Stark County Ohio Real Estate

Choosing a home inspector

2006-11-10T12:34:00.000-05:00

If you are buying a property, you should definitely choose to have a qualified home inspector preform a detailed home inspection. It pays to have a pair of trained eyes looking over the minute details of a home you are contemplating purchasing.

A home inspection is not meant to give the buyer a laundry list of minor cosmetic items that you are going to ask the seller to have repaired at the sellers expense. It is meant to uncover both major and minor problems that may be considered unsafe, as well as items needing immediate attention that may be costly to have repaired.

If major undisclosed defects are found in the home, you will have more clout to ask the seller to repair the defects at the sellers expense. If the defects are overly expensive and the seller will not negotiate to have them fixed, you have the right to rescind your offer to purchase based on the inspection report.

It is important that you have a professional inspector, as the seller will have a right to a copy of the inspectors report page citing the defect. Having an unqualified person such as a knowledgeable family member as your inspector will not give you the same clout to negotiate.

While interviewing inspectors that you might want to hire, here are some great questions you may want to ask before you make your final choice on who will be performing your home inspection. Click on the link on the next line.

Ten Questions You Should Ask Your Home Inspector

Thanks,
Best regards,
Jim Dvorovy

Your guarded credit information is being sold

2006-11-05T08:14:00.000-05:00

Do you recall the proverbial story about the wolf guarding the henhouse?

Here is an excerpt from a newsletter provided by Bill James III, President/CEO of Residential Bancorp. Bill relates that the companies that collect our credit information are actually selling our credit information to entities that may not be looking out for our best interest. Read the excerpt between the dashed lines:
--------------------------------------------------------

ALERT: YOUR NAME IS BEING SOLD — TAKE ACTION NOW!

Having credit checked is an important and necessary step in the home buying process, as well as something that is done on a regular basis for any number of reasons — increasing a credit line on your Visa, applying for insurance, or buying a car. But very few people realize that each time their credit is checked, the "inquiry data" that the credit bureaus (Equifax, TransUnion, Innovis or Experian) has on file has now become a commodity. This information is being sold by the credit bureaus to other lenders...and also to companies that sell and resell the same names and personal information.

That's right — the credit bureaus have found a way to increase their revenues at your expense...and without your permission. These "inquiry leads" include name, address, phone numbers (including unlisted), credit score, current debt and debt history, property information, age, gender and estimated income. They are selling your personal, confidential information to competing creditors...and making millions. Your privacy is being sold, not just once, but over and over again.

And lenders that purchase these leads at a premium will then do everything they can to recoup their investment and turn a hefty profit. Super sneaky bait and switch tactics are being used to lure clients away from their reputable lender. Clients have even been called by disreputable lenders and told that the lender they had been speaking to previously "passed on" the information to them, because they knew that they'd be able to offer much better interest rates and terms. Ouch!

The good news is that you can make it stop, right away. And pass this information on to everyone you know — your friends, family members, neighbors and coworkers.
The consumer credit reporting industry has provided a way to "opt out" and remove your name from these lists. You can contact them by phone at 1-888-567-8688 or online at http://www.optoutprescreen.com/. You must opt out at least 48 hours prior to having your credit checked to make sure it is processed in time. You can choose a five year or lifetime option, and the lifetime option does require a signed form. If a credit report needs to be run prior to the 48 hour waiting period — at least you are aware and informed, and can be on the lookout for suspicious phone calls or mailers from someone who has purchased your data.
BONUS: Opting out will also protect you from "pre-approved credit offers" arriving via mail...one of the leading causes of identity theft in the US.

You certainly have the right to shop for the best professional to meet your lending needs — but this should be done when and how YOU choose, not being done without your consent or permission. Looking around should be on your terms, not being done as a sneak attack, because they think you won't know better. And unfortunately, these unsolicited marketing tactics are a nuisance and intrusive, but quite legal.

So take your privacy back. Take five minutes right now — opt out, and pass it on. Refuse to be a part of this system.

(end of excerpt)
----------------------------------------------------------

Thanks,
Best regards,
Jim Dvorovy

Get A Clue!

2006-10-27T12:52:00.000-05:00

Every now and then, a topic needs to be repeated, if only because the original post is either buried deeply into the archives, or new information is found that covers the material much more thoroughly.

I know that I didn't even "have a CLUE" when I bought my last house. I thought everything went fine during the transaction of purhcasing my present home. About a month after moving in, I received a letter from my insurance company stating that my homeowners insurance was being canceled in 30 days! There was a list of items the insurance company cited such as the property needing a new roof, rain spouting, and front steps. Mind you, this was "my" favorite national name insurance company through which I had exclusively used for all my family's insurance needs for over 25 years! My mind went numb. It was my first ever rejection by an insurance carrier, I confess to a sense of hurt pride that despite my long loyalty and high monthly payments to them, they were canceling me.

While frantically attempting to obtain a new policy, my hopes were dashed repeatedly by several large name insurers. It seems that if one national carrier cancels your policy, none of the others are interested in writing a policy for you either. Finally I was able to obtain a homeowners policy through an independent insurer. My new agent related to me that the house that I had bought had evidently had some prior insurance claims turned in by previous owners, making my property appear to be a "nuisance property". I had unknowingly ecome the victim of the CLUE exchange list.

CLUE stands for Comprehensive Loss Underwriters Exhange.

Had I of known about the insurance industry's "CLUE" report, perhaps I could have sidestepped a lot of grief. The industry keeps a file on loss claims filed against a property, and new owners could easily become the victim of purchasing a home that has had and may still have some "issues".

Read an excellent in-depth article by Terry Watson that was featured in the National Association of Realtors magazine by clicking on the link immediately below:

GET A CLUE

Thanks,
Best regards,
Jim Dvorovy
330-685-4615

Low credit scores = higher PMI

2006-10-19T11:03:00.000-05:00

Low credit scores can have a huge impact on your monthly mortgage payment in the form of higher Private Mortgage Insurance (PMI) payments.

If you are comtemplating the purchase of a house, it pays over and over to guard your credit score, and keep it as high as possible.

