The Miami real estate market is currently tilted in favor of sellers. There is less property available for sale and more buyers looking. Because of this, properties face pressure. Properties have been going up less than 1% per month on average. However, we have a few points for you to keep in mind.

Don’t expect to get rich quickly based on the high demand. Chances are you won’t make 30,000 or even 5,000 dollars profit in six months unless you property is valued in the millions.

Sellers must refrain from overpricing their property. You won’t be able to sell if your listing is overpriced, even in a hot market like it is now.

30-year mortgage rates are increasing. The mortgage rate has gone up to an average of 3.89%. A little while ago, it was at 3.79%. Because of increasing rates, buyers might be put off.

Sellers can get a very good price by targeting and pricing correctly within your range. The right price is key!

Speak with a Realtor that can do an inspection for a reasonable estimate. This Realtor should either know your area or be able to study it to conduct a physical inspection of your home. An aggressive, reliable Realtor should get a firm idea of what your price is to help you.

Buyers should speaker with a Realtor, look at your price range, and make a good offer. Don’t waste time chasing the wind. Time is money. Use a Realtor as a guide to show you three to five properties within your price range. Make a firm offer and move forward. That’s my advice to you.

This has been a great opportunity to talk about the real estate market. If you have any questions, please give me a call at 305-807-0884 or send me an email at dan@dcardona.com. I look forward to hearing from you!

What You Need to Know When Looking for a Miami Home

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation

Today, we'll discuss what you need to do when looking for homes here in Miami. There are three things you need to do before you start actively looking for homes.

1. Get pre-approved by a mortgage broker or bank. A lot of people say they won't have a problem. Believe me, you will have a problem. You may lose the property after you find it, and that would cause a lot of heartache. I don't want you to go through that. You need to know how much you can afford. Since mortgage brokers work with a lot of banks, they can place you with the best bank for your financial situation.
2. Find a Realtor who knows the business, works full time, and is truthful about the market. That way, you can go after the properties you can actually afford without wasting time chasing the wind.
3. Keep in mind that there are three factors in a property search: price range, location, and property features. Determine which factor drives your search and adjust the other two accordingly. For example, if you're looking in a certain price range, you can adjust the features of a home or the area of a home. This might be a tough mind shift for you to make, but I can help guide you through it.

If you have any questions about today's video or about real estate in general, give me a call or send me an email. I would be happy to help you.