Ben Esposito - RE/MAX Real Estate Center



Posted by Ben Esposito on 5/20/2018

Preparing to buy a home is a long and stressful process for many. You’ve spent months, or even years, saving for a down payment, planning your future, and building your credit to ensure you get the best possible interest rate on your loan.

Then you find out, when getting preapproved for a mortgage, that your credit score dropped by a few points. So, what gives?

There’s a lot to understand about how credit scores affect mortgages and vice versa. In today’s post, I’m going to attempt to cover everything you need to know about how applying for a mortgage can affect your credit score so you’ll be prepared when it comes time to buy a home.

Prequalification, preapproval, and credit checks

There are a lot of misconceptions about what it means to be preapproved or prequalified for a loan. Some of it is due to the jargon that is used in real estate transactions, and some of it is just a marketing technique on the part of lenders. 

So, what does it mean to be prequalified vs preapproved?

The short version is that getting prequalified is a quick and easy process to determine whether you’re eligible to lend to and how much you’re likely to receive. It involves a quick review of your finances, and often includes either a self-reported or soft credit inquiry.

A “soft inquiry” is the type of credit check that employers typically use for a background check. It doesn’t affect your credit score, as you are not applying to open a new line of credit. In fact, many lenders’ process for prequalification is a simple online form that doesn’t even require a credit check. We’ll talk more about the difference between soft inquiries and hard inquiries later.

The simplicity of prequalification makes it a simple and easy way to get started. But, it isn’t always accurate in how well it predicts the type of mortgage and loan amount you can receive. That’s where preapproval comes in.

When you get preapproved for a loan you fill out an official application (you often have to pay for these). This will request documentation for your finances and assets, and will ask your approval to run a detailed credit report.

These credit reports are considered “hard inquiries” and are a vital step in getting approved or preapproved for a mortgage. However, they also, at least temporarily, lower your credit score.

Why hard inquiries lower your credit score

When any creditor, be it a bank or credit card company, is determining whether to lend to you, they want to know that you are a safe investment. To determine this, they want to know how frequently you pay your bills on time, how much you owe to other creditors, and how financially stable you are right now.

When you make multiple inquiries in a short period of time, it’s a red flag to lenders that you might be in trouble financially. Thus, hard inquiries will lower your credit score for 1 to 2 months.

Applying to multiple lenders: the silver lining

When borrowers apply for a mortgage, they often shop around and apply to multiple lenders. While it may seem that all of these hard inquiries will add up and drastically lower their credit score, this isn’t the case.

Credit bureaus take into account the source of the inquiries. If they realize that you are applying for mortgages, they will typically recognize this as rate shopping and group these applications together on your credit report, counting them only as a single inquiry. This means your score shouldn’t drop multiple times for multiple mortgage preapprovals that were made within a small time frame.


Now that you know more about how mortgage applications affect your credit score, you can confidently shop around for the best mortgage for you and your family.




Categories: Uncategorized  


Posted by Ben Esposito on 5/13/2018

New England is infamous for its old homes and with old homes comes gorgeous, original hardwood floors. Maybe homebuyers have original flooring at the top of their wishlist when home shopping. While you may know how much you adore your hardwood floors, you may not know how to properly care for them. Keep reading for tips on how to keep your new to you hardwood floors in boast-worthy shape. Preemptively prevent scratches and tough to clean buildup by adding mats to any doors leading outside. Not only do they add a nice visual touch, but more importantly they help prevent dirt and outdoor grime from being tracked over your hardwood floors. You will make daily clean up easier on yourself while saving your floors from potential scratches. Institute a no-shoes in the house policy to further prevent any debris from finding their way throughout your home. You will especially want to avoid wearing high heels and cleats in any rooms with hardwood flooring. These types of shoes can put dents and scratches in to the floor that will require a professional to help resuscitate your floors back to their former glory. Create a mudroom area in your home with a bench and shoe rack. This will make it easy for your family members to follow the no shoe rule. Investing in a mat that catches water and slush run off from shoes on bad weather days is also a great way to prevent water damage to your floors. Sweep your floors daily to catch any dirt they may have found it’s way into your home and onto your hardwood floors. Vacuum once a week for a more thorough clean. Once a month you will want to clean your floors with a microfiber cloth and light mist of water. Ensure that you do not soak your floors as water can cause them to swell and become damaged with time. Avoid cleaners for tile or vinyl surfaces and never steam clean your hardwood floors. Install felt pads to the bottoms of any furniture you have in rooms with hardwood flooring. This will help prevent scratches from everyday furniture use. You will want to regularly replace these pads however since dirt can build up on the bottoms and create a sandpaper-like surface that can lead to damage. When rearranging furniture lift the piece off the floor to carry it over to where you would like it placed and then carefully set it down instead of pushing it across your hardwood floors. While this may entail extra help from a family member to do, it will prevent unsightly gashes along your floors from dragging your furniture across the room. Original flooring in an old New England home is a major selling point for many homebuyers. Restoring old hardwood floors to their original condition can be pricey, however, by taking preliminary measures to prevent damage you can avoid bringing an expert in to fix your mistakes. And when all it takes to maintain your floors is a few minutes each day it’s a win-win situation!





