Preapproved Vs. Prequalified

Is one better than the other? Are they different from one another? The answer is Yes, and Yes.

Generally when being prequalified, a lender will estimate what a buyer qualifies for based on the information they have been told by the buyer. The problem with this is that even the most informed buyer may not know what exactly what is being reported on their credit.

With a preapproval a lender will actually pull credit, verify a buyer’s income, assets, and obtain any other information the lender will need for final underwriting. In essence, the lender is preunderwriting the loan in order to determine what the buyer actually qualifies for. This method if far more accurate than a simple estimate based on unverified information. As a result, a buyer who presents an offer with a preapproval letter will generally have more sway over a transaction than one who only has a prequalification letter. Furthermore, being preapproved will lessen the chance of thing going bad at the last moment.

Should you have any questions or need further information, please don't hesitate to contact me, (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com




Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

Understanding your credit report and score

Your credit score will directly affect how much and at what rate you will be able to borrow from a lender. Whether you’re looking to purchase a home or simply finance a car, you should always have an idea of what your score is and what factors may affect it.

A great way to start understanding your credit is to obtain an actual copy of your credit report. According to the “Fair and Accurate Transactions Act” (FACT ACT), you are entitled to receive a free copy of your report from all three major credit companies. www.annualcreditreport.com to order your free report. Your actual scores will be missing from the report as you are only entitled to receive the report itself for free. If you are interested in seeing your scores, you will have to pay. Each company uses a slightly different format, but once you start to go through them you will get an idea of how things are being reported.

Some factors that will bring down your scores are as follows:

1. Maxing out your available credit.
2. Having few lines of credit with low use.
3. Applying for credit at many places within a short period of time.
4. Errors and multiple entries on your report.
5. Allowing unpaid bills to go into collection agencies.

Factors that will improve your scores:

1. Constantly using your credit
2. Paying your credit/bills back on time.
3. Multiple lines of credit in good standards.

A great way to enhance your credit is to obtain around 4 different lines of credit. Use them to buy your big ticket items, and try to pay them down as fast as you can. But be careful not to pay them down to zero. Most lenders and other creditors want to see that you are using your credit often, but not over exhausting your limit. If they don’t see enough activity, they don’t have much information to judge your amount of credit responsibility on.

When you review your credit report, be on the lookout for items that shouldn’t be there. Most items are suppose to drop off after seven years (there are some exceptions), however sometimes you will see things that are still being reported that shouldn’t be. Any accounts that you closed should state “closed by consumer.” Many times you will find that these accounts are being reported as “closed by creditor.” This type of reporting has a negative impact on your credit. Sometimes you will also find the same account being reported multiple times. If it’s an account in good standing, this isn’t really a problem. However if a negative account is being reported twice, it may be impacting your credit more than it should. In these cases, you would want to dispute these reports (Contact me for further information on disputing your credit reports).

Should you have any questions or need further information, please don't hesitate to contact me, (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com




Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

What is Fractional Ownership?

Fractional Ownership is a concept we’re seeing more of. Although not necessarily a new concept, more and more people are looking to the advantages and minimal risk of having fractional ownership in a property. The idea is a great way to invest in a second family home you will only plan on using certain times of the year. Rather than spending $1 million, a buyer may only need to invest $250,000 and have the right to use the property ¼ of the year. This way, buyers are not fully exposed to the risk as if they had purchase the property outright for the full amount.

You may think of it similar to a timeshare, however with this type of transaction each individual buyer owns an actual share of the property and receives a deed for their share. Also, fractional ownership has a larger backing of lenders and real estate professionals since it is still viewed as an actual real estate purchase.

Should you have any questions or need further information, please don't hesitate to contact me,(775) 220-1630
Or visit my blog at www.SellingNorthernNV.com




Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

What's great about Real Estate in 2008?

-The days of loose lending are over. The same ARMs that had a part in creating our recent housing slump have now become extinct.

-Inexperienced and shady agents are gone. The only agents able to survive in today's market are those who are able to develop trust with their clients based knowledge and experience. Buyers and sellers are able to pick the cream of the crop in today's market.

-Today's increasing inventory means buyers have the opportunity to purchase exactly what they are looking for.

