Credit Checks Can Harm Your Score

October 28, 2011 at 08:58 AM · Posted under Colleen Kuchta

Every single number counts when it comes to your credit score. Picture this: you've spent countless hours searching for the perfect house. You searched online, attended countless open houses, got pre-qualified for a mortgage and hired an agent to show you houses and then represent and guide you through the process of buying a home. After viewing over two dozen properties, you wrote an offer and came to terms with the seller. You paid your earnest money, met your inspection and testing contingencies and even had your appraisal come back just above the purchase price. You have been paying your bills on time to keep your credit from heading south. Your closing is scheduled, and you think everything is smooth sailing from here on out. Today is the day before closing and you receive a phone call from your lender - it's the worst news possible - you no longer qualify for the mortgage. The house that you've spent countless hours preparing for will not be yours tomorrow. "What happened, why don’t I qualify?" you ask in disbelief. The response is simple. Your credit score dropped.

When your mortgage lender issues you a pre-qualification, one of the determining factors is your credit score. With the tighter lending regulations, your credit score needs to be a minimum 640 to qualify. Many times, buyers are pre-qualified, but are within two or three points of not qualifying. An easy way for your score to drop would be opening a line of credit at an appliance or furniture store. Another thing to remember is getting a new credit card can also lower your score. Next time you are checking out, and the clerk asks if you would like to save money be opening a store credit card, your answer should be, "No thank you." Both of these occurrences will require a credit check, and a credit check will lower your credit score. Buying furniture or appliances before you close on your new house might make sense, but it will lower your score and could affect your debt to income ratio.

So remember, if you want to make it to the closing table, pay your bills on time, don't get any new credit cards and definitely wait until after your closing to buy new furniture or appliances on credit! It would be a shame to go through the whole process of buying a new home, and then end up homeless! If you are looking for someone to help guide you through the buying process, we can help.

The Kuchta's, Kelly & Colleen

Posted by:  Colleen Kuchta

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Stability driven by first time buyers

January 13, 2010 at 06:07 PM

First-time home buyers were the engines that drove the Waukesha County real estate market in 2009.

By all accounts, the number of homes sold appears to be stabilizing. However, much of the activity has been in the lower price and can be tied to the $8,000 first-time buyer tax credit.

In 2008, there were 2,933 Waukesha County homes priced above $100,000 sold through MLS. That figure in 2009 was 2,901. That modest 1 percent decline looks awfully good when compared to the 22 percent drop in the number of homes sold between 2007 and 2008.

By all indications the first-time homebuyer credit had a big impact on the Waukesha County marketplace. Sales of homes priced between 100,000 and $199,999 were up a whopping 30 percent in 2009. Sellers in this price range saw more activity with many homes selling quickly at or near the asking price.

That impressive surge was offset by a 42 percent decline for homes priced between $600,000 and $750,000. The drop in activity here can be attributed, in large part, to the lack of transferees in the marketplace.

The 44 sales in this price range in 2009 pales in comparison to the 135 sold in 2007. That’s a two-thirds drop in sales volume in only two years. It would take all the talents of Ken Lay and Bernie Madoff to make those sales numbers look good.

Let’s hope 2010 sees further stabilization and at all price points. If that were to happen, then we could say we are in full recovery.

Posted by:Steve Bauman

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Time is slipping away!

May 22, 2009 at 01:56 PM · Posted under Colleen Kuchta

First time home buyers are out in full force these days. Many have realized that there has never been a better time in history to buy a new home. Prices are lower than they have been in years. Interest rates are holding steady right around 5%. AND, to make things even more enticing - first time home buyers can receive an $8,000 tax credit! Now here’s the catch: You MUST purchase the home BEFORE 12/01/09 to get your $8,000. Let’s be perfectly clear, that does NOT mean you need to have an accepted offer.

The closing must be completed before December 1, 2009. Ink dry, loan funded, keys in your hand - closed.

Many home owners, with their homes priced under $200,000, have already experienced an increase in buyer traffic. Quite a few have even received offers. So, what are you waiting for? The Kuchta’s - Kelly & Colleen, www.thekuchtas.shorewest.com specialize in assisting first time home buyers from start to finish. We can help you apply for a mortgage, tour properties, draft an offer, negotiate on your behalf, guide you through the home inspection and attend the closing with you.

Don’t delay, you don’t want to miss out on these great rates, and have your $8,000 slip away! The Federal Government has been holding rates where they are at in order to stimulate home sales. They won’t stay this low forever. Your free $8,000 won’t be here much longer either - 6 more months and it is gone forever. December 1, 2009 is fast approaching, so get out there & buy your new home. Contact us if you need assistance; The Kuchta’s - Kelly & Colleen, 262-894-6512 or ckuchta@shorewest.com

Posted by:Colleen Kuchta

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Tagged with first time home buyer