Clink on the link below to read an excellant article that spells out in detail how a low credit score affects your monthly mortgage payment in other ways besides higher interest payments,

Low credit scores mean high PMI rates

Thanks, and best regards,
Jim Dvorovy
330-685-4615

Thinking Of Buying A Condo?

2006-10-06T14:53:00.000-05:00

If you are thinking of buying a condominium in Stark County, there are certain things you should investigate before making your offer to purchase. Five quick questions you may want to ask:

1) Is the condo association professionally managed?
2) How do the monthly condo fees compare with nearby condo complexes?
3) What is the financial condition of the homeowner's association?
4) Are there any special contracts or leases or unusual rules?
5) Ask current residents what they most like and dislike about living there.

To read the entire article written by Robert Bruss, click on the link below:

Five Questions You Should Ask Before Buying A Condo

Thanks,
Best regards,
Jim Dvorovy

How much should I offer??

2006-09-14T13:22:00.000-05:00

It's only natural for buyers to want to negotiate on the sale price in order to feel they have received the highest value for their purchasing dollars. The negotiations during a purchase agreement can be especially daunting for first time home buyers, as they have often gotten advice from parents and other respected sources to "never make a full price offer", "you can always come up".

Just what is a proper price to offer on a property? I read a great report and will post a link to it here. Before posting the link, may I offer any buyer to walk into the office on any day, and ask me or another agent to pull up a report of all recently sold properties in whatever location in which they have an interest. There are always a few exceptions to the rule, of course, but most often one will find results very similar to the percentages listed by the author in the article you will be reading. Click on the link in the next line:

Lowballing in a cool housing market

Thanks,
Best regards,
Jim Dvorovy

Home Selling from A to C (Acceptance to Closing)

2006-09-11T16:26:00.000-05:00

There is a super article posted on the National Association of Realtors website that lists some of the pitfalls that may cause a delay in the closing of a transaction. The article gives a great synopsis of the transactional process from the perspective of both the buyer and the seller. If it would be of interest to know what is taking place each step of the way, as well as the length of delay time caused by typical "snags", please browse the article:

http://www.realtor.org/realtororg.nsf/pages/post_contract_pitfalls

Thanks,
Best regards,
Jim Dvorovy

Should You Get A Home Warranty?

2006-06-06T21:26:00.000-05:00

I could never say it better than one of my recent buyers could:

Uh... yeahhHHHHH!

Let me give you at least three good reasons why you should seriously consider an:

HSA Home Warranty.

Because of new Federal Legislation regarding Energy Efficiency Requirements for Air Conditioners and Heat Pumps, replacing any of these units with like kind will soon be impossible due to unavailability of the "old" parts.

New Federal Regulations regarding 13 SEER Click Here

Reason 1 - Your home has a furnace! Those critters seem to have a knack for not wanting to run on a cold winter nite. Funny how they never seem to break down in the summer? Any ways... a typical repair bill for a heating system is $95 - $600*. To replace a faulty one would cost anywhere from $1325 - $3700.

Everyone that is pretty fair in math, please raise their hands....

Quiz Question 1: What is your potential savings should your heating system break down?

Reason 2 - Your home has a central air unit! These critters seem to have a similar knack for breaking down during the hot summer months. Under HSA's new product warranty, when an air conditioner or heat pump fails and it is not possible to repair it, and/or they no longer have access to like-SEER/HSPF equipment, HSA will replace the broken down system with equipment that meets 13 SEER.7.7 HSPF requirements. PLUS... the solution will utilize the new TX valve or replacing the evaporator coil/air handler and line set to match the SEER/HSPF rating of the new equipment. Typical repair costs from $200 - $1,100 with replacement costs $1,475 - $4,200.

Reason 3 - Your home has a gas water heater! New government standards that have recently taken effect are designed to make water heaters safer for homeowners by reducing the likelyhood of explosions. (The changes have helped prevent gas or other toxic spills near a water heater from igniting, causing fires in the home. Under new designs, if flammable combustion vapors from a nearby spill should enter the sealed combustion chamber and ignite, the fire can't go backwards and ignite the rest of the vapors just outside of the heater.) Typical repair costs $85 - $210, with replacement costs $420 - $705.

Need still more reasons?

Visit HSA Home Warranty site and see other typical repair costs for plumbing, refrigerators, and oven/ranges.

Thanks,

Best regards,Jim Dvorovy

Cell 330-685-4615

Septic Systems will cost how much??

2006-05-15T18:46:00.000-05:00

Oh my!! Septic system costs to increase dramatically in 2007!

The May, 2006 hard copy of Ohio Realtor magazine has an astounding article on the front page titled: "Taft Vetoes delay of new, stringent septic system rules". The article published by Carl Horst relates that the new regulations for Ohio septic systems will require on- site treatment of waste. Quoting a sentence near the end of the article:

"The rules will increase the cost for property owners installing new home systems upwards of $25,000..."

Gasp!! Wonder what the total cost is going to be??

To view the new requirements, visit and browse the article titled:

Ohio Administrative Code
Chapter 3701-29Household Sewage Disposal Systems - Effective through 12/31/2006Sewage Treatment Systems - Effective beginning 1/1/2007
(View pdf. files available for each component of the proposed new systems at) :

http://www.odh.ohio.gov/rules/final/f3701-29.aspx

Best regards,
Jim Dvorovy

"SEER" Central Air - higher prices

2006-05-13T12:29:00.000-05:00

Get ready for the "new generation" air conditioning units, and get ready for the term "SEER".

Out with the old, and in with the new, as time marches on. If the house you own or are considering owning has central air, get ready for the new terminology and higher prices that will go along with it when it comes time to repair or replace the units.

The energy efficiency of a central air conditioner is measured in a unit called SEER - seasonal energy efficiency ratio. The SEER is the cooling output divided by the power consumption, with climate and other variables factored in.

The higher the SEER, the better - a rating of 10 is considered the minimum for new systems.

Your older system might have a SEER of 7 or 8 - or even less. The SEER will be listed prominently on the yellow-and-black EnergyGuide.

During a recent seminar put on by a professional home inspector, the statement was made that the old units will no longer be replaced with like kind, as they will be obsolete. The inspector went on to relate that the newer higher rating units will cost more, so be sure to factor in higher dollar amounts for your central air updates into your budget.

