Tuesday’s Tip: Paying Off Collections Can Hurt You!

March 6, 2018 by Pam Leave a Comment

Tuesday’s Tip: Paying Off Collections Can Hurt You!

I know, that doesn’t make sense. You would think paying off an overdue debt is a good thing, so it should reflect as such on your credit report. No, in most cases it doesn’t. Some people have reported no change in score, while others have even said after paying off the debt, it caused their score to drop! That’s crazy! The reason, experts say, is when you pay them off, they are considered new activity, which causes the score to drop, since it is in collections.

There’s a better way. Negotiate with the creditor to delete it when it’s paid off. Get it in writing and don’t pay until you see it in writing. Once you pay it, check back in 30 days to see if it’s removed. If you’re not trying to purchase a big ticket item, you can wait a little longer to see of it’s removed. If it’s not removed, dispute it with all 3 credit bureaus. That should bump your score.

Remember, negative items come off after 7 years. The older the collections, the less impact it will have on your credit.

I hope this helps and you found today’s tip useful. If you’re thinking about buying, here’s a blog post about home warranties, like what they cover and what companies to choose from.

Speaking of your home search! If you’re wanting to see what homes are available for sale in the Northeast Florida area, which includes Jacksonville, Orange Park, Fleming Island, Middleburg, Green Cove Springs, St Johns County, and the Beaches, click the previous link.

Tuesday’s Tip: Build Credit When You Have No Credit!

February 13, 2018 by Pam Leave a Comment

Tuesday’s Tip: Build Credit When You Have No Credit!

Today’s Tuesday tip is about how you can build your credit, especially when you have no credit. Don’t you hate that? You don’t have credit, but can’t get credit in order to build credit. It’s a vicious cycle! There is a way tho and I’ll tell ya how.

Go to your bank, as most have this program. You open up a secured credit card, using your own money. Usually the minimum is $500. The bank issues you a card to use just like any credit or debit card. Go use it! Just don’t go crazy, even though it is your money. You still have to pay it back. The bank reports it to your credit, just like a normal credit card. After 6 months of paying it on time, you will start to see your score rise. Now here are some tips to optimize the positive impact to your credit:

Don’t max it out! Keep your balance below 30% of the credit limit.
You could use it for gas, then when the bill comes in, pay it off each month.
After a year of on time payments, the bank will issue you a traditional credit card. Well, at least that’s how Compass Bank does it. Check your bank for details.
Pay on time every month! Even though it is YOUR money, it’s being used to show that you can utilize credit responsibly.

Did you know that car insurance companies check your credit, and your rate is based off of your driving record and your credit? I know crazy! So, even if you weren’t planning on buying a car or house right away, having good credit affects you in many ways.

I hope this helps and you found today’s tip useful. If you’re thinking about buying, here’s a blog post about the importance of getting pre-approved, before you start your home search.

Tuesday’s Tip: Don’t Buy Anything On Credit Once You Start The House Hunting Adventure!

January 9, 2018 by Pam Leave a Comment

Tuesday’s Tip: Don’t Buy Anything On Credit Once You Start The House Hunting Adventure!

Over on my Facebook business page, Northeast Florida Life, I do a brief post on Tuesdays called #TuesdaysTips, that talks about a tiny piece of the real estate puzzle. So, I figured I’d go into a little more depth on the same topics here.

Today’s tip is about not buying anything on credit while you’re in the process of buying a house. Some will say, while you’re under contract, but you need to refrain, even while you’re just starting to look.

Here’s why: Let’s say you get pre-approved and while looking you get another credit card or buy some furniture. That has the potential to lower your score and cause your debt to income ratio to become higher, which can cause the lender to deny or re-package your loan with a higher interest rate. They see you as more of a risk. So, imagine you get pre-approved thinking you’re ahead of the game. You open up a new credit card for whatever reason. You find the house of your dreams, write an offer and it gets accepted. Yeah you!! Not so fast though…you make application and the contract gets into your lender’s hands, they run your credit again and find that you have new credit and you were already pushing the debt to income ratio to its limit. Can’t move forward or worse, that new credit card doesn’t show up until the lender does the final credit check, which is close to closing and then you’re denied. You lose the money spent on inspections and appraisal, plus the house of your dreams. That really sucks and it will knock you back a few steps, plus tick a few people off.

