Discovering an error on your credit history report can be an unpleasant surprise when attempting to get pre-approved for a mortgage. Though most people don’t think about the details of their credit report until they need to secure a loan, it’s an excellent idea to periodically check your report for inaccuracies. Checking your credit reports is easy to do. Each nationwide credit reporting company, Equifax, Experian, and TransUnion, must provide you with a free copy of your credit report at your request once every 12 months. 

What Happens When Your Find an Error?

 If you discover an error on your credit report, the recommended way to attempt a correction is through a dispute letter. Dispute letters allow you to request the reporting agency to correct the error. Though it may take a little time to fix the errors, cleaning up these mistakes can have a direct (and favorable!) effect on your credit score. Higher credit scores help you secure lower interest rates and better terms on your mortgage.

Here’s what you’ll need to include for each mistake on your credit report that you find: 

1. Refer to which account has the error.

2. List precisely what is incorrect about the account and reference where it appears in the report.

3. Outline the requested changes and explain why those changes are necessary.

4. Include supporting evidence or documentation which will bolster your claim.

5. Send the letter by certified mail with a return receipt requested so you can document what the credit reporting company received.

For example: “In my report, the Chase Visa ending in XXXX shows my account is still active. I closed this account in 2012. Please market the account ‘closed’ on the report, not ‘active.’ Included is a letter from Chase Bank confirming the account closure date.”

It’s a good idea to keep copies of everything you send. Also, be sure to send the correction to all three major reporting agencies (Equifax, Experian, and TransUnion) and the original creditor (i.e., the credit card company, utility, etc.). You can find the current dispute mailing addresses on these companies’ websites. Federal law mandates that agencies must help you within 30 days. Keep records of your disputes and when/how you communicated with the agencies. 

An article by Experian offers insight into credit scores and disputes. Filing a request has no impact on your score. However, once your dispute is processed, that is where your credit score could change. Additionally, updating or changing information such as identification or address information will not affect your credit score. 

Why Clean Your Credit

Having the cleanest credit report possible will result in a higher credit score, increasing your chances of getting pre-approved for a mortgage. A low credit score results in a much higher interest rate when applying for a home loan. Besides, if you have a low credit score, you will be required to contribute much larger cash down payment.  

When looking to be pre-approved for a mortgage, you first need to get your credit report as clean as possible, pay off as many debts as possible, and make on-time payments. One of the hands-on things you can do today is set up payment reminders and pay your bills on time. Take these steps, then sit back and watch your credit score rise!    

According to the law, negative credit information stays on your credit report for seven years. On the other hand, positive information can remain on your credit report indefinitely. That is why getting your credit in shape is a crucial step when you’re preparing to buy a home.  

I help buyers prepare every day! I would love to help you buy your next home (602) 799-1979.

When you are preparing to invest your hard-earned money into a home, it is essential to learn everything about that home’s history. While there are common questions about a home’s condition, history, and location, buyers often overlook some vital issues. 

Don’t rely on sellers to volunteer this information. In some cases, they may not even know the answers for themselves. It is imperative to protect your potential investment. These questions can help you get to the bottom of potential pitfalls:

1. Have you ever had asbestos removed from the home? Old heating ducts, ceilings, and even certain types of flooring can contain asbestos; if they’ve had asbestos removed, follow up by asking about the removal process. Was it done DIY, or did they have professional help? 

2. Has there ever been mold remediation in the home? Mold can be a severe issue. For a healthy family, monitoring and eliminating mold is crucial. Mold is sneaky, and it can creep up on you when you least expect it. Spores are known to stay dormant until they have the moisture and the nutrients required to bloom. Much like asbestos, find out the mold removal process if mold has been an issue. 

3. Has the home been tested for lead? Homes built before 1978 may be at elevated risk for lead contamination. If the owner hasn’t checked for lead contamination, you or the sellers could do tests. The Environmental Protection Agency only recognizes two DIY lead paint test kits. These test kits are LeadCheck and D-Lead. Both tests are available for low-cost and produce quick results. To learn more about these tests, check out this article by House Logic. 

4.  Were renovations adequately permitted and inspected? If there’s been work done on the home, find out if those renovations are legal and up to code.

5.  Is the home in a flood zone? Yes, you can research this yourself, but it can be a litmus test question. Do the homeowners know? If they know, do they have flood insurance? Who provided the insurance? Make sure to do your research. Get flood insurance quotes before buying a home to ensure it is an expense you can afford. Note that rates are a national standard, so getting multiple quotes from different insurance companies is not usually necessary.

6.  Have radon levels been tested in the home recently? Indoor air quality is essential, and radon is a naturally occurring radioactive gas that can contribute to lung cancer. 

If a seller, or their agent, can’t answer these questions, it doesn’t necessarily mean they’re hiding something. But asking these questions can save you time, money, or even your life down the line. Due diligence is vital! I have years of experience in asking these questions. Give me a call if you need help.

Chris Chintis

(928) 799-1979

Home Inspection Repair Decisions

Even though I am a realtor with extensive real estate experience, the word ‘inspection’ tends to make me and many of my clients uncomfortable. It is understandable that being ‘inspected’ can make you uncomfortable. If you are the seller, you don’t want to lose the sale.

If you are the buyer, you don’t want to lose buying the house of your dreams. Plus, add to the scenario that neither party wants to spend more time and money than necessary. All of those emotions combined can make an uncomfortable situation.

Buying and Selling homes in Prescott, Arizona, is unique since the historic mountainous area has various types of homes. Prescott has 125-year-old historic homes, senior mobile homes, new custom homes, starter homes, luxury homes, ranches, subdivision homes . . . the list can go on and on. At the time of sale, each home typically will undergo an inspection. Here is a question that I often receive regarding the inspection’s repairs:

“The home inspection just completed on a home I have under contract turned up some issues. Should I insist the repairs be completed before closing?”