Real Estate Blogs

2006-04-11T09:41:00.000-05:00

Real estate blogs are becoming increasingly popular. Perhaps some readers may find the following site very useful:

Real Estate Blogs Directory

Directory of real estate blogs and blogs of industries affiliated with and serving the real estate industry.

Thanks,
Best regards,
Jim Dvorovy

Time Frame For The Mortgage Loan Process

2006-04-11T09:33:00.000-05:00

The time period from acceptance of an offer to actually taking possession of their new home is an emotionally exciting one, especially for first time home buyers.

Information is being collected and will be added to this post very shortly. Some of the material needed has yet to be obtained. In order to keep this article in close proximity to the next one that deals with the transaction process from the aspect of the title company, this post will be published and then amended soon.

Well... here it is May 14th, 2006, and I still have not been able to get an answer. I asked for the information from two local mortgage loan originators, and each seem too busy to pencil down a time frame for us. What I have found is this:

When an offer to purchase is made, the realtor working with the buyer usually puts down a date that stipulates something to the effect: ".... the transaction will close on or before ______ (date)". Realtors are urged to allow at least 30 days by some mortgage originators, as that will allow time for loan application, requested credit documents to be obtained and presented, title work to be completed, etc. If the loan involves Ameridream or VA lending programs, we are often advised to allow a little more time, and write in 45 days forward as a closing date.

What I have found, is that the "on or before" clause seems to be loosely interpreted as "on", and some parties work towards that specific date as the seemingly official target date.

In is important to note that often times mortgage loan originators can and do perform in a very short period of time, sometimes in as little as 14 days!

Though not advisable, the language "time is of the essence" can be inserted into the purchase offer, which stipulates that the transaction must take place by a certain date. Though this clause is a sometimes very necessary clause for commercial real estate transactions, it is best left out of residential purchase offers.

A comfortable rule of thumb seems to be 30 days for conventional loan processes, and about 45 days for Ameridream and some FHA and VA.

Thanks,
Best regards,
Jim Dvorovy

Sequence Of A Residential Real Estate Transaction - From A Title Agency

2006-03-28T12:27:00.000-05:00

One of my buyers related that he would have enjoyed knowing in advance the sequence and timeline of events that would take place between the acceptance of an offer up to the date of closing and possession.

Chris Chipps, Sales Representative, Voice Mail (330)-966-4027 from Real Estate Title Service Corporation has graciously provided me with a very comprehensive print out of the events that take place from several perspectives. First through the interests of the BUYER, next through the interests of the SELLER, and lastly through the interests of the LENDER.

I'll see if Chris will give me permission to provide the complete article to anyone who asks. For now, I will only post the information from the perspective of the buyer. Chris related to me that the TIME factor is dictated mostly by the lender. The entire process seems to take about 2 to 3 weeks for an all cash transaction, and anywhere from 30 to 45 days when loans are involved.

It is important to know that the title company can do title work very quickly, in a very few days, in most instances. The title company is at the mercy of the lender. It is also important to know that the lender is at the mercy of the borrower, and can also do its work in a very few days if the borrower has good credit. The quicker the lender gets all the documents it needs, the quicker the title company can close.

You'll find the information provided by Chris between the dashed lines below:

=======================================================
1. BUYER
A) Offer and Acceptance
1. Buyer and seller to decide which title company to use.
2. Homeowners inspection ordered and completed.
3. Lender's names and contact numbers proviede to title company.
4. Realtor forwards copy of contract and any addendums.
5. Earnest money check deposited - escrow agent notified.

B) Loan Application
1. Upon approval of loan, title examination started (unless pre-start was ordered)
2. Sight survey ordered.
3. Loan approved, with or without conditions (Buyer: ie payoff debt, co-sign, tax returns, repairs. Seller: ie appraisal repairs, city point of sale, encroachments, chain of title not in line.
4. Commitment issued: (buyers decide how to take title).

C) Escrow Opened (either lender, attorney, title agency)
1. Contracts, addendums, earnest money letter deposited with escrow agent
2. Escrow agent coordinates terms and conditions of the purchase agreement - at arms length - between all parties.
3. If all conditions are met, escrow agent will have buyers execute all documents and deposit necessary funds including property insurance binder or proof of payment. Title agency will deposit a title commitment stating coverage, exceptions, and exclusions (exhibit available)
3a. Preliminary H.U.D. settlement statement issued
3b. Lender notifies escrow agent they are ready to file/close
3b. Closing takes place, either round table or non round table
4. Escrow agent will instruct title company to take the executed documents to court house for filing (recordation)
5. Escrow agent disburses funds to sellers, buyers, real estate firms if buyers bank has funded.
5a. Final H.U.D. settlement statement issued to buyers and sellers - final pro-rations based on actual filing date.
6. Escrow closed. (Any conditions or contract stipulations not completed will be considered).
Owner's title policy mailed from underwriter to buyers.
=======================================================

Please email a request for the entire article as relates to the perspective from the seller and the lender to:

JDvorovy@CutlerHomes.com

Thanks,
Jim Dvorovy

Mortgage Rates Dip For Second Week In A Row

2006-03-26T22:27:00.000-05:00

McLEAN, VA -- Freddie Mac released the results of its Primary Mortgage Market SurveySM in which the 30-year fixed-rate mortgage (FRM) averaged 6.32 percent, with an average 0.6 point, for the week ending March 23, 2006, down from last week’s average of 6.34 percent. Last year at this time, the 30-year FRM averaged 6.01 percent.

Read the rest of the article...

Note from Jim: Interest rates are still very favorable!

Who is my REALTOR really working for?

2006-03-26T10:07:00.000-05:00

Why "Agency" may be the most important word in real estate today.

Whether buying or selling Stark County real estate, understanding "Agency" is the first step towards success for your real estate transaction. Your transaction is one of the most important financial decisions that you will ever undertake. It is my goal to help you to fully understand and be aware of your rights to be represented, as well as what your options are and what choices you can make.