Now, I’m not saying that always happens, because it doesn’t. It’s possible you have a high enough score that it doesn’t affect it and your debt to income is fine or awesome. Just don’t do it and take the chance of getting into a new home. I know, I sound like a mother hen. 🙂

Here’s another one that happens a little more often. You’re on your way to closing in less than 2 weeks and you’re really getting excited. You are wanting to buy some new furniture for the new home, so you run down to the local furniture store and buy a pretty sweet living room suit on credit. You think you just saved some time and you can’t wait to close to get it moved in. The only thing tho, you didn’t realize the lender checks your credit again before closing to make sure nothing changes and it did change. And you lose your approval a week before you’re scheduled to close on a short sale home that you waited months to get short sale approval on. (I know that was a long sentence with no commas, but if you go back and read it really fast and hurried, it will sound way better!) That sucks big time! That scenario is a true story that happened to a couple in another state. Luckily for the sellers, it went under contract fairly quickly again and short sale approval was faster the 2nd time around. Always wait to get new furniture until after you close.

Have you started your home search yet? Need a good search portal that shows actual homes on the market and updates every 15 minutes? You’ve come to the right place!

Checkout the Northeast Florida Home Search which includes, Jacksonville, Orange Park, Middleburg, Fleming Island, Green Cove Springs, The Beaches, St Johns County and other surrounding areas close by:

What’s the Deal with A Home Warranty? Does it Cover My Whole House?

January 8, 2018 by Pam Leave a Comment

What’s the Deal with A Home Warranty? Does it Cover My Whole House?

No, no it does not cover your whole house. Blog post done! Ha! Kidding! It really doesn’t cover the whole house, but this post is going to touch on some of the things it does cover. Most of these are for all of Florida, but especially my areas in the Northeast Florida area.

I love bullet points, they tend to let you get down to business. So, here’s the list:

There are multiple Home Warranty Companies. I’ll provide the ones I’ve worked with in the past below.
There are different plans and upgrades for most companies.
Plumbing
HVAC Systems-This is the biggie, which can be a very expensive item to repair or replace.
Duct work
Electrical
Hot Water Heater
Kitchen Appliances
Garage Door Openers
Central Vac Systems
Attic Fans
Ceiling Fans

Mainly Optional Items:

Washer and Dryers
Pool Equipment
Septic Tank
Well Pump
Additional Refrigeration

There is a service fee for each occurrence. Usually it’s around $75, but it can vary. How it works, let’s say your HVAC stopped working. You call your home warranty company FIRST!! If you call another company before you call the home warranty company, you may be stuck with the whole bill. They will contact their preferred HVAC company, who will contact you to make the appointment. You pay the service fee. The issue gets fixed. Sometimes, the HVAC has to be replaced and you just pay the service fee. Always look into the fine print to make sure.

You can purchase this for a house that you’re buying or you can purchase it for your existing home. A seller can also purchase it when they list their home, as a little incentive to the buyer. It’s good for a year, which can renew at that point or you can cancel it.

Here are the companies I’ve had experience with in the past:

First American Home Warranty

This is their brochure listing what is covered, how much and all the fine print: First American

Old Republic Home Protection

They have two Plans: Standard Protection

Preferred Coverage

American Home Shield

They don’t have a pdf brochure, but they have their plans easily to spot: Home warranty plans

2-10 Home Buyers Warranty

No pdf brochure, but you can request a quote and see a list of items covered: Systems and appliances

I’m sure there are more companies, but these are the 4 used the most here in the Northeast Florida area. If you do choose a different one, not on the list, make sure you read the fine print and check what’s included.

