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 “Cash is king” is the mantra heard all over the financial world but when you are purchasing a home, your credit should be “golden”.

A lender considering whether to approve you for a home mortgage will examine your credit history. Credit history is your record of paying back loans, including credit card bills.

If you have a “good” credit history of repaying loans on time and in full, you can usually (but not always due to the strict guidelines the banks have set in place) get approved for loans with lower interest rates.  If you a ‘bad” credit history of missing payments or paying only minimum balances, your loans may be with a higher interest rate.

Sometimes you may not be able to be approved for a loan at all.

If you are thinking about buying a home, even years from now, maintain good credit. Keep your credit “golden”.

Credit Reports

You need to know what your credit score is and what your financial institution considers “good” credit. As always, ask your financial consultant for advice. You may request a credit report, a report that details your debt and payment history.  Credit reports typically include a credit score (also called a FICO score) that gives lenders a quick summary of the quality of your credit.

FICO scores range from 300 to 900 or more. Generally, a score of 700 or above is considered “good”, while a score below “700” may be a disadvantage while attempting to secure a lower interest rate loan. Again, the banks are strict so these numbers may vary.

To order a credit report, contact one of the three major credit bureaus; Experian, TransUnion, or Equifax.

A new law entitles all Americans to one free credit report per year, available at Monitor your credit and check the reports for errors.

For any other questions, please do not hesitate to contact us at: or 602.687.9933.

 Downtown Phoenix residential properties, First Time Homebuyer

We all want a place to call our own, a place in which we can paint the walls purple if we want, where we can hang pictures where we want. Buying a home is typically more cost effective (in the long run) than renting. In the short term, buying a home is definitely more expensive. I want you to be aware of the significant up-front costs that are involved when you purchase a home.



 Down payment: A one-time cash payment that is typically 5-20% of the purchase price of the home. Buyers who pay less than 20% must usually pay additional Private mortgage insurance, called PMI.

Closing costs: The various fees that lenders charge for processing your loan. These charges are usually    1-5% of the overall purchase price.

Property taxes: State and/or local taxes levied on your home. Property taxes vary widely by jurisdiction. Expect to pay at least 1% of the purchase price of your home per year.

Insurance: The cost of homeowner’s insurance and title insurance.  Homeowner’s insurance covers your new house and its contents. Title insurance covers you if the sale of the home was somehow fraudulent. Insurance costs vary substantially depending on the value of your home and its contents.

Repairs: Costs for any necessary or desired repairs, which vary widely depending on the condition of the home. If you’re interested in a property that needs substantial repairs, make sure to budget for the work.

Moving costs: The more stuff you have and the farther you have to move, the more it will cost.  Interstate moves typically cost $3,000 and up.

You will need savings to cover the up-front costs of buying a home. You will also need a steady income to cover the ongoing expenses, such as repairs and upkeep.  If you do not have both saving and a steady income stream, it is typically better to keep on renting.

Build up your funds by cutting costs and saving money.  Eventually, the time will come when you will be able to buy a home.

For more information call: 602.687.9933  or