"Agency" in real estate refers to the nature of the fiduciary responsibility that exists between you and the real estate professional you choose to work with. Having a complete understanding of the nature of this relationship is the first step to working together to achieve your real estate goals.

It's about loyalty and responsibility...

Tradtionally, real estate professionals worked mostly as agents of the seller, not the buyer. Their loyalties and responsibilities rested with those of the seller (who agreed to pay the brokerage fee, i.e. hired the agent). Often the buyer had no idea of the true nature of this relationship.

Are you a buyer? You now have an option...

Buyers may now retain a real a real estate professional to represent their financial and legal interests when it comes to the purchase of a home. It's called a "Buyers Agent". Buyer's need to fully understand this very complex subject of agency. It could possibly mean saving tens of thousands of dollars in their own pocket over the life of a 30 year term mortgage loan.

If you have any questions about buyers agency in Ohio, please don't hestitate to ask. For more information on agency law in Ohio, you can contact the Ohio Division of Real Estate & Professional Licensing at (614) 466-4100, or on their website www.com.state.oh.us.

I've put together a very short slide show graphical program that may be of help as a beginning to understanding agency relationships. When we get together we can talk about agency more fully.

Click to view:

http://www.visualtour.com/shownp.asp?T=551205

I would appreciate hearing your comments either here or by private email.

JDvorovy@CutlerHomes.com

Thanks, and best regards,
Jim Dvorovy

You Do Have Options!

2006-03-24T17:13:00.000-05:00

The Ohio Department of Commerce Real Estate Division wants all consumers to know that they have options and choices they can make when it comes to being represented in their transaction while buying and selling real estate.

Since 1997, Ohio real estate law has been amended to allow buyers to be fully represented in their transaction from a financial and legal aspect. Not knowing about agency representation could cost consumers perhaps tens of thousands of dollars over the life of a 30 year mortgage.

Practitioners Fall Short on Disclosure(March 21, 2006) --

Only 30 percent of home buyers were given representation disclosures last year when they met with their real estate professional for the first time, according to the NATIONAL ASSOCIATION OF REALTORS®, despite the fact that state law typically requires practitioners to provide such documentation at the initial meeting.

NAR also reports that close to 50 percent of first-time buyers were not given disclosures at all or had no idea whether they had received one.

Read the rest of the article:

http://www.realtor.org/RMODaily.nsf/pages/News2006032101?OpenDocument

Why Is Good Credit Imperative?

2006-03-24T16:44:00.000-05:00

Stark Countians have a very unusual real estate market at the present time. It is a sad note that Ohio now leads the nation in foreclosures. Unfortunately, our residents in both Stark County as well as many parts of Ohio have seen dwindling job opportunities and smaller paychecks. The result is many of us are now facing credit problems. If readers will take a few minutes and read the next three posts all having to do with credit scoring and credit score improvement, I'm sure they will feel much more informed about an all important matter.

Harry Krause, manager of All Credit Mortgage Bancorp, is authoring some super duper articles about credit. You will find Harry's two articles sandwiched around still another highly informative article by Christine Whipple.

Harry Krause, Manager
All Credit Mortgage Bancorp
Tel: (330) 759-9200
Email: harrymkrause@yahoo.com

--------------------------------------------------------------------------------

Why is your credit important?

The question really is, "Why is "Good" Credit Imperative?"

Brought to you by Harry Krause

Good credit is imperative because it is your golden ticket to financial freedom for right NOW and it prepares the foundation for financial security LATER. Isn't that what we all seek?
In planning for tomorrow by improving your situation today, you can eliminate the risk of limited financial security for your retirement years. You don't want to work forever, and you shouldn't have to. You can take immediate action that will enable you to set yourself up for a more secure future by simply being wiser about how you manage your credit, your debts and your finances.

So what is the single first step we can take toward planning for a more secure future and retirement? It begins with ensuring that we put ourselves in a position in which we derive the very best value from every financial commitment we make. The best value means NOT spending hundreds or thousands of dollars on high interest rates for credit cards, auto loans and mortgages. You can literally save hundreds of dollars each and every month, from this day forward, by simply achieving and maintaining a credit score in the 700's.

Take for instance a $300,000 30-year fixed home loan. Today, if your credit scores are below 700, you could be paying an additional $659 a month in nothing but interest. That is what the price of less than great credit costs you-an extra $7,908 a year, and a whopping $237,138 over the life of the loan. Wouldn't you rather put that money into your retirement nest egg?

So, now we know that less than perfect credit costs us huge sums of money, let's look at how we can position ourselves to get the best value from our financial commitments? Simple. We make sure that our Credit Scores are in the 700's at all times.

A quick education on the credit score.

Here's a little primer on how credit scores evolved. Developed in the 1950's by Fair Isaac & Co., credit scores hit mainstream use in the 1980's when three major credit bureaus, Experian, Equifax and TransUnion negotiated an agreement to create an objective and fair scoring system that would analyze all of your data, compare it with the way thousands of people pay their bills, and come up with a three digit number between 350 and 850 that indicates whether or not you are a good credit risk. As you probably guessed, the higher the number, the better your chances are of getting the loan at the best interest rate.

Today, credit scores are the No. 1 piece of data on which people are judged to determine whether or not they get approved for loans and how much interest they will pay for those loans. The good news is loan approval now only takes a few minutes. The bad news is that the credit score is now becoming widely used by not only the lending industry, but also by employers, utility companies, insurance companies and cell phone companies, and the list is growing every day.

A good score opens doors that will lead to abundant opportunities both for now and for a more secure future, and by having a complete understanding of what makes up a good score, you can start right now on the path to a higher credit score and a better financial life.
Some facts you should know.

What Is a "Good" Credit Score?

Scores generally range between 350 and 850. A score of 720 or better is considered "Very Good" credit.

Why do the scores from the three credit bureaus vary?

The three major credit bureaus, Experian, Equifax and TransUnion are for profit businesses, not government agencies. Their main business is collecting data about YOU from creditors and then reselling that data to lenders, employers, insurance companies, utility companies, and most recently to YOU, the consumer. Since these three companies are competitors, and DO NOT share data with one another, it is very common that the data they house in your file will differ because not all creditors report to all three bureaus. That explains the variance in the scores as each line item affects the score either up or down.