Everyone wants a smooth closing, and home inspection negotiations are often where a deal can fall apart. To help answer that, we need to discuss a couple of scenarios. Here are some things you’ll want to consider:

1. If you require the seller to make the repairs, do you think they’ll do as good a job as you would? After all, they’re getting ready to move on to their next home. While the repairs must meet specific quality standards, they might not measure up to your high standards (though they technically fulfill their end of the bargain).

2. Ask yourself, do the repairs matter in the grand scheme of things? Are you quibbling over some peeling linoleum in a kitchen you’re already planning to renovate from the floor up?

3. The back-and-forth over repairs could delay your closing. Remember, getting the work done will involve selecting a contractor, scheduling the job, and reviewing the completed work.

Instead of having the repairs made before closing, you might decide to seek a cash-back credit at the close of escrow. This way, you can have the work done on your terms and your timeline after closing (and you might just offset some of those closing costs as well).

Negotiating cash-back at the close of escrow is just one of the many reasons that working with a real estate professional is to your benefit. Realtors are trained and take many – many (many) classes to equip themselves to help buyers with the best strategies to make an equitable and smooth transaction. It is best not to navigate the process alone. I’m happy to help you with any questions you may have and make sure you get the most out of your next real estate experience! Give me a call!

Christina Chintis

(602) 799-1979

You deserve a home in good shape! How it gets that way is often negotiable.

House hunting can be overwhelming.  As realtors, we genuinely understand that you are preparing to make a substantial financial and emotional investment. As a future homeowner, you take great care to find a place that is “just right” for you as well as your family. You can even get a little addicted to touring houses, always convinced the perfect home is just about to hit the market. Sometimes the inability to pull the trigger on the house can cause serious shopper’s remorse. You could miss out on a home that, in retrospect, was ideal.

So how do you know a home is “the one”?

Here are some useful ways to check your buying temperature and know when it’s time to make an offer

1. The home fundamentally meets your needs. There’s plenty of compromise in home hunting, so when you find one that has the basics covered, take note.
2. You would consider renovating for those luxurious little extras. Maybe the home is missing that pool you’ve always wanted or is missing a detached workshop/garage space. This is when you need to recognize the home’s potential when you find yourself thinking you would be up to tackling a project to make it perfect.
3. You’re in love with the kitchen. Studies show we spend most of our waking hours connected to or using the kitchen. If you’re in love with the kitchen but think the master bedroom is a little small, consider where you would be spending most of your time. Careful to not pass on the home when it could be the one.
4. The bathroom feels comfortable to you. Many times, other people’s bathrooms will give you the creeps. If you feel good about the bathroom, it’s a healthy sign.
5. You start to see your possessions in the house. If you’re thinking, “ah yes, the flatscreen could go on that wall” and “wow, my bed would fit perfectly in this suite,” then you’re starting to imagine the house as your own.
6. You picture where you are going to place your Christmas tree.  Many professionals claim that when you can visualize where your tree will be placed, you may be in the ‘right’ home.
7. You become possessive about the house and find yourself defending every flaw you see.  Maybe your agent points out a flaw and says, “There is a stain in the kitchen sink,” and you become defensive to them for saying something so mean about this house. If you even see the flaws and decide that defects do not matter, you’re falling in love.
8. The idea of someone else buying the home gives you a pit in your stomach. If you’re “sleeping on the decision” and the idea that the home is no longer an option makes you anxious, pay attention. It could be offer time.

As realtors, we understand the financial commitment as well as the physical commitment of a move.  It isn’t a decision that you should take lightly, as well as a decision that should be made without a realtor to help you with the tough questions.  When you are ready to buy, give us a call, we would love to put our experience to work for you.

Earnest money is a great way to show a seller you’re serious about the offer you’re making on their home. What is earnest money? Earnest money is a deposit from a buyer to a seller representing a buyer’s ‘good faith.’ The deposit is a way for the buyer to receive extra time to get financing and conduct the title search, property appraisal, and inspections before closing.

By placing this deposit down to demonstrate your commitment to follow-through on the contract, you’re saying, “I love this home, and I’m ready to commit.” But there’s a real risk involved: If you make a mistake, you might lose your deposit and be out of a chunk of cash.

Here are some ways to avoid burning your home-buying bankroll in lost earnest money:

1. Make sure it’s the home you want. Seem obvious? Sure. But it’s easy to get swept up in the moment. Recognize that you’re about to enter into a legally binding contract and that the money you’re risking will hurt if you change your mind. While you may not be able to drag your feet on the decision, check your gut to see if any reservations are lurking there before you go all in.
2. Don’t sacrifice contract contingencies. Don’t let your desire for a home cause you to blindly remove contingencies that are built into contracts to protect buyers. Common ones include loan contingencies, title search issues, appraisal, and insurance obstacles. Waive these at your own peril.
3. Avoid committing to a home “as is.” If you’re putting earnest money on an offer for a foreclosed home, don’t be too eager to accept any home problem. Take the time to understand the home’s issues before you write the offer.
4. Read the contract timelines. Look at closing dates and other dates related to the process leading up to closing. Violating the timeline could cost you your earnest money as well.
5. Ensure you have recourse to get some or all of your earnest money back. If the sale doesn’t finalize, you and the buyer will need to sign a document voiding the agreement. Please don’t sign this until you understand how it will impact your earnest money refund. The seller’s title can be negatively impacted if you don’t sign off, so keep your leverage handy until you’re sure you are satisfied that you have been treated fairly.

Protect yourself and your down payment by playing smart with your earnest money. If you have questions or concerns, ask your agent to help you understand everything in plain language!

Ready to buy? Let me help you find the right home and protect your interests along the way.