Jill's Real Estate St. Louis Blog

What a REALTOR® Can Do for You

The REALTOR® you work with could be one of your most valuable resources. Unlike many real estate agents who are simply licensed by their state to do business, REALTORS® have taken additional steps to become members of the local board of REALTORS® and have agreed to act under and adhere to a strict Code of Ethics. Plus...
A REALTOR® can help you determine how much home you can afford. Often a REALTOR® can suggest ways to accrue the down payment and explain alternative financing methods.
A REALTOR®, in addition to knowing the local money market, also can tell you what personal and financial data to bring with you when you apply for a loan.
A REALTOR® is already familiar with current real estate values, taxes, utility costs, municipal services and facilities, and may be aware of local zoning changes that could affect your decision to buy.
A REALTOR® can usually research your housing needs in advance through a Multiple Listing Service--even if you are relocating from another city.
A REALTOR® can show you only those homes best suited to your needs--size, style, features, location, accessibility to schools, transportation, shopping and other personal preferences.
A REALTOR® often can suggest simple, imaginative changes that make a home more suitable for you and improve its utility and value.
A REALTOR® is sensitive to the importance you place on this major commitment you are about to make. Look for a real estate professional to facilitate negotiation of a win-win agreement that will satisfy both you and the seller.

Up next. . . . "Why Use a Realtor?"

2. Get a REALTOR®

Step 2 of 10

More than 2 million people in the United States have earned real estate licenses. However, real estate is a tough business with a steep dropout rate, and the result is that only a small percentage of those with licenses actively help buyers and sellers.

The National Association of REALTORS® (NAR) includes 1 million brokers and salespeople, individuals bound together with a strong Code of Ethics, extensive training opportunities and a wealth of community information. NAR members are routinely active in PTAs, local government committees and a variety of neighborhood organizations. Being actively involved in community affairs provides REALTORS® with a better understanding of the area in which they are selling.

Why?
Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right price.

But a basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.

In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area.

How do you choose?
In every community you're likely to find a number of realty brokerages. Because there is heated competition, local REALTORS® must fight hard to succeed in your community.

The best place to find a local REALTOR® is from REALTOR.com's® extensive listing of community professionals and properties. Other sources include open houses, local advertising, Web sites, referrals from other REALTORS®, recommendations from neighbors and suggestions from lenders, attorneys, financial planners and CPAs. The experiences and recommendations of past clients can be invaluable.

In many cases buyers will interview several REALTORS® before selecting one professional with whom to work. These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications.

What should you expect? (Working with a REALTOR®)
Once you select a REALTOR® you will want to establish a proper business relationship. You likely know that some REALTORS® represent sellers while others represent buyers. Each REALTOR® will explain the options available, describe how he or she typically works with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in your state.

Once hired for the job, the REALTOR® will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace REALTORS® will keep you updated and alert you to each step in the transaction process.

Up Next . . . "What a Realtor Can Do For You"

Guarding Your Credit History

By Warren Lutz

You are the first-and best-line of defense in maintaining an error-free credit report

It's one thing to have late payments or delinquencies on your credit report. Everybody has forgotten a payment or two. But it's quite different when somebody else's mistakes cause "dings" on your report.

Fixing such errors is important because unfavorable information on your credit report-accurate or not-affects your ability to borrow money.

The three major credit bureaus-Equifax, Experian, and Trans Union-compile information about you into a report that businesses use to evaluate whether you'd make a good borrower or, in some cases, a good employee. Credit reports tell people where you live, how you pay your bills, whether you've filed for bankruptcy and if you've been arrested.

Let's say you made your monthly payment on your department store credit card on time, but for some reason it is reported as a late payment on your credit report. According to the Fair Credit Reporting Act, both the credit bureau and the department store are responsible for correcting mistakes or incomplete information on your report. But you have to let them know.

Step By Step
To correct an error, write a letter to the credit bureau that produced the erroneous report. Be sure to:

Provide your complete name and address, stating each item in your credit report that you believe is a mistake and why. Stick to the facts and request that errors be corrected or deleted.
Include copies-not the originals-of documents that back your claim such as a canceled check or a receipt of payment. Enclose a copy of the credit report and circle items in question.
Next, write a letter to the company or lender where the mistake came from, informing them of your dispute. Remember, include copies of documents that back your claim.

Send both letters by certified mail, return receipt requested, and keep copies for your records. This way you have proof both parties received notice of your dispute.

Credit Bureau Response
The credit bureau must investigate items in question within 30 days (unless they find your dispute is frivolous). They will also forward your dispute to the department store, which must investigate your claim and report back to the credit provider.