How many scores do I really have?

When you go to apply for a loan, the scores the lender will pull will not be the same scores that you would receive from the bureaus. The reason for this is that lenders DO NOT buy their scores directly from the bureaus, but instead take the DATA ONLY from each bureau, enter it into their own scoring software and calculate their own scores based on the criteria they feel better evaluates whether or not you will be a good credit risk for their program. So all lenders calculate your scores using the same data from the three bureaus, but all lenders DO NOT use the same software to evaluate that data.

The potential for varying scores is great. You want to properly manage your credit to ensure that your scores are favorable under all scoring software models.

Do lenders use all three scores?

Mortgage lenders use the middle of the three scores. All other creditors can use any one of the three. That is why it is important to keep all three scores maintained.

How fast can your credit score change?

Your credit score can change whenever your credit report changes. And the good news is that once it changes, there is no memory of yesterday's score in the system. You don't have to worry about looking back as you move forward with improving your credit. Just remember, negative items will lower your score fast, but improving your score takes time. That is why it is important to check your scores all the time so that you will be prepared for the next opportunity.

What Goes Into Your Score?

There are five factors that make up your credit score, and each factor weighs differently on your score. Here's the breakdown:

35% of your score is based on Payment History: The biggest chunk of your credit score, payment history tells lenders how you have been paying your bills. Late payments, collections, past due accounts, and public records such as bankruptcies can seriously hurt your score. It is very important to not incur late payments on Mortgage Accounts. One 30-day late can cost you 50-75 points.

30% of the score is based on Amounts Owed: The second biggest factor affecting your credit score, this factor takes into account how much is owed on all your accounts, how many accounts you have that carry a balance, and what percentage of your available credit are you using. Keep credit card balances under 50% of the available limit at all times, and when preparing to make a large purchase, bring those balances down to under 30% at least 3 months before applying for the loan.

10% of the score is based on New Credit: This factor includes the number of recently opened accounts, the number of credit inquiries, and the time since each account was opened. This portion of the score also looks at how often you apply for credit. It is best when applying for a mortgage that you do not open or apply for new credit accounts. When shopping for a new mortgage or auto loan, it pays to plan ahead so that you do all of your shopping within a focused period of time. You can have your credit report pulled as many times as you want within a 14-day period when shopping for a mortgage or auto loan and it will only count as ONE hard inquiry.

15% of the score is based on Length of Credit History: This factor scores you on how long you have had credit, the time since you opened an account and the time since recent account activity. While applying for a mortgage, consumers will want to leave open accounts they have had for a long time as it will help boost this portion of the score.

10% of the score is based on Types of Credit Used: A mix of credit is the best way to develop a good score. The most important consideration is to be picky about the type of credit you apply for because that will really help your score. For instance, to the scoring system, third party financed credit cards (i.e. department store credit cards) are considered to be particularly low quality credit as the holder of such cards can appear desperate for credit. However, there is one exception to this rule, and that is that the scoring system considers Sears credit cards as a positive.

What Is Not In Your Score?

Your race, color, religion, national origin, sex and marital status, age, salary, occupation, title, employment history, where you live, interest rates, child/family support obligations, rental agreements, soft inquiries, whether or not you are involved in a credit counseling program.

Can I Improve My Score?

Yes, there are specific and strategic steps you can take right now to start repairing your credit problems.
Start with the basics. Order all three of your credit reports and all three of your credit scores. You are entitled under the law to a free copy of your credit report-from all three credit bureaus-each year when you order it from Annual Credit Report Request Service. To order, visit www.annualcreditreport.com, call toll-free 877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P. O. Box 105281, Atlanta, GA 30348-5281. You will have to pay an additional fee for the credit score from each bureau. Scan your report for any errors. Is there an account on there that you didn't apply for? Is there a company reporting a debt that is inaccurate? Are all of your credit card limits reporting? Are your balances up-to-date? Are your name, birth date and Social Security Number correct? If there are any errors on your report, no matter how small, they can lead to big problems and inhibit you from obtaining credit and even keep you from getting the interest rate you deserve on your mortgage or refinance.

Start improving what you can immediately. Late payments and delinquent accounts will affect your score negatively, so take care of them-the sooner, the better. If you have a good relationship with your creditor, call them to see if they'll work with you on removing a late payment. They do it all the time. If you have past due accounts, call your creditors to see if you can negotiate a better interest rate, lower payments or make other arrangements to pay off your debt sooner. Also, don't carry high balances on your credit cards. If you carry more than 30% of your limit every month, this reflects negatively in your score. Don't charge what you can't pay off within 90 days, and don't max out your cards.

Disputing errors on your report. Errors can appear on your credit report. These can be human error in reporting information from a creditor or one of the credit bureaus. They could even be unauthorized accounts set up in your name by an identity thief. Before you apply for a loan, you should verify the information in your credit report. If you find errors, you should correct them immediately. Here are the rules in sending dispute letters to the credit bureaus:
Rule 1: Make sure that you only send the letter to the bureau(s) that is reporting the derogatory information. Not all creditors report to all bureaus. If you send a dispute letter to one of the three bureaus that is NOT reporting the information, you take the risk of having the derogatory information added to that bureau, and your score will go down.
Rule 2: Make sure that you send everything certified so that you can prove delivery.
Rule 3: Include copies of any supporting documentation you may have to support your claim.
Rule 4: Keeping a log of activities is very important for successful credit repair. Click Here for an example of a log you can use.
Rule 5: Mail disputes to bureaus at their different addresses. Each bureau has several addresses. If your first dispute comes back without change, send it to another address for that bureau. Click Here to print a list of credit bureau addresses.

If the credit challenges are too much. If you feel that the credit challenges you are facing are too much, or if you don't have the time or stamina to do the homework necessary to get the ball rolling, then it's time to consider using a professional service to help you reach your goals. Credit Resource Corp. is a consulting firm that primarily works with consumers who are in the process of purchasing a new home or refinancing their existing loan. If you decide this is the path you would like to take, give me a call and I will set up a free credit consultation for you. Feel free to visit their website at http://www.creditresourcecorp.com/ for some great tips on how to maintain and manage a good credit score.

