Who Has Access to Your Credit Profile?

In 1971, the government passed an act referred to as the Fair Credit Reporting Act (FCRA) to regulate who has access to credit profiles, and how inaccurate information can be removed from a credit report. This act was established to regulate credit reporting agencies, such as Equifax, Experian and TransUnion, in order to protect consumers’ privacy rights. This bill was later revised in 1997 to provide even more protection to the consumer.  The FCRA act clearly lays out who specifically can obtain access to a credit profile and how each person is notified about who has gained access to their profile.

According to the FCRA act, only those who have a “legitimate business” need can view a credit profile. This may include lenders, insurance agencies, collection agencies, financial institutions, landlords, credit card companies, and current or potential employers. This means that your neighbors, coworkers, friends, and family members cannot gain access to your credit report without having a legitimate business reason. Every time one of these companies accesses your account, their information along with the date your credit profile was accesses will be listed on your credit report. These inquiries are referred to as hard inquiries and it is required by law that this information be published on your credit report.

Other companies, such as those who send you a pre-approved credit card notice, can also gain access to portions of your credit profile. This type of requiry is referred to as a soft inquiry and only grants these companies access to your name and address. No other information is provided to them. These requests are not listed on your credit report and you will not be provided with any information about these companies or be notified that they accessed your profile.

Under the Fair and Accurate Credit Transaction Act (FACT), you also have access to your own credit report. You are entitled to one free credit report from each credit reporting agencies, including Equifax, Experian, and TransUnion, one time every year. Although you are granted access to your entire credit report, this type of inquiry is considered a soft inquiry and is therefore not listed on your credit report.

John Herman

Licensed Illinois Managing Broker

Call Now (847) 847-4711 For Real Estate Service.

Awards:

Awarded as top 3% of all Agents by Chicago magazine – 5 Star Award winner 4 Years straight – 2011, 2012, 2013 & 2014!!!

Give John Herman a call today. (847) 847-4711 or fill in our form below.

Trulia And Zillow Do Not Have All The Info

If you are wondering what your home is worth, heading to internet giants Trulia and Zillow may be a waste of time, since they are lacking a great deal of pertinent information as it relates to home values. 

The Chicago MLS MRED recently did not come to an agreement in regard to sharing MLS data with Trulia and Zillow…so they are missing a great deal of data from the Northwest Illinois database. 

The only information on these sites is partial and from specific agents that have chosen to syndicate their listings there.  It is estimated that 30% of the listings are missing from Zillow and Trulia that are in the Chicago MLS MRED.

For that reason, to get the best information, visit www.dealsonhomes.com where you will find all up to date information on all property in the MLS MRED.  Our website has access to far more data than what the general public or any third-party web site can provide.

While you can view the website and gain a great deal of information on your own, enlisting the help of a Realtor to decipher the fine points will also prove beneficial.

In addition, a Realtor will come in-person and look at your home, analyzing the specifics of each property and applying their expertise alongside the statistics that can be found online.

A Realtor will be able to determine what your particular home is worth after carefully comparing it with other homes that have sold.  Coming to the right price is an art…not a science…and it takes experience and a professional’s assessment to price right in today’s market.  Every Realtor wants to get you the best price possible for your home.

There’s no harm in taking a quick look at all resources to get a general idea of the market, but when it comes to specific value, a Realtor is your market expert.

Visit dealsonhomes.com for your first step in determining home value.

John Herman

Licensed Illinois Managing Broker

Call Now (847) 847-4711 For Real Estate Service.

Awards:

Awarded as top 3% of all Agents by Chicago magazine – 5 Star Award winner 4 Years straight – 2011, 2012, 2013 & 2014!!!

Give John Herman a call today. (847) 847-4711 or fill in our form below.

Staging Your Home To Get The Best Price When You Sell It!

As you get your home ready to put on the market to sell it, you need to stage your home in order to give the best “first impression” possible. To effectively do that, here are some quick, easy and inexpensive tips to help you. Remember that the initial impression your prospect receives when she/he approaches your home is the one which can create immediate interest or be a total turn-off to viewers. That includes the all-important curb appeal as well as the impression created upon entering the home. For more information homes for sale in south barrington il.

1. How does the house look as you approach it from the street?

Take this opportunity to remove unsightly foliage from the front yard or entry-way. Be sure that all bushes have been attractively trimmed and that any extraneous items are out of sight. Add a welcoming wreath or banner to your front door. Be sure that all window glass is free of obvious dirt or grime. A clean, welcoming entry-way and sparkling window glass are things which will go unnoticed if present, but which will be noticed immediately if they are absent!

 2. Upon entering the home, is there any obvious dirt, clutter or are there items which are obviously out of place?

A neat home sells more easily and profitably than a cluttered one does. While you are not being judged by your housecleaning, you actually are when it comes to getting a buyer’s attention and having him/her pay money for the house! Pay close attention to the impression your house gives. If there is an inordinate amount of clutter present, it will draw attention away from the house itself.

