Lee Morof's Real Estate Blog

If you are in the market to purchase Southeast Michigan real estate, the first place you need to start is with your credit report.  If it has been more than a year since you reviewed it, now is the time.  Do not wait until you find your dream home before examining your credit report.  If there are problems with it, you could be turned down for the mortgage.

After you’ve received your current credit report, follow these five steps to spring clean your credit report before starting your search for Southeast Michigan real estate:

1. Check your personal information: Is your personal information such as name, address, and social security number accurate?  If not, get that information corrected.

2. Review all the accounts listed: Are they all yours? Are the account numbers correct? Are the account balances accurate?

3. Get credit report errors corrected: Under the Fair Credit Reporting Act (FCRA), both the credit reporting agency and the information provider (that is, the person, company, creditor or organization that provides information about you to a credit reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under this law, contact the credit reporting company and the information provider.

4. Contact the credit reporting agency about errors all errors on the report: Send a letter by certified mail and “return receipt request” so that you can document that the credit reporting company received the letter. Keep a copy of the letter and documents. Include the following in the letter:

a. Copies (not the originals) of documents that support your position.

b. Your complete name and address

c. The facts about the problem and an explanation of why you dispute the information

d. A copy of your credit report with the items in question circled.

5. Contact the information provider about errors they made: In writing, contact the creditor or other information provider to let them know that you dispute an item they’ve placed on your credit report. Send a letter by certified mail and “return receipt request” so that you can document that the letter was received. Keep a copy of the letter and documents. Include copies (not originals) of documents that support your position.

The hardest part of buying Southeast Michigan real estate could be finding the right property for you, or it could be the six to twelve months it may take to clean up your credit report.  Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com  with any questions you have concerning your credit and buying real estate.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
www.NorthWoodwardHomes.com

Buying a home is an important decision. Owning Southeast Michigan real estate can be your greatest financial asset when it builds equity over time. It can also be your greatest financial nightmare if you end up losing it to foreclosure. This is why you want to find an Oakland County home in Southeast Michigan, at a reasonable price with a payment that fits within your budget. Before you start looking at homes, make sure you know how much home you can afford.

• Be realistic. Get pre-approved for a loan before you start looking for Southeast Michigan real estate. This way you won’t waste time looking at homes you can’t afford. Just because your lender approves you for a loan doesn’t mean you have to use the entire loan amount. Take a look at your financial situation, including the amount of credit you have, the debt you owe, your monthly income, and your lifestyle.
• Consider the cost of homeownership. When you rent a home from someone, your landlord is responsible for maintaining the property. As a renter, you don’t have to take care of the roof or pay for pest control. This is included as part of your monthly rent. However, as a homeowner, home maintenance is your responsibility. Make sure you can set aside money to cover regular home maintenance costs and any surprise repairs that may occur.
• Practice with your finances. If you’re not entirely sure how much you can afford to spend for your monthly payment, try it out. For example, if you want to buy a home that costs $225,000, use a mortgage calculator to determine what your monthly payment would be. Then subtract that amount of money from your budget for the next few months and see if you still have enough to pay the rest of your bills. This will give you an idea of whether or not the payment fits in your lifestyle.  And, you’ll have that extra money saved for a down payment to purchase Southeast Michigan real estate. 

I’ll send you a free book for home buyers, “Let’s Find Your New Home.”  You’ll learn all there is to know about buying a home from start to finish.  And…it’s absolutely free with no strings attached.

Your home is an important investment that should be a part of your overall financial plan. I’ll help you find and buy the right home for your needs and budget.  As a licensed real estate broker and lawyer, I’ll keep you from making mistakes that could cost you thousands. 

Let me help you find the home in Oakland County, Southeast Michigan, that fits your lifestyle and needs.  Drop me an email me at info@NorthWoodwardHomes.com now.  Or, call me at 248-514-2640 and let’s talk real estate! 

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

On Thursday May 8, 2008, the United States House of Representatives passed a Housing Aid Bill that would allow struggling homeowners to refinance their subprime mortgage loans through the Federal Housing Administration and provide funding to states to buy and fix up foreclosed homes. Bush has threatened a veto claiming that the bill would penalize prudent homebuyers and reward those that “gambled” that home values would rise. As to the funding provision to the states, Bush claims that it rewards the lenders who helped cause the problem. Total projected cost of the bill is estimated to be $17.7 billion over five years.

First, let’s put this is perspective. According to some accounts, we are spending around $1 billion per month in Iraq, an amount that Congress doesn’t  seem to have any trouble funding. So, any claim that we cannot afford the cost of the Housing Bill is just disingenuous. In addition, the bill provides that homeowners would be required to share any profits from selling or refinancing with FHA.

Second, the contention that the bill would penalize prudent homeowners is shortsighted Bushspeak. I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County in Southeast Michigan. Currently, one of every two homes sold here is bank owned foreclosed. This influx of housing inventory has caused all homes in the area to decline in value by as much as thirty to forty percent over the last few years. By reducing the number of foreclosed homes on the market, “prudent” homeowners will see their home values stabilize and, eventually, climb. To say they would be penalized is absurd.

Third, to contend that subprime borrowers “gambled” shows how disconnected this President is from reality. Subprime mortgage borrowers typically had very little choice when it came to financing available to them to buy a home. For the most part, the choice was to buy a home under those terms or not. What the subprime borrowers did not expect was that they would be laid off or outsourced during a recession that no one wants to admit has happened.

George W. Bush’s approval ratings are amongst the lowest of any President in our nation’s history. His, or his conrollers’, veto threats of the current Housing Bills and the reasons for them, are more examples of why he is so unpopular.

Are you thinking about buying or selling Southeast Michigan real estate in Oakland County?  Give me a call today at 248-514-2640.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640