In Conclusion

Your credit score is so important to your current financial well-being and the stability of your financial future. In fact, your credit score is really the key that can either open doors for you or lock them shut for several years. I am very committed to my effort to help you learn more about both the importance of the score as well as repairing, improving and maintaining your credit score. I am dedicating the next five monthly newsletters to in-depth descriptions of the 5 factors that affect your credit and to show you how you can take charge of those factors to get a better credit score and keep it. Until then.

All Credit Mortgage Bancorp
212 Churchill
Youngstown, OH 44505
Tel:(330) 759-9200 Fax: (330) 759-4399
http://www.allcreditmortgage.org/

Credit Score Truths and Myths

2006-03-18T08:53:00.000-05:00

I hope all of my readers will take a few minutes to read this article in its entirety, I really don't think anyone could explain credit scoring any better!

Credit Score Truths and Myths by Christina Whipple in San Antonio Real Estate

Your credit score is the single biggest factor in getting a new home loan. If your score is above 720, you can possibly qualify for a $1 million home with very little money down. If your score is below 500 and you have $1 million in the bank, you may have trouble qualifying for this exact same home. Your interest rate will certainly be different.

Credit scores are central to the loan process. Nearly every lender uses them. The better your credit, the lower the risk to the bank, the lower your interest rate.

Most lenders use your FICO score to determine whether or not you qualify for a home. It's such an important issue that you and your clients should understand the basics of the credit reporting system and the many myths surrounding it.

Credit scores give lenders a fast, objective and impartial snapshot of a person's credit risk based on their credit history.

That's why lenders use FICO credit scores when making credit decisions. The higher the individual's score, the lower the risk to lenders when extending new credit to that person. Its fast, easy, and, usually, effective.

Continue reading "Credit Score Truths and Myths"

Do You Know What Your Credit Score Means?

2006-03-17T13:34:00.000-05:00

I just recently received a super article about credit scoring from Harry Krause, a Mortgage Loan Originator from All Credit Mortgage Bancorp

Harry nailed the material so succintly that I immediately called and received his permission to post it here:

Topic: Your Credit Score Demystified

Brought to you by Harry Krause

Why It Matters: Your credit score is what lenders use to determine whether or not to give you a loan or a line of credit. Everyone should be aware of their score, but it is also important to know how your score is determined. There are also some basic things everyone should do to achieve and maintain good credit.

What You Need to Know:

What is the credit score range? Generally, scores range between 350 and 850.

What is a good credit score? Usually a score of 720 or higher is best.

What makes up a FICO, or credit, score? The breakdown of a FICO score is as follows:
35%-Payment history
30%-Amounts owed
15%-Length of credit history
10%-Types of credit
10%-New credit

Should a person pay off their debt? If you are pursuing a loan, then you should pay off any unsecured, or credit card debt.

How many credit cards should a person have? New credit users should have no more than two to three. Seasoned credit users with a good history can have anywhere from 5-7 and be safe, although we don't recommend this. Opening too many accounts over a short period of time red flags your file.

What balance should I carry on my credit cards to maximize my credit score? You should have a very low or zero balance on your credit cards. If you do carry a balance, it should be no more than 30% of the card's limit.

Should I close any of my credit cards? It may seem like a good idea to open all credit cards offered to you. But creditors look at your potential for debt when considering you for credit. However, once the account is open, the damage is done. Closing credit card accounts will bring DOWN your credit score. When and if you do close credit card accounts, close the newest ones with the lowest limits first.

How do inquiries affect your credit score? An inquiry can affect your score anywhere from 2 to 30+ points, depending on other factors in the report. But only inquiries you make for new credit affect your score.

Is your FICO score affected if you run a personal credit report? No. Personal credit checks, as well as credit inquires by potential employers or businesses who want to offer you goods appear on your report as inquiries, but do not affect your score.

End of article.

Thanks,
Best regards,
Jim Dvorovy

Radon In Stark County

2006-03-10T14:24:00.000-05:00

Radon! All consumers should be knowledgeable and concerned about radon gas. Whether buying or selling and even just ling in a home in Stark County, we should know what it is, what it does, and how to remove it from our homes.

Michelle McDonald, owner of A-Z Radon Services here in Stark County, tells me that all homes, whether old or new, should be tested for radon gas. (Please spend a few minutes at A-Z Radon Services website for some very specific information about radon as pertains to our area here in Stark County.) Type in your ZIP CODE in the special zip code search area to see the results of prior test reports for your area of Stark County. There are some dynamite links on this site to some super material!

She went on to say that as many as 75% of the Stark County homes that are tested for radon have a level of radon gas in high concentration levels that should be mitigated!

Here is a link to realtor.org where you can find lots of information about radon.

Though I haven't found a Field Guide on my NAR site, you can type in "radon gas", and the search will return many pages of reference material.

Thank, best regards,

Jim Dvorovy

Mold Feeds On Wood, Paper, And Cardboard

2006-03-08T23:09:00.000-05:00

During a recent seminar put on by a professional home inspector, the inspector told the audience that"... mold feeds on paper and cardboard". He stated emphatically that:"... we do the wrong things when we store cardboard boxes full of our possessions in basements, garages, crawl spaces, and attics". "You can go a long way towards eliminating mold by removing all these food sources for mold," he told the listeners.

hhmmmmm..... makes sense...... at least to me.

Fast forward to today... at the dentists office. While I was browsing a home remodeling magazine, I saw a great advertisment by Georgia Pacific along the same topic idea. Georgia Pacific is marketing a "paperless drywall". Their claim is that the product will not be a food source for mold. Makes one wonder why didn't someone think of it before? Genius!

Long ago manufacturers made a specific drywall for high moisture areas such as bathrooms and showers, as well as a below grade (i.e. basements) drywall. Now we have still another improvement in the product, technology marches on.