If the department store or any other creditor agree there is a mistake, they must notify the other credit bureaus so they can correct the information in their files. If the disputed item cannot be verified, it must be deleted from your files.

When the investigation is done, the credit bureau must give you its results in writing as well as a free copy of your credit report. You can also request that correction notices be sent to anyone having received your report in the prior six months.

Statement of Dispute
If the credit bureau does not resolve your dispute, you can ask them to include a statement (up to 100 words) in your file that says you disputed information in your report. The statement will show up in future credit reports.

If you're not satisfied with how the credit bureau handled your dispute, you can file a complaint with the Federal Trade Commission's Consumer Response Center by phone (877-FTC-HELP) or on the Web.

Rooting out mistakes in your credit report takes time and diligence. But your efforts could make the difference when it's time for you to get the loan terms you want.

Credit Report Facts
What you need to know about your report:

Types of errors
Late payments, delinquent payments, accounts you don't own, duplicate account information, unpaid judgments against you and bankruptcies.

How long does a bad history live?
Delinquencies are reported for 7 years. Bankruptcies are reported for 10 years. Criminal convictions and credit applications of more than $150,000 are reported indefinitely.

Identity mix-up
Does somebody in your household have the same name as you, such as a Jr. or III? Check your report carefully to make sure their accounts don't wind up on your file, or vice versa. It happens!

NEXT. . ."Is Your Credit Report On Target?"

3 Easy Steps to Getting a Mortgage

By Broderick Perkins

Examine your finances and shop around before you apply.

Shopping for a mortgage is the first step toward owning a home and perhaps the most daunting, especially if you are not prepared.

Once a simple task that meant comparing fixed rates from among perhaps a dozen or fewer savings and loan companies, the mortgage hunt today is like finding your way through a maze.

There are dozens of loan types and hundreds of loan programs available through thousands of mortgage brokers, bankers, lenders, finance companies, credit unions, even stock brokerage firms.

Contrary to popular belief, finding a mortgage doesn't begin with an application.

Education is a better first choice. Mortgage information sources are as vast as the number of mortgages available. Web sites, topical newspaper articles, mortgage books, consumer seminars and workshops, financial planners, real estate agents, mortgage brokers and lenders are all available to assist you along the way.

First and foremost, you must determine how your mortgage payment will fit your current budget and, to some extent, your future obligations 15 to 30 years down the road.

If you discover too late that you can't afford your mortgage, you'll not only face the possibility of losing the roof over your head, but you could also damage your ability to purchase a home later.

Step 1: Examine Your Finances
If you can afford to buy a home, you must then determine how much mortgage you can afford. Lenders are apt to put your loan application in the best light and qualify you for as much as they are willing to lend, which can be more than you can afford.

It's up to you to take stock of your income and expenses, both current and projected to determine what you can comfortably manage each month. Along with your mortgage payment, don't forget related insurance, taxes, homeowner association dues and any other costs rolled into the mortgage payment.

Step 2: Shopping For a Loan
When you are ready to shop for a loan you have two basic types of mortgage stores to shop -- direct lenders and mortgage brokers.

Direct lenders have money to lend. They make the final decision on your application. Brokers are intermediaries who, like you, have many lenders from which to choose. Lenders have a limited number of in-house loans available. Brokers can shop many lenders for each lenders' store of loans. If you have special financing needs and can't find a lender to suit them, an experienced broker may be able to ferret out the loan you need. Mortgage brokers, however, are paid with a slice of the amount you borrow, some more than others some less. Internet brokers today perhaps receive the smallest cut, sometimes none at all, and can prove to be a real bargain.

Along with shopping the source, you'll also have to shop loan costs, including the interest rate, broker fees, points (each point is one percent of the amount you borrow), prepayment penalties, the loan term, application fees, credit report fee, appraisal and a host of others.

Step 3: Apply For a Loan
The application process is the easy part -- provided you've gathered documents necessary to prove claims you make on the application.

The application will ask for information about your job tenure, employment stability, income, your assets (property, cars, bank accounts and investments) and your liabilities (auto loans, installment loans, mortgages, credit-card debt, household expenses and others).

The lender will run a credit check on you to take a look at your credit status, but you'll have to supply additional documentation including paycheck stubs, bank account statements, tax returns, investment earnings reports, rental agreements, divorce decrees, proof of insurance, and other documentation. If the lender deems you creditworthy, it will likely hire a professional appraisal to make sure the value of the home you are about to buy is truly worth your loan amount.

Up Next. . . "Understand Your Credit"

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