If you’re a seller thinking about selling your home in the Northeast Florida area which includes Jacksonville, St Johns County, Orange Park, Middleburg, Green Cove Springs and Fleming Island and want to know what you could sell your home you in today’s market, check out What’s My Northeast Home Worth.

If you’re a buyer, check out my home search portal, that is updated every 15 minutes directly from the Northeast Florida Multiple Listing Service:

Florida Hardest Hit Down Payment Assistance in Clay County Florida

April 10, 2017 by Pam Leave a Comment

Florida Hardest Hit Down Payment Assistance in Clay County Florida

Will be back March 4 2019!!!!

This includes Orange Park, Middleburg, Fleming Island, Keystone Heights and Green Cove Springs.

Search for Homes in Clay County Florida!

So you’re wanting to buy a house and wonder of there’s any chance at all to get some help with the down payment and closing cost? You may qualify for the Florida Hardest Hit DP assistance program.

$15,000 for down payment and closing cost assistance with a 5 year deferred 2nd mortgage forgiven at a rate of 20% per year.
Must be first time home buyer; except for veterans.
FHA, VA, USDA and Conventional financing.
Combined household income cannot exceed $97,860 Combined income adds the combined annual income of all family members aged 18 or over regardless if they are on the loan or not (limit may increase if the property is in a Federally Designated Targeted area).
Purchase price cannot exceed $364,457. Higher limits available if the property is in a Federally Designated Targeted area.
DTI cannot exceed 45%.
640 middle credit score required for all borrower(s).
Interest rate typically higher than regular FHA and VA rates. Call for a quote today.
No co-signers.
Borrowers must attend an approved buyer’s education course.

(Information deemed to be correct but not guaranteed)

15k Down Payment Assistance Flyer

I want to point out the first bullet point above. Just to make it clear, ever year that goes by, 20% of the assistance you used goes away, and after 5 years it’s done. That is a pretty sweet deal! You’re probably thinking, what’s next right? The next step is to speak to a lender who is experienced in this program. Feel free to email me at pam@pamgraham.com, call or text me +1(904) 910-3516 and I can get you in touch with lenders who know this program.

Free Home Loan toolkit, detailing the home loan process from start to finish (no sign up necessary):

Your Home Loan Toolkit

In the meantime, the search for homes below is for homes in Clay County that qualify for this program:

Florida Hardest Hit Down Payment Assistance in Jacksonville Florida

January 13, 2017 by Pam Leave a Comment

Florida Hardest Hit Down Payment Assistance in Jacksonville Florida

$15,000 for down payment and closing cost assistance with a 5 year deferred 2nd mortgage forgiven at a rate of 20% per year.
Must be first time homebuyer; except for veterans.
FHA and VA financing.
Combined household income cannot exceed $69,176. for families of 1-2 or $79,552. for families
3+. Combined income adds the combined annual income of all family members aged 18 or
over regardless if they are on the loan or not (limit may increase if the property is in a Federally
Designated Targeted area).
Purchase price cannot exceed $298,192. Higher limits available if the property is in a Federally Designated Targeted area.
DTI cannot exceed 45%.
640 middle credit score required for all borrower(s).
Interest rate typically higher than regular FHA and VA rates. Call for a quote today.
No co-signers.
Borrowers must attend an approved buyer’s education course.
(Information deeded to be correct but not guaranteed)

15k Down Payment Assistance Flyer

I want to point out the first bullet point above. Just to make it clear, ever year that goes by, 20% of the assistance you used goes away, and after 5 years it’s done. That is a pretty sweet deal! You’re probably thinking, what’s next right? The next step is to speak to a lender who is experienced in this program. Feel free to email me at pam@pamgraham.com, call or text me 904-910-3516 and I can get you in touch with lenders who know this program.

