What’s a Credit Bureau Score-How Do Lenders Use Them?

Posted on September 13, 2016 by firsttitleandabstract

As we show you in this video, a credit bureau score, or “credit score” is a number based upon your credit history that represents the possibility that you will be able or unable to repay a loan.

Lenders use it to determine your ability to qualify for a mortgage loan.

The better the score, the better your chances are of getting a favorable loan.

Credit scoring has changed over the years, and continues to involve new modeling with different credit agencies each using different factors to score your credit behavior.

What’s a Credit Bureau Score-How Do Lenders Use Them?

Your credit score is based on a number of factors such as:

Payment History
Proportion of Balances to Available Credit
Length of Credit
New Credit
Types of Credit Used
Negative Reports from Public Agencies for Foreclosure, Bankruptcy, Collections

Knowing your credit score is an important first step to evaluating what you may be able to qualify for in the way of property financing.

For more information about your Credit Score and how Lenders will use the information, please call us at First Title & Abstract, Inc.

We can put you in touch with some of the best lenders in the area who can guide you through the process of evaluating, and improving your credit score.

How to Check My Credit History?

Posted on September 12, 2016 by firsttitleandabstract

How to Check My Credit History?

Your credit history will determine your eligibility to obtain a mortgage to finance the purchase of your property. Also, your credit score will determine the rate you pay on your mortgage.

As you will see from this video, there are three major credit reporting companies:

Equifax – www.equifax.com 1-800-685-1111
Experian – www.experian.com 1-888-397-3742
Trans Union – www.transunion.com 1-800-916-8800

Obtaining your credit history is as easy as calling and requesting one.

Once you receive the report, it’s important to verify its accuracy.

Checking Your Credit History is An Important First Step to Financing Your Purchase

If there are issues with your credit (late payments, too many credit lines open, or too few, insufficient credit available, age of credit, public record collections, judgments, or bankruptcies, etc.) you may wish to work with a credit repair firm to assist you in raising your credit score.

It’s wise to do this before you begin shopping for a mortgage or a property.

For answers to questions you may have about your credit, please call one of our staff members at First title & Abstract, Inc, at either our Naples or Marco Island office.

We can help put you in touch with credit repair companies and mortgage professionals to assist you in your quest to finance your purchase.

Rent or Own?

Posted on September 2, 2016 by firsttitleandabstract

Rent or own?

What makes the most sense in the current market?

Well, much depends upon your tax bracket, whether you intend to move in the near future, the local real estate market, and what your future goals may be.

Other considerations must be included.

One advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity and take advantage of tax benefits and also cannot protect yourself against rent increases.

Also, you may be at the mercy of the landlord for the condition of your housing.

Owning a home has many benefits. When you make a mortgage payment, you are building equity increasing YOUR net worth. Also, owning a home qualifies you for certain tax breaks which gives you more available spending money to handle the costs of homeownership.

Each individual is different, depending upon preferences and goals, but generally, Americans prefer the stability and security of owning their own home.

At First Title & Abstract, Inc. our staff on Marco Island and in Naples can assist you in reviewing the decision whether to rent or own.

It’s not child’s play deciding whether to rent or own your castle … let us help!

Just call us anytime and set up an appointment with one of our friendly staff members.

We’re here to help!

Determining Your Housing Needs Before You Search

Posted on August 31, 2016 by firsttitleandabstract

Determining your housing needs before you search will help you save lots of time and frustration, and keep you focused on the home most likely to bring you years of pleasure.

This video will help you prioritize the most important steps in searching for a home.

Once you’ve qualified for your mortgage and know what you can afford, you can then find a home which fits the way you live, with spaces and features that appeal to the whole family.

Before you begin looking at homes make a list of your priorities – things like location, style, number of bedrooms and bathrooms, and overall size.

Other considerations include the following:

Should the house be close to certain schools? your job? to public transportation? amenities? hospitals? shopping? church and activities?
How large should the house be?
What type of lot do you prefer?
Do you prefer an older established community, or a newer community?
What kinds of amenities are you looking for? a swimming pool? extra large closets? a guest house? solar heating and cooling?

Establish a set of minimum requirements (your “must haves”) along with a ‘wish list.” This will move you closer to unlocking the dream of owning the perfect home.

As always, it’s a good idea to become clear on what is essential and necessary, and what is a preference or a wish.

For a great checklist to help you in your search, please visit our Homeowner’s page.

Doing a preliminary search on the Internet also may help, but at some point, you will want to take your pre-planning forward to a professional who can help you zero in on the right home in the right neighborhood.

At First Title & Abstract, Inc., our staff in the Marco Island and Naples offices are happy to guide you to find the perfect Realtor to help you in your search.

Please do not hesitate to call or email us and let us know how we can assist you in your exciting search.

How Much Mortgage Can I Afford? Marco Island – Naples

Posted on August 30, 2016 by firsttitleandabstract

“How Much Mortgage Can I Afford?”