-Short sale and REO listings are becoming are large percentage of our current market. This is enabling buyers to purchase homes below market value with built in equity. It is also creating a need for agents who have experience and knowledge in handling these difficult transactions.

Should you have any questions or need further information, please don't hesitate to contact me,(775) 220-1630

Or visit my blog at www.SellingNorthernNV.com




Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

Full Service Real Estate

You always hear companies and agents say they are “Full Service” Realtors. Unfortunately, there are too many agencies calling themselves “Full Service” and not living up to their clients’ expectations. So, what should you expect from your “Full Service” agent? In addition to your personal expectations, here are some aspects you should require before choosing who you do business with:

Education-
Before entrusting someone to fulfill your real estate needs, you want to ensure you are selecting an agent who is dedicated to continually educating themselves about their industry and the current market. Unfortunately, obtaining a real estate license isn’t the most difficult of things to do. There are too many agents in this industry who skate by with the minimal continuing education courses required to keep their license. A “Full Service” agent should continuously be educating themselves and staying on top of current market trends. Ask your agent how often they update themselves on new market data. If their answer is anything other than daily (or at least weekly), move onto another agent.

Communication-
One of the biggest complaints from both buyers and sellers is the lack of communication from their agents on even a basic level. You should be receiving some form of contact from your agent every week. Even if it’s a simple email to tell you that there hasn’t been any new activity on your property. What’s worse is when agents fail to return clients phone calls and emails in a timely fashion. If your “Full Service” agent doesn’t determine your preferred method of contact and doesn’t have a steady system for keeping in contact with you, you should question if they are providing you with “Full Service.”

Company Image-
There are several fly by night companies out there that try and pass as “Full Service” agencies. The company you choose should have guidelines in place that require a level of professionalism and dedication from all their agents. There are many companies (including well known chains) that will take on any agent who comes through the door. Find out how extensive of an interview process the companies you’re deciding on have, and do they retain the cream of the crop in your market.

Long term-
Study shows that 50% of all licensees are gone within a year, and that 80% leave the industry by their second year. Of the 20% who remain, many still lack the work ethic and devotion it takes to survive in a down market. As a result, many agents will put their license on ice until the market rebounds. Within the last two month we’ve seen a large increase of agents coming back into the market that originally changed their license to inactive over the last couple of years. So even if the agent you’re speaking with has several year of experience, find out what amount of it was spent with an inactive license. You’ll find only a handful of agents have what it takes to be to deliver results to their clients no matter what the market conditions are.

Systematic-
Every agent you speak to will tell you they can do the job you’re looking for. But do they have a system in place to actually deliver? You want to make sure your agent has a system in place to ensure that your needs will, (not might) be met. Studies show that less than 20% of agents have even developed a process for their original interview, let alone for an entire transaction. During your initial interview process, a “Full Service” agent should be able to provide a step by step agenda which will prove to you without a doubt that they are able to fulfill your needs.

Should you have any questions or need further information, please don't hesitate to contact me (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com




Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

General Rules for FHA Financing

Here are a few rules when considering an FHA loan.

- You will need some credit. However, you can use credit reference letters from utilities companies if you have no credit history.

-If you have minor collections, it is possible to still get approved if you have other strong accounts on your credit report.

-Verified income. FHA will require proof of income. It can be very difficult to obtain FHA approval if you’re self-employed, although not impossible. I would recommend meeting with a lender who uses FHA to see if you qualify.

-Although FHA property guidelines have eased up a little, major systems will need to be working at time of inspection (heating/AC, water turned on, electricity turned on, etc).

-FHA requires a down payment of 3% of the sales price. However this down payment can be obtained from several sources (borrowers’ savings, family gift, grant/loan from First Time Homebuyer Assistance programs, Gift from Non-Profit Organization). On Oct. 1, 2008 the down payment assistance programs will no longer be available. If you need this down payment assistance, I would recommend meeting with a lender ASAP.

-FHA doesn't require any minimum credit score, but most lenders will require a minimum score of 500 - 580.

-FHA allows for manual underwriting if the FHA automated approval system doesn't approve the loan.

Should you have any questions or need further information, please don't hesitate to contact me,(775) 220-1630

Or visit my website at www.SellingNorthernNV.com




Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521