3. Fix anything that is obviously broken or leaking or in need of repair.

If a sink is dripping or if there are cracks in walls or woodwork, fix those before attempting to show the house.

4. Take the time to polish any wood surfaces which have become dull, paint any walls which are showing wear or scuff marks, and replace any cracked window glass or mirrors.

Seeing to these little touches can make a difference in the amount of money being offered, or whether an offer is made at all. For more information south barrington homes for sale.

Remember that you want to sell your beautiful home to someone  who will appreciate it for the valuable property that it is. Present it at all of the showings in the best condition you can!

John Herman

Licensed Illinois Managing Broker

Call Now (847) 847-4711 For Real Estate Service.

Awards:

Awarded as top 3% of all Agents by Chicago magazine – 5 Star Award winner 4 Years straight – 2011, 2012, 2013 & 2014!!!

Give John Herman a call today. (847) 847-4711 or fill in our form below.

How To Correct Errors or Incomplete Information on Your Credit Report

It is vital to check your credit report on a regular basis to check for its accuracy and completeness. The three leading credit reporting agencies, including Equifax, TransUnion, and Experian, are required under the law to provide you with a free personal credit report one time every year. You should check your credit report thoroughly looking for any errors, and making sure all the information is complete.

If you find any errors, or believe portions of your report are incomplete, you have the right to file a dispute with the credit reporting agency. Examples of incorrect information may includes accounts that are not under your name or incorrect balances. An example of a incomplete credit report is an account that was delinquent, but you are now current with your payments. The credit report must show that your are now current and no longer delinquent with payments.

According to the Fair Credit Report Act (FCRA), each credit reporting agency is required to perform an investigation each time a dispute is filed. The agency can under certain circumstance  dismiss the dispute if they deem it to be irrelevant or frivolous. All other disputes must be investigated within a reasonable amount of time. Through this investigation, the information that is currently on your credit report must be verified or they must delete the information. Likewise, if the investigation reveals any inaccuracies, the credit reporting agency must make the necessary corrections.

Once an appropriate change or deletion is made to your account, the credit reporting agency must send this new information out to everyone who has requested your credit report for at least the last six months. This allows each requester to be instantly notified of the correction to your credit report.

In addition, if you had a life circumstance in your life that may have affected your credit report, you can submit a brief statement to the credit reporting agencies explaining your circumstance. Some of these life circumstance could include unexpected major medical bills, loss of job, death of spouse, or active military duty. The credit reporting agencies will attached this statement to your credit report and send it with your report each time it is accessed.

John Herman

Licensed Illinois Managing Broker

Call Now (847) 847-4711 For Real Estate Service.

Awards:

Awarded as top 3% of all Agents by Chicago magazine – 5 Star Award winner 4 Years straight – 2011, 2012, 2013 & 2014!!!

Give John Herman a call today. (847) 847-4711 or fill in our form below.

How Much Weight Do Credit Reports Have for Obtaining a Mortgage

Many homebuyers incorrectly believe that they will not be able to obtain a satisfactory mortgage because their credit report has some negative items on it. The truth is that most people do not have to worry too much about their credit report score. Usually any problems within the credit report can be explained by difficult life circumstances, such as a sudden illness, death in the family, or an unexpected period of unemployment. The most important thing is that you work to restore your credit, by becoming current you all you unpaid balances. Once you have been paying faithfully for at least one year, you are likely to be a good candidate for a mortgage.  For more information inverness il homes for sale.

The first thing you need to do is request a copy of your credit report from the three major credit reporting agencies, including TransUnion, Experian, and Equifax. Take the necessary steps to make any necessary corrections to your credit report, and restore any damaging credit issues by working with the creditors. When applying for a mortgage, be prepared to explain any negative components of your credit report. Prepare a written statement, that you can provide your mortgage professional to explain any problems with your credit report.

John Herman

Licensed Illinois Managing Broker

Call Now (847) 847-4711 For Real Estate Service.

Awards:

Awarded as top 3% of all Agents by Chicago magazine – 5 Star Award winner 4 Years straight – 2011, 2012, 2013 & 2014!!!

Give John Herman a call today. (847) 847-4711 or fill in our form below.

Guide to Understanding Credit Scores

Credit scores are numeric figures used to represent the probability as to a person’s likelihood that he/she will repay a loan. This figure is determined through a statistical method that was originally designed by the Fair Isaac Company (FICO), and is why this number if referred to as your FICO score. The three main credit reporting agencies that calculated credit scores are Equifax, Experian, and TransUnion. Lenders look at the credit scores provided by these three companies as a means of accessing your ability to repay a loan. In fact, this information often helps lenders determine whether you not to approve the loan. It also helps determine how quickly the loan is process and what type of interest rate is applied to the loan.For more information inverness il homes for sale.