Determining how much mortgage you can qualify for is an important determination when beginning the process of shopping for a new home or property.

As you’ll see in the video, the lenders consider your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses.

We Can Refer You to a Mortgage Professional to Assist You!

Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support.

According to the FHA, monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, should total no more than 41% of income.

Lenders also consider cash available for down payment and closing costs credit history and the rest of your financial picture when determining your maximum loan amount.

Interest rates, and the type of loan (30 year, 15 year, 7 year ARM, etc.) can affect your monthly payment, and therefore your debt to income ratio.

Also, having sufficient savings and reserves, and paying off consumer debt prior to buying a home are all good strategies to enhance the prospects of being approved for the best possible mortgage.

At First Title & Abstract, Inc., our staff in the Marco Island and Naples offices can assist you in finding a qualified mortgage professional in your area to help you begin the process of qualifying for a mortgage.

Knowing what you can afford is smart!

Please don’t hesitate to contact us for a referral to help you begin the process!

How Do I Begin The Process Of Buying A Home?

Posted on August 27, 2016 by firsttitleandabstract

Home-Buying 101 – First Steps

Buying a home is part of the American Dream!

This video outlines some of the basic first steps to consider when embarking on the journey of becoming a homeowner.

Remember these pointers from the video:

Are you ready to buy a home?
How much can you afford in a monthly mortgage payment?
How much space do you need?
What areas of town do you like?

After you answer these questions, make a “To Do” list and start doing some research.

Talk to friends and family, drive through neighborhoods, and look in the “Homes” section of the newspaper, or online.

And of course, you should meet with your mortgage lender to be pre-qualified for a mortgage so you will know what you can afford.

Then, you will wish to pick a Realtor to help you find your dream home in the right neighborhood which meets all your requirements.

We can help by recommending reputable mortgage lenders and Realtors in the area to help you along the way.

Then, we’ll be there at the end to help you take title and insure your ownership rights and protect your investment.

For more information, please call our Marco Island or Naples office of First Title & Abstract, Inc.

We’re eager to answer any questions, make recommendations, and serve your real estate needs!

Closing Costs Explained Visually

Posted on August 26, 2016 by firsttitleandabstract

This video explains some of the basics about closing costs.

At First Title & Abstract, Inc. our Marco Island and Naples offices are dedicated to making sure you understand upfront the estimated costs you will incur for closing.

Purchasing a home is exciting!

However, once escrow begins, the excitement can change to frustration, particularly if you are not ready for the closing costs that quickly accumulate. Many people make the mistake of only assuming they need the down payment money, and have to rush around town trying to come up with money for the closing fees.

However, you need not be surprised!

Just have your Realtor request from us a preliminary settlement statement reflecting an estimate of your closing costs.

As you may know, closing costs simply refer to the fees associated with the escrow and closing process in a real estate transaction.

Typically, you will incur charges for tax pro-rations, homeowner’s association or condominium fee pro-rations, lender’s fees, including credit check and appraisal fees, points and loan origination charges, and pre-paid escrow fees for your escrow account with the mortgage company. As well, there will be title charges, including the settlement fee, abstract fee, courier and delivery fees, title insurance premiums, and recording costs paid to the clerk of court.

Should you desire a preliminary settlement statement for your closing, just click on the link below and complete some basic information about your sale or purchase. We will provide an estimate for you with no obligation or cost for this service!

At First title & Abstract, Inc. we believe an informed consumer is a happy customer. All of us stand ready to serve you in your real estate transaction, and look forward to working with you!

Title Insurance Explained Visually

Posted on August 24, 2016 by firsttitleandabstract

This video explains why title insurance is one of the most important investments a buyer can make when purchasing real estate.

Often, real estate buyers ask—

“Doesn’t the attorney or settlement company handling the closing see to it that I have clear title? Why do I need to buy title insurance?”

Indeed, a careful title search is performed at the time property changes hands, and title issues are cleared prior to closing. However, on occasion, title defects can arise after the closing which a title search would not reveal. For example, what if a judgment was recorded in the wrong county, but still is valid as against the property? What if there was fraud in signing a deed, two sales ago, which only now is revealed? What if an unknown heir steps forward and claims title to the property?

Title insurance is designed to protect against such unanticipated title issues, and to prevent economic loss.

Whether it is after-discovered title defects, or mistakes made by the title abstractor or clerk of court— without title insurance, a property owner could suffer complete financial loss, and loss of ownership and occupancy rights to the property.

On our Resources Page, we have an article on “The Many Ways to Lose Title to Your Property” unless one has purchased a policy of title insurance.

We highly recommend watching this video, and studying the article on our Resources Page.

Title insurance is only purchased once, and the rates are strictly regulated by state law, with the same amount charged by all title companies and title agents and attorneys within the state.

If you have questions about the amount of coverage you should purchase, and the cost of title insurance, please contact us at our Marco Island or Naples Office at First Title & Abstract, Inc.

We look forward to assisting you in protecting title to your property.