Posted by Ben Esposito on 5/8/2018


61 Miller St, Norfolk, MA 02056

Single-Family

$434,900
Price

8
Rooms
3
Beds
1/1
Full/Half Baths
Picture perfect home set on a quite country road close to schools, parks, the commuter rail and more! Wonderfully updated, you first notice the gleaming hardwood floors throughout the first floor, updated kitchen w/ granite counters and SS appliances, updated 1/2 bath w/ laundry, & fireplace family room. Ideal layout flows perfectly from room to room and is great for entertaining or everyday living! Upstairs you'll find 3 large bedrooms, including a master with walk-in closet, recessed lighting, & attached full bath. Head downstairs to the finished basement, where the high ceilings make the possibilities endless for what you can do with the space. The exterior features a quaint screened in porch perfect to enjoy the upcoming summer as is the large flat, private, & fenced yard. Additional updates include new roof & new 2nd floor A/C condenser. Truly a must see. Open House Saturday May 12th from 11 - 12:30 pm.
Open House
Saturday
May 12 at 11:00 AM to 12:30 PM
Cannot make the Open Houses?
Location: 61 Miller St, Norfolk, MA 02056    Get Directions

Similar Properties





Categories: New Homes  


Posted by Ben Esposito on 5/8/2018


61 Miller St, Norfolk, MA 02056

Single-Family

$434,900
Price

8
Rooms
3
Beds
1/1
Full/Half Baths
Picture perfect home set on a quite country road close to schools, parks, the commuter rail and more! Wonderfully updated, you first notice the gleaming hardwood floors throughout the first floor, updated kitchen w/ granite counters and SS appliances, updated 1/2 bath w/ laundry, & fireplace family room. Ideal layout flows perfectly from room to room and is great for entertaining or everyday living! Upstairs you'll find 3 large bedrooms, including a master with walk-in closet, recessed lighting, & attached full bath. Head downstairs to the finished basement, where the high ceilings make the possibilities endless for what you can do with the space. The exterior features a quaint screened in porch perfect to enjoy the upcoming summer as is the large flat, private, & fenced yard. Additional updates include new roof & new 2nd floor A/C condenser. Truly a must see. Open House Saturday May 12th from 11 - 12:30 pm.
Open House
Saturday
May 12 at 11:00 AM to 12:30 PM
Cannot make the Open Houses?
Location: 61 Miller St, Norfolk, MA 02056    Get Directions

Similar Properties





Categories: Open House  


Posted by Ben Esposito on 5/6/2018

Shopping for a new home is difficult and time-consuming. With all of the homes listed for sale, it’s tempting to want to visit all of them. However, if you’re juggling house-hunting with your work and personal life, then you likely won’t have time to set aside many hours to visit several homes.

 This is where you can use technology to your advantage. With free, modern tools online you can find out plenty about a house and the neighborhood it’s in without ever having to go and visit it. Better yet, you can do so in just a few minutes right from home.

 In this article, we’re going to teach you how to become a real estate investigator from the comfort of your own couch, helping you save time while hunting for the perfect home for you. 

 Know what you’re looking for

While it’s okay to browse homes for pleasure, when it comes to getting serious about buying a home you’ll want to keep your search as specific as possible. Think about what you or your family need in a house and neighborhood, rather than focusing on idealized versions of those things.

A good way to do this is to sit down and make a list of your budget and the five most important things you’re looking for in a home. These could be things like distance to work, being in a certain school district, or having a certain number of bedrooms. Once you have these details in mind you can begin your search.

Search tools

There are a number of search tools for locating homes near you. The key to searching, however, isn’t the tool you use but how you search. Refer to your list for things like room numbers, square footage, and location.

If you don’t come up with as many hits as you’d like, try setting up email or text alerts so you can be made aware of the new results for your area.

Once you have a list of about ten properties, you’re ready to start researching them further to see which sellers you want to contact to view the home.

Researching a potential home

Many people are surprised at the number of things you can learn about a home just from a Google search. However, Google will be an indispensable tool in your search for the perfect home.

Let’s start our search on Google Maps. Type in the address for the house you’re researching and see if there are any photos of the home that aren’t on the listing page. Next, enter the satellite view of the home to get an idea of the layout of the home and property.

While you’re in Google Maps, it’s a good idea to browse the local area for businesses, hospitals, schools, parks, and other services that might affect your decision. Then, set a driving route between the house and your place of work to find out how long it would take you to get to work if you moved there.

Once you’re done in Google Maps, head back to the Google search page and browse the results for the address. This could show you information on previous owners, prices, and crime statistics. All of this will be useful information in your search.

Repeat this search method for the rest of your homes on your list and you’ll be narrowing down potential homes to visit in no time.