Because it was a copyrighted ad, allow me to post a link so that you will be able to see the new product as the advertiser intended:

http://www.gp.com/build/product.aspx?pname=DensArmor%c2%ae+Plus+Interior+Wallboard&pid=4659&hierarchy=pc

Thanks,
Best regards,
Jim Dvorovy

Mold

2006-03-08T22:13:00.000-05:00

Mold... Ugh! Sometimes I find myself showing foreclosed properties. A lot of those properties are in a state of distress, and have black mold on the basement walls. Some of the spots are very large in diameter, the size of a grapefruit or even larger, the size of a basketball. Generally the properties with mold have had the electricity turned off, the water lines have been drained, the plumbing winterized, and the heat turned off. With no dehumidifier to control the dampness in the basement, an environment that encourages mold growth is present.

For some reason, many first time buyers seem to have watched too many TV shows, and believe they are going to make a killing by buying foreclosures. The plan is apparently to buy these distressed properties for literally pennies on the dollar. The second part of the plan is to fix the properties up with a little paint, and then to sell them at a handsome profit. Good plan! (Was it Shakespeare who said "The best laid plans of mice and men.....")?

Thank the Lord for the fact that women and children are much more sensitive to the sickening smell of even a light amount of mold. Why? As it turns out, the men have dollar signs in their eyes, and somehow the hopefulness of a quick and tidy profit seems to negate their sense of smell. After a few minutes, (sometimes even seconds) in the basements of these houses, the wives are generally telling the husbands "We're NOT going to buy THIS house". End of showing appointment, let's lock up and get out of here pronto!. (I like their thinking, as it saves MY own health. There have been afternoons when the smell of mold would linger in my sinuses for hours after leaving the property. It can be nauseating to say the least.)

Not all molds are black. Not all molds are as sickening and hazardous to our health. Every property has mold. Mold spores are here, there, everywhere, and are waiting for conditions to be just right to allow the mold to grow.

I remember when my daughter had a science class homework project for school. It went like this, and you can try it yourself for an eye opening experiment: Take two slices of fresh bread. Lightly drag one of the slices over the top of the refrigerator, enabling it to collect whatever dust is there at the moment. Place that slice on the kitchen counter, "dust side" up. Place the other clean slice of bread about six inches away from the "dusty" slice. Allow them sit undisturbed for 2 to 3 days and observe what happens. Ugh!

Here are some GREAT reading resources about mold:

http://www.realtor.org/LibWeb.nsf/pages/fg711

Do you have any experiences to share with our readers about mold? I would appreciate hearing about them in our "Comments" section. Or by private email.

JDvorovy@CutlerHomes.com

Your private email to me will be kept strictly confidential, your email address will not be shared, nor cause spam to be generated back to you.

Thanks,
Best regards,
Jim Dvorovy

Negotiation

2006-03-07T19:57:00.000-05:00

Whether we are selling or buying, it is of utmost importance that we know how to negotiate. We practice negotiation every day in every way while interacting with family members, loved ones, co-workers, and even strangers.

Can we ever be too skilled in the art of negotiating?

Here is a link to an NAR Field Guide To Negotiation:

http://www.realtor.org/libweb.nsf/pages/fg223

Thanks, best regards,

Jim Dvorovy

Feng Shui

2006-03-07T19:19:00.000-05:00

Feng Shui - huh??

Can you pronounce it?

More important, do you know what it is?

Why some knowledge about this subject could help you to turn your "house" into a "home"?

Are you inviting health, peace, prosperity, and even romance into your home, or... are you keeping it at bay because you havent learned how to properly decorate?

Feng Shui is suppose to help you obtain all the above, and even more.

Feng Shui is the ancient Chinese practice of placement and arrangement of space to attempt to achieve harmony with the environment. A growing number of homeowners are looking into this fascinating art as still another means to provide comfortable living for themselves and their families.

http://en.wikipedia.org/wiki/Feng_Shui

Here is a link to the Field Guide on Feng Shui from Realtor.org .

http://www.realtor.org/libweb.nsf/pages/fg315#topica

I would love to hear from you about any experiences you have had with Feng Shui.

Thanks, and best regards,

Jim

Me Too!

2006-03-07T13:26:00.000-05:00

Okay, okay. I'll cave in and do what by now seems to be an obligatory post for most real estate related blog sites. But... I will make my post for a different reason than the others you may read. Allow me to explain.

There is a newly published website, the purpose of which is to allow homeowners to view the tax records for their property, or any other property of interest. The records are contained in a 60 million property database. The dollar value given on this site for the property is to be used as part of a formula. The resultant answer from the formula should allow the researcher to deduce what the market value of that property might be.

Since its very recent inception, many in the real estate industry have hammered away at the site as being a very poor one to be used by anyone doing research for the purpose of a market analysis. The majority of critiques mention that the values suggested do not take into account any upgrades that may have been made to the property, and are therefore inaccurate.

There is a reason I LOVE this site! It's fun! It is very entertaining and informative! It allows me to view a property and neighborhood as if I were flying overhead in a small plane! I am not going to diss the site, as I have bookmarked it, and it has proven valuable several times while trying to locate streets.

Why not visit the site, and try typing in the address for your own residence? Once the property is located, spend some time with the available buttons to: pan in and out; navigate north, south, east, and west; view the property with and with out the street names and houses shown. If you are steady enough with your mouse action on the directional controls, you will feel as though you are actually flying over the neighborhood in a light plane or helicopter looking down! You'll see the roads with the names on them as you virtually traverse the airspace above.

It is a great mapping and orientation program. It also provides some very interesting information about neighborhoods. I would enjoy hearing your thoughts about this site.

zillow.com

Thanks, and best regards,

Jim Dvorovy

Especially For Seniors

2006-03-07T06:57:00.000-05:00

There is an online database that identifies federal, state, and some local private and public benefits for adults over age 55. It contains over 1200 different programs from all fifty states.

There is no cost for this service. Detailed descriptions and contact information is provided, as well as program eligibility requirements.

The service is sponsored by a national nonprofit group, The National Council on Aging. This valuable service they provide is called the BenefitsCheckUp.

www.benefitscheckup.com

Timing Is Everything In Real Estate

2006-03-06T23:15:00.000-05:00

Two sayings continually come to mind when I meet with buyers and sellers:

1) "Timing Is Everything In Real Estate"
2) "We've Got A Long Way To Go And A Short Time To Get There" (words of a song.)

