1. Check your credit
I recommend pulling your credit from Creditchecktotal.com because they give you all three reports plus your FICO score, and it only costs $1 if you cancel within seven days. To cancel you call 1-877-284-7942 and send an email firstname.lastname@example.org.
Free sites like creditkarma.com don’t give you the information that you need to buy a house. It’s best if you had Transunion, Experian, and Equifax. The mortgage lender goes with the middle number.
If your credit is high, you can most likely qualify for a conventional loan and have a lower mortgage payment. You will have to pay for insurance with this loan, but you can pick who you want to ensure you.
FHA, you have to pay for insurance, and you can’t cancel unless you refinance. Usually, mortgage lenders find the insurance agent. It can get expensive. On a positive note, you don’t have to put a lot of money down for FHA, but FHA has strict guidelines. For example, to buy a condo, it has to be on the condo approved list. It’s best to buy a single-family home or Townhouse.
This site will give you a list of all the FHA approved condos in Miami
FHA APPROVED CONDO SEARCH
Here is what you need to know:
The credit bureaus and the creditors cannot just insert anything they want into your credit report, but that doesn’t mean it does not happen either. Credit bureaus have 30 to 45 days to remove unverifiable items, and it’s the LAW.
You can dispute each and every item that is on your credit report. By law, the credit bureau must re-investigate, but again it does not mean that they do it; in my experience with dealing with them, I have found that sometimes after several disputes, they will send you a letter stating I’m sorry this item was already investigated
I keep disputing, and eventually, they will delete or write the place or the sold called the courthouse and ask how they verify that it’s my account.
Fun tip: The best time to dispute is around Christmas. So if you ever wondered how people get all these items removed off their credit, thank the “fair credit reporting act.”
Note: 64% of the bureau’s complaints were from total strangers finding inaccurate items on there report
HOW LONG DO THE ITEMS STAY
personal credit history 10+ years
closed inactive accounts – 10 years from the date of last payment.
Derogatory items – 7 years
Public records seven years from the date of payment.
Chapter 7 & 13 – 10 years from the date filed.
Now we’re ready to begin.
Pull your 3-1 credit report. And Circle all the negative items.
Past due and unpaid payments
Before we draft the letter, we will be handwriting or using an italic font with a color pen. We are doing this because Experian, Equifax, and Transunion use a machine called E-OSCAR to read each letter. Since we are handwriting, using color and italic, the machine cannot understand, and our letters will have to be given to a real person.
Note: The envelope must be handwritten.
If you have ten items dispute 5
Here is a sample letter to use ( This is the first round )
Insert date here
Credit bureau name
Credit bureau address
Your full name with complete Social security and date of birth
To Whom this may concern:
I was going over my credit report, and I have found that it has many errors. I respectfully request your investigation on the following:
Bankruptcy listed as discharged on 10/20/10 is not mine, and I request that it be removed immediately.
BBBC credit card, account number XXXXXX45678 is not mine; please delete.
Anders Hospital for $296 account #xxxx67896 is not my account; please delete it.
Macy’s credit card account was closed at my request #36789. Please delete.
These listed accounts are not my debts. Please correct this by removal of these items from my credit report immediately. Please send an updated copy of the credit report,
IN THE ENVELOPE YOU MUST INCLUDE
2 CURRENT BILLS IN YOUR NAME THAT MATCH THE ADDRESS
COPY OF YOUR DRIVERS LICENCE.
INCLUDE YOUR SOCIAL AND DOB
SEND THE LETTER CERTIFIED MAIL. YOU WANT TO BE ABLE TO TRACK IT IF THEY DO NOT RESPOND IN 30 -45 DAYS.
Send one letter to each bureau.
Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30374-0256
P.O. Box 4500
Allen, TX 75013
TransUnion Consumer Solutions
P.O. Box 2000
Chester, PA 19016-2000
Now sit back and relax. You will start to get letters in the mail shortly.
Here is a sample letter that worked for me when they told me it was verified. I sent a letter to the courthouse.
Step 3: Figure out how much house you can afford.
A mortgage lender/bank is the only one that can tell you how much money you will be approved for. Try out this calculator below.
HOW MUCH HOUSE CALCULATOR
You will need some money saved for closing costs and downpayment. FHA loans, you will need 3.5% down and conventional 5%-20% down.
3.Find a Miami Real Estate agent
Step 4: Find a real estate agent.
85% of buyers used an agent during their home search in 2020. Having an agent is FREE for the buyer. The Seller is the one that pays the commission to the agents, not the buyer.
I used to think going directly to the listing agent was the way to go because I thought I could save money. I became an agent, and I was wrong.
This is interesting
The Seller hired the listing agent to get him the highest and best price on his home. Anyone that walks through that door alone without an agent, the listing agent that represents the Seller, will also represent the buyer. BAM double commission for that agent. Instead of 3%, she gets 6%. Cool deal.
Since she has to represent Seller and buyer, she will turn into a “transaction broker.”
( A transaction broker provides limited representation to a buyer, a seller, or both, in a real estate transaction. So that’s that. To me, it’s scary. Things can go very wrong, and the buyer’s deposit could be at risk.
So here is my advice to you if you work with the listing agent.
A. Get your lawyer and have them hold your deposit
B. Property disclosure must be on the contract and have them fill it out
C. Hire your own inspection company
D. Write on the bottom of the agreement,” Seller will be responsible for resolving any permit and code violation issues before closing.”
E. Call the condo association and ask if there are any assessments or upcoming assessments. (the last thing you want is to move into your beautiful place, and a month later, they decided to fix the pool and lobby. This would suck because now, with a hefty assessment. )
F. Find out why the Seller is moving. Get the details. Hopefully, it’s not because of an assessment that is coming up.
Lauren Hershey has over 100 reviews on Zillow, Yelp, Realtor, Google, yelp, Tumbtack, and Facebook.
4. Get Pre-Approved
Step 5: Get pre-approved
Unless you’re buying home cash, you need a pre-approval letter by a lender. That lender will tell you the exact amount you can get approved for. It’s not fun looking at 500K houses when a week later, your lender calls you and says, “I’m so sorry your cant get that house you wanted. You were approved for 320K. This happens all the time. So get approved. A suitable lender can get you approved in 24 hours.
MEET MY FAVORITE LOAN OFFICER
Nikky Salvat- Loan Officer, NMLS #43223
(954) 637-6465 / email@example.com
3450 Lake Side Dr., Ste. 330
Miramar, FL 33027
5. Now start your Miami home search
Once you find the house, you will be able to read part two. 🙂