October is national economic education month. Economic education is something we can all benefit from at any age. The Federal Reserve and local economic councils offers a variety of educational events throughout the month. As a realtor, I often find myself educating my buyers and sellers on how their economic choices can affect their real estate dreams.
For home sellers it is important to understand how the sale can affect their credit rating. If you are purchasing another house, a lower mortgage can raise your score. While a larger mortgage may lower your score by increasing your debt to income ratio. If you aren’t buying another home, using the proceeds to pay down your existing debt can raise your score. In addition, eliminating your mortgage also eliminates your most consistent revolving payment. This may negatively affect you score by removing your ability to demonstrate your ability to make regular payments.
For buyers, I recommend checking your credit before starting the home buying process. It will give you the opportunity to correct any wrong information on your credit report, as well as let you know if there are any surprises that might hurt your chances of getting a mortgage. Once you have your credit score, speak to loan officer about getting pre-approved for a mortgage. This will allow you to know what your budget is for a new home. Once you’ve started your loan application it is important not do anything to negatively affect your credit score. Do not make any large purchases, open credit cards, or make any large deposit in your bank accounts. Every realtor I know has a story about a client that couldn’t get a mortgage because they did one of these things.
Part of my job as your realtor is to make sure that my clients are aware of how buying and selling can affect them in the short and long run. I am always happy to help educate them on their real estate journey.
Happy Buying and Selling!
About the Author
Debbie Caldwell
When you first meet Debbie Harris-Caldwell, you are immediately drawn to her charming Welsh accent and the twinkle in her eye. The well-traveled transplant from Wales is quick to set you at ease and time spent with her promises to be time well spent.
Debbie has been a real estate agent for 40 years and takes great pride in her customer service skills. "I make myself available to my customers when they need me, whether it's on a Sunday Evening or after their long day at work. I make my schedule fit theirs. I also keep my customers updated on everything happening with their listings or purchase, I am their conduit for information." She has built a business following her key principles of clear communication, attention to detail, client advocacy, and comprehensive knowledge of the area. Debbie comes to every new transaction with positive energy, determination, a strong understanding of the currents driving the market, and the expertise that comes from a lifetime of experience. She knows the importance of marketing and whether a home is for sale for $200,000 or for $2 million, she always has professional photography done and creates a listing presentation that best shows off her customer's home.