I only wish I had a magic wand I could wave and convince buyers that they really do need to get preapproved for a loan before they begin a property search. So many buyers want to put the cart way before the donkey, and want to begin by looking at sometimes dozens of houses they could never afford to buy. After looking at properties they cannot afford, they eventually must adjust their hopes and expectations downward. Often times, they must suffer heart break by actually losing out on two or three dream properties because they will not and cannot be convinced that the market place has it's own reality, regardless of what some smooth talking personality on TV had told them. Some buyers insist on not making a realistic offer, due to the influence of some guru on TV. It almost seems as if it must be written down somewhere that buyers must offend at least two sellers with "lowball offers" before they realize that sellers in fact do not have to "give their homes away" to them.

I also wish I had a magic wand to wave and convince sellers that even though they perceive their home is the very best in the neighborhood (because it was built using "heavy duty nails"), no buyers are going to pay them an extra $30,000/$20,000/$10,000 than nearby identical homes are selling for.

Field Guides From Realtor.org

2006-03-02T12:30:00.000-05:00

Most 'net surfers are already familiar with the Realtor.com website as a resource for finding properties listed for sale. It is one of the premier real estate web sites. To enrich your browsing even more, make a visit and bookmark the site that members of the National Association Of Realtors use when they are researching topics. The name of that site is realtor.org and it is linked below.

You will find a lot of interesting articles while browsing the vast resources and material on that site:

Realtor.org

Be sure to spend some time clicking on the menu buttons "Library" and "Field Guides". You'll have immediate access to tons of pages with pertinent information about a lot of real estate related topics.

Feel free to email a request for information on any subject that is of interest to you.

JDvorovy@CutlerHomes.com

Thanks, best regards,
Jim

Information You Want, When You Want It

2006-03-01T20:01:00.000-05:00

Probably the most important post that could possibly be made here would pose the question:

What articles or information would YOU like to see posted or discussed?

Feel free to email me with a request for information on any subject for which you have an interest. Your privacy rights will be respected.

JDvorovy@CutlerHomes.com

Disclaimer

2006-03-01T19:40:00.000-05:00

Disclaimer
The views expressed in this blogsite are those of the author and do not necessarily reflect the official policy, position, or opinions of Cutler Real Estate.
The weblogs in this blogsite provide a forum where the authors may express their personal opinions about Stark County real estate business or any other matter.
This blogsite may also include links to and/or content syndicated from other sites operated by third parties. Such links and syndicated content are provided as a convenience to you and as an additional avenue of access to the information contained therein. We have not reviewed all of the information on other sites and are not responsible for the content of any other sites or any products or services that may be offered through other sites. The inclusion of such links or content in no way indicates their endorsement, support or approvalo of the contents of this site or the policies or positions of Cutler Real Estate.
The information in this blogsite is provided "as is" with no warranties and confers no rights.

2006-03-01T14:29:00.000-05:00

Consumer Handouts

Besides the Field Guides, there are also other handouts available on a myriad array of topics. The ones below are especially helpful for first time home buyers. If you would enjoy reading any of them, drop me a short email with your request to:

JDvorovy@CutlerHomes.com

For Buyers

10 Things to Take the Trauma Out of Homebuying
How High Tech Is Your Home?
10 Questions to Ask a Home Inspector
What Your Home Inspection Should Cover
How Comprehensive Is Your Home Warranty?
5 Property Tax Questions You Need to Ask
10 Questions to Ask Your Condo Board
10 Questions to Ask Your Lender
6 Creative Ways to Afford a Home
10 Things a Lender Needs From You
Choices That Will Affect Your Loan
5 Things to Understand About Homeowners Insurance
10 Ways to Lower Your Homeowners Insurance Costs
5 Things to Understand About Title Insurance
What Not to Overlook on a Final Walk-Through
Common Closing Costs for Buyers
What to Keep From Your Closing
Tips for Packing Like a Pro
7 Reasons to Own Your Own Home
Tax Benefits of Home Ownership
10 Steps to Getting Your Finances in Order
Budget Basics Worksheet
8 Ways to Improve Your Credit
5 Factors that Decide Your Credit Score
Your Property Wish List
Tips for Finding the Perfect Neighborhood
Tips for Buying in a Tight Market
The Pros and Cons of Condos
5 Reasons You Need a REALTOR®
Questions to Ask When Choosing a REALTOR®
10 Steps to Prepare for Homeownership
How Big a Mortgage Can I Afford?
Steps to Prepare for Homeownership
10 Tips for First-Time Homebuyers
5 Common First-Time Homebuyer Mistakes

Field Guides Available From Realtor.org

2006-02-28T15:50:00.000-05:00

When a realtor makes a request for information to Realtor.org, a log is created in the search engine. If there are not already articles available on the sought after subject, after just a few requests for the topic, there soon will be! A team will be assigned to research the topic and publish a field guide.

Due to the complexity of the real estate transaction, the amount of knowledge needed in order to feel comfortable during the transaction can at first seem mind boggling. With some patience and research, most consumers can feel both knowledgeable and in control instead of feeling they are at the mercy of which ever way the winds may blow. Fortunately for consumers, when a buyer or seller desires to know more about a specific topic, all they have to do is ask a realtor. The realtor may not immediately know the answer to a specific question, but they have many resources to help a consumer. With a few phone calls and file research, more and more information becomes available.

Near the beginning of a contemplated real estate transaction, consumers are often wondering about not only what they will need to know, but also where to go to get the information. Home sellers have a special and unique set of interests, wants and needs, as do buyers have their very own set of special needs.

In future posts, let's take a look at some of the Field Guides available for you. In the mean time, feel free to send a private email request to have me search the data base of guides for any topic for which you may have an interest. Please send your inquiry to me at the following address:

JDvorovy@CutlerHomes.com

I would welcome your discussion and comments. Please feel free to post here on which ever topics you would care to chat about.

Thanks,
Best regards,
Jim Dvorovy

2006-02-25T14:30:00.000-05:00

Hello everyone!

I am dedicating this blog spot to everyone interested in any and all aspects pertaining to living in or owning property in Stark County, Ohio!