In the meantime, the search for homes below is for homes that qualify for this program:

FREE List of Foreclosed & Short Sale Homes for Sale in Northeast Florida

March 17, 2016 by Pam Leave a Comment

FREE List of Foreclosed & Short Sale Homes for Sale in Northeast Florida:

Your FREE List of Up-To-Date
Foreclosed & Short Sale
Homes For Sale in Northeast Florida Sent to You!

Foreclosures & Short Sales are up to 30-50% below market value.

Your FREE List of Foreclosed & Short Sale Homes Will Include…

Detailed Property Information including
all information on the property…
Multiple Pictures of Most homes…
How to see & inspect the property…
And much more..

There are millions of homes in foreclosure and short sale that are being sold for up to 30-50% less than previous prices.

It has never been a better time to buy one of these homes. Now you can get Foreclosures sent to you before almost anyone else finds out about them.

If you are looking to get the most real estate for your money, then this list of foreclosed homes for sale is for you. Your list of all homes now in foreclosure and short sale will be sent to you along with all new ones as soon as they come on the market.

“FREE List of Foreclosed & Short Sale Homes for Sale”

Please allow 24 hours for your home listings to arrive in your inbox. If you have questions now, you can reach me at 904-910-3516 call or text.

Do I Need to do a Home Inspection When I buy a House in Northeast Florida?

April 3, 2014 by Pam Leave a Comment

Do I Need to do a Home Inspection When I buy a House in Northeast Florida?

I could really make this blog post super short, just by answering that question. The answer is no. Nope, you do not have to do a home inspection when you buy a home in Northeast Florida. Ok I’m done now. Ha! No, I won’t just leave it at that answer. 🙂

It’s your choice if you want to get one done or not. There’s no law in Florida, saying you have to have it done. When I bought my first home, we did not do a home inspection, and it turned out just fine. However! We were lucky. It could have very well turned out bad. The next house we buy, we will have an inspection done. Here is list of reasons why you should consider having one done:

Peace of mind. Although, things can still be missed during the home inspection, in most cases you catch issues when you have it done.
Most home inspectors are very knowledgeable and can give you great information on maintaining your home. Ask them lots of questions.
They can ease your mind on things, like cracks in the driveway. Most cracks are normal, but if you’re new to Florida or just never noticed before, it can cause some concerns.
Your real estate agent is not an expert in doing inspections, unless of course, they are actual licensed home inspectors. I’ve learned alot over the years, but I can’t tell you how everything works. I have no problem telling you that I’m not sure, and then asking the home inspector to explain it to you.
Even buying a brand new house, you should still have a home inspection done. Builders and their crew are human and can make mistakes. I know of a situation where there was none or inadequate installation in the top bonus room. The inspector caught it for the buyer and the builder fixed it.

Those are a few reasons and there are many more, but I hope now, this post helps you make a more educated decision on whether not you need to do a home inspection when you buy a house in Northeast Florida.

If you would like to search for homes in Northeast Florida, click that previous link. If you don’t have an agent to call your own, feel free to either shoot me an email at pam@pamgraham.com or call direct at 904-910-3516.

How Does a Real Estate Agent Get Paid?

March 21, 2014 by Pam Leave a Comment

How Does a Real Estate Agent Get Paid?

Oh no, the dreaded commission talk that many agents fear. It’s such a taboo conversation amongst ourselves, that we don’t want the public to know that we actually make……wait for it……MONEY! We do. We make money. It’s a true story. 🙂

I know it sounds funny, but we do avoid talking about it, and why? I’ve even been guilty of being squirmy about talking about it to sellers and buyers in the past, but not anymore. I’m gonna spill the beans on this tightly held and never to be talked about secret.

Here goes. The juicy details……..