With this much at stake, it is important that you understand credit scores and what these scores mean to your ability to find acceptable funding. The credit report looks at several factors, including late payments, past delinquent accounts, current level of debt owed, types of current credit available, length of credit report history, and number of inquiries for your specific credit report. The credit reporting agencies use a variety of formulas and calculation to rate each person’s credit report with a score, known as a FICO score. The FICO score can run anywhere from 300 to 850 points, with 850 points being the highest score possible. 

A person applying for credit is placed into one of the following three categories based on their specific credit score.

1. An A+ rating is considered any FICO score over 680 points. If you have a credit score that is higher than 680 points, you can expect to be approved for credit and complete the entire loan process within just a few days. With a credit score in the A+ range, your loan application will probably be processed through a computerized automated underwriting system, which could take as little as just a few minutes. Even if the loan application runs through a standard underwriting process, you should have approval pretty quickly. This high level of credit rating also should offer you a lower interest rate on your mortgage.

2. A credit score that falls between 620 points and 680 points is still considered good credit and is likely to be high enough to be approved for the loan. The underwriting process, however, will take longer because they will have to take a closer look at your credit history. You may be asked to provide additional information or letters of explanation for any negative items listed on your credit report. This process is likely to take several days or possibly even several weeks to complete. The best thing you can do is to provide any information requested by the underwriter in a timely fashion. Depending on the determination of the underwriter, you may still be eligible for the lower A grade interest rates.

3. If your credit score is below 620 points, the underwriter is definitely going to take a closer look at your credit history. This process may take several days, weeks, or even months to complete. The underwriter may require additional information based on what is listing on your credit report. If you have a score below 620 points, you may not be eligible for low interest rates and some of the terms and conditions of the loan may be good as those offered to people with higher credit scores. Depending on the results of the underwriting process, you may also be directed to one of the alternative loan options, such as FNMA (Fannie Mae) or HHLMC (Freddie Mac).

John Herman

Licensed Illinois Managing Broker

Call Now (847) 847-4711 For Real Estate Service.

Awards:

Awarded as top 3% of all Agents by Chicago magazine – 5 Star Award winner 4 Years straight – 2011, 2012, 2013 & 2014!!!

Give John Herman a call today. (847) 847-4711 or fill in our form below.

Determining Market Value

Many people believe that a home value is determine through a comprehensive appraisal before a home is listed on the market. However, the reality is that an appraisal report is not typically used is the process of determining the asking price for a home on the market. Actually, an appraisal is not usually done until the buyer is required to have one done by their lending agent. The listing price for a home is almost always determined by the seller, who is looking to receive the highest sales price possible on their home, or the real estate agent, who receives a commission based on a certain percentage of the sale of the home. For more information homes for sale in south barrington il.

When a real estate agent is preparing to list a property on the market, it is important for them first to set an asking price for the home. In order to get a baseline for this asking price, the real estate agent will perform a CMA, otherwise known as a Comparative Market Analysis. Some states require the CMA to be perform by a certified or licensed appraiser, but in the majority of states allow the real estate agent to do this analysis. This analysis is done by examining the market value and sales price for similar homes in the area. The accuracy of the CMA depends on the real estates agents experience and expertise. The good news is that neither the seller nor the buyer are bound by the results of the CMA. While the agent will most likely recommend a sales price that is close to the CMA results, the seller does not have to agree. The seller can ask for a higher or lower asking price, and the agent may be bounds to follow the sellers request or risk losing a client. For more information south barrington homes for sale.

The seller may think that they are getting a great deal on a home, if they make an offer that is 10% lower than the asking price. This may be true, but without knowing the market value it is hard to tell for sure. For example, an offer that is 10% lower than the asking price it not much of a deal if the asking price is 20% higher than the actual value of the home. To make matter worse, your agent cannot tell you that the asking price is substantially higher than the market value for the home. Most states actually require the agent to submit the offer despite the market value or CMA figures. For more information south barrington real estate.

Sometimes, it is a good idea for the seller to have an appraisal done on their home prior to listing the home for sale. While this is certainly an added cost, it may be worth it in the end. An appraisal can provide the seller with valuable information about the true value of their home. This information can help the seller set an appropriate asking price. The buyer will be required to have an appraisal done if they are applying for a mortgage. The mortgage company wants to make sure the price of the mortgage is close to the actual value of the home. If the appraisal comes back substantially lower, than the buyer will not be able to purchase the home. By having an appraisal done ahead of time, you can avoid this unnecessary setback for both the buyer and the seller.

John Herman

Licensed Illinois Managing Broker

Call Now (847) 847-4711 For Real Estate Service.

Awards:

Awarded as top 3% of all Agents by Chicago magazine – 5 Star Award winner 4 Years straight – 2011, 2012, 2013 & 2014!!!

Give John Herman a call today. (847) 847-4711 or fill in our form below.