I work on commission only. No salary. No hourly wage. I do not get paid, unless we get your transaction closed. That means I spend my own money for advertising a home for sale. I show homes without getting paid, unless you buy a house and it closes. If I’m working for the seller, my commission is paid at closing from the net proceeds. As a buyer’s agent, my commission is paid by the listing broker for bringing a ready, willing and able buyer to the closing table for their listing. Builders will pay a buyer’s agent and most cases, not all, a for sale by owner will pay it as well.

If you have ever bought or sold a home before, I’m sure you have seen the amount the broker and/or agent is paid, when you have seen the HUD (closing statement showing a breakdown of all costs pertaining to the transaction). I know you may think wow, that agent is loaded and rolling in the dough! Well, let me break that down a little bit as well. Most transaction involve two different real estate companies, who usually split the total commission 50/50. Not always, depends on the listing agreement. Now once that’s split up, it doesn’t all belong to the agent. That amount is split between the agent and their broker depending on their contract.

Now the agent gets their check and since they are self employed they get taxed at a higher rate, so they need to take that out and put aside. There’s advertising costs, member and MLS costs, insurance, and more, plus the same expenses as you have. Mortgage payments, utilities, kids and etc…

I’m not telling you this so you can feel sorry for me, or to cry me a river. It’s a great career and it’s my choice to be in the business. My reasons for telling you is so that you know who is paying the commission (in most cases) and to squash any misconception the public has, on the amounts they think we are paid or the misconception that we are paid too much. You never know unless you ask right?

Now that we got THAT out of the way, are you looking to buy? To sell? Both? I can help you with those. Just shoot me an email at pam@pamgraham.com or call me at 904-910-3516.

Want to check out some more blog posts? I got some for buyers and sellers.

Know the Difference: Pre-qualified or Pre-Approved for a Mortgage

March 4, 2014 by Pam Leave a Comment

Know the Difference: Pre-qualified or Pre-Approved for a Mortgage

Being pre-qualified or pre-approved for a mortgage are two different things, and one is not worth a dime.

If you call up a lender and ask them to get pre-qualified for a mortgage they may ask you the following questions:

What is your gross income?
Do you have a car payment and if so, how much?
Do you have credit cards and if so, how much?
How long have you worked at your job?

Each lender is different and may ask other questions, but that’s the gist of it. Usually, at this point if the income and debt seem to jive, you’re pre-qualified for a mortgage. Now hold up! Before you go getting excited, and jump in the car to go look for the house of your dreams, you need to actually make an appointment to meet with a lender to get pre-approved. This is where the rubber meets the road. Being pre-qualified means nothing. Anyone, can get pre-qualified, because the information isn’t verified. A home seller is not going to take your offer serious with just a pre-qualification.

If you’re not sure what lender to call, start with who you bank with. Ask your agent for recommendations. Meet with multiple lenders and compare not only interest rates, but also closing costs as well. Please, whatever you do, do not deal with a lender online. Go see them in person.

For your appointment, you need to bring your tax information, pay check stubs and bank statements. You give detailed employment history, rental history, any other proof of income and again, the list varies by lender. They will let you know everything you need to bring. They will pull your credit and verify the information you give them. They will run your information through their automated underwriting system and if all that checks out, they will issue a pre-approval saying that they have pre-approved you for a mortgage in the amount of xx, what type of mortgage and with an interest rate of x. There will be conditions of that pre-approval. For example, the house you choose has to appraise, and any lender required repairs must be made. During the closing process, they will re-check your credit and re-check that you’re still employed with the same employer, so don’t change jobs or buy anything on credit until after you close.

Now, you can call your agent up and meet with them to start looking for houses. This is where the fun begins. The home buying process can be very fun and exciting as long as you follow a system and you have an awesome real estate agent.

If you do not have an awesome real estate agent yet and you’re looking to purchase a house in the Northeast Florida area, which includes Jacksonville, Clay County and St Johns County, then shoot me an email at pam@pamgraham.com or call me direct at 904-910-3516. I can and will help you with the home buying process to make it go as smooth as possible, and enjoyable as well.

Call or Text Pam Graham: